SPI’s Loni Farhi on Keeping Pace with Technology

NEW YORK: Loni Farhi, the president of SPI International, talks with TV Europe about keeping pace with technology in order to serve both platforms’ and viewers’ needs.

TV EUROPE: Tell us about SPI International’s growth.
FARHI: We started in 1990 as a content-sales company. We began attending MIPTV in 1987, and in those days we were collecting movies for video release in Turkey. Then we started to sell content to Portugal, South Africa and Greece. From there we jumped into Eastern Europe, and then in 1998 we started theatrical releases for the first time in Poland. From Poland we slowly but surely got into every Eastern European country, and since 1998 we have been one of the major independent theatrical distributors in the Eastern European countries. In 2003, we started launching channels and now we are operating more than 35 channels. Seven of them have worldwide distribution and we are adding another four in July, so we will have 11 worldwide channels.

TV EUROPE: What opportunities did you see and were able to act on quickly that maybe other companies did not see?
FARHI: When we were selling theatrical films, life was very good, television sales were fantastic and local content was not so important. Slowly but surely, local content became popular, and our foreign content started to find fewer and fewer time slots on free television. And even worse, broadcasters started to pay less and less, but for us, buying content was as costly as it had been before. We saw that a crunch was coming, and before it was on us, we decided to create channels and create a different path for ourselves than other theatrical distributors. We started very slowly in the Czech Republic and then we penetrated Poland. Today we own an entity called Kino Polska, which is the number one movie/TV series channel in Poland. It is doing very well and has become our flagship channel. On the trail of Kino Polska, we built six Filmbox channels that broadcast on basic, extended basic and premium levels that are available on all platforms.

TV EUROPE:How are you providing content to viewers on other devices?
FARHI: We have been in the thematic channel business since 1990 and our golden rule is that you earn money when you buy and own content, not when you just sell it. We knew how to buy it, and very early on we started buying rights for TV Everywhere. All our channels have rights to TV Everywhere. This made our life much easier. When people were just starting to understand where the industry was going we were already offering our channels in ways that can be exploited on any device. This allowed us to penetrate, in the last year and a half, more than 40 countries, and we are now operating from the U.S. to Thailand on 200-plus platforms.

TV EUROPE: You have also been developing apps.
FARHI: Filmbox Live is our main app, and on it you have movies, series, documentaries, fashion, fights, art films, extreme sports and music as part of a channel and as VOD. Filmbox Live will cater to everybody’s needs. People do not want to go from one VOD service to another; they want to click on the channel and be able to watch it, and with our app they will be able to do so. And of course they will have VOD access to thousands of hours and will be able to view whatever they want whenever they want, on any device.

TV EUROPE: Are you seeing any viewing trends emerging in the territories you serve? Any talk of cord-cutting?
FARHI: Each territory is different, and some countries are going a little ahead of the rest of the world, but eventually they are all going to meet at the same place; VOD is definitely going to take over, but I do not think this will happen overnight. Today, most of the viewers are still watching TV and getting their subscription from DTH or cable. This is what they are accustomed to and these habits are not going to disappear overnight. And, of course, huge media conglomerates are taking their precautions. They are preparing themselves in a very serious way with video on demand, or getting involved with mobile companies, either acquiring them, or offering their content to mobile entities. So we will see a lot of consolidation coming in the near future. All major DTH and/or cable platforms are trying to line themselves up with a major mobile entity. Cord-cutting is happening! At SPI, we are ready with our Filmbox and entertainment channels. Moreover, with Filmbox Live and other apps, we are ready to serve every type of platform: DTH, cable, IPTV, mobile, smart TVs, linear or VOD, Android or IOS, and more…. So far, we have always been able to see changes coming and adapt as quickly as possible. Now, our aim is to align ourselves with trendsetters and with companies that have major distribution capabilities.