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K.C. Neel
The movie pay-per-view business may have a long way to go before it realizes its full potential, but the adult movie sub-sector is growing by leaps and bounds.
Paul Kagan Associates estimates that PPV movie revenues total $1 billion annually. Standard & Poor's estimates the adult PPV movie industry took in $349 million in 1999 and predicts the sector will generate $500 million in 2001.
It appears that the more explicit the product, the better it sells. According to the Washington Post, DirecTV's 8 million customers spent more than $150 million on just the Hot Network's movies in the past year. In markets where Hot and the softer-core Playboy TV are available, the more explicit channel outsells Playboy two-to-one.
Cable and dish operators have always sought to add adult PPV programming to their lineups. A proven revenue generator that offers generous splits, adult PPV's Waterloo is that it is difficult to promote.
AT&T took a lot of flak earlier this year after it announced it was adding the Hot Network to its lineups after the Supreme Court ruled that limiting adult programs to overnight hours violated a system's First Amendment rights.
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