Online Competition Hurts Adult Magazines

[Mike AI]

http://story.news.yahoo.com/news?tmpl=stor...magazine_woes_2 (http://story.news.yahoo.com/news?tmpl=story&cid=528&ncid=528&e=1&u=/ap/20031109/ap_on_bi_ge/adult_magazine_woes_2)

Technology - AP

Online Competition Hurts Adult Magazines
2 hours, 8 minutes ago Add Technology - AP to My Yahoo!


By LUKAS I. ALPERT, Associated Press Writer

NEW YORK - After 35 years in the business of titillating and offending, pornographer Al Goldstein says his magazine can't compete anymore. The audience is just as large, he says, but the Internet has transformed the product and its delivery.

Just over a month ago, Goldstein stopped publishing Screw magazine and filed for Chapter 11 bankruptcy, giving him a chance to cut costs, relaunch the magazine and refocus attention on his Web site.


Similar pressures are seen throughout the adult publishing field. Bob Guccione's General Media Inc., for instance, has also filed for Chapter 11 protection, although the company's trademark Penthouse magazine continues publishing while the company restructures.


On Friday, Guccione resigned as CEO of General Media's parent company, Penthouse International. He remained at the helm of the magazine, which has seen circulation decline from nearly 1 million to 565,700 over the past five years.


Goldstein said circulation woes throughout the field show "we are an anachronism; we are dinosaurs; we are elephants going to the bone cemetery to die. ... The delivery system has changed, and we have to change with it if we want to survive."


Founded in 1968, Screw was successful in its early years. Its mix of scatological editorials, pornographic pictures and tongue-and-cheek articles sold as many as 140,000 copies a week. By last year, sales had dipped to around 30,000.


Purveyors of adult fare must expand beyond traditional publishing methods to survive, said Samir Husni, head of the magazine program at the University of Mississippi's journalism school.


"The magazine may remain the cornerstone for the name brand, but in the future, the real money will be made elsewhere," Husni said. Hundreds of new adult Web sites launch every month, he said, compared to 30 new sex magazines all of last year.


"That's one magazine category that really can't compete with the Internet and television," Husni said. "Sex has become so much a mainstream entity."


Hustler Magazine publisher Larry Flynt, who says his company has succeeded in the new marketplace, agrees that magazines are a dying breed.


"This past decade has been very, very bad for men's magazines and it could become worse," he said by phone from his office in Los Angeles. "I'm not going to say it's going to become extinct because some people will always want to feel that magazine in their hands, but it's never going to have the impact it once had."


Flynt said his company began to diversify over a decade ago, and now has a presence on the Internet and in the adult movie industry.


"You can see more on cable and satellite today than you could see in what I published in 1974," Flynt said. "I honestly think Guccione and Al Goldstein were not aware of what kind of an effect technology was going to have on publishing."


Even an industry stalwart like Playboy, which has remained profitable, has seen growing success from its online business while magazine revenues have lagged.


Representatives for Playboy Enterprises Inc. did not return calls for comment, but in its most recent quarterly results, the company reported that its online business swung to a profit of $474,000 compared with a loss of $2.2 million in the same period a year ago. Meanwhile, publishing earnings dipped 47 percent to $1 million because of a decline in advertising revenue.


While the more widely known adult magazines may always have an audience, Husni said, fringe publications will have trouble surviving.


Tony East, a manager of Inserection, a chain of adult stores in the Atlanta area, said that's what he's seen.





"We still do fine with titles that you can get at most newsstands, like Playboy or Hustler," East said. "But when it comes to anything obscure ... they really don't sell as well as they used to."

Despite all this, Goldstein is optimistic he can stage a comeback. Along with a new Internet focus, Goldstein has rented a smaller office, recruited a smaller freelance staff and enlisted a new distributor.

He hopes to have a new issue of Screw on the newsstands soon. "It's going to be dirtier and filthier than ever," he said.

[gonzo]

Originally posted by Mike AI@Nov 9 2003, 04:20 PM
http://story.news.yahoo.com/news?tmpl=stor...magazine_woes_2 (http://story.news.yahoo.com/news?tmpl=story&cid=528&ncid=528&e=1&u=/ap/20031109/ap_on_bi_ge/adult_magazine_woes_2)

Technology - AP

Online Competition Hurts Adult Magazines
2 hours, 8 minutes ago Add Technology - AP to My Yahoo!


By LUKAS I. ALPERT, Associated Press Writer

NEW YORK - After 35 years in the business of titillating and offending, pornographer Al Goldstein says his magazine can't compete anymore. The audience is just as large, he says, but the Internet has transformed the product and its delivery.

