On a day
filled with troubling news for print media comes word that
Christie Hefner is stepping down as chief executive of Playboy Enterprises Inc. after 20 years at the helm. Long-time company director Jerome Kern will take over as interim CEO on Jan. 31, and Hefner will remain on the board until a permanent replacement is found.
Hefner was appointed to the top post by her father and Playboy founder Hugh Hefner in 1988 and has guided the company through some dramatic shifts in the adult entertainment and media industries. For decades the undisputed champ of adult content, Playboy began seeing market share eroded first by raunchier magazines and in recent years by the proliferation of online adult Web sites.
The company's strategic response under Hefner has been mixed. The print platform has been expanded to include more than a dozen digital properties, wireless content delivery, DVDs, satellite radio, events and real estate investments. And Hefner launched a licensing effort that has become a significant contributor to Playboy's bottom line. The initiatives haven't been enough, though, to buoy the struggling company, which posted losses of $5.2 million in the third quarter. In addition, the long-anticipated relaunch of Playboy.com, which Hefner has touted as the "glue" that will connect all the company's holdings, has been pushed back to early 2009.
To turn the tide, Hefner in October announced a restructuring that would include winding down the DVD business and cutting jobs. Playboy has eliminated about 140 jobs this year. Whether the new CEO will continue these efforts or pursue a new strategy remains to be seen. Either way, it will be interesting to see if this iconic entertainment titan can remain relevant in a transforming media environment.
- Suzanne Stevens
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