ALMERE, The Netherlands—European retail chain Beate Uhse is counting on 3D porn to lead the way amid flagging DVD sales, a company representative told Bloomberg.com.
In an interview with the news service, Beate Uhse’s Serge van der Hooft admitted that the chain had been “barely profitable” since 2006 and expects a financial loss this year.
“We will definitely invest in this [3D] business,” van der Hooft told Bloomberg. “The sale of erotic movies on DVD fell within a few years from top to flop because of the surprisingly fast emergence of free porn on the internet.”
The article cites Funky Monkey Movies’ Octopussy as one example of 3D product.
Shares of Beate Uhse, which has been traded on the Frankfurt Stock Exchange since 1999, have lost 97 percent of their value since 2003, bringing the company’s worth down to $42 million.
The company reported a loss of revenue of 12 percent for the first half of the year as compared to the same period last year as sales are expected to dip from $293 million to $259 million.
Sales of adult DVDs at the chain’s stores have declined to 17 percent of the company’s revenue. In 2006, DVD sales represented as much as one-third of the company’s profits.
Beate Uhse, which operates 258 stores in 11 European countries, also aims to sell more “lifestyle products” like beauty products to offset the falling sales of sex toys and lingerie.
Market analysts, however, are skeptical at Beate Uhse’s turnaround prospects.
“A turnaround is a Herculean task and I doubt that Beate Uhse will be successful just with nice new DVDs or overknees that one can buy elsewhere,” GSC Research analyst Klaus Kraenzle told Bloomberg. “These days the internet brings all kind of content for free, and sexy clothes are available at any other retailer.”
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