When Itzhak Elyakim talks about the technological advances he has helped implement at yes, Israel’s only satellite digital pay-TV broadcaster, he tells a story of growth and innovation. This is to be expected because as a co-founder of the company, VP of Engineering and CTO, he has played a major role in transforming Israel’s pay-TV business landscape.

Elyakim has a BSc in Electronic and Computer Engineering from Ben-Gurion University of the Negev and a Master’s in Engineering from The Technion, Israel Institute of Technology in Haifa.

When he talks about yes his narrative is laced with superlatives. The short version of how he views the company: “Yes is the pioneer and leader in shaping the entertainment and leisure experience in Israel and it is leading Israel’s multi-channel digital TV platform revolution.”

What does he mean when he talks about yes leading the TV revolution in Israel?

“We were the first digital broadcaster in Israel and we led the way for multiple movie channels,” he explains. “Before yes entered the market, the cable monopoly offered only one movie channel, and one series channel. We now offer a wide selection of both Israeli and imported films on eight different channels and three series channels. “

Yes has been on air since July 2000 and currently has more than 540,000 subscribers. “We broadcast more than 150 channels,” Elyakim says, which includes video, interactive, radio and music. He says the company currently has 2,200 employees. Their turnover in 2006 exceeded NIS 1.34 billion ($350 million).

In addition to content, Elyakim is also proud of yes’s customer service – not only because they offer service 24/7 – but also because independent research has shown it to be the most effective in Israel.

Of course there is more. “We were the first in Israel to let subscribers pay for individual channels, rather than forcing them to pay for channels they don’t want. We also offer advanced navigation featuring portals for news, sports and interactive applications. The fact is, we try to remain focused on what our subscribers want,” he says. “This includes the introduction of hundreds of hours of original Israeli content.”

‘Surprising experience’

Part of the yes mission statement is to “provide a surprising experience for viewers.”

“In the past few years yes has introduced a number of content innovations as well as technological changes that have been developed along with NDS, our technology partner,” he says. Most of these new applications easily fit into the category of ‘surprising.’”

“One of the most impressive changes we’ve made in the past two years is the introduction of widescreen viewing. This is a huge improvement over traditional broadcasting,” he explains, “because when a movie is broadcast to a regular TV screen you’re really only seeing about 56 percent of what is originally there.” The result is that you often have dialogue between actors who don’t appear on the screen, or essential parts of the film are concealed.

In addition to wide screen viewing, “we’ve taken another major step forward with the introduction of Dolby digital sound.”

Another of their innovations is aimed at ensuring viewer satisfaction. “We’ve developed an application using the NDS Audience Measurement System (AMS) which every morning gives information to our content people about the ratings for the previous evening.”

DVR and VOD

To help plan for its business in the future, two years ago yes began introducing a hybrid box that combines satellite broadcasting with IP. “The first service we developed was VOD using ADSL lines. The major challenge we faced was creating a service that was easy to use while also being economically feasible for both our subscribers and for yes.”

Yes decided to expand existing systems rather than build a new headend. On the STB side they added an IP tuner to the existing STB architecture. “All new STBs delivered to our customers since 2005 are IP-enabled,” he says.

Elyakim says that they worked with NDS to solve a number of technical challenges. “For instance, we had to decode the video used for our VOD application using the same smart card that is used for satellite broadcasting. Basically we extended our existing system to support the IP environment,” he explains.

“While we were developing these applications, there were people who didn’t think it was technologically possible. That’s where it was important that we had partners like NDS who not only had the motivation to help us but they also had faith in our vision.”

“This concept is a real pioneering effort. As far as I know we have the world’s first operational system that can offer both satellite and VOD. Relatively early on in this process we understood the possibilities that hybrid STBs could bring to our subscribers.Today we’re ready to provide VOD over ADSL but the regulators haven’t approved the service yet.”

Yes Max: Subscribers love it

“When we first introduced yes Max, our DVR, the service was relatively expensive,” Elyakim says, “so we dropped the price several months ago. Since then the number of installations has tripled.”

The result has been predictable, he says. “DVRs fit right in with our vision of exciting our customers. One of the common complaints pay-TV viewers used to have is that there were lots of channels but there was nothing they wanted to watch at a given time. DVRs have changed all that,” Elyakim says. “Now they try to figure out when they’ll have time to view everything they want.”

In addition to the technological “wow” factor that DVRs give their viewers, they are based on an important principle, he explains. “Using the NDS DVR we provide a service that is very user-friendly, easy to use – and fast.

"It’s not surprising that our viewers love yes Max,” Elyakim says, adding that a recent survey indicated that 70 percent of their subscribers use their DVR on a daily basis. “This is a huge advantage. It virtually eliminates churn.”

Developing the vision

“As a technology expert with a telco background it was clear to me for the last decade that subscribers wanted more from their pay-TV broadcasts. That was what led us to introducing hybrid DVRs,” he says.

“NDS was involved in helping us develop our vision every step of the way,” he says. “They stood shoulder to shoulder with us in our development and they believed in our direction. We didn’t just choose hybrid technology because we liked it. This was the most cost-effective solution for our needs and vision.”

“NDS recognized our direction and helped us succeed,” he says. “It’s important to point out here that our success was not a foregone conclusion.

NDS helped us become the first to implement and integrate applications for hybrid boxes. Their belief in what we were doing, along with their willingness to introduce new concepts – helped us realize our dreams.”

Future business models

What direction does Elyakim see yes taking? “Our vision is to offer on-demand services as an extension of our platform, not as a standalone service,” he says. “As for using hybrid DVRs, we see them as a natural expansion of our offering.”

“What we’re really aiming for is a unified user experience for all environments,” he says. “The fact is our subscribers don’t really care about the source of their programming. It doesn’t matter to them if it’s ADSL or satellite. What’s important to them is they get the best programming possible.” And he believes that’s how it should be.

“Our future has to include new business models,” Elyakim continues. “That’s why we’re working to foster the convergence between the PC and TV worlds. We expect the proliferation of home networks to offer new directions and business opportunities.”

Wide screen viewing, locally produced programs, overnight ratings and a complete change in what viewers think of yes programming now that they have introduced their hybrid DVR. Not bad for a broadcaster that has been on air for seven years.

As for the future, if Itzhak Elyakim has anything to say about it, yes will continue exciting their viewers. Stay tuned. You’ll be glad you did.