13 laid off at Kink.com

[gonzo]

We're still reeling from the news of the recent layoffs at fetish powerhouse Kink.com—but we've received information on the situation that's provided insight on what happened at Kink (and what could happen around the industry).

First, the bad (well, worst) news: of the thirteen layoffs, several were concentrated in the Production department—including two webmasters who were sent packing. Though we're not surprised to hear this—production is expensive!—we're still saddened by the news. Kink.com's high quality, in house production has always been one of its most appealing features (well, aside from the extreme kink), and we're crossing our fingers that these layoffs don't lead to a reduction in quality.

Which brings us to our second point: what led to the layoffs to begin with? Why, the same story we've heard over and over again, from mainstream companies across the country: during boom times, Kink.com expanded—so much so that when their revenues began to slow down, their profits disappeared.

And what about this idea of recession-proof porn? Are porn layoffs a sign that the economy is, well, that fucked?

We're going to go with a no... kinda. Yes, the economy is clearly in dire straits, but it's not solely the economy that's to blame for the porn industry's troubles.

The idea that porn is "recession-proof" is one that's oft misunderstood. The porn industry itself isn't what's recession-proof, it's the desire for porn that withstands economic woe. But with Pornhub and Redtube providing ample access to free hardcore content, high quality, studio-produced content can more easily be written off as a luxury—one that can fall by the wayside during tough times.

Recently laid off Kinkster Thomas Roche offered us another opinion:

Got to go to the link to read the rest

[Hell Puppy]

Originally Posted by gonzo

We're still reeling from the news of the recent layoffs at fetish powerhouse Kink.com—but we've received information on the situation that's provided insight on what happened at Kink (and what could happen around the industry).

First, the bad (well, worst) news: of the thirteen layoffs, several were concentrated in the Production department—including two webmasters who were sent packing. Though we're not surprised to hear this—production is expensive!—we're still saddened by the news. Kink.com's high quality, in house production has always been one of its most appealing features (well, aside from the extreme kink), and we're crossing our fingers that these layoffs don't lead to a reduction in quality.

Which brings us to our second point: what led to the layoffs to begin with? Why, the same story we've heard over and over again, from mainstream companies across the country: during boom times, Kink.com expanded—so much so that when their revenues began to slow down, their profits disappeared.

And what about this idea of recession-proof porn? Are porn layoffs a sign that the economy is, well, that fucked?

We're going to go with a no... kinda. Yes, the economy is clearly in dire straits, but it's not solely the economy that's to blame for the porn industry's troubles.

The idea that porn is "recession-proof" is one that's oft misunderstood. The porn industry itself isn't what's recession-proof, it's the desire for porn that withstands economic woe. But with Pornhub and Redtube providing ample access to free hardcore content, high quality, studio-produced content can more easily be written off as a luxury—one that can fall by the wayside during tough times.

Recently laid off Kinkster Thomas Roche offered us another opinion:

Got to go to the link to read the rest

yeah, after seeing their digs, they definitely have some overhead.

i'd be curious to see how intelligently cuts are being made. reality is most porn businesses are not run by people with a lot of previous business management experience. kneejerk layoffs as opposed to thoughtful reductions hurt you in long term.

keep your real talent, cut your dead wood.

[RawAlex]

"dead wood"... is that a pornstar that can't get it up anymore?

[softball]

Originally Posted by Hell Puppy

yeah, after seeing their digs, they definitely have some overhead.

i'd be curious to see how intelligently cuts are being made. reality is most porn businesses are not run by people with a lot of previous business management experience. kneejerk layoffs as opposed to thoughtful reductions hurt you in long term.

keep your real talent, cut your dead wood.

as i said at the time, that armory was total overkill. A vanity location with a maaive overhead that eats into profit

[Hony]

Don't see why porn companies should be any different from any other -- in bad times things shrink!

[Greg B]

Porn is recession proof, it's just the companies that aren't.

[EmporerEJ]

After 25 years in the adult entertainment business, the first 9 being consumer video stores, I feel all warm and fuzzy when people start getting laid off.
I know you would all like to wring your hands and cry for the economy, but the simple facts are these:

In the video business, we saw a 18-30% increase in sales whenever it was a "layoff" year in the video rental biz....
Idle hands and all.....

[RawAlex]

Here is where I get a little confused.

