Jill Kelly Productions to Add Hardcore Video Line

WEST HOLLYWOOD, Calif. — Jill Kelly Productions said it has inked a deal with a European-based adult entertainment film production company to co-produce and distribute a new line of hardcore porn.

CEO Robert Friedland told XBiz Wednesday that the new graphic film line is targeted to have an exotic appeal with “much lower” production costs. The new brand’s name will be announced at a later date.

The deal will “add additional fire-power to our U.S. and international sales," Friedland said.

The first 12 films are expected to be completed this summer and will “contribute significantly” to the West Hollywood, Calif., company’s sales and earnings, Friedland said.

The publicly traded company will produce 52 new adult titles a year with the new unit, which is expected to complement its Bizarre, Gwenmedia and two JKP titles.

JKP, which has cable, satellite, video-on-demand and Internet operations, had revenues of $3.9 million in 2003 but posted a loss of $9.2 million, according to a filing with the Securities and Exchange Commission.

It has been a year of steady acquisitions and partnerships for JKP.

Earlier this month, JKP announced that it would be focusing on overseas sales.

The company struck a deal with S.C. Folitexxx Video SRL to distribute 60 titles a year on Romanian TV. S.C. Folitexxx also will purchase a set number of DVDs of each title for resale.

And last month, JKP and privately held Bizarre Video last month signed a deal to combine efforts.

With nearly 1,000 fetish-niche titles, Brooklyn, N.Y.-based Bizarre Video Unlimited had a reported $2.4 million in revenue in 2003. The company has been in business since 1985 and now is a division of JKP doing business as JKP Bizarre LLP.

JKP also hired Keith Gordon, vice president of Bizarre and son of founder Morty Gordon, to head the sales staff from a new West Coast sales office.

He will also manage warehouse activities at the company’s new 55,000-square-foot distribution facility on Vanowen Street in North Hollywood, Calif. The company recently signed a 10-year deal for the facility, which commenced this month.

The new facility is nearly 20 times the current size of its West Hollywood offices, which the company plans to sublease after moving by the end of the month.

JKP was purchased last year by Germantown, Md.-based IDC Acquisition Corp., which spun Jill Kelly Productions off as a public company in a reverse acquisition.

The studio and distributor was started in 2000 by Friedland and porn star Jill Kelly, whose real name is Adrianne D. Moore.

Kelly, 33, has appeared in more than 400 adult movies.

The latest deal calls for an equal sharing of shooting costs, and for the European partner to oversee production and cover all post-production and packaging expenses.

JKP will have U.S. distribution rights of VHS, DVD, and Internet streaming, while its partner will have the same rights in Europe and DVD rights other than North America worldwide. Broadcast licensing fees will be split equally.

JKP shares were flat at $1 a share Wednesday in midday trading on the Pink Sheets.

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