WEBVTT - Chapter 7: Cybersex

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<v Speaker 1>You know, hardcore. Like the word pornography has kind of

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<v Speaker 1>a moving definition depending on who you're talking to. So

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<v Speaker 1>it's kind of hard to define because I have my

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<v Speaker 1>own personal definitions, but other people have other definitions. Some

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<v Speaker 1>people believe that Playboy is pornography, and other people believe

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<v Speaker 1>that it's not. Some people believe that I'm pornography, and

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<v Speaker 1>some people believe I'm not. Danny ash Danny dot com.

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<v Speaker 2>A website isn't a very marketable tool until the time

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<v Speaker 2>modems become fast enough to provide for video on demand.

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<v Speaker 2>When that happens, hotels and motels will change how they

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<v Speaker 2>receive adult programming. That's when the industry will really take off.

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<v Speaker 2>David James, Vivid Video.

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<v Speaker 3>There are a lot of computer nerds emerging as porno kings.

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<v Speaker 4>Bob Guccioni, founder of Penhouse.

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<v Speaker 5>Sex sells if widgets sold as good as sex, I'd

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<v Speaker 5>be selling widgets, but unfortunately they don't. Seth Worshowski Internet

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<v Speaker 5>Entertainment Group.

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<v Speaker 6>Welcome to Jena World. Welcome back to Jenna World. I'm

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<v Speaker 6>your host, Molly Lambert. This is episode seven Cybersex. Jenna

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<v Speaker 6>Jamison continues her mainstream media tour with an appearance on

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<v Speaker 6>The Jerry Springer Show, the popular daytime talk show known

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<v Speaker 6>for its provocative topics and confrontational panel segments. For an

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<v Speaker 6>episode titled Jenna Jamison Sex Goddess, Jerry Springer, like Howard Stern,

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<v Speaker 6>tries to back Jenna into criticizing the industry and saying

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<v Speaker 6>it degrades women. Now a professional at this sort of thing,

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<v Speaker 6>she refuses to take the bait.

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<v Speaker 7>Do you like to watch?

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<v Speaker 8>Well, you're gonna love this, Jenna.

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<v Speaker 4>Welcome to the show, Jerry Spring talk show host.

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<v Speaker 6>Jenna comes out in a low cut black catsuit with

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<v Speaker 6>a gold white chain necklace and her trademark smoky eye

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<v Speaker 6>and frosted lip, flashing peace signs and sticking her tongue out.

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<v Speaker 6>Jerry starts a full court press, trying to get Jenna

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<v Speaker 6>to admit she regrets her choices in life, but Jenna

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<v Speaker 6>stands firm.

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<v Speaker 9>Sex is supposed to be really intimate.

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<v Speaker 4>I mean it's personal.

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<v Speaker 8>It's not as intimate in the movies, that's for sure.

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<v Speaker 8>It's very mechanical actually.

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<v Speaker 4>Because you're getting directed there, I'm.

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<v Speaker 8>Getting directed, and you're paying more attention to where the

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<v Speaker 8>camera is or where you have to open up to.

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<v Speaker 7>You know how that is, Jerry.

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<v Speaker 8>But the more I do it, the better time I have,

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<v Speaker 8>because you forget about those things.

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<v Speaker 6>Jerry brings out more porn performers to join the panel

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<v Speaker 6>and tries to push them into saying that doing porn

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<v Speaker 6>is ruining their personal lives, but all of them say

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<v Speaker 6>that's simply not the case, that work is just work,

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<v Speaker 6>and real life is still real life. If anything, people

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<v Speaker 6>in porn are more careful than civilians about keeping up boundaries.

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<v Speaker 6>Jenna emphasizes that making adult movies might be an unusual job,

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<v Speaker 6>but it's still a job with hours and regulations.

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<v Speaker 8>I think the sex we have in movies is completely

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<v Speaker 8>different than the sex I have at.

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<v Speaker 7>Home with my husband.

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<v Speaker 8>I'm making love with my husband. I'm intimate with my husband.

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<v Speaker 8>We love each other. The sex I have with Mark

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<v Speaker 8>is not anything close to what I have with my husband.

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<v Speaker 7>That's my job.

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<v Speaker 6>After Jenna and the panel repeatedly explain intelligently to Jerry

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<v Speaker 6>Springer that they love their jobs and lives, can maintain

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<v Speaker 6>intimate romantic relationships off screen and stand behind the adult

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<v Speaker 6>film industry, Jerry still gives a pedantic final address that

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<v Speaker 6>condemns them and porn. Jerry says, even if you don't

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<v Speaker 6>care what other people think of you, the world will

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<v Speaker 6>still judge you, and your life and relationships will be ruined.

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<v Speaker 6>It's like he wasn't listening to anything that Jenna said. Meanwhile,

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<v Speaker 6>in Ginger World, Vivid stardom, mainstream film work and headlining

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<v Speaker 6>national towards exotic dancing have allowed Ginger Linn Allen to

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<v Speaker 6>buy a six six hundred square foot seven bedroom home

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<v Speaker 6>in Woodland Hills for five hundred and eighty thousand dollars

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<v Speaker 6>and a LEXISSUV. The long friend ship and work partnership

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<v Speaker 6>between Ginger Lynn Allen and Vivid Stephen Hirsch turns romantic

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<v Speaker 6>in the nineties. It starts with sneaking around as he

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<v Speaker 6>is technically still with his longtime girlfriend Wren.

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<v Speaker 10>He kept telling Ginger he was going to have her

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<v Speaker 10>move out, he was going to pay her off Wayne Allen, Ginger's.

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<v Speaker 6>Father, Stephen Hirsch, and Wren have an acrimonious breakup. He

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<v Speaker 6>pays out a big settlement to Wren that acknowledges her

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<v Speaker 6>role in creating the Vivid Empire. Stephen Hirsch and Ginger

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<v Speaker 6>Lynn Allen go public with their love and things quickly

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<v Speaker 6>escalate into talk of marriage and kids. In nineteen ninety five,

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<v Speaker 6>ginger Lynn purchases a five diamond gold band at Beverly

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<v Speaker 6>Hill's jewelry store, twenty four carrots. She plans to propose

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<v Speaker 6>to her boyfriend at a beach picnic, but gets so

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<v Speaker 6>excited she brings out the small black jewelry case that night,

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<v Speaker 6>but not everything is golden for Vivid's first megastar.

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<v Speaker 11>He said yes, and then I told him something that

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<v Speaker 11>changed his mind. Ginger Lynn Allen performer.

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<v Speaker 4>She said, I'm pregnant. He gave her the ring back.

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<v Speaker 6>Ginger Land gives birth on March thirty first, nineteen ninety six,

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<v Speaker 6>to a son who she named Sterling Wayne Robert Allen

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<v Speaker 6>an Aires. She withholds the name of the father on

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<v Speaker 6>his birth certificate. There are whispers that Stephen Hirsch is

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<v Speaker 6>allegedly paying ginger monthly child support under the table.

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<v Speaker 12>You know you've really made it when people can print

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<v Speaker 12>rumors about you. I'm really not going to comment on it.

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<v Speaker 12>I'm not going to glorify this. Stephen Hirsch, Vivid video founder.

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<v Speaker 11>Stephen went from a really sweet, assertive, nice young guy

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<v Speaker 11>to very calculating. I think that when you go from

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<v Speaker 11>a person who rolls pennies to start your company to

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<v Speaker 11>being a millionaire or billionaire, you treat people differently. You

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<v Speaker 11>forget where you came from and who you are and

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<v Speaker 11>who was there for you.

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<v Speaker 6>The Vivid girls who come after Ginger Lynn Allen are

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<v Speaker 6>mostly not given the same level of star treatment that

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<v Speaker 6>Ginger got, nor do most of them achieve her level

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<v Speaker 6>of success. By the late nineties, the new Vivid girls

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<v Speaker 6>have to sign away the lifetime rights to their stage

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<v Speaker 6>names to Vivid for merchandise licensing. While Vivid contract girls

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<v Speaker 6>still get star billing, they're allegedly underpaid. They get no

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<v Speaker 6>royalties or residuals, no cut of the back end. Even

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<v Speaker 6>though Vivid constantly recycles old scenes for compilations. Performers only

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<v Speaker 6>get paid once upfront.

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<v Speaker 13>You couldn't get me to be a Vivid girl again

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<v Speaker 13>if you pointed a gun at my head. They want

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<v Speaker 13>too much, They get everything.

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<v Speaker 14>Vivid girl.

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<v Speaker 6>A nineties Vivid girl named Diana Lauren gets paid a

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<v Speaker 6>flat fee of a few thousand dollars for her work

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<v Speaker 6>headlining nineteen ninety seven's Bad Wives for Vivid, which ends

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<v Speaker 6>up making the studio a cool two point seven three

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<v Speaker 6>million dollars. But there's a new way that performers might

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<v Speaker 6>be able to take financial control and sell their own

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<v Speaker 6>likeness without signing a bad contract with a big studio.

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<v Speaker 7>The Internet.

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<v Speaker 1>Everyone told me I should build a website about the

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<v Speaker 1>same time my husband installed a new modem in our

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<v Speaker 1>computer and showed me his company's website.

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<v Speaker 13>The light bulb went on.

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<v Speaker 6>The first person to cash in on the Internet's potential

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<v Speaker 6>as a marketing tool to sell their own sexualized images

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<v Speaker 6>online is a woman who goes by the name of

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<v Speaker 6>Danny Ash. Danny Ash has amateur appeal. She sells herself

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<v Speaker 6>as just a regular girl who wants to share some

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<v Speaker 6>horny photos of herself off online for a reasonable fee.

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<v Speaker 6>This concept will eventually flood the Internet, but at first

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<v Speaker 6>it's just Danny Ash, her modem and her website, Danny's

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<v Speaker 6>hard drive.

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<v Speaker 1>I mean, the Internet is almost like a parallel universe.

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<v Speaker 1>It represents every possible human thought, feeling, in emotion, both

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<v Speaker 1>good and bad.

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<v Speaker 7>It's all there.

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<v Speaker 1>It's a mirror of us, and sometimes, you know, we

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<v Speaker 1>don't like to see what's there.

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<v Speaker 6>Danny Ash is born Leah Manzeri in Beaufort, South Carolina,

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<v Speaker 6>a capricorn, she uses a fake ID to start stripping

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<v Speaker 6>illegally at age seventeen in Seattle, Washington. When she's dancing

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<v Speaker 6>at strip clubs, she starts using the stage name danny Ash.

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<v Speaker 6>She has natural thirty two double f size breasts.

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<v Speaker 1>I guess I'm an exhibitionist, but that's not quite true.

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<v Speaker 1>Part of the reason is that I developed bread. It's

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<v Speaker 1>at an early age, and breasts are a very sexualized thing.

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<v Speaker 1>At an early age, I was getting a lot of

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<v Speaker 1>sexualized attention. Eventually, I just felt that stripping kind of

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<v Speaker 1>put all that stuff out on the table.

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<v Speaker 6>At age twenty two, danny Ash moves to La to

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<v Speaker 6>do lingerie modeling and shoot softcore. She continues to do

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<v Speaker 6>exotic dancing and strip clubs across the country. On a

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<v Speaker 6>tour date in Jacksonville, Florida, she's encouraged by one strip

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<v Speaker 6>club's owners to dance fully topless, then busted by cops

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<v Speaker 6>for violating local laws. It's a setup. She's arrested in

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<v Speaker 6>Florida for prohibited conduct and fined fifty bucks with a

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<v Speaker 6>guilty plea after the club's owners and her tour booking

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<v Speaker 6>agent hang her out to dry on the toplessness charges.

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<v Speaker 6>Danny decides she needs a career change where she can

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<v Speaker 6>have more personal control. She wants to become a computer programmer.

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<v Speaker 4>I'm a bit of a geek.

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<v Speaker 15>Yeah, I'm a geek with big breasts.

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<v Speaker 6>Danny starts going on usenet newsgroups, a precursor to Internet forums.

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<v Speaker 6>Some of her softcore picks have been posted on usenet,

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<v Speaker 6>and she interacts there online with new fans. Danny's husband

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<v Speaker 6>works for the movie theater chain Landmark, and shows her

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<v Speaker 6>the brand new Landmark Theater's website, which lists up to

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<v Speaker 6>date information about what movies are playing at Wich theaters

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<v Speaker 6>and when they're showing. Listing movie show times was previously

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<v Speaker 6>the purview of local newspapers, and a toll free number

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<v Speaker 6>called Movie Phone. You called to hear a man's pre

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<v Speaker 6>recorded voice tell you when Polly Shores Jury Duty is

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<v Speaker 6>showing in Van Nuys. The Landmark Theatre's website and the

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<v Speaker 6>usnet newsgroups light up a big neon sign over Danny's head.

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<v Speaker 6>There's a new way she can sell and provide personalized

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<v Speaker 6>but limited access to herself. She won't have to work

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<v Speaker 6>at shady strip clubs for owners that sell dancers out

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<v Speaker 6>to the cops for a kickback. She won't have to

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<v Speaker 6>be around customers physically at all. She will start a website.

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<v Speaker 6>Danny ash reads an HTML manual and teaches herself rudimentary coding.

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<v Speaker 6>In July of nineteen ninety five, she launches a website

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<v Speaker 6>at Danny dot com called Danny's hard Drive, where she

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<v Speaker 6>posts daily news articles and jokes. There's no paywall at first,

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<v Speaker 6>just info about where to send fan mail or where

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<v Speaker 6>to see Danny dance on tour. Then she starts charging

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<v Speaker 6>fifteen bucks a month for membership. The main draw is

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<v Speaker 6>an online directory of adult models with their own photo

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<v Speaker 6>web pages, anchored by content of Danny and her double

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<v Speaker 6>f breasts.

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<v Speaker 1>I think that the average visitor to Danny's hard Drive

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<v Speaker 1>is someone who's more of a fan, someone who's generally

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<v Speaker 1>interested in knowing about the women they have fantasies about,

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<v Speaker 1>wanting to have a more well rounded fantasy, a little

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<v Speaker 1>more reality in the information.

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<v Speaker 6>The site is so overloaded with traffic after launching that

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<v Speaker 6>the server shuts down and Danny dot com has to

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<v Speaker 6>move to its own server. In pioneering the business model

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<v Speaker 6>for selling sex on the internet, Danny also pioneers a

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<v Speaker 6>set of systems for doing so that she cashes in

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<v Speaker 6>on by selling the tech to other people.

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<v Speaker 1>Last year, Danny's hard Drive made six point five million dollars.

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<v Speaker 1>This year we expect to make eight million. We've had

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<v Speaker 1>to develop a lot of technology to support the business

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<v Speaker 1>of Danny's hard Drive, streaming video technology, hosting technologies, credit

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<v Speaker 1>card scrubbing technologies, processing customer service, and all of these

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<v Speaker 1>things are now working so well that they have value

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<v Speaker 1>to other companies, and we're beginning to market those technologies

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<v Speaker 1>to other companies, and that's actually the largest area of

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<v Speaker 1>growth in our business right now.

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<v Speaker 6>Danny ash self frands herself as the most downloaded woman

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<v Speaker 6>on the Internet. Her content is strictly softcore, which is

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<v Speaker 6>less profitable than hardcore, but falls within her own personal

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<v Speaker 6>comfort zone. She markets the site to lonely men who

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<v Speaker 6>want to engage with a beautiful woman through the Internet

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<v Speaker 6>who they could never talk to in real life, and

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<v Speaker 6>for that privilege she charges them.

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<v Speaker 1>I'm not a psychiatrist, but it seems to me the

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<v Speaker 1>more you repress your sexual feelings, the more they're going

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<v Speaker 1>to pop up somewhere else in a really unhealthy way.

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<v Speaker 1>In our culture, we repress a lot of sex, and

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<v Speaker 1>we repress our anger. And what you see coming out

0:14:44.960 --> 0:14:48.840
<v Speaker 1>is a lot of violent pornography. And you know, it's

0:14:48.920 --> 0:14:52.480
<v Speaker 1>my theory that that's a direct result of our culture's repression.

0:14:56.120 --> 0:15:00.080
<v Speaker 6>By nineteen ninety six, the Internet sexual revolution is well underway.

0:15:00.600 --> 0:15:02.880
<v Speaker 7>Just as VHS obliterated.

0:15:02.280 --> 0:15:05.720
<v Speaker 6>Film and remade the eighties porn landscape, it's clear that

0:15:05.760 --> 0:15:08.239
<v Speaker 6>the Internet will have a similar effect in the nineties.

0:15:08.920 --> 0:15:12.120
<v Speaker 6>And while adult creators and consumers are excited about the

0:15:12.120 --> 0:15:16.160
<v Speaker 6>new possibilities of the web, not everyone shares their excitement.

0:15:17.000 --> 0:15:20.040
<v Speaker 6>The idea of photos and videos showing naked people and

0:15:20.160 --> 0:15:24.680
<v Speaker 6>sexual content migrating online concerns a lot of folks who

0:15:24.800 --> 0:15:26.240
<v Speaker 6>worry that kids will see it.

0:15:28.360 --> 0:15:31.320
<v Speaker 16>There's no warning. You can gain access to any kind

0:15:31.360 --> 0:15:34.800
<v Speaker 16>of material without any preparation. A twelve year old could

0:15:34.800 --> 0:15:38.000
<v Speaker 16>have downloaded that same material. That's the part that really

0:15:38.040 --> 0:15:41.560
<v Speaker 16>scares me. Ray Solar, founder of Safeserf.

0:15:43.040 --> 0:15:46.080
<v Speaker 17>The most precious thing a child has is, of course,

0:15:46.480 --> 0:15:47.200
<v Speaker 17>their innocence.

