Porn Production Company

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Porn Production Company
Porn's dirtiest secret: What everyone gets paid
Published Wed, Jan 20 2016 7:35 AM EST Updated Thu, Jan 21 2016 5:33 PM EST
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There's a well-worn porn cliche about the college student-turned-actress who decided to have sex in front of a camera in order to pay off her student loans. Like many cliches, it's rarely true — but it's worth wondering: How big are paychecks in the porn business, anyway?
Money is a topic that's shrouded in mystery in the adult entertainment world. While it's widely presumed to be a multibillion dollar industry, there's no real firm accounting to back that up. Companies regularly inflate their numbers when speaking publicly and may deflate them at opportune times as well. The same is true of performers.
The median household income for the United States was $53,657 in 2014 (the most recent data available), according to a Census Bureau survey. While that report breaks down average salaries among several careers, there is no data about adult performers.
So to determine who makes what, CNBC spoke with a number of individuals who work in all aspects of the adult world to get a sense of what sort of money trades hands. While there's no way to say with absolute certainty that the figures are correct, they were supported by enough people to at least seem roughly right.
Women are, of course, the main attraction in mainstream porn — and, as you might expect, the amounts paid to actresses span a wide range. A superstar performer — one who has name recognition that extends beyond adult entertainment — earns considerably more than a newcomer or someone who is well-known only among porn enthusiasts.
The performer's representative/agent is also important. There are a number of top agencies, such as LA Direct and Spiegler, whose actresses (again, excluding the top stars) earn what could be called the industry average. But some naive or desperate performers will associate themselves with fly-by-night individuals or agencies, who ask a much lower rate, often in hopes of earning a quick buck.
The determining factor is the sex act performed and whether the actress has done that act on camera before.
"When the girls first get into the business and they're new, I think they can command additional money for different sex acts," said Steven Hirsch, owner of Vivid, one of the biggest adult entertainment studios. "Initially they make more money, then it depends on how popular they become."
Here's how things break down. For a "traditional" sex scene between a man and a woman, the average actress' compensation is typically between $800 and $1,000, depending on the studio's budget. Top-tier performers can earn as much as $1,500, occasionally $2,000, while newcomers with bad representation might earn as little as $300.
More extreme acts, as you might expect, command higher rates. The most extreme — unsuitable for describing in polite conversation — can go for $1,800 to $2,500.
Men might be a critical part of porn films, but this is one industry where the balance of pay certainly leans toward women.
With men, there's no pay differential depending on the sex act. Generally, male performers receive a fixed amount per scene or day, depending on how the shoot was booked.
And while there are a few top tier actors, such as Manuel Ferrara, who command top dollar, most earn considerably less.
In general, males average $500-$600 per scene or day. Better known male performers can earn $700-$900; superstars up to $1,500.
It takes more than performers on screen to make an adult film, of course. While the production values typically aren't on the same level as a Hollywood film and the writing is generally skipped via the fast forward button, they're still roles that need to be filled.
One difference between an adult film and a more mainstream one, aside from the sex, is that directors are a lot more hands-on when it comes to the filmmaking process, sometimes securing locations, ensuring lighting is correct, picking up the food for the craft services table and sometimes even acting as the film's cameraperson.
In general, a director of a porn film — an actual film, rather than a short — will earn $1,000-$1,500 per day. In extreme cases, when he or she is required to do dramatically more than direct, that can go as high as $3,000, though few studios will pay that amount.
Writers earn considerably less, pocketing $250-$400 per day. Shoots for most productions typically last two to four days. Tentpole porn films can take four to eight days.
Camerapersons, when the director's not filling that role, can earn $500-$700 per day; those who own their own camera, generally a Canon 5D Mark III, get the higher end.
Sound technicians can get $300 and $400 per day, while production assistants pick up $100 to $250.
Virtually all film shoots include still photograph sessions, which are either sold separately or used to market the film online. Those photographers earn $500 per day.
And, of course, every actor and actress needs their makeup done just right. Makeup artists can earn $500 for working a full day on set, but many prefer to do what's known as a "come and go." That brings them to a set for a shorter period, where they charge $100 to $150 per person, then are free to move on to other work.
While films and scenes from them are the most visible part of the industry, smart performers don't limit their revenue streams to just that part of the business. Feature dancing and product endorsements, among other things, can be ancillary income streams, which can equal or even exceed the amount made doing shoots.
Feature dancing can be especially lucrative if you've got a large fan base. Performers earn an appearance fee, which varies widely, as well as any tips from patrons. And many performers bring along merchandise to sell to fans. One actress/dancer said she regularly earns $7,000 to $10,000 per feature-dancing appearance, which can last two days.
Affiliating with a line of adult novelties can also be lucrative. Generally, there's a base payout for that, but some companies offer a percentage of each product sale. The more items that bear an actresses' name, body and face on the packaging or the product, the bigger the check.
