According to www.spicedupaffairs.com poll in 2012 revealed that the porn industry is making about $5 billion yearly.
Porn industry revenue estimates differ widely. Some don’t believe it’s $5 billion, while others believe that it’s more than that.
Alec Helmy, founder and publisher of XBIZ, said that because porn businesses are private, no one can accurately estimate how much billions the industry is making. Others even say that it makes up to $97 billion.
Yes, you are paying Netflix for a monthly basis, yet their revenue could not contend with that of the porn industry. How is this even possible?
What does the XBIZ poll show about money-making in the porn industry?
XBIZ published in their magazine the high and low estimates ($6 billion and $15 billion) of the annual revenue in the porn industry. Comparing it to other entertainment giants in the current pop culture, porn is economically no lightweight.
Despite the frequency of people using and viewing porn, its actual economic gains persist to be hidden. Porn piracy and private companies are only a few of the reasons why it is difficult to accurately estimate porn profits.
Porn has a low profile in contrast to other types of entertainment. Because there is a huge taboo veiling the adult entertainment industry, a pornography company earns a huge amount of money by means of monopolistic approach.
Yes, porn monopoly while hiding in plain sight. This huge monopoly is consuming astounding amounts of bandwidth. With the daily visitors these porn sites have, they can make money not through subscriptions, but by ad revenues posted on site.
Apparently, even non-sex related companies gain profit from the porn industry, rather indirectly by piping in some smut to their clients. Companies like hotel chains (e.g. Marriott), satellite TV providers (e.g. DirectTV), and phone carriers (e.g. AT&T) have gained millions off this industry.
AT&T official even commented on the New York Times that porn is the “crazy aunt in the attic”. Everybody perfectly knows it’s there, but you keep your mouth shut about it.
Porn and modern technology
Thanks to modern technology, it is now easier for everyone to surf for porn on the internet from the comfort of their own homes. The Internet has given the mass a means of indulging in their taboo pleasures.
This pushed porn companies to adopt technological features such as online credit-card transactions, online video streaming and instant messaging. Now, the porn industry is considering virtual reality technologies to boost the audience’s porn experience.
Like any entertainment industry, piracy chops off porn revenues. Consequently, porn companies design strategies to address this. Licensing, online and offline educational crash courses, online camming, event hosting, backpage alternatives, and commerce are few of the strategies done to combat piracy.
Porn and lawmakers
There is no concrete consensus between porn’s rules and lawmakers unless the latter would risk losing profit in its tax revenues from porn.
In 2012, Los Angeles required male porn stars to wear condoms in fear of HIV transmission. This caused a 95% drop in porn companies requesting for permits in the next four years. In Las Vegas, however, where condoms were not compulsory, permit requests increased to 50% in one year (2012-2013).
In 2016, lawmakers in California proposed the use of condoms among porn actors on set. The state secretary of California commented that this would reduce state and local tax revenues annually.
The regulation was never passed.
What impact does the porn industry have to the US economy?
It’s huge. It certainly is. It is an important US economic contender.
The amount of money it makes, the number of companies that indirectly profit off it, and its influence on lawmakers prove its powerful strength in the US economy. And, with the advancement of technology, porn companies will surely find ways to safeguard their explicit gains.