Intertainer Outsources, Trims Staff

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Video-on-demand supplier Intertainer Inc. is cutting back on staffing as it
outsources several distribution and marketing functions to outside
companies.

The company didn't confirm reports that upwards of 40 staffers were let go
this week, but president Jonathan Taplin said the cuts stemmed from three shifts
in strategy.

First, Broadwing Inc. -- an Internet-backbone company that owns Cincinnati
Bell -- will handle distribution of Intertainer's content to affiliates, Taplin
said.

Broadwing operates an 18,000-mile nationwide fiber backbone with an OC-192
switch. It also owns a streaming company, st3, which will handle Intertainer's
streaming needs.

Up until now, Taplin said, Intertainer would send a team of technicians to
deploy its own servers at Qwest Communications International Inc. and other
cable/telco installations.

Intertainer also developed and installed a new 'Digital Entertainment
Service' platform that makes its collection of meta-data and content management
more efficient, reducing the need for staff. 'Automation is a powerful tool,'
Taplin said.

And Intertainer plans to announce a national marketing partner soon to sell
its Internet-protocol service, which also will help to reduce sales and
marketing costs.

'I regret losing people,' Taplin said, but the new strategies, coupled with
Intertainer's recent wins with Adelphia Communications Corp., will help to push
the company forward.

With Microsoft Corp., NBC, Intel Corp. and others as shareholders, he added,
'We have plenty of cash in the bank.'

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