So how much does a porn star make? Six-figure incomes are likely common for popular stars, though that's far from an industry average. Ultimately, assuming they have a decent agent, a performer's salary comes down to three things — two of which are in their control: Their work ethic and frequency, their entrepreneurial spirit and their popularity.
There's also a fourth intangible: their longevity.
Porn is an industry that regularly chews up and spits out performers. Many quit after just one scene or after a few months. Some stick around for a few years, but then disappear. But a select few have chosen to make this a true career — and as in the mainstream world, those are the ones who tend to pocket the most.
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The Porn Business Isn't Anything Like You Think It Is
The undying trope is that porn drives the adoption of new technology, makes ridiculous amounts of money, and dominates the Internet. But it's not true.
This Is What the Porn Industry Looks Like
'It's Chaos. It's Fragmented. It's Broken. It's Blocked'
Cade Metz is a former WIRED senior staff writer covering Google, Facebook, artificial intelligence, bitcoin, data centers, computer chips, programming languages, and other ways the world is changing.
WIRED is where tomorrow is realized. It is the essential source of information and ideas that make sense of a world in constant transformation. The WIRED conversation illuminates how technology is changing every aspect of our lives—from culture to business, science to design. The breakthroughs and innovations that we uncover lead to new ways of thinking, new connections, and new industries.
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Midway through the second season of Silicon Valley , the HBO series that so skillfully spoofs the Bay Area tech scene, the plot turns to porn.
Inside the offices of Pied Piper, the fictional startup at the heart of the show, a shaggy-haired coder hacks into a rival company. The rival, he discovers, has landed a $15 million contract with a porn outfit called Intersite, also fictional, agreeing to build software that will compress Intersite's videos and send them across the 'net. Pied Piper's CEO, Richard Hendricks, is bemused. "I don't understand," he says. "How does Intersite have all this money?"
"It's pornography," says the guy with the highfalutin facial hair.
"Adult content has driven more important tech adoption than anything," says another colleague. "The first fiction ever published on a printing press was an erotic tale. And from there: super 8 film, Polaroid, home video, digital, video on demand—"
"—credit card verification systems, Snapchat—" adds a third.
"Pornography accounts for 37 percent of all Internet traffic."
"Thirty-eight when I'm on it," says the guy with the highfalutin facial hair.
In many ways, the exchange is typical of the show . It's good for multiple laughs, particularly if you're wise to the shamelessly eccentric ways of the modern tech world. Punchline aside, the big laugh is that nod to Snapchat, a mainstream private-messaging-and-video-chat app whose status as a porn service is, shall we say, unofficial. But Pied Piper's porn encounter is a rare case where Silicon Valley gets things wrong. Typically, the parody rings so very true. In this case, it doesn't.
'The thing about the adult industry today is that ... it's a very low-margin business.'
In the popular imagination, the eternal trope is that the porn industry drives the adoption of new technology; that it accounts for some astronomically large portion of all Internet traffic; and, yes, that it generates equally enormous sums of money for all the faceless people who run its operations. We picture these people as sleazy Southern Californians wearing pinkie rings and polyester. Or, if we've come to realize that the pinkie-ring caricature makes absolutely no sense in the age of the Internet, we see them as ruthlessly clever businesspeople with a sixth sense for where the big money lies. That's the stereotype Silicon Valley embraces. Later in the episode, when Hendricks turns up at an adult industry conference, we encounter an army of porn execs dressed like bankers.
Some of it may have been true in years past. But no longer. A colleague of mine calls this a meso-idea , an idea that has ceased to be true but that people continue to repeat, ad infinitum, as if it still was. With the rise of mobile devices and platforms from the likes of Apple and Google, not to mention the proliferation of free videos on YouTube-like porn sites, the adult industry is in a bind. Money is hard to come by, and as the industry struggles to find new revenue streams, it's facing extra competition from mainstream social media. Its very identity is being stolen as the world evolves both technologically and culturally.
It's a world where Playboy is going PG-13 —in print and online—because it can't compete with the Internet at large. Mobile and social media platforms have pulled us away from the openness of the worldwide web and into walled gardens, squeezing the avenues of distribution for porn, co-opting its audience (at least in part), and forcing outfits like Playboy to become more "mainstream." The larger porn industry is headed in the same direction, careening away from the stereotypes held by journalists and pundits and pop culture like Silicon Valley . "That's obviously a fictional adult company—because I don't know a single one that would pay $15 million for compression software," quips Chris O'Connell, who helps run a real adult company called Mikandi. "The thing about the adult industry today is that ... it's a very low-margin business."
Mikandi operates the world's largest porn app store. When I talked to the publisher of XBIZ , the leading adult business news organization, he called it "the future of the porn industry." And in some ways, it is. But that future isn't what the popular imagination expects.
