TV Guide Channel Updates to Dodge The Digital Blues

Cable World, March 24, 2003

Byline: JON LAFAYETTE

In a bid to remain relevant in a digital television world, TV Guide Channel executives are telling operators how the old-fashioned scrolling network can help sell new services, including video-on-demand and high-definition television.

TV Guide Channel begins a makeover next week designed to ensure operators view it as a necessity, even in digital homes that have access to an electronic program guide. Among the changes is a shift to a predominantly blue palette.

TV Guide Television Group and TV Guide Networks president and COO Pamela McKissick said the color resonates with 18-to--34-year-old male viewers and feels more modern and high-tech than the current orange scheme. The channel's scrolling program listings at the bottom of the screen will feature an additional line, which will make it feel like it's moving faster, she added.

By the fourth quarter, the channel will also make its program guidance more timely. What's On, which appears ten minutes before the hour on the top half of the screen, will feature "editor's picks" that viewers can watch for in the coming hour. McKissick said that while electronic program guides are the primary way digital subscribers learn what's on, as the listings get more complex, viewers will need more help finding out what's worthwhile. "No one can touch TV Guide for subjective guidance," she said.

McKissick said the channel is looking for well-known celebrities to host What's On to help the show achieve more of a buzz factor. The channel's current hosts, including Katie Wagner and Debbie Matenopoulos, will remain with the music and movie programs they currently work on and possibly add other responsibilities.

Beyond creating buzz, TV Guide Channel is designed to be extremely functional. All of the network's programming and listings are customized down to the head-end, which means individual operators can pick their marketing priorities and have content designed to drive those products.

Operators can use the channel to highlight shows appearing on digital channels, explain the benefits of a new VOD offering or indicate which shows are available in HDTV. TV Guide's HDTV efforts will be launched in July.

"TV Guide Channel is an operator's best friend," said Hopkins, EVP of affiliate sales and marketing at Gemstar-TV Guide.

Hopkins said that TV Guide put together an extensive program to help Comcast launch its VOD service in Philadelphia. Now it's putting together two-minute messages explaining how to get HDTV programming, which operators can use during local ad time on the channel. TV Guide is also creating an icon and a navigation system to direct viewers to programming available in HDTV on a system-by-system basis. TV Guide Channel picks up the costs of those materials.

In a sense, the TV Guide Channel needed to reintroduce itself to operators. After the departure of Henry Yuen from parent Gemstar-TV Guide, former Fox Cable president Jeff Shell has looked to create a less combative relationship between TV Guide and operators. Shell brought in Hopkins, a former Fox distribution executive.

Hopkins said TV Guide Channel has distribution deals with all of the major operators except Cablevision, which dropped the channel last year. It also has electronic program guide deals with most operators except for Time Warner Cable, Cox Cable and Cablevision.

Hopkins said the channel generates more than half its income from its national ad sales operation.

While most channels give local operators two minutes per hour to sell as local ad time, TV Guide Channel offers ten. Hopkins said operators generate an average of 90 cents per subscriber per year selling ads on the channel.

At the same time, the channel charges a relatively low subscriber fee of less than 9 cents per month on average. "As a promotional and marketing tool, it more than pays for itself," he said.

THE NEXT QUESTION:

*Will TV Guide Channel have to offer high-definition images to sell HDTV programming?