Playboy publisher to diversify
Probably the world’s best know publisher of adult magazines, Playboy Enterprises Inc has reported a slump in magazines sales over the last quarter which will look to affect their current share value prices. This combined with a decrease in advertisers spend and an increase in competitor activity such as free online adult content, are contributing to the deprecation in the company’s revenue for this period. The expectations are that they will struggle to achieve the same profit margins compared to last year. This year’s second quarter reports were filed showing an $8.7 million USD net loss.
The drop in advertising revenue has affected all paper based publishers alike, with advertisers closing their doors to weather out the current economic crisis. Although this kind of cost saving on the part of the advertiser is beneficial in the short term and boosts working capital, it can have detrimental effects to their company in the long term – by not maintaining their presence in their marketplace, they increase the chance of their competitors winning any new business that’s out there.
To combat these hard times, the Playboy brand is diversifying out from the usual routes to market. As well as the traditional print, television and video offerings, further resource is being used to push the company’s branded clothing merchandise and investing in licensing deals with nightclubs.
The now iconic brand, was established by Hugh Hefner at the age of 27, when he published his first issue of the now world famous magazine in December 1953. Little did he know then of the fortune’s he would come to make and where the Bunny girl brand would take him. While his CEO’s push the business in other directions, Hef’s latest personal venture sees him in discussions about producing a film about his life. To be rated 18 no doubt.
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