When you take into account emergent technologies, new forms of content distribution, the growing mobile/wireless market, and global demand for entertainment programming, it would seem a perfect storm is brewing.
Positioned in the middle of the tempest is Vivid Entertainment Group, one of the world’s leading adult film and video companies, with a rich tradition of superstar talent and an invaluable catalog of video and DVD titles. Launched in 1984 by Steve Hirsch and David James, the company has been a leader in the fusion of media, business, and entertainment that continues to flourish between the sex industry and mainstream entities like Hollywood, Madison Avenue, and print publishing.
With their stable of gorgeous A-list contract starlets in the adult industry spotlight, Vivid capitalizes on its brand by distributing varied product lines through the mail and via pay-per-view, the Internet, retail outlets, cable programming, and satellite TV. In addition, the Vivid Entertainment name and logo have been featured on everything from adult toys and condoms to T-shirts and snowboards.
“Our strong brand name and having the prettiest and hottest porn stars in the world have always given us the leverage we need to stay ahead of the game,” says Leslie Sharp, the marketing manager for Vivid Cash, the Webmaster affiliate program for Vivid Entertainment’s Vivid.com. “VividCash.com is constantly exploring the best and most efficient ways to deliver the best quality products and live up to the reputation Steven Hirsch has worked so hard to build.”
Vivid’s strategy – to parlay their tremendous reach within the adult industry into partnerships with mainstream businesses – has been a windfall for the company and their brand.
With a wealth of filmed content, Vivid is adept at finding new avenues for which to leverage their product. “We have a number of corporate accounts that re-purpose our product, bulk packaging or à la carte by movie,” says David Schlesinger, VP of licensing for Vivid Entertainment. “Now with the on-command capability and the ability to [distribute content] digitally versus having a bank of VHS tapes that have to be rewound every couple of hours, it makes it where we can put out a lot more content.
“We can really promote growth and product and that business is growing tremendously,” Schlesinger says, adding that the Net has become a principal element of Vivid’s business focus in the last five years.
“I think the thing that separated Vivid when the Web got huge,” says Schlesinger, “was that – and by no means we were the first company to get aggressive on the Web – but we were the first company to take an existing video library and re-purpose it on the Web.”
From the onset, Vivid’s Internet push was meant to distinguish themselves online. They immediately began digitizing movies and streaming them as part of a membership to Vivid.com, the company’s official Website. As of now, according to Schlesinger, Vivid has digitized just about everything in their library, and optimized it for dialup and broadband connections.
With their speedy expansion onto the Internet, the Vivid Entertainment model shifted accordingly to embrace the burgeoning market. In effect, Vivid is now a technology company as well as leader in adult movie production.
“We were kind of forced into a crash course,” Schlesinger says of Vivid’s move to the Web. “I went quickly from reading FHM and Rolling Stone to reading Wired and Fast Company, which is great because I’m now an absolute computer geek and I love it.”
The distribution model for Vivid’s Internet blueprint is quite exclusive, and according to Schlesinger, they have not given out a lick of content, save for a few image galleries here and there. “In the legitimate world there should be nobody out there with a Website with any Vivid content,” says Schlesinger, “unless we give a little away to Webmasters for promotion, which is more like a teaser.”
Until recently, Vivid resisted entering the mobile/wireless market, waiting instead for the “perfect opportunity” to benefit their brand and product.
“We’ve been watching it from close range for awhile and it’s been a topic of interest for quite a long time,” says Schlesinger, “and we waited to find the right partner and the right strategy.” That partner is L.A.-based Waat Media (www.instantweb.com), which signed an exclusive deal to take Vivid’s brand into wireless space.
The deal, however, will be aimed only at the European market. “These are technology guys, marketing guys, and they’re businessmen and they really get it,” says Schlesinger of Waat Media. “Our penetration now in Europe is hands down unbelievable.
Of Europe, Schlesinger says “The big providers like Vida Phone and Telefonica parallel the Cingulars and Verizons in America, but are much more aggressive and more comfortable taking on adult content. It’s been amazing for us to go out with the reputation we have, the quality of content and comfort factor we create when doing a deal. You know you’re not going to get an obscene product and you won’t get unattractive women or bad movies. People are really cozy to get with us for new business.”
Schlesinger says Vivid is waiting for the American market to follow suit, technologically speaking, before they will look into new mobile distribution platforms domestically.
An interesting and important aspect of Vivid’s foray into online programming is that they have developed what Schlesinger calls the “Vivid Niche”, and which leaves them out of the content wars, so to speak, with other high-profile sites. “Our niche is really hot porn stars,” says Schlesinger. “It’s not worth it for us to try and compete in every genre of adult content. We don’t do bondage, for instance.”
As for the future of the industry, Schlesinger observes, with a semi-serious chuckle, that buying and suing over technology patents might be a popular new way for individuals and companies to profit. “Nobody’s really focusing on a new niche,” said Schlesinger, “rather going after what they think is their intellectual property and the truth is a lot of these patents are very much everyday actions being defined and redefined in order to create a profit.”
Litigation aside, Schlesinger believes Video-on-Demand is a prospective goldmine and believes Vivid is positioned agreeably because anything “hot,” he says, is going to find its way onto to someone’s desk at Vivid. “I can be a call taker and not a call maker,” says Schlesinger, “and come off as successful, but that’s not what we like to do. We like to truly reach out to these technologies and these people and not wait, but be there and pounce on that next hot thing when it develops.”
“People just really want to watch movies,” he says. “The VoD models out there are brilliant and you won’t get screwed into an experience you’re not happy with.”
Even with a future seemingly bright for Vivid’s many forays into new media, obstacles abound; Schlesinger is quick to point out credit card processing as a continuing dilemma. “If Visa and MasterCard want to help keep [chargebacks] down, then don’t go to the press; work with us and let us help you help us,” he says. “It’s an obstacle we will hurdle, I just don’t know how yet.”
The licensing facet of Vivid’s business model, as far as Schlesinger sees it, is thus: “People want to see us and be with us, not just when they’re home watching a movie.”
Meaning there are numerous outlets worldwide that can be tapped to carry the Vivid brand. “When you have a company like Vivid with such a recognizable logo, a name that’s well known, the girls are iconic… it’s a natural fit,” remarks Schlesinger.
A good example of this is Vivid’s condom line, which happens to be sold exclusively in roughly one-dozen hotels in Las Vegas. “Totally pulled the other brands out and stuck us in there,” says Schlesinger.
Herbal products have also been a big winner for Vivid, as Schlesinger notes it’s one thing for people to try them once but entirely another when they actually re-order month after month; this summer will see the debut of Vivid T-shirts
Whether Vivid lunch boxes are in the offing is uncertain, but one never knows.
Not wanting to divulge too much regarding the next phase of Vivid’s new media evolution, Sharp said simply “We are constantly exploring the new technologies becoming available to us to painlessly distribute our content to the consumer. We have some very exciting, cutting-edge programs launching on VividCash.com before the summer Internext Expo.”
A perfect new media storm, perhaps?
