Item 1.01 Entry into a Material Definitive Agreement.

In connection with the expiration of the stated term of New Frontier Media, Inc.'s agreement with DirecTV, Inc. ("DirecTV") regarding the carriage through October 14, 2009 of three of the company's channels, the material terms of which were previously disclosed by the company in its periodic reports filed with the Securities and Exchange Commission ("SEC") and the final version of which has been filed with the SEC with the confidential portions redacted as Exhibit 10.05 to the company's quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2007, effective November 1, 2009, DirecTV will continue its carriage of two of such channels. The terms of DirecTV's continued carriage of such channels are materially similar to those stated in the now expired agreement, and include DirecTV's right to discontinue carriage of any of the company's channel(s) without penalty and with little advance notice. While there can be no assurance that removal of the third channel will impact the company's net sales in direct proportion to its contribution to the company's overall net sales while it was being carried, the loss of the additional channel is expected to have some negative impact on the company's net sales generated under the agreement.