An Inside Look at the Celebrity Sex Tape Industry

In the season finale Monday of her reality show, "Kendra," former Playboy Playmate Kendra Wilkinson reacted to the release last month of a sex tape that -- apparently to her surprise -- she starred in.

"It just sucks," Wilkinson said on the show. "It's the hardest thing to deal with right now. It's going to be really hard. It's going to probably be the hardest time of our lives."

Surprise: Youre a Sex Tape Star
Inside Celeb Sex Tape Industry

Wilkinson said she was furious.

"I just hope to God nobody looks at me like a porn star," she said on her show. "I just hope they don't press 'play,' because that's not me. I mean, that was me, but that's not me now."

Released on May 26, the video is already breaking sales records, according to distributor Vivid Entertainment. Which proves once again that in an era where the public's appetite for all things celebrity seems insatiable, nothing, it seems, is off limits.

VIDEO: Adult film company sends Kendra Wilkinson $680,000 for a yet-to-be-released sex tape.
Kendra Wilkinson's Big Payday for Sex Tape

That includes the barest of celebrity commodities, a phenomenon so widespread it's now commonly known as the "celebrity sex tape."

Whether the stars of the tapes are socialites or reality stars, musicians or actors, the sex tape business -- which by all appearances is based on videos released against a person's will -- is actually strategically and shrewdly run, and thriving.

'It's Still Selling'

David Joseph is the president of Red Light District, the company that put out the mother of all celebrity sex tapes, featuring socialite Paris Hilton.

"One Night in Paris," he told "Nightline," has shown staying power.

"It's still selling," Joseph said. He said he knew, the second he saw it that sales would be off the charts.

"At first I was afraid of the Hilton family, and I heard at one point Donald Trump was really upset about it because he knows the family really well, and he was going to get involved and do whatever it took to stop it," said Joseph. "And so, yes, it definitely crossed my mind and I had to be very careful on how this was dealt with."

Celeb Sex Tapes: Agents, Managers and More

Roughly $20 million in sales later, Joseph has become an expert in the process of securing and distributing celebrity sex tapes. The DVDs fill the boxes of Red Light's warehouse and make up the most profitable arm of the distributor's porn empire.

"Usually what happens is you will be approached by an agent, a manager of a celebrity or a boyfriend who did it with a celebrity," Joseph explained. "Usually it's a girl, sometimes it's a guy. But mostly it's a female. And it's never normally the actual female. It's an agent that approaches the adult companies."

Odds are the agent is a man named Kevin Blatt. And he isn't shy about his business.

"I don't distribute DVDs, I don't own a website. I'm just an information broker," Blatt told "Nightline." "In most cases, I'm like a porn version of Robin Hood. I take tapes sometimes that shouldn't be on the marketplace and I make sure they go back to their rightful owners."

Of course he plays the other side, too -- brokering deals to get tapes like the Paris Hilton phenomenon out to the public.

"Paris Hilton, when that tape crossed my lap, I had no idea who she was," said Blatt. "I was just told she was a socialite, heir of the Hilton family fortune and hotel chain. Had no idea that she was going to become this big of a star. For all intents and purposes, Paris Hilton and Kim Kardashian are the two biggest porn stars on the planet.

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