opinion

New Tech Salvation for Adult

Playboy New Frontier Media In an industry that counts on impulse buys and video-on-demand, faster cell-phone Internet access should be a boon for publicly traded adult-entertainment companies, according to a recent report in MSN finance. While share prices and revenues based on more traditional channels are flagging somewhat, analysts are bullish on the future of adult companies.

For example, Playboy Enterprises has seen its share price fall by 30% since the start of 2004, yet it gained 39% in the S&P 500 Index. And a small video distributor in Europe called Private Media trades where it did at the beginning of 2004, while the Russell 2000 Index of small-cap stocks has advanced it more than 45% in the same time frame.

Pay-television revenue overall was up just 1% at New Frontier Media in the first quarter of 2007, but VOD revenue jumped 10%. In the second quarter, overall pay-TV revenue at the company fell 17%, but VOD revenue was up 18% at New Frontier's biggest cable partner, and VOD sales were up at all of its top ten cable partners. At Playboy, revenue weakness at the magazine and in pay-per-view TV has almost been offset by strength in VOD sales.

Playboy, New Frontier Media and other adult-video providers have sold pay-per-view content for years through cable and satellite partners, but the fact that these broadcasts are pre-scheduled has limited their success. VOD is there when the customer wants it.

As New Frontier Media delicately put it in a recent filing, "Instant start times assure that an impulse demand results in a transaction, whereas with pay-per-view, the scheduled start time may not be synchronized to a ‘viewer's requirements.’"

Private Media's chief operating officer, Peter Cohen, said adult entertainment "is particularly an impulse buy. So the on-demand functionality of VOD suits our content very well."

But there's more.

VOD offers other distinct advantages for adult-entertainment providers. VOD broadcasts can't be copied, so piracy is reduced. Also, it's easier to track consumer interests and behaviors with VOD.

"You get better and more specific actionable data about what works, and we have been responding to that," Playboy Enterprises Chief Executive Christie Hefner said in a recent conference call.

According to the report, new technology like VOD appears to offer new hope for porn profits. “Innovations such as video-on-demand and faster cell-phone Internet access mean consumers will be better able to get the kind of porn they want, when and where they want it. That should boost sales for the publicly traded adult-entertainment companies supplying these channels.”

By some estimates, pornography accounts for 40% of all Internet traffic and pay-TV sales. But, for shareholders at least, technology has yet to make pornography wildly profitable.

Those in the know see things a bit differently from the short-sighted views of shareholders. New technology seems to promise adult a bright future – as it always has.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Retailer Tips for STI Awareness Month

Adult retail isn’t all fun and flirty games. We love helping folks navigate pleasure and desire for themselves and with their partners, but brick-and-mortar staff are also on the front lines for myriad educational opportunities — especially in April, which is Sexually Transmitted Infections Awareness Month.

Rin Musick ·
opinion

Strategic Upscaling of Non-4K Content

If content is king in adult, then technical quality is the throne upon which it sits. Technical quality drives customer acquisition and new sales, while cementing retention and long-term loyalty.

Brad Mitchell ·
opinion

A Look at the Evolution of Pleasure-Enhancing Pumps

Even though the pleasure industry is famously innovative, most “new” products are still ultimately reimagined versions of previous ones. They expand on the core idea by introducing a new feature or solution that takes the original concept to a new level of sensation, functionality or convenience.

Rebecca Weinberg ·
profile

AEBN Reflects on 25 Years of Innovation, Success

Reflecting on 25 years of success, AEBN honchos Jay Strowd and Bishop Wages harken back to 1999, when the company that would become a storied brand first broke away from an online DVD/VHS mail-order business to evolve as an entity solely dedicated to streaming video.

Alejandro Freixes ·
opinion

Platforming the Pleasure Industry With Our Collective Voice

Very early in my business career, I learned not to mix business with politics or religion. This was a foundational tenet that just made sense. For much of my career, that was easy. However, it has become increasingly difficult to avoid bringing politics into business.

Ken Sahn ·
profile

WIA Profile: Jessica Jasmin

Jessica Jasmin’s heart has always been in production, but there were a number of stops along her route to becoming creative director for Gamma Entertainment.

Women In Adult ·
opinion

The ABCs of POS Systems for Adult Store Owners

What point-of-sale system is best for your adult business? Figuring that out can be frustrating, since the numerous options and acronyms don’t easily translate into a clear checklist of features and benefits you can weigh.

Sean Quinn ·
profile

Hayley Davies: From New Zealand Math Nerd to Fast-Rising Adult Star

Growing up, New Zealander Hayley Davies was a proud nerd who participated in mathematics competitions against students from much higher grades. Her good looks turned out to be a kind of secret weapon, causing peers to underestimate her intellectual acumen.

Alejandro Freixes ·
opinion

How Pleasure Brands Can Leverage Strategic PR Amid Mainstream Media Layoffs

Thanks to the mainstreaming of intimacy products, pleasure brands can now gain broad exposure in all kinds of publications, from Cosmo to Allure to Good Housekeeping. Unfortunately, the economic uncertainty dominating the world and challenging businesses has hit the media sector particularly hard.

Kathryn Byberg ·
profile

Elly Clutch: English Teacher Turned Creator Shifts Into High Gear

Growing up, Elly Clutch often felt a bit strange and out of place. In fact, that feeling has stuck with her for as long as she can remember. Nevertheless, she has grown a lot of confidence since her youth, and now knows that being an outgoing and fun-loving nerd makes her uniquely memorable.

Alejandro Freixes ·
Show More