Playboy Outsources Business Operations, Keeps Editorial Functions

by Yuliya Talmazan | November 24, 2009 at 01:16 pm

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The magazine industry is in distress and Playboy is no exception. America's largest and most famous men's magazine is outsourcing business operations to streamline its finances. Now, American Media Inc. (AMI) will handle Playboy's business affairs. The editorial function will remain the only operation still under Playboy's control. It is reported 25 Playboy jobs will be lost in the outsourcing effort. Playboy plans to become profitable again by year 2011. Playboy sells up to 2.6 million copies a month in the U.S. It is in circulation in over thirty countries around the world.

American Media will handle production, circulation, advertising sales, marketing and other services of Playboy magazine and other publications.

"Our goal is to focus our resources on what we do best, which is to create compelling content," Scott Flanders, chief executive of Chicago-based Playboy Enterprises, said in a statement.

Playboy said it's expected to lose about $8 million this year. But the deal with American Media should reduce the loss to $5 million in 2010 before turning a profit a year later.