XTV Ships; Users Are Tuning In

WOODLAND HILLS, Calif. — David Koenig, owner of XTV parent company Holio.net, told XBiz that in the weeks since the product started shipping, XTV has had less than 1 percent tech support and service calls, has launched three separate affiliate programs and is on the verge of closing distribution deals with British, Canadian and Australian firms.

On March 18, XTV Inc. shipped more than 2,000 adult TV set-top boxes to subscribers who pre-ordered the service during the product’s soft launch.

On the day the service went live, David Koenig, owner of XTV parent company Holio.net, told XBiz, “We have 16 or 17 libraries with over 30,000 videos, and we just added Zero Tolerance, Third Degree and Sean Michaels.”

Koenig added that the most watched channel on the first day of service was “the midget channel.”

XTV works with broadband connections to bring viewers a plethora of adult titles and interactive content. The set-top box comes with a remote control and operates with a digital high-quality signal, providing pay-per-view adult films from studios such as Private, Legend and Filmco, as well as content from Pornholio Interactive.

According to Koenig, the system is totally dynamic, meaning XTV can automatically customize the user experience based on a subscriber’s viewing and purchasing preferences. In other words, if a subscriber tends to watch amateurs and lesbians most frequently, those will become the first two channels on his system.

“We’re doing what Direct TV should have done years ago,” Koenig said. “We want to make this the perfect experience for the user.”

Since going live, XTV has launched invitation-only affiliate programs for webmasters, content providers and retailers. Koenig said has contracts out with several foreign retailers, including one UK retailer that has 9,000 stores. For each XTV box the retailer sells, it will receive a flat fee as well as a share of the revenue generated for the life of the subscription.

Koenig told XBiz his company also will begin shooting hi-def, hardcore infomercials for Doc Johnson toy products by the end of April. The 30-minute spots will feature “top actresses” using Doc Johnson toys with on-screen “Buy Now” buttons. Users will be able to choose from a number of shipping options, including next-day delivery.

“This is completely unregulated TV,” Keonig said. “Anyone can advertise anything and sell directly to consumers.”

The company has not done any additional marketing during what Koenig has termed the beta period but plans a full-scale ad campaign and marketing blitz that includes commercials on Howard Stern’s radio show, late-night infomercials and visits to college campuses, where XTV will give away set-top boxes to fraternities.

XTV boxes cost $180, with monthly subscription fees of $29.95.

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