Zdtv Conducts Makeover, Changes Name

Just over 2 years after it started with big budget but little cable carriage, ZDTV is attempting huge makeover by changing name, greatly expanding original programming, starting first national marketing campaign and signing cable distribution deals with several major MSOs. Young cable network, begun by Ziff Davis but then bought by Paul Allen's Vulcan Ventures in $320 million deal in Jan., is trying to reposition itself as broader "digital life- style" TV channel after focusing first on shows about computers and Internet. Despite fierce competition from such other technology content players as CNET, ZDTV also is seeking to build presence on Internet as leading online destination for technology news and information.

Renamed techtv, network intends to expand 6-hour original programming block 50% over 12-18 months by adding 3 more hours per day of technology news, product reviews, advice, finance and entertainment shows. Plans call for starting several new daily and weekly programs, beginning later this month with AudioFile, weekly half-hour series covering music technology. "In the beginning, nobody figured out how to present programming about technology," techtv Chmn. Larry Wangberg said. "I think we've figured out how to do that."

Under new name, techtv is shooting for much greater carriage in cable and satellite TV homes by aggressively pursuing both analog and digital cable distribution deals. Now in 19 million cable and DBS homes, network seeks to reach 20 million in fall, 23 million by end of year and 30 million by fall 2001. It plans to announce expanded carriage deals today (Aug. 21) with AT&T Broadband, Time Warner Cable and Allen-owned Charter Communications accounting for more than one million of those homes. In 2 notable market rollouts, AT&T will introduce network in San Francisco next month and Time Warner will do so in N.Y. at about same time. To support those and other market launches in Baltimore, Dallas and Detroit, techtv intends to stage marketing blitz on TV, in print and online in fall.

Key issue for techtv is analog vs. digital cable distribution, as it is for most other young networks. Although techtv is offered now mainly on lower cost analog cable lineups, network executives expect most of their new carriage to come on more expensive digital tiers, potentially limiting their reach. Both AT&T in San Francisco and Time Warner in N.Y., for instance, will carry techtv as higher priced digital network. However, its officials believe they also can pick up more analog distribution. "I think we're in the best position to grab a majority of what is left," techtv Exec. Vp-COO Joseph Gillespie said.

Like other emerging cable networks, techtv faces stiff competition from potpourri of recent market entrants and other more established players, including Oxygen, Odyssey and newer channels from Discovery Communications, Disney, ESPN, MTV Networks and Rainbow Programming, to name some. Techtv also is far from being profitable, with new cable networks usually needing at least 40 million homes to break even. But executives insisted they weren't worried because no other channels competed directly with theirs. "We're the owner in this category," Wangberg said. "We see this as being one of the networks that will have universal carriage in time."

Techtv is seeking to boost exposure on Internet through new content and technology distribution deal with major Web portal Go2Net. Under agreement, techtv will be primary content provider in technology category for Go2 Net, which draws more than 12 million unique users per month to its network of sites. As part of deal, Go2Net's MetaCrawler search engine will become exclusive search engine for techtv's Web site, which attracts about 750,000 unique users per month.

COPYRIGHT 2000 Warren Communications News, Inc.
COPYRIGHT 2000 Gale Group