Why sex is not selling for one German company

0 Comments | AFP, April, 2007

FLENSBURG, Germany (AFP) — Europe's biggest chain of sex shops is turning its back on sleazy red light districts by moving uptown and upmarket in search of new customers.

Beate Uhse, which dominates Europe's erotica market, is establishing a range of city centre boutiques that aim to attract a wider clientele.

"The traditional sex shops will not survive as they are," said Otto Christian Lindemann, the German group's director.

Beate Uhse's flagship products, porn films and special film screenings, are no longer making money for the company. These days, clients prefer to surf the Internet where they can often download films for free.

As a result, DVD prices have tumbled.

"In the 1990s, a video cassette cost the equivalent of 40 euros (54...