Playboy Doing RealNetworks Subscription Video Deal

Playboy Enterprises is about to launch a subscription video service with RealNetworks, following "months" of speculation that Real might consider adult-oriented programming for its popular Internet network.

A CBS Marketwatch report said May 22 that debate over whether RealNetworks should do it was underlined by a salient point: Real executives "were aware" that someone else would do a subscription video deal with Playboy Enterprises if Real didn't.

Said to be called Playboy TV Club, the service will use OnePass, the RealNetworks suite of technology and product fulfillment services, RealNetworks said in their own announcement. Almost two-dozen other content providers are lined up to use the service, CBS continued, including The Sporting News, the longtime weekly sports journal; Motor Trend, one of the leading automotive journals; and the Professional Bowlers Association.

SportingNewsRadio is said to be coming in with a $4.95-a-month subscription gate. "When you take something premium that had been free, you're always going to lose a significant percentage of your user base," said The Sporting News Internet radio director Michael Calderon to reporters. "But it's done a nice job of creating revenue for us."

"With more than one million subscribers to our content services, we are often asked by content owners how they can tap into our broad reach," said Real senior vice president Merrill Brown in a statement. "As an open platform for content owners, and a market for consumers to find content, RealOne OpenPass brings together the important components that content providers need to leverage our success."

SportingNewsRadio will include interviews, analysis, and show archives featuring such talent as former Dallas Cowboys quarterback Troy Aikman, Los Angeles Lakers coach Phil Jackson, and others. MotorTrendTV will offer programming on its Car of the Year, Web interviews, and auto show reports on-demand. And the PBA is looking to Webcast tour elimination match play, interviews, behind-the-scenes segments during major PBA tournaments, and on-demand tournament playoff video.

News of the Playboy Enterprises deal with Real came just two days after Playboy announced it struck a global content deal with the 3 service, giving markets exclusive, multi-year rights to provide Playboy print, online, and broadcast libraries to wireless consumers in markets covered by British operator Hutchison's 3G Companies, which launched last week.

This deal will bring over 13 million photographs and over 2,000 hours of video programming to Hutchison 3G customers, though the actual content is likely to depend on local regulations and conditions as well as consumer preferences, Playboy and Hutchison said.

"The growth of next-generation wireless services will be driven by the availability of a wide variety of premium content and by consumer demand," said Hutchison managing director for European telecommunications Christian Salbaing in a statement. "3 has been partnering with market-leading content providers worldwide and the Playboy brand is recognized globally. We are very pleased to be partnering with Playboy in this segment of the market."

"Playboy has always been committed to making its content available through the use of emerging technologies and new platforms," said Playboy chief executive officer Christie Hefner in her own statement. "We believe that 3G is the first mobile platform that truly provides a rich multimedia experience for the user. 3's technology and extensive global network make them the ideal global partner for Playboy and we are very pleased to have the chance to work with them."