Sales decreased to E5.2 million for the three-month period ended June 30, 2008. The company reported a net loss of E0.8 million for the quarter.
Private Media Group CFO Johan Gillborg said that during the first quarter of 2008, restructuring plans were developed in response to the shift of the Company’s business model from traditional physical delivery of its content to digital new media distribution.
“With respect to revising content requirements and related costs we have analysed sales statistics for newly produced content versus compilations, reviewed demand for newly produced content from digital new media distribution versus traditional physical delivery and analysed sales statistics with respect to our content mix," he said
"We do not believe that the revised content strategy will have any impact on sales since our digital new media distribution is mainly dependent on our expansive library and not on new releases, unlike the traditional business. We have also renegotiated agreements with third parties relating to content acquisition and post-