http://blogs.forbes.com/jeffbercovici/2011/01/10/…
Looks like Hef and CEO Scott Flanders are taking Playboy private. The idea is to implement a 5-year turnaround strategy, specifically to "transform Playboy into a brand management company", without the quarterly earnings pressures from Wall Street.
What do you guys think? Does Playboy stand a chance in the era of free, streaming porn?
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I don't think Playboy has a viable business model for the future, the brand name is great. But with Hef aging and the advent of free/quality internet pornography without the stigma of visibly buying the articles, I don;t see it as a great idea. All I can see is a Ross Johnson-type strategy for $ and a last ditch effort to save a dying brand.
Here is the issue. Playboy is essentially a very liberal GQ, but because of the nudity it cannot get the mass appeal that GQ has. Playboy has also milked the hell out of their brand and now it does not have the cache it used to. Hef is going to kick the bucket and then what? He symbolized Playboy more than Jobs does apple.
If I was Playboy I would probably kill off the nudity for the mag. Bring all the nudity online or on TV. Make Playboy a high class Maxim of sorts. This would increase the outlets for the mag and increase potential viewer ship.
I think playboy has always specialized in the 'privates'
IN all serious, I think ANT hit the nail on the head.
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+1 to ANT. I think there's some value in licensing out the name but question potential of growth. Who's advising on this deal? Jeffries I assume?
I think ANT's right, but to add further, Playboy should leverage the magazine to increase online subscriptions by throwing in subsidies that you can get in the magazine to get discounts on online content. Essentially, the magazine would be geared towards sex/men's lifestyle without nudity, which would open it up to markets like under 18 boys. The website would include a lot of the magazine content as well as a subscription based premium section that'll include softcore porn, etc.
Then, Playboy would have to really revitalize the brand, and I think this starts with announcing a heir for Hef. Nobody in the younger generation really appreciates player aspect of Hef, so in an effort to connect to the younger audience, the heir would be basically a young Hef with sex appeal. Gear more marketing towards the 16-20something year old audience, and I think you'll have a solid strategy.
As someone who drunkenly bought their first playboy just to read Edmundo's article, I was surprised at the lack of high quality pic. Honestly, I think I have seen worse in a PG13 movie. I agree with ANT's post except that their is already maxim and GQ and Playboy would then be attempting to get into a highly competitive niche market, occupied by well well financed competitors. Capital reserves is key, you don't got the reserves, you can't piss in the tall grass with the big dogs.
There is also the signma of having developed a brand image over the last 30yrs. If Playboy was to get rid of all the nudity immediately, could you see yourself reading a playboy on the bus or in the doctor's office? People would still not want to be seen reading the magazine in public.
Playboy is becoming increasingly obselete. I mean once you've seen Japanese puke porn you cant get off on Playboy anymore.
Did anyone else find this sentence laughable, considering the sexual nature of the content?
"(Hefner) has been taking it on the chin from a number of different shareholders demanding the company be sold or go private," said Caris & Co analyst David Miller, who raised the rating and price target on Playboy on December 22.
I mean for real, taking on the chin!? hahaha, he for sure did that on purpose
Agree, but with the rate of celebrities getting naked on their own, PB is almost out of that game also.
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