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Monday, November 16, 2009

Media Bites-Nov 16 2009

Media Continues To Fragment But Innovators Find A Niche.



Tired of cable or satellite? If you live in the City of the Angels, starting today you'll have a new option: Sezmi.(http://www.sezmi.com/) Here's the skinny-Sezmi transmits cable networks through digital TV frequencies that they have leased from local broadcasters. Users install two pieces of equipment that the company is calling a 'smart reception system' that brings in over the air programming and the Internet, as well as a set top 'digital media player' that sends the programming to a TV screen or records it for later consumption. Customers can opt to lease the equipment (cost unknown) or purchase for $299.00.

During the trial for a monthly fee of $5.00 you can see local broadcast, Internet channels and some pay-per-view services. For $20 more you'll have access to over 100 cable channels. As a consumer, I'm all over this concept. As a customer of an unnamed cable company, I'm paying $135 for bundled services ( cable, Internet and phone) and we rarely go that far up the digital tier. The Sezmi model would have my monthly costs at $25.00 for the service, $40 for Internet (cable carrier)and $30 for phone (Vonage or similar). In times like these every penny counts and I'd take the $40 savings. Now, in fairness, what you'd be giving up are: 24/7 customer service.

Not only is Sezmi competitively priced for users, it has a distinct advantage over other TV-over-the-internet companies: it can offer networks a percentage of subscription fees , in addition to a revenue share from advertising. At this point in time, that's something a platform like Hulu can't offer yet; but that could all change with the proposed Comcast/NBCU merger.

(source: LA Times, Jon Healy. Images from Sezmi)

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