Pornography is the new lagging indicator

Updated
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adult store sign

Just a month after Geoff Williams reported that the economic stimulus package was stimulating more than just checking accounts, it turns out that the adult entertainment industry isn't able to keep it up. Wired reports that the porn industry is feeling the effects of increased oil prices as well as restricted consumer spending. These factors are further exaggerated by an onslaught of piracy and free amateur content. The economy is affecting everyone in the industry, from the producers to the front line retailers who are experiencing rental drops of up to 15% and DVD sales falling as well.

I think I've exhausted the number of play on words I can include in one article so I'll take a break to examine what limp porn sales mean for the economy (seriously I'm done now). While it can be argued that the industry is simply coming to grips with the same factors that have been affecting the music industry over the past 5 years that answer is simply the low hanging fruit. It's not like free and pirated porn has grown so much over the past year that the industry is tanking just because Joe Schmo is sharing pics of his ex girlfriend. Porn is actually a lagging indicator of the economy, much the way that online advertising is considered a lagging indicator.

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