New Frontier Media First to Offer Local Advertising Capability Over PPV Networks

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Source: PRNewswire

By: Company Press Release

(BOULDER, CO) — New Frontier Media, Inc. (Nasdaq: NOOF – news), a leader in the electronic distribution of adult entertainment, today announced that it will be the first pay-per-view network to offer local businesses the ability to air geographically targeted commercial advertisements over its networks. New Frontier Media will set aside a fixed number of minutes per 90-minute segment prior to the airing of a pay-per-view program. The Company reported that it has already received commitments from two affiliates, one in the Southeast and one in the Northeast, interested in running local advertising.

“Cable operators airing adult programming currently derive up to 60%, on average, of their pay-per-view revenues from adult entertainment. So, in addition to offering the widest variety of high-quality adult entertainment, we’re offering our affiliates an opportunity to drive ancillary revenues,” stated Bill Mossa, Vice President of Affiliate Sales.

The Company reported that although the technology has been available for local ad insertion and is widely used by prime-time networks, pay-per-view networks have been reluctant to air local advertising over a pay-per-view platform. The Company estimates that many local businesses do not currently have an advertising venue that that allows them to reach such a highly concentrated demographic and that many of them would be very interested in purchasing ad space. “This is a unique combination in that it not only provides an additional revenue source to cable operators, but also provides local advertisers the ability to reach an audience that is less familiar with products and services that they offer,” added Mossa.

ABOUT NEW FRONTIER MEDIA, INC.

New Frontier Media, Inc. is a leader in the electronic distribution of adult entertainment with an unparalleled library of content. Through its television subsidiary, the Company distributes adult entertainment via pay-per-view and subscription cable/satellite video networks. Cable/DBS networks include Pleasure(TM), the most-edited standard available in the category; TeN, The Erotic Network(TM), which incorporates a partial-editing standard and Extasy(TM), the least-edited standard.

Through its Internet subsidiaries, New Frontier Media designs, creates and implements Company-owned subscription/membership-based web sites for the adult Internet consumer markets. It also operates Internet traffic sales and acquisition programs for the adult webmaster community. In addition, the Company serves as a single source for a comprehensive range of high-performance Internet products and services, including transaction processing, dedicated access, web hosting, co-location, e-commerce application development, streaming media, and bandwidth management. New Frontier Media’s network infrastructure enables the delivery of live and on-demand video events to millions of Internet users.

For more information contact Keely Hawk, VP Corporate Communications at (303) 444-0900, extension 145.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of Securities & Exchange Act. The Company intends forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements regarding the Company’s expected financial position and operating results, its business strategy its financing plans and the outcome of any contingencies are forward-looking statements. The forward-looking statements are subject to risks, and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements.