February 18, 2000 07:28am
Private Media Group & International Film Productions & Distributors Announce Joint Venture Agreement
Source: PRNewswire
by: Company Press Release
(BARCELONA, Spain) -- Private Media Group, Inc. (Nasdaq: PRVT - news), a leader in high-class adult entertainment products and services since 1965 and the first such company trading on the Nasdaq National Market, today announced it has signed an exclusive joint venture with International Film Productions and Distributions, Ltd. (IFPD). IFPD is a European based television broadcasting company, associated with major content providers, specializing in the distribution of cable and satellite-TV channels. The agreement allows for the co-operation of both companies to create two new adult television channels to be broadcast worldwide.
Under the terms of the joint venture agreement International Film Productions and Distributions, in return for Private providing its full viewing content and trademarks, will ensure the promotion and broadcasting of the new adult channels to be known as Private Gold and Private Blue to a multi-million worldwide audience. The Private Gold channel will contain explicit hard core material while the Private Blue channel will broadcast lighter soft core material. Private Media Group will receive 65% of the gross profit generated from the broadcast of, and advertising on the channels. Included within the Agreement is an option for Private to acquire 65% of the equity at face value in IFPD, thus becoming the majority shareholder of the channels.
Currently over 73,000,000 homes throughout Europe alone subscribe to cable and satellite television. With recent technological advances allowing for digitalization of television program delivery to TV sets a new world of opportunities has opened. The full and near video on demand, ADSL TV, as well as cable and satellite Pay-per-View (PPV) services allow viewers to have access to past program libraries from the comfort of their own sofa. Adult entertainment programming is perfectly tailored for these new media. Along with major Hollywood blockbusters and sports events and it is adult genre which gets to drive the PPV services. IFPD will provide the two Private channels on a PPV basis where technology exists and simultaneously offer the two channels as premium services via existing and new DTH platforms and cable systems. Early projections made by IFPD indicate that the potential gross revenue generated by the joint venture could be in the region of $21 million for year one, $43 million for year two and $65 million for year three.
The television channels will cross-promote Private e-commerce web sites such as: www. private.com and www. privateinternetshop.com as well as TV home shopping and the full range of Private products including Private Circle fashion wear, videos, DVDs, publications and Private Dynamite energy drinks.
Berth Milton, CEO of Private Media Group commented: ``From Private Media Group Inc.'s perspective, this is an invaluable opportunity to heighten the Company's profile worldwide. Private Media Group owns and controls the worldwide rights to a back catalogue that Forbes magazine called ''the MGM archive`` of the adult entertainment industry. With this substantial back catalogue, we can enter into this joint venture agreement with International Film Productions and Distributions with great confidence. Broadcasting Private television on a global level will also greatly enhance the Company's marketing and sales potential.''
Stephanie Meyer, Head of Sales and Marketing for IFPD commented, ``We are delighted by our Agreement with Private Media Group. The combination of the outstanding catalogue and our vast experience in broadcast media will create an unprecedented accessibility to top quality adult programming. Together we will revolutionize and create a brand new quality in home adult entertainment.''
Private Media Group Inc. commenced operations in 1965. Its primary business activities today include the creation refinement and delivery of proprietary Internet sites and the licensing of its library content and brand name for Internet sites and broadcasting transmission; the acquisition, refinement and delivery of adult feature products, including un-rated and adult feature DVDs, magazines, videos, and CD-ROMs; the distribution and licensing of Private's total proprietary range on the Internet, including DVDs, magazines, videos, interactive services and Private Circle fashion line; the licensing of its internationally reputable brand name for product lines, including adult novelty ranges such as Private Collection; the production and control of distribution rights to its Private Dynamite energy drink; and TV Home Shopping for Private's proprietary and licensed products.
For more information, visit the Company's corporate web site at www.prvt.com.
This release contains, in addition to historical information, forward-looking statements within the meaning of Section 27 A of the Securities Act 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgements of those issues. However because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.
Contacts: Johan Gillborg of Private Media Group Inc., Barcelona, Spain, +34-93-590-7070, johan@milcap.es; or Adam Reynolds of Hansard Communications.Com, London, England, +44-171-242-8005, adam@basham-coyle.com; or Fran Daniels of Financial Sciences of America, Los Angeles, California, 310-278-4413, finsci@earthlink.net.
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