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Private Media Group (PRVT)
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PRVT » Topics » INTERNET SERVICES

This excerpt taken from the PRVT 10-K filed Mar 17, 2008.

INTERNET SERVICES

FACE="Times New Roman" SIZE="2">Overview

Private Media Group’s Internet team has combined its extensive media library with the
most advanced technology to take advantage of the growth of Internet access and new distribution methods. Private has developed several key product offerings which include a subscription based service, broadband video on demand sites, live sex chat
service, adult personals, DVD rental service, and e-commerce shop. During 2007, we had 20 million unique visits to our websites, an increase of 85% compared to 2006.

FACE="Times New Roman" SIZE="2">Key Products

Private.com (www.private.com) is the flagship site of Private Media Group’s
Internet offerings. The site offers access to high-quality adult content that includes full-length Private movies, photosets, sex-stories, a full library of Private magazines in image and downloadable PDF format, and third-party content. In
addition, subscribers receive access to live webcam, live sex shows performed by couples, and adult personals. Premium content is also accessible through Private.com in a variety of different formats. The ability to purchase full-length DVD quality
movies on a rental basis is available through Divx technology at a discounted rate for subscribers. One on one live chat is also accessible to members at a discounted rate. The site offers various payment methods to suit the ever-changing demands of
the end-users that include credit card subscriptions, pay-per-minute dialers, debit cards, online checks, and SMS payments. All payments are made through a secured system and verification process that are in-line with the International and local
e-commerce regulations. The Private.com website features the most advance technology to enable Private to protect its digital assets from theft and file sharing through usage of Microsoft digital rights encryption and protection. Private also goes
the extra step to protect its library by digitally watermarking all images. Private.com acquires customers primarily through advertising in its DVDs, magazines and broadcast programming with minimal incremental cost. It also acquires new customers
through its affiliate program Private Cash.

Private Shop (www.private.com/shop) offers a complete catalogue of Private products
including Private DVDs and magazines, and adult toys available for purchase or downloading online. The site provides free pictures and free video clips to those who register with the shop. The site is built upon an extensive technical platform that
utilizes real-time, secure transaction processing. In addition, the Shop is available in multi-lingual format and currency options based on a user’s locale. In 2007, the average order value was US$115.

STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%"> 





9Juniper Research estimates in its white paper Adult Content in the Palm of Your Hand (November 2007) that the global mobile adult content market will increase from US$1.7
billion in 2007 to just over US$4.6 billion by 2012.

 


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PrivateSpeed (www.privatespeed.com) is the broadband video on demand channel for Private.
PrivateSpeed features an extensive collection of more than 500 full length Private movies in both streaming and downloadable formats for rental online. Users of PrivateSpeed are offered a free membership to view trailers of movies and other premium
content through a simple sign up process that collects their email address. In 2003, Private licensed the technology of Go Internet for the backend platform for PrivateSpeed. The complete site was redone to include a new design that features a
simplified user interface, new streaming, advance account management, and searchable information. Through the partnership with Go Internet, Private has been able to significantly lower costs on it streaming and hosting solution.

STYLE="margin-top:18px;margin-bottom:0px">MAGAZINE PUBLICATIONS

Our publishing operations
include the publication of the adult magazines identified in the table below, special editions consisting of previously published material and occasional newsstand specials, calendars and paperback books. All of these magazines, together with local
editions, are printed under various trade names and are distributed in over 40 countries. Our magazines feature pictures of men and women engaged in erotic and sexually explicit situations. We distribute approximately 50,000 copies of our print
publications per month at an average retail price of approximately (Euro) 11.50. Our current publications are Private, Pirate, Private Sex and Triple X.

 


































































































MAGAZINE LIBRARY  As of December 31,
   2007  2006

Title

  Nº of Issues  Nº of Issues

Private

  204  198

Pirate

  106  100

Triple-X

  80  74

Private Sex

  70  64

Private Man

  4  4

Mansize

  4  4

Special Editions

  30  30

Best of Private (Book)

  15  15

Special Editions (Book)

  1  1
      

Total

  514  490
      

 




































































   Quantities of Magazines
Produced
(Printed, not sold)

Title

  2007  2006

Private

  223,200  334,255

Pirate

  147,240  223,615

Triple-X

  120,790  209,250

Private Sex

  131,288  154,806

Special Editions

  —    159,095
      

Total

  622,518  1,081,02
      

Our publications offer a variety of features and have gained a loyal customer base. We believe we
have earned a reputation for excellence by providing a high standard of quality to the adult entertainment industry, while we maintain circulation leadership as the leading hardcore magazine publisher. All of our publications have long been known
for their graphic excellence and features, and publish the work of top artists and photographers in the field. They are also renowned for their pictorials of beautiful people. Our magazines are the best selling in the industry while being among the
highest priced.

 


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All of our publications are printed by independent third parties. We have a longstanding relationship
with several printers in Spain We believe that generally there is an adequate supply of printing services available to us at competitive prices, should the need for an alternative printer arise. All of our production and printing activities are
coordinated through our operating facility maintained by our wholly owned subsidiary, Milcap Media Group.

"INTERNET SERVICES" elsewhere:

Ku6 Media Co., Ltd (HRAY)
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