0:15:48.200 --> 0:15:50.400
<v Speaker 13>Wendy Simpson Safe Surf.

0:15:53.480 --> 0:15:57.600
<v Speaker 6>San Fernando Valley couple Ray Solar and Wendy Simpson set

0:15:57.680 --> 0:16:02.080
<v Speaker 6>up the first restricted Internet browser called safe surf. Porn

0:16:02.280 --> 0:16:05.040
<v Speaker 6>isn't the only thing that people are worried will disseminate

0:16:05.120 --> 0:16:10.040
<v Speaker 6>unchecked online. There's also concern about hate speech, images of gore,

0:16:10.520 --> 0:16:14.440
<v Speaker 6>and easily accessible bomb making instructions, which you can find

0:16:14.520 --> 0:16:18.440
<v Speaker 6>at Easily Accessible bomb Making Instructions dot com.

0:16:18.600 --> 0:16:20.200
<v Speaker 7>Vivid David James.

0:16:19.800 --> 0:16:22.520
<v Speaker 6>Says he endorses a service like safe Surf, and that

0:16:22.600 --> 0:16:26.040
<v Speaker 6>he agrees children should not have access to Vivid's new

0:16:26.040 --> 0:16:29.800
<v Speaker 6>homepage Vivid dot com.

0:16:29.840 --> 0:16:31.800
<v Speaker 16>We're not saying we want you to stop what you're doing.

0:16:32.160 --> 0:16:34.480
<v Speaker 16>We want you to do it in a responsible way.

0:16:36.640 --> 0:16:41.160
<v Speaker 6>Online sexual content is frictionless and fluidless. It can be

0:16:41.200 --> 0:16:44.240
<v Speaker 6>accessed with one click of a mouse and closed with another.

0:16:45.040 --> 0:16:47.520
<v Speaker 6>The promise of a portal into a world of sex

0:16:47.560 --> 0:16:52.640
<v Speaker 6>that exists discreetly away from real life is well seductive,

0:16:53.640 --> 0:16:56.400
<v Speaker 6>But even when the window closes and the computer shuts down,

0:16:56.880 --> 0:17:01.600
<v Speaker 6>the web's tendrils still creep into offline life. One sided

0:17:01.680 --> 0:17:05.960
<v Speaker 6>transactional content consumption relationships of the kind offered by creators

0:17:06.000 --> 0:17:10.120
<v Speaker 6>like Danny Ash are neither real exactly nor fake exactly,

0:17:10.440 --> 0:17:15.520
<v Speaker 6>but a third thing called parasocial. While people have long

0:17:15.600 --> 0:17:20.760
<v Speaker 6>had parasocial relationships with celebrities, and fictional characters. The Internet

0:17:20.800 --> 0:17:24.320
<v Speaker 6>creates these kinds of interactions between real people online and

0:17:24.359 --> 0:17:28.520
<v Speaker 6>their customers or consumers. They develop a false sense of

0:17:28.560 --> 0:17:34.520
<v Speaker 6>knowing someone, but it's a one way mirror. When general

0:17:34.560 --> 0:17:39.760
<v Speaker 6>world returns, the Internet changes the world of adult content forever.

0:17:48.840 --> 0:17:50.479
<v Speaker 6>Welcome back to general World.

0:17:56.600 --> 0:17:59.879
<v Speaker 18>The issue of privacy is huge. The online sex industry

0:17:59.920 --> 0:18:02.160
<v Speaker 18>is promise is you don't have to be peewee Herman,

0:18:02.760 --> 0:18:05.639
<v Speaker 18>and we're in the age of aids. The websites are

0:18:05.680 --> 0:18:10.400
<v Speaker 18>amazing safe sex, Alison Grippo, author of Netlove.

0:18:12.800 --> 0:18:15.879
<v Speaker 6>By the mid nineties, the Internet is still just a

0:18:15.920 --> 0:18:19.280
<v Speaker 6>tiny slice of the adult money pie. The bulk of

0:18:19.320 --> 0:18:23.159
<v Speaker 6>the sex businesses eight billion dollars in sales, still comes

0:18:23.160 --> 0:18:27.800
<v Speaker 6>from videotapes, magazines, peep shows, and softcore cable programming on

0:18:27.880 --> 0:18:33.240
<v Speaker 6>channels like Playboy and Spice, But the Internet is growing rapidly.

0:18:34.359 --> 0:18:37.639
<v Speaker 6>By nineteen ninety six, the online sector is netting around

0:18:37.720 --> 0:18:41.000
<v Speaker 6>fifty one point five million dollars, with projections of two

0:18:41.160 --> 0:18:43.080
<v Speaker 6>hundred million by nineteen ninety seven.

0:18:45.440 --> 0:18:47.720
<v Speaker 19>We have customers who spend one hundred and fifty dollars

0:18:47.720 --> 0:18:51.440
<v Speaker 19>a month up to six thousand. That's twenty hours a month.

0:18:52.240 --> 0:18:57.399
<v Speaker 19>They fall in love. Barbara Bailey, owner of videophone sex

0:18:57.440 --> 0:18:58.960
<v Speaker 19>site Pleasure Girls.

0:19:00.880 --> 0:19:03.760
<v Speaker 6>Danny ash and others like her, clock early on that

0:19:03.800 --> 0:19:06.800
<v Speaker 6>the Internet is quickly going to surpass all other forms

0:19:06.840 --> 0:19:09.520
<v Speaker 6>of media. They're getting in on the ground floor of

0:19:09.560 --> 0:19:12.480
<v Speaker 6>the next gold rush, racing to see who can get

0:19:12.480 --> 0:19:16.680
<v Speaker 6>adult content online first, for what's being called hyper porn.

0:19:17.880 --> 0:19:21.760
<v Speaker 6>But there's already an established precedent for the internet's sex business,

0:19:22.320 --> 0:19:28.640
<v Speaker 6>a small, but concentrated, financially robust, subterranean cultural industry known

0:19:28.760 --> 0:19:31.359
<v Speaker 6>as audio text or phone sex.

0:19:33.359 --> 0:19:36.440
<v Speaker 4>What is the net. It's just a phone call with pictures,

0:19:37.440 --> 0:19:40.840
<v Speaker 4>Tim Elliott, president of the Teleservices Industry Association.

0:19:48.040 --> 0:19:51.760
<v Speaker 20>Phone sex was the first leap into interactivity. It's interactive

0:19:51.760 --> 0:19:55.080
<v Speaker 20>in a way that video could never be. Everybody's moving

0:19:55.119 --> 0:19:59.000
<v Speaker 20>to computers, but it's the same group of people. Stephanie

0:19:59.040 --> 0:20:01.240
<v Speaker 20>Martin Babes for you website.

0:20:03.200 --> 0:20:06.679
<v Speaker 6>The phone sex industry is pioneered by Gloria Leonard, the

0:20:06.720 --> 0:20:09.960
<v Speaker 6>pornstar and High Society magazine editor we told you about

0:20:10.000 --> 0:20:15.000
<v Speaker 6>in episode two, Gloria Leonard tapes herself describing the contents

0:20:15.040 --> 0:20:17.840
<v Speaker 6>of the next issue of High Society as a recorded

0:20:17.880 --> 0:20:20.680
<v Speaker 6>message that can only be accessed by calling a nine

0:20:20.720 --> 0:20:25.040
<v Speaker 6>to seven six pay number. She realizes that charging people

0:20:25.119 --> 0:20:28.320
<v Speaker 6>to hear dirty talk could become its own profit stream,

0:20:28.560 --> 0:20:32.600
<v Speaker 6>like an audio peep show. She tells her boss, Carl Rudermann,

0:20:32.720 --> 0:20:35.879
<v Speaker 6>that they should buy pay phone numbers for these dirty

0:20:35.880 --> 0:20:40.040
<v Speaker 6>talk hotlines and then advertise them in high societies back pages.

0:20:41.160 --> 0:20:44.600
<v Speaker 6>Phone sex lines take the interactivity of peep shows and

0:20:44.640 --> 0:20:48.439
<v Speaker 6>cut out the physical component. Some operators follow a script,

0:20:48.480 --> 0:20:51.760
<v Speaker 6>but there's a lot of room for improvisation. Phone sex

0:20:51.800 --> 0:20:56.200
<v Speaker 6>calls tend to end abruptly when the caller finishes. In

0:20:56.240 --> 0:20:58.880
<v Speaker 6>New York, there's a couple of companies running conference call

0:20:58.920 --> 0:21:02.439
<v Speaker 6>hotlines like five five O Love out of offices in

0:21:02.480 --> 0:21:07.159
<v Speaker 6>Manhattan Brownstones. But the biggest phone sex tycoon is a

0:21:07.200 --> 0:21:12.280
<v Speaker 6>guy named Joel Eisenberg in the city of Seattle. Eisenberg's company,

0:21:12.359 --> 0:21:17.480
<v Speaker 6>called Megaquest, controls eighty two entities providing phone sex lines worldwide.

0:21:18.760 --> 0:21:22.520
<v Speaker 6>Joel Eisenberg is notorious for other non sex hotlines, like

0:21:22.560 --> 0:21:26.160
<v Speaker 6>the nineteen eighty nine Dial a Santa scam, where Megaquest

0:21:26.240 --> 0:21:30.480
<v Speaker 6>ran local infomercials on Seattle TV stations telling children to

0:21:30.520 --> 0:21:33.359
<v Speaker 6>call a hotline posted on screen to talk to Santa

0:21:33.400 --> 0:21:35.760
<v Speaker 6>Claus directly about their Christmas wishes.

0:21:36.720 --> 0:21:38.480
<v Speaker 7>A good number of kids.

0:21:38.040 --> 0:21:41.159
<v Speaker 6>Managed to call in and rack up their parents' phone bills.

0:21:42.320 --> 0:21:45.600
<v Speaker 6>Despite getting busted by the IRS in the early nineties,

0:21:46.000 --> 0:21:51.120
<v Speaker 6>Megaquest continues to thrive and Joel's son Ian Eisenberg, takes

0:21:51.200 --> 0:21:55.520
<v Speaker 6>up working there too. But the Eisenberg phone sex dynasty

0:21:56.000 --> 0:22:01.280
<v Speaker 6>will be usurped by an ambitious, cutthroat young interloper. His

0:22:01.440 --> 0:22:03.280
<v Speaker 6>name is Seth Warshovski.

0:22:05.760 --> 0:22:09.160
<v Speaker 5>Look at Viacom, Time Warner or the contents of Cablevision.

0:22:09.600 --> 0:22:11.679
<v Speaker 5>All of them derive a huge amount of revenue from

0:22:11.720 --> 0:22:15.400
<v Speaker 5>adult content, but they don't call Time Warner smut.

0:22:16.800 --> 0:22:21.320
<v Speaker 6>Seth Warshovski an Ares is born in Queens, New York,

0:22:21.600 --> 0:22:25.280
<v Speaker 6>the son of two Polish Jews. His father sells cable

0:22:25.320 --> 0:22:28.720
<v Speaker 6>and his mother works in the insurance industry. When Seth

0:22:28.880 --> 0:22:31.560
<v Speaker 6>is seven years old, his family moves from New York

0:22:31.640 --> 0:22:35.679
<v Speaker 6>to Seattle. At age thirteen, Seth starts running an online

0:22:35.720 --> 0:22:40.280
<v Speaker 6>bulletin board called dungeon Quest. Dungeon Quest's users pay him

0:22:40.320 --> 0:22:44.720
<v Speaker 6>to access online adventure quest games. He says he charged

0:22:44.840 --> 0:22:47.399
<v Speaker 6>two dollars a month for a membership and made around

0:22:47.440 --> 0:22:51.360
<v Speaker 6>two hundred dollars a month. Watching TV late at night

0:22:51.440 --> 0:22:54.800
<v Speaker 6>at his parents' house in the Seattle suburbs, seth Wwarshovski

0:22:54.880 --> 0:22:57.920
<v Speaker 6>sees a thirty minute infomercial for one of mega Quest's

0:22:58.040 --> 0:23:03.200
<v Speaker 6>phone sex hotlines. Now seventeen years old, Warshovsky is too

0:23:03.280 --> 0:23:06.240
<v Speaker 6>young to legally call the number himself, but the whole

0:23:06.280 --> 0:23:09.879
<v Speaker 6>thing makes a huge impression on him. Visions of dollar

0:23:09.960 --> 0:23:12.840
<v Speaker 6>signs and sex hotlines start to dance in his head.

0:23:13.920 --> 0:23:16.320
<v Speaker 6>Seth Wwarshovski drops out of high school and moves out

0:23:16.359 --> 0:23:18.920
<v Speaker 6>of his parents' subourban home to an apartment in Seattle,

0:23:19.000 --> 0:23:21.520
<v Speaker 6>where he works as a valet and side hustle, selling

0:23:21.560 --> 0:23:25.720
<v Speaker 6>hand embroidered shirts to local stores and nordstrums. He tells

0:23:25.760 --> 0:23:27.560
<v Speaker 6>people that he just wanted to go out and make

0:23:27.600 --> 0:23:30.480
<v Speaker 6>his own fortune, but later admits that he ran away

0:23:30.480 --> 0:23:34.639
<v Speaker 6>from home after coppying juvenile charges for unlawful issuance of

0:23:34.680 --> 0:23:38.000
<v Speaker 6>a bank check and two counts of felony theft. In

0:23:38.080 --> 0:23:40.880
<v Speaker 6>nineteen ninety three, he gets charged as an adult when

0:23:40.920 --> 0:23:43.320
<v Speaker 6>he's caught trying to sell a stolen laptop.

0:23:46.720 --> 0:23:49.960
<v Speaker 5>I was always fascinated by Ian. I always wanted to

0:23:49.960 --> 0:23:50.960
<v Speaker 5>try to reach his level.

0:23:53.240 --> 0:23:56.040
<v Speaker 6>By the early nineties, phone sex is a sixty million

0:23:56.080 --> 0:24:01.520
<v Speaker 6>dollars a year industry. Sethwarshovsky befriends Ean Eisenberg, who brings

0:24:01.600 --> 0:24:05.000
<v Speaker 6>him in to start learning the phone sex biz. Eanc

0:24:05.280 --> 0:24:08.240
<v Speaker 6>Seth has no threat to the megaquest father Son phone

0:24:08.280 --> 0:24:11.200
<v Speaker 6>sex Empire. He just thinks Seth is interested in the

0:24:11.280 --> 0:24:14.879
<v Speaker 6>nuts and bolts. He doesn't realize he is training his

0:24:15.000 --> 0:24:19.760
<v Speaker 6>own replacement. Sethwarshovski takes out a credit card and runs

0:24:19.840 --> 0:24:21.960
<v Speaker 6>up a seven thousand dollars line of credit that he

0:24:22.080 --> 0:24:26.800
<v Speaker 6>uses to start a hotline company called JNS Communications. Their

0:24:26.840 --> 0:24:30.400
<v Speaker 6>first official hotline is one nine hundred Get Some.

0:24:32.359 --> 0:24:33.560
<v Speaker 4>I still have that number.

0:24:35.640 --> 0:24:39.480
<v Speaker 6>The technology is primitive at first. One nine hundred Gets

0:24:39.520 --> 0:24:42.400
<v Speaker 6>Some leads callers to an answering machine service where they

0:24:42.400 --> 0:24:45.719
<v Speaker 6>have to state credit card info. This sends an alert

0:24:45.800 --> 0:24:49.720
<v Speaker 6>to Sethwarshovski's pager. Once their credit card has been run,

0:24:49.960 --> 0:24:52.560
<v Speaker 6>the customer gets a callback from a dirty talking female

0:24:52.600 --> 0:24:56.639
<v Speaker 6>phone sex operator. One nine hundred Gets Some charges forty

0:24:56.640 --> 0:24:59.840
<v Speaker 6>bucks per sexy phone call and gets about sixty customers

0:25:00.119 --> 0:25:04.399
<v Speaker 6>data start, which then rockets up to five hundred customers daily.

0:25:06.240 --> 0:25:09.719
<v Speaker 6>He starts up more companies in LA and Canada with

0:25:09.840 --> 0:25:14.480
<v Speaker 6>names like telecom development company running hotlines for long distance

0:25:14.560 --> 0:25:17.240
<v Speaker 6>calls and psychics as well as sex.

0:25:19.440 --> 0:25:21.359
<v Speaker 4>One of our psychics is a transsexual.

0:25:21.760 --> 0:25:23.639
<v Speaker 5>She says, we can't put her in the same space

0:25:23.680 --> 0:25:26.119
<v Speaker 5>as all the other girls because she can't handle the energy.

0:25:26.640 --> 0:25:28.600
<v Speaker 5>It's going to interfere with her psychic vives?

0:25:28.680 --> 0:25:29.359
<v Speaker 4>Is that what it is?

0:25:31.600 --> 0:25:35.919
<v Speaker 6>As Warshowsky's phone sex empire grows and profits millions, he

0:25:36.119 --> 0:25:39.080
<v Speaker 6>ends up locked in lawsuits with the Eisenberg family over

0:25:39.119 --> 0:25:43.080
<v Speaker 6>a call automation system Megaquest says is proprietary.

0:25:44.240 --> 0:25:45.160
<v Speaker 7>The phone sex.

0:25:44.960 --> 0:25:48.040
<v Speaker 6>Hotline gold Rush hits a snag in nineteen ninety five

0:25:48.359 --> 0:25:51.479
<v Speaker 6>when the Federal Communications Commission bans a type of number

0:25:51.840 --> 0:25:54.879
<v Speaker 6>called ten triple X that guys like Warshovsky used to

0:25:54.920 --> 0:25:59.800
<v Speaker 6>scam callers. Ten triple X numbers root calls through countries

0:25:59.800 --> 0:26:03.800
<v Speaker 6>like Guiana in order to ring up large international bills.

