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Playboy Ditches DVD in Favor of Online Distribution

In a move expected to save the company an estimated $12 million per year, Reuters reports that the Playboy announced the decision to distribute content online in a recent regulatory filing.

Playboy spokesperson Martha Lindeman said the DVD business was accounted for on the company’s earnings statements under "Other," together with Playboy radio and its Alta Loma production company. In the first half of 2008 Playboy Inc. saw that line item drop by half a million dollars compared to that period in 2007.

Digital distribution is something that’s becoming increasingly popular among musicians; however this is one of the first high profile switches to online distribution we’ve seen in the adult movie business. It’s certainly interesting given the impact experts expected the adult industry’s position on Blu-ray and HD DVD to have on the consumer market.

The adult industry played a huge part in the format war between VHS and Betamax. While longer recording times and affordability for VHS were a sizable factor in higher consumer adoption of the format towards the end of the VCR era, the porn industry initially flooded the marketplace with scores of adult movies on VHS, leading many people to purchase VHS-compatible VCRs.

Playboy said the move to ditch DVDs will mean a reduction in staff amounting to 80 employees and cost the company $2 million in restructuring charges.

Read more on Reuters.

  • falchard
    Great move. I won't tell you how many times I was getting my playboy DVDs from the mail room and the other tenants made fun of me for not getting actual porn.
    Reply
  • kschoche
    falchardGreat move. I won't tell you how many times I was getting my playboy DVDs from the mail room and the other tenants made fun of me for not getting actual porn.ROFL, its so freaking true
    Reply
  • it's good.
    But there is a more easy to rip your playboy DVDs to your computer or popular players, such as ipod, iphone and so on
    http://www.convert-video-dvd.com/dvd-ripper.html#115
    Reply
  • mdillenbeck
    I'm surprised that there hasn't been a bunch of comments saying this is a conspiracy between Playboy and the cable companies to drive people over their caps and into business plans.

    Anyway, as already stated, Playboy isn't really that "porn industry" everyone is looking to. More influential than late night Cinemax for sure, but probably less influential than sites like Youporn.
    Reply
  • NuclearShadow
    I don't think its a good move at the moment. Sure digital distribution is getting more popular but people are not ready to fully convert right now. This may end up hurting Playboy's sales in the end and costing them more than they are saving.
    Reply
  • Tindytim
    NuclearShadowI don't think its a good move at the moment. Sure digital distribution is getting more popular but people are not ready to fully convert right now. This may end up hurting Playboy's sales in the end and costing them more than they are saving.Very true, they lose a few hundred people, and half of their market is gone.

    Most popular porn is already DD. Playboy, and Girls Gone Wild are part of a decaying softcore trend. When people have sites that cater to exactly what they want, they don't have to deal with vanilla anymore. If anything, Playboy is just trying to become another crappy porn site.

    I didn't actually know Playboy produced anything other than a magazine.
    Reply
  • Rouke
    Even funnier, Playboy is ditching the "old"-industry and adapting the new one.. very smart move.
    As Bill might've been making some stupid remarks over the last couple of decades as: "nobody will ever use more than 640Kb )

    He ís right considering the move form hardware-moveable stuff to down- & up-loadable content.

    How well Playboy will implement this strategy is up to them.
    There's at least one point that has to be expected: If A customer has bought it, they must & always have to get the right to make A back-up/get A new copy! Without A receipt.
    Let's face it, not everybody has A burn-proof home for all their receipts over; let's say 20 years..

    Playboy (in this example) got A paying consumer, let playboy deal with the privacy & safekeeping of info that paying consumers leave behind!!!
    Reply
  • dheadley
    Rouke If A customer has bought it, they must & always have to get the right to make A back-up/get A new copy! Without A receipt.Let's face it, not everybody has A burn-proof home for all their receipts over; let's say 20 years..Playboy (in this example) got A paying consumer, let playboy deal with the privacy & safekeeping of info that paying consumers leave behind!!!

    This is something that always bothers me with the whole downloaded content thing. People always say that the company has to make whatever they purchased available for redownload forever without the hassle of a reciept blah blah blah.

    They should not be required to do anything more than any brick and mortor business does in reguards to replacement. no proof of purchase, no replacement, no discussion.

    Every site I have ever used for downloadable content has in my opinion gone above and beyond thier duty by allowing me to log into my account and re-download something I have deleated off my computer.

    your burn proof house example highlights this. if your house burned down you aren't going to get replacements for your DVD's lost execpt by ppurchasing them again with the insurance money. why should some online place be required to do it either. but most of them you would be able to do so, making them way better in the end.
    Reply
  • gm0n3y
    Why would anybody want to watch porn on a DVD? Its way easier to just download it. Oh, and the whole paying thing is kinda weird too.
    Reply