French media group TF1 has announced that its operating profits for the first
nine months of 2003 are up 16 per cent. The Group's consolidated revenue grew
by four per cent to E1,994 million and it is maintaining its annual growth forecast
of two to three per cent for advertising revenue and of four per cent for total
operating revenue.
At the end of September, programming costs were down 1.9 per cent to E625.5
million and TF1 confirmed its guidance of a decline of about three per cent
of programming costs for the full year 2003.
TF1 group's operating profit reached E254.6 million, which represents a 12.8
per cent margin on total operating revenue.
Consolidated net debt stood at E474 million, or 57.9 per cent of shareholders'
funds. On November 12, 2003 TF1 issued a E500 million bond, with a repayment
date 2010 and a 4.375 per cent coupon. This bond issue will allow TF1 Group
to diversify and extend its financing sources. Back to top '3'
needs another E2bn
Hutchison's '3' mobile service may need a further E2 billion of funding because
of handset delays, says the company.
Frank Sixt, finance director, told the FT that the delays in delivery of handsets
for their services in UK and Italy will increase its funding requirements. The
delays have meant scrapping targets for two million subscribers by the end of
2003.
He said the company had secured funding of E13 billion against a budgeted spend
of E18 billion, but admitted that figure may now rise to E20 billion. Sixt said
the additional money would come from cost cuts and the debt market. He also
said '3' would be looking to its suppliers for discounts following the delays.
NEC, in particular, had been due to supply 1m units into the UK market by end
of 03, but has been dogged by software problems with the latest models. Back to top Russia
adopts Europe's DVB
Russia will adopt DVB (Digital Video Broadcasting) as its national standard
of digital television. The decision was announced by the Telecommunications
Ministry.
"On the basis of standard developers' analysis of digital TV systems that are
currently operated and have passed international standardisation, results of
pilot studies and domestic experience of digital ground-based and satellite
TV broadcasting using all standards suggested, Russia gave preference to the
European digital TV system, DVB," the Ministry said in a statement. Back to top FCC:
News Corp/DirecTV approval
News Corp's proposed takeover of DirecTV, should be approved with certain conditions
by the Federal Communications Commission, says its executive.
The Department of Justice and the FCC have been reviewing the proposed deal
for public interest and antitrust concerns since News Corp reached agreement
with General Motors in April to buy DirecTV.
The FCC secretariat backed the $6.6 billion deal provided DirecTV more quickly
offers local over-the-air broadcast channels to its customers, and if an arbitration
mechanism is set up to handle disputes between News Corp's Fox broadcasting
arm and cable television companies.
The arbitration is designed to alleviate concerns Fox will pull its network
programming off cable systems to encourage viewers to subscribe to DirecTV.
There are also concerns that News Corp could force smaller operators to accept
higher programming costs by using the threat to pull programming.
Michael Powell, FCC Chairman, who is said to be hoping to approve the deal before
December 19, must obtain the support of two of four other commissioners, who
are currently reviewing the staff recommendation. Powell could still be forced
to accommodate changes requested by other commissioners in order to ensure approval. Back to top Sky
slashes iTV ad rates
In a move to encourage the interactive TV advertising industry pay TV satellite
operator BSkyB has slashed the price of campaigns by almost a third, according
to a report in New media Zero.
The new pricing policy will come into effect from the start of the new year
in a move which the satellite giant anticipates will further drive take up of
the medium by big name advertisers.
Sky says the time is now right to encourage new advertisers to enter the market
and for those that have already tried to experiment with larger, longer-running
interactive campaigns. Back to top Spain
investigates Sogecable TV Film Rights
From David del Valle in Madrid
A Spanish competition watchdog is looking into dominant pay-TV company Sogecable's
exclusive deals with major Hollywood film studios.
The probe follows a complaint last year by cable company ONO, which claimed
that exclusive rights contracts between Sogecable, owner of digital DTH platform
Digital Plus and pay-TV channel Canal Plus, and several Hollywood studios were
in breach of competition rules.
The Service for the Defence of Competition is investigating the contracts meet
and whether the Hollywood studios are imposing excessive conditions on Spain's
audiovisual market, from a competition point of view.
Sogecable, with 2.4 million subscribers, recently announced its nine-month loss
more than doubled to E143.76 million as it was hit by extraordinary costs for
its merger with satellite TV rival Via Digital. Back to top Vodafone
to buy out partners?
