QUOTE(CJ Bob @ Sep 18 2007, 09:46 AM)

The model where you get a movie on DVD in the mail is pretty big.
Does this model exist for adult films? Shouldn't it? It's a huge business. If it doesn't, why not? Are these movies more likely to get stolen at the post office? Are there licensing issues in terms of rental?
Bill?
the biggest issue with adult/XXX in the online/mail business model is the "community standards" part of the obscenity law. laws vary widely from community to community, city to city, state to state. what is "legal" in one part of town could be ruled "obscene" in another community just 5-10 miles away. the obscenity law is known as a "three prong test." in order for something to be legally "obscene" (remember "pornography" is perfectly legal, "obscenity" isn't)
all three of these standards
must apply (but, in "b" it is the communities interpretation of a state law, which make it even more confusing);
a) whether the average person, applying contemporary community standards, would find that the work, taken as a whole, appeals to the prurient interest,
b) whether the work depicts or describes, in a patently offensive way, sexual conduct specifically defined by the applicable state law, and
c) whether the work, taken as a whole, lacks serious literary, artistic, political, or scientific value.
it would be virtually impossible to track all of the local ordinances when shipping into all of those different communities. and if a title was found to be obscene, and you fulfilled that order from a warehouse in another state, it would then also become a federal crime (possibly along with still being a state, county and/or city/community) for inter-state trafficking/distribution of obscene materials. which would be bad. very bad. and expensive. very expensive.
also the dealing w/minors part is a big issue. you have the problem w/minors having access to the "adult" material due to the lack of control w/the mail. to protect yourself as a retailer you have to ensure that you deliver (and receive, you can be found guilty of receiving adult material from a minor if you even accept the return of "X" rated product from a minor, it's an acknowledgement that they were in possession the product) the movies only to those 18 and over.
those are the major issues that i would see.