WEBVTT - Episode 6: Knocking on the Door of a Porn Empire

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<v Speaker 1>Pushkin, Welcome back. Here's your reminder. This is a series

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<v Speaker 1>about power and money and the porn industry. Some parts

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<v Speaker 1>of this series are very much for adults. We should

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<v Speaker 1>warn you that this episode contains very graphic depictions of

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<v Speaker 1>a type of pornography that some people might find upsetting.

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<v Speaker 1>In our last episode, we told you all about the

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<v Speaker 1>way mine gee came up against a wall of reckoning.

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<v Speaker 1>The giant of online porn, the company that has dominated

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<v Speaker 1>this industry more than any other, was finally cut down

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<v Speaker 1>to size. It was cut down by two of the

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<v Speaker 1>most everyday businesses you could imagine, Visa and MasterCard, huge

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<v Speaker 1>payments companies that seem to moon as the regulators of

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<v Speaker 1>world porn. But here's the puzzle for this episode. While

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<v Speaker 1>mine geek took down millions of videos, its biggest rival

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<v Speaker 1>seemed untouched by the whole affair. This other company serves

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<v Speaker 1>more pawn to more people in the world today than

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<v Speaker 1>mine Geek, ever did. Not only that, it makes mine

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<v Speaker 1>geek look like a beacon of transparency, just listen to

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<v Speaker 1>its extraordinarily forgettable name. Wgc Z. It stands for Web

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<v Speaker 1>Group Czech Republic. You know, because it's a web group

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<v Speaker 1>in the Czech Republic. Wgcz's tube sites x videos and

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<v Speaker 1>xn xx host about six million visits a month. That's

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<v Speaker 1>roughly the same as Twitter, and much more than mine

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<v Speaker 1>geek's flagship site, Pornhub. But you're probably hearing about WGCZ,

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<v Speaker 1>the owner of all those popular sites. For the first time,

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<v Speaker 1>we've discovered that in the pornography world, the competition between

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<v Speaker 1>the two companies, mine Geek and WGCZ speers. They're like

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<v Speaker 1>rival clans, the Montagues and Capellets of porn. Day by

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<v Speaker 1>day they fight to dominate the industry, mostly for money,

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<v Speaker 1>sometimes just out of spite. And despite having similar origins,

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<v Speaker 1>these two powerful porn empires have taken very different paths.

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<v Speaker 1>They both started out as pirates. But there is a

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<v Speaker 1>time when the pirate ship comes into port and starts

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<v Speaker 1>to improve the island that it's ported at, and it

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<v Speaker 1>ceases to be the pirate. Mine Geek seased to be

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<v Speaker 1>the pirate a long time ago. They're a very different

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<v Speaker 1>kind of company. This is Kelly Holland she knows this

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<v Speaker 1>story well. She was there when the tube sites first

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<v Speaker 1>took a swing at the foundations of the porn industry.

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<v Speaker 1>If you go to Montreal. They've got a seven or

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<v Speaker 1>eight story building right on the freeway with their name

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<v Speaker 1>plastered on the side, and they've got huge departments. I

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<v Speaker 1>mean they're running like any large corporation. WGCZ is running

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<v Speaker 1>out of a throwback Soviet block apartment building in Prague

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<v Speaker 1>and the neighbors complained because they were shooting porno in

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<v Speaker 1>an apartment on the second floor and the neighbors could

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<v Speaker 1>hear it. I mean, they're still operating as if they

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<v Speaker 1>were a shadow company. While Visa MasterCard came down hard

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<v Speaker 1>on mine Geek for failing to police content, WTCZ somehow

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<v Speaker 1>dodgedad bullet. If anything, this little known check company has

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<v Speaker 1>been the winner and the war on mine Geek. This

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<v Speaker 1>is the story of wide paced to stay hidden. If

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<v Speaker 1>you're in the business reporn. I'm Patricia Neilson. He's Alex

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<v Speaker 1>Barker from Pushkin Industries in the Financial Times. This is

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<v Speaker 1>Hot Money, Act one wg WHO. We're in the dusty

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<v Speaker 1>hills of the San Fernando Valley in the northwest, outskirts

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<v Speaker 1>of La Kelly Holland is an old school feminist and

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<v Speaker 1>that's actually withdrew her to make porn in the first place.

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<v Speaker 1>For her, back in the nineties, porn was a way

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<v Speaker 1>to stick it to traditional American values that she found stifling.

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<v Speaker 1>What became apparent to me fairly early on was a

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<v Speaker 1>it was a renegade culture. It was a radical culture.

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<v Speaker 1>It was very disruptive. Long story short, Kelly wanted in. First,

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<v Speaker 1>she made a documentary about porn. Bruce Springsteen had just

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<v Speaker 1>come out with Born in the USA, I think, so

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<v Speaker 1>we decided we would call it Porn in the USA,

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<v Speaker 1>and that's how it started. She then went on to

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<v Speaker 1>shoot the real thing. Eventually she became one of the

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<v Speaker 1>industry's first big female directors. Well things don't always work

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<v Speaker 1>out like they should. Well here's Michael. Now I got

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<v Speaker 1>the same working upstairs in the hall closet final clothes. Well,

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<v Speaker 1>that's great. She made such a strong name for herself

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<v Speaker 1>that in two thousand and six she was headhunted by

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<v Speaker 1>one of the most iconic brands in porn, Penthouse. At

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<v Speaker 1>that point, tube sites were just getting started, and as

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<v Speaker 1>they ripped through the adult industry, Kelly kept rising through

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<v Speaker 1>the ranks of Penthouse. When a boss decided to leave,

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<v Speaker 1>he asked Kelly to fill his shoes he said, well,

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<v Speaker 1>I'll put it to you this way, Holland, You're not

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<v Speaker 1>an easy person to get along with. So if I

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<v Speaker 1>have to hire somebody to be president of Penthouse, they're

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<v Speaker 1>probably not going to like you. And if they want

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<v Speaker 1>to fire you, I'm not going to get in their

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<v Speaker 1>way because I respect verticals. So what's your answer? And

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<v Speaker 1>I went, gosh, I guess put like that. That's how

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<v Speaker 1>I actually became president. But as a business leader, Kelly

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<v Speaker 1>faced new challenges. As her old boss had predicted did.

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<v Speaker 1>She soon started clashing with the CEO of Penthouse. To

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<v Speaker 1>get rid of him, Kelly saw only one solution. She

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<v Speaker 1>had to take over the whole thing. Kelly succeeded, sort of.

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<v Speaker 1>She took over Penthouse in twenty sixteen, but only with

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<v Speaker 1>the help of what she jokingly called street corner gangster

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<v Speaker 1>debt at a twenty three percent interest rate. The thing is,

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<v Speaker 1>Kelly didn't get on with the lenders either. The business struggled,

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<v Speaker 1>and by twenty eighteen, just two years after she took over,

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<v Speaker 1>she filed for bankruptcy. Penthouse was once again for sale.

