I. The Volume of Traffic A. THE INDUSTRIES When the Commission undertook its work, it could find no satisfactory estimates of the volume of traffic in obscene and pornographic materials. Documented estimates describing the content of materials included therein were not available. The first task was to determine the scope of the subject matter of investigation. The very ambiguity of the terms "obscene" and "pornographic" makes a meaningful single overall estimate of the volume of traffic an impossibility. It is clear that public concern applies to a broad range of materials. Therefore, the Commission determined to report on the commercial traffic and distribution of sexually oriented materials in motion picture films, books, and periodicals. The Commission's examination included these materials, whether publicly or privately exhibited or sold in retail outlets, by individual sales, or through the United States mails. Two overall findings may appropriately be stated at the outset. Articles appearing in newspapers, magazines, and in other reports have variously estimated the traffic in the "pornography" or "smut" industry to be between $500 million and $2.5 billion per year, almost always without supporting data or definitions which would make such estimates meaningful. The Commission can state with complete confidence that an estimate of $2.5 billion sales grossly exaggerates the size of the "smut" industry in the United States under any reasonable definition of the term. In addition, a monolithic "smut" industry does not exist; rather, there are several distinct markets and submarkets which distribute a variety of erotic materials. Some of these industries are fairly well organized, while others are extremely chaotic. These industries vary in terms of media, content, and manner of distribution. Some of the industries are susceptible to fairly precise estimates of the volume of materials, others are not. We will describe briefly, and provide estimates of dollar and unit volume for most of the industries involved in the production and distribution of broadly defined sexually oriented material. 1 The Report of the Traffic and Distribution Panel of the Commission provides a more thorough discussion and documentation of this overview. MOTION PICTURES Movies have long been one of the primary recreational outlets for Americans. Box office receipts from nearly 14,000 theaters were estimated at $1.065 billion for 1969, and approximately 20 million persons attended motion pictures weekly. Until the past year or two, motion pictures distributed in the United States fell rather neatly into three categories: general release, art, and exploitation films. By far the most important and familiar are general release films produced and distributed by well-known companies, starring well-known actors, and exhibited in 90% or more of the theaters across the country. These account for the vast majority of theater attendance in the United States. Art films are an undefined, amorphous group of films which appeal to a limited audience. Exploitation films, usually known in the industry as "skin flicks," are low-budget sex-oriented movies which have a rather limited exhibition market. In addition to these well-defined types of films recognized by the industry for many years, in the past year or two quite a number of highly sexually oriented hybrid films (which combine elements of all three traditional types) and films of a totally new genre have appeared. Another group of films, known in the trade as "16mm" films, which are generally among the most sexually explicit available, have also come onto the market. THE RATING SYSTEM The recent acceleration in sexual content of films has been approximately coincident in time with the initiation of a movie-rating system for the guidance of viewers. The rating system represents an industry judgment of the appropriateness of the content for children, and reflects to some degree the explicitness of the sexual content of a rated movie. The rating system contains four classifications, two that are not age restricted and two that are age restricted: "G," all ages admitted; "GP," all ages admitted, parental guidance suggested; "R," restricted because of theme, content, or treatment to persons under 17 unless accompanied by a parent or adult guardian; and "X," no one under 17 admitted. The rating system provides rough guidelines for judging the sexual content of rated films. "G" rated films contain little in the way of sexual matter or vulgar language. Although the "G" rating of a few films has been criticized in the past, the application of this rating has probably become more strict in the past year or so. Little beyond conventional embracing and kissing is allowed. Fisms with an "antisocial" theme are not rated "G." "GP" rated films are rated with the "maturing adolescent" in mind. Some degree of sexual implication is allowed, flashes of nudity from a distance are sometimes shown, and some vulgar language is permitted. If discussion of sexual topics becomes "too candid" or if approval is expressed for such activities as premarital sex or adultery, the film will be rated "R" or "X." "R" rated films can contain virtually any theme. Considerable partial nudity is allowed as is a good deal of sexual foreplay. Several "R" films have contained scenes of full female nudity (genitalia). The chief difference between "R" and "X" rated films is the quantity and quality of the erotic theme, conduct or nudity contained in the film rather than a set of absolutes which automatically classifiy a film as "R" or "X." "X" rated films are those which, in the judgment of the industry organization charged with rating, cannot be given any other classification. Films which concentrate almost exclusively on eroticism are placed in this category. An "X" rating may be self-applied by producers who do not submit their product to the Code and Rating Administration (the only classification which can be so applied). GENERAL RELEASE FILMS Since the beginning of the motion picture industry, the sexual content and themes of movies have been the target of criticism. In recent years, general release films have become more sexually explicit. They are the target of the most public criticism because of their nationwide distribution to large diversified audiences. This criticism is magnified because of the large volume of newspaper advertising, gossip columns, and stories, articles, and pictures appearing in periodicals. The trend towards increased sexual content of general release films has accelerated in the past two years. The candid treatment of sexual subjects has affected all aspects of films, i.e. theme, activity depicted, and degree of nudity. At present, there are few areas of sexual conduct which have not been the central subject