Quick Index
 Adult Industry News
Search AINews Database
Type Keyword or Phrase Here
HardArt Films Pornography feminists unshackle their desires and celebrate their sexuality in the patriarchal world

Front Page
Film News
Media News
Business News
Clubs & Appearances
Law & Politics
Internet & Mobile News
Lifestyles Arts Health Charity
Letters to the Editor
Movie Spotlight Reviews
Pornstar Pages
AINews Staff
Ad Rates
PR 101: Press Release Service

Porn for GEEKS! Meet me & my friends!

Eva Angelina at Twistys

August 17, 2001 02:12pm
Spain's Private Media Group Plans Euro Listing (WSJ)
Source: ManNet

(BARCELONA, SPAIN) -- A walk around the offices of media group Milcap SA has all the familiar sights: puppy-dog screensavers jostle for attention with thumbtacked cartoons, and proofs of next month's magazine are littered across worktables.

Most of the men and women hunched over their monitors, though, are peering intently at still shots of hardcore pornography. Others are browsing a broadband video site with digital-quality, full-screen videos showing a very active half-dozen naked bodies on a beach. And nobody's looking over their shoulders.

Barcelona is home to Milcap, the flagship company within Nasdaq Stock Market-listed Private Media Group Inc. [http://PRVT.com], one of the world's premier producers of hardcore pornography. With Private already a familiar newsstand name in Europe, chairman Berth Milton Jr. wants to put it on the short-list of European investors as well, with a secondary stock-market listing planned for mid-October in Germany.

Proceeds from the offering, which could total 100 million euros, will fuel Private's aggressive expansion into the highly lucrative U.S. market, an expansion that has enabled the company to transform itself from one homemade magazine title in 1991 to today's multimedia empire comprising four magazines, 35 Web sites, almost 400 movies, shopping sites, a clothing line and broadcast deals on three continents.

"It would give us the money to buy absolutely anything in this business," says the 43-year old Mr. Milton. In his top-floor office he has photos of his three daughters on the side table, a view over the industrial suburbs outside Barcelona and dozens of reports on his desk. What he doesn't have is any of the magazines, posters, or catalogs that blanket the rest of the building, even as the Swedish-born Mr. Milton waxes grandiose about Private's potential in a world where hardcore porn is becoming increasingly mainstream.

So far, Private's recipe has proved to be recession-proof and attractive for investors. For the first half, Private earned $4.8 million (5.3 million euros) on sales of $16.6 million, and the company expects bottom-line profit to exceed $12 million this year. More importantly, the higher-margin new media sales -- digital videodiscs, the Internet and broadcasting -- more than doubled in the first half to $9.2 million, even as magazine sales held steady.

At first glance, the top-line numbers look paltry, especially when compared with Playboy Enterprises Corp.'s [http://PlayboyEnterprises.com] more than $300 million in annual sales. But that is mostly because of Private's traditional accounting procedures, where only royalties are billed as revenue, rather than the entire sale price of its products. As the company signs new contracts, it is slowly changing its procedures to reflect higher top-line growth. As it stands, though, Private's bottom-line margins of 30% put it well ahead of Playboy, which posted a net loss of almost $50 million last year, partly for accounting reasons.

Mr. Milton grabs a sheet with all the sales figures for the company's DVD movies. Topping the list is "Tatiana," the first in a glitzy, high-budget trilogy set in 19th century Europe and produced in 1998. More than 32,000 copies have been sold in the new format, more than twice as many as were sold on video despite coming out a year later on the new format.

"There are virtually no incremental costs there -- that's pure profit," Mr. Milton explains, running his finger down the list of more than 100 titles. Those movies, as well as more than two million still images from about 30 years of magazines, are the bread and butter of Private's business. The profit comes simply from channeling existing material onto a variety of different distribution platforms -- DVD, Internet, pay-per-view television -- at virtually no cost.

Private's got a leg up on the competition in a couple of ways. For starters, its movies garner multiple awards each year at home and in the U.S., and are among the more expensive productions in the adult industry. Shot by top directors, each production averages more than $100,000 to make. Many shot-on-video productions cost less than $20,000 to make, and a big chunk of that often is spent on fancy boxtop art to lure customers rather than on the production itself. This year, Private will produce about 80 new titles.

"They are absolutely synonymous with high-quality productions, one of the very top producers in the world," says Mike Ramone, editor in chief of Los Angeles-based Adult Video News [http://AVN.com], the leading industry trade magazine. AVN sponsors the annual adult video awards [http://AVNawards.com] -- considered the Oscars of adult entertainment -- where Private has taken home plenty of awards for foreign films.