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<v Speaker 1>So a bankruptcy auction is not like a Christie's auction

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<v Speaker 1>where you get that very subtle nod where you get

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<v Speaker 1>the finger up or the placard comes up. The courtroom

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<v Speaker 1>was packed, It was already hot in Los Angeles, and

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<v Speaker 1>I think people were sweating a little bit. Kelly remember

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<v Speaker 1>standing at the back, too nervous to sit down. The

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<v Speaker 1>clown section had to be shaken out first, and then

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<v Speaker 1>it came down to the serious bidders, and that was

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<v Speaker 1>very clearly mine geek and WGCZ mine geek. Of course

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<v Speaker 1>I knew, and I knew them all the way back

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<v Speaker 1>into the man one times because they were so relevant

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<v Speaker 1>in driving the changes in business, and they were very

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<v Speaker 1>relevant in affecting my broadcast. I didn't know anything about WGCZ.

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<v Speaker 1>It took me a day just to remember the four letters. Wait,

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<v Speaker 1>w what WGCZ or w GCZ A corporate brand so

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<v Speaker 1>anonymous that it hides in plain sight. Remember it owns

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<v Speaker 1>x videos, the world's most highly traffic pawn site by

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<v Speaker 1>some distance. It has about one billion more visits a

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<v Speaker 1>month than pawn Hub today. At the auction that day,

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<v Speaker 1>wgcz's representative was Robert Seafort. Kelly remembers that Robert wore

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<v Speaker 1>baggy jeans and a T shirt with holes. He stood

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<v Speaker 1>out among all the suits, and he was trying to

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<v Speaker 1>become her new boss. Kelly asked a colleague about him.

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<v Speaker 1>I said, who is that? And they said X videos.

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<v Speaker 1>I said what he said, Well, you know, we went

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<v Speaker 1>over the numbers with him. He doesn't know anything about

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<v Speaker 1>the company, doesn't know anything about the numbers. The courtroom

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<v Speaker 1>was tense and quiet. This battle was about more than

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<v Speaker 1>the fate of Penthouse. It was a bare knuckle fight

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<v Speaker 1>for pride between the two heavyweights of the porn industry.

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<v Speaker 1>It was very obvious that mine Geek and wgc were

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<v Speaker 1>going to bid against each other. It was who's got

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<v Speaker 1>the largest penis here kind of thing, and they hate

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<v Speaker 1>each other, so it was all about that. So they

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<v Speaker 1>were bidding against each other. And I don't know why

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<v Speaker 1>I felt that WGCZ in that moment, was a better

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<v Speaker 1>choice than mine Geek. In retrospect, I was dead wrong,

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<v Speaker 1>but I was on a dead wrong running streak at

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<v Speaker 1>that point, because you know, every choice I'd made that

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<v Speaker 1>year had been wrong. The bidding continued, Robert Seafort for

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<v Speaker 1>WGCZ and a guy named Scott Justice for mine Geek.

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<v Speaker 1>He would say here, representing mine Geek, Mine geek bids

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<v Speaker 1>nine million, Sit back down, Seafort slouching in the corner,

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<v Speaker 1>wgc Z nine point two. The judge would say what

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<v Speaker 1>at nine point two? WGCZ I'm sorry, could you say

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<v Speaker 1>what is the company again? I just remember he had

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<v Speaker 1>to past twelve time and Robert was very quiet. It's like,

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<v Speaker 1>w GCC bids nine point eight, I'm sorry, what was

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<v Speaker 1>that bid? The scott Scots, some big guy booming boys.

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<v Speaker 1>Geek bids nine point nine. WGCZ bids ten million. You know,

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<v Speaker 1>it was just back and forth and back and forth.

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<v Speaker 1>So it was a bit theatrical, you know. So then

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<v Speaker 1>the bidding continues, bid it up to eleven. Then Seyffert

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<v Speaker 1>piped up eleven point two and they asked for other

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<v Speaker 1>bids and that was it. Eleven point two BAM Penthouse

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<v Speaker 1>was sold to a company that Kelly knew nothing about.

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<v Speaker 1>Kelly assumed that she and Robert would spend loads of

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<v Speaker 1>time together, at least over the next few days, but

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<v Speaker 1>he had other plans. The next thing I remember him

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<v Speaker 1>saying was that he had to get back on a

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<v Speaker 1>plane because he had a dentist's appointment in Prague. And

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<v Speaker 1>I said, you just bought Penthouse. You bought one of

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<v Speaker 1>the most iconic adult brands in the world, and you're

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<v Speaker 1>going to go to a dental appointment. I think you

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<v Speaker 1>need to reset that, don't you. Kelly later discovered that

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<v Speaker 1>Robert had bid for her company on a win. The

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<v Speaker 1>story goes that Robert heard that Penthouse was up for

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<v Speaker 1>at a Friday night dinner party. He jumped on a

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<v Speaker 1>plane to la and by Monday, Robert had bought Penthouse.

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<v Speaker 1>The whole thing took less than seventy two hours. Kelly

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<v Speaker 1>says he barely knew anything about the company's finances. It

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<v Speaker 1>seemed he just wanted to own it. We had a

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<v Speaker 1>lunch the next day to introduce him to everybody, to

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<v Speaker 1>introduce him to the staff. I actually at that point

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<v Speaker 1>felt comfortable with him for two reasons. I understood that

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<v Speaker 1>he didn't know anything about the company, and I had

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<v Speaker 1>a wrong presumption that he would be wise enough to

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<v Speaker 1>allow the people who did understand what was happening to

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<v Speaker 1>do their job. It didn't work out that way. Penthouse

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<v Speaker 1>was broke. It had bills some way just to pay,

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<v Speaker 1>but getting funds from Robert proved tricky, and the first

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<v Speaker 1>oh my god moment was when Robert Seyffert said, I

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<v Speaker 1>don't understand this. Why do I have to pay any money?

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<v Speaker 1>I already paid eleven point two million, But that point

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<v Speaker 1>had to be explained over and over and over again. Now, look,

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<v Speaker 1>Kelly had run Penthouse into bankruptcy, and we're not making

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<v Speaker 1>a judgment here on who was right or wrong. But

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<v Speaker 1>while Kelly was trying to get on the same page

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<v Speaker 1>with Robert, she was hearing things about WGCZ that really

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<v Speaker 1>made her nervous. She started to suspect that Robert wasn't

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<v Speaker 1>actually in charge. It's not like he has access to

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<v Speaker 1>the money of the company. He's a very small part

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<v Speaker 1>of this. Kelly learned there was somebody else behind Robert

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<v Speaker 1>who was in control. The deber I got into it,

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<v Speaker 1>the more concerned I became about just the general level

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<v Speaker 1>of secrecy around the company. That lying about, you know,

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<v Speaker 1>the money house to move sometimes from a personal account,

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<v Speaker 1>sometimes from a business account, sometimes through multiple accounts. That

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<v Speaker 1>sounded a bit sketchy to me. And here we are

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<v Speaker 1>right back where we started. You might remember to take

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<v Speaker 1>from Kelly. It was the very first thing you heard

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<v Speaker 1>at the beginning of our theories. If you play that

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<v Speaker 1>fast and loose in that environment. I have to assume

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<v Speaker 1>that you're playing that fast and loose in every environment,

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<v Speaker 1>and that you're not concerned about all the regulations that

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<v Speaker 1>underpin our world and his world in Europe, and the

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<v Speaker 1>integration of those two worlds. It was a volatile situation

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<v Speaker 1>that turned worse. Kelly was fired in twenty eighteen. Her

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<v Speaker 1>run at Penthouse was over, and the people she thinks

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<v Speaker 1>made the decisions about her future and the future of Penthouse.

