Home Cinema (4636)

Playboy to stop selling DVDs

Bid to save $12 million a year

17 October 2008 17:40 GMT / By Katie Scott

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Playboy is to shut down its DVD business in a bid to stop spiralling losses.

The move is part of a restructuring plan, which was announced 2 months ago and which is hoped to save the company $12 million a year.

It'll see 80 jobs go and will also cost Playboy $2 million in restructuring charges.

Playboy is instead going to concentrate on getting content online.

Playboy Enterprises has reported two consecutive quarters of losses - most recently a $2.1 million loss in Q2.

But, said Christie Hefner, the company's chairman and chief executive, the company was hoping to return to profitability in 2009.