Enterprise: The Rich Pornocopia

Despite the nation's economic difficulties and tightened household budgets, the pornography business is wallowing in pay dirt. The market for erotic books, films and paraphernalia, which are sold mostly to the middle class and middle aged, has increased by an estimated 300% in the past five years. Police experts figure that annual sales of pornography are about $500 million, and some put the total as high as $2 billion.

Pornography's outsize profits are attracting many investors. Stock in Grove Press, a pioneer publisher of salacious books and U.S. distributor of foreign sex...

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