This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.
They had to twist my arm to write about Playboy Enterprises Inc. (NYSE: PLA). At least that's the story I am telling my wife and I am sticking to it.
The problem Playboy faces -- as do other purveyors of adult entertainment -- is a simple: why buy a cow when you can get the milk for free. That's a crude and probably sexist metaphor, but an accurate one. Not only is the amount of porn on the internet mind-blowing, but increasingly it's free and can be accessed anonymously. For Playboy and its competitors, the problem is only going to get worse because the popularity of these sites appears to be soaring.
Wall Street already has little faith that the Chicago-based company can redeem itself. Shares in the company built by Hugh Hefner have dropped more than 82% this year. The company has been a mess for years. Net income in the second quarter was a puny $2.1 million, or 6 cents per share. Revenue fell 14% to $73.4 million as higher licensing revenue did not offset the declines in its media business.
Particularly worrisome was the loss in the publishing unit of $1.9 million following declines in circulation and advertising at the domestic edition of Playboy magazine. Advertising pages dropped a whopping 10 percent in the third quarter.
Playboy needs to reinvent itself in a hurry. The magazine did stand for free speech along with showing pictures of naked women. Hugh Hefner deserves credit for paying for the obscenity defense of his good friend Lenny Bruce, a comic who tested the bounds of taste back in the 1950s and 1960s. Without Bruce, there could have been no Howard Stern. Maybe it can take stands on issues besides silicon versus saline implants.
The company recently closed down its DVD business and probably should shutter the magazine as well and convert itself into a purely digital operation. The Playboy Playmate really is an idea from the 1950s when guys were supposed to covet the girl next door. The Playmates are supposed to appear wholesome. Playboy's competitors do not place their models under those types of restrictions.
Investors have argued for years that Playboy would rebound once Hefner died. Well, the original playboy looks healthy as a horse. Maybe it's the young girlfriends. Maybe it's how he gets his "exercise." I don't know but I am curious. For his company to survive, however, it needs to evolve beyond his vision of the brand from the 1950s.
Does Playboy need a makeover? What would you suggest? Be sure to check out the other makeover posts.











Reader Comments (Page 1 of 3)
10-23-2008 @ 6:57AM
Lassie said...
My daughter will graduate this year and I have no great hope she will find a job in her field. Alternative employment - where, stocking shelves at Walmart? Maybe we should buy her implants and she can toss her picture into the Playboy grinder, make a few bucks to buy her time until hope of an actual JOB comes along.
10-23-2008 @ 8:45AM
JOHN said...
I HONESTLY HAVE TO SAY, I'M A 32M, AND EVER SINCE A LITTLE KID, PLAYBOY IS ONE OF THE FIRST WAY BOYS SNEAK A PEAK AT THE NAKED WOMAN, ALONG W/HUSTLER THEN, ETC. NOW, I'D RATHER MY KID SNEAK A PEAK AT PLAYBOY, ANYDAY OVER HUSTLER, BECAUSE PLAYBOY HAS CLASS, WHICH ALOT OF THE OTHERS, AND THE INTERNT LACK. ONE PROBLEM IS HUG IS GETTING OLDER, AND WORRING MORE ABOUT OTHER THINGS, AND HIS GF'S, THENM THE COMPANY, AND WHOMEVER TOOK OVER HIS PLACE, IS NOT DOING AS GOOD OF A JOB AS HE USED TO. MAYBE HES GIVING TO MUCH EDITING CONTROL, TO HIS GIRLFRIENDS, SO U MIGHT SAY THAT HE IS MEOW, WHIPPED!?? PLAYBOY, MAYBE NEEDS TO BE MORE ONLINE, W/ A MONTHLY SERVICE FEE, AND GO THAT ROUTE??I MEAN IT'S JUST A MATTER OF TIME, BEFORE THE HARD COPY OF THE YELLOW PAGES IS ELIMINATED, AND ALL WE WILL HAVE, IS THE YELLOW PAGES.COM. I WOULD THINK THE SHOW BRINGS THEM IN REVENUE, I'M NOT SURE HOW MUCH THAT IS, COMPARED TO MAGAZINE SALES, PROB., A DROP IN THE BUCKET. ANYWAYS, HUGH IS OLDER, AND LETTING HIS MAGAZINE SLIP A BIT, IT NEEDS A CEO, AS INSPIRED AS HE WAS, WHEN HE STARTED THE COMPANY, AND VERY STOCK IS DOWN NOW, SO IT WILL GO BACK UP, HOW MUCH??BEST OF LUCH MR. HUGH!!
