New Frontier Media Drops IPTV Service

BOULDER, Colo. — New Frontier Media has decided to discontinue its IPTV operations, citing lower-than-expected demand for the service.

New Frontier, an adult TV network and on-demand programmer that operates websites as well, rolled out the direct-to-consumer IPTV initiative in 2008, primarily in Western Europe, the U.K. and U.S., and used third-party affiliates to distribute the IPTV set-top boxes.

But the company saw lower-than-expected subscriber additions for the IPTV business model during the second half of last year and started dedicating fewer resources towards marketing the service after it analyzed future expected benefits.

Competition over gaining and holding on to IPTV customers has intensified through the years, with Fyre TV, Roku and other others also now offering adult content from numerous blue-chip studios.

With the discontinuance of IPTV operations, New Frontier recorded a $900,000 accounting charge in the fourth quarter of last year over the discontinued operation, according to a filing last week with the Securities and Exchange Commission. It also faced a $200,000 charge over early-contract termination fees with several vendors and is hopeful it can liquidate about $100,000 worth of IPTV equipment.

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