[citation needed] Founded in 1971 by Chuck Holmes,[1] the company is one of the most recognizable brand names in gay pornography.

The owners/managers of several of its major American competitors, Hot House Entertainment, Colt Studios, Channel 1 Releasing and Titan Media (Steven Scarborough,[2] John Rutherford,[3] Chi Chi LaRue,[4] Bruce Cam,[5]: 262  respectively) previously worked for Falcon.

[9] The foundation supports a wide range of organizations, including groups protecting lesbian, gay, bisexual, and transgender rights, organizations which provide support to people living with HIV/AIDS, and others that help homeless youth or fight pediatric cancer and autism.

The buyout was arranged in order to separate the business from the Charles M. Holmes Foundation, which continues to function as a nonprofit organization.

[11] On December 19, 2010, video-on-demand company AEBN purchased Falcon Studios for an undisclosed amount of money.