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South korean mastermind of exploitation chat rooms gets 40 years in prison on charges of blackmailing dozens of women, including minors, into filming sexually explicit videos

The Web site, which Playboy hopes to launch before the end of the month, will mirror the magazine's original philosophy, said one executive: "Hefner said from the start--don't segregate the libido from the intellect. In the economically booming realm of cyberporn, Playboy is soft, tame and comparatively prudish.

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The popularity of sexually explicit Web sites has shown that people will pay for sex. Monthly measurements of Internet traffic show that adult sites are among the most popular, ranking behind search engines, news and on-line shopping services and education services. Opportunities exist on the Internet, but selling on the Net is like free-lance writing: Many can write, but not all of them can sell what they write and live off it.

Sex is a niche that will be the first killer application," Krasilovksy said.

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Hard-core content is not the issue, argues Hefner, who compares the popularity of hard-core Internet sites to the arrival of Penthouse and Hustler magazines in the early s and the initial craze in X-rated videos in the '80s. As valuable as that is, it is no guarantee of commercial success. There are few economically mainstream winners on the Net. The Wall Street Journal is one.

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As the novelty wore off, circulation and sales quickly went south. It is one of the oldest--and some would argue the most transparently lame--assertions offered by the contemporary American male: I buy Playboy for the articles.

It's new; people are curious. The company's growth is now fueled by television. The playmates obviously will be the most popular item. Circulation of Playboy magazine, though, has plateaued, after dropping precipitously in the s.

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Playboy is another: Its free Web site has recorded as many as 7 million "hits"--or visits--daily, and it is turning a profit from advertising. Although documented research intended to verify the reliability of this claim has been elusive, it should be put to a good test this summer, as Playboy Enterprises Inc.

That, of course, is a reflection of the year-old magazine itself, as well as Playboy's 2-year-old free Web site.

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That thinking was good enough to create an American icon in the s. Playboy enters this venture with several advantages: It has a recognized brand name, a huge vault of material that enables the company to produce the Web site at relatively low cost, and experience from producing an already profitable Web site.

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Will Playboy's pay site, of which roughly 20 percent will feature naked women, be able to compete? Playboy officials say they are confident the broad-based attraction of the magazine--from the playmates, the interview, the Playboy Advisor, the cartoons and other longtime features--will deliver commercial dividends.

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Aided by technological advances, the quality of all services is certain to improve, which should enhance the prospects for selling entertainment over the Net. Media General Inc. It also said it plans to launch a hour Internet TV network featuring live and recorded sex shows. Playboy's free site, Playboy. There was an initial burst in popularity because they offered something that had not been easily obtainable before.

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Always has been. Ultimately, all those businesses find a market that is there, but it's not a big market. Always will be.

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But companies that offer free sites are often loath to start charging because the precedent of free information is a powerful one.