0:26:04.480 --> 0:26:08.280
<v Speaker 6>After nineteen ninety five, hotlines are limited to eight hundred

0:26:08.320 --> 0:26:11.920
<v Speaker 6>and nine hundred numbers where customers have to manually enter

0:26:12.000 --> 0:26:15.720
<v Speaker 6>credit card info, which gives callers crucial extra time to

0:26:15.760 --> 0:26:20.480
<v Speaker 6>back out of the transaction and so Sethwarshowski takes his

0:26:20.560 --> 0:26:24.840
<v Speaker 6>business to the next media frontier online.

0:26:26.400 --> 0:26:28.159
<v Speaker 5>That's what it's going to take to make money on

0:26:28.200 --> 0:26:31.240
<v Speaker 5>the net, ease of use and instant gratification.

0:26:33.400 --> 0:26:37.560
<v Speaker 6>Seth tries out early video conferencing technology called CEU see me,

0:26:37.960 --> 0:26:44.080
<v Speaker 6>whose main client is the US military. See uc me sucks,

0:26:44.720 --> 0:26:49.080
<v Speaker 6>It's laggy and low quality. Then he sees an erotic

0:26:49.119 --> 0:26:52.480
<v Speaker 6>website called Sizzle that hosts a video livestream of a

0:26:52.560 --> 0:26:54.800
<v Speaker 6>Vancouver strip club that you pay to watch.

0:26:56.880 --> 0:26:58.000
<v Speaker 4>It was unbelievable.

0:26:58.280 --> 0:27:00.639
<v Speaker 5>This was not just phone sex, This was not just

0:27:00.720 --> 0:27:04.200
<v Speaker 5>Hustler magazine, This was not just video six. This was

0:27:04.280 --> 0:27:07.679
<v Speaker 5>all of it in one, a true multimedia experience that

0:27:07.800 --> 0:27:10.719
<v Speaker 5>encompasses every facet of entertainment.

0:27:11.080 --> 0:27:12.840
<v Speaker 4>I'd never seen anything like it.

0:27:14.880 --> 0:27:19.600
<v Speaker 6>So Sethwarshovski gets a meeting with Starnet Communications International, the

0:27:19.640 --> 0:27:23.040
<v Speaker 6>Canadian company behind Sizzle, where he asks them a lot

0:27:23.080 --> 0:27:25.000
<v Speaker 6>of very detailed questions.

0:27:26.680 --> 0:27:28.840
<v Speaker 21>We gave him a full rundown on what our net

0:27:28.880 --> 0:27:31.680
<v Speaker 21>business was like, and he decided to do it himself.

0:27:32.359 --> 0:27:34.720
<v Speaker 21>We were not too thrilled with how things ended up.

0:27:35.359 --> 0:27:37.040
<v Speaker 21>Jason King, Starnet.

0:27:38.680 --> 0:27:39.920
<v Speaker 4>We couldn't come to terms.

0:27:40.359 --> 0:27:43.560
<v Speaker 5>We wanted to take an extremely aggressive approach to the net,

0:27:43.760 --> 0:27:46.119
<v Speaker 5>to take a high risk and see what came back.

0:27:46.800 --> 0:27:49.199
<v Speaker 5>I think we scared them, so we decided to copy

0:27:49.400 --> 0:27:50.880
<v Speaker 5>or knock off what they were.

0:27:50.680 --> 0:27:53.560
<v Speaker 4>Doing, and we took it to a whole new level.

0:27:55.600 --> 0:27:59.560
<v Speaker 6>Sethwarshovsky puts three million dollars into a new business venture

0:27:59.640 --> 0:28:04.280
<v Speaker 6>that he calls Internet Entertainment Group aka IEG.

0:28:05.600 --> 0:28:07.480
<v Speaker 7>IIG has two high.

0:28:07.280 --> 0:28:11.439
<v Speaker 6>Speed T three Internet connections, twenty six servers, and forty

0:28:11.480 --> 0:28:16.840
<v Speaker 6>eight PC computers. IG's first venture is a camgirl site

0:28:16.880 --> 0:28:21.760
<v Speaker 6>originally called Candyland until they get sued by Hasbro, makers

0:28:21.840 --> 0:28:26.719
<v Speaker 6>of the children's board game Candyland. Warshovsky buys a warehouse

0:28:26.760 --> 0:28:30.240
<v Speaker 6>in downtown Seattle by the waterfront and converts it into

0:28:30.359 --> 0:28:35.280
<v Speaker 6>a studio for IEG. After the Hasbro copyright infringement suit,

0:28:35.680 --> 0:28:41.680
<v Speaker 6>Candyland dot Com rebrands as Clublove dot Com. IG hires

0:28:41.720 --> 0:28:45.360
<v Speaker 6>eight graphic designers and three computer programmers who work on

0:28:45.440 --> 0:28:51.560
<v Speaker 6>compression techniques, while IEG's twenty customer service representatives work customers

0:28:51.640 --> 0:28:55.360
<v Speaker 6>over the phone to coax credit card numbers out of them.

0:28:55.920 --> 0:28:59.880
<v Speaker 6>Seth starts another new company called Interfund Financial Services that

0:29:00.080 --> 0:29:03.120
<v Speaker 6>in cryp's credit card charges so they don't appear on statements.

0:29:03.320 --> 0:29:06.320
<v Speaker 6>Since shame and privacy are a major hurdle for getting

0:29:06.320 --> 0:29:09.760
<v Speaker 6>people to buy adult services online.

0:29:10.000 --> 0:29:12.400
<v Speaker 5>If you're going to take money from somebody, you want

0:29:12.440 --> 0:29:14.720
<v Speaker 5>to make it the easiest thing in the world.

0:29:16.480 --> 0:29:20.680
<v Speaker 6>Warshovsky's partner in IIG is a woman named Ruth Parasol,

0:29:21.040 --> 0:29:24.240
<v Speaker 6>a Californian child of a Swedish mother and a Jewish

0:29:24.240 --> 0:29:29.240
<v Speaker 6>Polish Holocaust survivor father named Richard Parasol. Her parents ran

0:29:29.400 --> 0:29:33.320
<v Speaker 6>a successful chain of massage parlors in San Francisco's Tenderloin

0:29:33.400 --> 0:29:36.600
<v Speaker 6>red Light district in the seventies and then invested into

0:29:36.600 --> 0:29:41.080
<v Speaker 6>phone sex lines. Ruth Parasol grew up in Marin County,

0:29:41.320 --> 0:29:44.160
<v Speaker 6>went to law school, and then got into the family

0:29:44.200 --> 0:29:48.160
<v Speaker 6>business of phone sex. In nineteen ninety six, Ruth Parasol

0:29:48.400 --> 0:29:52.560
<v Speaker 6>sells her interest in IIG to Warshovski and moves into

0:29:52.640 --> 0:29:57.760
<v Speaker 6>another lucrative new business sector, online gambling, starting a website

0:29:57.840 --> 0:30:06.560
<v Speaker 6>called pardipoker dot com. While many in tech nineteen nineties

0:30:06.600 --> 0:30:10.080
<v Speaker 6>gold Rush are promising they'll soon be able to deliver fast,

0:30:10.280 --> 0:30:14.560
<v Speaker 6>high quality video streaming technology for video conferencing, it's in

0:30:14.600 --> 0:30:18.560
<v Speaker 6>the adult entertainment sector where that tech is developed first,

0:30:18.680 --> 0:30:22.440
<v Speaker 6>and best IEG has the thing the rest of the

0:30:22.480 --> 0:30:27.920
<v Speaker 6>Internet desires most. Streaming live video it may be glitchy

0:30:28.000 --> 0:30:31.600
<v Speaker 6>and slow, but it has naked women, and it's accessible

0:30:31.640 --> 0:30:34.400
<v Speaker 6>through the touch of a button. The future that was

0:30:34.440 --> 0:30:35.760
<v Speaker 6>promised by computers.

0:30:37.680 --> 0:30:42.120
<v Speaker 3>The adult firms are simply more willing to try new technologies.

0:30:43.120 --> 0:30:43.600
<v Speaker 4>Mark H.

0:30:43.680 --> 0:30:50.680
<v Speaker 6>Bell Bell Technology, Bell Technology, who provide video services for

0:30:50.800 --> 0:30:55.600
<v Speaker 6>Microsoft and General Electrics NBC Network beta test new technology

0:30:55.800 --> 0:31:01.160
<v Speaker 6>with adult companies. Penthouse tests and experiment new software with

0:31:01.240 --> 0:31:06.320
<v Speaker 6>live online video channels whose layout mimics cable TVs. Playboy

0:31:06.360 --> 0:31:09.080
<v Speaker 6>has been selling a digital version of their print magazine

0:31:09.120 --> 0:31:12.280
<v Speaker 6>since nineteen eighty seven, but struggles to compete with the

0:31:12.320 --> 0:31:17.080
<v Speaker 6>new web companies like IEG, so Playboy leans into its

0:31:17.120 --> 0:31:22.280
<v Speaker 6>signature formula gauzy, softcore photos of naked chicks with smart

0:31:22.280 --> 0:31:26.400
<v Speaker 6>women working behind the scenes, women like Eileen Kent, who

0:31:26.400 --> 0:31:30.520
<v Speaker 6>becomes Playboy's first Vice president of New Media. Kent is

0:31:30.560 --> 0:31:33.440
<v Speaker 6>an early adopter of new technology who sets up a

0:31:33.440 --> 0:31:36.640
<v Speaker 6>bulletin board system for the Playboy staff and helps to

0:31:36.720 --> 0:31:41.479
<v Speaker 6>shepherd the magazine's move online. Playboy holds a publicity stunt

0:31:41.520 --> 0:31:45.640
<v Speaker 6>model call for a feature called Girls of the Net.

0:31:46.640 --> 0:31:49.680
<v Speaker 13>We don't just appeal to the libido, we appeal to

0:31:49.720 --> 0:31:52.960
<v Speaker 13>the intellect. We are looking for women who know how

0:31:52.960 --> 0:31:56.960
<v Speaker 13>to use computers, who're working on their careers, rather than

0:31:57.040 --> 0:32:01.200
<v Speaker 13>objectifying women like some people say we do. The Internet

0:32:01.240 --> 0:32:04.160
<v Speaker 13>stands for freedom, and the philosophy of the Internet is

0:32:04.200 --> 0:32:09.400
<v Speaker 13>the same as the Playboy philosophy. Eileen Kent Playboy.

0:32:10.960 --> 0:32:13.600
<v Speaker 6>Much like Stephen Hirsch thought would happen with the rise

0:32:13.640 --> 0:32:17.280
<v Speaker 6>of video. Eileen Kent believes that the anonymity allowed by

0:32:17.280 --> 0:32:21.000
<v Speaker 6>the Internet will bring a new audience of women to Playboy.

0:32:21.160 --> 0:32:22.640
<v Speaker 7>While there is a stigma.

0:32:22.320 --> 0:32:26.080
<v Speaker 6>Associated with buying a dirty magazine or renting a porno tape,

0:32:26.440 --> 0:32:30.520
<v Speaker 6>the Internet is an ultra private, seeming place emphasis on

0:32:30.680 --> 0:32:35.840
<v Speaker 6>seeming to look at horny images. Eileen Kent is also

0:32:35.960 --> 0:32:40.240
<v Speaker 6>the brains behind Playboy launching an official glossy magazine website

0:32:40.280 --> 0:32:43.640
<v Speaker 6>at playboy dot com and a secondary website just for

0:32:43.720 --> 0:32:48.680
<v Speaker 6>paywalled adult content at cyber dot playboy dot com. There's

0:32:48.760 --> 0:32:52.760
<v Speaker 6>also the cyber Club, in reference to Hugh Haffner's Playboy Club,

0:32:53.240 --> 0:32:55.800
<v Speaker 6>a message board where you can talk about and maybe

0:32:55.840 --> 0:33:00.120
<v Speaker 6>even two the beautiful playmates from the magazine.

0:33:00.920 --> 0:33:03.880
<v Speaker 13>What Playboy has always done is to teach men how

0:33:03.920 --> 0:33:07.760
<v Speaker 13>to behave around women, which boils down to don't be

0:33:07.800 --> 0:33:12.480
<v Speaker 13>a jerk. Women love to talk and offer counterpoint. Now

0:33:12.600 --> 0:33:15.080
<v Speaker 13>we're offering them the tools to speak their minds.

0:33:18.480 --> 0:33:21.520
<v Speaker 6>The first major attempt to legally regulate content on the

0:33:21.560 --> 0:33:26.080
<v Speaker 6>Internet is the Communications Decency Act, part of the Telecommunications

0:33:26.120 --> 0:33:30.080
<v Speaker 6>Act of nineteen ninety six. The CDA would criminalize the

0:33:30.120 --> 0:33:34.400
<v Speaker 6>transmission of obscene material to minors, but nineteen ninety seven's

0:33:34.480 --> 0:33:38.400
<v Speaker 6>landmark Reno Versus American Civil Liberties Union Supreme Court decision

0:33:38.640 --> 0:33:42.800
<v Speaker 6>rules unanimously that the Communications Decency Act would violate First

0:33:42.800 --> 0:33:46.480
<v Speaker 6>Amendment protections of free speech. It is the first major

0:33:46.600 --> 0:33:51.080
<v Speaker 6>Supreme Court ruling on Internet content regulation and a tremendous

0:33:51.120 --> 0:33:52.400
<v Speaker 6>win for pornographers.

0:33:55.120 --> 0:33:56.640
<v Speaker 4>You never really lose.

0:33:57.160 --> 0:33:59.960
<v Speaker 5>It's cheaper to produce than mainstream content, and it's easy

0:34:00.200 --> 0:34:00.600
<v Speaker 5>to sell.

0:34:02.720 --> 0:34:06.160
<v Speaker 6>By nineteen ninety seven, Seth Warshovski is twenty four and

0:34:06.280 --> 0:34:10.040
<v Speaker 6>making twenty million bucks a year from IEG's pay sites

0:34:10.200 --> 0:34:13.799
<v Speaker 6>hosting some of the first camgirls who strip and masturbate

0:34:13.880 --> 0:34:17.680
<v Speaker 6>on camera. Low res as they might be, the streams

0:34:17.719 --> 0:34:22.839
<v Speaker 6>are immediate and somewhat interactive. By nineteen ninety seven, there

0:34:22.880 --> 0:34:26.480
<v Speaker 6>are twenty eight thousand sex websites. According to one survey

0:34:26.520 --> 0:34:30.680
<v Speaker 6>of the new industry, Some of them sell explicit videos

0:34:30.800 --> 0:34:34.320
<v Speaker 6>or stills, but it also counts stuff like free erotica

0:34:34.360 --> 0:34:37.360
<v Speaker 6>stories and a bulletin board site developed by a computer

0:34:37.440 --> 0:34:42.520
<v Speaker 6>programmer in Houston called the Masturbation Homepage where commenters share

0:34:42.640 --> 0:34:47.360
<v Speaker 6>anonymous stories about masturbating. By nineteen ninety seven, it is

0:34:47.560 --> 0:34:51.719
<v Speaker 6>estimated that approximately thirty percent of people who use computers

0:34:52.000 --> 0:34:54.160
<v Speaker 6>have used them to look at some form of adult

0:34:54.200 --> 0:34:55.399
<v Speaker 6>content online.

0:34:57.400 --> 0:35:00.160
<v Speaker 4>With sex, you're hitting a few key areas. Number one one,

0:35:00.560 --> 0:35:01.440
<v Speaker 4>it's anonymous.

0:35:01.760 --> 0:35:05.600
<v Speaker 5>Number two, everybody has a desire for it, everybody.

0:35:06.000 --> 0:35:08.920
<v Speaker 4>Number three it's a very impulsive.

0:35:08.320 --> 0:35:11.319
<v Speaker 5>Purchase, and you provide them with an immediate delivery so

0:35:11.400 --> 0:35:12.920
<v Speaker 5>they can gratify their desire.

0:35:15.520 --> 0:35:19.000
<v Speaker 6>But while eyes are moving online, they are not necessarily

0:35:19.040 --> 0:35:23.399
<v Speaker 6>followed by wallets. Most late nineties adult websites can only

0:35:23.440 --> 0:35:27.560
<v Speaker 6>monetize nickel and dimes off of ad banner clicks. Only

0:35:27.600 --> 0:35:32.080
<v Speaker 6>a handful of people like Danny ash and Sethwarshovski are

0:35:32.120 --> 0:35:36.719
<v Speaker 6>making real money from hard content sales. By nineteen ninety seven,

0:35:36.800 --> 0:35:40.640
<v Speaker 6>online sexual revenue numbers range somewhere between one hundred million

0:35:41.080 --> 0:35:45.160
<v Speaker 6>and three billion dollars, which is a very wide spread.

0:35:46.280 --> 0:35:51.160
<v Speaker 6>One thing's for sure, they are climbing astronomically, and traditional

0:35:51.200 --> 0:35:55.680
<v Speaker 6>porn studios like Vivid are watching cautiously to see how

0:35:55.680 --> 0:35:57.120
<v Speaker 6>the legality shakes out.

0:35:58.960 --> 0:36:00.719
<v Speaker 12>We feel that at some point there will be legal

0:36:00.800 --> 0:36:04.000
<v Speaker 12>action taken against the US based site that shares hardcore material.