of widely distributed general release films, including adultery, promiscuity, abortion, perversion, spouse-swapping, orgies, male and female homosexuality, etc. These themes, which were sometimes dealt with discretely in an earlier era, are now presented quite explicitly. Further, the requirement of an earlier day for “just retribution" for sexual misdeeds is no longer a requirement. Sexual activity depicted on the screen has also become much more graphic. Scenes of simulated intercourse are increasing. Other sexual acts, including masturbation, fellatio, and cunnilingus, are sometimes suggested and occasionally simulated. Partial nudity (female breasts and buttocks and male buttocks) may be seen in many general release films. The depiction of full female nudity (pubic area) has been increasing, and a few general release films have shown both sexes totally nude (genitalia). ART FILMS During the 1950s, "art films" treated sexual matters with a degree of explicitness not found in general release films of the same era. Today only the "foreignness" or limited audience appeal sets such films apart from many general release movies. EXPLOITATION MOTION PICTURES Exploitation films (usually known as "skin flicks"), are low-budget films which concentrate on the erotic. Ordinarily, these films are shown only in a limited circuit of theaters and the film titles, though advertised, are not familiar to most people for lack of publicity. Until one or two years ago, the lines of demarcation between these films and general release movies were quite clear. However, the increase of sexually related themes and the incidence of nudity in the latter have blurred many of the former distinctions to a point where there is a considerable overlap. Today, perhaps the chief distinction between some sexually oriented general release films and exploitation films is that the latter (a) are much less expensive to produce (an average cost of $20,000 to $40,000); and (b) are ordinarily exhibited in far fewer theaters (about 6% of all theaters exhibit such films at least on a part-time basis). The vast majority of exploitation films are directed at the male heterosexual market. Relatively few films are produced for a male homosexual audience, but the number of these films has apparently increased in the past year or two. Full female nudity has become common in the last year or two, although full male nudity is virtually unknown except in those films directed at the male homosexual market. Sexual activity covering the entire range of heterosexual conduct leaves very little to the imagination. Acts of sexual intercourse and oral-genital contact are not shown, only strongly implied or simulated; sexual foreplay is graphically depicted. The majority of theaters exhibiting exploitation films are old, run-down, and located in decaying downtown areas. However, there has been a trend toward building new theaters and opening such theaters in suburban areas. "HYBRID" AND "NEW GENRE” MOTION PICTURES of Within the past two years, there has been a radical increase in sexually oriented motion pictures which receive relatively wide distribution. These "hybrid" films combine the sexual explicitness of exploitation films with the distribution patterns of general release films. In addition, an entirely new genre highly sex-oriented films has been created. Some of these films graphically depict actual sexual intercourse on the screen, an activity which had previously been shown only in private or semi-private exhibitions. Exploitation films normally achieve relatively limited exhibitions in an established circuit of theaters (perhaps 500-600 theaters on the average). Popular general release films can expect to be exhibited in 5,000 or more theaters. The market for popular hybrid sexually oriented films falls somewhere in between; many have been exhibited in 1,000 to 2,000 theaters and extended runs are common. In addition, such films are not limited to exhibitions in run-down theaters in decaying downtown areas; many play in first-class theaters in downtown and suburban areas. The most sexually explicit of all motion pictures (herein labeled "new genre" films) as yet have received only limited distribution in major cities. SIXTEEN MILLIMETER MOTION PICTURES - Recently, an additional form of sexually oriented motion pictures shown in theaters has emerged known in the industry as "16mm films." As of August, 1970, a majority of the 16mm theaters in the country exhibit silent color films of young females displaying their genitals, but in a few cities 16mm films graphically depict sexual intercourse and oral-genital contact. Usually, 16mm films are the most sexually graphic films shown in the locality. It is very difficult to estimate the number of 16mm theaters currently in operation, but a figure of 200 seems reasonably accurate. As yet there are no recognizable film titles moving from city to city, and there is almost no nationwide distribution of such films. However, although 16mm films are in their infancy and as yet are a minor factor in the traffic of sexually oriented materials, the market definitely seems to be expanding. BOX OFFICE RECEIPTS OF MOTION PICTURES An analysis of reported box office receipts for films since the rating system has been in effect reveals no dramatic differences in reported grosses among "G," "GP," and "R" rated films, although as a group “G” films tended to have consistently higher grosses. Total box office receipts are not available for either individual films or for classes of films. Each year, however, a trade journal reports on the movies which returned the greatest film rental fees to their distributors. In 1969, 25 "G" movies returned $119 million; 28 'GP" films returned $92 million; 18 "R" rated films accounted for $57 million; 3 "X" films returned $14 million; and 16 unrated films (most of which were released before the rating system went into effect) returned $56 million; of these, four were clearly sex-oriented and returned over $11 million in rentals. Box office receipts for these films were probably between 2 and 2.5 times the rental fees. Final figures for 1970 are not available, but an analysis of the reported 50 box office films each week in 20 - 24 cities for the first six months of 1970 (a total of 222 films) can be summarized as follows: top 1 Many of the films listed in the "Top Fifty" during the first six months of 1970 were originally released in 1969. Only 1970 gross receipts for these films were included. 2 These films are characterized as hybrid or new genre films in this Report. Judgments on the classification were made by the Commission Staff. If the results of those films which were listed among the weekly top 50 are projected against the estimated box office gross for 1970, the following would result: |