Struggling Playboy teams with IMG

Adult entertainment specialist Playboy has teamed with IMG, which will handle the licensing of its products in Asia.

Playboy produces adult content and operates channels the world over and CEO Scott Flanders said that it will increasingly look to partnership and licensing deals because the company remains “a long way from effectively monetizing the power of the Playboy brand”.

He added: “Although each of our businesses has promising opportunities, our operations are subscale in industries dominated by large players.”

IMG will handle the licensing of Playboy-branded products in Asia while Playboy will continue to run its TV channels in the region itself.

Revenues at Playboy’s international channels dropped sharply in 2009. It reported revenues of US$42.6 million last year compared to US$49.8 million a year earlier. However, revenues from the international networks increased in the last quarter of 2009, coming in at US$10.2 million compared to US$9.9 million in the same period in 2008.

Overall 2009 revenues were US$240.4 million compared to US$292.1 million a year earlier. The company narrowed its net loss to US$51.3 million from US$160.4 million in 2008.