"We also own the world-wide rights to everything we've ever produced, and we've got one of the biggest libraries in the world," boasts Mr. Milton. Many of Private's rivals, including Vivid TV [http://VividTV.com] of the U.S. -- three of whose hardcore cable channels were recently acquired by Playboy -- license their productions to third parties, limiting their ability to leverage their products across all markets and platforms. For Private, that means it can distribute DVDs anywhere in the world (no country codes) and snag a share of royalties from every sale. No surprise, then, that the video masters are treated like treasures: They are stored in a special fireproof vault in the Barcelona headquarters.

And distribute they do. In the basement warehouse, three workers are filling orders constantly, grabbing DVDs, videos and magazines off the shelves and stuffing them in boxes for shipment around the world. Even the massive warehouse -- with row upon row of two-meter high shelving stacked to the gills with everything in Private's catalog -- is now too small to handle the business. Private is building new headquarters across town three times as big, with an expanded warehouse.

But the virtual business is where the money is, with Internet margins averaging 50%. The new broadband video site, PrivateSpeed [http://PrivateSpeed.com], promises to boost margins even further, with customers paying $45 for 360 minutes of access to hardcore videos -- the same material already released on video and DVD. The same logic holds true for broadcasting deals, including one with Playboy TV in the U.S., with British Sky Broadcasting PLC [http://Sky.com] in the U.K., Liberty Media Corp.'s Pramer [http://www.Pramer.com.ar] in Latin America and Wizja TV [http://www.WizjaTV.pl] in Poland.

And investors are buying: Private's stock has risen sevenfold since it was listed early in 1999, and trades at 39 times trailing earnings, or 11.3 times trailing sales. That compares with Playboy's 1.4 times trailing sales, a reflection, Mr. Milton says, not just of Private's higher profitability, but a sign that softcore offerings like Playboy's are being knocked off their perch by Private's more-explicit hardcore productions. In fact, Playboy's acquisition of Vivid's cable assets earlier this year was seen in the industry as a tacit acknowledgment that tamer fare is losing ground.

"Private and Playboy are the inevitable winners in the coming land grab in the adult industry," with the difference that Private's more-explicit offering targets a different and growing demographic, says Rob Routh, a New York-based analyst who previously covered the company for Ladenburg Thalmann [http://www.Ladenburg.com] before a merger closed the broker's media-research department. Currently, no stock analysts follow Private.

HardArt Films


New AINews Website

Top Stories

MWA: 05/24/19

MWA: 05/21/19

Sofie Marie on Swinging

MWA: 05/08/19

2019 Club EXPO Breaks Record

Emori Pleezer: BDSM Princess

Expo 2019: A Star is Born

AEE 2019: Is Camming the New Porn?

2019 XRCO Awards Nominations Announced

MWA: 04/20/19

MWA: 04/12/19

AEE 2019: Ela Darling

AEE 2019: Sofie Marie

AEE 2019: Cindy Starfall on Swinging and Camming

MWA: 04/10/19

Stunning Summer Now Loves Models Talent Agent

AEE 2019: Christiana Cinn on Porn and Camming

AEE 2019: Bree Mills, Part Two

AEE 2019: Bree Mills, Part One

Alexis Fawx: A Lesson in Self-Awareness

MWA: 04/01/19

AEE 2019: Sofia Rose, BBW Sweetheart

AEE 2019: Taylor Stevens on Camming

AEE 2019: Kelley Cabbana and Camming

MWA: 03/29/19

AEE 2019: Cory Chase

MWA: 03/27/19

MWA: 03/25/19

AEE 2019: Ember Snow Talks Cam Girls

MWA: 03/16/19

MWA: 03/08/19

MWA: 03/01/19

Charlie Biggs RIP

AEE 2019: Vanna Bardot Update

Discloses Searches for Prostitutes

Elements ~ Reviewer Rated

Industry Veteran D. Wise Passes

Decline of Big Girl Market

AEE 2019: The Code and August Ames

AEE 2019: Nina at Thirty-five

Angel Marie at Lust

Sexual Harassment ~ Reviewer Rated

MWA 12/19/18

MWA: 12/12/18

Sarah Vandella: Pushing my Boundaries

MWA: 12/10/18

MWA: 12/08/18

Reagan Foxx: A Ton of Fun

MWA: 11/28/18

MWA: 11/18/18

Depression in the Industry

Vanna Bardot: The Girl with the Braces

Scarlett Mae: Making Sex Feel Natural

MWA: 11/08/18

HardArt's Sexual Harassment Trailer

MWA: 11/07/18

HardArt Announces Sexual Harassment

Love in the Digital Age ~ Reviewer Rated

Being a Pornstar

Sexual Harassment Trailer

HardArt Lauches Website

OneStone Hub

E11EVEN, Nova Win at ED Expo

HardArt Rejects Director Sally Forth

MWA: 08/19/18

Stokely Cherry OTM

August Taylor MILF PoY Nom

Phoenix Divina Hooking

ED Expo Opening Party

Vickie Jay on VNALive

HardArt 3 Pic Deal

Iron Girls 6

Carmen Valentina NightMoves Nom

Dillion Harper at Expose

Texas, Monroe, Valentien to SEXPO

The Puppeteer

Urban X Voting Open

Brooklyn Chase in Madison

HardArt's Hypersexuals a Success!