0:36:04.440 --> 0:36:06.960
<v Speaker 12>We're a high profile company. We'll have to see what

0:36:07.000 --> 0:36:09.399
<v Speaker 12>happens with some of the people who take that shut.

0:36:10.840 --> 0:36:13.839
<v Speaker 22>What we're doing is providing entertainment that is protected by

0:36:13.840 --> 0:36:17.080
<v Speaker 22>the First Amendment. We're adhering to capitalist principles and a

0:36:17.120 --> 0:36:21.080
<v Speaker 22>strict construction of the Constitution. I don't see a problem

0:36:21.120 --> 0:36:24.239
<v Speaker 22>with people doing business just to make money. That's what

0:36:24.400 --> 0:36:28.520
<v Speaker 22>business is. Derek Newman ieg.

0:36:30.800 --> 0:36:33.840
<v Speaker 6>And while they're already doing it in Europe, there's still

0:36:33.960 --> 0:36:38.600
<v Speaker 6>no hardcore sexual content online in America because companies fear

0:36:38.680 --> 0:36:43.400
<v Speaker 6>the potential legal repercussions. So in the late nineties, most

0:36:43.440 --> 0:36:48.240
<v Speaker 6>online sex content is limited to softcore Anthony Bourdain voice

0:36:48.280 --> 0:36:54.000
<v Speaker 6>no penetration, until a Florida company named Webpower, behind the

0:36:54.040 --> 0:36:58.520
<v Speaker 6>site Amateurhardcore dot Com, starts testing the limits of online

0:36:58.520 --> 0:37:02.759
<v Speaker 6>free speech by post allegedly amateur sex videos that show

0:37:03.000 --> 0:37:08.600
<v Speaker 6>real erections and full on penetration. A web usage tracker

0:37:08.680 --> 0:37:12.520
<v Speaker 6>says amateur hardcore dot com is the sixteenth most visited

0:37:12.520 --> 0:37:16.160
<v Speaker 6>website in nineteen ninety seven, way ahead of site views

0:37:16.200 --> 0:37:20.000
<v Speaker 6>for mainstream media companies like CNN dot com and Disney

0:37:20.040 --> 0:37:24.840
<v Speaker 6>dot com. The wars over Internet content and free speech

0:37:25.000 --> 0:37:28.640
<v Speaker 6>are progressing in American courts, and so far they are

0:37:28.680 --> 0:37:34.600
<v Speaker 6>tipping in favor of First Amendment protections for free speech online.

0:37:34.880 --> 0:37:38.280
<v Speaker 5>This is a high margin product that's in demand. People

0:37:38.320 --> 0:37:41.799
<v Speaker 5>want to pay top dollar for it. I don't mix

0:37:41.840 --> 0:37:45.400
<v Speaker 5>business with pleasure. The woman at the arcade that doesn't

0:37:45.440 --> 0:37:48.480
<v Speaker 5>excite me. When we first saw that phone sex commercial,

0:37:48.760 --> 0:37:51.360
<v Speaker 5>was like, hey, not only will we make a fortune,

0:37:51.440 --> 0:37:55.480
<v Speaker 5>but we'll meet tons of women dead lasted about a week.

0:37:56.000 --> 0:37:57.839
<v Speaker 4>It's just so normal for me now.

0:38:00.080 --> 0:38:04.040
<v Speaker 6>Twshovski's Clublove dot com website might not be an established

0:38:04.120 --> 0:38:07.200
<v Speaker 6>name like Penthouse or Playboy, but by the late nineties

0:38:07.239 --> 0:38:11.000
<v Speaker 6>IIG is way out earning the much bigger legacy brands.

0:38:11.680 --> 0:38:15.239
<v Speaker 6>IIG makes us secondary buck selling software packages to other

0:38:15.360 --> 0:38:18.160
<v Speaker 6>new adult sites because it's cheaper than sites paying for

0:38:18.239 --> 0:38:24.320
<v Speaker 6>production themselves. Because livecam technology is so new, it requires

0:38:24.360 --> 0:38:27.000
<v Speaker 6>putting a lot of money down for new equipment in

0:38:27.040 --> 0:38:30.640
<v Speaker 6>studios and has a digital learning curve, so a lot

0:38:30.640 --> 0:38:34.200
<v Speaker 6>of new companies outsource tech and troubleshooting to companies like

0:38:34.280 --> 0:38:40.200
<v Speaker 6>Danny Ashes or IIG. Stephen Hirsch contracts IIG to build

0:38:40.320 --> 0:38:44.240
<v Speaker 6>vivid dot COM's website for them.

0:38:44.440 --> 0:38:47.399
<v Speaker 12>Seth is a pioneer, he has a vision. He's very

0:38:47.440 --> 0:38:50.440
<v Speaker 12>talented and very creative, and in this industry there are

0:38:50.440 --> 0:38:51.520
<v Speaker 12>only a few people like that.

0:38:54.400 --> 0:38:59.040
<v Speaker 6>When General World returns, the Internet sex gold Rush goes

0:38:59.160 --> 0:39:16.239
<v Speaker 6>for Broke. Welcome back to General World. Internet Entertainment Group

0:39:16.320 --> 0:39:19.680
<v Speaker 6>also has cam boys whose live feeds appear on gay

0:39:19.719 --> 0:39:24.040
<v Speaker 6>adult websites like steel City and Vivid's gay imprint Vivid Man.

0:39:25.120 --> 0:39:28.320
<v Speaker 6>In addition to web companies grinding out a constant feed

0:39:28.440 --> 0:39:32.759
<v Speaker 6>of new original online content, there are also bootleg operations

0:39:32.800 --> 0:39:37.080
<v Speaker 6>posting galleries of digitally scanned images of centerfolds and porn stars.

0:39:37.719 --> 0:39:41.440
<v Speaker 6>This type of content stolen and posted in violation of

0:39:41.480 --> 0:39:47.640
<v Speaker 6>copyright laws is known as pirated content. IEG doesn't pirate,

0:39:47.920 --> 0:39:50.880
<v Speaker 6>but it double dips, selling the same camgirl feeds to

0:39:50.960 --> 0:39:54.520
<v Speaker 6>multiple sites at a time. The IEG cam feeds run

0:39:54.560 --> 0:39:58.440
<v Speaker 6>on sites with names like Buttsville and AlleyCats with a z.

0:40:00.000 --> 0:40:02.640
<v Speaker 6>AlleyCats is run by two guys who go by the

0:40:02.719 --> 0:40:06.839
<v Speaker 6>nicknames Kizzie and Cheese. AlleyCats is one of the first

0:40:06.880 --> 0:40:10.480
<v Speaker 6>sites to use pornstar's images as lures to draw clicks,

0:40:10.960 --> 0:40:14.040
<v Speaker 6>the very same way Showgirls were used to lure customers

0:40:14.040 --> 0:40:19.200
<v Speaker 6>into casinos to spend money. Kizzie and Cheese break fig

0:40:19.320 --> 0:40:23.240
<v Speaker 6>with Alley Cats after they add IEG's streams to the sites,

0:40:23.640 --> 0:40:26.839
<v Speaker 6>and their sudden financial windfall enables them to move into

0:40:26.880 --> 0:40:30.520
<v Speaker 6>a mansion in the Hollywood Hills. After making two million

0:40:30.560 --> 0:40:33.279
<v Speaker 6>dollars in nineteen ninety six, they sell off half the

0:40:33.320 --> 0:40:35.799
<v Speaker 6>company for a million bucks to some Beverly Hills real

0:40:35.920 --> 0:40:40.160
<v Speaker 6>estate developers. Kizzie and Cheese put that million into a

0:40:40.280 --> 0:40:44.840
<v Speaker 6>new website called Sportsbook, a sports gambling website based in Aruba.

0:40:46.160 --> 0:40:50.640
<v Speaker 6>Online gambling booms through extra legal loopholes, as internet porn

0:40:50.719 --> 0:40:54.799
<v Speaker 6>is also financially taking off. The world Wide Web is

0:40:54.840 --> 0:40:58.840
<v Speaker 6>the newest wild West, and there's gold in them bar Hills.

0:41:00.840 --> 0:41:03.160
<v Speaker 23>We intend to be a joyous nexus in the lives

0:41:03.160 --> 0:41:07.240
<v Speaker 23>of our users, and there's money in that. Steve Becker

0:41:07.640 --> 0:41:08.439
<v Speaker 23>Penthouse Live.

0:41:10.719 --> 0:41:14.799
<v Speaker 6>After a long negotiation Sethwarshovski signs a five year deal

0:41:14.840 --> 0:41:18.160
<v Speaker 6>with General Media, Inc. Who owned the Penthouse brand for

0:41:18.280 --> 0:41:21.520
<v Speaker 6>IEG to provide their live video services for the Penthouse

0:41:21.560 --> 0:41:26.799
<v Speaker 6>Live site. Sethwarshovsky sees this as IEG's first step into

0:41:26.840 --> 0:41:29.600
<v Speaker 6>the world of mainstream business.

0:41:30.960 --> 0:41:33.840
<v Speaker 23>We see ourselves evolving into a twenty four hour, multi

0:41:33.960 --> 0:41:38.800
<v Speaker 23>channel interactive broadcast facility that will include user generated channels

0:41:38.840 --> 0:41:41.480
<v Speaker 23>created on the fly, so you can create your own

0:41:41.640 --> 0:41:45.239
<v Speaker 23>live interactive channel by clicking on a button, just like

0:41:45.280 --> 0:41:48.960
<v Speaker 23>a chatroom on AOL. Today, the consumers are the content.

0:41:49.719 --> 0:41:52.680
<v Speaker 23>It's a very exciting time to be alive. Like three

0:41:52.719 --> 0:41:55.560
<v Speaker 23>weeks after Gutenberg invented the printing press.

0:41:57.719 --> 0:42:01.160
<v Speaker 6>In nineteen ninety seven, Sethwarshovski is on the cover of

0:42:01.239 --> 0:42:04.440
<v Speaker 6>The Wall Street Journal. Build as a new tech mogul

0:42:05.360 --> 0:42:08.520
<v Speaker 6>to expand its content model and find new customers and

0:42:08.600 --> 0:42:13.320
<v Speaker 6>new income streams, IIG launches its first non adult sites,

0:42:14.000 --> 0:42:17.799
<v Speaker 6>a website with live streaming psychics in collaboration with New

0:42:17.880 --> 0:42:20.800
<v Speaker 6>York Psychic Readers Network, best known for the Miss Cleo

0:42:21.000 --> 0:42:25.879
<v Speaker 6>series of infomercials. There's also telelawyer dot com with live

0:42:25.880 --> 0:42:29.440
<v Speaker 6>streaming lawyers. You can pay for advice and help filing paperwork.

0:42:30.840 --> 0:42:32.120
<v Speaker 7>And while everyone is.

0:42:32.080 --> 0:42:36.600
<v Speaker 6>Moving online, most people are not monetizing it. Like Sethwarshovski

0:42:36.760 --> 0:42:41.320
<v Speaker 6>is high traffic websites for mainstream entertainment brands like ESPN's

0:42:41.320 --> 0:42:44.600
<v Speaker 6>Sports Zone can't figure out how to turn site views

0:42:44.640 --> 0:42:49.640
<v Speaker 6>into paid subscriptions. Newspapers like USA Today launch online with

0:42:49.680 --> 0:42:53.120
<v Speaker 6>a paywall, lower it, then drop it back to free

0:42:53.200 --> 0:42:56.600
<v Speaker 6>after not enough people subscribe.

0:42:56.680 --> 0:42:59.920
<v Speaker 5>Our goal is not only to be an adult content provider.

0:43:00.560 --> 0:43:04.120
<v Speaker 5>We want to be the Viacom of new media.

0:43:05.120 --> 0:43:08.919
<v Speaker 6>Seth Twarshowski foresees the future where all media will move

0:43:08.960 --> 0:43:13.000
<v Speaker 6>to the Internet. He knows TV and other traditional media

0:43:13.040 --> 0:43:17.040
<v Speaker 6>companies will need his online video expertise, even if he

0:43:17.200 --> 0:43:20.960
<v Speaker 6>is a smut peddler. In nineteen ninety seven, he takes

0:43:21.040 --> 0:43:24.400
<v Speaker 6>meetings with Viacom and Time Warner, telling them how networks

0:43:24.440 --> 0:43:28.120
<v Speaker 6>like HBO and MSN could transition onto the web. He

0:43:28.239 --> 0:43:31.759
<v Speaker 6>swears that live streaming video that isn't slow or pixelated

0:43:32.000 --> 0:43:37.680
<v Speaker 6>is imminent. The technology is advancing rapidly every year. Club

0:43:37.719 --> 0:43:40.400
<v Speaker 6>Love charges forty nine dollars and ninety nine cents for

0:43:40.480 --> 0:43:44.359
<v Speaker 6>a thirty minute clip. Club Love also innovates a way

0:43:44.440 --> 0:43:49.759
<v Speaker 6>for viewers to see videos without downloading a telltale separate program.

0:43:50.239 --> 0:43:53.759
<v Speaker 6>The live video section of Club Love is called Arcade,

0:43:53.960 --> 0:43:57.960
<v Speaker 6>where cameras and occasionally porn stars like Kylie Ireland perform

0:43:58.080 --> 0:44:02.880
<v Speaker 6>live IEG. The studio has fourteen camgirls on staff and

0:44:03.000 --> 0:44:08.800
<v Speaker 6>four sound stages jim shower, dungeon, and bedroom. There's also

0:44:08.840 --> 0:44:13.200
<v Speaker 6>a toilet cam and a dressing room cam. Customers pay

0:44:13.280 --> 0:44:17.160
<v Speaker 6>to pretend they are spying voyeuristically on someone who in

0:44:17.200 --> 0:44:22.880
<v Speaker 6>fact knows that they're on camera. Iig's talent director is

0:44:22.920 --> 0:44:27.439
<v Speaker 6>a thirties Ish businesswoman named Marra Meren, who Sethwarshovsky Post

0:44:27.480 --> 0:44:32.480
<v Speaker 6>from the Eisenberg's company. Mara Meren supervises the camgirls as

0:44:32.520 --> 0:44:37.760
<v Speaker 6>well as seven camboys at Manhole, iig's live gay camming site,

0:44:38.040 --> 0:44:41.040
<v Speaker 6>which operates out of Maren's house in the Seattle suburbs.

0:44:42.239 --> 0:44:45.600
<v Speaker 6>When the sites aren't live for business, they run recycled

0:44:45.640 --> 0:44:49.640
<v Speaker 6>footage from previous broadcasts. When there are no viewers logged in,

0:44:49.880 --> 0:44:53.280
<v Speaker 6>nobody has to perform.

0:44:53.520 --> 0:44:58.120
<v Speaker 15>They're smart and well behaved, and unlike phone sex, our

0:44:58.160 --> 0:45:03.040
<v Speaker 15>guys say thank you when they're done. Believe me, it's

0:45:03.160 --> 0:45:06.920
<v Speaker 15>much appreciated. Laura Camgirl.

0:45:09.280 --> 0:45:12.880
<v Speaker 6>Some of IEG's live streamers are local exotic dancers who

0:45:12.960 --> 0:45:15.760
<v Speaker 6>get online like Danny Ash to make money stripping without

0:45:15.800 --> 0:45:19.680
<v Speaker 6>hazards like workplace sexual harassment, customers stalking you in the

0:45:19.680 --> 0:45:22.840
<v Speaker 6>parking lot after the show, or managers stiffing you on

0:45:22.920 --> 0:45:28.360
<v Speaker 6>your tips. Other cameras are local Seattle artists, musicians, and

0:45:28.480 --> 0:45:31.560
<v Speaker 6>college students who look at camming as just a way

0:45:31.560 --> 0:45:34.080
<v Speaker 6>to make some money so that they can focus on

0:45:34.160 --> 0:45:37.960
<v Speaker 6>other things in their life besides working. They're young gen

0:45:38.200 --> 0:45:41.440
<v Speaker 6>xers who are way past the is it empowering or

0:45:41.480 --> 0:45:45.719
<v Speaker 6>degrading politics of the early porn wars. As far as

0:45:45.800 --> 0:45:49.399
<v Speaker 6>riot girls and boys are concerned, shaking what the lord

0:45:49.440 --> 0:45:52.160
<v Speaker 6>gave you for twenty bucks an hour is less degrading

0:45:52.200 --> 0:45:54.920
<v Speaker 6>than working a shitty service job or some white collar

0:45:55.000 --> 0:45:59.040
<v Speaker 6>office drone work. Laura is a skinny white camgirl with

0:45:59.080 --> 0:46:01.680
<v Speaker 6>a bleach blonde buzz cut who says as much.

0:46:03.440 --> 0:46:06.160
<v Speaker 15>I can't believe I actually get paid to work here.

0:46:06.960 --> 0:46:10.160
<v Speaker 15>I mean, come to a really nice environment to goof

0:46:10.239 --> 0:46:14.759
<v Speaker 15>around nude for the benefit of unseen admirers. What could

0:46:14.760 --> 0:46:15.240
<v Speaker 15>be better?

0:46:17.320 --> 0:46:19.600
<v Speaker 24>Once you're in an area like this, you see adult

0:46:19.640 --> 0:46:23.840
<v Speaker 24>film stars come in. They're real people, they're nice. It

0:46:23.880 --> 0:46:26.840
<v Speaker 24>doesn't feel like you're walking into an adult film shop anymore.

0:46:27.480 --> 0:46:32.440
<v Speaker 24>Sometimes it even feels like work. Rod Colin Graphic designer.

