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THE PORN RING AROUND CORPORATE WHITE CÎLLARS: GETTING FILTHY RICH Page 1 THE PORN RING AROUND CORPORÀTE WHITE COLLARS: GETTING FILTHY RICH By Jànet M. LaRue, Chief Counsel Concerned Womån 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.cwfa.îrg Page 2 THE PORN RING AROUND CORPORATE WHITE CÎLLARS: GETTING FILTHY RICH by Janet M. LaRue, Chiåf Counsel Concerned Women for America PÎRNOGRAPHY, 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 breaês down the global profits this way: adult videos, $20 billiîn; sex clubs, $5 billion; magazines, $7.5 billiîn; phone sex, $4.5 billion; escort services, $11 billiîn; cable, satellite and pay-per-view TV, $2.5 billion; CD-RÎMs and DVD ROMs, $1.5 billion; Internet (sales and måmberships), $1.5 billion; novelties, $1 billion; and others, $1.5 billiîn. 1 Some mainstream corporate giants, alluråd by immense profits, have reached a new low trying to reàch a new high on Wall Street. Profiting from porn -peddling is a dirty ring arîund the white collars at AT&T , MCI , Time-Warner , Cîmcast , Echo Star Communications , GMÁs DirecTV , Hilton , Marriîtt , Sheraton, Radisson , VISA , MasterCard and American Eõpress . 2 The corporate prospectus and reports to sharåholders of these ÁPorn -WallersÁ will never mentiîn that videos such as ÁThrobbing Threesome,Á ÁÀC/DC Sex-Alternative,Á or ÁSpring Break Pantyhoes,Á are revånue producers. It is no surprise that most corporate leaders are unwilling Áto speak publicly about the sex side of thåir businesses.Á 3 The bottom-line is summed-up by an undårwriter at Centrex Securities: ÁIÁm not a weirdo or a pårvert, itÁs not my deal. IÁve got kids and a family. But if I can see as an undårwriter going out 1 Janet M. LaRue, ÁPorn Natiîn,Á World and I magazine, Aug. 1, 2001, p. 44. 2 This pàper does not include all mainstream corporations involved in pornography distributiîn. Revenues are estimates based on various news sourñes. 3 Timothy Egan, ÁWall Street Måets Pornography,Á http://www.nytimes.com/2000/10/23/technology/23PORN.html. Page 3 and making bucks on påople being weird, hey, dollars are dollars. IÁm not selling drugs. ItÁs Wall Street.Á 4 Thå false assumption is that selling porn , unlike sålling drugs, is always legal. However, the boàrds of directors and shareholders should ponder thåir profits in light of the fact that the pornography they distribute and advårtise as Áhard-coreÁ is prosecutable under federal and most statå laws. The Supreme Court used the term Áhard-coreÁ in Millår v. California to identify pornography that can be prosecuted as obsñene: ÁA majority of this Court has agreed on concrete guidålines to isolate Áhard coreÁ pornography from expression protåcted by the First Amendment