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Merchandise Advertising

$167 million $268 million

Subscription fees

$490 million

In 1996 the online sex industry site revenue could be subdivided into subscription fees at US$490 million, advertising at US$268 million and merchandise at US$167 million (See Table 3).

Table 3 1996 US Online Sex Site Revenues139

By late 1997 there were an estimated 72,000 pornographic Web sites on the Internet.140 At that time, Leo Preiser, the Director of the Center for Technology at National University, estimated that 60 percent of the electronic commerce on the Web was pornography. 141

At the end of 1997 the online sex industry was estimated to be making US$1 billion a year, just in the United States.142 In findings from a 1997 survey, Inter@ctive Week magazine reported that 10,000 sex industry sites were bringing in approximately US$1 billion per year.143 A mid-size site that was accessed 50,000 times per day

made

approximately

US$20,000

each

month.144

Established sex industry sites could expect to make 50 to 80 percent profits.145 A Sacramento firm that handles online credit card transactions said that in 1997, the largest sex industry sites had revenues of US$1 million per month; while the smaller sites took in approximately US$10,000 per month. 146

Forrester Research, an Internet analyst firm, estimated that the Internet sex industry would make close to US$1billion in 1998. “We know of at least three sites doing more than US$100 million a year. And there are hundreds of sites out there.147

Organized Prostitution Tours

The Internet is serving as a new advertisement site for prostitution tours to Asia, Central America, Europe and Russia. Advertisements on the web reach a much larger potential audience that any other form of advertising.

One of the most popular destinations for prostitution tours is the Philippines. American men, more than any other nationality, are the buyers of women and children on prostitution tours to the Philippines.148 US men going on prostitution tours are typically aged 35-55 and come from different backgrounds including judges, attorneys, school board members, a father treating his son on his 18th birthday, and

clergymen.149

Approximately

13,000

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