What is the hot money podcast and why should I care about it?
Founded in 1884, The Financial Times is a renowned financial newspaper that has gained worldwide recognition among businessmen. However, it might come as a surprise that the publication has produced an 8-part podcast that delves into the porn industry. ‘Hot Money’ explores the evolution of this industry from the late 90s to present day, highlighting the technological advancements that led to the birth of tube sites and eventually, the creator economy fueled by platforms like OnlyFans.
Upon investigating the porn industry, journalist Patricia Nilsson stumbled upon a startling revelation – the identity of the largest porn company’s controller was unknown. After conducting further research with her editor, Alex Barker, they uncovered a clandestine power hierarchy comprising of billionaires, tech experts and influential financial institutions. Through their reportage in “Hot Money”, readers are given an insight into how these finance networks regulate the billing for millions of websites worldwide, thereby controlling the shadowy power structure of the industry. As per Financial Times journalist Patricia Nilsson, it is evident that the most powerful finance companies hold sway over the porn industry and UK porn trends.
Hot Money Podcast Idea
The germ of the idea for the show originated from a scoop in 2020 from the FT journalist Patricia Nilsson. Now, Hot Money reached No. 3 on the Apple Podcasts Business chart and was No. 1 on podcast streaming platform Pocket Casts for more than two weeks, according to FT head of podcast Cheryl Brumley.
According to Brumley’s statement to Adweek, Alex Barker and Patricia Nilsson delved into an industry that has been experienced by many individuals at some stage in their lives. However, it is not commonly discussed. This is the reason why Hot Money has gained the attention of numerous listeners and continues to rank high even after five weeks.
Given the 8-episode series, we have delved into its content to inform our readers of its value and whether it merits a listen.
In episode one Hot Money interviews Stoya a porn star who saw first hand how the rise of the free porn online transformed the adult industry. Prior to the existence of tube sites, individuals were required to pay for pornography which may come as a surprise. Such websites provided a brief preview at no cost, with the complete content accessible only after subscribing. This was typically done on a sluggish dial-up connection. Stoya’s shocking discovery sheds light on how the industry has changed over the years.
In episode two, titled “The Darth Vader of Porn,” the journalists delve into the origins of porn hub, tracing it back to a computer programmer named Fabian Thylmann. Thylmann was born in Dortmund and began programming computers at the age of 17. In the late 1990s, he developed NATS (Next-generation Affiliate Tracking Software), which enabled website operators to monitor users’ clicks on ads and links, resulting in commission payments. With the revenue generated from NATS, Thylmann acquired several adult businesses, including Mensef and Interhub/manwin, leading to the formation of Manwin in March 2010. This is an intriguing look into the clandestine history of the adult industry.
Fabian achieved his goals through various means. Despite the industry’s financial constraints, he exhibited exceptional financial management skills. He secured support from Wall Street and acquired the necessary funds to execute his plan of taking over the business. To do so, he borrowed hundreds of millions of dollars from financial institutions.
Thylmann resigned in October 2013, and the sale of Manwin for $73 million to an undisclosed buyer with a history of police-related problems followed. The meaning and information conveyed remain intact while the phrasing is restructured for clarity and style.
When Fabian Thylmann’s porn sites were up for sale, a former Goldman Sachs banker, whose identity was unknown to the public, stepped in and bought them. For years he managed to keep his ownership a secret but Financial Times reporter Patricia Nilsson eventually exposed him.
It was initially believed that the company had been sold to management, but after investigating, journalists discovered that Bernd Bergmair was actually the majority owner of MindGeek, the biggest porn company. In December 2020, the Financial Times published a report on the ownership of MindGeek which prompted a parliamentary inquiry into Pornhub’s practices in Canada. During this inquiry, it was revealed that Bergmair, who also used the name Bernard Bergemar in court documents, owned over half of the shares in MindGeek but was not involved in its day-to-day business as he was only a passive investor.
Hunt for the porn king, the secret owner of pornhub.
According to Wired, Redtube.com was among the top 5 rapidly growing websites in December 2007 and Bernd had an association with it. Initially founded by two young Austrian programmers from their bedrooms, Red Tube was later acquired by Bernd who acted as the financial expert behind it. However, the day-to-day management of the site was handled by Allan Lake, a former English DJ. The fourth episode named “Playboy V Rusty and Eddie” delves into the history of porn tube sites and how they managed to host content.
It highlights the case of Russell and Edwina Hardenburgh who operated a bulletin board system called “Friendliest BBS in the World” in Ohio during the 90s. The BBS allowed callers to post and download freeware or shareware programs, interact with its 14,000 members, and access downloadable nudes for an annual fee of $89. Unfortunately, this reputation did not last long as FBI agents confiscated dozens of servers from their basement following a lawsuit from Playboy regarding pornographic material regulations. Vice.
The case discussed in the fifth episode has established a benchmark for the correlation between pornography and social media giants such as Facebook and Twitter. The episode delves into the intriguing topic of how porn sites can either charge consumers or sell to advertisers on tube sites using Visa and Mastercard. This has resulted in payment becoming the most essential aspect of internet porn’s unspoken norms, which is largely dictated by billing companies.
Moving on to episode 6, it sheds light on the background of Mindgeek’s biggest competitor, Xvideos, which is owned by WGCZ based in Prague. While Porn Hub and Mindgeek are well-known names in the industry, WGCZ remains an enigma. Hot Money investigates this mystery and uncovers information about its owners through . Moreover, Hot Money attempts to track down Stephane Pacaud and explores the secret history of the adult business.
Stéphane Pacaud is one of the dominant tech geniuses behind the holding company, as stated in the 2019 annual report available on the Czech commercial register. The report reveals that he holds 93 percent of the shares, while a Hong Kong company owns the remaining seven percent. It’s worth noting that there isn’t a more recent annual report online, so there may be changes to these figures. When attempting to contact someone in Hong Kong regarding Xvideos, the call was answered but promptly disconnected without a conversation. According to Hot Money, Xvideos specializes in content that other companies refuse due to their payment processor’s restrictions.
However, Xvideos has its own payment provider, which grants them greater freedom. Hot money believes that Visa and Mastercard control what companies do through unwritten rules surrounding payments. As Only Fans enters the spotlight, it becomes increasingly linked to Babestation and Babeshows. Only Fans’ rise shifted power back to performers by restructuring the porn industry’s ecosystem. During the pandemic lockdown, only die-hard fans remained engaged with Only Fans content. But how did this all start?
Continue our blog as we enter the world of Onlyfans in:
