Private Media Group Revives Internet Unit

Gretchen Gallen
BARCELONA, Spain – As part of an ongoing restructuring process following a slip in revenue in mid-2003, adult content provider Private Media Group Inc. announced the completion of a strategy to ramp-up its core moneymaking divisions, which include its Internet unit, Private.com.

In an effort to return to a higher profit margin, the publicly traded company, which is half owned by President and CEO Berth Milton, has replaced its former Internet provider with Bangkok-based URL-Group.

Milton said in a statement this week that URL-Group will be able to provide the same services to Private Media at half a million dollars less on an annual basis than its previous provider.

URL-Group advertises itself as an IT/web application, content and solution provider that can offer cheaper services because of "low" salaried employees with more experience in leading edge technology and marketing.

"With this new team in place, efficiency is expected to improve and down-time to be kept at a minimum, which in turn is expected to impact positively on Internet revenues going forward," Milton said.

URL-Group will also localize all of Private Media's online content into German, French, Spanish, and eventually Chinese and Japanese.

"While we are pleased with the profitability of our online businesses, we feel that much more can be achieved over the coming quarters to better leverage our investments in this area," Milton continued.

Other restructuring efforts have included reducing operational and administrative overhead.

Private Media publishes magazines and distributes DVDs and videos throughout 35 countries. Its publications include "Private," "Private Sex," and "Triple X." The company also claims to own the worldwide rights to the largest archive of adult content in the world.

The Private.com website has a subscriber list of 100,000, the company says. In addition, Private Media operates three adult television channels (Private Blue, Private Gold, and Private Fantasy) that are distributed through satellite and cable systems in the U.S., Europe, and Latin America.

Shares of Private Media were last traded at $2.41.