0:46:34.960 --> 0:46:38.920
<v Speaker 6>The offscreen office workers at IEG are likewise not that

0:46:39.120 --> 0:46:42.600
<v Speaker 6>personally invested in the company itself. They treat it like

0:46:42.640 --> 0:46:45.640
<v Speaker 6>a day job, not a means to get stock options.

0:46:45.680 --> 0:46:48.919
<v Speaker 6>When the company goes public, like Warshovski is aiming for,

0:46:49.880 --> 0:46:53.360
<v Speaker 6>they pursue their own real passions off the clock.

0:46:55.640 --> 0:46:58.399
<v Speaker 5>We view the net as an interactive TV type thing.

0:46:58.960 --> 0:47:01.560
<v Speaker 5>Right now, it's a novel. But when the mediums converge

0:47:01.600 --> 0:47:03.960
<v Speaker 5>and you have true interactive TV, it's.

0:47:03.800 --> 0:47:05.920
<v Speaker 4>Going to be unbelievable.

0:47:06.360 --> 0:47:08.759
<v Speaker 5>You could be watching CNN and your stock quotes would

0:47:08.760 --> 0:47:12.200
<v Speaker 5>pop up on screen. You could be reading Penthouse magazine

0:47:12.239 --> 0:47:15.319
<v Speaker 5>and an adult film star could pop up and talk

0:47:15.360 --> 0:47:18.360
<v Speaker 5>to you in broadcast quality thirty frames a second.

0:47:18.440 --> 0:47:20.960
<v Speaker 4>Truly interactive anything could happen.

0:47:23.239 --> 0:47:26.040
<v Speaker 17>Nobody wants to admit that their network is being used

0:47:26.080 --> 0:47:29.520
<v Speaker 17>to distribute smut, but in fact it's a very profitable

0:47:29.560 --> 0:47:34.080
<v Speaker 17>part of their business. Jeffrey Rayport, Harvard Business School.

0:47:37.000 --> 0:47:41.040
<v Speaker 6>Ninety percent of Club Loves paying customer base consists of

0:47:41.120 --> 0:47:45.200
<v Speaker 6>businessmen age eighteen to forty, logging on from work. The

0:47:45.320 --> 0:47:48.879
<v Speaker 6>model Club Love customer is a male college student who

0:47:49.000 --> 0:47:54.239
<v Speaker 6>has free time, curiosity, and a credit card. Like a

0:47:54.239 --> 0:47:57.879
<v Speaker 6>strip club the site develops a clientele of regulars who

0:47:57.960 --> 0:48:01.480
<v Speaker 6>have their favorite performers, and a lot of those customers

0:48:01.520 --> 0:48:04.200
<v Speaker 6>aren't just horny, they're lonely.

0:48:06.480 --> 0:48:08.440
<v Speaker 15>A lot of them are very clear about what they

0:48:08.480 --> 0:48:10.720
<v Speaker 15>want to see and what they want you to say.

0:48:11.440 --> 0:48:13.320
<v Speaker 15>I mean, you get guys you want to see your ass,

0:48:13.840 --> 0:48:16.040
<v Speaker 15>but I actually get more requests from guys to wave

0:48:16.080 --> 0:48:19.360
<v Speaker 15>at them than to show my ass. It's really important

0:48:19.360 --> 0:48:20.200
<v Speaker 15>for them to know it's live.

0:48:22.320 --> 0:48:25.200
<v Speaker 6>You can pay an extra fee to call a performer

0:48:25.239 --> 0:48:27.960
<v Speaker 6>on the phone and talk with them while they live stream,

0:48:28.239 --> 0:48:31.480
<v Speaker 6>like Peep show Girls once did. Behind Glass. You can

0:48:31.520 --> 0:48:34.680
<v Speaker 6>buy a monthly membership for nine dollars and ninety five cents,

0:48:35.239 --> 0:48:38.520
<v Speaker 6>or do one off purchases of videos like The Cable Girl,

0:48:38.920 --> 0:48:42.920
<v Speaker 6>a porn take on The Cable Guy. There's up selling

0:48:42.960 --> 0:48:46.799
<v Speaker 6>opportunities for special items like massage lotion, which you can

0:48:46.840 --> 0:48:50.160
<v Speaker 6>pay to watch the streamer apply. You can buy dirty

0:48:50.200 --> 0:48:52.720
<v Speaker 6>bedtime stories for the camera to read to you live.

0:48:53.640 --> 0:48:58.360
<v Speaker 6>IEG is constantly expanding its content offerings into new fields

0:48:58.760 --> 0:49:03.800
<v Speaker 6>like strip, blackjack, and dominatrix sessions. By nineteen ninety seven,

0:49:04.160 --> 0:49:07.880
<v Speaker 6>Sethwarshovsky claims that Club Love is making twenty five thousand

0:49:07.920 --> 0:49:12.160
<v Speaker 6>dollars in profit a day off a combo of membership sales,

0:49:12.480 --> 0:49:17.560
<v Speaker 6>live videos, and add on extras. Sethwarshovsky buys a cell

0:49:17.600 --> 0:49:20.600
<v Speaker 6>phone and a black BMW seven forty that he is

0:49:20.680 --> 0:49:24.160
<v Speaker 6>legally prohibited from driving because he lost his license after

0:49:24.280 --> 0:49:28.759
<v Speaker 6>twenty moving violations. He hires a driver to take him

0:49:28.760 --> 0:49:31.799
<v Speaker 6>in his BMW do IEG's Club Love Studios at the

0:49:31.880 --> 0:49:36.000
<v Speaker 6>refurbished loft building by the docks. Since he can't drive

0:49:36.040 --> 0:49:39.200
<v Speaker 6>a car, seth gets a boat and takes it out

0:49:39.200 --> 0:49:41.799
<v Speaker 6>on Puget Sound, going seventy miles per hour.

0:49:43.840 --> 0:49:47.439
<v Speaker 22>He's very scary when he's in that boat. He's the

0:49:47.480 --> 0:49:50.000
<v Speaker 22>most driven person I've ever come in contact with.

0:49:51.719 --> 0:49:55.120
<v Speaker 6>Warshovsky's corner office at Club Love's headquarters has a black

0:49:55.239 --> 0:49:58.440
<v Speaker 6>leather couch and a bunch of wakeboards leaning against the wall.

0:49:59.080 --> 0:50:01.960
<v Speaker 6>He eats a pro rodo tech bro diet of protein

0:50:02.040 --> 0:50:06.239
<v Speaker 6>boosts like sliced turkey every two hours and lots of vitamins.

0:50:08.120 --> 0:50:10.600
<v Speaker 5>I have so much energy, I have to take melatonin

0:50:10.719 --> 0:50:11.680
<v Speaker 5>before I go to bed.

0:50:13.560 --> 0:50:15.960
<v Speaker 6>His king sized bed is in a condo across the

0:50:16.000 --> 0:50:19.040
<v Speaker 6>street from the IEG office tower, which he needs to

0:50:19.080 --> 0:50:22.440
<v Speaker 6>live close to because he can't Drive. He's lived in

0:50:22.480 --> 0:50:26.239
<v Speaker 6>the condo, which has green marble counters and giant glass windows,

0:50:26.360 --> 0:50:30.279
<v Speaker 6>for two years. A telescope is positioned looking out the

0:50:30.280 --> 0:50:32.000
<v Speaker 6>window towards downtown Seattle.

0:50:32.800 --> 0:50:33.560
<v Speaker 7>On the walls.

0:50:33.640 --> 0:50:37.120
<v Speaker 6>He has abstract paintings leased from the Seattle Art Museum,

0:50:37.560 --> 0:50:41.000
<v Speaker 6>a handful of books, and no personal effects or photos

0:50:41.040 --> 0:50:42.080
<v Speaker 6>displayed whatsoever.

0:50:44.200 --> 0:50:47.880
<v Speaker 5>My parents are proud of me. I'm a successful businessman.

0:50:50.200 --> 0:50:54.120
<v Speaker 6>While some speak kindly about Seth, others are not fans

0:50:54.200 --> 0:50:58.280
<v Speaker 6>of the young Seattle video sex tycoon. He gets knocked

0:50:58.320 --> 0:51:01.680
<v Speaker 6>the fuck out by an industry colleague for being a

0:51:01.760 --> 0:51:04.560
<v Speaker 6>dick at a phone sex trade show in Century City.

0:51:05.680 --> 0:51:09.640
<v Speaker 6>At IEG he runs through a lot of young, hard

0:51:09.640 --> 0:51:13.800
<v Speaker 6>working staff and maintains a work atmosphere some find overly

0:51:13.880 --> 0:51:17.959
<v Speaker 6>high pressure. Working for a temperamental twenty six year old

0:51:17.960 --> 0:51:21.560
<v Speaker 6>man with his own media company can be humiliating in

0:51:21.600 --> 0:51:22.839
<v Speaker 6>its own special way.

0:51:24.880 --> 0:51:27.640
<v Speaker 22>He's a tough guy to work for. He stresses people out.

0:51:27.680 --> 0:51:30.359
<v Speaker 22>He's very intense. He doesn't stop and ask how your

0:51:30.440 --> 0:51:33.359
<v Speaker 22>day is. He's not a people person, but he's got

0:51:33.400 --> 0:51:37.359
<v Speaker 22>a big heart. He's very generous, but he's not the

0:51:37.400 --> 0:51:40.040
<v Speaker 22>most human person.

0:51:42.520 --> 0:51:46.560
<v Speaker 6>Warshovsky has defenders like Derek Newman, who says his boss

0:51:46.640 --> 0:51:49.880
<v Speaker 6>lets employees bring their infant children to the office. But

0:51:49.920 --> 0:51:54.080
<v Speaker 6>he also has enemies like Joseph Kowati, who runs rival

0:51:54.239 --> 0:51:57.759
<v Speaker 6>live campsite Iebroadcast and gets in a screaming fight with

0:51:57.840 --> 0:52:01.440
<v Speaker 6>set outside a bar in Seattle that with Kowati spitting

0:52:01.440 --> 0:52:06.000
<v Speaker 6>in Warshovsky's face. Warshovski sues him for a million dollars

0:52:06.040 --> 0:52:07.200
<v Speaker 6>for livel.

0:52:08.960 --> 0:52:11.160
<v Speaker 10>Seth gets a lot of business off the media, which

0:52:11.200 --> 0:52:14.080
<v Speaker 10>kind of separates him from the low key players. Let's

0:52:14.120 --> 0:52:16.959
<v Speaker 10>face it, everybody has heard of IEG and Club Love.

0:52:17.360 --> 0:52:21.160
<v Speaker 10>How many other adult sites can you think of? Joseph Kowati?

0:52:21.840 --> 0:52:23.160
<v Speaker 10>I broadcast.

0:52:24.600 --> 0:52:27.800
<v Speaker 4>Every goal I've set for myself I've achieved.

0:52:30.640 --> 0:52:35.160
<v Speaker 6>There are also more women starting sexual websites. Video artist

0:52:35.239 --> 0:52:39.040
<v Speaker 6>Madeline Altman and adult film distributor Stephanie Martin raised two

0:52:39.120 --> 0:52:42.759
<v Speaker 6>hundred thousand dollars in startup capital and launch Babes for

0:52:42.880 --> 0:52:48.000
<v Speaker 6>You in New York with company Albemar Inc. Altman and

0:52:48.120 --> 0:52:51.560
<v Speaker 6>Martin see the Internet as a way to expand sexual

0:52:51.600 --> 0:52:55.560
<v Speaker 6>imaginations beyond the fantasies of guys like Bob Guccioni and

0:52:55.640 --> 0:52:56.440
<v Speaker 6>Hugh Hefner.

0:52:58.640 --> 0:53:03.240
<v Speaker 25>It's a new language of sexuality. With video phone sets,

0:53:03.480 --> 0:53:06.719
<v Speaker 25>you can ask somebody to do kinky things, but it's

0:53:06.719 --> 0:53:10.720
<v Speaker 25>still completely anonymous. Something like this has never existed before

0:53:10.960 --> 0:53:13.879
<v Speaker 25>in our history. I'd love to tie up a man,

0:53:14.200 --> 0:53:16.399
<v Speaker 25>to see his balls tied up, but I'm not going

0:53:16.440 --> 0:53:21.200
<v Speaker 25>to because as an American, I'm uncomfortable talking about sexuality. Now,

0:53:21.280 --> 0:53:24.120
<v Speaker 25>I'm able to act out my fantasy with another human being,

0:53:24.520 --> 0:53:26.520
<v Speaker 25>but I don't have to go to some weird place,

0:53:27.040 --> 0:53:29.120
<v Speaker 25>ask somebody to come to my house and put myself

0:53:29.120 --> 0:53:33.840
<v Speaker 25>in a compromising situation. Suddenly on the net, this is

0:53:33.880 --> 0:53:39.080
<v Speaker 25>not a fantasy anymore, Madeline Altman, Babes for You.

0:53:41.360 --> 0:53:44.160
<v Speaker 6>Babes for You are turning a profit a mere eight

0:53:44.239 --> 0:53:48.000
<v Speaker 6>months into operation, fielding one hundred clients tuning in daily

0:53:48.080 --> 0:53:51.640
<v Speaker 6>to see their cams. The web is a powerful tool

0:53:51.760 --> 0:53:56.760
<v Speaker 6>for private exploration of fantasy images and scenarios. The Internet

0:53:56.840 --> 0:54:00.680
<v Speaker 6>might also be allowing women to suddenly act says sex

0:54:00.920 --> 0:54:05.000
<v Speaker 6>the way men have been able to historically. As a consumer,

0:54:06.239 --> 0:54:09.160
<v Speaker 6>the world of what you can have access to a

0:54:09.200 --> 0:54:12.799
<v Speaker 6>fantasy of tying a guy's balls up, for example, is

0:54:12.880 --> 0:54:18.560
<v Speaker 6>opened with money. Sex can be purely transactional. It can

0:54:18.640 --> 0:54:22.480
<v Speaker 6>also be a deep expression of feelings. But it can

0:54:22.520 --> 0:54:23.839
<v Speaker 6>be this other thing too.

0:54:26.000 --> 0:54:29.440
<v Speaker 26>The VCR has gone a long way to legitimize consumption

0:54:29.480 --> 0:54:33.160
<v Speaker 26>of adult material, and yet if everyone who rented adult

0:54:33.280 --> 0:54:36.320
<v Speaker 26>videotapes was as vocal as the people who owned guns,

0:54:36.600 --> 0:54:38.600
<v Speaker 26>you could not get elected to public office in the

0:54:38.680 --> 0:54:41.759
<v Speaker 26>United States without talking about how often you whack off

0:54:41.800 --> 0:54:42.280
<v Speaker 26>to porn.

0:54:43.520 --> 0:54:46.400
<v Speaker 4>Christoph Pettis blowfish erotic toys.

0:54:48.719 --> 0:54:52.840
<v Speaker 6>There's yet another media shift approaching on the late nineties. Horizon.

0:54:53.560 --> 0:54:57.239
<v Speaker 6>Digital video discs or DVDs, are a new type of

0:54:57.280 --> 0:55:01.000
<v Speaker 6>home media, poised to replace vhs with better clarity of

0:55:01.040 --> 0:55:04.080
<v Speaker 6>image and the ability to easily skip around to any point.

0:55:06.120 --> 0:55:10.080
<v Speaker 6>David James from Vivid thinks on demand video will surpass

0:55:10.200 --> 0:55:13.799
<v Speaker 6>all forms of physical home media in profits, and he

0:55:13.920 --> 0:55:15.319
<v Speaker 6>will get half of that right.

0:55:17.719 --> 0:55:19.080
<v Speaker 12>People know how to find us.

0:55:21.160 --> 0:55:26.080
<v Speaker 6>Stephen Hirsch's Vivid Empire continues to grow. The company moves

0:55:26.080 --> 0:55:29.440
<v Speaker 6>from its original offices in a dilapidated part of the

0:55:29.520 --> 0:55:34.160
<v Speaker 6>valley to a prime new location in Studio City off

0:55:34.200 --> 0:55:37.600
<v Speaker 6>the Koanga Canyon Pass, which cuts through the hills and

0:55:37.640 --> 0:55:43.080
<v Speaker 6>physically connects Hollywood to the valley. Vivid Video is renamed

0:55:43.080 --> 0:55:47.640
<v Speaker 6>to Vivid Entertainment and relocates into a fancy modernist office

0:55:47.680 --> 0:55:52.280
<v Speaker 6>building with a balcony. There are blue Vivid Entertainment signs

0:55:52.360 --> 0:55:54.680
<v Speaker 6>a fixed on the side of the building and the

0:55:54.760 --> 0:55:59.360
<v Speaker 6>Vivid logo a V within a star. The Vivid sign's

0:55:59.440 --> 0:56:03.279
<v Speaker 6>globe blo at night, greeting motorists as they enter and

0:56:03.400 --> 0:56:07.640
<v Speaker 6>exit the valley. Vivid's new location puts it right by

0:56:07.680 --> 0:56:11.239
<v Speaker 6>the studio lots for Universal Pictures and Warner Brothers, and

0:56:11.320 --> 0:56:17.120
<v Speaker 6>makes a statement Vivid is a real studio too. Steve

0:56:17.239 --> 0:56:21.120
<v Speaker 6>Hirsch spends his share of Vivid's profits on expensive pleasures

0:56:21.200 --> 0:56:25.160
<v Speaker 6>like luxury cars, box seats for Bruce Springsteen shows, and

0:56:25.239 --> 0:56:28.920
<v Speaker 6>prehistoric fossils. He splashes out big time to build a

0:56:28.920 --> 0:56:32.920
<v Speaker 6>personal collection of presidential Americana whose crown jewels are a

0:56:33.000 --> 0:56:36.040
<v Speaker 6>death mask of Abraham Lincoln and a lock of hair

0:56:36.080 --> 0:56:39.960
<v Speaker 6>from one of George Washington's wigs. The message is loud

0:56:40.000 --> 0:56:45.320
<v Speaker 6>and clear. Vivid Entertainment and pornography are as all American

0:56:45.480 --> 0:56:48.719
<v Speaker 6>as apple Pie.