O'Connell, Mikandi's 29-year-old chief architect, lives in Tucson, Arizona, and he runs the company with Jesse Adams and Jen McEwen, the young Seattle couple who launched the store back in 2009, providing an alternative to the Android and iPhone app stores that forbid adult content. Apple also bars Mikandi itself from iPhones, and the only way to use it on an Android phone is to download it manually through a web browser—the same browser that serves up a seemingly endless stream of free pornography.
That said, Mikandi aims to offer stuff you can't get elsewhere. A smartphone app does video and animation much better than a browser, and the store serves up carefully crafted stuff like hand-drawn hentai —aka Japanese porn animation . Over the last three years, the word "hentai" accounted for more Mikandi searches than the word "free." The premium apps carry a price tag, and the company takes a cut whenever anyone buys one.
But the audience is relatively small. About 2.5 million people are registered with the Mikandi store, with about 345,000 visiting every three months. All of which means: O'Connell, Adams, and McEwen pull in yearly salaries somewhere in the low six figures, after paying "competitive" wages to a handful of coders in Seattle and Eastern Europe. "None of us own a yacht," O'Connell says. Or as McEwen puts it: "You can't understand the obstacles that are in our way."
She doesn’t mean obstacles of morality or law. Yes, many people frown on porn, calling it exploitative and debasing. But many others just see it as a part of life—a big part of life. There's an enormous audience for porn, and whatever it signifies, whatever emotions it stirs in critics, this audience isn’t going away. McEwen means economic obstacles, business obstacles, technical obstacles.
It wasn't always this way. In the early aughts, online porn was ridiculously lucrative. Colin Rowntree, a porn producer, director, distributor, and member of the Adult Video News Hall of Fame , was a just mid-level player, and in those days, he and his wife, Angie, earned millions each year. But at the end of the decade, just about everything changed. Apple introduced the iPhone, which moved so much of our digital lives onto mobile devices while officially banning pornography in its App Store. Google pushed porn to the fringes of its search engine . And as The Economist and Buzzfeed have described, an army of "Tube sites"—essentially Youtube knockoffs with names like Youporn and Pornhub—began offering a smorgasbord of online porn for free, much of it pirated, making it far more difficult for pornographers and distributors to make money. All this happened as the worldwide economy tanked.
"It was the perfect storm," says Rowntree. "People no longer wanted to pull out their credit cards. But they said: 'Oh, there's this thing called YouPorn. It may be grained and shitty, but at least I can masturbate.'"
The adult industry sought new avenues, including porn app stores, porn search engines like Rowntree's Boodigo , and other workarounds, as well as "live cams," where people pay to watch and interact with an adult performer in real time. That's pretty much what strippers and porn stars have offered over Snapchat. But this too has its limits. One of the kings of live cams, Kink.com, the company the operates out of a castle-like former armory in San Francisco's Mission District , has also seen revenues decline in recent years . Snapchat now works to shut down accounts dedicated to pornography.
Certainly, some people will pay for a better experience than they can get on a Tube site. Todd Glider is the CEO of CMP Group, whose video service, Badoink, has found another loophole in the smartphone market—-it offers a video streaming tool that's ostensibly content-neutral but can be used for porn—and he says the company pulls in $55 million a year in revenues. But the best content is often pirated and offered for free, much like Hollywood blockbusters and best-selling albums. The difference is that Hollywood has the political and economic power to suppress pirated content—and push official content through mainstream services. The porn biz can issue DMCA takedown notices and threaten legal action like anyone else, but it doesn't have the clout to enforce the notices on a wide scale—or make anyone care that it's being ripped off.
"The adult industry isn't able to enforce its intellectual property protection," says Kate Darling, a researcher at the MIT Media Lab who explored the economics of the adult industry in the 2013 study What Drives IP without IP? A Study of the Online Adult Entertainment Industry . "It's not that much different from others industries—except that policy makers don't really look at the adult industry and aren't interested in helping the adult industry."
Meanwhile, with the rise of Netflix and YouTube and so many other mainstream video services—including Facebook and Twitter—porn is no longer the dominant form of online video. It's hard to tell how much porn streams across the 'net—no reliable operation tracks this, including Sandvine, the primary source for internet traffic research —but it doesn't account for 37 percent of all traffic. It's not even close. Mikandi declines to discuss its traffic. But a better barometer is the Pornhub Network, which now spans several of the major Tube sites. Pornhub says its network receives about 100 million visits a day, and at least on part of the network, the average visit lasts about nine minutes. If you extrapolate, that's somewhere in the range of 450 million hours of viewing a month. Meanwhile, Netflix serves 60 million subscribers, and these subscribers watch over 3.3 billion hours of programming a month ( 10 billion a quarter ). Youtube claims hundreds of millions of hours of viewing daily .
"What happens is: someone comes up with a stat [about porn traffic] and everyone repeats it, but it's not necessarily true," Pornhub
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