The more things change, the more they stay the same. Never was that more apparent than at the Internext Conference’s fourth visit to the Westin Diplomat resort in Hollywood, Fla., August 5–7. The adult electronic entertainment industry has changed, yes: It’s more mature, less raucous, more willing to accept responsibility for itself and take its place as a bona-fide member of the Big Business fraternity. Still, regardless of the creeping notion that the good ol' days when people could establish thriving adult enterprises in their garages are gone forever, the conference still attracted wide-eyed newbies hoping to develop the Next Big Thing. People still met and hugged warmly, still attended certain panel discussions in droves, still made big-bucks deals, still hosted over-the-top after-hours parties featuring big-name celebrities, naked chicks and beefcake, and live video shoots.
The conference itself has changed, too. For the first time, Internext had the Diplomat all to itself. That meant attendees and exhibitors had to register for the conference before they could register for their hotel rooms. It also meant an increased presence of security officers, and the new requirement that everyone had to show a conference badge to gain access to any hotel facilities. Although that made for a few tense moments when badges inadvertently were left behind, most agreed that reserving the Diplomat and its grounds exclusively for the Internext crowd was "a good thing," according to show manager Renee Johnson. "[Participants] liked the fact that the entire resort was their business forum," she said. "It’s not just about the show floor anymore.
"Overall, the new format – open sponsorships and advertising – went over really well," Johnson continued, referring to the new policy that allowed businesses to advertise in venues resort-wide and host "official" parties and events even if they didn’t rent booth space. "It allowed us to pay more attention to restricting free handouts from people who hadn’t paid for the privilege, which most people thought was much more fair to the ones who had."
Despite some concerns before the event that the show’s "open advertising" policy would overwhelm attendees with messages from corporate sponsors, most paid messages were subtle and tasteful. A goody bag distributed to every room on Thursday night contained a collection of necessities and fun freebies that seemed to show up everywhere during the remainder of the weekend. Banners decorated a variety of spaces (SilverCash even had one underfoot in each elevator), and hotel staff members sported sponsor-provided shirts. Perhaps the advertising gimmick that got the most attention was Python’s option on the toilet paper: Each guest room sported Python ads printed on every sheet of the humble stock. "The toilet paper probably was the most unusual and popular advertising," said Johnson, suppressing a giggle. "Several companies already have asked if they can have it if Python decides to give it up."
Let the schmoozing begin
Everyone from the avuncular Max Hardcore to Carmen Luvana made appearances on the show floor in the beachfront convention center at the Westin Diplomat during the first day of the conference. If nothing else, capacity crowds were kept entertained by a plethora of sideshows such as a poker marathon that ran through Sunday, poolside contests involving scantily clad women, and, of course, business, business, business. If attendees weren't too busy ogling half-naked women, they could practically smell the business deals that were going down as fast as the booze. Because it was the first day, the cumulative effects of late-night parties hadn’t had a chance to debilitate attendees and exhibitors yet, although the parties the night before were spectacular: namely "Party Like a Porn Star" at the Solid Gold Gentlemen’s Club and GFY’s traditional warm-up party in the Diplomat’s Grand Ballroom.
There were seminars too. Day One of Internext featured four: "Inside Search Engine Marketing," "Put It On My Bill," "Check Please," and "Mainstream Moves." Focusing on search-engine optimization and various billing issues, the first three seminars encompassed tried-and-true themes that never go out of style, especially for those considering breaking into the adult entertainment realm.
The fourth, Mainstream Moves, provided insight from movers and shakers already successfully marrying mainstream greed and adult entertainment’s revenue stream. The tip of the day came from Philip Kaplan of AdBrite, who encouraged audience members to keep their eyes out for ways to work with what he called "gray area" companies like tobacco and alcohol giants that can’t advertise on mainstream sites with minor traffic but balk at advertising directly on adult sites. Legendary Lars of AdultFriendFinder backed him up, predicting that the "next big thing" in adult online moneymaking will be "networks that hook up mainstream and adult to monetize traffic." John Michael Cataldi of DateApp, on the other hand, swore IPTV and delivery of adult content to homes and hotel rooms will take the near future by storm.
One of the first overall themes of the show emerged during the first seminar when Adultopia.com president Mike Braccio, chuckling, told the throng, "I love to talk to mainstream folks because they're so far behind us."
AEBN's mobile gang, Xobile, would have to agree, since they were heavily promoting the company’s carrier-independent mobile and Leapscan technologies. Leapscan allows users to scan the bar code on the back of a DVD box and watch the trailer play on their mobile devices. The software also can alert users when a new movie by a specific performer becomes available and ask them if they want to purchase the DVD.
