Profile: Playboy Enterprises, Inc. (PLA)

Playboy Enterprises, Inc. (Playboy) is a media entertainment and lifestyle company. The Company’s programming and content is available worldwide on television networks, Websites, mobile platforms and radio. Playboy operates in three segments: Entertainment, Publishing and Licensing. The Entertainment Group operations include the production, marketing and sales of programming under the Playboy, Spice and other brand names, which are distributed through various channels, including domestic and international television (TV), Internet, wireless and satellite radio. Its Publishing Group operations include the publication of Playboy magazine, special editions and other domestic publishing businesses, including books and calendars, and the licensing of international editions of Playboy magazine. The Company’s Licensing Group operations include the licensing of consumer products carrying one or more of its trademarks and/or images, Playboy-branded retail stores, multifaceted location-based entertainment venues and certain revenue-generating marketing activities. During the year ended December 31, 2008, the Company acquired Playboy-branded retail store in Las Vegas.

Entertainment Group

The Company’s Entertainment Group develops, produces, acquires and distributes a range of lifestyle adult television programming for its domestic and international TV networks, pay-per-view (PPV), subscription pay-per-month (PPM), video-on-demand (VOD), subscription video-on-demand (SVOD), subscription package and worldwide DVD products. Its productions include magazine-format shows, reality-based and dramatic series, documentaries, live events and celebrity and Playmate programs. It has produced a number of shows that air on the domestic and international Playboy TV networks and are distributed internationally in countries where it does not have networks. Its original series programming includes Foursome, Money Talks, Naughty Amateur Home Videos, Search for the Perfect Girlfriend and 69 Sexy Things to Do Before You Die. In addition, the Company develops, co-produces shows and series to air on third-party networks, including The Girls Next Door on E! Entertainment Television and motion pictures, including The House Bunny and Miss March.

The Company operates several domestic TV networks, including Playboy TV, Playboy TV en Espanol and the Spice Digital Networks. Its domestic TV content is distributed primarily through cable, such as Comcast and Time Warner Cable; direct-to-home (DTH), such as DirecTV and EchoStar, and telephone companies (Telcos), such as Verizon and AT&T, which distributes television through phone and/or fiber optic lines.

The Company owns and operates or licenses Playboy, Spice and locally branded TV networks in the United Kingdom, which are further distributed through DTH and cable throughout greater Europe. In addition, it has networks in Australia, France, Germany, Hong Kong, New Zealand, South Korea and Turkey. Also, through joint ventures, it has minority equity interests in TV networks in Latin America, Iberia and Japan. Playboy also operates various subscription-based and free Websites under its Playboy and other brands. It outsources e-commerce businesses to third parties. Playboy Radio is a 24-hour, Playboy-branded radio channel available on SIRIUS Satellite Radio.

Publishing Group

Playboy magazine is a general-interest magazine, targeted to men. The Company licenses the right to publish international editions of Playboy magazine in the 26 countries, which includes Argentina, Brazil, Bulgaria, Colombia, Croatia, the Czech Republic, Estonia, France, Germany, Greece, Hungary, Italy, Lithuania, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Ukraine and Venezuela. The Company has created media extensions, such as special editions and calendars, which are primarily sold in newsstand outlets.

Licensing Group

The Company licenses the Playboy name, the Rabbit Head Design and other images, trademarks and artwork for the worldwide manufacture, sale and distribution of a multitude of consumer products. It works with its licensees to develop, market and distribute Playboy-branded merchandise. Its licensed product lines include men’s and women’s apparel, men’s underwear and women’s lingerie, accessories, collectibles, cigars, watches, jewelry, fragrances, shoes, luggage, bath and body products, small leather goods, stationery, music, eyewear, barware, home fashions and slot machines. It also licenses art-related products based on its art collection, most of which was commissioned as illustrations for Playboy magazine.