American Media, Inc. (AMI) today announced that it has reached an agreement for the outsourcing of all Playboy magazine functions excluding the editorial product. AMI will assume responsibility for the production, circulation, advertising sales, marketing and other support services of both Playboy magazine and the company's other domestic publications.
Under terms of the contract, AMI will be paid potential fees in the range of $5 million for advertising, circulation, production and related services. This would result in profitability of approximately $2 million.
Both companies will begin working together immediately with a goal of completing the transition by March 2010.
About American Media, Inc.
American Media, Inc. is the leading publisher of celebrity journalism and health and fitness magazines in the U.S. These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In addition to print properties, AMI manages 14 different web sites. The company also owns Distribution Services, Inc., the country's #1 in-store magazine merchandising company.
Source: American Media, Inc.
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