Magazine article Folio: the Magazine for Magazine Management

In an Anti-Internet Climate, Two Publishers Pursue Broadband Initiatives

Magazine article Folio: the Magazine for Magazine Management

In an Anti-Internet Climate, Two Publishers Pursue Broadband Initiatives

Article excerpt

As many media companies reconsider their roles on the Internet and wrestle with a workable business model, at least two publishers are launching counter-intuitive moves and pursuing interactive and broadband Web ventures. In April, Hachette Filipacchi Magazines and Playboy Enterprises Inc. both announced major Internet initiatives designed to expand their online offerings.

Playboy.com and Penn National Gaming Inc. are partnering to launch PlayboyRacingUSA.com, an online parimutuel-wagering site for horse racing, in the third quarter of this year. Penn National will handle development, day-to-day operation, management and customer support. Playboy will provide marketing, branding, design and content.

The site will offer racing and wagering on nearly 30 North American racetracks, and an interactive component with a Playboy hostess offering tips and betting instructions.

"We've always believed that you've got to have multiple revenue streams," says Larry Lux, president of Playboy.com. Lux says online gaming is expected to account for 5 to 10 percent of the Web site's revenues this year. In 2000, the site generated roughly $25.2 million in revenue. Playboy.com has yet to show a profit, but is expected to break even in the first quarter of 2002, Lux says. Playboy.com offers a free, advertiser-supported site, but it also has a subscription component with 83,000 members and e-commerce ventures.

In April, Playboy.com announced a five-year pact with ACTV Inc. to support its Web- and TV-based interactive content. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.