"When you look at stuff like this, there's no question where the future's headed," Xobile president Harvey Kaplan said while showing a full-length smut flick on his Pocket PC.
Meanwhile, AEBN's Xobile product is reportedly experiencing some major early success. Kaplan said Xobile is experiencing a conversion rate of 1:11, and the mobile sector overall is growing at a clip of 45 percent.
"In two years we have accomplished what the Internet accomplished in six," Kaplan said.
Even before the seminars ended at 4:30, happy hour gatherings had begun. The rain in Spain falls mainly in the plain, but apparently in Florida it falls mainly on Internext. No matter. The daily squalls were furious but short-lived, causing only the briefest interruptions of activities scheduled between 4 p.m. and 6 p.m. It did precipitate a rousing chuckle, however, when the bikini-clad babes awaiting their turn to strut their stuff during SilverCash’s annual bikini contest all dashed for cover in the face of a sudden downpour. Later that evening TopBucks pulled out all the stops for its "Big Fat Greek Dinner Party," which was followed in grand style by AVN Online’s and Internext’s crammed "Smoke & Mirrors" gathering at Nikki Marina, on the Intracoastal Canal across the street from the Diplomat. Food, drinks, music, and former VoyeurDorm honcho David Marshlack’s yacht all made the scene. Night owls wiled away the hours at one of two late-night venues: Passion Reaction, a kick-off party for gay webmasters, or the 1st Annual Pajama Party at Club Deep in South Beach.
On the second day, God created attorneys…and an orangutan named Harry
Internext kicked it up a notch on day two, starting with a 10 a.m. meeting of the Free Speech Coalition that was open to all. Disappointingly – but not unexpectedly – the meeting drew a sparse, but interested, crowd. FSC communications director Tom Hymes and industry attorney J.D. Obenberger recapped recent developments in the FSC’s ongoing legal battle to enjoin enforcement of the U.S. Department of Justice’s regulations pertaining to 18 U.S.C §2257, the federal records keeping and labeling law.
"[The August 2 hearing in the matter of Free Speech Coalition Inc. v. Gonzales] couldn’t have gone better," Hymes noted. "When you leave a hearing feeling sorry for your opponents, it’s a good experience." He also said there are "subtle indications the regulations in their entirety could be enjoined."
Obenberger, himself an attorney of no little oratorical power, praised the courtroom prowess of plaintiffs’ attorneys Paul Cambria and Louis Sirkin, particularly pointing out Cambria’s argument that hardcore pornography has a political expression component and as such is constitutionally protected. That, he believes, is why the DOJ has "backtracked from some of the more extreme provisions of the regulations" (see "DOJ, FSC Clarify Some 2257 Regulations" on AVNOnline.com).
As things were left after the hearing, Obenberger said, it seemed the judge’s biggest concern was why a statute that’s been on the books for 17 years should be enjoined. Still, he cautioned the audience not to get too excited about the results of the hearing, which many view as a clear-cut victory for the adult industry: "Every time we win, there are immediate, hostile reactions." It’s not unreasonable to expect someone to be "popped" for something – possibly something entirely unrelated to 2257 – soon, he warned.
The 2257 theme, while not quite as prevalent as it was at other recent shows, hit the main stage at Internext again later in the day with the most well-attended seminar of the conference. And hey, guess what? There are just about as many answers now as there were two months ago: Not many.
"Unfortunately in some cases we don't know what the answers are yet," GFY marketing director and panel moderator Eric Matis told the room.
The omnipresent Hymes, a panelist, ran down the developments during the hearing again for those who missed it at 10 that morning, adding, "I think everyone in this room should be extremely proud of the way these attorneys presented themselves. They were intent upon arguing for everyone from the smallest webmaster to the largest company."
Cue applause.
Attorney Robert S. Apgood, who also sat on the panel along with nine others, cautioned the crowd that even if an injunction is granted, it isn't the final solution to 2257. "If we win the FSC case, and I believe we will, it's not the end. It's the beginning," he said.
For many U.S. webmasters, the 2257 panel proved to be an eye-opening experience when Canadian barrister Paul G. Kent-Snowsell made a point of outlining the ways in which 2257 violates several human rights laws in other countries, including his own. By requiring American webmasters to receive, store, and transmit personal data about models and performers from and to content producers in other countries with whom they do business, "2257 actually encourages people in other countries to violate their own laws," he said.
For most of the civilized world, he continued, "Data protection is a human rights issue. The European Data Directive and the CSA Model Code [for example] prohibit the transmission of personal data." Only U.S. companies that voluntarily register with the U.S. Department of Commerce’s Safe Harbor Self Certification Process are allowed to receive private data from European Union countries, Australia, and Canada, Kent-Snowsell said, and only 220 American companies are on the list—none of them adult.