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<v Speaker 1>She never met them. All she knew was their names.

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<v Speaker 1>The pack Hos. That's Stephan Paco and his twin sister

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<v Speaker 1>Mallory to be exact, the twins behind the world's most

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<v Speaker 1>popular porn sites. More about them when we return Act

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<v Speaker 1>two the Prague HQ. We've met some mysterious characters in

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<v Speaker 1>the world of porn, but the Paco's they really topped

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<v Speaker 1>the bill. They are the owners of w GCZ and

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<v Speaker 1>Stefan runs the business day to day. Now, one thing

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<v Speaker 1>they do have in common with the owner of their

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<v Speaker 1>biggest rival is you might easily believe they don't exist.

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<v Speaker 1>They are registered as the owners of w GCZ, but

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<v Speaker 1>there is hardly any trace of them on social media.

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<v Speaker 1>No pictures. They send out guys like Robert Seafort to

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<v Speaker 1>do their business in public. There is even some speculation

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<v Speaker 1>online as to whether the twins are actually made up

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<v Speaker 1>affront for someone else. Well, they're not. Mallory handled the

0:16:24.036 --> 0:16:28.236
<v Speaker 1>corporate side. Stepan is the computer whiz. He loves gaming.

0:16:28.916 --> 0:16:30.796
<v Speaker 1>They come from a small town in a region of

0:16:30.836 --> 0:16:34.836
<v Speaker 1>eastern France known for its coal mines and its Burgundy wine.

0:16:35.356 --> 0:16:37.676
<v Speaker 1>They still rely on friends and family from there to

0:16:37.796 --> 0:16:41.916
<v Speaker 1>run their business. Stefan is the one who really blazed

0:16:41.956 --> 0:16:46.396
<v Speaker 1>their path into porn and who is ultimately, we learned,

0:16:46.996 --> 0:16:50.596
<v Speaker 1>in control of the company. He was running online porn

0:16:50.676 --> 0:16:53.796
<v Speaker 1>picture galleries back in two thousand and two. He was

0:16:53.836 --> 0:16:56.676
<v Speaker 1>in his early twenties at the time, a skinny redhead.

0:16:57.356 --> 0:17:02.076
<v Speaker 1>But twenty years on he is the master of more

0:17:02.196 --> 0:17:06.796
<v Speaker 1>internet porn traffic than any other man on earth, and

0:17:07.796 --> 0:17:11.196
<v Speaker 1>no one really knows any about him, not even people

0:17:11.196 --> 0:17:15.996
<v Speaker 1>in the industry. Again, a question I've asked so many

0:17:16.076 --> 0:17:22.876
<v Speaker 1>times over the past year, how is this possible? I

0:17:22.956 --> 0:17:26.236
<v Speaker 1>remember looking up the address of their headquarters some Google Maps,

0:17:26.236 --> 0:17:29.636
<v Speaker 1>and it wasn't quite a Soviet department block that Kelly

0:17:29.676 --> 0:17:32.796
<v Speaker 1>hall In described, but it did look a lot like

0:17:32.836 --> 0:17:36.996
<v Speaker 1>the entrance was down a back alley. I couldn't believe

0:17:37.116 --> 0:17:40.516
<v Speaker 1>one of the world's top ten websites was being run

0:17:40.596 --> 0:17:44.276
<v Speaker 1>out of this building. It just didn't make sense. And

0:17:44.356 --> 0:17:50.716
<v Speaker 1>so I hopped on a plane with our producer, Pete Sail. Okay,

0:17:50.836 --> 0:17:55.116
<v Speaker 1>we're recording, so yeah, just have every bit about where

0:17:55.116 --> 0:17:58.796
<v Speaker 1>we are. And so we arrived in Prague yesterday and

0:17:58.836 --> 0:18:01.516
<v Speaker 1>we're sat down this morning to have a coffee and

0:18:01.556 --> 0:18:04.356
<v Speaker 1>we know that WDCZ is based here in Prague, and

0:18:04.436 --> 0:18:07.276
<v Speaker 1>we just wanted to go and look at their headquarters

0:18:07.436 --> 0:18:09.956
<v Speaker 1>and looked it up on Google Maps, and it turns

0:18:09.956 --> 0:18:13.596
<v Speaker 1>out that it's just next door to our hotel, and

0:18:13.716 --> 0:18:16.156
<v Speaker 1>we actually passed it yesterday when we were going for

0:18:16.236 --> 0:18:21.076
<v Speaker 1>dinner and missed it. We walked by the headquarters of

0:18:21.076 --> 0:18:24.036
<v Speaker 1>what's possibly the world's biggest porn company and we didn't

0:18:24.076 --> 0:18:28.276
<v Speaker 1>even notice. It was a shared building with an open entrance.

0:18:28.916 --> 0:18:32.396
<v Speaker 1>There were company signs plastered on the wall, like for

0:18:32.516 --> 0:18:36.996
<v Speaker 1>a creation tourist bureau, but most of them more names

0:18:37.036 --> 0:18:42.316
<v Speaker 1>of w DCZ subsidiaries. So this was the right spot.

0:18:46.796 --> 0:18:49.316
<v Speaker 1>I did try calling them. I didn't try finding a

0:18:49.356 --> 0:18:54.356
<v Speaker 1>press office, but I didn't have any luck. And so

0:18:54.996 --> 0:18:57.756
<v Speaker 1>I decided to walk in and see if I could

0:18:57.796 --> 0:19:03.916
<v Speaker 1>find anyone to speak to. There was no security, no reception,

0:19:04.836 --> 0:19:08.076
<v Speaker 1>nothing stopping me from walking in. Just the property manager

0:19:08.236 --> 0:19:11.436
<v Speaker 1>who to go out to realize I may not be

0:19:11.556 --> 0:19:17.276
<v Speaker 1>their usual type of visitor. So what happened? So this

0:19:17.516 --> 0:19:19.636
<v Speaker 1>very lovely man, who was getting very nervous about us

0:19:19.636 --> 0:19:22.396
<v Speaker 1>standing around and recording here, he chased me up the stairs.

0:19:23.316 --> 0:19:25.796
<v Speaker 1>But because he's quite much older than me, I did

0:19:25.876 --> 0:19:31.956
<v Speaker 1>manage to find one floor that had a WDCZ sign

0:19:32.036 --> 0:19:34.316
<v Speaker 1>on it, and I knocked on the door and a

0:19:34.356 --> 0:19:38.476
<v Speaker 1>man came out and looked quite confused as to why

0:19:38.556 --> 0:19:41.196
<v Speaker 1>I was there, and I told him I'm a journalist

0:19:41.236 --> 0:19:42.996
<v Speaker 1>and you know, I'm trying to reach out to their

0:19:43.036 --> 0:19:46.116
<v Speaker 1>press office, and he said, I don't think we have one.

