Adult Entertainment: Gaming The Sweet Spot


If adult entertainment makes you think of back rooms and seedy stores think again! The porn business is nearly as mainstream as must see TV.

And with close to $15 billion on the line you can’t blame Corporate America for looking for a piece of the action.

In fact, cable and satellite TV operators seem eager to profit from porn’s popularity. From on-demand offerings to new HD channel selections big media is making money off the after hours action.

You might say, with erotic hits accessible at the touch of a button, cable and satellite operators are hitting the sweet spot.

But all good things come to an end.

And with a bountiful selection of free content on the Internet some pundits worry that pay-for-porn providers may see a letdown where it counts – on the bottom line

Considering size matters -- the size of your profits—all week the Fast Money gang will game the companies who make big bucks by peddling pleasure!

First stop - the cable companies.

I think Cablevision is probably the best cable operator out there, says Guy Adami. Considering they offer a Triple Play package they conceivably profit from people watching soft porn on cable, downloading adult content on the Internet and/or calling those sexy chat lines.

Looking at the stock, I like it above $19; otherwise it's a buy at $16.50, says Adami. I really think this stock could pop, especially if they spin-off MSG.

Want more adult fun? Then don’t miss the CNBC’s original "Porn: Business Of Pleasure" premiering on Wednesday, July 15th at 9p and hosted by Melissa Lee.

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Trader disclosure: On July 7th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Owns (BAC) Preferred; Finerman Owns (BAC) Preferred; Finerman's Firm Is Short (BAC); Finerman Owns (RIG), (TBT); Finerman's Firm Owns (FCN), (MSFT), (NOK), (PBR), (RIG), (TBT), (WMT), (PLCE); Seymour Owns (AA), (AAPL), (BAC), (BX), (EEM), (FXI), (F), (NUE); Seymour's Firm Owns (MBT); Seymour's Firm Is Short (PBR), (PTR); Najarian Owns (COST), (DNDN), (GS), (MS), (V), (WFC), (HK); Najarian Is Short (NVDIA); Najarian Owns (AAPL) Calls

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