DVD sales are in free fall. Audiences are flocking to pornographic knockoffs of YouTube, especially a secretive site called YouPorn. And the amateurs are taking over. What's happening to the adult-entertainment industry is exactly what's happening to its Hollywood counterpart--only worse.
On Friday, May 18, Steve Hirsch, founder of Vivid Entertainment Group, the world's largest producer of adult videos, was expecting a mysterious visitor. But Stephen Paul Jones was late. When Jones, an unknown figure in the pornography world, finally arrived in the all-white reception area of Vivid's Los Angeles offices at 2 p.m., he was apologetic. His private plane had broken down, he explained, and he was forced to fly commercial. Hirsch, dressed in a T-shirt and jeans, found that excuse a little slick. But he was eager to speak with Jones, so he let it slide and introduced him to two Vivid colleagues. When the four men sat down in the company's conference room, Jones got right to the point: He wanted Vivid to buy his website, YouPorn.com.