Playboy Magazine Outsources Noneditorial Functions
 

CHICAGO — Playboy struck a deal last week with American Media Inc. to take over noneditorial functions of its legendary magazine. Production, circulation, advertising sales, marketing and other support services of both Playboy magazine and the company’s other domestic publications now are in the hands of Boca Raton, Fla.-based American Media.



The company already publishes 16 titles reaching more than 50 million readers. Some of the titles include National Enquirer, Fit Pregnancy, Men's Fitness, Star, Shape, Country Weekly and Muscle & Fitness.
The term of the deal is for five years, with recurring one-year options based on sales revenue benchmarks.



“Under the terms of the agreement, the company will pay American Media a flat rate fee in consideration for the services provided as well as cost savings and subscription incentive fees if certain benchmarks are achieved during the next two years,” Playboy said in a filing Tuesday with the Securities and Exchange Commission.



“The company will also pay certain costs and expenses so long as American Media maintains a guaranteed rate base and subscriber mix.”
Playboy magazine, which lost about $13 million last year, will keep its editorial offices in Chicago.



http://www.xbiz.com/news/115048

Re: Playboy Magazine Outsources Noneditorial Functions
 

This is the next step down the road to seperate the magazine from the brand, effectively allowing the company to sell the brand name off seperate from the "filthy porn" part of the business.

Re: Playboy Magazine Outsources Noneditorial Functions
 

And easier to buy even if your not in the printing biz.

Re: Playboy Magazine Outsources Noneditorial Functions
 

Was just gonna post this myself....

Re: Playboy Magazine Outsources Noneditorial Functions
 

Hef can't be liking this......

Re: Playboy Magazine Outsources Noneditorial Functions
 

hef controls 70% of the voting stock so technically it all comes down to whatever hef wants hef gets...which is how Playboy has landed in the mess its in.

Re: Playboy Magazine Outsources Noneditorial Functions
 

He still owns 70%?
I thought his share got diluted some time ago?

Re: Playboy Magazine Outsources Noneditorial Functions
 

Hef is apparently like a lot of pornographers. He had a great idea and had no real competition. His magazine was literate because that was the way he could actually market it in the mainstream. But when the going got tough, maybe he wasn't such a good business man.

Re: Playboy Magazine Outsources Noneditorial Functions
 

that's right

Re: Playboy Magazine Outsources Noneditorial Functions
 

What do you predict will happen when Hef kicks it?

Re: Playboy Magazine Outsources Noneditorial Functions
 

Clearly laid out in the corporate succession plan...there for the reading.
Christy takes control, and follows her plan.