Porn in the Valley -- Part III

Te San Fernando Valley's adult-entertainment industry - long considered the epicenter of the business - rakes in about $1 billion annually, with more than 200 local companies jump-starting a national market worth about $12 billion a year. But while local pornography firms employ about 6,000 people, only a fraction of the industry's massive profits actually trickle back to the Valley It is detailed in this third part of a series examining the industry.
n the past 15 years, the industry's local growth has nearly quadrupled, with annual revenues now equal to the Valley's restaurant, fast-food and bar businesses combined.

But while local pornography firms employ about 6,000 people, only a fraction of the industry's massive profits actually trickle back to the Valley. And loopholes in city business taxes minimize the amount firms have to pay into Los Angeles' coffers, raising questions about the industry's contributions - economic and otherwise - to the region.

"Don't turn up your nose," said Jack Kyser, chief economist of the Los Angeles Economic Development Corp.

"This is creating jobs for people, a revenue stream, and though you may not personally approve, there's a huge market out there."