This excerpt taken from the PRVT 10-K filed Apr 15, 2009.
SIZE="2">The items in the library comprise our content used for distribution on various formats. Currently these are principally DVD, IPTV, cable & satellite television and broadband (for films) and magazines and Internet broadband (for
The film library is sold or licensed on various formats such as DVD, television, and
The photo library comprises purchased photographic material used for print and internet publications. Our
the lower of amortized cost or net realizable value. The cost is amortized on a straight-line basis over 3-5 years representing the estimated useful life of the asset, except for photos which are amortized on a sliding-scale basis over three years.
Estimated future revenues are periodically reviewed and, revisions may be made to amortization rates or write-downs made to the assets net realizable value as a result of significant changes in future revenue estimates. Net realizable value is
the estimated selling price in the ordinary course of business, less estimated costs to complete and exploit in a manner consistent with realization of that income.
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PRIVATE MEDIA GROUP, INC.ALIGN="center">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS