Hugh Hefner was the American icon who in 1953 introduced the world to Playboy magazine, and built the company into one of the most recognizable global brands in history. The brand played an important role in the sexual revolution.
After its peak in 1970, Playboy saw a decline in circulation and cultural relevance due to competition. They include: Penthouse, Oui, Gallery, Maxim, FHM, Stuff and then from pornographic videos. And when the internet comes to play, the magazine was not able to compete with the freely available internet nudity and pornography.
It tried to have its Playboy website to compete, and Playboy Online became the fastest growing revenue line item in Playboy Enterprises, accounting for about 15 percent of corporate revenue (40 percent of the company's revenues came from its media division, and half from licensing of consumer products).
Available online since 1994, Playboy Online produces original content that mostly differs from the print editions. But it still failed in competing with those websites that are already dedicated to the niche.
Then in October 2008, for the first-time ever, Hugh Hefner was selling tickets to his celebrity-filled parties to offset his cash-flow problems. This was the first time that Playboy Enterprises really affected from the decreasing Playboy circulation, decreasing stock value, and ventures that have yet to turn a profit.
In June 2009, the magazine reduced its publication issues to 11 per year. Then in December, the company further reduced its magazine publication schedule to 10 issues per year. And also due to significant losses, the company's value has dropped from $1 billion in 2000 to $84 million in 2009.
The company started selling its assets, including Hefner in selling his English Manor house which was located next to Playboy Mansion, and Playboy in selling its former headquarters in the top office floors of 680 N. Lake Shore Drive in Chicago, Illinois, in April 2012.
Sales of Playboy magazine peaked in 1972 with more than 7 million copies. But since then, sales declined. By 2015 the circulation had fallen to 800,000.