US adult industry generated $13 bln in 2006, Internet porn is a $2.84 bln market

AVN estimates US adult products market to generate $12.922 bln in 2006. Adult movies remain the largest sector at more than $3.6 bln or 28% of the adult entertainment market. Falling prices for adult DVDs caused a drop of 15% in revenue in that segment, but unit sales were up, indicating a continuing market for adult films. Distribution over cable channels showed the strongest growth in 2006 at 34%. AVN estimates the Adult Cable/PayPerView segment (home and hotel TV movies) now represents $1.75 bln in revenue, annually. Internet sales of adult content, which includes images, live-chat and live-streaming video, was also a strong growth area. In fact, AVN reports that in 2006, Internet Sales became the second largest adult entertainment segment, with 22% of the market or $2.8 bln in sales.

Adult industry revenue segments in 2006

Segment

Share Sales
Video Sales & Rentals 28.0% 3,622,000,000 
Magazine 7.4% 950,000,000 
Cable/PPV (TV) 13.5% 1,745,000,000 
Internet 22.0% 2,841,000,000 
Exotic Dance Clubs 15.5% 2,000,000,000 
Mobile 0.3% 39,000,000 
Novelties 13.3% 1,725,000,000 
Total 100% 12,922,000,000 
Source: AVN Media Network