educational

Working the Asian Market: 1

Any casual look into recent adult entertainment sales figures will show that there's a hefty market for Asian models. This has been a lure for many companies to produce movies in Asia, but some of them have learned a hard lesson.

The nectar of that blossom covers some sharp thorns.

In the past, the low costs of production in South America made importing product from there an almost sure moneymaker. In many ways, producing and importing product from Asia is at the opposite end of the spectrum.

While a number of companies have jumped into the Asian niche, producing movies in such exotic places as Thailand and the Philippines, they're finding that cultural conditions in those lands are jacking up their production budgets. And nowhere in Asia is this more prevalent than in Japan. Frank Goldfisher, general manager of Third World Media, tells XBIZ: "It's absolutely insane because the girls in Japan get a heck of a lot more money. They get 750,000 yen, which comes out to $7,000-$8,000 per day, American. We've had to come up with some pretty creative accounting and some pretty creative use of the footage to make a profit off it."

The impetus behind these costly performer fees lies in the Japanese system of "modeling agencies," which have a stranglehold on that part of the business.

"In Japan, there are no contract-free models," Jonathan Chang, sales manager for Amorz Entertainment, said. "Every model is under contract to a model agency, so there is another fee we have to pay. It's very similar to a Mafia-type thing. These agencies own the girls, and if you try to go around them, they'll tell all the agencies not to do business with you."

Chang, whose company produces Asian product exclusively in Japan (Amorz Entertainment's most popular series is "Kokeshi"), adds that the high performer fees are just the tip of the iceberg.

Cultural Difficulties
"The culture in Japan is very different," Chang tells XBIZ, "and in order to work there, we had to understand their culture. A lot of the ideas they came up with sounded kind of crazy to us, so it definitely was difficult for us. Like the money system they set up for us. We would make a very high down payment just to be allowed to start the movie shoot. There were also royalties we had to pay. That doesn't exist here."

What also doesn't exist here are the stringent Japanese censorship laws. The authorities there use a "mosaic" system — a video pixilation which obliterates on-screen images that are deemed hardcore or objectionable — on all domestically released adult material. This has caused a lot of headaches for outfits shooting in Japan, like Amorz Entertainment.

"When we first started producing there," Chang says, "we made one version for the Japanese market — with the mosaic — and another version for the American market, un-mosaic. That didn't work out well because we wanted extreme close-ups for the uncensored version, which we couldn't use for the mosaic version. So when we released the two versions, the mosaic version for Japan was unpopular because the close-ups were censored. But since the ones we sold in America were uncensored, sometimes people would send them back to Japan because there's a giant underground market there for the uncensored material. But when the government finds out that uncensored movies are going around, they start looking for our director. So sometimes, our director has legal problems there. They're very tough. If you ship uncensored material to Japan, customs just throws it away."

Although companies like Third World Media have gone to great pains to toe the line in Japan and in other Asian nations, the cultural peculiarities of each land have led to some serious trouble.

In part two, we'll look at legal problems over shooting in Asia as well as the issue of age verification.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

trends

How Local Payments Can Expand Access and Reduce Friction at Checkout

Global adult platforms often enter new markets with a familiar assumption: If their checkout accepts major cards, they're ready for local customers. In reality, payment habits vary widely by country. Dutch consumers use iDEAL for online shopping, BLIK is a leading e-commerce payment method in Poland, and India's UPI handles billions of transactions each month.

Mitch Platt ·
opinion

How Detailed Receipts Build Consumer Trust and Reduce Chargeback

When was the last time you bought something online? Chances are you looked for the confirmation almost immediately. Did the transaction go through? Does it show what you bought? Were you charged correctly? And if there's a problem, who can you contact?

Cathy Beardsley ·
opinion

What Adult Platforms Should Know About the EU AI Act

The European Union's Artificial Intelligence Act is now largely in force, creating new obligations for adult platforms using AI for content creation, performer verification, age estimation, moderation and other functions.

Corey Silverstein ·
opinion

How Native Spanish Speakers Help Pleasure Brands Expand Across Latin America

Latin America's Spanish-speaking markets represent an exciting growth opportunity for the pleasure products industry. Across the region, conversations about sexual wellness are becoming more open, specialty retailers are expanding their assortments and shoppers are seeking products that reflect their lifestyles and values.

Rin Musick ·
opinion

Why Retail Expertise Is Essential When AI Tools Analyze Store Data

Somewhere in one of our stores, someone scanned a barcode into a quantity field. The number entered was 8,388,607. At $19.99 per unit, that made a single line item worth roughly $167 million. The number was so large that the import failed immediately.

Zondre Watson ·
profile

Vendo CEO Mitch Platt Reflects on 20 Years of Lessons and Evolution

More than 20 years ago, three entrepreneurs in Barcelona began gathering over beers to pitch, dissect and routinely destroy one another's business ideas. The ritual was simple: One person arrived with a concept, while the other two tried to expose every weakness. Any proposal that survived earned another look. Most did not.

Jackie Backman ·
opinion

How to Avoid the Hidden Risks of AI-Generated Legal Documents

Artificial intelligence can write a contract in seconds, but that does not mean it can write the contract your business actually needs. Across the adult industry, operators, creators and producers are increasingly using generative AI to prepare model releases, performer agreements, privacy policies, takedown notices, employment documents and responses to regulators. The appeal is obvious: Legal work is expensive, AI is fast and the resulting document often looks impressively professional. That polished appearance is exactly what makes the practice dangerous.

Corey Silverstein ·
opinion

How Rolling Reserves Affect Cash Flow and Merchant Stability

You log in to your payment processor’s dashboard, discover they are withholding 10% of your sales, and immediately assume something has gone wrong. In reality, everything is working exactly as intended.

Jonathan Corona ·
opinion

What Federal Age Verification Could Mean for Adult Websites

Our industry has grappled with a patchwork of confusing and burdensome state age verification laws for the past couple of years. But that landscape could change quickly after the House passed the Kids Internet and Digital Safety (KIDS) Act (H.R. 7757) by a vote of 267-117, marking a significant federal step into this space.

Lawrence G. Walters ·
opinion

The Website Footer Requirements Every Adult Merchant Should Know

Since I started in this business 25 years ago, I've watched website footers evolve from a simple collection of links designed to help with SEO into important tools for meeting compliance and regulatory requirements, improving the customer experience and reducing chargebacks.

Cathy Beardsley ·
Show More