TES Affiliate Conference

Jessica Johnson Hooking

MWA: 07/27/18

Vote Olive Glass, NightMoves

Attn: Club Owners, Managers, Staff, Entertainers

2018 Inked Awards

Hard Art's Hypersexual

MWA: 07/25/18

Johnson Hosts Urban X

Dee Wallace at Horrorfest

MWA: 07/19/18 - XRCO

AirBnB Discriminates Against Sara Jay

Hard Art Shoots First

MWA: 07/21/18

Holly Hendrix at Exxxotica

Karen Fisher at Exxxotica

Carmen Valentina at Exxxotica

DomCon Registration Opens

Luna Star at Exxxotica

Elvira Receives Price Award

BSF Media Welcomes Sabrina Deep

MWA: 07/18/18

Jenevieve Hexxx Site Launch

Sex Expo NY 2018

MWA: 07/16/18

MWA: 07/15/18

Bush 7

Hard Art Signs Director

Pulse Inks Hard Art

MWA: 06/28/18

New Studio: Hard Art

XRCO Changes Venue

The Roast of April O'Neil

McCullough, Rai on Inside

Morgan, Foxxx CoHo XRCO

Big Ass Rubdown ~ Reviewer Rated

MWA: 05/03/18

MWA: 04/29/18

MWA: 04/28/18

Natasha Nice Free Agent

Holly Hendrix Self Booking

CDC: Undetectable HIV

2018 XRCO Nominees


Natasha Nice Gangbang

Amateur Introductions 26

Sex Expo NY 2018

2018 XRCO Awards Announced

Anal Violation of Bonnie Grey ~ Reviewer Rated

Eros, a Short Film

Lee Signs Victoria June

Maxine X Voted #1

Czernich Releases Heavy Rubber 37

Legal Panel: Weinstein, #MeToo

Consent Checklist

Nice Girls Swallow 10

Paradise Wins Best Condom

Paradise, Astroglide StorErotica Nom

Paradise Marketing New Website

Dennis Paradise Inducted

Stories From

Business News

Stunning Summer Now Loves Models Talent Agent

HardArt Lauches Website

HardArt 3 Pic Deal

Hard Art Shoots First

Hard Art Signs Director

Pulse Inks Hard Art

New Studio: Hard Art

Holly Hendrix Self Booking

Natasha Nice Free Agent

Consent Checklist

LewdWork Adult Job Board

Romantic Depot Harlem

Paradise, Astroglide StorErotica Nom

Spotlight Studios Adult Industry Party

Valentina Nappi Available in 2017

Osa Lovely Signs Skyn

Genuine Sin VR

Brothel Seeks Britney Spears Lookalike

Winter Wonderland at XBIZ

Press Release Service

Nina Kayy with Skyn

Coxxx Models Licensed in CA

Bukkake Participants Needed

Lolly Ink Self Booking

XBIZ 2017 Show

Allison Kilgore Returns

Tera Patrick Available

Skyler Nicole Available

Angela White US Resident

Valentina Nappi Available

Prague for TES

Invitation to the Venus

Business News Section Index

NightMoves Call for Sponsors

Dava Foxx Self-Booking

Kahlista Stonem Available

The Hedge Against Exploitation

Toy with Raquel Sultra

XBIZ Berlin Schedule

Savana Styles Available

ChargeSavvy at ED Show

Driller Signs The Rub

NightMoves Calls for Sponsors

Casting Call

ABK Beta Users Free

OC Signs Darcie Dolce

Brittany is Back

Dollie Darko with 101 Modeling

Mercy West Available

The V Agency Joins LATATA

Sin Claire with Foxxx

New Smash VP Wyatt Case

Epoch Club Special Event

Ink Inks OC, The Rub

XBIZ 2016 Announced

RAW Signs Sasha Bradshaw

Direct Reps Harper

AJ Applegate Available

Dennis Paradise Inducted

AINews New Look

Copyright © 1998 - 2018 Adult Industry News (AINews.com)
All materials constituting text, articles, press releases, stories, columns, photographs, graphics, and code on the AINews.com domain are protected by copyright, and either owned by Adult Industry News (AINews.com), or reproduced with permission from other copyright owners. It may be downloaded and printed for personal reference, but not otherwise copied, altered in any way, or transmitted to others, without the written permission of Adult Industry News (AINews.com).