May 12, 2000 06:44am
PRVT Announces Substantial DVD Sales Increases
Source: Private Media Group Inc.
by: Company Press Release
(BARCELONA, Spain) -- Private Media Group Inc. (Nasdaq: PRVT - news), worldwide leader in premium-quality adult entertainment products, services and Internet content, is pleased to announce that its DVD sales have increased substantially from the first quarter 1999 to the first quarter 2000. Additionally, the Company's DVD sales have increased by 68% from the fourth quarter 1999 to the first quarter 2000.
For the first quarter of 1999, when the DVD (Digital Versatile Disc) was a relatively new technological format for viewing movies, sales of the Company's DVD titles amounted to $6,138, which contrasts dramatically with that for the same period in year 2000 when sales amounted to $950,540. Indeed, revenue from DVD sales in the first quarter 2000 alone almost equals the total DVD sales revenue of $1 million for the whole fiscal year 1999.
With the DVD rapidly becoming the movie format of choice in the global consumer marketplace, the Company has penetrated this market at an early stage and currently has 40 DVD titles on the market. In addition to releasing new titles benefiting from enhanced camera technology for the filming of movies for the DVD format, the Company possesses a major competitive advantage in being able to select best-selling movies from its 35 year back catalogue for release into the marketplace as individual titles or to choose specific scenes for thematic compilation titles.
Another competitive advantage is that Private Media group is the only company in its industry capable of delivering each DVD title in multiple-language and multiple-subtitle formats. None of the Company's competitors can penetrate the multi-lingual global market as we do. The Company's main DVD competitors have a double problem in that they only produce in English or else they have to sell their rights for territories outside the US and, therefore, cannot deliver a previously released VHS movie in DVD format. Private Media Group produces each DVD in a multi-zone format: one copy for the whole world.
The benefit of owning such a vast archive of material, together with an early presence in the DVD market, has meant that sales continue to increase at a rapid rate. DVD sales revenues of $564,371 for the fourth quarter 1999 increased by 68% to the first quarter 2000, when revenues amounted to $950,540.
``These hugely encouraging increases are indicators that our management team is truly in touch with consumer trends and multimedia developments,'' said CEO of Private Media Group, Berth Milton. ``Positioning ourselves at an early stage in the DVD market has given us a tremendous advantage in continuing our reputation for premium quality products and strong brand name recognition. Being able to draw on our massive archive of movies, while always moving forward with technological developments in film-making, means Private Media Group will continue to strive to maximize revenues while increasing shareholder value. The Company also had the foresight to produce multi-zone, multi-lingual titles, thereby reducing costs to a fraction of what it takes to produce a VHS video. In the first quarter 1999, we had four DVD titles on release while in the first quarter 2000 we had 32 titles in the marketplace, and this shows our deepening commitment to this exciting format. Currently, we are releasing between three and five titles per month. The key developments in the marketplace are the internet and DVD, and we are delighted that we are at the cutting-edge of both.''
The leading publicly-quoted adult entertainment company in the world, Private Media Group Inc., is the founder of the globally established brand name 'Private' and has positioned itself in the marketplace with a visionary management strategy that combines both New Economy (Internet, multimedia, e-commerce) and Old Economy (videos, magazines) business models. Maintaining a total adult lifestyle philosophy, this is reflected in the Company's broad range of products and services, both proprietary and licensed, and its strategic policies of development, diversification and acquisition.
For more information, visit the Company's corporate Web site at www. prvt.com
Other companies in the adult industry include Playboy Enterprises Inc and New Frontier Media.
This release contains, in addition to historical information, forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgments 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: In Barcelona, Spain: Johan Gillborg of Private Media Group Inc., +34-93-590-7070, johan@milcap.es; or In London, England: Adam Reynolds of Hansard Communications.Com, +44-207-840-7782, adam.hansard@clsholdings.com
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