Day Two's other seminar highlight was the obscenity panel, which warned the audience that the government's ultimate goal with the updated 2257 regulations is to get obscenity convictions through stacking charges and then dismissing 2257 charges in exchange for a guilty plea on an obscenity charge. "What they're trying to do is get the conviction for the more politically popular cause and go to Morality in Media and say, ‘Look, we are getting results,’" Apgood said.
"As being in the adult industry becomes more mainstream, we're experiencing more of a backlash from right-wing conservatives," FSC executive director Michelle Freridge said during the panel entitled "Has Obscenity Gone Too Far?"
The quote of the day, though, came from attorney Gregory Piccionelli during the "Ask the Attorneys" panel: "The government acknowledges that the legitimate adult business has nothing to do with child porn." He was speaking in reference to several recent developments, including the August 2 FSC hearing and a recent report from the Association of Sites Advocating Child Protection. It’s worth noting that two of the six attorneys on the panel – Brad Gross and Chad Belville – had jumped ship from the prosecutor’s office to the defense of the adult industry. Gross, in fact, was the prosecutor who established the computer crimes division of the Dade County District Attorney’s office.
Even though this was a porn convention, it wasn't all about dodging government bullets. It appeared iBill, for example, is still dodging bullets from inside the industry. The payment processor had a presence (and a booth) on the show floor as part of its effort to come back from the dead under new owner Interactive Brand Development, which took over management of the third-party billing company in January.
However, webmasters remain skeptical of once-mighty iBill. There was almost a constant stream of attendees stopping by to ask iBill reps if the company was paying webmasters yet. "We've paid out $30 million since March," was the standard response.
There were other entertaining diversions at the show as well. Clearly, the sexiest beast to make an appearance on the show floor on Saturday was Harry, the Hustler orangutan who made the rounds with the Larry Flynt Productions crew and constantly stopped to pose for photos with the ladies. "[We’re] just looking for a little viral marketing," Flynt Digital marketing director Laurel Hertz said.
Well played, Hustler, well played.
Also well played were Saturday night’s parties: Cybersocket’s webmaster bash was packed, as always, with gay webmasters and plenty of buff eye candy, SilverCash’s happy hour at the poolside Splash Bar drew record crowds, MaleFlixxx’s Cock & Tail Hour packed a nearby gay club, and NoCreditCard.com’s scotch and cigar party to introduce ChargeMeLater, though subdued in tone, was one of the hits of the weekend. Pink TV’s all-nighter at the company’s 25,000-square-foot warehouse-cum-studio space in Miami featured tours of the facility, and live sex acts that doubled, no doubt, as up-close-and-personal, behind-the-scenes views of the making of an adult video. Talk about writing off your expenses.
Oh mama, can this really be the end?
As Internext began to wind down on its final day, the atmosphere heated up. That was due, in large part, to the hotly anticipated "lights-out Texas Death Steel Cage match" over dot-xxx that led off the day’s events. Featuring the first appearance in a public forum by ICM Registry’s Stuart Lawley and Jason Hendeles, ".XXX Mania" was both satisfying and oddly disappointing. The extra security surrounding the seminar room as the controversial panel started seemed a bit of overkill, as the audience was disappointingly small, and neither it nor the panel behaved badly.
Both Hendeles and Lawley, whose company will be responsible for implementing the dot-xxx sponsored Top-Level Domain (sTLD), have taken quite a bit of flack in the adult community, particularly from fellow panelists and verbal pugilists Connor Young, editor of YNOT, and (once again) the FSC’s Hymes. While Hendeles and Lawley made themselves scarce until their hour to strut and fret upon the stage, both Young and Hymes mentioned to several attendees how eager they were to engage the ICM guys in "meaningful dialogue." And they they did.
Hendeles, who has been pushing for dot-xxx for several years, came equipped, in the form of prepared and perhaps contrived opening remarks. "Our goal is to address the concerns of the online adult industry," he said. He stressed that no adult company would be forced to participate in dot-xxx, although ICM believes it will be in all pornographers’ best interests to join the expected land rush. Dot-xxx, Hendeles said, will provide "new opportunities for higher traffic and higher conversion rates." As with many of the other statements he and Lawley made during the seminar, however, Hendeles could not or would not elaborate on that notion. He promised ICM would have more to say about such topics as the International Federation for Online Responsibility (ICM’s nonprofit, policy-setting sibling) and its board of directors, exactly which First Amendment groups back ICM’s plan, who among the adult industry actually supports dot-xxx, and other details "soon." He neglected to define "soon," however.
