My favorite source of information these days is ADT poster Tricia Devereaux aka Karen Stagliano, the wife of Evil Angel owner John Stagliano.
Each of the directors that we distribute for exist as their own production company. They own their movies, which means they pay for the production up front and they make the profit off it and pay Evil Angel a distribution fee percentage. While we are their distributor, they direct exclusively with Evil Angel. If and when they decide to not be with Evil Angel anymore, they may take their movies and the names of the movies with them.
Evil Angel is the distributor, but as we do not sell to every single individual adult store, the vast majority of our sales are to intermediate distributors. If one of the distributors chooses not to buy one of the movies we distribute because they are afraid of the content, we do not force them to buy it. Some of the sales will be picked up by OTHER intermediate distributors to sell through to the stores, but not ALL of the sales.
…[Distributors] are located all over, from a few miles away from us in CA, to New York. It’s a lot easier for us to ship hundreds of pieces to one warehouse in NY, and then they sell to individual stores, than to sell those same hundreds of pieces to a wholesaler in CA to ship to individual stores in NY. Same for Oregon, Illinois, Michigan, and everywhere else porn is loved by the community.