Word: porn
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...schedules. Prices run from as little as 50 cents a call to nearly $5 for the first minute. Total revenues are expected to reach $450 million this year, up 50% from 1987. While the industry has already encountered a legislative clampdown that could limit the use of dial-a-porn and party lines, investors believe legitimate caller-paid services have huge growth potential. "This is a hot, faddish business right now," says Chris Elwell, senior editor of the Information Industry Bulletin. "But it's only in its infancy...
...been the best seller, generating more than a third of the industry's revenues. The dial-a-porn lines offer everything from recorded fantasies to lusty personal ads. Bawdy party lines have also proliferated, though their popularity is fading. Many of the numbers are far from erotic, providing legitimate dating services or outlets for gentle conversation...
...ease with which children can tune in to the dialogues, along with their capability of running up bills as high as $6,000, has inspired parents to protest the porn and party lines. Phone companies will usually forgive one month's charges if a customer claims the calls were placed by a child. As a result of these givebacks, some of the upstart phone services are facing uncollectible bills amounting to as much as 30% of their total revenue...
...While porn lines may wither, the dial-up industry is likely to thrive by attracting plenty of legitimate entrepreneurs. It has become a haven for people who have ample imagination but a shortage of capital. W. Brooks McCarty, 38, a former Los Angeles ad executive, invested $35,000 two years ago to start a dial-up service that listed job openings. McCarty's company, National Telephone Information Network, now offers 30 different services, which dispense tips on travel, business and other subjects. This year's expected revenue: $10 million...
...charging callers up to $50 for the chance to talk dirty, telephone sex services have become a $2.4 billion business. The Federal Communications Commission has gone after them with a regulation banning interstate telephone services that are obscene or indecent. Porn operators challenged the ruling, and last week federal courts in Los Angeles and New York City upheld the FCC's right to regulate obscenity but not the less explicit indecency. "I don't know if my client will still be able to operate now," said the attorney for one sex service...