Valley adult industry firms focus on diversification.

WHEN Paris Hilton is cheered rather than castigated, you know that it is only a matter of time. From the once conservative Adelphia Communication Corp.'s decision to make hard-core adult films available on its cable networks, to Valley adult film companies rushing to capitalize on the notoriety of their brand names, to "Vivid girl" Jenna Jameson's place on the New York Times bestseller list, has the adult entertainment industry gone mainstream?

The trend began with Van Nuys-based Vivid Entertainment Group, the widely acknowledged adult industry leader. Signing stars to two-year contracts, based on the "old Hollywood" model, Vivid developed an extensive roster of Vivid girls, the most famous being Jameson. Entering the business in 1984, as adult films began to make their way from seedy movie theaters into living room VCR's, Vivid grossed approximately $150 million in 2003. In recent years, the company has struck licensing deals on products ranging from snowboards, to condoms, to comic books.

Additionally, Vivid embarked on cross promotions with jeans manufacturer Ecko Jeans and Pony shoes. Since the beginning of 2005, the company has gone even further into the realm of mass culture, inking a deal with rap superstar L'il Jon, to make a series of adult films. Most recently, Vivid debuted a Las Vegas nightclub at the beginning of the month. Located inside the Venetian Hotel, The Vivid club is the result of a licensing agreement between Vivid and ARK Restaurants Corp., a New York City-based company that owns and operates 22 restaurants and bars across the county. Vivid declined to comment for the story.

North Hollywood-based Jill Kelly Productions hopes to capitalize on the industry's increasing acceptance in society, by also throwing its hat into the clothing arena. Last month, the company signed an agreement to license the fights to distribute a new Jill Kelly branded line of men's and women's apparel and accessories, with Mad Engine, Inc. Mad Engine creates and produces T-shirts and sweatshirts licensed by household names such as Marvel Comics, Mitsubishi and Toyota.

"We'd been approached by several companies over the last few years to license our name for products. We'd held off until now because the quality wasn't there. But it was the right time and the right company. It was something we wanted to do. Hustler and Vivid were doing it and we wanted to get our name out there also, especially now that porn and the adult business is going more mainstream," Scott Hoover, Jill Kelly Productions' director of publicity said.

Branching out

Hoover acknowledges that Wal-Mart isn't about to start carrying their merchandise anytime soon, but he sees a viable market for the company's goods, including mainstream chains like Aah's and the Virgin Megastore. Ultimately, Jill Kelly hopes to branch out beyond T-shirts and move into selling licensed high-end lingerie, Hoover said.

Perhaps the most glaring sign of porn's change to more mainstream marketing methods is Adelphia's decision to add adult films to its cable offerings. Five years ago, Adelphia, the largest cable provider in Southern California, had publicly announced that it was dropping Spice, a popular soft-core channel. At the time, Adelphia founder John Rigas declared that he found X-rating programming to be immoral. Rigas' morality isn't of much concern today, considering that the 80-year old and his sons are facing prison terms after being convicted last summer for looting the company and engaging in fraudulent accounting. While Adelphia had initially declared that they would offer triple-X-rated programming starting last Friday, the company has since recanted that decision, due to protests. The company will still offer both X and double-X rated films including in Southern California.

"Adelphia recently launched adult programming edited to triple-X standards on its video-on-demand platform in selected markets. This programming is widely distributed through satellite and other cable providers and there is readily available technology to block it. Some concern has been expressed over this type of adult programming. Adelphia will remove it from all of its systems," Erica Stull, Adelphia's director of external communications, said.

Triple-X or not, the Valley's adult film companies will be lining up to reap the benefits of a heretofore untapped market for their products.

Core demographic

"What's happening with Adelphia is what's happening with a number of companies. Adelphia's decision to offer adult programming is another great opportunity to reach to our core demographic. Video on demand is a very lucrative segment of the industry," Daniel Metcalfe, a spokesman for Canoga Park-based Wicked Pictures said.

Like Jill Kelly and Vivid, Wicked has also begun efforts to diversify its brand. A Wicked pictures trading card line hits the market this month and a clothing line is in the works.

Mark Kernes, senior editor for Chatsworth-based trade publication, Adult Video News, maintains that as society grows more tolerant of the adult industry, mainstream companies like Adelphia will become increasingly adept at finding ways to increase profits.

"There's no doubt that the local companies will reap the benefits of Adelphia's decision. Although I don't think that there will be a stepping up of production to handle the glut of demand." Kernes said. "Adelphia has figured out where the money is. If this takes off as they expect it to, they'll likely be out of bankruptcy in a short time, proving once again that sex sells," Kernes said.

Retired Cal State Northridge and New York University professor Vern Bullough testified as an expert witness during one of the infamous Edwin Meese prosecuted obscenity trials during the 1980s.

"The producers of erotica are in the business of making money. Many of the adult stars are going into clothing design and even writing books on it. There is a greater acceptance of the adult industry than there used to be," Bullough said.