New Hardcore Adult Channel Setting Up to Compete with Spice Hot

If nature abhors a vacuum, the announced purchase of Spice Networks by Playboy Enterprises has left a void in the cable TV business that may be filled by The Erotic Network (TeN), a new cable channel.\n When we spoke with Mark Kreloff, Chairman and CEO of The Erotic Network parent company New Frontier Media, TeN was available on one cable system in Pennsylvania, and contracts were in negotiation with 16 other cable systems. Kreloff said that they were also negotiating with two of the three leading DBS providers.\n Programming for The Erotic Network includes 16 world premieres per month, shown before the video release, from companies such as Metro, Sin City, and Elegant Angel, plus 50 titles in the "programming wheel," showing a total of 60 to 70 titles per month. The programming is set up in 90-minute blocks, much like Pay-Per-View blocks. The schedule is a modified 12-hour repeat, where the same elements will show twice in 24 hours, but the 90-minute blocks will be re-arranged in the second 12-hour day half.\n "We're taking the Playboy and Spice format to the next level," said Kreloff. "Our intention to launch a hotter network was solidified with the success Spice Hot achieved in its rollout, particularly with DirecTV, and we look forward to being side-by-side with Spice Hot with DBS people like DirecTV." Material is edited to a "reveal standard," with erection and penetration visible, but no anal, no genital close-ups, and no ejaculation shown. \n "Historically," said Kreloff, "in markets where Spice and Playboy have competed head-to-head, Spice has generated a buy-rate that is nearly twice that of Playboy. In markets where Spice Hot exists along with Spice and Playboy, not only has Spice Hot literally demolished Playboy in terms of the buy-rate, it's also demolished Spice.\n "The analogy I try to use is that we're going to attempt to be the snowboarder to [Playboy's] skier. We're gong to be a little hipper, a little younger, a little faster perhaps."\n "Initially, we'll be programming all movies, 24 hours a day," Kreloff continued. "We have a deal with Ed Powers, and we're going to have a Dirty Debutantes block. That block will be available at a specific time on a specific day each week. We will try to expand that by branding other blocks of programming as well. We're talking with three or four other well-known people on the talent side. We do have plans for original production work, and some of this would involve the name-brand people we're talking with."\n The signal is sent digitally from the National Digital Television Center in Englewood, Colorado. "Most, if not all, of our video will be delivered via digital technology, which gives us a tremendous amount of flexibility in terms of how we can create a broadcast day. We're going to attempt to be creative in the way that we organize the programming, specifically in the branding of the programming."\n There is no plan to take TeN to the 3-meter satellite dish market, because "We're already there in a big way, with three other networks." New Frontier acquired XTC Com and its three satellite channels, Exxxtasy, True Blue, and Exotica in February. (See July issue for details.)\n "[The 3-meter dish market] historically has been flat in terms of growth, and it doesn't really represent a tremendous growth opportunity for the company. It does, however, represent a cash cow: These networks have very high brand-name awareness among the C-Band community, which consists of about 2 million households as we presently sit."\n New Frontier went public in September 1995 (it trades on NASDAQ under the symbol NOOF), and was previously involved in DVD distribution and software publishing. These businesses have been spun off and New Frontier is now solely focused on satellite broadcasting of pay-per-view and subscription programming.