Who says the adult industry is doing well?
According to Luke Ford (all links NSFW):
Playboy TV About Broke
Larry Flynt Publications [LFP, based in Beverly Hills] ready to gobble it up.
Playboy’s studios [at 3030 Andrita St. in Los Angeles] are empty. There have been mass layoffs. Only a few people are left at Playboy TV. They’re trying to buy content on the cheap. “Playboy TV is like a ghost town,” says one insider.
Hustler magazine is doing poorly and its DVD division is confused.
LFP has been looking to start (or take over) its own TV channel for a long time.