Just over a month ago, Goldstein stopped publishing Screw magazine and filed for Chapter 11 bankruptcy, giving him a chance to cut costs, relaunch the magazine and refocus attention on his Web site.


Similar pressures are seen throughout the adult publishing field. Bob Guccione's General Media Inc., for instance, has also filed for Chapter 11 protection, although the company's trademark Penthouse magazine continues publishing while the company restructures.


On Friday, Guccione resigned as CEO of General Media's parent company, Penthouse International. He remained at the helm of the magazine, which has seen circulation decline from nearly 1 million to 565,700 over the past five years.


Goldstein said circulation woes throughout the field show "we are an anachronism; we are dinosaurs; we are elephants going to the bone cemetery to die. ... The delivery system has changed, and we have to change with it if we want to survive."


Founded in 1968, Screw was successful in its early years. Its mix of scatological editorials, pornographic pictures and tongue-and-cheek articles sold as many as 140,000 copies a week. By last year, sales had dipped to around 30,000.


Purveyors of adult fare must expand beyond traditional publishing methods to survive, said Samir Husni, head of the magazine program at the University of Mississippi's journalism school.


"The magazine may remain the cornerstone for the name brand, but in the future, the real money will be made elsewhere," Husni said. Hundreds of new adult Web sites launch every month, he said, compared to 30 new sex magazines all of last year.


"That's one magazine category that really can't compete with the Internet and television," Husni said. "Sex has become so much a mainstream entity."


Hustler Magazine publisher Larry Flynt, who says his company has succeeded in the new marketplace, agrees that magazines are a dying breed.


"This past decade has been very, very bad for men's magazines and it could become worse," he said by phone from his office in Los Angeles. "I'm not going to say it's going to become extinct because some people will always want to feel that magazine in their hands, but it's never going to have the impact it once had."


Flynt said his company began to diversify over a decade ago, and now has a presence on the Internet and in the adult movie industry.


"You can see more on cable and satellite today than you could see in what I published in 1974," Flynt said. "I honestly think Guccione and Al Goldstein were not aware of what kind of an effect technology was going to have on publishing."


Even an industry stalwart like Playboy, which has remained profitable, has seen growing success from its online business while magazine revenues have lagged.


Representatives for Playboy Enterprises Inc. did not return calls for comment, but in its most recent quarterly results, the company reported that its online business swung to a profit of $474,000 compared with a loss of $2.2 million in the same period a year ago. Meanwhile, publishing earnings dipped 47 percent to $1 million because of a decline in advertising revenue.


While the more widely known adult magazines may always have an audience, Husni said, fringe publications will have trouble surviving.


Tony East, a manager of Inserection, a chain of adult stores in the Atlanta area, said that's what he's seen.





"We still do fine with titles that you can get at most newsstands, like Playboy or Hustler," East said. "But when it comes to anything obscure ... they really don't sell as well as they used to."

Despite all this, Goldstein is optimistic he can stage a comeback. Along with a new Internet focus, Goldstein has rented a smaller office, recruited a smaller freelance staff and enlisted a new distributor.

He hopes to have a new issue of Screw on the newsstands soon. "It's going to be dirtier and filthier than ever," he said.
Porn Royals take heed YOUR NEXT!

I remember when Playboy had is dialup service via a 1-800 number. They talked to me at Comdex...when I looked at it...it was a mere upsell to the magazine. When I asked the guy about it...he said we really dont want to compete with the magazine or canabalize the sales. Online is a small supplimental income...the real money is in print.

I wonder how it feels to me working at Wendys?
They sunk mega bucks into that at the right time to build it and ensure brand awareness. And still they missed the entire point.

"Wonder Whos Cryin Now?"

[Mike AI]

Originally posted by gonzo+Nov 9 2003, 04:29 PM--></span><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (gonzo @ Nov 9 2003, 04:29 PM)</td></tr><tr><td id='QUOTE'><!--QuoteBegin--Mike AI@Nov 9 2003, 04:20 PM
http://story.news.yahoo.com/news?tmpl=stor...magazine_woes_2 (http://story.news.yahoo.com/news?tmpl=story&cid=528&ncid=528&e=1&u=/ap/20031109/ap_on_bi_ge/adult_magazine_woes_2)

Technology - AP

Online Competition Hurts Adult Magazines
2 hours, 8 minutes ago Add Technology - AP to My Yahoo!


By LUKAS I. ALPERT, Associated Press Writer

NEW YORK - After 35 years in the business of titillating and offending, pornographer Al Goldstein says his magazine can't compete anymore. The audience is just as large, he says, but the Internet has transformed the product and its delivery.

