SexEntertain co-founder and Vice President Michael M. says he’s learned some worthwhile information from spending seven years providing adult content to webmasters: "Don’t be lazy. Don’t alienate anyone. You never know who’s going to be the next giant company. From my perspective, it’s all about quality and reliability and trust."
As one of the adult Internet’s top content providers, SexEntertain has adhered to those principles, which accounts for the company’s success and for helping SexEntertain secure several lucrative deals with video production houses like Vivid Video and New Sensations, as well as online programs such as SilverCash, TopBucks, and SexSearch. "A lot of our ability to do that kind of work is based on our credibility in the market—the fact that everybody views us in the market as fair guys who never cheat and [who] offer a reliable, innovative set of products," Michael said. "We’re perceived as being smart, trustworthy guys."
It’s basically always been that way. Back in 1998, when Michael was a senior vice president for global accounts at SBC Communications, fate—or, rather, love—intervened. "My soon-to-be business partner [Patrick] married my best friend at the time. He was from Europe, and had moved to [the U.S.] for her, and we got to talking." A computer programmer, Patrick had dabbled in adult and turned Michael on to the idea. "He was very technically oriented," Michael recalled. "I had the fundamental knowledge of the Net and how things were growing at the time. So, we decided that might be a good combination."
The two men immediately began brainstorming. "We decided we would continue going forward into adult, because it seemed to be still an open forum where you could really try out new ideas," Michael remembered. "I hate using the term ‘Wild, Wild West,’ but, really, you could do a lot of things that you were not able to do in mainstream." After investing some seed money into their company, both men decided they would quit their jobs and devote themselves full time to their new venture. "We both believed this was where everything was headed and we wanted to be part of the industry, so we really put all of our attention on this project," recalled Michael. "At that time, there were really only one or two other players in the market. Looking at the market, we decided to take advantage of this part of the industry where there wasn’t much competition."
Initially, SexEntertain offered small clips to its members, hiring talent from the World Modeling agency and shooting the content in an in-house studio. "We’re in Los Angeles—the adult capital of the world—where we can make this stuff relatively easily and quickly and get it to the market," Michael said. In the early days, "webmasters weren’t picking up their home-video cameras and producing content, so [what was available] was much more high-end material. At that time, there wasn’t much interactivity going on; it was mostly picture galleries. There was not much video. We offered interactive content. We were fortunate [in that] when we came on board, we offered something truly unique."
Eventually, Michael and Patrick saw the fruits of their labors. "After we got the first big check from one of our biggest clients, we realized that we really had something that people liked and wanted," Michael added. "We knew if somebody was willing to pay [that] much, we could probably get a little more." SexEntertain soon acquired a solid staff, started offering full streams of movies, and began enjoying broader success.
SexEntertain has enjoyed a mostly bump-free ride, said Michael, who avoided what could have become a disaster when Patrick left in 2004. "I had a great deal of ideas about expanding SexEntertain—bringing out new products, entering new markets, and so forth," Michael explained. "But, accomplishing these goals required a good deal of time, engineering, and money. Pat did not want to make that investment and commitment. We remain best friends and partners in other business ventures."
To fill the void, Michael recruited Internet veteran RJ, who understood the company’s potential and immediately went to work. "I had a great deal of experience with streaming media on the Internet and had run companies that provided the type of customization and innovation that SexEntertain’s new products embody, including a version of the ‘branded product’ outsource business," RJ said. "I was actively seeking the opportunity to apply that technique in the adult market and jumped at the opportunity to work with Michael. He shared his vision for SexEntertain and explained to me what he thought was required. We were in synch immediately and hit the ground running. The innovations, alliances, and business successes we’ve had recently are examples of Michael’s and my common vision."
Some of those innovations include SexEntertain’s Multi-Pass feed product line, which enables webmasters to customize their feeds (which contain niche-oriented, high-resolution DVD content) to match their members’ areas, as well as proprietary software architecture that underpins the company’s outsource business. "This is the sixth generation of proprietary content management and distribution software used to create and deploy ‘branded’ leased content products powered by SexEntertain," Michael noted. "It is very powerful, flexible, and economical to use, enabling us to create new products for our studio partners that we market under their brand.
"We really take pride in our product, and we take extra pride in asking what our customers want and trying to fulfill those needs," Michael continued. "That’s one of the things we are known for: being responsive to our customers—both in what it requires as far as technical support and also what they’re looking for as far as content in the future. That’s really where we’ve focused, and I think we’ve shined really well."
RJ added, "We knew a lot of people before they were big, and because we have that long-term relationship with them and we’ve earned their trust, we get a lot of ideas from them. One of the things we’ve been working on over the last couple years is really trying to look beyond content as a thing in and of itself and figure out what we can do to add to the business value of our customers. When we think about product development, we are focused on those goals. It’s much more about using the content along with technology to do something for the customer that will help them work with their members."
Indeed, SexEntertain’s profile has grown through its commitment to its clients and for its work in other areas, including the Webmaster Toy Run, a program Michael created as a way to give toys, books, games, and "good experiences" to displaced and underprivileged children. The program is supported exclusively by webmasters’ contributions. "I’ve been overwhelmed with the level [at which] our industry has given to [the toy run]," RJ said. "We have done great things only because the industry has chipped in and gotten involved. For whatever may be said in the outside world about the adult entertainment industry, these are good, smart people."
That’s not the only thing about the adult industry that surprises these men. "This is the one industry where your biggest competitor can be your biggest advocate," Michael offered. "They will really go the extra mile to help you succeed. I’ve never experienced that. I’d been in mainstream for years before getting into adult, so that was a rather refreshing experience."
Not to suggest the business can’t be cutthroat, RJ interjected. "In a lot of ways, the adult industry is a faster, tougher industry than the other entertainment businesses, and, therefore, the people who survive and prosper in it—like us and some of our clients—had to outdo and out-innovate their best competitors and even themselves. But, it raises the bar for everybody, and everybody learns how to do things. There’s a lot of information-sharing that goes on. I think the people in mainstream learn from that. I used to run one of the largest webcasting companies in the world, and, believe me, we figured out all of our technology based on how it was being done in the adult business."
So, what’s ahead for SexEntertain? Expect a re-launch of its website along with the rollout of several new products—including a set of programs that mix content, technology, and payment processing that insulates webmasters from chargebacks and promotes site retention—during the next quarter. "We are definitely going to continue with our effort to build partnerships with studios and other businesses within the industry," RJ promised. "We’ve gotten a lot of traction from this approach, and we’ve spent a lot of money building the technology platforms necessary to make all of this possible. We hope over the next year that we begin to see the fruits from all of that investment."
Michael said he’s eager to see how it all unfolds. "I’d have to say there’s always a new challenge every day," he declared. "This is the one job that I’ve had in my life where I look forward to Monday mornings. I never dread work."
For anyone who’s held a regular job, that’s saying something.
