News

Erotic Net to Add Local Advertising

2/13/2000 7:00 PM Eastern

In an effort to generate incremental revenue from
pay-per-view, New Frontier Media will allow operators to offer local advertising on its
adult-PPV networks.

Operators will receive two minutes of local ad sales time
during each 90-minute PPV block for New Frontier's The Erotic Network and Pleasure adult
services, New Frontier senior vice president of sales Ken Boenish said.

The networks will emanate a cue tone that will alert
operators to run the spots. Operators will retain 100 percent of ad sales revenues.

"Usually, the movies run 70 to 80 minutes long, with
about 10 to 15 minutes of interstitial programming," Boenish said. "That allows
for us to provide two minutes [of ad time] without cutting into our main
programming."

The PPV industry, given its transactional status, has shied
away from offering ad-sales time during its events and movies despite the technological
availability, although sponsors have been secured for many events.

But Boenish said several operators wanted a vehicle to sell
ad time to adult-oriented companies such as gentlemen's clubs and adult-video shops. They
requested the ability to generate local ad sales from the networks.

The company has already received commitments from two
systems, including one Florida-based operator that derives more than one-half of its
ad-sales revenues from adult strip clubs, he added.

"Often, such companies have a hard time finding [that]
target audience through traditional networks," Boenish said.

"Cable operators airing adult programming currently
derive up to 60 percent, on average, of their PPV revenues from adult entertainment,"
New Frontier vice president of affiliate sales Bill Mossa said. "So, we're offering
our affiliates an opportunity to drive ancillary revenues."

Operators will also look to use the ad-sales spots to
highlight their adult-PPV offerings on digital. Boenish said the spots, which are targeted
for its analog services, provide a perfect opportunity for operators to tout their
expanded digital-PPV services in general, as well as their adult-PPV lineups.

"Most operators are paring down the number of networks
they keep on analog and moving the rest to digital," he said. "Through the local
avails, operators can sell that new platform to their customers."

In other New Frontier news, the company recently announced
the move of its three ultra-explicit adult networks -- Extasy, True Blue and GonzoX --
from previous headquarters in Canada to Boulder, Colo.

The three services have limited distribution in the United
States, but they are part of the company's adult digital tier, which debuted late last
year.

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