0:19:46.436 --> 0:19:49.116
<v Speaker 1>I asked, can I speak to you? He said no?

0:19:50.276 --> 0:19:52.596
<v Speaker 1>And you know, I said, is there? Do you have

0:19:52.636 --> 0:19:54.436
<v Speaker 1>any advice for me? What should I do? And he

0:19:54.516 --> 0:19:57.316
<v Speaker 1>said I don't know. And I walked upstairs as well,

0:19:57.676 --> 0:20:00.556
<v Speaker 1>and to the great dismay of the property manager, who

0:20:00.556 --> 0:20:03.996
<v Speaker 1>had by that time caught up with me, I went

0:20:04.036 --> 0:20:05.916
<v Speaker 1>to knock on some of the doors on the other side,

0:20:06.276 --> 0:20:09.476
<v Speaker 1>and these two young women opened the door. It was

0:20:09.516 --> 0:20:12.476
<v Speaker 1>kind of strange because the door was already open, so

0:20:12.596 --> 0:20:14.676
<v Speaker 1>you know, it wasn't locked. I knocked on the door

0:20:15.356 --> 0:20:17.716
<v Speaker 1>and they said, you know, we have nothing to do

0:20:17.756 --> 0:20:26.876
<v Speaker 1>with the business. Looking back, it was the women that

0:20:26.956 --> 0:20:31.276
<v Speaker 1>stuck in my mind. They were young, blonde, thin, and

0:20:31.396 --> 0:20:34.356
<v Speaker 1>seemed nervous to see me there. I'm not sure who

0:20:34.356 --> 0:20:38.676
<v Speaker 1>they were exactly. Several people. Housins told me that one

0:20:38.676 --> 0:20:43.196
<v Speaker 1>of wgcz's production studios is based in that building. They

0:20:43.236 --> 0:20:48.956
<v Speaker 1>actually shoot porn in their headquarters, and this studio, it

0:20:48.996 --> 0:20:53.196
<v Speaker 1>produces the kind of stuff that anti porn campaigners want banned.

0:20:53.836 --> 0:20:57.156
<v Speaker 1>A lot of it is rough and degrading, and that's

0:20:57.196 --> 0:21:00.436
<v Speaker 1>not just my take, it's the whole point of it.

0:21:00.436 --> 0:21:03.996
<v Speaker 1>It's humiliation porn. The videos shot here are at the

0:21:04.036 --> 0:21:08.356
<v Speaker 1>hardest edge of the industry, the physical extreme. The kind

0:21:08.396 --> 0:21:12.796
<v Speaker 1>of stuff performers told me, crosses the line for them.

0:21:12.956 --> 0:21:16.076
<v Speaker 1>Paco's studio isn't the only one making this kind of porn,

0:21:16.916 --> 0:21:20.036
<v Speaker 1>but it is the biggest name in the genre. His

0:21:20.196 --> 0:21:25.276
<v Speaker 1>subscription site, called anal VIDs, is the go to destination

0:21:25.476 --> 0:21:29.356
<v Speaker 1>for people looking for these kinds of videos. Analvid members

0:21:29.476 --> 0:21:32.796
<v Speaker 1>pay roughly thirty dollars a month for the basic plan

0:21:33.156 --> 0:21:42.876
<v Speaker 1>and they pay with MasterCard and Visa credit cards. How well, technically,

0:21:43.116 --> 0:21:47.436
<v Speaker 1>humiliation pawn isn't banned under Visa and MasterCards core rules,

0:21:47.796 --> 0:21:50.316
<v Speaker 1>you know, all those commandments we told you about in

0:21:50.356 --> 0:21:53.796
<v Speaker 1>the last episode. But the banks and billers they work with,

0:21:53.996 --> 0:21:57.636
<v Speaker 1>the ones who actually process payments for Visa and MasterCard,

0:21:58.276 --> 0:22:01.556
<v Speaker 1>they often take a more conservative view. They say no

0:22:01.836 --> 0:22:04.756
<v Speaker 1>to some of the acts you'll find on Paco's site.

0:22:05.156 --> 0:22:07.836
<v Speaker 1>They don't allow it because they think you will harm

0:22:07.876 --> 0:22:12.796
<v Speaker 1>their reputation, or rather that of Visa and MasterCard. But Paco,

0:22:13.196 --> 0:22:16.476
<v Speaker 1>he has found some way to make the business work.

0:22:17.156 --> 0:22:21.276
<v Speaker 1>And it's not just the paywall sites. Paco's tube sites

0:22:21.596 --> 0:22:25.076
<v Speaker 1>also host content with the least amount of restrictions in

0:22:25.116 --> 0:22:29.316
<v Speaker 1>the industry. That's according to what we've seen, what sources

0:22:29.316 --> 0:22:34.116
<v Speaker 1>have told us. And a spreadsheet, a pawn spreadsheet to

0:22:34.156 --> 0:22:38.276
<v Speaker 1>be exact, made by a performer called Sophie Ladder. She

0:22:38.596 --> 0:22:42.236
<v Speaker 1>meticulously charts the acts and words that might get you

0:22:42.396 --> 0:22:46.796
<v Speaker 1>kicked off adult platforms. Many top sites are covered with

0:22:46.916 --> 0:22:52.476
<v Speaker 1>boxes highlighted in red. No menstrual, blood, no kidnapping, role play,

0:22:52.956 --> 0:22:57.836
<v Speaker 1>no hypnosis. The platforms that stand out as mostly green.

0:22:58.956 --> 0:23:04.396
<v Speaker 1>They are owned by Stefan Paco vomit that's okay, swallowing urine,

0:23:04.636 --> 0:23:12.436
<v Speaker 1>fine blood, no problems, the whole thing confused. US Performers

0:23:12.436 --> 0:23:14.796
<v Speaker 1>like Stoya have told us how tricky it can be

0:23:14.996 --> 0:23:19.716
<v Speaker 1>to navigate complicated rules on porn set by financial institutions.

0:23:20.596 --> 0:23:23.956
<v Speaker 1>The Paco's empire seems to stay on the right side

0:23:23.956 --> 0:23:27.836
<v Speaker 1>of Visan MasterCard while hosting and making some of the

0:23:27.876 --> 0:23:31.956
<v Speaker 1>most extreme content. This industry in general seems to have

0:23:32.076 --> 0:23:34.516
<v Speaker 1>a lot of backstories that if you are not aware

0:23:34.636 --> 0:23:38.396
<v Speaker 1>you're in deep shit, you just don't get some bookings.

0:23:38.436 --> 0:23:41.516
<v Speaker 1>This is Sabian Pneumonia. She is a porn performer who

0:23:41.556 --> 0:23:45.276
<v Speaker 1>has worked for Paco studios, including the one at his headquarters.

0:23:46.036 --> 0:23:50.396
<v Speaker 1>Many people in the industry shy away from speaking publicly

0:23:50.436 --> 0:23:53.756
<v Speaker 1>about their experiences. There's a lot of stake for them.

