LAS VEGAS -- Despite a bid for a government bailout, porn industry insiders say business is doing great.

Is Porn Recession Proof? | A Bailout For The Porn Industry?

The porn industry generated $12 billion in 2007, and it is not showing any real signs of slowing down.

In fact, some filmmakers at the crowded AVN Adult Entertainment Expo in Las Vegas said they enjoyed record business the last few months.

"We shoot about 100 scenes a month between the two studios," said Nicholas Steele, CEO of Bluebird America.

Steele said his studios in Los Angeles and England are shooting so many scenes because of the demand.

"I think economically, everything has been hurt. However, for our industry, what we are seeing is a little bit of consolidation and downsizing," Steele said.

Dan O'Connell, owner of Girlfriends Films agreed.

He said he started his film company eight years ago and hasn't looked back. In fact, he said his company had one of its best months ever in December.

"Our foreign sales are down a bit, but our Internet sales are up. Our VOD, Video on Demand, has been level and growing a bit," O’Connell said.

The filmmakers said the biggest threat they face right now is illegal downloads on the Internet. There are as many as 150,000 to 200,000 a day.

The convention runs through Sunday.