Deron Triff was recently named vice president of digital ventures at the US Public Broadcasting Service (PBS). He recently spoke to [itvt]'s Tracy Swedlow about PBS's new agreement with TiVo, about its strategy for on-demand platforms, about how it plans to make money from free-on-demand content, and more.

[itvt]: Deron, you were recently named vice president of digital ventures. Could you define what PBS means by "digital ventures"? Are these digital ventures something from which PBS is hoping to make money?

Triff: All we are trying to do is aggregate the strands of digital service plans that we've been putting into place this last year into a single area. I wouldn't say the main goal is to make money per se, but rather to ensure good business fundamentals behind any digital service that we launch. Within digital ventures fall high definition television, digital channels, VOD, digital video recorders, the digital classroom (which is an evolution of an existing service we provide to teachers), and broadband, as well as ITV.

[itvt]: Could you tell us a little about PBS's current digital strategy?

Triff: Well, we have a number of goals. One important goal for us is to deliver content to consumers on-demand, at their convenience. So we've got a 2-prong strategy with respect to on-demand platforms, namely PVR and cable VOD. As you know, we've worked with TiVo in the past on a promotion around the anniversary of 9/11. We delivered program trailers, exclusive behind-the-scenes material, and important public service messages from Mister Rogers to TiVo subscribers. We experienced high usage among their subscribers for that content, as well as a very high view-to-record ratio. In fact, around 60% of TiVo subscribers actually watched the showcase, and then, of those, more than half used TiVo to record the program. So, as a viewer-acquisition tool, we think TiVo showcases are potentially an effective media buy. Just last week we announced a 6-month relationship with TiVo that will allow us to not only continue testing promotional techniques, but also to track viewer usage trends on a monthly basis and adjust the strategy as we go.

[itvt]: What does the agreement cover?

Triff: Specifically, we will be doing 3 showcases over the next 6 months--2 of those showcases will be tied to new PBS series. We're going to try to use the PVR as a way to introduce viewers to programs they've never seen--to give them a "sneak preview" of a program, so to speak. We're also going to be aggregating promos with TiVo's Ipreview technology, and we'll be doing some testing: some series we will tag and other series we will not tag, as this will allow us to see if the recording of our programming increases significantly when we tag a promo. In addition, we will be working with TiVo and other parties on a metadata strategy that will effectively ensure that PBS program descriptors are optimized to the way TiVo searches for programming and predicts viewer interests. Our producers will be able to plug into that strategy when they deliver programs to PBS, so that those programs are optimized for TiVo.

[itvt]: What issues do you have to consider when coming up with a metadata strategy?

Triff: Well, it's not a full metadata strategy: it's just related to the program descriptors, and we did enough testing on the box to know how TiVo sorts content, what keywords it looks for, and so on. So the goal is to change the way we write our program descriptors so that it maps to those words. While I don't know for sure if other broadcasters are doing this yet, I can only imagine that everybody will start focusing a lot more on their program descriptors, on how they classify programs. At one point, we tested 20 of our programs across a variety of searches, and were somewhat disappointed at how infrequently those programs showed up, which is why we are taking various measures to fix this.

[itvt]: Why do you think your programs weren't showing up in the searches?

Triff: The problem, I believe, is on our end, not TiVo's. We aren't calling things by the proper words. We're just not labeling our stuff well. There is a real art behind this, there is a real strategy, and you definitely can get it right.

[itvt]: And you are also exploring the potential of headend-driven VOD, correct?

Triff: Yes, we look on VOD as an opportunity to provide viewers with access to our archives. I can't yet reveal specifically who we're talking to, but we are talking to the operators who have the largest VOD deployments. We're in active discussions with multiple MSO's right now.

[itvt]: What kinds of content would you offer through them?

Triff: We're looking at offering a package of kids' content to start with. That's something that the MSO's find very attractive, and we know from our home video sales that it is a compelling business. We think our kids' content would make a very attractive SVOD service, a premium service that would drive revenue back into the public television system. We're also looking into offering a package of free-on-demand content.

[itvt]: Can you give us some details about the content that will be included in these SVOD and FOD packages you're planning?

