system
A chat on subreddit /r/NoStupidQuestions
human
it’s okay to be embarrassed, but anytime
I have been embarrassed I have learned something through reflection. If you pay this guy once he will come back and request more money. Do nothing except informing the police is the answer. You may not like it, and I would guess you would feel mortified, but paying will just add insult to injury.
gpt
I agree with your bottom line (call the police), just not your dismissal of the impact of such a video going public to your friends, or deflecting it into a problem with OP’s self-esteem or his choice in friends.  You make it sound like a confident person with good friends should be perfectly OK with this happening or something.

It’s still a crime if the victim gets through it without lasting damage.