Porn is (in it's natural state) a fairly decent margin business. There are any number of ways to market the content, there is a willing buying public, and except for hairstyles and clothes worn, the stuff just about never goes out of style. Little is lost "on the shelf", as least in the short term. The content does the whole "long tail" thing, as is proven with the relative success of some of the classic porn sites out there these days.

Further, porn is marketed in so many ways: Direct to buyer, reseller, lease (PPV), broadcast (DTV), rentals, online, cell phones, magazines, etc, and plenty of other methods in between. It has been in the past and continues to be one of the few businesses that has a decent margin defined if it is done half way right.

Yet, there are plenty of people out there determined to turn it into a no margin business. Overpaying the talent, buying (or renting) extravagant locations, offices, and equipment, etc. Tube sites are just another way that some people are willing to take a 25% margin business and turn it into a 2.5% margin business instantly. Literally, idiots trading dollars for quarters.

From what I can see standing outside, it would appear that Kink has put a little too much money into their location and their profile, and not enough into actually marketing their products. Webmasters in the end are marketing staff, and cutting marketing staff to make ends meet is usually a very short term solution.

Play it natural, and the porn business makes money. Get agressive or swing a large appendage, and you are likely to get, well, dicked.

[gonzo]

Kink.com Founder Leases Space for Community Center

SAN FRANCISCO -- Kink.com founder Peter Acworth has leased space in San Francisco's former State Armory and Arsenal building to a lawyer who plans to open a community center on the premises.
The San Francisco Weekly sensationalized the situation last week, reporting that a center for kids was moving next door to the bondage porn studio. Kink.com founder Peter Acworth, who bought the historic building in the Mission District for $14.5 million in 2006 and leases part of the space to his company, called the report "bogus and inflammatory."

Acworth leased additional space in the building to real-estate lawyer David Klein, executive director of the Armory Community Center, which is in the planning stages.

"I have no affiliation with Kink.com," Klein told AVN Online. "I've leased the drill court portion of the building from Peter Acworth with the intention of opening a community center and I'm currently seeking entitlement for it."
The center will serve as a gathering place for "adults, children, families, tourists, religious leaders, everyone," Klein said. "It's a community center in every sense of the word. It's been vacant for 40 years, and having this wonderful building back in regular use benefits everyone."

Klein is trying to attract youth sports leagues to the building because of a shortage of sports fields in San Francisco. This has raised concerns about the center's proximity to Kink.com.

"This is a legitimate concern on the part of families and people who run youth leagues, and it's not a something to be ignored," Klein said. "At the same time, it is an easily addressable issue which I will address, a legitimate concern that will be responded to in accordance with the community's wishes."

Klein plans to create a wall and other partitions as needed, including a separate entrance to the building.

"I would create a physical division between the community center and the Kink.com offices so that neither tenant can go into the other's space," he told AVN Online. "This will completely isolate the center from the Kink.com offices, which, I think, will satisfy the community."

Klein projects the community center will be completed and open in as soon as six months.

Meanwhile, part of his job is assuring the community, which he says is truly in need of such a gathering place.

"There's no connection whatsoever between us and the adult business activities of Kink.com," he said. "I have to just get the word out to the community that they have nothing to fear. When I'm finished, I'd be glad to bring my own children to my own community center."

[RawAlex]

I wonder if they are going to set up a "job bank" for Kink?

[softball]

I remember them talking about this, and I never really thought it would fly. But who knows in SF? Anything is possible.

[miz_wright]

Originally Posted by rhetorical

I remember them talking about this, and I never really thought it would fly. But who knows in SF? Anything is possible.

*nods*

That was my thought - Acworth has always said he wanted to have community center/ involvement in the building's vacant spaces. I'll be interested to see how it all works out and in the meantime, props to the team for working to maintain a level of community connection.

[Evil Chris]

I just visited the Bay area for the first time a couple weeks ago.

Nice place.

[TheEnforcer]

Hope it works out...

[softball]

Originally Posted by LizAEBN

*nods*

That was my thought - Acworth has always said he wanted to have community center/ involvement in the building's vacant spaces. I'll be interested to see how it all works out and in the meantime, props to the team for working to maintain a level of community connection.

I absolutely agree. But sometimes we get so involved in what we do that it all appears normal, when in fact, our business is far from that. I really hope it works out for them because it could break that mold somewhat.

[venustoys]

Originally Posted by Greg B

Porn is recession proof, it's just the companies that aren't.

I certainly agree. The companies used to be recession proof as well, until now.

[IamShaider]

ouch, recession is being a bitch