Triff: I can't tell you which specific titles will be included, but I can tell you that the SVOD kids' package will contain some of our most highly recognized PBS Kids programs, including programs that have been best-sellers in home video and top-rated by Nielsen. We believe one of the benefits of the SVOD service is that it will encourage viewers to purchase our home video offerings. Another important benefit of VOD relates to bandwidth limitations our stations face with respect to distributing PBS Kids programming 24/7. As you know, PBS distributes the PBS Kids channel; however, our stations have to choose between using their bandwidth either for 4 to 5 standard definition channels or for 1 high definition channel with perhaps 1 additional SD channel. We believe that most stations will opt to offer HDTV during prime time, and therefore may not be able to offer multiple channels, including PBS Kids, during the evening. So, in many cases, the only way for PBS to offer a 24/7 kids' service is to do it through a video-on-demand environment. The benefit of VOD to our member stations is that we'll be able to co-brand the VOD kids' offering where operator technology permits, and afford them the opportunity to use their broadcast bandwidth for HDTV.

[itvt]: So what's the current status of your Kids' SVOD initiative? Is it close to being rolled out?

Triff: We've just built a financial model, and we're now in discussions with the operators, as well as with on-demand service providers, and have still not settled on acceptable terms. So no launch date has been set yet. I should add that our overall VOD strategy also includes a free-on-demand element, which we're calling "PBS Special Collections."

[itvt]: What type of content would be included in that package?

Triff: As you know, many viewers buy our feature-length documentaries and specials essentially as collectible material or reference material for their video libraries. So the concept involves offering one part of a multi-part series free-on-demand, and using the platform to drive the purchase of an entire video collection. For example, we would offer one episode of Ken Burns' "Civil War" series free-on-demand, so as to encourage viewers to go and purchase the entire series on home video or DVD. The Special Collections concept will likely be part of a 2nd-phase rollout.

[itvt]: It makes more financial sense to offer a taster of your premium content for free, and hope that that drives home video sales, rather than to offer it via an SVOD service?

Triff: Right now, the cable companies really want FOD. So using FOD to showcase and sell our premium content is a good way for us to respond to that demand, while ensuring the medium drives revenue to support public television's educational service.

[itvt]: So you are finding that the cable operators are more interested in FOD than SVOD?

Triff: Most appear to be rolling out SVOD for movies, but for television content, they're starting with FOD and positioning it as a value-add to drive subscribers to a higher tier--it's basically the same strategy as they have for HDTV. However, I think that once they look at usage, they'll probably migrate to the subscription model. That's what we're hoping.

[itvt]: Are you finding that there's a lot of interest on the part of the cable operators in acquiring VOD content from PBS, as opposed to from the commercial networks?

Triff: I think it depends on the operator. 2 of the largest operators have a strong need for top-shelf kids' programming, particularly educational programming from a proven brand. And, as PBS has a large number of the most popular kids' shows--I believe 6 of the 10 most popular kids' shows are on PBS--they've turned to us. Operators also understand that parents turn to PBS Kids programming, and a PBS Kids offering on VOD will will drive digital upgrades. I also believe that operators realize that the quality of programming offered in our FOD special collections is very high--in fact, the best we have to offer--and they want that content.

[itvt]: How do you plan to promote your VOD offerings?

Triff: We've put aside some marketing dollars for this. What we'd like to do is take our promotional assets and provide them to the operators, so that, when they do media buys--whether in local papers or bill stuffers--we're part of their efforts to promote VOD. So the message to the consumer would be something along the lines of "Sign up for Time Warner's digital tier and get PBS Kids VOD."

[itvt]: How far away are we from seeing all of this take place?

Triff: As I mentioned, we're still in negotiations with cable companies right now. And you know the way these things go: it could completely fall apart tomorrow, or we could sign a deal next Wednesday. It's an ongoing negotiation, so I can't really answer that question. However, I'm very hopeful that we can sign something in the next few months, and that we can get our service off the ground next summer. That's my target.

[itvt]: Beyond VOD and your relationship with TiVo, what other ITV initiatives is PBS currently engaged in?

Triff: One operator in particular is very anxious for us to try networked PVR--i.e. where the PVR environment is controlled from the headend. We're evaluating it, but that's all I can say about it right now. But VOD definitely seems to have a lot of traction. I'm guessing that there must already be around 6 or 7 million VOD-enabled households: Comcast has a couple million in Philadelphia, Time Warner has, what, 4 million? It's becoming real. So, we need to be there.

