SPAIN — – Private Media Group Inc. has announced that “new data released shows that in the BENELUX region Private content delivered through the region’s leading VOD supplier is receiving buy rates of three to one compared with competing adult content providers,” according to a press release issued Thursday by the company.Private (on Nasdaq: PRVT) also announced that following recently completed deals with major distributors of adult content, “approximately one third of all adult content for VOD in Europe is sourced from Private.”
“In response to market interest and the ongoing rollout of video-on-demand services, we have aggressively and successfully secured deals with all major providers in the most important territories in Europe,” said Berth Milton, who serves as President, CEO, and Chairman of the Board for Private. “We expect revenues from video-on-demand services to have a significant boost to our bottom line.”
According to Private’s press release, research published by Informa Telecoms and Media projects that by the year 2011 “435 million homes around the world will be using Video-on-Demand or Near Video-on- Demand services generating revenues of above $11.4 billion for VOD providers.”
The release also asserts that although adult content comprises only 20% of the total content offered through the average VOD services, adult content sales account for over 50% of the revenue generated by such services.
“For emerging and established video-on-demand distributors, the strength of the Private brand is securing substantial revenue streams while satisfying the specific needs of the consumer for high quality adult content,” Milton commented in the release, adding that as a “NASDAQ-listed company we provide the responsibility and security that major platform operators look for and need in their operations.”
The “Benelux region” cited in the Private press release refers to the economic union consisting of Belgium, the Netherlands and Luxemborg. Substantial cooperation between the three countries began in 1944 and the relationship between the three nations was strengthened in 1958 by way of a treaty officially establishing the Benelux Economic Union.
