Playboy Enterprises (NYSE:PLA) is an adult media corporation that earns revenue from a diverse group of holdings; its businesses range from the world-renowned Playboy magazine to a licensing group that has managed to attach the Playboy name to everything from watches to the Palms Casino in Las Vegas. While the company's publishing and television businesses have been hit with declining revenues, corporate restructuring could allow Playboy to realize the earnings potential of the world's number one men's magazine. Furthermore, worldwide economic growth is changing the social values of more conservative societies around the world, creating new markets for Playboy's previously taboo products.

The company is also taking advantage of evolving media technologies like online video and smartphones to distribute its content and further expand its brand recognition, which helps boost its already highly profitable licensing division. While Playboy is technically a media company, its unique content separates it from traditional media and publishing conglomerates. At the same time, it isn't limited to pornographic material and, as such, doesn't exclusively compete in the adult entertainment market. Despite its niche position and highly visible brand name, Playboy is facing the same difficulties that plague both the traditional media and porn industries; as the Internet becomes more popular, the demand for print material (including the Playboy magazine) continues to decline. Additionally, the Internet has spurred the proliferation of free porn sites, which can steal business away from Playboy's subscription-based online offerings. The future of the company will hinge on its ability to adapt to these changing trends and adjust its operations accordingly.

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