Sezmi to Cablecos: We Will Destroy You

Saying “We’re going to take on cable and satellite companies and replace them in the home,” Phil Wiser, founder of Silicon Valley Web-and-TV programming provider Sezmi, gave a broad preview of his company’s innovative service at the Future of Television conference in Manhattan.

“The key to the industry moving forward is true convergence, and this is an all-in-one solution for the home,” Wiser told the audience at a panel session at the Future of TV conference, according to Digital Cable News.

Sezmi, which plans to market a wholesale service to competitive telcos who can’t afford to build massive fiber-optic networks, has generated plenty of buzz since rolling out a trial service in Los Angeles earlier this week. Based in Belmont, Calif., the company – headed by Wiser, the former CTO of Sony Corp., and entrepreneur and investor Buno Pati – plans to upend the current business model of cable TV by providing a much cheaper service that incorporates broadcast networks, cable channels, and Web video into a seamless, highly personalized service.

The company also said this week it has raised $25 million in a new funding round from investors including Morgenthaler Ventures, Omni Capital, and Index Ventures plus one new, undisclosed “strategic investor.”

Sezmi combines a broadband connection with a powerful antenna to grab digital-TV broadcasts, through agreements with local broadcasters, that include many of the most popular cable-TV channels. The company’s three-month trial in L.A. is free; at commercial launch, the packages will range from $5 monthly for a basic service that includes only the broadcast channels, up to $25 a month for a bundle equivalent to a basic cable package that costs anywhere from $40 to $50 a month. The service also includes access to thousands of on-demand, pay-per-view movies plus loads of Web content from YouTube and elsewhere.

Customers must also buy, or rent, a settop box that provides a terabyte of storage, enough for around 1000 hours of programming. Another downside is that some of the most popular cable channels, including ESPN and HBO, are not included, yet. Wiser says that the 100 or so cable channels available in early trials is just a foretaste of what will be provided on the official launch of Sezmi, which is in talks with the content providers.

Sezmi also offers customized interfaces or “mi” channels that tailor content for specific family members based on their preferences and recommendations based on viewing habits and choices by other viewers with similar tastes.

"Sezmi was built based on a deep understanding of how television viewers are evolving,” Wiser said in a statement. “We recognized that a completely new end-to-end offering was required to meet the needs of both consumers and content providers."