Wednesday, October 31, 2007

I Guess Porn Isn't That Profitable

Lodgenet has been the target of quite a bit of controversy lately because certain conservative groups have been complaining about some of Lodgenet's content being served to hotels across the country. The South Dakota Family Policy Council has gone so far as to call for a Justice Department investigation into what they call the "Nations Largest Provider of Hotel Hardcore Porn".

Putting aside the difference between what the South Dakota Family Policy Council considers obscene versus much of the rest of the country, the main purpose many believed behind Lodgenet's providing this type of entertainment was its profitability. The old adage that sex sells could be Lodgenet's motto but if their recent revenue report is any indication, it doesn't sell well enough.
LodgeNet reported a loss of $11.4 million, or 50 cents per share, for its third quarter of 2007. That's compared to a net gain of $2.1 million, or 12 cents, during the same period last year.
Much of that loss can be attributed to their purchase of competitor On Command but even without those numbers factored in they still would have lost $3.5 million. No matter which figures you look at, leaders of groups like the South Dakota Family Policy Council are probably smiling ear to ear this morning because sex may still sell, but apparently not like it used to as far as Lodgnet is concerned.

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