New Frontier is an adult TV network and on-demand programmer that operates websites as well.
The satellite footprint for the channels covers all of Europe, the Middle East and areas of Northern Africa.
The new channels will primarily target cable, IPTV, digital terrestrial and satellite platforms in Europe.
"We are pleased to announce the expansion of New Frontier Media's product offerings to include new PPV channels that are expected to reach more than 49 million unique households, primarily in Europe," said Michael Weiner, chief executive officer of New Frontier Media.
"We have quickly expanded our transactional TV segment's video-on-demand (VOD) distribution in this market. Due to the strong performance of VOD, operators have expressed an interest in an expanded New Frontier Media product offering which includes linear channels that can be sold on a subscription and PPV basis.
"The newly executed strategic licensing agreement allows us to fulfill customer demands for a broader product offering and should allow us to further grow our international distribution revenue with very little incremental expense. This new license agreement provides another example of the Company's ability to effectively execute against its strategic objectives by leveraging existing infrastructure and relationships to create new revenue streams."
Weiner said that the first of the new European channels, XTSY, is expected to launch in the third quarter of fiscal year 2011.
"We are optimistic that the new PPV channels will allow us to materially increase our international subscriber base during the current fiscal year. We believe this agreement represents a key milestone towards the achievement of this objective,” he said.