Under terms of the agreement, New Frontier will launch a Penthouse-branded adult-television channel, Penthouse TV, along with a Penthouse video-on-demand service.
Penthouse said the deal will bring in at least $10 million in TV revenue, with more possible depending on the success of the services.
New Frontier and Penthouse expect to have the VOD service available within six months and the linear channel up and running within 24 months.
The companies are planning to make Penthouse TV available in 50 million U.S. households within three years. The channel will be distributed either as an additional stand-alone channel or as a replacement for an existing channel owned by New Frontier.
The adult-TV service will retain the most popular features of the Penthouse brand, including Penthouse Forum, Penthouse Pets and interviews with popular celebrities.
“Penthouse TV will offer adult consumers a fresh alternative in branded adult television,” said Michael Weiner, CEO of New Frontier, announcing the deal. “Adding the Penthouse brand to New Frontier’s programming and distribution expertise will create one of the most formidable services ever offered to U.S. multichannel distributors.”
New Frontier said research showing a strong awareness of the Penthouse brand among adult consumers helped to spur on the deal.
“On the attributes that matter most to adult consumers, Penthouse is the clear leader,” said Ken Boenish, president of New Frontier and The Erotic Network. “Penthouse’sawareness numbers make it truly a household name.”