Hi Def to Cause Porn Shakeout? Part II
Expensive Transition
This transition could not have come at a worse time for many in “Porn Valley,” the area of the San Fernando Valley north of Los Angeles that has become the epicenter of the U.S. sex film industry.
Hundreds of small operators have flooded the market with low-budget films, stepping up competition and eating into profits across the board.
Given the current climate, few production companies can afford to switch. Creating true high-definition films is a complex process requiring special HD cameras that cost up to $80,000 apiece.
After filming, the material must be encoded and formatted on machines that cost as much as $20,000, equipment not needed for current DVDs. Then the film must be replicated, which can cost at least twice as much per unit as standard discs.
Not everyone is complaining. Deep-pocketed production companies like Vivid Entertainment, the industry’s largest producer, have been shooting with high-definition cameras for more than a year.
Vivid is preparing to release its first title HD title—Kink, starring Stefani Morgan—in October. Like some major Hollywood studios, Vivid will release its high-definition titles in both formats until a clear leader emerges.
‘Pro-sumer’
Industry observers predict smaller production houses that film scenes with so-called “pro-sumer” cameras will find it increasingly difficult to compete, as high-definition becomes the norm.
With the overwhelming majority of XXX films today barely selling 1,000 copies, most filmmakers will not be able to cover the cost of switching to high definition.
“We usually are pioneers, but the last thing the industry needs is a switch to another format,” said Paul Ward, managing partner at Major Video Concepts, an adult film producer and distributor. “It would be insanity.”
Mr. Hirsch recalls that it took about five years for the market to shift from VHS to DVD. The shift to high-definition DVDs will probably take much longer, he said, and the porn industry is not likely to be leading the way this time.
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