0:23:53.836 --> 0:23:55.876
<v Speaker 1>If you get on the wrong side of the people

0:23:55.916 --> 0:24:00.276
<v Speaker 1>in charge, it can be hard to get work with Sabian,

0:24:01.116 --> 0:24:04.796
<v Speaker 1>she agreed to talk with me on the record. Sabian

0:24:04.916 --> 0:24:07.076
<v Speaker 1>is covered in tattoos all the way up to her neck,

0:24:07.676 --> 0:24:10.396
<v Speaker 1>and even though her the art brands are as so

0:24:10.516 --> 0:24:14.076
<v Speaker 1>called alternative, meaning it's not always easy to get cast.

0:24:14.556 --> 0:24:18.236
<v Speaker 1>She's quickly become quite a big name. Don't let me

0:24:18.316 --> 0:24:22.596
<v Speaker 1>ask twice, I've been good girl. Oh yeah, come on,

0:24:24.116 --> 0:24:26.156
<v Speaker 1>So how did she become so big, because that's what

0:24:26.236 --> 0:24:29.476
<v Speaker 1>everyone's saying. Everyone's like, she just kind of suddenly came

0:24:29.516 --> 0:24:32.276
<v Speaker 1>in and now you're everywhere, You're involved in everything. So like,

0:24:33.716 --> 0:24:36.836
<v Speaker 1>I mean, I don't I don't really know. I guess

0:24:37.076 --> 0:24:40.436
<v Speaker 1>we're working our asses off. Sabian was a glamor model

0:24:40.476 --> 0:24:44.276
<v Speaker 1>for years, mainly as a hobby, but then she realized

0:24:44.316 --> 0:24:48.316
<v Speaker 1>that the fantasy woman she was cosplaying could actually make

0:24:48.356 --> 0:24:51.436
<v Speaker 1>her quite a bit of money. So for the past

0:24:51.516 --> 0:24:55.116
<v Speaker 1>three years, Sabian's been a full time porn star. In

0:24:55.276 --> 0:24:58.956
<v Speaker 1>that time, she's worked with loads of studios, including Pacos.

0:24:59.596 --> 0:25:02.516
<v Speaker 1>If you talk to people in the industry about his studios,

0:25:03.196 --> 0:25:05.636
<v Speaker 1>they tend to refer to them by an old umbrella

0:25:05.756 --> 0:25:09.996
<v Speaker 1>name Legal Porno, and that work brought her lots of attention.

0:25:10.596 --> 0:25:13.276
<v Speaker 1>I did my two first scenes and my following one's

0:25:13.476 --> 0:25:18.836
<v Speaker 1>crazy just because I was on legal Partner, Sabian says,

0:25:18.876 --> 0:25:23.156
<v Speaker 1>to the studio operating in Paco's headquarters pays well because

0:25:23.236 --> 0:25:26.716
<v Speaker 1>of the physical and mental strain that performers are put under.

0:25:27.556 --> 0:25:30.556
<v Speaker 1>She described what it was like to shoot for the studio.

0:25:31.316 --> 0:25:34.276
<v Speaker 1>We have chosen to include it because we don't want

0:25:34.276 --> 0:25:37.716
<v Speaker 1>to gloss over the fact that the porn industry asks

0:25:37.756 --> 0:25:41.316
<v Speaker 1>a lot of performers. When I speak to people inside

0:25:41.316 --> 0:25:43.516
<v Speaker 1>the industry, everyone's saying like, no one wants to do

0:25:43.596 --> 0:25:46.916
<v Speaker 1>that stuff, Like it's like the perverts outside of the

0:25:46.956 --> 0:25:49.956
<v Speaker 1>industry who want this and we need to supply it.

0:25:50.396 --> 0:25:53.116
<v Speaker 1>I've spoken to people who just like say, like, you

0:25:53.156 --> 0:25:55.396
<v Speaker 1>know what, keep your money, like I'm gonna I'm not

0:25:55.436 --> 0:26:00.316
<v Speaker 1>gonna finish, you know, the shoot here people unfortunately facing

0:26:00.356 --> 0:26:04.236
<v Speaker 1>the situation they have to work on them. One's supply situation.

0:26:04.676 --> 0:26:08.316
<v Speaker 1>Let's be honest. Porn as a thing supposed to supply

0:26:08.436 --> 0:26:12.556
<v Speaker 1>you with the best way of expressing your sexual desires,

0:26:13.036 --> 0:26:20.076
<v Speaker 1>and human beings are known for having weird, skinky sometimes

0:26:20.076 --> 0:26:24.636
<v Speaker 1>super they pray fantasies. I did this and for me,

0:26:25.036 --> 0:26:28.796
<v Speaker 1>it's just gape on with backup dancer period Sabian says

0:26:28.916 --> 0:26:31.156
<v Speaker 1>she thinks there's a demand for this kind of porn

0:26:31.236 --> 0:26:36.076
<v Speaker 1>from viewers who just want to see women degraded. That's it.

0:26:36.716 --> 0:26:39.436
<v Speaker 1>The girl never had it. Let's see how quickly will

0:26:39.516 --> 0:26:42.836
<v Speaker 1>make her cry. I should point out Sabian is one

0:26:42.876 --> 0:26:45.916
<v Speaker 1>of many performers who have chosen to perform this kind

0:26:45.956 --> 0:26:48.916
<v Speaker 1>of porn. She knew exactly what she was getting into.

0:26:49.556 --> 0:26:53.356
<v Speaker 1>She actually did some in depth research watching hours of

0:26:53.436 --> 0:26:57.916
<v Speaker 1>content on Paco's side. But the industry is full of

0:26:58.156 --> 0:27:01.996
<v Speaker 1>very young people, especially in Prague, which is one of

0:27:02.036 --> 0:27:06.756
<v Speaker 1>Europe's porn production hubs. Many performers come from countries like

0:27:07.036 --> 0:27:11.236
<v Speaker 1>Ukraine and Russia and don't speak Czech or English, and

0:27:11.356 --> 0:27:15.196
<v Speaker 1>more importantly, they don't have rights to work in EU countries,

0:27:15.836 --> 0:27:18.836
<v Speaker 1>which makes them more dependent on whoever helped them get

0:27:18.836 --> 0:27:22.276
<v Speaker 1>the gig in the first place. The point is it's

0:27:22.316 --> 0:27:26.156
<v Speaker 1>hard to imagine that everybody can do or does as

0:27:26.236 --> 0:27:30.796
<v Speaker 1>much research as Sabian did going into it. Another quick

0:27:30.796 --> 0:27:34.916
<v Speaker 1>warning here, Sabian is about to describe in explicit terms

0:27:35.236 --> 0:27:38.596
<v Speaker 1>some of the things she experienced shooting for Paco Studios.

