Playboy to Pay DirecTV $13M to Settle Dispute

CHICAGO — Playboy Enterprises Inc. will pay DirecTV Inc. $13 million to settle a breach of contract dispute and ink a new licensing deal with the satellite broadcaster.

DirecTV filed a lawsuit in March claiming that Playboy and its Spice Hot Entertainment division breached a deal by violating an agreement to offer some channels at the same terms that it was offering them to other pay TV services.

Chicago-based Playboy said in a regulatory its Spice Hot Entertainment division will make the cash payments to DirecTV through January 2013 to resolve the lawsuit DirecTV had filed against Playboy in Los Angeles Superior Court.

Playboy also said it would take a $13 million charge in its upcoming fourth-quarter earnings report.

The settlement includes cash as well as DirecTV’s affiliation agreement to carry in the U.S. through 2013 the channels Playboy TV, Spice:Xcess, fresh!, SKiN, and Playboy TV en Espanol.