Starz Entertainment Group Unveils Next Generation of On Demand

Starz Entertainment Group Unveils Next Generation of On Demand

President/CEO Robert B. Clasen Outlines New Programming, Navigation Tools, Educational Campaign Specifically Designed for the On Demand Experience

Tells NCTA Academic Seminar On Demand is New Form of Media, Requiring Radically Different Approach from Linear Channels

Predicts Portable Devices Will Soon Mean On Demand Anywhere as Well as Any Time

SAN FRANCISCO, NCTA National Show, April 3 /PRNewswire/ -- Starz Entertainment Group LLC (SEG) President/CEO Robert B. Clasen today unveiled details of what he said is the "next generation" of on demand. In a keynote speech to the Academic Seminar held on the opening day of the National Show, the National Cable & Telecommunications Association's (NCTA's) annual convention, Clasen called on demand television an entirely new medium that requires programmers to abandon all conventional, linear channel thinking and reinvent their businesses.

Key elements of the next generation of on demand were launched by SEG April 1. They include:

* The use of "button bonuses" to provide an opportunity for viewers, when they select a movie, also to watch complementary short-form programming and/or to be offered suggestions about other movie options in the same genre. This feature simulates an interactive experience by recognizing and reacting to the film choice the viewer makes. * A new navigation system to enable viewers more easily to find the on demand programming they want; * Premiering major movies on demand on average two weeks before they air on the flagship Starz channel; * Expanded consumer education programs in conjunction with affiliates; * New, unique on demand programming and promotional stunts that combine movies with short-form programs, behind-the-scenes footage, and interviews; * Airing movies -- including foreign language, niche and independent films -- exclusively on Starz On Demand that would likely not find a home on the linear channels; * Changing the mix of programming to make use of the fact that in the on demand world there can be hundreds of movies available in prime time versus the one prime time movie per channel that is possible in the linear world.

Clasen also predicted that the definition of on demand will soon expand to mean not just the ability of viewers to watch programming whenever they want but wherever they want as well.

Like telephones, Internet access and music, television is rapidly becoming a portable communications service, he said, propelled by a range of new portable devices flooding the market. "The days are rapidly drawing to a close when television is something that happens only at home." Key to the further development of portability will be a secure digital rights management system, he said, to ensure that "portability does not mean piracy."

Two years of experience with on demand has demonstrated that it is not enough simply to dump a lot of content into the on demand format and then hope subscribers will find it, Clasen said. "That can work for a few people for a while, but if we want to make this form of television viewing a truly mass medium, programmers need to do a lot more."

Clasen noted that half of digital cable subscribers with on demand do not use it regularly, even though it is free. Program promotion has historically been the role of programmers, but first efforts with on demand focused on technology issues. "The name of the game early on was simply putting programming on the servers," Clasen said "and while some believe that tonnage is the answer, whatever amount of programming is offered on demand, distributors will need to promote and guide consumers to an entirely different and improved entertainment experience." Billions of dollars are at stake in the effort to persuade more viewers to make use of on demand, because the evidence shows that on demand use cuts churn by 15-20 percent.

On-demand allows Starz to present a much wider array of programming, particularly in prime time, than was possible in the linear world, Clasen said, adding that this should be good news for independent film producers as well as viewers.

The marketing of millions of new portable video viewing devices will further change the landscape, he added, creating demand for short-form programming that can be seen while viewers wait in the doctor's office or ride the bus to work.

At the same time, he noted, the world of linear television will not go away although on demand will cause changes in the linear viewing habits. People will still want to watch television in their homes for many generations to come, he said, because the simplicity of linear television viewing will continue to be an attractive proposition in a world of increasingly varied and complex choices.

Starz Entertainment Group LLC (SEG) is the largest provider of premium movie services in the United States with approximately 173 million pay units. SEG offerings include the Starz Encore Movie Pack with 13 digital movie channels and more than 750 movies per month, Starz HDTV, Starz On Demand, and Starz Ticket, the first and only on demand premium TV subscription service available on the broadband platform. Starz Entertainment Group is a wholly- owned subsidiary of Liberty Media Corporation, www.starz.com.

Contact: Tom Southwick Starz Entertainment Group (720) 852-5821 (direct) (303) 513-3758 (cell)

Source: Starz Entertainment Group LLC

CONTACT: Tom Southwick of Starz Entertainment Group, +1-720-852-5821, or cell, +1-303-513-3758 (cell)

Web site: http://www.starz.com/

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