0:27:40.036 --> 0:27:44.076
<v Speaker 1>We can blame them for many things, but I don't

0:27:44.076 --> 0:27:47.516
<v Speaker 1>think any of people who broke on the scene stand

0:27:47.556 --> 0:27:51.236
<v Speaker 1>on front of the mirror and be like tomorrow, they

0:27:51.236 --> 0:27:54.196
<v Speaker 1>will piss on me, they will fuck me hard, My

0:27:54.316 --> 0:27:57.076
<v Speaker 1>ass will be sure. You know, how can I avoid

0:27:57.276 --> 0:28:00.956
<v Speaker 1>breaking internally, how I will feel about myself after that

0:28:01.156 --> 0:28:05.516
<v Speaker 1>all happened. Even though Sabian says shooting for Paco Studio

0:28:05.676 --> 0:28:09.196
<v Speaker 1>put her body in danger, she doesn't think the making

0:28:09.196 --> 0:28:11.956
<v Speaker 1>of this kind of porn should be illegal. She sees

0:28:11.996 --> 0:28:15.636
<v Speaker 1>it as a matter of choice. In this series, we

0:28:15.716 --> 0:28:20.116
<v Speaker 1>haven't sought to expose illegal practices on porn sets. We've

0:28:20.116 --> 0:28:24.116
<v Speaker 1>looked at the porn business within the rules. But even

0:28:24.156 --> 0:28:27.476
<v Speaker 1>if Paco Studios follow the rules set by the financial

0:28:27.476 --> 0:28:30.876
<v Speaker 1>institutions that oil the wheels of the porn industry, it's

0:28:30.916 --> 0:28:33.956
<v Speaker 1>clear that the kind of porn he makes and selves

0:28:34.316 --> 0:28:38.236
<v Speaker 1>is high risk, a level of risk that is simply

0:28:38.236 --> 0:28:42.796
<v Speaker 1>too much from many banks, payment processors, and other pornographers.

0:28:43.756 --> 0:28:47.556
<v Speaker 1>As we heard in the last episode, this content carries

0:28:47.796 --> 0:28:51.676
<v Speaker 1>exactly the sort of reputational risk that payment companies want

0:28:51.716 --> 0:28:57.396
<v Speaker 1>to avoid. I did ask Sabian about Paco. She had

0:28:57.436 --> 0:29:00.356
<v Speaker 1>never met him, but she did have something to say

0:29:00.396 --> 0:29:03.636
<v Speaker 1>about him. Obviously, it's not a fair that the person

0:29:03.716 --> 0:29:09.476
<v Speaker 1>who get the least shame get the most money. But

0:29:09.716 --> 0:29:12.196
<v Speaker 1>you know, life is life. It's it is I mean,

0:29:12.436 --> 0:29:16.516
<v Speaker 1>it's I mean, come on, it's politics, per No, there

0:29:16.556 --> 0:29:19.836
<v Speaker 1>are so many other industries where the top guys you

0:29:19.876 --> 0:29:22.356
<v Speaker 1>will never know their names. I mean, I agree with

0:29:22.396 --> 0:29:24.796
<v Speaker 1>you that it is true that like in any industry,

0:29:24.836 --> 0:29:27.476
<v Speaker 1>their private companies. You don't have owned companies one. But

0:29:27.516 --> 0:29:29.716
<v Speaker 1>I feel like with porn it's there's the slight difference.

0:29:29.836 --> 0:29:32.236
<v Speaker 1>You know, performers, you don't have a right to take

0:29:32.236 --> 0:29:35.316
<v Speaker 1>down content. Once you're out there, you're out there right

0:29:35.396 --> 0:29:37.316
<v Speaker 1>and as a performer you face a lot of stigma.

0:29:37.436 --> 0:29:39.716
<v Speaker 1>Back in the days, you'd have like Larry Flynt and

0:29:39.796 --> 0:29:42.916
<v Speaker 1>you Heffner and people are making shitloads of money, but

0:29:42.996 --> 0:29:45.596
<v Speaker 1>they went out there and defended the industry. I think

0:29:45.756 --> 0:29:50.676
<v Speaker 1>Stefano's just a businessman, and businessmen's like to keep quiet

0:29:50.716 --> 0:29:53.956
<v Speaker 1>about their money, where other people who do it for

0:29:54.036 --> 0:29:59.636
<v Speaker 1>their ego they will flash everywhere what they do. So

0:29:59.716 --> 0:30:02.956
<v Speaker 1>let's not make James Bond out of Stefano. He's just

0:30:03.356 --> 0:30:06.236
<v Speaker 1>very good in business making. I guess that's why he

0:30:06.316 --> 0:30:13.516
<v Speaker 1>keeps his privacy as a priority. Maybe Stefan Paco is

0:30:13.556 --> 0:30:16.436
<v Speaker 1>not quite your secret agent, but he seems to have

0:30:16.476 --> 0:30:19.756
<v Speaker 1>a special license in this business. He can make and

0:30:19.876 --> 0:30:22.836
<v Speaker 1>distribute some of the most fringe porn on the Internet

0:30:23.236 --> 0:30:26.476
<v Speaker 1>and still get paid for it. Could staying below the

0:30:26.636 --> 0:30:31.076
<v Speaker 1>radar be the key to how he does this. Before

0:30:31.076 --> 0:30:34.796
<v Speaker 1>I left Prague, I found someone who helped us understand

0:30:35.236 --> 0:30:39.396
<v Speaker 1>what really makes Paco stand out from his rivals. That's

0:30:39.396 --> 0:30:49.716
<v Speaker 1>after the break Act three, White pace to stay low.

0:30:52.956 --> 0:30:57.436
<v Speaker 1>So you found a whistleblower. I mean, people are so

0:30:57.596 --> 0:31:01.876
<v Speaker 1>reluctant to talk about Paco's empire that when we finally

0:31:01.916 --> 0:31:04.956
<v Speaker 1>found someone from the inside who would talk, it certainly

0:31:04.996 --> 0:31:09.596
<v Speaker 1>felt like a whistleblower. We recorded an interview, but I

0:31:09.636 --> 0:31:12.716
<v Speaker 1>can't use his name. I can't play his voice. He's

0:31:12.756 --> 0:31:16.796
<v Speaker 1>too worried about recriminations for that. I can tell you, though,

0:31:17.196 --> 0:31:21.676
<v Speaker 1>about his experiences working for the Paco Twins and WGCs

0:31:21.676 --> 0:31:24.436
<v Speaker 1>and Douz. He know the place well, yeah, definitely, I

0:31:24.476 --> 0:31:28.116
<v Speaker 1>mean well enough to understand the relationship between twins. Apparently

0:31:28.156 --> 0:31:31.156
<v Speaker 1>they're not always on great terms. Mallory used to handle

0:31:31.196 --> 0:31:34.956
<v Speaker 1>the books and some stuff feared her, but she has

0:31:34.956 --> 0:31:38.676
<v Speaker 1>stepped back from the company in recent years. Stefan is

0:31:38.676 --> 0:31:42.956
<v Speaker 1>the one who really calls the shots. Apparently he micromanages things.

0:31:43.556 --> 0:31:48.116
<v Speaker 1>Our insider called him megalomaniac and the master of puppets.

0:31:48.796 --> 0:31:52.076
<v Speaker 1>He has a company for everything. It's a really complex empire,

0:31:52.276 --> 0:31:56.076
<v Speaker 1>split into small cells for each business, and he sits

0:31:56.076 --> 0:32:00.516
<v Speaker 1>in the middle of it. All. Sounds like he's pretty headstrong,

0:32:01.036 --> 0:32:04.036
<v Speaker 1>self reliant kind of guy, And that's the key word,

0:32:04.436 --> 0:32:10.156
<v Speaker 1>self reliant. This guy I spoke to mentions something crucial

0:32:10.396 --> 0:32:14.876
<v Speaker 1>about Paco's business that I missed at first. It wasn't

0:32:14.916 --> 0:32:19.116
<v Speaker 1>until months after our conversation that the lightbulb moment finally came.

