Jenna Jameson - Business

Business

Jameson and Grdina formed ClubJenna as an Internet pornography company in 2000. ClubJenna.com was one of the first pornographic sites to provide more than pictures and videos; it provided explicit diaries, relationship advice, and even stock tips to paid members. The site reportedly was profitable in its third week. The business later diversified into multimedia pornographic entertainment, first by administering other porn stars' websites, then, in 2001, by production of pornographic films.

Early Club Jenna films starred Jameson herself, limiting herself to on-screen sex with other women or with Grdina, who appeared as Justin Sterling. The first ClubJenna film, Briana Loves Jenna (2001), co-produced with Vivid, cost US$280,000 to make, and grossed over $1 million in its first year. It was the best selling and best renting pornographic title of its year, winning twin AVN Awards. It was marketed as "Jenna. Her first boy/girl scene in over 2 years." referring to Jameson's abstention from heterosexual on-film intercourse. Grdina has said that Jameson's films averaged sales of 100,000 copies, compared with run-of-the-mill pornographic films, which did well to sell 5,000. On the other hand, he also said that their films took up to twelve days to film, compared with one day for other pornographic films.

In a January, 2009 interview with William Shatner on Shatner's Raw Nerve, Jameson said she came close to buying Penthouse magazine when publisher Bob Guccione filed for Chapter 11 reorganization of his business (which occurred in August, 2003), but was thwarted when someone else swooped in and bought up all the stock. New York Magazine's Intelligencer quoted a source from Penthouse as saying "I'm sure she is considering it", adding that Jameson was to be cover girl in January, 2004 – and "it's a really wild-looking shoot, even for a porn star."

In 2004, the Club Jenna films expanded to starring other actresses without Jameson – Krystal Steal, Jesse Capelli, McKenzie Lee, Ashton Moore and Sophia Rossi – as Jameson stepped back from starring roles. In 2005, Jameson directed her first film, The Provocateur, released as Jenna's Provocateur in September 2006. The films were distributed and marketed by Vivid Entertainment, which Forbes magazine once called "the world's largest adult film company." They made up a third of ClubJenna's revenues, but over half of the profits.

Club Jenna was run as a family business, with Grdina's sister, Kris, as Vice President in charge of merchandising. In 2005, Club Jenna had estimated revenues of $30 million, with profits of about half that.

Jameson also capitalized on merchandising herself. Since May 2003, she has been appearing on a 48-foot (15 m) tall billboard in New York City's Times Square promoting her web site and movies. The first advertisement displayed her wearing only a thong and read "Who Says They Cleaned Up Times Square?" There is a line of sex toys licensed to Doc Johnson, and an "anatomically correct" Jenna Jameson action figure. She stars in her own sex simulation video game, Virtually Jenna, in which the goal is to bring a 3D model of her to orgasm. Jackson Guitars made a limited series of King V guitars with Jameson's likeness. Y-Tell, ClubJenna's wireless company, sells Jenna Jameson "moan tones" (telephone ringtones), chat services, and games in partnerships with 20 carriers around the world, mostly in Europe and South America. In 2006, New York City-based Wicked Cow Entertainment started to expand her brand to barware, perfume, handbags, lingerie, and footwear, sold through high end retailers like Saks Fifth Avenue and Colette boutiques. Her prominent merchandising and mainstream media coverage has been criticized as "obscene" by Morality in Media.

In August 2005, Club Jenna launched Club Thrust, an interactive website for Jameson's gay male fans, which includes videos, galleries, sex advice, gossip, and downloads. The director of webmaster relations for Club Jenna said the straight site had always had a lot of gay traffic. By 2006, Club Jenna administered more than 150 official sites for other adult entertainment industry stars.

In August 2005, a group of business investors that included Jameson purchased Babes Cabaret, a strip club in Scottsdale, Arizona, intending to make it the first foray of ClubJenna into live entertainment. Soon after the purchase attracted attention, the Scottsdale City Council proposed a new ordinance banning nudity at adult-entertainment venues and requiring a four-foot divider restricting contact with dancers. Such a divider would have also effectively banned lap dances, the dancers' main source of revenue. Jameson argued strongly against the ordinance, and helped organize a petition against it. On September 12, 2006, in a referendum on the ordinance, voters struck down the stricter rules, allowing the club to continue to operate as before.

On February 3, 2006, Jameson hosted a "Vivid ClubJenna Super Bowl Party" with several other Club Jenna and Vivid Girls at the Zoo Club in Detroit, Michigan for a $500 to $1,000 ticket price. It featured a lingerie show, but no planned nudity or sex acts. When first announced, the party caused controversy with the National Football League, which did not sanction this as an official Super Bowl event. For 2007, Jameson signed up to play quarterback in the Lingerie Bowl, but retired due to her insurance company's damage concerns. She instead acted as commentator.

On June 22, 2006, Playboy announced that it had bought ClubJenna Inc., along with an agreement to have both Jameson and Grdina stay on as contracted executives. Playboy CEO Christie Hefner said that she expected to rapidly ramp up film production, producing about 30 features in the first year, and will expand the way they are sold, not only as DVDs but through TV channels, video-on-demand services and mobile phones. On November 1, 2006, Playboy renamed one of the Spice Network's pay-per-view channels from The Hot Network to ClubJenna.

In April 2007, Tera Patrick and her production company Teravision filed a lawsuit against Jameson and Playboy Enterprises for failing to properly account for and pay royalties on revenue earned by Patrick's website, clubtera.com.