November 27, 2006 in Business

A new recipe for success

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NEW YORK — Shortly before dinner at a trendy new restaurant in New York’s theater district, a production crew started setting up. They arranged lights, checked the cameras and put a microphone on the sushi chef Masatoshi “Gari” Sugio. Soon they would be filming at the Sushi of Gari 46 and interviewing the famed chef.

But this was not a segment for NBC’s “Today” show or the Food Network. This slick production was for the Internet, and the company behind the filming was LX.TV Lifestyle Television.

The fledgling network is one of the first to solely produce original content for broadband distribution on the Internet, instead of adhering to the traditional business model of making high-quality programs for television.

The company’s early success in attracting a high-profile sponsor and eyeballs is yet another example of the power of online video in an Internet world dominated by sites like YouTube.

But in LX.TV’s case, the video appears on its Web site and is syndicated elsewhere on the Internet.

“It’s kind of the opportunity Ted Turner had in the ‘80s when cable was starting,” said Chief Executive Joseph Varet, 31. “Cable networks were able to erode a lot of market share viewing time from broadcast networks because they were more focused and specific. Now broadband economics allow us to be even more focused. So, in theory the idea is we can be even more relevant and so therefore we can erode from the cable networks.”

LX.TV’s Web site explores everything from the hottest nightlife and spas to swank stores. There are also pieces about drinking Scotch and collecting art, along with interviews of entertainment personalities such as Tim Gunn of “Project Runway” and Bonnie Fuller, editorial director of American Media Inc.

So far, it appears LX.TV has gotten off to a promising start, inking an advertising agreement with Absolut vodka.

The company has also struck a deal with NBBC, the syndicated broadband division of NBC, to distribute its programming. Other major broadcast companies have approached them, said Morgan Hertzan, 30, LX.TV’s chief creative officer and executive producer.

That is not the normal approach. Typically, networks broadcast their programming on TV and then put it online to attract viewers.

Traffic to LX.TV has steadily increased. Last month, 65,000 unique visitors landed at the site, up more than 100 percent from the previous month.

While the company has generated some media buzz, the primary reason behind its early success appears to be the stylish programming, done on Apple computers in the network’s small offices in New York and Los Angeles at a fraction of the price it costs television networks.

“The reason why we’re doing well is because our stuff looks good,” Hertzan said. “Our stuff needs to look good.”

The shows on LX.TV are geared toward attracting the company’s target demographic: People between the ages of 25 and 49 earning $100,000 or more a year — a group that spends more time on the Internet than watching television, Varet says.

The segments are far from heavy-hitting, but that’s not a problem when viewers are simply looking for “instant satisfaction,” said Karine Bakhoum, president of the food consulting business KB Network News, who has advised clients to work with the network.

“This is the future,” said Bakhoum.

One of the more popular series revolves around food, where visitors can dive into a restaurant and inspect the interior, see the menu and meet the chef, providing a visual component that print and even traditional Web sites can’t easily match.

“A reporter talking about a subject is not compelling TV,” Varet said.

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