Big Data Download

Web-based Challengers Assault Porn Industry

Big Data Download

The business of pornography rakes in billions of dollars a year in the United States, but revenue is wilting as free sites and do-it-yourselfers flood the Internet with new options, according to university research.

"Companies have had to be fairly creative in terms of how they continue to generate revenue, and some sites are better than others at handling issues of privacy and…the consumer desire to get these videos for free," said Kassia Wosick, assistant professor of sociology at New Mexico State University.

According to Wosick's estimates, annual revenue from pornography is somewhere between $10 billion and $12 billion in the United States, down from more than $13 billion in 2005. Globally, pornography is a $97 billion industry, Wosick said.

RELATED: New Technologies Make Waves in Home Entertainment

And the items that porn watchers are spending money on are changing, Wosick said.

"What we're seeing is there's still revenue that's generated from DVD sales and rentals, but Internet porn is on the increase," Wosick said. "We're also seeing an increase in terms of adult novelties. And so whereas before, the majority of the industry's revenue came from videos and film, what we're seeing is there [is] more revenue that's coming from adult toys, even exotic dance."

RELATED: Investment Opportunities Grow in Marijuana Business

About 12 percent of all websites are pornographic, according to a report on Salon.com. About 4 percent of highly-trafficked websites are pornographic, Wosick said. Amateur porn and DIY porn also challenge studios that shoot more "traditional" pornography, according to Wosick.

"So many of these companies really haven't quite grasped a way of...handling this." Wosick said.

A new law requiring condom use and health permits for pornography could also hurt the industry, according to a report in the Huffington Post.

-- Comments, Questions, Suggestions? Tweet Us @BigDataDownload

Rates

View Comments (6)