But as his company prepares to release its first ever adult film on next generation Blu-Ray and HD-DVD discs next month, Vivid Entertainment chief Steve Hirsch is adamant the growing pains of 'hi-def' have been overcome.

"When we first used hi-definition people were a bit like 'Wow! You can see everything,'" Hirsch said. "But we've moved on since then.

"The difference is between those people who make movies properly, with the right lighting and make-up, and resources, as opposed to people who wing it, who don't have the budgets we do."

Although Vivid, one of the largest adult entertainment companies in the US with sales of 100 million dollars last year, has been shooting films in high definition film for two years, it is only now that the company is entering the format war between Sony's Blu-Ray and Toshiba's HD-DVD.

The adult sector's entrance into the next-gen DVD market is being closely watched by analysts seeking clues to who might come out on top in the ongoing duel for format supremacy.

Many have likened the current format tussle to the scrap between VHS and Betamax in the 1980s, where VHS' success is often attributed to its willingness to embrace the porn industry.

However Vivid is hedging its bets, releasing its film -- "Debbie Does Dallas ... Again" -- in both competing formats simultaneously.

"We are not in the business of taking sides," Hirsch told AFP. "We produce content for all formats and that is how we will proceed."

Some analysts meanwhile have questioned whether the Blu-Ray/HD-DVD fight is truly comparable to the Betamax-VHS duel.

Andy Parsons, a spokesman for the Blu-ray Disc Association (BDA) also believes the porn industry's ability to shape technology trends is questionable.

"Mainstream content is what drives the market, and that comes from the studios," Parsons told entertainment industry daily Variety.

"Adult content should be appreciated for what it is but it is not mainstream and it will not drive the mass market."

Hirsch meanwhile believes that DVD sales will represent only a sliver of his company's business within a few years as content from the Internet becomes more easily transferable to home television.

According to figures from the adult trade daily AVN, the Internet generated 2.8 billion dollars, or 22 percent, of porn business last year, compared to 3.6 billion (28 percent) for DVD revenue.

Yet Hirsch believes Internet revenues will eventually far outstrip DVD sales. "Ten years ago around 80 percent of our business was DVD sales," Hirsch said. "This year it's going to be less than 30 percent and in five years I anticipate it will be less than five percent.

"Television, DVD and the Internet are going to converge in the next five years. The television will become the computer."

And as access to adult content increases, Hirsch believes the industry will undergo another revolution, with lower-budget production companies battling to maintain a position in a competitive market-place.

"Last year there were 13,000 adult movies released," Hirsch said. "When we get to a download-on-demand market, new films are going to be competing with tens of thousands of other titles.

"So the question will be how to stand out, how do you differentiate yourself? The ones that figure out that question will be the ones to survive."

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