New Frontier to create 24/7 network
Penthouse is getting into the adult-TV business, signing a 10-year, $10 million deal with New Frontier to create a 24/7 network and a video-on-demand service.
New Frontier, which runs seven adult nets under the TEN trademark (which stands for The Erotic Networks), has distributed triple-X programming on cable and satellite TV since September 1998. New Frontier prexy Ken Boenish said Penthouse will begin with the VOD pay-per-view service because it’s easier to get cable ops to make room for it than for a 24/7 network. New Frontier’s timeline for the VOD service is six months; getting the full network cleared could take two years or more. Despite the hardcore sex, cable ops and satcasters are willing to take some or all of New Frontier’s networks because the revenue split is so favorable. Instead of 50-50 for a typical mainstream PPV movie, the cable op can get 80% or more of each subscriber dollar. New Frontier will come out OK thanks to volume business and the relatively small cost of the programming. For Penthouse, according to Marc Bell, CEO of the Penthouse Media Group, the $10 million from New Frontier could be just a down payment. If the Penthouse VOD service and 24/7 network draw lots of PPV buys, the company will share in the revenues with New Frontier. Boenish said that the suggested retail price for one PPV erotic movie is $10.99.