10-23-2008 @ 9:04AM
Ray said...
Back when Hef's daughter took over the reigns, the downward slide began. The featured "Girl next door" turned into "The blond bimbo with big hooters from California." 10 or 11 months a year, of the same thing. That's how they lost me. That, and I grew up, and realized they were a bunch of Libs.
10-23-2008 @ 9:29AM
fernando meza said...
hmmmmm....playboy....I think heff has done a good job running the show but it's time for someone new to come in and do the job.Some one with modern views like adding new adds, new faces, more excitement in their shoots and videos.. they should have playboy model of the year but in a beauty peagant type contest. where the viewers get to pick with judges help.. i dont consider playboy magazine porn but it shows the art of a womens body, the real beauty.. To me thats better than porn but their porn videos need help, it should be more explicit and crazier, more wild. they are just to plain... heff should get the noble prize for coming up with playboy..
10-23-2008 @ 9:31AM
Andy McFarland said...
When I was in my 20's, in the 1970's, I went for several years with a subscription to Playboy magazine. I also usually had a subscription to 3 other men's magazines, including Penthouse. Ahem...
At this late date (I'm 55 years old) the women in the Playboy mags look like little girls to me. Also, you have to go into a specialty magazine store to buy a magazine, or actually ask a counter attendant for one, because they keep them behind the counter. So, I haven't purchased a Playboy magazine in probably 25 years. Also, when I was a young man, I appreciated and agreed with Hef's editorials on drugs and sexual freedom, and most of his other viewpoints. While I still agree with him in principle, I'm way too old to smoke a doobie any more. I might forget my AOL password. These days it is rather silly to pay for pornography when so much of it is free.
10-23-2008 @ 9:57AM
steve said...
Playboy needs to stop trying to compete with Maxim and FHM, and return to its roots. It leads, and let other magazines try and follow. It needs to return to being tasteful, elegant, and enviable. It needs to stop robbing the cradle for some of its centerfolds, and stop presenting pictorials of women who we like but would prefer not to see naked. Playboy has nothing to fear from the porn business; Playboy is not porn.
10-23-2008 @ 11:10AM
Tom Koehn said...
"Why buy milk when you can get the cow for free"?? That's like asking Time Magazine why they're still being published if you can just turn on CNN! Its all about presentation!! Sure, you can assess naked women but have you ever noticed that most of them look like they couldn't let go of their stripper poles long enough to sit still for a camera. Playboy continues to capture exquisite images of some of the most breathtakingly beautiful women on EARTH, all done so with interesting um....layouts (pun intended), spetacular art direction, and illustrious photographers. Photos notwithstanding, Playboy also represents the finest in news reporting, civil rights causes, imformation, and their showcasing of the hotest and latest fiction writers, many of which have gone on to literary stardom STILL has no parallel.
Sure, I can pull up pictures of naked women all day, if breasts and genitalia is all I was interested in. Its not. Playboy simply oozes class, always has!
10-23-2008 @ 11:02AM
Danel said...
Playboy is world famous for a reason. It is classy and men still like the "girl next door" look. Yes, you can get porn anywhere, but Playboy isn't porn. Maybe there's a lot of people out there that aren't looking for smut. They want something that's wholesome and classy. Playboy should take pride that they are different and keep going with the wholesome look. If you don't like it, don't read it. It's obviously not your style..you like the more nastier things. Let others have the style they like.
10-23-2008 @ 12:02PM
Jay said...
Playboy magazine was born bacck in the fifties, and unfortunately, that's still where it is. Times have changed. People's attitudes have changed. Sex is no longer a dirty word. The female body is no longer considered to be dirty. Playboy magazine still insists on presenting these somewhat "cleaned up" images of young ladies, airbrushed and covered with makeup, while it's competitors are laying it all out there where every guy can see the goods. Let's face it. If guys didn't want to see the goods, they wouldn't be looking in these types of magazines in the first place.
