Around 2020, Taiwan briefly evolved into a rare hub in Asia capable of producing uncensored adult content on a large scale. At its peak, more than 20 studios operated across the island, churning out up to 300 titles a month, with researchers estimating the wider industry's annual value at roughly 20 billion New Taiwan dollars.
However, the real foundation of this surge never lay in the local market. Insiders revealed that the expansion was largely fueled by immense demand from mainland China, bankrolled by online gambling platforms and grey-market syndicates using the films to funnel traffic.
Following the sudden collapse of leading producer Model Media and the wider withdrawal of grey-market funding, the loosely regulated ecosystem has spiraled into distress. Stripped of offshore capital, the once-frenzied production bubble is now facing a steep downturn.
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