The article delves into the recent history of Bell's involvement with Penthouse, which began when he and company chairman Daniel Staton bought the magazine and related properties out of bankruptcy for $52 million four years ago, and tells of the company's plans for integrating the magazine with the social-networking websites, including Adult FriendFinder, that the company bought for $500 million in cash and stock late last year.
According to Forbes, Penthouse magazine, the websites and other ventures would market one another under Bell's plan. AdultFriendFinder runs ads in Penthouse magazine, and members of the site will soon be able to subscribe to an online version of Penthouse for $1 a month.
Bell plans to sell mobile applications for cell phones that will allow users to watch videoclips of Penthouse Pets for up to $10 a month. The company relaunched a branded line of sex toys in July and offers other licensed products, including lingerie ad jewelry, as well. The company has started making hardcore videos and a recent deal with New Frontier Media will make Penthouse Video On Demand available in 59 million homes. Penthouse's website offers material from the magazine and streaming videos from the Penthouse library starting at $7.95 per month. There are nine Penthouse Executive Clubs, which bring in $4 million in licensing fees a year.
Bob Guccione, who created Penthouse magazine in 1965, lost readers and advertisers by making the magazine more hardcore starting in the 1990s and lost millions of dollars in ventures that included a casino. By 2003 Penthouse was losing $6 million a year and its circulation was only 320,000. Bell and Staton bought Penthouse in 2004.
"We are fixing problems from the past," Bell said. "These are things Guccione should have done 20 years ago."
The article is currently available on the Forbes website