10-23-2008 @ 11:36AM
Dan said...
Maybe some things need changing, and some don't. I've enjoyed reading Playboy (looking too) for the past 32 years and in some ways, the magazine has changed over the years. But I don't think it would hurt anything if the organization would go back to certain ideologies. The Girl-next-door idea visual was Hefner's brainchild. As far as competing with other magazines goes; how can other people's magazines (Penthouse included) even begin to compare themselves with Playboy. Penthouse is more triple-x rated than Playboy. It shows a lot more of the woman on the outside than it does on the inside. And besides, my experience with Penthouse has lead me to believe that it does not really tell much about the girls in general. Not to mention that it's not very honest with the general public. If the girls don't want their real names known, then they shouldn't be exhibiting themselves like that. That's the difference between Penthouse and Playboy.
10-23-2008 @ 11:44AM
Zach said...
If you have a partner and still need to look at ANY of this crap, you picked the wrong partner.
10-23-2008 @ 1:51PM
Stacy Leigh said...
He should publish my Realdoll photos in a spread!!!!! Hugh is too conservative- the brand needs more diversity. Hugh is too uptight!!! He has benched my photos for a year...he is afraid of dolls!!!!!! The magazine lost it's artistry when Helmut Newton ceased to be a contributing photographer (due to his untimely death). And what ever happened to little Annie Fannie?!!!!
10-23-2008 @ 2:06PM
Roglo said...
I will say, my reduced interest in Playboy came about when it started using too many "spread shots". I liked the old idea of admiring a female in what I consider a more artistic expression. The younger fellows out there may like the "open" view and if that's what they want so be it. It just seems the more porno-like approach to the "art" as well as the articles and fiction damaged the quality of Playboy.
Additionally, as some have pointed out, the women of Playboy all look much the same. There is plenty of porn out there. Perhaps Playboy should step back a bit to its more sophisticated origins.
10-23-2008 @ 3:15PM
Dick said...
Reinvent the "girl next door" image, with hot pix, and stories, of the gal in the next cubicle, the receptionist, the barista, the teacher, the best friend's mom, the teacher, the co-worker....less, but enticing, cas be far more arousing and interesting than show and tell all
10-23-2008 @ 4:41PM
andy said...
throw out the razors and the silicone implants, and playboy can come back. I honestly read the articles (forthe last 35 yrs or so)
10-23-2008 @ 4:57PM
erin said...
I have been reading playboy for about 15 years, and surprise surprise, I am also a woman. I remember when the women all had individual looks, something that set them apart from the others, now they all look the same, so much so it's hard to tell if we received a new issue or not. Bring back the intelligent articles, raise a little hell, be a little less pc. In short, go back to the basics that built them up in the first place.
10-23-2008 @ 7:04PM
Linda said...
When I was young, Playboy was considered to be "cutting edge" entertainment. It was a pleasure to read the articles, and I especially supported Mr. Hefner's liberal views. Now when I see programs such as "The Girls Next Door", I am rather disgusted by the image of an 80-something male having sex with three silicone-enhanced blonds whose IQs are probably lower than their chest sizes. Instead of being "cutting edge", Mr. Hefner is a portrait of a dirty old man. It's pathetic!
10-23-2008 @ 8:32PM
johnny said...
i been looking at playboy for forty years. there perfect woman are what makes them the best magizine,hands down.
10-23-2008 @ 10:07PM
notherROUND said...
Somehow, I never did get the impression that Playboy even came close to featuring "The Girl Next Door". Quite the contrary, Playboy models were actually all about "The Girl You Will NEVER see". There is nothing about their models that I can relate to in REAL Life. Too perfect, nothing real about them
10-23-2008 @ 9:04PM
William said...
30 years ago, I read it, but I soon got tired of huge silicon breasts, airhead models with too much make-up, and articles that re-hashed stale topics and promoted a lifestyle of excess and self-indulgence. I still appreciate a beautiful, toned body (appreciation is different that a desire to possess or use!), but the smile and sparkle in the eyes is far more attractive than simple nudity. I like being around women that I'd enjoy as friends, even if they're never going to be a centerfold. "Beauty is skin deep, but ugly is to the bone!"