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Update: Playboy CEO’s Master Plan: Saucy Clubs, Partnerships And Price Hikes

In case you missed the original article which came out over the weekend:
www.adultfyi.com/read.php?ID=39641

from www.businessinsider.com Chief executive Scott Flanders has a master plan to save Playboy: more partnerships, saucy night clubs and a price hike for the print magazine, which is currently $5.99 per issue.

Playboy had a $156 million net loss in 2008, leading the magazine to shutter its New York operations last January. Flanders’ election as chief executive last June ended a long search for a new leader after Christie Hefner, daughter of founder Hugh Hefner, resigned in December 2008. They needed an executive who could revive their dismal revenues.

Flanders sat down with Times Online to discuss his future plans:

Flanders says he is now seeking “partners” for every segment of the Playboy operation. He has already contracted out all of Playboy’s loss-making magazine, except editorial content. He promises it will be in profit by next year and that a decision to shrink to 10 issues a year will be reversed. He is also increasing the number of deals with partners producing international editions.

Recession has knocked the magazine’s circulation down to 1.5m in America, however. Flanders says the key there will be persuading consumers to pay more for the title than its current $5.99 cover price. “Magazines are going to have to pass on more of their costs.”

Next, he wants to license a string of Playboy clubs, modelled on its operation at the Palms in Las Vegas, where the resort owner runs a Playboy-branded casino that turns over $100m a year.

Will there be lap dances? Not according to Flanders. “Of course not, that’s not our brand. This is couples-friendly, that’s what differentiates us,” he told the Times. They point out that Playboy jumped into hardcore pornography a year ago by acquiring Spice TV, and then Club Jenna.

Times Online: To some, it’s been an uneasy mix. And while its hardcore investments made money for a while, free porn and online movies have now destroyed its market.

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