End of an Era: Playboy Abandons DVD Market in Favor of Double Ds (Digital Distribution)


Forget about the fight between DVD and Blu-ray, Playboy has decided to leave physical media behind altogether. Instead, the company best known for its articles (you do read Playboy for the articles, right?) will focus solely on digital distribution, according to the company's regulatory filing. The move is expected to save Playboy about $12 million a year in expenses.

Shedding its DVD operation will result in the loss of 80 jobs an $2 million in restructuring charges. Combined with an additional $4 million taken against archival materials and a receivable, Playboy expects to take a total of $6 million in charges against operating income resulting in a net loss for the third quarter.

Despite the initial net loss, Christie Hefner, the company's chairman and chief executive, wrote in a memo to all Playboy employees that the goal is to return the company to profitability in 2009. In addition to migrating to digital distribution, savings will come from cutting overtime, travel, and entertainment.

Almost makes you not want to work at Playboy. Almost.

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