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Shakti Extratainment, the Internet Protocol Television (IPTV) channel based out of Chennai, launched its service in the US today. It’s the first ever IPTV service launched in the US targeting the Indian audience. They are offering shows on a “watch at will” basis, through a special IPTV set top box of its platform partner Verismo Networks. The box enables viewers to use their existing broadband connection to download programmes directly to their televisions, as opposed to personal computers.

I got a chance to talk with the Founder of Shakti Extratainment, Mr. Chitravina Ravikiran about their target market and their business model. Please listen to the pod cast for the entire interview.

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Here are some key points that I discussed with Mr. Ravikiran.

Content Offerings

When asked about the types of content, Ravikiran said “we have five broad categories. Classical, Popular, Educational, Spiritual, Devotional and Community. We want to bring in the concept of a balance between entertainment, education, excitement and encouragement for the community. And we also want to bring a balance between classical and contemporary culture of India.” And he clearly pointed out the cable / satellite companies are more leaning towards the contemporary content only. However there is definitely a huge market for classical content in the US.

One thing that really interested me is that Shakti Extratainment has arranged a series of live recordings in India featuring Maestro’s teaching other students in India. And students in the US can watch the actual live classes through their IPTV service and could get educated. I believe this will definitely be a major selling point.

Market readiness of IPTV in India

MTNL and BSNL already launched their IPTV service in India. However when asked about the market readiness in India, he replied that, the broadband penetration rate is low in India. And mentioned that, they are strategically ready for a release in India when the last mile broadband connectivity issue is resolved.

3rd Party Partnership for Content

Content is key for an IPTV service. Ravikiran mentioned that they have partnerships with 7th channel and also actively pursuing in getting contents from other regions like Kanada, Kerala and from other cities in India to provide a mix of wide varieties of content

Subscription and Service fees

Subscribers need to pay $149 for getting the set top box. Ravikiran claimed that it’s the cheapest in the US market, and I concur with him as the next lowest that I could get in US is about $180. And interestingly there is NO MONTHLY SUBSCRIPTION FEES. Yes you heard it right. You have to play only for what you watch and seems like many of the content are just few cents.

Revenue Model

When asked about the revenue model, he mentioned that their revenue model is based on a mix of subscription fees and advertisements fees.

Targeted advertisements

Since the content is provided through IP, one could provide targeted advertisements based on the customer demographics. When asked about this, Ravikiran agreed that it’s one of their selling points to their advertisers and are using the same in their platform

Service in other countries

We all know NRI’s are scattered around the world, especially many of them in Middle East and other western countries. Since the content is offered over IP theoretically the service could be used in places where you have broadband connection. However Shakti Extratainment service is right now only in the US. For this Ravikiran pointed out that their technology partner has customer service only in the US. And he also said that they will be rolling out the service, once they believe they could get good number of subscriptions in other parts of the world.

Combating free content over the web

Nowadays one could get a lot of content freely over the web. When asked about how they are combating this issue Ravikiran replied that they are adding value with quality and said ” we give something that people can not merely watch and also learn from, take back cherish, nourish, flourish”, to me that’s a selling point.

Overall, Indians in the US could definitely make use of this service. The reason being

• You just pay for what you watch
• A good balance between classical and contemporary
• One could learn and get educated
• Teach your kids about India