Market Summary
Although the adult entertainment sector is considered outside the boundaries of traditional (and respectable) business, the hidden truth is that many of the most respected companies in the world enthusiastically profit from the distribution of adult content. For example, hotels offer adult content to their guests, cable companies broadcast adult content (as well as sell adult content through video on demand), and telecommunications companies transmit adult content. These highly respectable companies – beckons of Wall Street – are all engaged in adult content, and while they do not advertise their involvement, the fact that they are links in the adult entertainment chain lays truth to the lie that the adult sector has not been embraced by corporate America (and its investors). With this in mind, a company overtly engaged in the adult sector is able to establish and maintain a degree of respectability, especially if it is associated with a well known icon such as Luther Campbell.

The adult entertainment market is estimated at $57 billion worldwide annually. The United States comprises more than 30% of the market. Of this market $24 billion is generated by DVDs, films, and the Internet.

Adult clubs and nightclubs generate $5 billion annually worldwide. The United States is 40% of the market.

Magazines and books account for over $2 billion annually, with the U.S. constituting more than 30% of the market.

To place the volume of the adult entertainment sector into perspective, the industry generates more revenue annually than CBS, ABC, NBC, and all the Hollywood studios combined ($16.2 billion for the traditional entertainment companies and more than $20 billion for the adult entertainment companies).

Execution

• There are 14 DVDs from the Luke Freak Show series that are currently ready for the company to promote and sell. These DVDs have sold close to 500,000 copies and can be marketed for additional sales.
• The Company has secured 13 prime URLs that meet the needs of the online adult content division, with each website providing different content, although combined, the family of websites meets the standards already being set within the industry.
• The Company will also produce full length features of softcore and hardcore adult content to be marketed directly to the public on DVD.