0:56:48.920 --> 0:56:51.560
<v Speaker 1>I think Vivid and Wicked have done a really good

0:56:51.640 --> 0:56:56.080
<v Speaker 1>job of working towards mainstreaming the industry. They've used a

0:56:56.120 --> 0:56:59.360
<v Speaker 1>star system, and they make celebrities out of their contract

0:56:59.400 --> 0:57:02.920
<v Speaker 1>stars and it's done a lot. I think for adult

0:57:03.040 --> 0:57:06.960
<v Speaker 1>entertainment's image, it is getting more mainstream, and I think

0:57:07.000 --> 0:57:09.600
<v Speaker 1>a lot of the press coverage I've got has in

0:57:09.640 --> 0:57:13.520
<v Speaker 1>a way helped make the business more mainstream. You know,

0:57:13.680 --> 0:57:17.280
<v Speaker 1>ultimately we will arrive at more European values and people

0:57:17.320 --> 0:57:19.960
<v Speaker 1>will lighten up about sex a little bit. But right

0:57:20.000 --> 0:57:21.840
<v Speaker 1>now it's still pretty taboo.

0:57:25.480 --> 0:57:28.560
<v Speaker 19>I'm a valley girl. You can't get me out of

0:57:28.560 --> 0:57:30.640
<v Speaker 19>the valley. I'm still here.

0:57:31.960 --> 0:57:38.480
<v Speaker 6>Cindy Margolis, another early Internet star, is a bottle blonde

0:57:38.600 --> 0:57:43.640
<v Speaker 6>Jewish la girl named Cindy Margolis born Cynthia don Margolis,

0:57:43.840 --> 0:57:47.720
<v Speaker 6>a Libra, Cindy is a cal State Northridge student taking

0:57:47.760 --> 0:57:51.640
<v Speaker 6>business classes. For her final project, she makes business cards

0:57:51.680 --> 0:57:54.480
<v Speaker 6>with a cheesecake lingerie photo of herself printed on one

0:57:54.560 --> 0:57:58.320
<v Speaker 6>side and her phone number on the other. The business

0:57:58.320 --> 0:58:00.840
<v Speaker 6>cards land her some modeling work, and she runs the

0:58:00.880 --> 0:58:05.560
<v Speaker 6>gauntlet of opportunities for bikini models, doing print ads, woodworking

0:58:05.600 --> 0:58:09.480
<v Speaker 6>shows as misspower Tools, appearing as one of Bob Barker's

0:58:09.480 --> 0:58:13.600
<v Speaker 6>beauties on the Prices Right Yikes, and playing one of

0:58:13.600 --> 0:58:19.040
<v Speaker 6>the fembots in the first Austin Powers movie. Like Danny Ash,

0:58:19.280 --> 0:58:21.800
<v Speaker 6>Cindy Margolis sees the potential of the Internet as a

0:58:21.840 --> 0:58:25.480
<v Speaker 6>tool for self promotion, where an aspiring glamour model can

0:58:25.520 --> 0:58:28.760
<v Speaker 6>go from disposable cog in a big machine to a

0:58:28.800 --> 0:58:34.520
<v Speaker 6>brand all her own. She starts a website, cindymargolist dot com, and,

0:58:34.640 --> 0:58:37.920
<v Speaker 6>much like Danny, Cindy brands herself as the Queen of

0:58:37.960 --> 0:58:42.880
<v Speaker 6>the Internet and the most downloaded woman. Her webpage gets

0:58:42.880 --> 0:58:46.440
<v Speaker 6>written up in print magazines, where they call her cyber Cindy.

0:58:47.600 --> 0:58:50.440
<v Speaker 6>According to Cindy at the peak of her popularity in

0:58:50.520 --> 0:58:54.920
<v Speaker 6>nineteen ninety nine, her bikini photos are downloaded seventy thousand

0:58:54.920 --> 0:58:59.600
<v Speaker 6>times a day. Contemporary articles about Cindy Margolis and Danny

0:58:59.640 --> 0:59:04.080
<v Speaker 6>Ash scoff at the very idea of an Internet celebrity.

0:59:04.800 --> 0:59:08.720
<v Speaker 6>They suggest that online fame will always be considered lesser

0:59:08.760 --> 0:59:12.840
<v Speaker 6>than other kinds, but d list is still a list.

0:59:13.520 --> 0:59:17.080
<v Speaker 6>The first Internet adult superstars don't care about mingling with

0:59:17.160 --> 0:59:20.600
<v Speaker 6>TV and movie stars as media industry peers. They just

0:59:20.680 --> 0:59:27.920
<v Speaker 6>care about making money online. There's another term for internet fame, democratic.

0:59:29.080 --> 0:59:31.320
<v Speaker 6>The idea that anyone with a dream and a web

0:59:31.360 --> 0:59:35.280
<v Speaker 6>address can now make themselves an autonomous brand is seductive.

0:59:36.120 --> 0:59:39.880
<v Speaker 6>Danny Ash and Cindy Margolis both strike it rich in

0:59:39.960 --> 0:59:42.760
<v Speaker 6>part because they get there so early to stake their claims.

0:59:43.480 --> 0:59:47.480
<v Speaker 6>Making content for a personal website is certainly work, but

0:59:47.560 --> 0:59:51.160
<v Speaker 6>for Danny and Cindy, it's a better quality of employment

0:59:51.320 --> 0:59:54.560
<v Speaker 6>than hoofing it in a bikini at woodworking shows or

0:59:54.600 --> 0:59:56.800
<v Speaker 6>getting sent into strip club police busts.

0:59:58.600 --> 1:00:01.040
<v Speaker 1>For years, I just ran my fan club part time

1:00:01.080 --> 1:00:03.840
<v Speaker 1>out of the house, and I made fifteen hundred dollars

1:00:03.880 --> 1:00:06.360
<v Speaker 1>a month. I went on the web and it went

1:00:06.520 --> 1:00:10.760
<v Speaker 1>immediately to ten thousand dollars to fifteen thousand dollars.

1:00:12.960 --> 1:00:15.840
<v Speaker 6>Danny adds a paid membership called the hot Box for

1:00:15.960 --> 1:00:19.040
<v Speaker 6>nine dollars and ninety five cents a month, with access

1:00:19.080 --> 1:00:22.480
<v Speaker 6>to premium photos and interviews with nude models. By the

1:00:22.520 --> 1:00:26.360
<v Speaker 6>late nineties, Danny dot com has seventeen thousand members and

1:00:26.480 --> 1:00:30.200
<v Speaker 6>net's nearly two million dollars a year. She gets emails

1:00:30.240 --> 1:00:32.800
<v Speaker 6>from satisfied customers around the world.

1:00:35.040 --> 1:00:36.919
<v Speaker 1>I think a lot of these guys have never even

1:00:36.960 --> 1:00:40.440
<v Speaker 1>bought an adult magazine.

1:00:41.440 --> 1:00:46.680
<v Speaker 6>When General World returns, celebrity sex tapes change the market.

1:00:53.440 --> 1:00:57.480
<v Speaker 6>Oh yeah, welcome back to General World.

1:01:03.560 --> 1:01:06.040
<v Speaker 5>I don't think anyone else has really tried to create

1:01:06.080 --> 1:01:09.680
<v Speaker 5>that brand name recognition on the net. We want to

1:01:09.680 --> 1:01:13.200
<v Speaker 5>be the next generation of Playboy, Penthouse or Pustler.

1:01:15.040 --> 1:01:18.800
<v Speaker 6>Seth Warshowski continues to build out new segments of IIG

1:01:19.280 --> 1:01:23.440
<v Speaker 6>and the venture has a new focus. Famous People Naked.

1:01:25.000 --> 1:01:29.840
<v Speaker 6>Pamela Anderson and Tommy Lee sue IIG overposting the stolen

1:01:30.000 --> 1:01:33.120
<v Speaker 6>our long tape of their Lake Mead houseboat Honeymoon on

1:01:33.200 --> 1:01:37.600
<v Speaker 6>Club Love in nineteen ninety seven. Bootlegs of the Perloin

1:01:37.680 --> 1:01:40.440
<v Speaker 6>sex tape were already being sold online and around LA

1:01:40.520 --> 1:01:43.560
<v Speaker 6>by a porn company called Arrow Productions. When Pam and

1:01:43.600 --> 1:01:47.240
<v Speaker 6>Tommy heard that Penthouse magazine now also had a copy

1:01:47.240 --> 1:01:50.400
<v Speaker 6>of the tape they were planning to sell. Pam and

1:01:50.440 --> 1:01:54.160
<v Speaker 6>Tommy lost their nineteen ninety six lawsuit against Penthouse when

1:01:54.160 --> 1:01:57.720
<v Speaker 6>the media company's lawyer successfully convinced the court that the

1:01:57.800 --> 1:02:01.720
<v Speaker 6>couple had forfeited any rights to privacy by becoming celebrities.

1:02:02.840 --> 1:02:06.200
<v Speaker 6>By the time Pam and Tommy sued IIG for running

1:02:06.240 --> 1:02:08.960
<v Speaker 6>a five hour stream of the sex tape on Club Love,

1:02:09.280 --> 1:02:12.040
<v Speaker 6>the whole thing was stressing out Pam, who was pregnant,

1:02:12.160 --> 1:02:15.360
<v Speaker 6>and the Lees just wanted to stop thinking about it.

1:02:15.360 --> 1:02:17.880
<v Speaker 6>It was long rumored that the Lees cut a backroom

1:02:17.920 --> 1:02:20.880
<v Speaker 6>deal with IIG and got a share of their seventy

1:02:20.920 --> 1:02:24.240
<v Speaker 6>seven million in profits, but Pam said that isn't true

1:02:24.240 --> 1:02:29.160
<v Speaker 6>in her Netflix documentary Pamela A Love Story. Allegedly, the

1:02:29.240 --> 1:02:32.400
<v Speaker 6>couple just signed away the rights to Warshovski because they

1:02:32.480 --> 1:02:35.200
<v Speaker 6>believed that this meant the sex tape would just continue

1:02:35.200 --> 1:02:38.720
<v Speaker 6>to stream online, but Sethwarshovski then sold the tape to

1:02:38.800 --> 1:02:41.960
<v Speaker 6>Vivid Entertainment, who made hard copies of the sex tape

1:02:42.000 --> 1:02:44.720
<v Speaker 6>and started selling them in adult stores in nineteen ninety eight.

1:02:45.520 --> 1:02:50.440
<v Speaker 6>Ethical not at all legal technically so far.

1:02:52.800 --> 1:02:56.400
<v Speaker 5>We're just as much journalists as Fox files or hard

1:02:56.400 --> 1:02:57.760
<v Speaker 5>copy or sixty minutes.

1:02:58.200 --> 1:02:59.560
<v Speaker 4>It's a different kind of content.

1:03:00.120 --> 1:03:02.680
<v Speaker 5>The only reason sixty minutes or forty eight hours doesn't

1:03:02.680 --> 1:03:04.640
<v Speaker 5>show that Pam and Tommy tape is because they.

1:03:04.520 --> 1:03:05.480
<v Speaker 4>Can't show nudity.

1:03:06.120 --> 1:03:08.880
<v Speaker 5>And the hypocrisy that comes into play when they say

1:03:09.120 --> 1:03:13.920
<v Speaker 5>you're profiting off these people's mistakes is absurd.

1:03:14.720 --> 1:03:19.120
<v Speaker 6>IIG also posts naked photos of conservative talk show shrink

1:03:19.240 --> 1:03:23.080
<v Speaker 6>doctor Laura Schlessinger. The Doctor Laura photos are sold to

1:03:23.160 --> 1:03:26.160
<v Speaker 6>IIG by an older male mentor she'd had an affair

1:03:26.200 --> 1:03:28.320
<v Speaker 6>with in the seventies when she was in her twenties.

1:03:29.160 --> 1:03:32.760
<v Speaker 6>Doctor Laura sues IIG, and the court rules that she

1:03:32.880 --> 1:03:36.520
<v Speaker 6>doesn't own the rights to the photos. She's a racist

1:03:36.520 --> 1:03:41.440
<v Speaker 6>and a homophobe, but that's still very fucked up. Bret

1:03:41.480 --> 1:03:45.440
<v Speaker 6>Michaels of Poison successfully blocks IIG from posting a nineteen

1:03:45.520 --> 1:03:48.240
<v Speaker 6>ninety three sex tape of him and Pamela Anderson and

1:03:48.320 --> 1:03:52.320
<v Speaker 6>sues them for ninety million dollars in damages. Neither Michaels

1:03:52.360 --> 1:03:55.840
<v Speaker 6>nor Anderson are interested in selling the tape, which keeps

1:03:55.920 --> 1:03:59.160
<v Speaker 6>leaking online, or in using the publicity from the sex

1:03:59.200 --> 1:04:03.240
<v Speaker 6>tape to promote the careers. There's something they value more

1:04:03.280 --> 1:04:09.280
<v Speaker 6>than money, their privacy. Personal celebrity home video sex tapes

1:04:09.320 --> 1:04:12.240
<v Speaker 6>getting sold and distributed online is still such a new

1:04:12.280 --> 1:04:14.480
<v Speaker 6>field in the nineties that there's a big legal gray

1:04:14.520 --> 1:04:19.440
<v Speaker 6>area around them. In nineteen ninety eight, Kelsey Grammar anonymously

1:04:19.520 --> 1:04:24.520
<v Speaker 6>sues Sethwarshovski over IEG's possession of a suspected Kelsey Grammar

1:04:24.640 --> 1:04:29.480
<v Speaker 6>sex tape. Warshovsky counter sues, and IEG posts a re

1:04:29.680 --> 1:04:34.200
<v Speaker 6>enactment video of Fraser Crane's sex tape. Other actors get

1:04:34.240 --> 1:04:37.080
<v Speaker 6>asked by the press how they feel about this new

1:04:37.120 --> 1:04:38.200
<v Speaker 6>frontier of fame.

1:04:40.600 --> 1:04:44.640
<v Speaker 27>The Internet opens up so many issues. The ethics of

1:04:44.680 --> 1:04:48.800
<v Speaker 27>the whole thing haven't really been ironed out. I don't

1:04:48.840 --> 1:04:49.960
<v Speaker 27>know if they can ever be.

1:04:51.480 --> 1:04:53.360
<v Speaker 4>Jeff Bridges Actor.

1:04:55.520 --> 1:04:58.920
<v Speaker 27>If I start complaining, I'm calling more attention to it.

1:04:59.000 --> 1:05:02.560
<v Speaker 27>I can ran take rave. All will call more attention

1:05:02.680 --> 1:05:07.320
<v Speaker 27>to it. Sometimes silence is the only path to resistance,

1:05:08.560 --> 1:05:10.240
<v Speaker 27>Tim Robbins Actor.

1:05:12.200 --> 1:05:16.200
<v Speaker 6>In nineteen ninety nine, Internet Entertainment Group posts nude photos

1:05:16.240 --> 1:05:20.480
<v Speaker 6>online of a Brazilian model named Luciana Jimenez, whose pregnancy

1:05:20.560 --> 1:05:24.160
<v Speaker 6>by Mick Jagger breaks up jaggers decades long partnership with

1:05:24.280 --> 1:05:29.440
<v Speaker 6>Texans supermodel Jerry Hall. IIG also posts some ill gotten

1:05:29.480 --> 1:05:33.600
<v Speaker 6>pictures of Jagger's bandmate Keith Richards, masturbating that they bill

1:05:33.720 --> 1:05:40.200
<v Speaker 6>as Keith getting some self satisfaction. IIG purposely courts controversy

1:05:40.240 --> 1:05:43.720
<v Speaker 6>and constantly makes new enemies. They buy a site from

1:05:43.760 --> 1:05:47.479
<v Speaker 6>a Saint Louis web development company called Gemini that uses

1:05:47.520 --> 1:05:50.320
<v Speaker 6>an address designed for users looking for info on the

1:05:50.360 --> 1:05:53.960
<v Speaker 6>Pope's forthcoming visit to the United States in nineteen ninety

1:05:54.040 --> 1:05:59.720
<v Speaker 6>nine www dot papal Visit ninety nine dot com. When

1:05:59.760 --> 1:06:04.400
<v Speaker 6>the Paple visit site runs ads for bars. The archdiocese complains.

1:06:05.200 --> 1:06:08.840
<v Speaker 6>Gemini then sells it to IEG, who turn paplevisit ninety

1:06:08.920 --> 1:06:11.200
<v Speaker 6>nine dot com into a porn site with a section

1:06:11.360 --> 1:06:16.240
<v Speaker 6>called Unholy Sex. The Archbishop of Saint Louis gets a

1:06:16.280 --> 1:06:22.280
<v Speaker 6>successful injunction against paplevisit ninety nine dot com thatth Wwarshovsky

1:06:22.360 --> 1:06:26.160
<v Speaker 6>defends the website, saying the Catholic Church has extreme positions

1:06:26.200 --> 1:06:30.640
<v Speaker 6>on sexuality and that IG are respectable journalists covering the

1:06:30.640 --> 1:06:35.960
<v Speaker 6>Papal Visit responsibly. People who click on any of iig's

1:06:35.960 --> 1:06:39.000
<v Speaker 6>websites are served a million pop up ads that make

1:06:39.040 --> 1:06:41.280
<v Speaker 6>it harder to exit the site on their web browser

1:06:41.400 --> 1:06:42.400
<v Speaker 6>and try to lure.

