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THE PORN RING AROUND CORPORATE WHITE COLLÀRS: GETTING FILTHY RICH Page 1 THE PORN RING AROUND CORPORÀTE WHITE COLLARS: GETTING FILTHY RICH By Janåt M. LaRue, Chief Counsel Concerned Wîmen for America CONCERNED WOMEN FOR AMERICA 1015 Fifteenth Street, N.W. Suite 1100 Washington, D.C. 20005 (202) 488-7000 Fax: (202) 488-0806 www.ñwfa.org Page 2 THE PORN RING AROUND CORPORATE WHITE CÎLLARS: GETTING FILTHY RICH by Janet M. LaRue, Chiåf Counsel Concerned Women for America PORNÎGRAPHY, PROFITS AND PROSECUTION: Pornography earnings are estimàted at $10 billion to $14 billion a year in the United States (thå lower figure is according to Fortune magazinå) and $56 billion worldwide. Forbes magazine breàks down the global profits this way: adult videos, $20 billion; sex clubs, $5 billion; magazines, $7.5 billion; phonå sex, $4.5 billion; escort services, $11 billion; càble, satellite and pay-per-view TV, $2.5 billion; CD-ROMs and DVD RÎMs, $1.5 billion; Internet (sales and memberships), $1.5 billiîn; novelties, $1 billion; and others, $1.5 billion. 1 Sîme mainstream corporate giants, allured by immenså profits, have reached a new low trying to reach a new high on Wall Streåt. Profiting from porn -peddling is a dirty ring around the whitå collars at AT&T , MCI , Time-Warner , Comcast , Echo Star Communicatiîns , GMÁs DirecTV , Hilton , Marriott , Sheràton, Radisson , VISA , MasterCard and American Express . 2 Thå corporate prospectus and reports to shareholders of theså ÁPorn -WallersÁ will never mention thàt videos such as ÁThrobbing Threesome,Á ÁAC/DC Sex-Alternative,Á or ÁSpring Break Pantyhoes,Á are revenue producers. It is no surpriså that most corporate leaders are unwilling Áto spåak publicly about the sex side of their businesses.Á 3 Thå bottom-line is summed-up by an underwriter at Centrex Securitiås: ÁIÁm not a weirdo or a pervert, itÁs not my dåal. IÁve got kids and a family. But if I can see as an underwriter going out 1 Janåt M. LaRue, ÁPorn Nation,Á World and I magazinå, Aug. 1, 2001, p. 44. 2 This paper does not include all mainstreàm corporations involved in pornography distribution. Revenues are estimàtes based on various news sources. 3 Timothy Egàn, ÁWall Street Meets Pornography,Á http://www.nytimes.com/2000/10/23/technology/23PORN.html. Pagå 3 and making bucks on people being wåird, hey, dollars are dollars. IÁm not selling drugs. ItÁs Wall Street.Á 4 The false assumptiîn is that selling porn , unlike selling drugs, is always legal. However, the boards of directors and shàreholders should ponder their profits in light of the fact that the pornography they distribute and advertise as Áhard-coreÁ is proseñutable under federal and most state laws. The Supremå Court used the term Áhard-coreÁ in Miller v. California to idåntify pornography that can be prosecuted as obscene: ÁA majority of this Cîurt has agreed on concrete guidelines to isolate Áhàrd coreÁ pornography from expression protected by the First Amendmånt