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Interview with Mitch Berman, Co-founder, ZillionTV


Friday, July 9, 2010, 09:25 AM ET
posted by: Will Richmond
Last week I had a chance to catch up with Mitch Berman, co-founder and Executive Chairman of ZillionTV, the early stage online entertainment service. Mitch is a long-time Hollywood veteran and will be speaking at next week's NATPE LATV Fest (VideoNuze readers get a special discount). An edited transcript follows.

VideoNuze: What are the 2-3 key trends in digital media we should be watching?

Mitch Berman: I often talk about the growing role of influence, sharing and reward which are tied to social networking. Reward is both the influence you get with other members of your social circle as well as "points." Another trend is the rise of casual games which are becoming very popular with examples like Farmville. Then I'm also watching the trend toward over-the-top video. Now you have retailers, CE makers, independent over the top players like Roku and others, plus software providers. They're all attacking the traditional video subscription model.

VN: Is the threat of cord-cutting real or imagined?

MB: I think there's more hype than reality for now. The key is the consumer proposition. I'm a sociologist by background so I believe understanding the consumer is so important, but not discussed enough. Another trend is delivering the 3 screen experience. But the culture around each screen is radically different. So for example you can't just slap a TV show up on a mobile device and expect to succeed. So in this new world, the question is what's the model for the consumer?

VN: Some people believe the concept of content ownership is dead. What do you think?

MB: I believe that's partially true. I believe in the cloud model, but both rental and sell-through work, though we don't know yet for video. There are 2 cloud-based security approaches in the industry - DECE and KeyChest. I believe in that model, but we'll have to see how it plays out.

VN: What are studios doing right and wrong in TV and movie digital distribution?

MB: As an ex-HBO person I understand the desire to protect valuable assets. The good news is the industry is more and more looking at windows and considering ways to relax them and innovate. The bad news is that I think they're being overly protective, though I understand it. They have finite resources and are somewhat locked in to existing models. However change is everywhere - when you go into big retail stores you'll see the amount of distribution for DVDs has shrunk for example. So they need to find new approaches, but they don't have the resources to try them all.

VN: What are the key things connected devices need to do to succeed?

MB: First of all, there are many different devices. To succeed, they must first be easy to use - plug and play. Also they need to be priced well. Something that's $99 and up plus a subscription is too high. Look at the pay-tv providers have succeeded - they charge $4.99-6.99 per month for additional box. That used to be an issue when they were called "additional outlets." But now there's a charge for the set-top box but it seems free to a lot of people. Then of course there's the question of what content is available. It's all over the map right now. We're still understanding what people really want to do on their TVs, not online or on mobile devices.

VN: What will you be talking about a the LATV Fest?

MB: I'm going to offer a positive view of the world that we're in an "Industrial Revolution" in the entertainment industry, with all kinds of new opportunities. Learning to monetize in this new world - that's the big question.

VN: Thanks Mitch.



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17 Comments posted


M Daniels
Friday, July 9, 2010, 10:01 ET
I can't believe these people continue to fool everyone. This guy and his partner are involved in multiple counts of fraud from the SEC, the other founder was 'fired' for sexually harassing a female employee and a bad 'meth' habit. ZillionTV has concealed millions of dollars in investment money, they don't pay there bills and are for all intensive purposes - broke! I believe there are 2-3 people working out of their executive suite and they lied to everyone in Hollywood. Mitch Berman still sounds like a fool to me. ZillionTV is a joke and the biggest scam in the industry!

http://www.xyhd.tv/2009/11/industry-news/drugs-sex-and-politics-just-a-day-in-the-life-of-zilliontvs-mitch-berman/

http://tvninja2010.blogspot.com/

Joe
Friday, July 9, 2010, 11:54 ET
Hmmm...If what "M Daniels" says is true (I haven't Googled yet), then either Will Richmond hasn't done his homework on Mr. Berman, or Will is knowingly (or not) complicit.

Either way, I fail to see how Mr. Berman's comments would have any credibility or why they would benefit Will's column.

Friday, July 9, 2010, 12:02 ET
I wasn't aware of these allegations. Periodically I'll do short interviews with industry executives to bring more voices and viewpoints to the online video/digital media discussion. I recognize that not all readers will agree with the executive's thoughts or even with the choice of the interviewee!

jimmy
Friday, July 9, 2010, 01:14 ET
With move network up for a firesale, zillion tv struggle to stay relevent as a content aggregator.

In a world dominated by Apple and Netflix, zillion tv future is bleak. The VC should just fire the whole team and recover as much money as possible like move networks.


Mark Lieberfarb
Saturday, July 10, 2010, 09:07 ET
For the record, Disney has entirely dropped the idea of pursuing Keychest. It got no traction with any other company and just let it fade away - hoping no one would notice to avoid embarassment.

Bob
Saturday, July 10, 2010, 10:14 ET
WOW! A little Google-ing and you'll find all the dirt on Zillion. I guess Ben Silva and Mitch Berman are the founders who worked together at Tvia before starting ZillionTV. This is hilarious stuff! ZillionTV is the laughing stock of Hollywood, I guess the producers of these industry events ought to do more background. If Mitch Berman is referring to 'ex-HBO' as being an 'affiliate marketing manager' that hands out promotional pens and cups to service providers, then I guess it's worthy of the reference. This guy is a scam, his background is exaggerated and falsified. I honestly thought ZillionTV was already out of business.