0:32:20.316 --> 0:32:25.116
<v Speaker 1>He told me that Paco had built his own payment processor.

0:32:26.036 --> 0:32:28.676
<v Speaker 1>You know those companies at the bottom of the visa

0:32:28.716 --> 0:32:32.956
<v Speaker 1>and MasterCard ecosystem that write detailed rules on what type

0:32:32.956 --> 0:32:37.596
<v Speaker 1>of porn is allowed. Well, that's one way to gain

0:32:37.956 --> 0:32:41.956
<v Speaker 1>real independence. You still need a bank, but it just

0:32:42.196 --> 0:32:46.076
<v Speaker 1>gives you much more operating freedom, especially on content that

0:32:46.316 --> 0:32:50.236
<v Speaker 1>might be banned by other sites. Exactly. This is how

0:32:50.236 --> 0:32:52.636
<v Speaker 1>he can run some of the most permissive porn sites

0:32:52.676 --> 0:32:56.716
<v Speaker 1>on the Internet and still make money. The payment processor.

0:32:57.276 --> 0:33:00.636
<v Speaker 1>Some other porn companies have their own payment processor, but

0:33:00.796 --> 0:33:05.316
<v Speaker 1>few rely so heavily on them. It allows Paco to

0:33:05.396 --> 0:33:08.636
<v Speaker 1>make a direct link between subscribers who pay for his

0:33:08.716 --> 0:33:13.556
<v Speaker 1>porn and his bank. Because he owns the payment processor,

0:33:14.156 --> 0:33:19.276
<v Speaker 1>he needs to rely on fewer financial companies. He essentially

0:33:19.276 --> 0:33:24.956
<v Speaker 1>cut them and their regulations out to differentiate yourself. Now

0:33:24.996 --> 0:33:27.716
<v Speaker 1>you've got to do something different, Edgy. I mean, you know,

0:33:27.836 --> 0:33:29.836
<v Speaker 1>keep it legal, but it's got to be some different.

0:33:30.316 --> 0:33:34.116
<v Speaker 1>This is Kevin Smith. He's a payment's consultant and has

0:33:34.156 --> 0:33:37.356
<v Speaker 1>been in the industry for close to three decades, specializing

0:33:37.356 --> 0:33:41.516
<v Speaker 1>in risk management. My question was, how big a deal

0:33:41.796 --> 0:33:45.476
<v Speaker 1>is it that Paco has his own payment processor. It

0:33:45.516 --> 0:33:49.596
<v Speaker 1>gives some extra flexibility on that particular content. It means

0:33:49.676 --> 0:33:52.316
<v Speaker 1>that if they have to make some dramatic decisions to

0:33:52.916 --> 0:33:56.076
<v Speaker 1>pull or change, it doesn't affect other parts of the business.

0:33:56.876 --> 0:34:07.316
<v Speaker 1>It primarily just gives them more control, control, independence, the

0:34:07.636 --> 0:34:12.756
<v Speaker 1>very things that appeal to man like Stefan Paco. Kevin said,

0:34:12.876 --> 0:34:15.996
<v Speaker 1>setting up a payment processor is not easy. It's a

0:34:16.076 --> 0:34:20.796
<v Speaker 1>tech challenge. There is lots of data regulation. Most companies

0:34:20.916 --> 0:34:23.356
<v Speaker 1>think it's better to just pay someone to handle that.

0:34:24.276 --> 0:34:28.596
<v Speaker 1>But being independent does have benefits, especially if you want

0:34:28.596 --> 0:34:31.356
<v Speaker 1>to set your own rules, if you want to decide

0:34:31.476 --> 0:34:34.996
<v Speaker 1>what porn is acceptable to make and what is acceptable

0:34:35.036 --> 0:34:37.156
<v Speaker 1>to sell. At the end of the day, you look

0:34:37.156 --> 0:34:39.236
<v Speaker 1>at it and go the Visa MasterCard rules at the

0:34:39.316 --> 0:34:43.236
<v Speaker 1>highest level basically say keep it legal. In the jurisdiction

0:34:43.316 --> 0:34:46.276
<v Speaker 1>of the seller, and the buyer for adult has the

0:34:46.316 --> 0:34:49.756
<v Speaker 1>extra flavor said keep it legal and none of the following,

0:34:50.436 --> 0:34:52.436
<v Speaker 1>and then you're right. The rest of it is open

0:34:52.516 --> 0:34:56.316
<v Speaker 1>to interpretation. If it isn't any of the above, you

0:34:56.396 --> 0:35:02.676
<v Speaker 1>have absolute flexibility. Those words are still ringing in my head.

0:35:03.196 --> 0:35:08.196
<v Speaker 1>Absolute flexibility, and Stefan had found a way to minimize

0:35:08.236 --> 0:35:13.676
<v Speaker 1>the constraints escape through many restrictions faced by other porn sites.

0:35:14.556 --> 0:35:20.236
<v Speaker 1>We had spent six months trying to contact Stephan phone email,

0:35:20.876 --> 0:35:25.396
<v Speaker 1>Patricia visited his office, and then, in a late breaking surprise,

0:35:26.316 --> 0:35:32.076
<v Speaker 1>WGCZ actually confirmed what we had suspected in writing it

0:35:32.156 --> 0:35:35.556
<v Speaker 1>was incredible. Right when we were about to lock this

0:35:35.596 --> 0:35:39.196
<v Speaker 1>episode for a release, we got a response from Paco's

0:35:39.236 --> 0:35:43.636
<v Speaker 1>tube site x Videos, an email that explained the company's

0:35:43.636 --> 0:35:49.076
<v Speaker 1>strategy and overall outlook on porn. And what's so weird

0:35:49.276 --> 0:35:53.356
<v Speaker 1>about that message is that it's unsigned, but written in

0:35:53.356 --> 0:35:56.556
<v Speaker 1>the first person, and it references a meeting that only

0:35:56.636 --> 0:36:00.636
<v Speaker 1>Paco could have attended, so it sounded to us like

0:36:01.116 --> 0:36:05.636
<v Speaker 1>Paco wrote it himself. It said, hello, ft, here are

0:36:05.676 --> 0:36:09.516
<v Speaker 1>some comments from us. We're a little late. Sorry, And

0:36:09.636 --> 0:36:13.396
<v Speaker 1>the most important point the email makes is this. It

0:36:13.476 --> 0:36:18.156
<v Speaker 1>basically says that Visa and MasterCard care most about stopping

0:36:18.276 --> 0:36:24.716
<v Speaker 1>illegal sexual content, which is absolutely true. The company or Paco,

0:36:24.916 --> 0:36:28.436
<v Speaker 1>has realized that what prompts Visa and master Card to

0:36:28.476 --> 0:36:33.796
<v Speaker 1>take action are videos made or distributed without the consent

0:36:33.876 --> 0:36:36.916
<v Speaker 1>of the people in them, and that's what they say.

