There's alot of drama going on in the adult industry particularly within the gonzo ranks. There is a shift in the way companies will do business, a shift in the mindset of qualified directors out there and a shift in the way monies are allocated between the haves and have-nots. Porn, like nature, is an evolving game where "Survival of the Fittest" will always win out. It is my opinion that in the next several years, key trends will occur which will change the nature of the business as we see it.

The adult video/DVD market will be dominated by three groups of adult entertainment. One will be what we call "Adult Entertainment". We're talking Vivid and Hustler and the like which will be rich with high end stores, cable deals, satellite services.

The second group will be dominated by the "Hardcore Porn" group. We're talking Evil Angel, Anabolic, Red Light who'll generate the bulk of their wealth by going directly to the consumer.

These two groups will clearly decimate the profitablity of everyone in-between as you will see middle-of-the-road companies going bankrupt or eaten alive. The middle group will never be able to compete against both these groups. New companies will come and go but you must have the financial backing as well as consumer loyalty to stay alive in this dog-eat-dog world. It's all about quality. It's nothing personal. It's just business.

The third group will be dominated by the Internet boys. They have already annihilated the magazine producers. It is this core group which is still, in relative terms, in it's infancy with the most growth potential. But even in this arena, there'll be alot of losers as I'm sure some of you company owners can understand and have felt.

The best directors in the business will surely demand a stake in the videos they direct. This only qualifies to the best of the best. All the hacks and stumbling losers out in porn valley need not apply. This has been the key reason for the success of the Evil Empire and Red Light District. John Stagliano said it best when he wrote:

"Evil Angel, or "The Evil Empire" is a company owned by me, John Stagliano, that is organized in a completely different way than any other video porno company. I sell my videos, and I also sell the videos of several other directors. We are different in that I do not own the videos of these other directors. I only sell their videos and keep a percentage of the gross sales as a fee for my services. I started this arrangement because of my experience selling videos to other porno companies. They would buy my videos and own them themselves. I found that it was very difficult to build my reputation with the public this way, and also, I did not get any more money if I did a video that sold exceptionally well.

At Evil Angel I wanted to create a situation where the directors could be rewarded for the hard work they put into creating their product. Here the directors make more money if their videos sell more. This is a great incentive for them to find new and better ways to make videos. All indications are that this system works very well. The tapes and DVD's that we make are the best-selling in the business. Each one of our directors is unique in style and content, but similar in their commitment to create the best product possible."

The only problem is that there is only a handful of directors who can demand ownership. Some are good behind the camera, some only in front of the camera, however it's all about sales that matters. Most directors in Porn are such solid pieces of waste material that any attempts to own their own products will result in severe financial setbacks.

It's funny because I've known people at my alma mater, UCLA Film School, who I know can blow away most of the porners out here in the Valley. As they strike out to become bartenders and waiters, it makes me wonder how they'd fare in the adult arena where blowing your entire budget to buy a car or shooting an entire movie using the same dingy apartment and the same male talent is commonplace a day before the due date.

This is where a past history is pivotal. In the adult world, people have long memories. If you are a director/performer with a history of getting fired from company to company, a history of ripping off companies with substandard product, a history of duping companies with phony resumes, all this will come and haunt you. If you're a hack, you will be exposed. It is a small community out there where everybody knows you or can find out about you in a heartbeat. You may be able to sell yourself to a start-up company as the "greatest gonzo director" known to man; however, when the chickens come home to roost, you will be exposed.

That's the funniest thing I've discovered about Porn Valley. Most motherfuckers don't think for the future. They don't think about how to build up their names. They don't think about shit except for the present. When they receive a $15,000 budget, they think about every nitpicking way to use the budget to scam $10,000 out of it and bring out substandard product. I have story after story of all these weasel directors who have done this. And maybe it's time for me to print these stories for the public to see before some of these idiot directors pitch themselves as "Better than Jules Jordan", "Better than Mike John", "Hairier than Joel Mensch", when they still don't know how to white balance a camera or cater for a production event.

This is because it is nearly impossible to flunk out of the Porn Industry. There is always some cheap, ragtag outfit who'll hire you and give you just enough money to buy crack. It's time to get new people into the business, to inject new life. It makes me sick seeing the same crackhead conmen over and over again popping up from company to company. I've only been in the industry 20 months and have seen this phenomenon over and over again.

But the world is changing, the business is changing. And to keep up with the demands of the consumer, the adult industry is going to have to evolve to the changing needs of a dynamic marketplace.

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