Karma is a bitch!
Sunday, July 11, 2010, 08:24 ET
Among other things, Mitch Berman is anti-semitic, anti-gay and lesbian and anti-Mexican bigot... MUST READ THESE LINKS:

http://www.xyhd.tv/2009/12/industry-news/bigot-berman-at-least-zilliontvs-discrimination-is-equal-opportunity/

http://www.topix.com/forum/news/gay/T5O941SRHT826LBOQ

Jim The Cable Guy
Monday, July 12, 2010, 04:02 ET
Good reporting requires avoiding deception. Great reporting requires ferreting it out. So lets give a hand to Will Richmond with some information about ZillionTV and Mr Berman.

1. ZillionTV
- is down to 5 employees who haven't been paid since May 15 (as most of the company suppliers)
- according to its web site is without a CEO or a CFO
- has been sued multiple times for offenses that range from patent infringement to breach of contract to harassment
- has consumed $60 million to produce no technologies; no products; no users; no customers; absolutely no revenues; but certainly great PR !
- has failed to secure and distribute any ad supported content of significance in spite of the fact that it is the corner stone of its purported disruptive business model.

2. Mr Berman
- claims that he was never involved in a failure yet was CMO of Alopa Networks and CEO of Blend MediaWorks both of which went bankrupt under "his leadership"
- was once fired for violently assaulting a co-worker
- has publicly blamed his failure at the helm of ZillionTV on a/ his investors who didnt give him the resources he needed ($60 million in two years is clearly stingy) b/ his management team (strange since Mr Silva and Catalano, Mrs Stone and Davidoff, were long time partners and colleagues of Mr Berman c/ the economy (which for some reasons didnt seem to affect Netflix, Hulu, Vudu and Sezmi)
- pitches himself as a visionary and forward force for the entertainment industry yet a/ doesnt blog b/ doesnt tweet c/ doesnt have a Facebook account d/ first started using a Blackberry two years ago

Every industry has one of these characters with a sketchy past, no substance, but a big ego and a flair for self promotion. We should all look forward to a good laugh when Guru Berman pronounces the future of TV at NAPTE.

Monday, July 12, 2010, 04:49 ET
Looks like I've stirred up a hornet's nest here, which was not my intent. The short interviews I've done with other executives in the past have been well-received, but clearly more due diligence was needed on this one.

Jin Imaizumi
Monday, July 12, 2010, 10:35 ET
I'm much more interested in Mr. Mark Lieberfarb's comment about Disney is giving up idea of KeyChest than the scandals of Mr. Berman. Does anyone know more about KeyChest situation?

Tuesday, July 13, 2010, 05:32 ET
@Jin - I'm looking into it.

Natalie
Thursday, July 15, 2010, 07:30 ET
Mr. Berman was interviewed, because he is in fact a veteran of Hollywood and you can't knock him for it. As an HBO person who did more than simply "pass out pens"and moved on to build cable in New Zealand. His resume is impressive. Despite possible poor business choices and scandals that may have occured in his companies, he still is a role model and a player in this industry. Who cares if he isn't on twitter or facebook, but his reach stretches beyonds the holds of updating us where he's eating or retweeting articles that others have already retweeted. In the end, he's still on our minds and still in the action if these posts erupt this much activity.

And in terms of being anti-gay, anti-semitic and anti-Mexican bigot--- I can assure you. That's just ridiculous.

Pablo
Saturday, July 17, 2010, 02:30 ET
There's a lot of idiotic comments here... Yes Zillion was a failure as was Move, Veoh and a bunch of others... Berman never worked at TVIA, although Silva did and is currently being pursued by the SEC.
Berman was the CMO of Alopa for under a year in its decline... For the record 60-70% of venture backed companies hit the wall and explode... Sezmi is toast BTW and the jury is out on Hulu's premium play... you need hundreds of millions to play here... not the lunch money VC's usually put to work.
Berman is a sales-guy and that's the spin you get... If you didn't know that by listening to him for more than sixty seconds, you're not the sharpest knife in the drawer. A lot of ex-Zillion employee's here I suspect...

You bought the BS.

Rich
Saturday, July 17, 2010, 03:17 ET
Jim the CG is a troll.... 25% 'close to truth' and 75% made up, or self started rumor.
Zillion blew threw $30M and had little to show... as did many others in this space. I agree with Pablo... a few fired Zillion folks I bet...
Content will always be king and the best platform to allow that to happen will
win... Google Tv ?

Paco
Sunday, July 18, 2010, 11:03 ET
Clearly Mr Berman and his disciples have taken to the comments... Everything in here has been verified and is 100% true. The public SEC filings along with the $10M from Qwest and several lines of credit from Sierra Ventures adds up to well over $60M. I worked with HBO during the time that Mr. Berman claims to have been there, the only recollection of his involvement is handing out pens and cups to cable company call centers. Jim the Cable Guy's comment is all true and I'm sure the fact that it includes inside information, really pisses Mr. Berman off. Your disciples are not all so loyal, aye Mitch? Wait until they all start suing you for back wages, damages and fraud...! Yeah Mr. Berman is still relevant in the Silicon Valley and events that are not truly entertainment industry people, just ask any of the studio execs who did not renew their licensing deals with Zillion, or the ones that never gave it to them, Disney, FOX, etc... The truth always comes out!

Paco light
Sunday, July 18, 2010, 06:59 ET
paco you are... Jim the Cable Guy... troll

TV Ninja
Thursday, September 2, 2010, 08:03 ET
DING DONG THE WITCH IS DEAD!!!!!! ZILLIONTV IS FINALLY OUT OF BUSINESS!!! THEIR MAIN LINE IS DISCONNECTED 408-418-4100!!! FINALLY, THESE IDIOTS GET WHAT THEY DESERVE... BURNED THROUGH $60MM, THE BIGGEST SCAM OF THE SILICON VALLEY!!!



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