Playboy Enterprises (NYSE: PLA) reported another bad quarter yesterday, as Steven Mallas reported. It's no secret that Playboy is struggling because of changing demographics and the economy, but the post-earnings release conference call included another bombshell: The monthly magazine that was founded in 1953 may not be monthly for much longer.

The Wall Street Journal reports (subscription required) that "Playboy magazine, which has a guaranteed circulation of 2.6 million, this summer will combine its July and August issues to save money on printing and distribution, a move it says could be a precursor to a permanent curtailing of frequency."

I'm guessing that sin isn't in, as far as this recession is concerned. Playboy Enterprises (NYSE: PLA) posted a larger fourth-quarter loss thanks to $157.2 million in restructuring costs and other one-time costs. In addition, weaker-than-expected revenue cut into the quarterly performance. PLA's net loss checked in at a sizable $4.37 per share, far larger than the loss of three cents per share a year ago. This most-recent loss rounds out a year when PLA posted a loss in each quarter. PLA's revenue fell to $69.8 million from $85.9 million a year ago, and it fell well short of the expected revenue of $73.7 million.

Playboy Enterprises Inc. (NYSE: PLA), much like its founder Hugh Hefner, continues to show signs of spunk. The adult-entertainment company today reported better-than-expected third quarter profit, helped by strong licensing sales and international TV revenue.

Shares of the Chicago-based company are up about 10% over the past six months. Playboy is gaining new pop culture relevance thanks to "The Girls Next Door" and that will be further helped whenever the big budget movie about Hefner gets made.

Playboy, though, is a small fish in a very big media pond. Net income for the quarter was $2.6 billion, or 8 cents per share, compared with $1.1 million, or 3 cents, a year earlier, beating Wall Street consensus forecasts of 6 cents. The revenue figure of $82.8 million -- only a 1% gain from the year-earlier period -- missed analysts' estimates of $86 million.

World Wrestling Entertainment Inc. (NYSE: WWE) shares have plunged more than 5% over the past month as investors fled Vince McMahon's muscle-bound empire in the wake of the Chris Benoit tragedy. The stock is headed for an even bigger fall in the coming months as the company grapples with congressional scrutiny, potential lawsuits and long-overdue increased government regulation.

Nonetheless, WWE is something that truly adventurous investors should consider. The shares are trading at a multiple of 25, which is dirt cheap compared with its peers such as Playboy Enterprises Inc. (NYSE:PLA)'s 130 and Lions Gate Entertainment Corp. (NYSE: LGF)'s 53. Though profit and sales are expected to fall this year, analysts expect WWE to rebound next year.

When WWE holds its earnings conference call on August 2, there no doubt will be plenty of questions about Benoit, steroids, declining ratings and potential share buybacks. WWE management should also be scolded for its stupid decision to air a tribute to Benoit.

But some long term perspective also is in order. Big media companies including Viacom Inc. (NYSE: VIA) and News Corp (NYSE: NWS) would love to buy WWE to gain access to its huge library of content and rabid fan base.

Like it or not wrestling has been part of the pop culture landscape for a long time. Eventually, some other personality will come along that will make people forget the Benoit murders.

At that point, investors who hung in there will have their patience rewarded.

Amanda Beard is the complete package: beauty, composure, great public image, and athletic prowess. A three-time American Olympian with many swimming medals to her credit, she has parlayed her accomplishments into a career as a model (Sports Illustrated Swimsuit edition and others) and spokesperson (Red Bull). Now, she has agreed to give America a peak beneath the red, white and blue in a photo spread for Playboy (NYSE: PLA).

Her appearance is another coup for a company that has made great strides in airbrushing the worry lines from a once-tired brand. At one time, the flesh magazine trade could find success offering nubile and attractive but anonymous females. The market, however, has been changed forever by the Internet, and for magazines such as Hef's to succeed, they need exclusive content.

The money shots are those of women who have built their own fame beforehand, and contribute their credibility to the magazine's. (Are you listening, Condoleezza Rice?) Look at the list of those who have appeared over the past few years: Drew Barrymore, Katarina Witt, Mariah Carey, Jessica Alba, Lisa Guerrero.

If ever there was a company whose success depends on its brand, Playboy is that company. Playboy's brand, at its best, represents the playful side of sex, clearly differentiated from the tsunami of misogynist porn swamping the Internet. Featuring models with positive public images isn't just good business for Playboy, it's essential.



More coverage from Fanhouse: "It's a good thing."