Lawley may have made matters worse when he explained ICM’s rationale for seeking approval for dot-xxx from the Internet Corporation for Assigned Names and Numbers. "The [adult] industry has a bad reputation," he said, continuing despite a palpably less than enthused audience reaction, "We saw dot-xxx as a framework for the adult industry to self-regulate and let the world know it’s done so."
For his part, Young seemed to take offense from the get-go. "Dot-xxx is not a magic bullet to protect children from adult content online," he said. "It’s not going to do any good. We can’t allow a system where [ICM makes] a lot of money at the expense of our businesses." Judging by the applause, many in the audience shared Young’s concern that much of the $75 predicted price tag per domain name will line ICM’s pockets.
Hymes, who seemed to be channeling Clarence Darrow, was even more indignant. "You already have a powerful voice in the Free Speech Coalition," he said, referring to an assertion by Hendeles that IFFOR and a code of conduct it proposes to create will serve as a bridge to address the concerns of the anti-porn camp without disbanding the adult entertainment industry altogether. "The FSC doesn’t trust itself to impose restrictions on you. Why would you let someone else? I simply don’t understand why you would want to hand over your businesses’ future livelihoods to a board on which you’ll have a minority voice." The composition of the IFFOR board of directors remains nebulous, although Hendeles and Lawley repeatedly have assured the adult industry it will be well represented thereon.
"Don’t fall for the argument that you somehow owe something to other people and you must put yourselves into the hands of other people to negotiate your surrender," Hymes warned.
Adult industry attorney Piccionelli and Monte Kahn, chief executive of domain registrar Moniker, provided so-called "neutral voices" on the panel, although Kahn understandably seemed to side most often with the ICM folks. "ICANN has never approved a TLD and not implemented it," he said. "In my mind this extension is coming, and there’s nothing anyone in this room can do to stop it."
Lawley said he expects the dot-xxx domains to be live by February 2006, and there will be anywhere from 100,000 to 500,000 registered. In light of that revelation, Piccionelli suggested that ICM implement a "poison pill" clause to address the industry’s concerns—most notably that the dot-xxx TLD might become subject to government or other regulation mandating adult content could reside only within that framework. Lawley, in fact, admitted he has received no assurances from any government that it will not try to regulate dot-xxx or make it mandatory for the industry. Piccionelli said he believes it’s much more likely that Visa or Mastercard could refuse to process payments for adult content residing on any domain that does not end in ".xxx."
"If some country tries to sequester [dot-xxx domains], [or] if Visa tries to take control, or if it just isn’t representing the interests of the industry, then the whole thing just folds up and goes away," Piccionelli proposed. Although the audience seemed to approve, neither Hendeles nor Lawley made a commitment to implement such a plan.
The centerpiece of the discussion, which spilled over into the lunch hour, was trust. Many in the online adult industry feel that Hendeles and Lawley have been less than forthcoming with information such as which groups and individuals have or are supporting dot-xxx.
"The very fact that they’re asking us to trust them should be of concern," Hymes said.
Hendeles acknowledged the issue. "We appreciate that we have to be open and transparent, and we will do that going forward," he said.
Still, outrage remained in the audience. New Destiny chief executive Spike Goldberg seemed to speak for many when he charged, "You haven’t supported this industry! Have you done anything to fight Acacia? Have you donated any money to help fight 2257?" Lawley remained unfazed. "Very few people have switched on to the opportunity this is," he said.
After that, it took most of the rest of the day for panelists and observers to settle down again. Try though they might, the remaining seminars – though well presented and interesting – just couldn’t match the level of angst generated by the first one. And perhaps that’s a good thing. Women in Adult and Cybersocket helped attendees wind down at the end of it all with hospitality suites filled to capacity with revelers not yet ready for the weekend to end.
What’s next for Internext?
So what’s next for Summer Internext? The show will continue to evolve, according to show manager Johnson. "We made some pretty big changes this year, and we’ll keep making changes in response to feedback from exhibitors and attendees," she said. "We’ve already gotten great feedback about the breakfast and lunch we provided gratis every day this time. The Westin went all-out on that, and it was a nice way of adding value to the registration fee."
The summer show’s big brother, Internext in Las Vegas in January, is undergoing some changes too, Johnson revealed. "Yes, it’s true," she said about rumors that Internext and AVN’s Adult Entertainment Expo will run concurrently but in different halls at the Venetian Hotel and Casino in January 2006. "We’re going to make it hard for fans to get access to Internext, though. Trade attendees will be offered a convenient super-pass that will get them into both shows, and exhibitors’ badges will get them into both."
Why the changes? "There’s a general convergence in the industry, and that needs to be addressed," Johnson said. "We’re going to do whatever’s best for everybody."
Still, Summer Internext will retain its own special place. "It’s an amazing event," Johnson said. "There really is no other event like it."