0:36:37.116 --> 0:36:42.036
<v Speaker 1>Their priority is meeting the core MasterCard and Visa rules,

0:36:42.596 --> 0:36:47.196
<v Speaker 1>not all the extras and detailed additional restrictions that banks

0:36:47.196 --> 0:36:51.076
<v Speaker 1>and processes in the Visa and MasterCard networks might require.

0:36:52.876 --> 0:36:56.316
<v Speaker 1>The email said that as far as Paco's company is concerned,

0:36:56.836 --> 0:37:00.956
<v Speaker 1>all porn made with concent is fine, including the type

0:37:00.956 --> 0:37:05.036
<v Speaker 1>of humiliation porn that Sabian told us about, and that

0:37:05.476 --> 0:37:09.956
<v Speaker 1>quote efforts should be spent on fighting actual non consensual

0:37:09.996 --> 0:37:15.596
<v Speaker 1>content rather than consensual kinks and role plays. They'd love

0:37:15.636 --> 0:37:19.236
<v Speaker 1>for all the payment intermediaries that ban certain types of

0:37:19.316 --> 0:37:24.916
<v Speaker 1>porn to just back off. The email argues that lots

0:37:24.916 --> 0:37:28.796
<v Speaker 1>of sites and social media platforms carry similar content to Paco,

0:37:29.476 --> 0:37:33.476
<v Speaker 1>but that press and politicians keep in their words, hammering

0:37:33.516 --> 0:37:36.756
<v Speaker 1>away at the same two or three tube sites. Their

0:37:36.836 --> 0:37:41.796
<v Speaker 1>point is that wild user generated content has been transformative

0:37:41.796 --> 0:37:46.476
<v Speaker 1>from mainstream media. It's been a disaster for pawn. To

0:37:46.636 --> 0:37:50.596
<v Speaker 1>quote his email today, the adult industry is a giant mess.

0:37:51.076 --> 0:37:54.716
<v Speaker 1>People fight each other a lot. You've got systematic industry,

0:37:54.716 --> 0:38:01.396
<v Speaker 1>scale piracy, revenge, pawn, stolen content everywhere. And Paco controls

0:38:01.436 --> 0:38:05.636
<v Speaker 1>about a third of all pawn traffic, a third mainly

0:38:05.716 --> 0:38:08.676
<v Speaker 1>through his free tube sites. And yet here he is

0:38:09.436 --> 0:38:12.716
<v Speaker 1>saying he's not happy with how the industry is developed.

0:38:13.436 --> 0:38:16.796
<v Speaker 1>And this is a surprising part. He went on to

0:38:16.876 --> 0:38:22.836
<v Speaker 1>say that the industry could be fixed again by politicians,

0:38:23.876 --> 0:38:26.316
<v Speaker 1>but only as long as they dropped the bias against

0:38:26.356 --> 0:38:30.516
<v Speaker 1>porn and quote talk to people who actually understand the

0:38:30.636 --> 0:38:34.716
<v Speaker 1>industry and the Internet. Could one of the most secretive

0:38:34.756 --> 0:38:39.436
<v Speaker 1>men in porn be calling for government intervention? Stephan Paco

0:38:39.676 --> 0:38:43.236
<v Speaker 1>has shown us that if you understand the payment's world,

0:38:43.796 --> 0:38:46.676
<v Speaker 1>if you do just enough to never upset master Card

0:38:46.756 --> 0:38:51.116
<v Speaker 1>or Visa, you can glide on. So there he is

0:38:51.476 --> 0:38:55.756
<v Speaker 1>with this enormous growing empire and an anonymous entity at

0:38:55.756 --> 0:38:59.516
<v Speaker 1>the top of it that hasn't been cracked down on

0:38:59.716 --> 0:39:03.476
<v Speaker 1>by Visa or MasterCard. Well they haven't cracked down on

0:39:03.556 --> 0:39:14.116
<v Speaker 1>it yet. Next time on Hot Money. If the company

0:39:14.156 --> 0:39:17.956
<v Speaker 1>behind x videos taught us one thing, It's that if

0:39:18.036 --> 0:39:21.916
<v Speaker 1>you want to revolutionize pawn, it's payments that you have

0:39:21.956 --> 0:39:26.396
<v Speaker 1>to figure out, and it just so happens that a

0:39:26.436 --> 0:39:29.996
<v Speaker 1>fresh wind of change is blowing through the world of pawn.

0:39:31.036 --> 0:39:34.276
<v Speaker 1>Will tell you how it finance Fetish helped make a

0:39:34.316 --> 0:39:39.716
<v Speaker 1>groundbreaking side called Only Fans, and how uptide bankers almost

0:39:39.836 --> 0:39:42.556
<v Speaker 1>chased it out of the porn industry. I mean for

0:39:42.596 --> 0:39:44.756
<v Speaker 1>a lot of people it was It's like being cut

0:39:44.756 --> 0:39:48.476
<v Speaker 1>down at the knees. Do you have regrets on how

0:39:48.636 --> 0:39:51.876
<v Speaker 1>you handled it? Looking back? Not on how it was handled.

0:39:51.916 --> 0:39:54.396
<v Speaker 1>I don't think we had much of a choice, but

0:39:54.556 --> 0:40:00.076
<v Speaker 1>I deeply regret the amount of concern an anxiety it caused.

0:40:13.116 --> 0:40:15.676
<v Speaker 1>Hot Money is a production of The Financial Times and

0:40:15.676 --> 0:40:18.956
<v Speaker 1>Pushkin Industries. It was written and reported by Me, Patricia

0:40:18.996 --> 0:40:23.356
<v Speaker 1>Neilson and me Alex Barker. Peter Sale is our lead

0:40:23.396 --> 0:40:27.956
<v Speaker 1>producer and sound designer. Edith Russolo is our associate producer.

0:40:28.156 --> 0:40:33.636
<v Speaker 1>Our editor is Karen Shakerjie Amanda Kwong is our engineer.

0:40:33.996 --> 0:40:39.596
<v Speaker 1>Music composition by Pascal Wise, fact checking by Andrea Lopez Kusado.

0:40:40.116 --> 0:40:44.756
<v Speaker 1>Our executive producers are Cheryl Brumley and Jacob Goldstein. Special

0:40:44.796 --> 0:40:47.916
<v Speaker 1>thanks to Renee Kaplan and Ruler Kalov for The Financial Times,

0:40:48.276 --> 0:40:53.356
<v Speaker 1>and Mia Lobel, Lital Molad, Justine Lang, Julia Barton, and

0:40:53.516 --> 0:40:56.916
<v Speaker 1>Jacob Weisberg at Pushkin Industries. We had a lot of

0:40:56.916 --> 0:41:00.796
<v Speaker 1>help for this episode from our external researcher, Voiche Mihauak.

0:41:01.476 --> 0:41:04.916
<v Speaker 1>If you like this show, consider subscribing to Pushkin Plus,

0:41:04.956 --> 0:41:08.196
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0:41:08.356 --> 0:41:11.156
<v Speaker 1>four dollars nine nine a month. Look for the Pushkin

0:41:11.196 --> 0:41:37.116
<v Speaker 1>Plus channel on Apple Podcasts or at pushkin dot Fm.