Just over a month ago, Goldstein stopped publishing Screw magazine and filed for Chapter 11 bankruptcy, giving him a chance to cut costs, relaunch the magazine and refocus attention on his Web site.


Similar pressures are seen throughout the adult publishing field. Bob Guccione's General Media Inc., for instance, has also filed for Chapter 11 protection, although the company's trademark Penthouse magazine continues publishing while the company restructures.


On Friday, Guccione resigned as CEO of General Media's parent company, Penthouse International. He remained at the helm of the magazine, which has seen circulation decline from nearly 1 million to 565,700 over the past five years.


Goldstein said circulation woes throughout the field show "we are an anachronism; we are dinosaurs; we are elephants going to the bone cemetery to die. ... The delivery system has changed, and we have to change with it if we want to survive."


Founded in 1968, Screw was successful in its early years. Its mix of scatological editorials, pornographic pictures and tongue-and-cheek articles sold as many as 140,000 copies a week. By last year, sales had dipped to around 30,000.


Purveyors of adult fare must expand beyond traditional publishing methods to survive, said Samir Husni, head of the magazine program at the University of Mississippi's journalism school.


"The magazine may remain the cornerstone for the name brand, but in the future, the real money will be made elsewhere," Husni said. Hundreds of new adult Web sites launch every month, he said, compared to 30 new sex magazines all of last year.


"That's one magazine category that really can't compete with the Internet and television," Husni said. "Sex has become so much a mainstream entity."


Hustler Magazine publisher Larry Flynt, who says his company has succeeded in the new marketplace, agrees that magazines are a dying breed.


"This past decade has been very, very bad for men's magazines and it could become worse," he said by phone from his office in Los Angeles. "I'm not going to say it's going to become extinct because some people will always want to feel that magazine in their hands, but it's never going to have the impact it once had."


Flynt said his company began to diversify over a decade ago, and now has a presence on the Internet and in the adult movie industry.


"You can see more on cable and satellite today than you could see in what I published in 1974," Flynt said. "I honestly think Guccione and Al Goldstein were not aware of what kind of an effect technology was going to have on publishing."


Even an industry stalwart like Playboy, which has remained profitable, has seen growing success from its online business while magazine revenues have lagged.


Representatives for Playboy Enterprises Inc. did not return calls for comment, but in its most recent quarterly results, the company reported that its online business swung to a profit of $474,000 compared with a loss of $2.2 million in the same period a year ago. Meanwhile, publishing earnings dipped 47 percent to $1 million because of a decline in advertising revenue.


While the more widely known adult magazines may always have an audience, Husni said, fringe publications will have trouble surviving.


Tony East, a manager of Inserection, a chain of adult stores in the Atlanta area, said that's what he's seen.





"We still do fine with titles that you can get at most newsstands, like Playboy or Hustler," East said. "But when it comes to anything obscure ... they really don't sell as well as they used to."

Despite all this, Goldstein is optimistic he can stage a comeback. Along with a new Internet focus, Goldstein has rented a smaller office, recruited a smaller freelance staff and enlisted a new distributor.

He hopes to have a new issue of Screw on the newsstands soon. "It's going to be dirtier and filthier than ever," he said.
Porn Royals take heed YOUR NEXT!

I remember when Playboy had is dialup service via a 1-800 number. They talked to me at Comdex...when I looked at it...it was a mere upsell to the magazine. When I asked the guy about it...he said we really dont want to compete with the magazine or canabalize the sales. Online is a small supplimental income...the real money is in print.

I wonder how it feels to me working at Wendys?
They sunk mega bucks into that at the right time to build it and ensure brand awareness. And still they missed the entire point.

"Wonder Whos Cryin Now?"[/b][/quote]


The Royals are not going anywhere, it took then 6-7 years but they have caught up, and are going to get VERY agressive.

The internet pie is no longer growing, so now everyone is fighting to hold on to their peice, while trying to snag someone elses. Competition is going to get more and more cutthroat everyday....

The battles lines have been drawn.... The Royals ( like all Royals through out time) beleive the little people should be left nothing but the crumbs....

[Carrie]

But all Royals throughout time have had their power taken away from them, and those that survived are nothing more than showpieces on holidays.

"Don't you know, they're talkin' about a revolution in town..."

[Rolo]

Yeah, The irony is that the adult sector on the internet is getting harder, so comming from print to internet will not be easy (well, that is if your goal is to make a multimillion dollar adult internet business).

