The player: Buno Pati, CEO of Sezmi
The play: Sezmi, a next-generation TV service that delivers traditional TV networks, movies and broadband video via the TV set, is designed to be a wholesale replacement for cable and satellite TV. Sezmi partners with telephone companies and other alternative service providers that don’t offer their own multichannel service. Those providers then offer Sezmi as a multichannel video package. “We are a wholesaler. We wholesale this end-to-end television service to broadband service providers, wireless ISPs and others who have voice and data but not video,” Mr. Pati said.
The pitch: Mr. Pati said Sezmi is coming into the market with a higher level of service at a lower cost than traditional TV. Sezmi is not an “over-the-top” play like an Apple TV that delivers add-on Web video content or movies to the TV. Instead, Sezmi will be packaged by alternative service providers as a competitor to cable or satellite. Also, Sezmi will offer a core package of channels, with additional channels available a la carte. “The entry package is a high-end package that covers nearly 90% of the shows people watch,” Mr. Pati said. The Sezmi service also includes ads that can be targeted and measured via clicks. Broadband video analyst Will Richmond of VideoNuze.com described Sezmi in a story as “the first bona fide broadband/on-demand competitor to cable TV and satellite operators.”
In the mix: Sezmi has inked deals with a handful of telcos, but Mr. Pati declined to disclose the partners. He did say Sezmi has started trials with some telcos and expects to launch service next year. Sezmi also has signed up content providers for the service, including most cable and broadcast networks, Mr. Pati said.
Backstory: The company was founded in 2006 by Mr. Pati and Phil Wiser, Sony’s former chief technology officer. Sezmi spent the first few years on technology development and dealmaking before announcing the service this past spring. Sezmi is based in Belmont, Calif., and has offices in Santa Monica, Calif., and Fort Lauderdale, Fla.
The money guys: Mr. Pati and Mr. Weiser funded the company themselves with an undisclosed sum. Earlier this year they landed $17.5 million in venture funding in a round led by Morganthaler Ventures. Sezmi makes money by licensing its service to broadband providers.
The pros: About 34 million cable homes subscribe only to analog cable, providing an opportunity for Sezmi to upsell them. In addition, about 20 million homes do not have cable. Because Sezmi will be cheaper than incumbents, Mr. Pati expects to lure some of those customers to become multichannel customers. VideoNuze’s Mr. Richmond said Sezmi combines “the best of the traditional linear broadcast/cable network model with broadband, on-demand, digital video recording, personalization, social networking and ease of use that many of us now consider second nature.”
The cons: Changing entrenched consumer behavior is hard. Sezmi is going after a big market that is deep with incumbents including Comcast, DirecTV and Time Warner.
Background: Mr. Pati was born in Washington, D.C., and raised in Italy, India, Switzerland and the United States. He earned a bachelor’s degree and a Ph.D. in electrical engineering from the University of Maryland, with additional post-doctorate work at Stanford. He has worked as a professor at Harvard, been an angel investor and served as CEO of several early-stage, venture-funded technology companies. He is married with two kids.
Who knew? Mr. Pati is an accomplished musician who plays a wide variety of instruments. He has a music study at his house where he regularly jams with Mr. Wiser and other friends. Mr. Pati and Mr. Wiser have been friends and fellow musicians for 18 years.