May 1, 2008
Building B reveals its secret - TV 2.0
Building B, a Silicon Valley media start-up, has emerged from more than two years in stealth mode to announce a new “TV 2.0″ business model.
But for all its talk of innovation, its Sezmi service is most likely to win consumer support as a cheaper alternative to satellite and cable TV providers.
Sezmi aims to offer TV channels at low-cost by using existing infrastructure. Its set-top box will tap a broadband internet connection and the spare capacity of terrestrial broadcasters to download programming to its hard-drive, while a sophisticated indoor aerial will enable live over-the-air digital channels to be seen.
Sezmi will therefore partner with terrestrial broadcasters and internet service providers (for a graphic explanation of how it is supposed to work see this diagram from the local San Jose Mercury News).
The company seeks to make a virtue out of this hybrid model with the TV 2.0 label. This means presenting personalised programme lists for each member of a family , allowing them to choose to watch what they want, when they want, including internet-based video.
A commercial launch is touted in several major US markets later this year, but Sezmi has to convince consumers this is the future and faces an uphill battle against the incumbents.
Its biggest weapon will be price, but there is no word as yet on what it plans to charge.
Building B has attracted some big industry names. Phil Wiser, its president, is Sony’s former chief technology officer in the US, while Andy Lack, Sony BMG Music Entertainment chairman, is on the board
Morgenthaler Ventures, OmniCapital, Index Ventures and private investors took part in a $17.5m financing round last August.
Bob Pavey, a Morgenthaler partner, said breathlessly at the time: “I am as excited about Building B as I was about Apple when I first invested in them.”