[Candice]

since internet was launched....online transactions and businesses are becoming more and more in demand..maybe because of accessibility and people would choose to have it than other means!

[Minte]

Magazines lost site of the demographics...As the *baby boomers* age..their eyesight naturally gets worse. If they would have thought that through and made the text LARGER..i would've kept my subscriptions up> :)

[Winetalk.com]

every day the mag subscriber dies and Internet user is born

[Hell Puppy]

It's not just porn mags that are hurting. It's impacting mainstream magazines, newspapers, etc.

I used to subscribe to at least a dozen magazines at any given time plus a couple of newspapers. I've dropped all but a couple. The reason being that more and more the info in the magazines is old news by the time it arrives, even the weeklies. I will have already read it all on the web.

Those who learn how to embrace the internet and incorporate it into their business, and their business into it, will survive. The others might as well be making horse drawn carriages...

[FATPad]

Makes me think of the speech from Other People's Money for some reason.

"This company is dead. I didn't kill it. Don't blame me. It was dead when I got here. It's too late for prayers. For even if the prayers were answered, and a miracle occurred, and the yen did this, and the dollar did that, and the infrastructure did the other thing, we would still be dead. You know why? Fiber optics. New technologies. Obsolescence. We're dead alright. We're just not broke. And you know the surest way to go broke? Keep getting an increasing share of a shrinking market. Down the tubes. Slow but sure."

[Peaches]

I must be one of the last holdouts. I love sitting/lying down and reading a magazine, newspaper, etc. I'm pretty sure all the magazines I get subscriptions to are available online and with some, I use their online service to pull up old issues (Consumer Reports, National Geographic). But I still love sitting outside, at the table, lying in bed and reading my magazines and looking at the pictures and ads. Heck, I read the AJC out on the porch today on an awesome day. No way I'd trade that for a CRT screen. :cdance:

[Hell Puppy]

Originally posted by Peaches@Nov 9 2003, 09:16 PM
I must be one of the last holdouts. I love sitting/lying down and reading a magazine, newspaper, etc. I'm pretty sure all the magazines I get subscriptions to are available online and with some, I use their online service to pull up old issues (Consumer Reports, National Geographic). But I still love sitting outside, at the table, lying in bed and reading my magazines and looking at the pictures and ads. Heck, I read the AJC out on the porch today on an awesome day. No way I'd trade that for a CRT screen. :cdance:
Get yourself a notebook and wireless network, you can do the same thing with the web....

[gonzo]

Originally posted by Hell Puppy+Nov 9 2003, 09:25 PM--></span><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Hell Puppy @ Nov 9 2003, 09:25 PM)</td></tr><tr><td id='QUOTE'><!--QuoteBegin--Peaches@Nov 9 2003, 09:16 PM
I must be one of the last holdouts. I love sitting/lying down and reading a magazine, newspaper, etc. I'm pretty sure all the magazines I get subscriptions to are available online and with some, I use their online service to pull up old issues (Consumer Reports, National Geographic). But I still love sitting outside, at the table, lying in bed and reading my magazines and looking at the pictures and ads. Heck, I read the AJC out on the porch today on an awesome day. No way I'd trade that for a CRT screen. :cdance:
Get yourself a notebook and wireless network, you can do the same thing with the web....[/b][/quote]
Shes too busy watching the drive way incase a hummer comes thundering down it packed full of nekkid ass!

[Peaches]

Originally posted by gonzo@Nov 9 2003, 10:28 PM
Shes too busy watching the drive way incase a hummer comes thundering down it packed full of nekkid ass!
Some moron came down here around 11 PM last night - my first thought was "Dammit! HP and Gonzo figured out where the house was!" :zoinks:
But they turned around and left.

They were in a Wrangler which I've thought about buying, but that's the 2nd one I've seen in a month (damn tourist) that almost didn't make it up the hill. I SO wanted them to get stuck last night and me answer the door with my gun in my hand. It's stupid enough to try that hill in the day, but at night is just absurd.

Get yourself a notebook and wireless network, you can do the same thing with the web....

It's NOT the same. :angry:

[Carrie]

Originally posted by Hell Puppy+Nov 9 2003, 09:25 PM--></span><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Hell Puppy @ Nov 9 2003, 09:25 PM)</td></tr><tr><td id='QUOTE'><!--QuoteBegin--Peaches@Nov 9 2003, 09:16 PM
I must be one of the last holdouts. I love sitting/lying down and reading a magazine, newspaper, etc. I'm pretty sure all the magazines I get subscriptions to are available online and with some, I use their online service to pull up old issues (Consumer Reports, National Geographic). But I still love sitting outside, at the table, lying in bed and reading my magazines and looking at the pictures and ads. Heck, I read the AJC out on the porch today on an awesome day. No way I'd trade that for a CRT screen. :cdance:
Get yourself a notebook and wireless network, you can do the same thing with the web....[/b][/quote]
But having a 5lb machine in your lap is just so much different than having a foldable, rollable, bendable magazine in your hands with its glossy pages.