1:06:42.240 --> 1:06:42.800
<v Speaker 7>Them back in.

1:06:43.680 --> 1:06:47.560
<v Speaker 6>The users who click into iig's websites create a profile

1:06:47.640 --> 1:06:50.320
<v Speaker 6>of their data, whether they end up signing up or not,

1:06:50.840 --> 1:06:55.280
<v Speaker 6>and that data can be sold off. Warshovsky is looking

1:06:55.320 --> 1:06:58.120
<v Speaker 6>at a greeting card company that uses this tactic.

1:07:00.200 --> 1:07:00.960
<v Speaker 4>Money two ways.

1:07:01.160 --> 1:07:03.760
<v Speaker 5>They're making money by advertising, and they're making money by

1:07:03.760 --> 1:07:07.000
<v Speaker 5>building a list, so there will be an email list

1:07:07.040 --> 1:07:09.560
<v Speaker 5>of all the people they send greeting cards to and

1:07:09.640 --> 1:07:13.000
<v Speaker 5>all the people they come from.

1:07:13.160 --> 1:07:16.400
<v Speaker 6>Most new enterprises on the web that appear to be free,

1:07:16.440 --> 1:07:19.600
<v Speaker 6>but involve an email signup make money off selling the

1:07:19.640 --> 1:07:23.720
<v Speaker 6>list of emails to third parties. In time, this type

1:07:23.720 --> 1:07:28.240
<v Speaker 6>of data will become the most valuable currency online. Collecting

1:07:28.360 --> 1:07:31.920
<v Speaker 6>personal user data and selling that data to other companies

1:07:32.360 --> 1:07:35.960
<v Speaker 6>is more lucrative than relying on getting actual paid subscriptions

1:07:36.000 --> 1:07:36.720
<v Speaker 6>to websites.

1:07:38.680 --> 1:07:43.320
<v Speaker 5>I passionately subscribe to what the First Amendment stands for.

1:07:45.440 --> 1:07:49.160
<v Speaker 6>While Seth Worshowski isn't interested in free speech so much

1:07:49.160 --> 1:07:51.960
<v Speaker 6>as free money, he ends up in the very same

1:07:52.040 --> 1:07:55.320
<v Speaker 6>courts his First Amendment testing predecessor, Larry Flynn of Hustler

1:07:55.360 --> 1:07:59.800
<v Speaker 6>magazine once did. He even hires Alan Isaacman, the lat

1:08:00.080 --> 1:08:02.840
<v Speaker 6>Ernie Flint hired for his cases, who was played by

1:08:03.000 --> 1:08:06.160
<v Speaker 6>Edward Norton and Miloschformann's movie The People Versus Larry Flint.

1:08:09.080 --> 1:08:12.520
<v Speaker 3>There are built in problems. One is that everyone is

1:08:12.560 --> 1:08:16.599
<v Speaker 3>all over, although that's not insurmountable. The other is that

1:08:16.720 --> 1:08:20.559
<v Speaker 3>in pornography there is an unspoken feeling of well, of

1:08:20.600 --> 1:08:23.280
<v Speaker 3>course they're lying when they say they didn't order the service.

1:08:24.080 --> 1:08:28.360
<v Speaker 3>It's like telemarketing. It's hard to organize the victims. These

1:08:28.400 --> 1:08:32.439
<v Speaker 3>are hard cases to make assistant US attorney Bartlett.

1:08:36.320 --> 1:08:40.400
<v Speaker 6>As the new millennium approaches, twenty six year old Sethwarshovski

1:08:40.560 --> 1:08:44.720
<v Speaker 6>is featured in Time magazine's nineteen ninety nine issue Technology's

1:08:44.760 --> 1:08:48.920
<v Speaker 6>fifty Most Important Faces, presented as a tech wonder kind,

1:08:49.040 --> 1:08:53.160
<v Speaker 6>the boy king of Internet sex. He's also in trouble

1:08:53.200 --> 1:08:56.280
<v Speaker 6>with the irs, big trouble.

1:08:57.800 --> 1:09:03.280
<v Speaker 5>That is absolutely, in factual, completely untrue whatsoever.

1:09:05.560 --> 1:09:10.080
<v Speaker 6>Alongside reports in magazines like Time that IG is generating

1:09:10.120 --> 1:09:13.400
<v Speaker 6>fifty million dollars a year in revenue, there is mounting

1:09:13.479 --> 1:09:18.080
<v Speaker 6>evidence that IG's camgirl sites are illegally overcharging credit cards

1:09:18.120 --> 1:09:23.720
<v Speaker 6>using the old phone sex scams. Seth denies everything. He

1:09:23.880 --> 1:09:27.960
<v Speaker 6>claims any customers who report false charges are fairly reimbursed.

1:09:28.760 --> 1:09:32.000
<v Speaker 6>He wants these claims that IIG is cooking the books

1:09:32.120 --> 1:09:35.400
<v Speaker 6>to disappear because what he really wants is to take

1:09:35.479 --> 1:09:37.200
<v Speaker 6>IIG public as a company.

1:09:39.000 --> 1:09:42.559
<v Speaker 5>We'll look at a different financing strategies. It depends on

1:09:42.680 --> 1:09:47.880
<v Speaker 5>our options. Seth demanded that i cause the billing system

1:09:47.920 --> 1:09:50.920
<v Speaker 5>to generate between four hundred thousand to two million dollars

1:09:50.960 --> 1:09:54.040
<v Speaker 5>in various occasions. This is in addition to the normal

1:09:54.120 --> 1:09:57.320
<v Speaker 5>daily revenue generation. At first, Seth told me that we

1:09:57.320 --> 1:10:01.280
<v Speaker 5>would credit the people we were double billing to generate revenues.

1:10:01.320 --> 1:10:03.920
<v Speaker 5>We were charging credit cards that had already been charged

1:10:03.960 --> 1:10:07.040
<v Speaker 5>for the same purchase. Then later he told me not

1:10:07.120 --> 1:10:11.280
<v Speaker 5>to credit anyone unless they called to complain. Ron Chow,

1:10:11.760 --> 1:10:14.720
<v Speaker 5>IIG chief technical officer.

1:10:17.439 --> 1:10:20.479
<v Speaker 6>Ron Chow says Warshovsky got furious and called him a

1:10:20.520 --> 1:10:23.320
<v Speaker 6>racist slur when he refused to keep double and triple

1:10:23.320 --> 1:10:27.840
<v Speaker 6>billing customers to meet falsified profit margins. Chow left the

1:10:27.880 --> 1:10:32.360
<v Speaker 6>company when he realized Worshovsky's promises to reimburse customers were

1:10:32.400 --> 1:10:33.400
<v Speaker 6>allegedly false.

1:10:34.960 --> 1:10:37.040
<v Speaker 4>I didn't want to participate in what Seth wanted me

1:10:37.120 --> 1:10:37.400
<v Speaker 4>to do.

1:10:39.680 --> 1:10:43.200
<v Speaker 6>Warshovsky claims he never said the slur, but admitted he

1:10:43.240 --> 1:10:47.960
<v Speaker 6>can be quote difficult at times. Seth Warshovsky has also

1:10:48.120 --> 1:10:50.880
<v Speaker 6>just settled a lawsuit with three of his employees for

1:10:51.000 --> 1:10:54.560
<v Speaker 6>supposedly doing to him what he supposedly did to Ian Eisenberg,

1:10:54.720 --> 1:10:59.880
<v Speaker 6>first jacking IEG's business model and technology while absconding with

1:11:00.080 --> 1:11:02.920
<v Speaker 6>his client list of email addresses for their own use.

1:11:04.920 --> 1:11:08.920
<v Speaker 5>I'm pretty aggressive, high energy. I'm a difficult guy to

1:11:08.960 --> 1:11:09.360
<v Speaker 5>work for.

1:11:11.640 --> 1:11:14.880
<v Speaker 6>Seth Wwarshowski says any upcharging was a result of a

1:11:14.960 --> 1:11:18.879
<v Speaker 6>computer glitch that only affected customers at one IIG site,

1:11:19.400 --> 1:11:23.360
<v Speaker 6>Voyur Dorm, which bills itself as a real life adult

1:11:23.479 --> 1:11:27.599
<v Speaker 6>version of The Truman Show, with forty seven cameras, seven women,

1:11:28.000 --> 1:11:32.800
<v Speaker 6>one house. He claims that Voyer Dorm customers were the

1:11:32.840 --> 1:11:35.479
<v Speaker 6>only ones affected by the glitch, which build their cards

1:11:35.479 --> 1:11:38.240
<v Speaker 6>five times a day for a fifty day period, and

1:11:38.280 --> 1:11:41.200
<v Speaker 6>that all of the affected customers had been reimbursed now.

1:11:42.320 --> 1:11:45.960
<v Speaker 6>Sabrina Litton, who worked customer service for IIG, said in

1:11:46.000 --> 1:11:49.320
<v Speaker 6>an affidavit that she was instructed to not return hundreds

1:11:49.320 --> 1:11:53.240
<v Speaker 6>of calls from angry overbuild customers. She also did not

1:11:53.280 --> 1:11:56.280
<v Speaker 6>return a call from The Washington Post about the affidavit.

1:11:56.800 --> 1:12:00.519
<v Speaker 6>Another former customer service technician, Matthew Fisher, said in the

1:12:00.560 --> 1:12:04.000
<v Speaker 6>affidavit that IEG employees were told to use the computer

1:12:04.120 --> 1:12:09.200
<v Speaker 6>glitch excuse to complaining customers. Employees say the company is

1:12:09.280 --> 1:12:14.400
<v Speaker 6>not even solvent. Their paychecks keep bouncing. Many of iig's

1:12:14.479 --> 1:12:16.240
<v Speaker 6>vendors are suing IIG.

1:12:18.520 --> 1:12:21.920
<v Speaker 28>Seth would say, fuck up, go find another vendor. There

1:12:22.000 --> 1:12:24.960
<v Speaker 28>is always another vendor, and in many cases he's right.

1:12:25.439 --> 1:12:28.000
<v Speaker 28>Many times there is another vendor. But it became a

1:12:28.040 --> 1:12:31.439
<v Speaker 28>problem over time because we're to have gotten around about this.

1:12:31.960 --> 1:12:37.280
<v Speaker 28>We were being blacklisted like by recruiting agencies. Bert Wrightsma,

1:12:37.840 --> 1:12:40.280
<v Speaker 28>former chief operating officer, IEG.

1:12:42.040 --> 1:12:46.040
<v Speaker 5>Our books aren't one hundred percent in order. It's not perfect.

1:12:46.720 --> 1:12:47.759
<v Speaker 4>We need to get it together.

1:12:50.320 --> 1:12:53.520
<v Speaker 6>While Time and The Wall Street Journal have been unquestioningly

1:12:53.600 --> 1:12:57.479
<v Speaker 6>printing Warshovski's claims that IEG is making fifty million dollars

1:12:57.520 --> 1:13:00.600
<v Speaker 6>in revenue a year, Burt wrights must says that's a

1:13:00.640 --> 1:13:05.000
<v Speaker 6>total fabrication. It's more like ten million, and only from

1:13:05.000 --> 1:13:10.200
<v Speaker 6>the upcharging scam Sethwarshovsky responds that there's more revenue streams

1:13:10.320 --> 1:13:14.120
<v Speaker 6>not under Reiitzma's command. He also claims they're not just

1:13:14.200 --> 1:13:18.439
<v Speaker 6>making money off sex sites, comparing IIG to the Discovery Channel.

1:13:19.280 --> 1:13:23.120
<v Speaker 6>In addition to live online psychics, IIG also runs a

1:13:23.160 --> 1:13:26.559
<v Speaker 6>home loan qualification site called zero Down and a site

1:13:26.600 --> 1:13:30.320
<v Speaker 6>called Online Surgery that Warshovsky says is the most popular

1:13:30.360 --> 1:13:35.280
<v Speaker 6>of IEG's non sex sites. Online Surgery webcasts live from

1:13:35.320 --> 1:13:40.440
<v Speaker 6>a plastic surgeon's office, showing procedures like breast augmentation, liposection,

1:13:40.720 --> 1:13:45.719
<v Speaker 6>and facelifts in live gory detail on laggy, grainy video.

1:13:47.200 --> 1:13:51.040
<v Speaker 6>IIG gets another wave of bad publicity for a site

1:13:51.160 --> 1:13:55.080
<v Speaker 6>called Our First Time, where two teenage virgins are supposed

1:13:55.080 --> 1:13:57.040
<v Speaker 6>to have sex for the first time on a webcam

1:13:57.080 --> 1:14:01.040
<v Speaker 6>broadcast right when they turn eighteen. The problem is that

1:14:01.080 --> 1:14:04.760
<v Speaker 6>the virgins are actually hired actors and the whole Our

1:14:04.840 --> 1:14:08.800
<v Speaker 6>First Time dot com site is a fake. The scandal

1:14:08.960 --> 1:14:12.639
<v Speaker 6>climaxes with the two virgins pulling out of the endeavor

1:14:12.720 --> 1:14:16.040
<v Speaker 6>and the Our First Time site redirecting to fundraising for

1:14:16.080 --> 1:14:20.559
<v Speaker 6>an independent film. Our First Time was the brainchild of

1:14:20.600 --> 1:14:24.479
<v Speaker 6>a director named Ken Tipton, a scripted prank to get

1:14:24.520 --> 1:14:27.439
<v Speaker 6>attention and help him solicit funding for a film he

1:14:27.479 --> 1:14:32.719
<v Speaker 6>wants to make. Warshowsky is furious he's been duped. After

1:14:32.800 --> 1:14:35.719
<v Speaker 6>Ken Tipton outs himself as the creator of Our First

1:14:35.760 --> 1:14:38.360
<v Speaker 6>Time and the whole thing is a fake, he writes

1:14:38.360 --> 1:14:41.760
<v Speaker 6>an editorial for indie film Rag Film Threat asking for

1:14:41.880 --> 1:14:44.439
<v Speaker 6>money to make his passion project.

1:14:46.240 --> 1:14:49.400
<v Speaker 14>Based on the true story of how I lost my family,

1:14:49.840 --> 1:14:53.000
<v Speaker 14>a multimillion dollar chain of video stores, and almost my

1:14:53.080 --> 1:14:56.559
<v Speaker 14>life fighting a group of religious fanatics and a corrupt

1:14:56.560 --> 1:15:01.280
<v Speaker 14>city prosecutor over Martin Scorsese's controversial film The Last Temptation

1:15:01.360 --> 1:15:05.200
<v Speaker 14>of Christ. Ken Tipton, director.

1:15:07.320 --> 1:15:10.800
<v Speaker 6>Incredibly enough, Ken Tipton did get to make his independent

1:15:10.840 --> 1:15:14.479
<v Speaker 6>movie off the notoriety of his our first time publicity gambit.

1:15:15.240 --> 1:15:18.840
<v Speaker 6>His passion project movie is called Heart of the Beholder.

1:15:19.680 --> 1:15:21.880
<v Speaker 6>It came out in two thousand and five, and it's

1:15:21.920 --> 1:15:24.679
<v Speaker 6>about a video store guy fighting a First Amendment battle

1:15:24.800 --> 1:15:28.280
<v Speaker 6>over his right to rent out copies of Martin Scorsese's

1:15:28.280 --> 1:15:31.559
<v Speaker 6>The Last Temptation of Christ to customers in Saint Louis

1:15:32.000 --> 1:15:35.400
<v Speaker 6>against the objections of local Christian fundamentalists.

1:15:37.080 --> 1:15:40.160
<v Speaker 5>We're a very aggressive company, but we don't want to

1:15:40.240 --> 1:15:42.120
<v Speaker 5>provide illegitimate content.

1:15:44.400 --> 1:15:48.719
<v Speaker 6>Even Sethwarshowski has some boundaries about what he's willing to sell.

1:15:49.560 --> 1:15:53.920
<v Speaker 6>No beast reality, no snuff films. He shit talks sixty

1:15:53.960 --> 1:15:57.080
<v Speaker 6>Minutes for airing a video of doctor Kavorkian assisting in

1:15:57.160 --> 1:16:00.599
<v Speaker 6>a death. Deth says IIG turned it down on an

1:16:00.600 --> 1:16:04.800
<v Speaker 6>ethical basis and call sixty Minutes disgusting for airing it.

1:16:06.240 --> 1:16:10.880
<v Speaker 6>Hyperpor Insights like IIG are allegedly only getting two paying

1:16:10.920 --> 1:16:15.280
<v Speaker 6>customers out of every one thousand Curiosity clicks. They don't

1:16:15.320 --> 1:16:19.439
<v Speaker 6>retain the customers they do get. They're continually bleeding out

1:16:19.439 --> 1:16:22.799
<v Speaker 6>customers who sign up out of curiosity and quit after.

1:16:22.640 --> 1:16:23.320
<v Speaker 7>A few months.

1:16:24.360 --> 1:16:27.840
<v Speaker 6>But once customers have given IIG their credit card info,

1:16:28.160 --> 1:16:30.960
<v Speaker 6>they have a hard time getting it back, even with

1:16:31.040 --> 1:16:34.599
<v Speaker 6>promotional tactics like offering the ill gotten Pam and Tommy

1:16:34.640 --> 1:16:38.160
<v Speaker 6>sex tape for free with every signup. IIG is not

1:16:38.400 --> 1:16:42.559
<v Speaker 6>the Seattle Silicon Valley success story. Sethwarshowsky has been making

1:16:42.600 --> 1:16:43.160
<v Speaker 6>it out to be.