[itvt]: Are you working on any 2-screen interactive applications?

Triff: No. We're not working on those.

[itvt]: But, as you probably know, there was a prototype at the American Film Institute's Enhanced TV Workshop for the documentary, "Two Towns of Jasper."

Triff: Well, the Corporation for Public Broadcasting is a sponsor of AFI. And the AFI Workshop often features ITV prototypes from independent producers whose programs air on PBS. There's somewhat of a misperception that PBS is bullish about ITV. But while I think a number of PBS-associated producers are bullish about ITV, as an organization we're waiting and seeing.

[itvt]: Yet PBS has been very proactive about developing an engaging Web site, as well as Web sites for its various programs. So why is 2-screen synchronous interactivity not an area that PBS would be interested in exploring?

Triff: Quite frankly, because our resources are very tight. Right now, our priorities in digital services are VOD, PVR, HD, digital channels, broadband, and video streaming. I think the usage numbers for 2-screen applications are still relatively small. And we just don't see any kind of first-mover advantage in doing 2-screen.

[itvt]: Are you also developing ITV services for the classroom?

Triff: Yes, we just did a very exciting pilot, which gave us a good indication of how teachers might want to use our content. The theme was "Westward Expansion." We took 2 Ken Burns' documentary series--"Lewis & Clark" and "The West"--and we indexed them fully. We then provided them to teachers in additional formats that adhered to national and state curriculum standards, so that they could actually--according to their curriculum's requirements--pull video clips and lesson plans associated with that video material. We think this is a big step, because it moves us away from a situation where teachers record a program on VHS, put it on a shelf in their library, and have to wheel in the VHS cart to the classroom to use the material. We want to deliver our content in a digital format, enabling teachers to quickly access the topic they want and integrate it into their teaching. The trial we just completed included a number of public television stations which developed local educational content that was associated with the curriculum topic addressed through the PBS program.

[itvt]: How did you deliver that content?

Triff: We delivered it in 3 ways, because we wanted to see which worked best: through a digital terrestrial datacast to a server right in the school that teachers could access on the PC, as a DVD, and through broadband.

[itvt]: And which medium did work best?

Triff: While educators across the board seemed to value the content package, every classroom has a slightly different infrastructure. So we learned that each medium had an advantage and a disadvantage to it: datacasting is fast, but it's a one-way medium. Broadband streaming--the Web--is truly a 2-way medium, but it's slow and it takes time to buffer. So there are a lot of trade-offs.

[itvt]: Would it be fair to say that PBS is still more interested in ITV as an educational tool than as a home-entertainment medium?

Triff: We recently got the results of a study we commissioned: according to Grunwald Associates, PBS is still the most widely used video resource in the classroom. It's an installed base, and we have tens of thousands of teachers who use our video and online multimedia resources that correlate to the programming. With respect to ITV, in the near term, we feel more urgency to develop a digital video service for teachers. And that's what we're focused on.

[itvt]: You don't think there would be a significant number of viewers who would like to have rich, interactive content over their home television set? So that, if you were watching the Lewis & Clark documentary, you could instantly access relevant background information.

Triff: As you know, PBS has been a pioneer in enhanced television from the early days. The market is still evolving, so I think it's too soon to tell. We have to move one step at a time. The stuff we're trying to do, it takes a lot of time. You really have to focus on platforms that are in place, and experiment, as it were, opportunistically. We just can't experiment on every platform. There's just not enough resources for that.

[itvt]: Lastly, I wanted to bring up the topic of PBS's counterpart in the UK, the BBC. The BBC has been heavily involved in digital television: they have a multi-channel strategy, offer numerous ITV applications with their programming, and have just launched a new channel, BBC3, that will feature interactivity on a consistent basis. Does PBS one day hope to offer as much ITV as the BBC does? Or is that just not feasible in the US, in the foreseeable future?

Triff: Well, the thing with the BBC is that it is a very well-funded service. We simply don't have that kind of federal support. And so, with a negligible number of ITV-enabled households, and limited federal support for this kind of thing, I don't think you're going to see much ITV on US public television until the market justifies it. However, as for a multi-channel strategy, yes, digital channels are an important area for us. We've been working on a business plan with respect to digital channels. In addition, we are finalizing our implementation plans for HD. At this time I cannot say anything about either publicly.

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