Getting it in the mail is like a mini-christmas. Feeling it in your hands is like the difference between looking at a pretty girl on the screen and touching a pretty girl sitting right in front of you.

[Peaches]

Originally posted by Carrie@Nov 9 2003, 10:42 PM
But having a 5lb machine in your lap is just so much different than having a foldable, rollable, bendable magazine in your hands with its glossy pages.

Getting it in the mail is like a mini-christmas. Feeling it in your hands is like the difference between looking at a pretty girl on the screen and touching a pretty girl sitting right in front of you.
:okthumb:

Maybe it's a "girl thang". :P

[Hell Puppy]

Well, I agree to a point. I keep a couple of magazine subscriptions around for trips to the bathroom. Dont wanna risk any moisture getting in the notebook.... :moon:

[gonzo]

Originally posted by Hell Puppy@Nov 9 2003, 10:27 PM
Well, I agree to a point. I keep a couple of magazine subscriptions around for trips to the bathroom. Dont wanna risk any moisture getting in the notebook.... :moon:
That pan roasted striped bass does it to you everytime!

I told you stick to the fried catfish and hushpuppies!

Youll get your ass kicked round here ordering that fu fu food.

[Hell Puppy]

Yeah, that gourmet stuff turns into motor oil....

[Penthouse_mike]

Besides the general pain being felt by magazine publishers with fewer ad pages, adult magazines have been also been hit by the profileration of free porn on the internet and a failure to adopt the 'winning designs' for their business models on the internet - e.g. affiliate marketing.

Great content is what distinguished adult magazines i.e. Playboy, Penthouse, Huslter from their print rivals, however on-line.... traffic was the most imprtant factor and they failed to develop the traffic sources that their audio text pedigreed or newly founded internet rivals did.

Second, adult magazines sell representations of sexual situations. However a picture bears less similarities to the experience of sex than a motion picture or a real live interaction with a model in a live chat. Given a choice more consumers would choose a motion pcitures or the internet.

I do believe adult pubs do have some oppurtunities for example in MMS content. This deliever channel is still in its infancy in the US. If an adult pub can develop a profile in this market i think their brand awareness would be a advantage. They just need to be nimble.

BTW. I would not look to Playboy as a successful on-line operation. They overspend like crazy and as result their margins are razor thin. e.g. $300,000 on $9.3 million in Q1 2003

[Peaches]

Originally posted by Hell Puppy@Nov 9 2003, 11:27 PM
Well, I agree to a point. I keep a couple of magazine subscriptions around for trips to the bathroom. Dont wanna risk any moisture getting in the notebook.... :moon:
Yeah, that gourmet stuff turns into motor oil....

Between this and Taco Bell, I officially know more about HP's bodily functions than I ever wanted to know. :zoinks:

[Hell Puppy]

Originally posted by Peaches+Nov 10 2003, 07:51 AM--></span><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Peaches @ Nov 10 2003, 07:51 AM)</td></tr><tr><td id='QUOTE'><!--QuoteBegin--Hell Puppy@Nov 9 2003, 11:27 PM
Well, I agree to a point. I keep a couple of magazine subscriptions around for trips to the bathroom. Dont wanna risk any moisture getting in the notebook.... :moon:
Yeah, that gourmet stuff turns into motor oil....

Between this and Taco Bell, I officially know more about HP's bodily functions than I ever wanted to know. :zoinks:[/b][/quote]
Can we talk for a minute about how pointless it is to eat corn?

[Cassie]

times change, people change but there is nothing like a collectors copy of one of these magazines. some of those magazines are collectors editions of which will be worth some money; the internet does not provide that.

oh well <_<

[Hell Puppy]

Originally posted by Cassie@Nov 10 2003, 11:45 PM
times change, people change but there is nothing like a collectors copy of one of these magazines. some of those magazines are collectors editions of which will be worth some money; the internet does not provide that.

oh well <_<
People will collect anything....

Part of the value of the Internet is that it is a great archive of knowledge though.

I can typically find in minutes what might take hours to locate looking thru old magazines on microfiche, etc.

Old nudie mags might be one of the few things that are immune to this especially since Playboy in particular voraciously protects their copyrights.