Canoe Ventures LLC , the joint-venture founded by cable companies to change television forever is instead changing CEOs as its financial losses continue.
Canoe COO Kathy Timko is replacing David Verklin as the company's CEO and Canoe hasn't started looking for a permanent chief, a spokesman says.
Verklin, the former CEO of Aegis Media Americas, is leaving after more than three years at Canoe's helm. (See Canoe CEO to Step Down and Verklin Picked as Cable's Canoe Captain.)
Under Verklin's watch, Canoe delayed a plan to create targeted advertising and instead focused on a scheme that allows customers to press a remote button to request more information about advertised products. (See Canoe Mothballs Targeted Ad Product and Canoe Rows Toward Enhanced TV .)
Canoe now has access to a national interactive TV platform of greater than 20 million homes and Canoe Chief Technology Officer Arthur Orduna recently gave Light Reading Cable an update on what is next for Canoe:
Why this matters
Verklin's exit isn't a big surprise, but the move is an indication that the company is being pressured to show results in order to keep getting funded by its MSO benefactors: Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), Charter Communications Inc. , Cox Communications Inc. , and Cablevision Systems Corp. (NYSE: CVC).
A source familiar with Canoe says the JV is just starting to pull down some revenues but is not close to becoming profitable. Canoe wouldn't comment on its financial situation, but a spokesman noted that the J.V.'s board "is committed to the joint venture for the long-term" and is confident in Timko's ability to build the business.
Get caught up on Canoe.
- Cable's Canoe Adds Advisory Oars
- Canoe CTO: 'T-Commerce' Coming in 2011
- Canoe Experiments With VoD Ads
- Cable's Canoe Heads for Scalable Waters
— Jeff Baumgartner, Site Editor, Light Reading Cable