NEIL CAVUTO, HOST: It's one of the biggest businesses on the Internet. Now it's making its way onto your cell phone (search). Downloading pornography (search) to your handheld is happening at we speak in at least 20 countries. Is the U.S. next?
Let us ask the man behind this vision, Steven Hirsch. Steven is the co-founder and the co-chairman of Vivid Entertainment Group.
Good to have you.
STEVEN HIRSCH, CO-FOUNDER/CO-CHAIRMAN, VIVID ENTERTAINMENT GROUP: Thank you.
CAVUTO: A lot of people knew you were coming onto this and immediately said, what is he doing?
STEVEN HIRSCH: Well, there's so many great things happening. Wireless is exploding. And that's one of the directions we're going in. There are, you know, several other businesses that we're involved in, but right now, wireless seems to be the focus.
CAVUTO: All right, now, what do you tell the parent of a kid who's downloading this stuff on his phone? Not to download it?
HIRSCH: Well there are, you know, age verification issues that need to be dealt with and...
CAVUTO: Come on, people walk by age verification issues.
HIRSCH: No. I don't think so. If done properly, I think that they can be protected, absolutely.
CAVUTO: How big a market do you think this is, downloading this type of stuff over your phone?
HIRSCH: Well, it's just starting now. And I don't think anybody knows ultimately.
CAVUTO: I've heard of billions. This could be a billion dollar market. It sounds incredible.
HIRSCH: Absolutely. I mean, it's part of the future of the adult industry.
CAVUTO: Well, are these pictures, video, both?
HIRSCH: Ultimately, it will be both. You'll be able to download a movie onto your phone.
CAVUTO: Who the heck is going to watch a movie on their phone?
HIRSCH: Maybe they'll just watch clips. Maybe they'll play games. There's so many different applications out there that there's something for everybody.
CAVUTO: So let me ask you this, the models that you use in some of your productions, will they pop up or into my phone?
HIRSCH: Absolutely. That's the next generation, and that's something that we're working on. And, you know, right now in Europe, you can, you know, hook right into a Vivid production.
CAVUTO: Do you think, though, that this risks a host of other things? Let's say people are doing this in their cars. I would imagine that's a bit of a distraction?
HIRSCH: Well, if you're talented enough to watch a movie at the same time as you drive, then, good for you.
CAVUTO: Steve, work with me here. This isn't a movie we're watching, you know?
HIRSCH: Well, if you watch a clip, you want to look at pictures, if you can pull it off, good for up.
CAVUTO: OK. Let me get a sense of where you're taking Vivid right now. I mean, you have this club you've opened up in Las Vegas, right?
HIRSCH: We've licensed our name to Arc Restaurants, and opened a club at the Venetian Hotel. The actual grand opening is February 4. All the Vivid girls will be there. It's exciting. It's something different for us.
CAVUTO: All right. What is this club versus other clubs?
HIRSCH: Well, it's not a nude club. There will be no nudity there.
CAVUTO: No nudity at all?
CAVUTO: So what do you get when you go in there?
HIRSCH: It's an upscale nightclub.
CAVUTO: What's upscale about it? The cost or the...
HIRSCH: It's a beautiful nightclub and millions of dollars have been spent on it. It will incorporate the Vivid name. The girls will be there. It will be an opportunity for people to interact with the girls.
CAVUTO: How are how going to police hanky panky and all that stuff?
HIRSCH: Well, you know, you have people who do that. That's just not what this club is about, you know. This is a different experience than a, you know, gentleman's club.
CAVUTO: Yes. So the fact that some have seen that market as saturated, particularly in areas like Las Vegas, how do you distinguish the product, just off the name?
HIRSCH: Well, again, yes, it's all about the name. That's the uniqueness of the club. The fact that, you know, we're different than anybody else. You can come in there and again, you can see the girls. You can interact with the girls.
CAVUTO: Let me ask you, Steve, I've had you on before and we always hear from people who are really ticked off that we've had you on, no offense you to. But here's their worry, that you are part and parcel of the group that's destroying morals and ethics in America.
HIRSCH: Well, you know, I understand that there are some people out there who feel that way. And all I can say to them is turn off the TV. You don't have to have access to our products if you don't want to. But you...
CAVUTO: But here's their thinking, if you're ramming it on their phones and all, then it's a whole other issue.
HIRSCH: Nobody is ramming anything. We're giving people access. Access to our products.
CAVUTO: Do you have kids?
HIRSCH: I do.
CAVUTO: You do. Would you let them see the stuff that you do?
HIRSCH: Absolutely not.
HIRSCH: They're not 18 years old.
CAVUTO: How old are they?
HIRSCH: I have a 3 1/2-year-old and a 1-year-old.
CAVUTO: OK. So when you know parents are concerned that even if an older sibling, who might be of age, has access to this downloaded stuff on his or her phone and that a 3-year-old or 5-year-old might see this...
HIRSCH: But Neil, whose responsibility is that? Is it my responsibility? Is it the parents' responsibility? We'll put the age verification in place. At that point, the parent has to take responsibility.
CAVUTO: Would it have are made any difference you to if John Kerry got elected? Democrats are supposedly more permissive with this sort of stuff?
HIRSCH: NO. We're comfortable with the product we make. We're comfortable with the movies that we make. It doesn't matter to us who's president.
CAVUTO: Would it have been less hostile environment for you, had the Democrats got in there?
HIRSCH: We'll have to see, I mean, over the next four years. There were no prosecutions the last four years.
CAVUTO: Bill Clinton was like your president from heaven.
HIRSCH: Well, there were no federal prosecutions, no question about it.
CAVUTO: All right.
HIRSCH: We'll have to see what happens in the next four years.
CAVUTO: But you're upbeat about the future of this industry? You get a slice of the billion-dollar pie. And away we go.
HIRSCH: I have been doing this for 20 years. I have never been as excited as I am now about the future of Vivid.
CAVUTO: OK. Steven Hirsch, he's the Vivid Entertainment co-founder and the co-chairman.
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