VAN NUYS, Calif. – For months now, the financial news out of the adult entertainment sector has been a lot like the reporting from Wall Street: things are bad and only getting worse. Long assumed to be a “recession proof” space, over the last 18 months the porn industry has appeared to be anything but immune to the general economic downturn affecting businesses worldwide.

With adult entertainment industry leaders like Larry Flynt openly talking about the major pinch their businesses are feeling, the news must be dire industry-wide, right? Not so fast, says Internet-focused production house Pink Visual.

“While some of our divisions are generating less revenue than in years past, we’ve actually seen significant growth in some emerging sectors, and we have a very positive outlook for the future, even in the immediate short term,” Pink Visual Brand and Product Manager Kim Kysar said. “Our mobile division in particular is performing very nicely, and our projections indicate that mobile will be an increasingly important revenue stream for us going forward.”

Until late 2007, the mobile porn market in the U.S. was largely theoretical. Due to reticence on the part of major U.S. telecoms to facilitate billing for mobile adult content, the market for mobile porn in the U.S. fell well behind the European mobile porn market.

So, what changed over the last 18 months?

“One word: iPhone,” Kysar said. “The iPhone single-handedly opened up new horizons for American mobile porn, and we positioned ourselves to take advantage of the opportunity by keeping our eyes and ears open when the iPhone was still in development. We heard some of the buzz that was floating around prior to the iPhone’s release and thought to ourselves ‘this is going to be big.’”

In order to maintain and expand its presence in the mobile porn market, Kysar said that the studio knows it cannot rest on its laurels, and that the company is already working to optimize content delivery for the next generation of mobile devices.

“We’re by no means losing sight of the iPhone market, but we are definitely looking ahead to the impact of the Palm Pre, and ensuring that our sites are compatible with the Pre and other new devices that are soon to be released,” Kysar said. “The march of mobile progress is really a sprint, and you can’t afford to take your eye off the ball, or major opportunities will pass you by.”

Another indication of Pink Visual’s effort to stay ahead of the curve in the mobile porn market is its production of 3D content that works in conjunction with the Wazabee 3Dee Shell (www.wazabee.net) to offer consumers iPhone-based 3D viewing, without having to wear special glasses.

“The 3D content is a real challenge to produce, and we’re still getting our feet wet in that area,” Kysar conceded. “As it stands now, we just have a few short-run up and running, but our first full-length 3D porn webisode is slated to hit iPinkVisual.com within the next 30 days.”

Asked what’s next for Pink Visual, Kysar said she’s “holding the cards close to my vest.”

“The windows of opportunity in this space seem to open and close almost daily,” Kysar said. “To the extent that we can stay ahead of the market, we’re going to do so, and we’re not going to hand out too many breadcrumbs for the competition to follow.”

For more information on Pink Visual’s products, visit www.pinkvisual.com or contact Kim Kysar at kimk@pinkvisual.com.