Playboy CEO Says Only 10% of Revenue Comes From Advertising

CHICAGO — Playboy CEO Scott Flanders told Fox Business News in an interview that the company relies on only about 10 percent of its revenue from advertising.

Flanders, interviewed on the trading floor of the Chicago Mercantile Exchange on Thursday, also said that despite the economic slump, Playboy is in a good position to see growth.

“The media business is challenged, but Playboy’s story is much more about content and brand,” Flanders said. “Our growth area really is licensing, and it is stronger overseas than in the U.S.”

Flanders, who said that he’s seeking more partners to help make Playboy more profitable, also said that it’s sometimes better for companies to look for new leaders who haven’t been in the same industry. “It’s easier to come in from the outside with a new set of eyes,” he said.

Flanders noted that he also sees growth with Playboy Radio on Sirius XM and that he is building its own ad sales force for it.

“Radio is one of the areas we are going to emphasize,” he said.

Earlier this week, in an interview with the Chicago Tribune, Flanders said the company is focusing on product licensing and Playboy clubs to significantly boost revenue.

Flanders said the company is pursuing joint ventures with proven operators to launch new nightclubs around the world.

He also wants to ramp up licensing the famous Playboy brand on apparel and other consumer products, particularly in emerging economies overseas.

Flanders said Playboy will open new venues in Mexico within months, in Miami next year and in Macau during 2011.

The Fox Business News interview can be seen here.

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