Interview Derk Nijssen founder and CEO of Xite The music video is back for good Xite is an interactive music It was a perceived lack of innovative ability There are plenty of interesting and promising We continuously develop our product and in the world of television that inspired Derk companies that develop creative products, our innovation activities take place both in channel that broadcasts music Nijssen to establish Xite in the Netherlands but they should really boost their level of the Netherlands and Poland. The decision to videos twenty-four-seven. Today in 2006. ‘I believe the television sector in international ambition. A good innovative offshore part of our technological development Xite is the only real music video the Netherlands should really embrace product always has the potential to be to Poland was made under the force of broadcaster in the Netherlands technological innovation in order to gain successful abroad if the necessary time and circumstances. Poland has more available international success. When we started Xite money are invested to bring it to the attention developers and programmers compared to after MTV’s switch to reality we put in all our technological and commercial of the international market. What’s more, the the Netherlands. Joining forces like this is a programmes and after The Box creativity about the future of TV. I strongly Dutch government should be more actively precondition for success in this market.’ and TMF ceased broadcasting believe in television and I certainly don’t involved in the development of technology in the Netherlands. The music regard it as a declining market. Yet, Xite is and should offer the necessary resources to Music Rights a new breed of cross-over companies and create a right breeding ground. This will help Innovation not merely applies to technology, channel was founded by Derk labelling Xite as a TV channel is only partly the Netherlands create a distinct profile in the but also to music rights, such as streaming Nijssen who previously owned true. Although we run a music channel, we industry.’ rights. Derk Nijssen: ‘Investing time and money Yarosa Entertainment; a company are a technology company at heart. In fact, in innovating the type of deals with the rights that creates and develops Xite combines technology and a collection of Product owners is another precondition for success in innovative music rights when offering music What makes Xite so unique and innovative? this market. Xite has a dedicated team focused interactivity for broadcasters videos to consumers on multiple screens, Derk Nijssen: ‘With Xite we offer the viewers on closing these deals. Arranging music rights all over the world. Derk Nijssen such as tablets, smart phones and, of course, of music videos the possibility to personalize is highly complex, both commercially and provides insight into the television.’ their viewing activities as they can harness legally. For us Sony Music, Warner Music preconditions for the success of the TV to suit personal viewing preferences. Group and Universal Music are the three Dutch media sector In addition to an on-demand system where most important parties we deal with, but Xite and gives his views on the Although Derk Nijssen takes the view that the viewers actively select a specific video, Xite each territory has countless indies we have to Dutch media sector and the future Dutch TV sector occupies a rather isolated also offers MyXite which is a personal linear sign contracts with to be able to offer a good market of visual content as a position in the world, he does recognize a viewing experience similar to the radio option library of music videos. We are ahead of the whole. positive image of the Dutch media sector as in Spotify. Viewers can watch videos selected competition when it comes to music rights a whole: ‘We have the necessary brainpower by Xite based on their tastes, but have the deals. This shows, for instance, in the fact that and entrepreneurship in the Netherlands. ability to skip to the next video if they choose we took care of the out-of-the-home media Iconic figures such as John de Mol contributed to. We believe that most viewers consume consumption as well. You have to be on top of to this positive image. However, Dutch media TV content in a passive manner, but must all market developments and continuously ask companies should better market their creative be offered the possibility to personalize that yourself how to exploit and source new music ideas internationally. content. rights.’ 11 PwC Entertainment & Media Outlook for the Netherlands 2014-2018 Strategy for growth ‘Successful technological and music right innovations result in high distribution volumes and the opportunity for international growth. Right now we are the biggest music channel in the Netherlands and Belgium. This year 6,5 million German households will connect to our service and we are also entering the French and American market. If we reach our targets we will grow from 7 million households to 40 million households by the end of 2014. It’s a ‘It’s just that the world snowball effect and once you start to expand internationally, distribution of your product behind that big screen becomes easier and faster.’ Future market has drastically changed.’ Derk Nijssen expects that major operators, such as KPN,UPC and Ziggo, will further strengthen their position in bringing content to the screen if they manage to keep pace with technological developments. He also foresees merger and acquisition activity in the the US, for instance, has a dominant position in the living room we call television. further developing the interactive experience world of internet and TV. ‘Companies in the with regard to infrastructure and has valuable It’s just that the world behind that big screen of personal linear TV remains very promising. online segment, such as Google, will pursue client relations, including the accompanying has drastically changed. Still, passively taking Despite the imbalance between the limited mergers and acquisitions in the TV market. contracts. iTunes, on the other hand, has a lot in content will remain. All these different number of music videos compared to the Apple TV, although technologically advanced, of valuable content but lags behind when it screens provide in a specific need of the available music tracks, I wouldn’t be surprised lacks the necessary content. If they want to be comes to product innovation.’ consumer. Mobile content is more like an if, for instance Spotify, would include video successful they will have to invest in content informative snack, whereas using a tablet is content as well. Together with Spotify, Xite has as well as the accompanying copyrights and Viewing habits more active, as the user is actively searching made a documentary style programme called a strong client base by acquiring mass media ‘In ten years’ time each household will have for that particular music video in the on- Tastemakers in which famous people talk companies in the TV domain. Cable operators even more screens to watch content, but demand database. On-demand music video about their taste in music. Joining forces in could be interesting partners. Comcast in I think there will still be that one big screen content is also relevant on the TV screen, but such partnerships is crucial.’ Interview 12.