1:16:45.360 --> 1:16:48.439
<v Speaker 5>I'm human, I'm a sensitive guy.

1:16:49.560 --> 1:16:53.120
<v Speaker 6>IIG is a proxy for all tech companies that come

1:16:53.200 --> 1:16:56.720
<v Speaker 6>after it, getting a bunch of venture capital investment and

1:16:56.880 --> 1:16:59.400
<v Speaker 6>jacking up their valuation for a few years to go

1:16:59.439 --> 1:17:02.640
<v Speaker 6>public and sell before everyone notices they've been cooking the

1:17:02.640 --> 1:17:07.520
<v Speaker 6>books with speculative value. It's Enron's all the way down.

1:17:08.640 --> 1:17:11.880
<v Speaker 5>We would never do anything that wasn't one hundred percent

1:17:12.040 --> 1:17:15.439
<v Speaker 5>above board. We may slow pay someone if we're having

1:17:15.479 --> 1:17:20.440
<v Speaker 5>a cash crunch, but double billing people deliberately, never ever.

1:17:21.120 --> 1:17:22.719
<v Speaker 4>We wouldn't jeopardize our business.

1:17:24.960 --> 1:17:28.000
<v Speaker 6>By two thousand, there's a full probe of IEG from

1:17:28.040 --> 1:17:33.000
<v Speaker 6>the IRS and the FBI. Sethwarshovski is being investigated for

1:17:33.120 --> 1:17:37.479
<v Speaker 6>wire fraud and money laundering via foreign bank accounts. A

1:17:37.520 --> 1:17:40.559
<v Speaker 6>federal grand jury in Seattle subpoenas the sealed file for

1:17:40.600 --> 1:17:43.400
<v Speaker 6>a nineteen ninety eight case where a former girlfriend of

1:17:43.439 --> 1:17:48.240
<v Speaker 6>Worshovskis sued him for alleged domestic violence. He allegedly tried

1:17:48.280 --> 1:17:51.160
<v Speaker 6>to choke her and insinuated he could have her and

1:17:51.200 --> 1:17:54.320
<v Speaker 6>her daughter killed. They settled out of court and she

1:17:54.400 --> 1:17:57.599
<v Speaker 6>took out her restraining order against him. He tries to

1:17:57.680 --> 1:17:59.960
<v Speaker 6>sue the Seattle Weekly for covering the store.

1:18:02.120 --> 1:18:04.320
<v Speaker 5>She thought that maybe she could get some money out

1:18:04.360 --> 1:18:06.880
<v Speaker 5>of me if you call the Seattle court.

1:18:07.680 --> 1:18:08.919
<v Speaker 4>Case dropped.

1:18:11.120 --> 1:18:14.000
<v Speaker 6>Warshovsky claims the criminal case in Las Vegas that he

1:18:14.040 --> 1:18:18.120
<v Speaker 6>copped for battery constituting domestic violence over trying to choke

1:18:18.160 --> 1:18:21.440
<v Speaker 6>out his ex girlfriend in Las Vegas has also been dismissed.

1:18:22.040 --> 1:18:26.240
<v Speaker 6>The Clark County, Nevada District Attorney says Warshovsky was charged,

1:18:26.560 --> 1:18:29.160
<v Speaker 6>but his lawyer negotiated a plea deal with the district

1:18:29.160 --> 1:18:32.840
<v Speaker 6>attorney a five hundred dollars donation to be split between

1:18:32.880 --> 1:18:36.559
<v Speaker 6>a domestic violence shelter and a law enforcement tip line.

1:18:37.240 --> 1:18:41.519
<v Speaker 6>The DA says Seth Wwarshovsky is required to attend Impulse

1:18:41.520 --> 1:18:44.679
<v Speaker 6>Control counseling and quote stay out of trouble.

1:18:47.120 --> 1:18:50.479
<v Speaker 1>Seth is the most litigious person I know, and he

1:18:50.600 --> 1:18:53.720
<v Speaker 1>has a way of twisting things to his perspective. It's

1:18:53.720 --> 1:18:56.840
<v Speaker 1>a real uphill battle to try and bring some acceptance

1:18:56.920 --> 1:18:59.800
<v Speaker 1>and respect to my industry, and he makes it all

1:18:59.800 --> 1:19:03.040
<v Speaker 1>that much more difficult. I would not do business with

1:19:03.120 --> 1:19:06.800
<v Speaker 1>him again for a lot of reasons. That's about as

1:19:06.800 --> 1:19:07.439
<v Speaker 1>far as I can go.

1:19:09.479 --> 1:19:12.479
<v Speaker 5>People are confused and maybe a little bit jealous about

1:19:12.479 --> 1:19:13.639
<v Speaker 5>how successful we've been.

1:19:15.880 --> 1:19:19.880
<v Speaker 6>In two thousand, the hearings for the Child Online Protection Act,

1:19:20.160 --> 1:19:24.479
<v Speaker 6>or COPA are held in California courts. COPA aims to

1:19:24.520 --> 1:19:30.080
<v Speaker 6>restrict material harmful to minors online. They consider the material

1:19:30.160 --> 1:19:33.360
<v Speaker 6>harmful to miners as anything that can be interpreted as

1:19:33.360 --> 1:19:38.600
<v Speaker 6>sexual content, including all images of bare breasts. The guidelines

1:19:38.640 --> 1:19:43.600
<v Speaker 6>are vague, saying any site that quote contemporary community standards

1:19:43.640 --> 1:19:48.280
<v Speaker 6>would agree involves quote prurient interests must be restricted so

1:19:48.439 --> 1:19:52.280
<v Speaker 6>miners can't access them. Some porn sites add a click

1:19:52.320 --> 1:19:55.040
<v Speaker 6>through screen that asks the computer user to confirm they

1:19:55.040 --> 1:19:59.000
<v Speaker 6>are eighteen before entering the site, but no secondary proof

1:19:59.040 --> 1:20:03.320
<v Speaker 6>of identity or AG which is required. Danny Ash testifies

1:20:03.360 --> 1:20:06.559
<v Speaker 6>and explains the adult web at the third COPA hearing

1:20:06.600 --> 1:20:07.360
<v Speaker 6>in San Jose.

1:20:09.720 --> 1:20:12.920
<v Speaker 1>There are millions of people online and each and every

1:20:12.920 --> 1:20:16.120
<v Speaker 1>one of us has a slightly different definition of pornography,

1:20:16.439 --> 1:20:19.800
<v Speaker 1>a different sense of morality, and different ideas about what

1:20:19.960 --> 1:20:23.800
<v Speaker 1>may be harmful to children. The diversity of our opinions

1:20:23.960 --> 1:20:27.400
<v Speaker 1>makes the task of identifying what's to be considered adult

1:20:27.680 --> 1:20:31.000
<v Speaker 1>difficult and compelling those who have been labeled to comply

1:20:31.520 --> 1:20:35.559
<v Speaker 1>nearly impossible. As we all know, every attempt thus far

1:20:35.720 --> 1:20:39.760
<v Speaker 1>to label and regulate adult material online has met with

1:20:39.880 --> 1:20:43.680
<v Speaker 1>vigorous litigation and ended up stalled in the courts.

1:20:46.040 --> 1:20:49.759
<v Speaker 6>Danny Ash suggests some potential ways to regulate adult content

1:20:49.840 --> 1:20:54.679
<v Speaker 6>on computers without overt censorship. She also suggests ways adult

1:20:54.680 --> 1:20:58.439
<v Speaker 6>creators could be protected against content theft and password sharing.

1:20:59.240 --> 1:21:03.080
<v Speaker 6>Her big idea is a new domain, dot kids that

1:21:03.200 --> 1:21:07.280
<v Speaker 6>will house all children's content. Honestly, that is still a

1:21:07.320 --> 1:21:09.120
<v Speaker 6>really good idea dot Kids.

1:21:11.320 --> 1:21:14.840
<v Speaker 13>I am often asked to comment on Internet dangers. My

1:21:15.000 --> 1:21:18.519
<v Speaker 13>answer may surprise you. The biggest danger on the Internet

1:21:18.520 --> 1:21:24.280
<v Speaker 13>today is not pedophiles. It is misinformation and disinformation. I

1:21:24.320 --> 1:21:26.760
<v Speaker 13>think it is of critical importance to teach kids how

1:21:26.760 --> 1:21:31.680
<v Speaker 13>to evaluate information in whatever form it appears. Gene are

1:21:31.760 --> 1:21:35.719
<v Speaker 13>more poly net Mom.

1:21:35.920 --> 1:21:40.400
<v Speaker 6>Other testimonies come from webmasters behind kids websites, like yehooligans.

1:21:40.920 --> 1:21:44.519
<v Speaker 6>Everyone emphasizes that there's really no way to control what

1:21:44.560 --> 1:21:47.760
<v Speaker 6>your kids do online, but that it's for parents and

1:21:47.800 --> 1:21:51.920
<v Speaker 6>not the government, to figure it out. They also emphasize

1:21:51.920 --> 1:21:56.400
<v Speaker 6>the idea of media literacy. Rather than restricting the flow

1:21:56.520 --> 1:21:59.920
<v Speaker 6>of images and ideas, kids whose minds are being shaped

1:21:59.920 --> 1:22:04.200
<v Speaker 6>online must learn how to judge those images and ideas critically.

1:22:05.080 --> 1:22:07.760
<v Speaker 7>Whoops, it's not just.

1:22:07.760 --> 1:22:11.400
<v Speaker 6>The wide availability of sexual images that people worry about.

1:22:11.800 --> 1:22:16.080
<v Speaker 6>It's that the Internet provides plentiful opportunities for anonymous communication

1:22:16.560 --> 1:22:18.679
<v Speaker 6>between children and adult creeps.

1:22:20.600 --> 1:22:24.120
<v Speaker 23>The Internet provides a form of anonymity that provides opportunity

1:22:24.160 --> 1:22:26.599
<v Speaker 23>for people to say and do things they probably would

1:22:26.600 --> 1:22:30.000
<v Speaker 23>not face to face. It also provides an almost endless

1:22:30.000 --> 1:22:34.080
<v Speaker 23>supply of those types of opportunities. For adults, these high

1:22:34.160 --> 1:22:36.880
<v Speaker 23>risk areas are more a matter of personal choice, but

1:22:37.000 --> 1:22:43.000
<v Speaker 23>for children, the danger is real. Dan Jude Security Software Commissions.

1:22:45.080 --> 1:22:49.040
<v Speaker 6>Even with software that monitors content, there's no fail safe

1:22:49.080 --> 1:22:52.719
<v Speaker 6>way to stop kids from talking to strangers online, especially

1:22:52.720 --> 1:22:55.000
<v Speaker 6>once they think are other kids that are really adults

1:22:55.000 --> 1:22:59.400
<v Speaker 6>with malicious intent to groom them sexually. Some net nannies

1:22:59.439 --> 1:23:03.639
<v Speaker 6>allow the parents to monitor children's online interactions, but critics

1:23:03.680 --> 1:23:08.480
<v Speaker 6>think such tools are a violation of a child's personal privacy.

1:23:09.520 --> 1:23:12.800
<v Speaker 9>The problem and great concern of law enforcement is that

1:23:13.120 --> 1:23:16.839
<v Speaker 9>before the Internet, law enforcement was able to protect children

1:23:16.960 --> 1:23:22.960
<v Speaker 9>and the community in the parks, libraries, shopping malls and streets. Now,

1:23:23.120 --> 1:23:26.280
<v Speaker 9>with the Internet, we have no law enforcement on the

1:23:26.320 --> 1:23:31.679
<v Speaker 9>super Highway. Detective Derek Roland, Huntington Beach Police Department.

1:23:34.120 --> 1:23:37.679
<v Speaker 1>I'm out of the modeling business for good. The site

1:23:37.880 --> 1:23:40.160
<v Speaker 1>is all I do now.

1:23:40.800 --> 1:23:44.040
<v Speaker 4>It may replace starting magazines or peep shows. That's about it.

1:23:45.040 --> 1:23:47.160
<v Speaker 4>I mean, you can't fall in love with a computer.

1:23:48.200 --> 1:23:48.840
<v Speaker 4>I don't think.

1:23:51.160 --> 1:23:54.639
<v Speaker 6>But while the Child Online Protection Act passes in nineteen

1:23:54.760 --> 1:23:58.439
<v Speaker 6>ninety eight, it is never enforced. It gets stuck in

1:23:58.560 --> 1:24:01.760
<v Speaker 6>follow up rounds of litigation for ten years and eventually

1:24:01.800 --> 1:24:07.280
<v Speaker 6>receives a permanent injunction, rendering it unconstitutional. So sexual content

1:24:07.439 --> 1:24:12.000
<v Speaker 6>continues to proliferate freely online and with it new ways

1:24:12.000 --> 1:24:15.920
<v Speaker 6>for creators like Danny ash and con men like Sethwarshowsky

1:24:16.320 --> 1:24:27.080
<v Speaker 6>to monetize it. While Jenna Jamison has been watching the

1:24:27.120 --> 1:24:30.479
<v Speaker 6>sex business changing from the sidelines, she will jump in

1:24:30.680 --> 1:24:34.200
<v Speaker 6>soon and make a big splash with her own personalized

1:24:34.240 --> 1:24:40.280
<v Speaker 6>internet brand. Club Jenna. Will Jenna survive the technological jump

1:24:40.320 --> 1:24:43.559
<v Speaker 6>into a big new pool of customers or will she

1:24:43.720 --> 1:24:47.320
<v Speaker 6>land with a splat on the hot concrete. Find out

1:24:47.439 --> 1:25:04.120
<v Speaker 6>next time on Jena World. Next time on Jenna World

1:25:04.240 --> 1:25:09.240
<v Speaker 6>Episode eight, Club Jenna, Jenna falls in lust with Tommy

1:25:09.320 --> 1:25:13.240
<v Speaker 6>Lee and then falls in love again with porn impresario

1:25:13.360 --> 1:25:17.639
<v Speaker 6>Jay Gerdina. Together, Jay and Jenna will launch her biggest

1:25:17.720 --> 1:25:23.240
<v Speaker 6>venture yet, a new internet adult entertainment company called Club Jenna.

1:25:25.920 --> 1:25:30.519
<v Speaker 6>Jenna World is an iHeartRadio production executive produced by Anna

1:25:30.560 --> 1:25:35.719
<v Speaker 6>Hosnier and Becco Ramos supervising, produced by Bei Wang, produced

1:25:35.720 --> 1:25:40.559
<v Speaker 6>by Victor Wright, script editing by Jonathan Mills, engineered by

1:25:40.560 --> 1:25:46.439
<v Speaker 6>Graham Gibson, and edited by Rory Gagan. Today's episode of

1:25:46.520 --> 1:25:50.599
<v Speaker 6>Jenna World featured Lauren ser Video as Jenna Jamison, Jamie

1:25:50.640 --> 1:25:55.240
<v Speaker 6>Loftus as Danny ash Bridger, Winneger as David James, Paul

1:25:55.320 --> 1:26:00.280
<v Speaker 6>Dautchny as Bob Guccioni, Andrew Tiya Sethwarshowski and Ron check Wow,

1:26:00.800 --> 1:26:04.960
<v Speaker 6>Josh Fadom as Jerry Springer, Mike Carlson as Wayne Allen,

1:26:05.760 --> 1:26:10.479
<v Speaker 6>Noah Garfinkel as Stephen Hirsch, Sara Sobsey as Anonymous Vivid Girl,

1:26:11.200 --> 1:26:15.479
<v Speaker 6>Blake Wexler as Ray Solar, Grace Spellman is Wendy Simpson,

1:26:16.320 --> 1:26:20.960
<v Speaker 6>Alison Stephenson as Alison Grippo, Elaine Con as Barbara Bailey,

1:26:21.760 --> 1:26:26.160
<v Speaker 6>Matthew Golden as Tim Elliott, Lindsay Normington as Stephanie Martin,

1:26:26.760 --> 1:26:30.960
<v Speaker 6>Mike Perry as Jason King, Rob Patrick as Mark h bell,

1:26:31.680 --> 1:26:36.599
<v Speaker 6>Anita Flores as Eileen Kent, and Jean Armer, Polly Derek

1:26:36.680 --> 1:26:41.240
<v Speaker 6>as Derek Newman, Gabe Bernini as Steve Becker, and Dan Jude,

1:26:41.880 --> 1:26:45.800
<v Speaker 6>Leah Rose as Laura the Cam Girl, Chris Wade as Rod,

1:26:45.880 --> 1:26:51.160
<v Speaker 6>Colin rex Will as Jeffrey rayport A, Mere Chowkree as

1:26:51.240 --> 1:26:56.800
<v Speaker 6>Joseph Cowatty, Elaine Carrey as Madeleine Altman, Will Mendiker as

1:26:56.880 --> 1:27:02.479
<v Speaker 6>Christopher Pettis, Sarah Johnson is Cindy Margolis, Grant Creator as

1:27:02.520 --> 1:27:07.639
<v Speaker 6>Jeff Bridges and Tim Robbins, Alex Papadimus as Assistant US Attorney,

1:27:07.680 --> 1:27:13.000
<v Speaker 6>Bartlett mort Burke as Bert Ritzma Leo Rose as Laura

1:27:13.040 --> 1:27:17.160
<v Speaker 6>the Cam Girl, y'ah See Slick as Ginger Lynn Allen,

1:27:18.120 --> 1:27:22.720
<v Speaker 6>Alex Gouter as Ken Tipton, and Ben Bolan as Detective

1:27:22.840 --> 1:27:23.759
<v Speaker 6>Derek Roland,