Playboy Enterprises, Inc.
Playboy is one of the most recognized and popular consumer brands in the world. Playboy Enterprises, Inc. (PEI) (NYSE: PLA, PLA.A) is a media and lifestyle company that markets the brand through a wide range of media properties and licensing initiatives. The Company publishes Playboy magazine in the United States and abroad and creates content for distribution via television networks, websites, mobile platforms and radio. Through licensing agreements, the Playboy brand appears on a wide range of consumer products in more than 150 countries as well as on retail stores and entertainment venues. The Company's three business groups are Entertainment, Print/Digital and Licensing.
The Entertainment Group develops, produces, acquires and distributes a wide range of high-quality lifestyle and adult programming for domestic and international television networks, which are primarily pay services. The original network, Playboy TV, was launched in 1982 and helped pioneer the premium TV market in the United States. Today, Playboy TV's original productions include magazine-format shows, reality-based and dramatic series, live events and celebrity and Playmate programs. The Company also has a range of adult-movie channels. Through networks, joint ventures and licensing deals, Playboy's television programming is available in more than 100 countries and, in the United States alone, is accessible in more than 65 million households.
PEI's Alta Loma production company develops, co-produces and licenses content for third-party networks and mainstream motion pictures. Recent initiatives include E! Entertainment Television network's popular multi-year reality series "The Girls Next Door," "Kendra" and Sony Pictures' "The House Bunny."
The Entertainment Group also includes Playboy Radio, which was launched in 2002 as the first premium service in the history of satellite radio. Today, the 24-hour Playboy-branded radio channel is available on both SIRIUS and XM satellite radio to more than 20 million subscribers. The channel features new and exclusive Playboy content and expands our audience of Playboy consumers to the satellite radio platform. Aimed at the mature, sophisticated audience that Playboy magazine helped to create and define, Playboy Radio offers a sexy listening alternative nationwide.
The Print/Digital Group includes the U.S. and 27 international editions of Playboy magazine and various media extensions including special editions and calendars as well as free and pay websites, and the licensing of content for mobile and other distribution platforms.
Founded by Mr. Hefner in 1953, Playboy magazine is the best-selling monthly men's magazine in the world based on the combined circulation of the U.S. and international editions. The U.S. edition has a rate base of 1.5 million, approximately one in ten men in the U.S. age 18 to 34 reads the magazine. As a general-interest magazine, with a reputation for excellence for its high-quality photography, entertainment, humor, cartoons, and articles on current issues and trends, the magazine plays a key role in driving the continued popularity and recognition of the Playboy brand. It also serves as a source of content, a connection to celebrities who appear in the magazine and a publicity generator.
The company has 27 licensed foreign editions, all of which are profitable and serve as regional brand drivers. An estimated 9 million adults read Playboy's international editions each month, bringing the magazine's global readership to more than 18 million readers.
In addition, the company publishes approximately 25 special editions each year. These are thematic-based pictorials that are sold via newsstand and include such titles as Playboy's Lingerie, College Girls, and Fresh Faces.
Playboy.com is one of the world's most popular men's websites, with more than five million unique global visitors and nearly 45 million page views monthly. It generates revenues from pay sites, advertising and e-commerce. The robust free site features a range of content that expands upon the editorial heritage of the magazine and includes humor, style, games, entertainment and advice. Through a dazzling array of original video, animation, and interactive content, combined with a wide variety of opportunities to personalize content, users can create their own customized experience.
The primary source of online revenues is a range of premium clubs, which are thematically grouped and can be purchased at a variety of price points and for varying periods of time. The quality of the literary and video content available is a critical differentiating factor from competitive websites.
The third major online revenue stream is Playboy-branded e-commerce websites. Playboystore.com and ShopTheBunny.com, combined with their respective catalogs, offer customers the ability to purchase Playboy-branded fashions, calendars, DVDs, jewelry, collectibles, and back issues of Playboy magazine and special editions, as well as some select non Playboy-branded products. The Company outsourced e-commerce functions beginning in 2008.
In addition, PEI creates and distributes content for mobile platforms and operates and licenses international websites. Playboy Mobile offers the classic Playboy lifestyle through engaging wireless content including Playboy-themed games, images, video clips and mobile TV. Playboy offers wireless entertainment services through licensees and carriers in over 40 territories around the globe including Argentina, Australia, Brazil, Canada, France, Germany, Italy, Japan, Russia, and the United States.
Through deals in Asia, Europe and the Americas, Playboy's trademarks and images appear on a wide range of consumer products including apparel, accessories, footwear, lingerie, jewelry, fragrances and home fashions. Playboy's licensed products business now generates more than $900 million in global retail sales in more than 150 countries and territories. In addition, the Licensing Group generates revenues from location-based entertainment venues and Playboy-branded retail stores.
Capitalizing on the Company's powerful brand name and its Rabbit Head logo - one of the most recognized symbols in the world - Playboy licenses its trademarks, including the Playboy name, Rabbit Head design, other images, and artwork owned by the Company, for worldwide manufacture, sale, and distribution of products. PEI works with licensees to develop, market and distribute high-quality Playboy-branded merchandise that includes men's and women's fashion apparel, men's underwear, women's lingerie, accessories, collectibles, cigars, watches, jewelry, fragrances, shoes, luggage, bath and body products, small leather goods, stationary, music, eyewear, barware, home fashions, energy drinks and slot machines.
The Company owns and operates a Playboy-branded retail store in Las Vegas. Playboy also licenses similar retail stores with locations in Bangkok, Kuala Lumpur, Las Vegas and Melbourne. The stores offer customers the opportunity to purchase Playboy-branded merchandise around the world.
In October 2006, Playboy opened a multi-faceted entertainment venue in conjunction with the Palms Casino Resort in Las Vegas. The property includes a Playboy Club casino, Hugh Hefner Sky Villa, nightclub and Playboy store in addition to the stunning 30-foot tall Rabbit head on the exterior of one of the towers. Additional venues, which are currently under development in Mexico and South Beach, will allow consumers to further interact with the iconic Playboy brand and experience the Playboy lifestyle.
The Playboy Jazz Festival and Playmate Promotions are company-wide marketing activities. Since 1979, Playboy has produced the Jazz Festival on an annual basis in Los Angeles at the Hollywood Bowl. Playmate Promotions represents the Playmates in advertising campaigns, trade shows, endorsements, commercials, motion pictures, television and videos.
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