CYBERSPACE — Conde Nast’s Portfolio.com ran an article by writer Claire Hoffman about how adult production companies are losing VOD cash to YouPorn and other similar amateur sites. The piece also mentions how DVD sales are “in a freefall.”Vivid Entertainment head Steven Hirsch tells of turning down the opportunity to purchase YouPorn for $20 million and his company’s history in the business is detailed.

“Everyone was excited because they thought the internet was going to affect our business in a positive way, and it’s been the opposite,” says David Joseph, the founder of Red Light District. “It’s been a little scary.”

Adam & Eve’s Phil Harvey, AVN’s Paul Fishbein, Digital Playground’s Joone, and many other top porn heads weigh in on the industry’s current, very large money problems. Porn production companies’ efforts to diversify are covered and the big-budget feature as the answer to the profit losses is explored.

Visit Portfolio.com to read the full piece.