publisher Larry Flynt claims porn is driving innovation on the internet.

Speaking to the ABC network Flynt, who made an appearance at the Video Software Dealers Association's Home Entertainment Show in Las Vegas, said online pornographers are pioneers.

"They're experts at giving customers what they want - and at making money," he said.

He said that the online adult arena - which accounts for 25 per cent of the multibillion-dollar adult entertainment industry - has been responsible for developing video streaming technology, banner and pop-up advertisements, interactive chat, webcams and marketing programmes.

Gary Kremen, chief executive of porn portal Sex.com, said that his company had to stay on top with new types of content, new kinds of payment systems, new ways of getting traffic and new ways of holding the surfer.

"Whether it be more international payment systems as more countries come online, to faster displays of content - whatever our customers want, we want to do that," he said.

The billion-dollar adult entertainment business can afford to experiment with new technologies because innovation is key to reeling in customers, he added.