Published in The Australian, June 13 2002

WHILE the Government continues to mull over rules for digital TV and datacasting, one Sydney company has been quietly experimenting with its own version of internet TV.

Based in a combined office/studio in Milsons Point, BananaTV broadcasts an eclectic range of short programs on specialised topics such as genealogy (Teapot Genie), caring for your pets (Doggy Dos and Don'ts) and making it as a pop star (Mosh Pit). "We've bypassed all the regulatory problems," says managing director James Vernon of the venture, which began broadcasting in November last year. Using the net for broadcasting also means viewers can choose when they want to watch individual shows.

A veteran of the film production business, Vernon first had the idea for BananaTV in 1999. His original plan was for a more conventional operation modelled on broadcast TV.

"We were a fortunate victim of the dotcom crash," he says. Seeing how youth-oriented broadcasting sites such as K-Grind had collapsed despite extensive funding, the company changed its focus. In order to build an audience, Vernon decided to create programs around topics that already had dedicated followers.

"One of our principles is we try and have shows that have an established network," Vernon says. "In genealogy, for instance, if you can get noticed on around 10 main websites, there's a huge potential audience." Similarly, Vernon seeks out presenters with expert knowledge to reduce research requirements.

Keeping costs down remains a key focus: the company runs with just four permanent staff, including Vernon and his daughters, Kim and Kristy, who handle all the production and editing work.

Costs aside, the biggest perceived hurdle for broadcasting TV-style programs via the net has been the lack of broadband connections in Australia.

However, Vernon says that more than half the network's viewers use slower dial-up connections.

BananaTV's most successful show to date has been Battling Big Brother, where former Big Brother contestants Ben Williams (last year's winner) and Peter Timbs comment on the progress of this year's housemates. Indeed, reality TV has been, in Vernon's words, "fertile ground" for the company. It ran a weekly commentary on Survivor (also hosted by Timbs), and is planning a series presented by Survivor contestant Joel Betts. For the most part, however, Vernon wants to create shows with a longer shelf life, based on entertainment or lifestyle topics.

The company doesn't want to issue specific viewer numbers yet, but says that if the current growth rate of 30 per cent month-on-month is maintained, it will reach its target audience size of 100,000 by the end of the year. That suggests the current audience is somewhere between 15,000 and 20,000 viewers.

Because there are no restrictions on accessing the site, about 25 per cent of visitors are from overseas. "It's our intention that BananaTV become a global TV network," says Vernon, who foresees a time when the network may also use shows from by outside production companies.

But where will the revenue to buy those shows come from? Current BananaTV programs feature a brief "ad break" during the first minute, but no actual advertisers. Vernon says the company will begin selling advertising "some time between next week and the end of the year". As programs get longer (a typical BananaTV instalment is seven to 10 minutes in length), the number of ad breaks will also increase.

In the meantime, BananaTV is relishing being able to create shows rapidly. When BananaTV recently decided to produce a commentary show on the World Cup, just one week passed between the initial idea and the completion of casting