The Eye: Oil And Gas Co. Comes To The Rescue Of Online Channel Vidnet

VIDNET GOES PUBLIC: Who would've thought it? Not too long ago, many industry insiders were predicting the demise of Vidnet (www.vidnetusa.com), the fledgling online music video channel that, according to sources, was having financial problems. Now Vidnet has received its second wind‹by going into business with an oil and gas company. Stranger things have happened.
Vidnet's parent, International Net Broadcasting (INB), has struck an acquisition deal with Sedmet Exploration Inc., a publicly traded oil and gas exploration company. Sedmet will purchase INB, and the deal is expected to be finalized "within the next couple of weeks," according to a Sedmet spokesman. After the acquisition, Sedmet is expected to shift its focus to the online entertainment business.
Vidnet president Robin Wren says in an exclusive Billboard interview, "I normally don't do interviews with the media because I'm not into self-promotion like a lot of people in the music business are. But while many people were saying that Vidnet went out of business, we were quietly working behind the scenes on this deal. We've been approached by many investors‹including some of our competitors, who'd probably deny it‹to buy Vidnet."
Although Wren won't comment on Vidnet's reported financial problems, he is blunt about what the acquisition deal means to the Marina del Rey, Calif.-based channel: "We've partnered with people who have deep pockets and have the vision to take Vidnet to new levels. Right now we have nine people on our staff doing the work of 20 people, so we're in negotiations to expand our staff."
The past 18 months haven't been easy for Vidnet. It announced plans to launch in August 1997 but delayed until last March. In addition, Vidnet VP/GM Mary Ann Collins, one of the key people involved in Vidnet's launch, exited this past summer.
Wren says, "The reason for the delay was that we were compressing the videos ourselves, and the sound technology available at the time wasn't up to our standards."
He also responds to criticism that Vidnet's VivoActive Player is too cumbersome: "We wanted FM-quality sound from day one, so we compromised for better sound and lesser video quality. Vivo Software, which makes VivoActive, was bought by RealNetworks, so Vidnet will be using [RealNetworks'] RealPlayer G2 in the near future."
Several major labels refuse to service online video channels with promotional videoclips, and this has caused controversy among many in the online video business. Wren's view on this controversy is outspoken, to say the least: "I think the record companies that don't service online video channels are doing the right thing. I think they're being smart about who they go into business with. Why should they give free videos to every Tom, Dick, and Harry?
"The question is, Should the record companies or artists be compensated for a third party showing their videos? The old school says no, and the new school says yes. There may not be a lot of [Vidnet's competitors] who believe this, but I think we need to start leaning toward the new school if we're going to make any progress in building relationships with major labels."
Speaking of competitors, the online video channel field has gotten a little more crowded in the past year. Wren says what sets Vidnet apart from its competition is that "we don't have a lot of flash and distractions, like music news or contests. We're more interested in being the ultimate video site where you can see nothing but music videos."
LOCAL SHOW SPOTLIGHT: This issue's spotlight is on Phoenix-based jazz/AC/R&B show "The Breeze."
TV affiliate: Cox Communications Cable in Phoenix, Channel 22.
Program length: 60 minutes.
Time slot: 6 p.m. Mondays, Wednesdays, and Fridays.
Executive producer: Michael Kelly.
Fast facts: "The Breeze" was launched in 1993. "We play everyone from R. Kelly to Dave Koz," says executive producer Kelly. The program has won the Billboard Music Video Award for best local/regional jazz/AC show in 1997 and 1998.
Following are the top five clips for "The Breeze," for the week ending Nov. 27:
1. Gerald Albright, "You Are Everything" (Atlantic).
2. Lauryn Hill, "Doo Wop (That Thing)" (Ruffhouse/Columbia).
3. R. Kelly & Celine Dion, "You're My Angel" (Jive).
4. Janet, "Every Time" (Virgin).
5. Brian McKnight Featuring Tone & Kobe Bryant, "Hold Me" (Motown).