opinion

Looking Back – and Ahead

With 2007 already going into its second month, I've been reflecting on the recent past and planning for the near future. As part of this process, I've looked back at the most important factors that impacted my operation in 2006, as well as the factors likely to do so this year. Here are some of those issues. Let's see if you can identify with — and learn from — some of them:

2257 Inspections
Perhaps the news highlight of 2006 for operators in the adult entertainment industry was the commencement of 2257 inspections — the first such occurrences in the 18-year history of the statute. With a number of operators both large and small enduring a visit from the Justice Department, the specter of impending inspection has forced many operators to take the 2257 compliance situation more seriously, tightening their compliance measures and ensuring the greatest chance of successfully passing such an inspection.

For my own part, one of the measures that I undertook in this regard was to re-encode my video clips, this time with the addition of a 2257 statement and warning screen. Many of the clips that I commonly see posted far and wide, including on my own TGP/MGP, still do not have such notices, illustrating that the adult industry still has far to go in order to become fully compliant. While some may feel that simply having a link or statement on the page that your videos are linked from is adequate, the reality is that once these clips are "out there," they will be shared far and wide, making an embedded statement not only smart but a necessary compliance measure. As an added benefit, while re-encoding, I did so at a higher quality level to better take advantage of the rapid increases in broadband penetration, which according to my stats, covers more than 85 percent of my site's visitors.

Increased Competition
This past year also marked an increase in competition in what is already a fiercely competitive market. But unlike years past, these increases were not so much manifested through continual program and website launches but through the refinement of existing programs. Indeed, much of 2005 seemed marked by a constant flurry of "new site" announcements, which is contrasted by 2006's flurry of "re-launch" announcements. Perhaps it's just the nature of the business — where casting a wide net has turned into casting a smart net, as the webmasters who focused on speed-to-market have gone back to revisit the "cut corners" and incomplete, un-optimized approaches they tried in an attempt to gain market share.

For my own part, and that of other small operators, the outward evidence of the process is fewer new domain names — perhaps lapses of previous names — and an overall campaign of focusing on the polishing of the best-performing properties and shelving of incomplete or under-performing sites and services. This is something that I touch on repeatedly in my blog at XBIZ — there are only so many hours in the day and focusing on "bigger, better, faster, more" isn't a strategy that lone operators can keep up indefinitely; and now, 10 years down the road, many are feeling the pressure. Some webmasters have quit, most have scaled back, and the smart have invested in what's proven to work or walked away from projects that haven't. As for speculation, I believe that this process will continue throughout 2007 and beyond.

Coping With COPA
As if 2257 inspections and everything else weren't enough to deal with, at the time of this writing, COPA, the Child Online Protection Act, is being revisited. It amazes me that according to a recent XBIZ poll, 37 percent of you are either unaware of or simply not following this vital development.

Rather than rehashing what already has been quite extensively covered by the adult press, I'll provide the short course: This legislation has been working its way through the court system since 1998 and, if upheld, may put an end to the domestic "free porn" industry — no more free sites, TGPs, MGPs, etc. Why? Because failing to require a credit card or other age-verified access code will result in a penalty of $50,000 and six months in prison per infraction.

Sorry, kids, nobody's making enough money on free porn to justify that kind of penalty, and as such, the real business people operating in America will quickly pull the plug on these types of operations — or dramatically change the face of them.

For example, surfers who are used to visiting any of the thousands of TGPs and MGPs for their daily free porn fixes may find that these outlets now require a payment for access, however nominal. Those who balk at the idea fail to consider the profit potential of paysites offering hundreds of thousands of FHGs, containing millions of images and countless video clips.

Of course, overseas operators who could care less about the actions of U.S. lawmakers will quickly fill the void, making it a case of "business as usual" for the criminals while eliminating any last chance at control over this worsening situation.

With a final ruling on COPA slated for the early part of 2007, I fully expect the outcome of this ongoing saga to set the tone for the entire year — and beyond. More of our ranks will deem it no longer worthwhile to exchange the increasingly high level of risk for the decreasingly profitable enterprises forming the status quo.

But there's hope on the horizon with the continued broadening of the domestic mobile market, IPTV and other technologies well suited to the distribution of adult entertainment. Let's just hope that enough of us can hang on to realize the profits of this brighter tomorrow.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

WIA Profile: Lexi Morin

Lexi Morin’s journey into the adult industry began with a Craigslist ad and a leap of faith. In 2011, fresh-faced and ambitious, she was scrolling through job ads on Craigslist when she stumbled upon a listing for an assistant makeup artist.

Women In Adult ·
profile

Still Rocking: The Hun Celebrates 30 Years in the Game

In the ever-changing landscape of adult entertainment, The Hun’s Yellow Pages stands out for its endurance. As one of the internet’s original fixtures, literally nearly as old as the web itself, The Hun has functioned as a living archive for online adult content, quietly maintaining its relevance with an interface that feels more nostalgic than flashy.

Jackie Backman ·
opinion

Digital Desires: AI's Emerging Role in Adult Entertainment

The adult industry has always been ahead of the curve when it comes to embracing new technology. From the early days of dial-up internet and grainy video clips to today’s polished social media platforms and streaming services, our industry has never been afraid to innovate. But now, artificial intelligence (AI) is shaking things up in ways that are exciting but also daunting.

Steve Lightspeed ·
opinion

More Than Money: Why Donating Time Matters for Nonprofits

The adult industry faces constant legal battles, societal stigma and workplace challenges. Fortunately, a number of nonprofit organizations work tirelessly to protect the rights and well-being of adult performers, producers and industry workers. When folks in the industry think about supporting these groups, donating money is naturally the first solution that comes to mind.

Corey D. Silverstein ·
opinion

Consent Guardrails: How to Protect Your Content Platform

The adult industry takes a strong and definite stance against the creation or publication of nonconsensual materials. Adult industry creators, producers, processors, banks and hosts all share a vested interest in ensuring that the recording and publication of sexually explicit content is supported by informed consent.

Lawrence G. Walters ·
opinion

Payment Systems: Facilitator vs. Gateway Explained

Understanding and selecting the right payment platform can be confusing for anyone. Recently, Segpay launched its payment gateway. Since then, we’ve received numerous questions about the difference between a payment facilitator and a payment gateway. Most merchants want to know which type of platform best meets their business needs.

Cathy Beardsley ·
opinion

Reinventing Intimacy: A Look at AI's Implications for Adult Platforms

The adult industry has long revolved around delivering pleasure and entertainment, but now it’s moving into new territory: intimacy, connection and emotional fulfillment. And AI companions are at the forefront of that shift.

Daniel Keating ·
profile

WIA: Sara Edwards on Evolving Clip Culture and Creator Empowerment

Though she works behind the scenes, Sara Edwards has had a front-row seat to the evolution of adult content creation. Having been immersed in the sector since 1995, she has a unique perspective on the industry.

Jackie Backman ·
profile

Segpay Marks 20 Years of High-Risk Triumphs

Payment processors are behind-the-scenes players in the world of ecommerce, yet their role is critical. Ensuring secure, seamless transactions while navigating a rapidly changing regulatory landscape requires both technological expertise and business acumen.

Jackie Backman ·
opinion

The SCREEN Test: How to Prepare for Federal Age Verification

For those who are counting, there are now 20 enacted state laws in the United States requiring age verification for viewing online adult content, plus numerous proposed laws in the works. This ongoing barrage has been exhausting for many in the adult industry — and it may be about to escalate in the form of a potential new AV law, this time at the federal level.

Corey D. Silverstein ·
Show More