Home > News > Private's Move to Digital Distribution Leads to 2nd-Quarter Loss • Bookmark   • Newsletters   • Register Search Options


Private's Move to Digital Distribution Leads to 2nd-Quarter Loss

Private's Move to Digital Distribution Leads to 2nd-Quarter Loss
Get XBIZ News
Aug 19, 2008 10:30 AM PDT    Text size: 
BARCELONA — European adult producer Private Media Group said its ongoing transition from traditional DVDs to digital distribution led to a decrease in sales and a net loss of 800,000 euro for the three months ending June 30.

"During the first quarter of 2008 restructuring plans were developed in response to the shift of the company's business model from traditional physical delivery of our content to digital new media distribution," Private CFO Johan Gillborg said.

"With respect to the reorganization of distribution of physical products, we have outsourced our DVD distribution in France to a third party and closed down our subsidiary. As a result we will make savings of 500,000 euro per year in overheads and we expect sales volumes to increase significantly. We are continuing to review our model for distribution of physical products and additional changes are expected."

Gillborg also said that the company would reduce its monthly releases, leading to an expected average saving of approximately 500,000 euro per quarter, starting in the second quarter of this year.

"We do not believe that the revised content strategy will have any impact on sales since our digital new media distribution is mainly dependent on our expansive library and not on new releases, unlike the traditional business. We also have renegotiated agreements with third parties relating to content acquisition and post-production cost."

The company also will stop publishing two magazines, replacing two cancelled publications with back catalog magazines.

"We do not believe this will have any material impact on sales since we distribute all our magazines together with back catalog DVDs and research has indicated that consumers are primarily interested in the DVDs," Gillborg said.

The company also is reviewing operations to take advantage of technological advances and potential outsourcing opportunities and eliminate duplicate functions. In the six months ending June 30, personnel — including employees and temporary agency employees — were reduced by 15 to 108.

"We expect to continue to focus on cost reductions and expect additional restructuring actions in the near term." Gillborg said.

Private Media Group is listed on Nasdaq and distributes adult content globally through DVDs, magazines, Internet, television broadcasting, IPTV/VOD and more than 900 million mobile telephones.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


The Skinny on the New DMCA Requirement

The requirements under the Digital Millennium Copyright Act (DMCA) have changed, but the sky is not falling. We have, even as a law firm, been hit with an unbelievable amount of spam sent out by law firms... More »

2017 Outlook: Legal Matters Around the Corner

The adult entertainment business’ legal community recently weighed in the top issues that companies and the industry, as a whole, should be concerned about. XBIZ asked industry attorneys to discuss... More »

Fraudulent Brazilian Trademark Registrations Running Rampant

Although you might not think often about protecting your trademark rights in Brazil, you need to — even if you don’t yet have a single Brazilian customer. Scammers are constantly looking for... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.



Mar 31 - Apr 02
Denver, CO.

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!