Vodafone CEO Arun Sarin said that it has been within Vodafone's strategic thinking
to gain full ownership of its subsidiaries for some time, according to reports.
Earlier this week, the company offered to buy out minority shareholders in its
Greek unit.
Regarding its Italian subsidiary, Sarin said: "We would be very happy to buy
Verizon's stake in Italy at a reasonable price." Verizon has a 23.14 per cent
stake in Vodafone Italy.
He also said that he would not rule out buying the whole of the French media
group in order to get his hands on SFR, the mobile operator controlled by Vivendi.
Sarin told a Foreign Press Association meeting in London: "This [a takeover
of Vivendi] is not our first preference, this is not our second preference .
. . [But] I can't sit here and say to you that we are willing to rule that option
out."
Additionally, he said he is open to offers that match Vodafone's valuation of
Arcor, its fixed-line business in Germany.
Asked about new market entrant '3' UK, which is majority-owned by Hutchison
Whampoa Ltd, Sarin said the operator has missed out on gaining a competitive
advantage. 3 UK has struggled to gain a foothold in the region since launching
earlier this year. Vodafone will launch 3G services in Europe around September
or October 2004, depending on quality and volume of handsets, he said. Back to top Ofcom
to hold public hearings on its funding
Ofcom, the UK media super-regulator, is considering holding unprecedented public
hearings on the future of broadcasting.
The purpose of the Consultation Document is to set out Ofcom's proposals on
the charging principles for Broadcast licences under which Ofcom will be funded
for the interim period between 29 December 2003 and 31 March 2004. Ofcom's proposal
is to allow the existing licence fee tariffs to continue for the first three
months of 2004, as is the case for Networks and Services licensees.
CEO Stephen Carter believes the hearings will underline a new transparency in
regulating television, radio and telecommunications. Although Ofcom will not
be formally constituted until December 29, Carter, former MD of cable operator
NTL, has set the terms for a review of public service broadcasting, appointed
a senior legal team and launched a consultation on spectrum trading.
Carter says: "We want to take a fresh look at regulation, whether in television
or telecoms. There are 11 market reviews taking place and we have to manage
them." Back to top AVC
satellite service targets UK broadband 'have-nots'
From Geny Caloisi and Colin Mann in London
Digital network installation specialist AVC and satellite operator SES Astra
have teamed up to provide nationwide, one way internet-via-satellite access
for the UK market. The service - targeted at the 29 per cent of households who
do not have access to terrestrial broadband services - will be launched in January.
The company is offering an entry level 256Kbps service for £26.99 per month,
a £34.99 per month 512Kbps service and top speed 768Kbps access - 15 times faster
than normal dial-up connection - for £43.99 per month.
AVC Broadband uses the regular phone line and modem for the return path and
capacity on the Astra craft located at 28.2¾ East to allow high speed downloading
or browsing. Customers will be allowed to retain their existing ISP and e-mail
addresses. AVC is hoping to sign up 80,000 households in the first year, but
it remains to be seen if the demand for broadband will justify home users paying
from £26.99 a month plus the ISP connection, around £15.99 per month for flat
rate unlimited ISP access. Despite this, AVC director John May claimed "there's
a big market out there, especially in the rural community," and warned that
there was the risk of creating a digital divide in the UK.
Customers will also have to pay a further £249.99 for installation - which includes
a mini dish, quad LNB, broadband USB satellite modem, software and cabling -
and an additional £29.99 connection charge. Transmitting from the same orbital
positions as Sky TV, existing Sky customers will be able to use their original
dish, only needing the LNB and ancillaries. Options also include self installation.
Those customers who do not already subscribe to a Sky package will be able to
receive a package of digital TV and radio channels broadcast free-to-air via
Astra, which can be viewed on the PC and stored on the machine's hard disk.
Other features include e-mail alerts and digital teletext. The company has no
plans at present to co-market the service with Sky. Back to top Irdeto
partners with China's Nantong
Irdeto Access, provider of content protection solutions, announced a licence
agreement with Nantong Telecommunications & Broadcasting Media Digital TV Corporation
for the delivery of its large-scale conditional access (CA) system Irdeto PIsys.
Nantong CATV will deploy Irdeto PIsys to establish a digital TV platform to
support an initial 100,000 subscribers and 5,000 smart cards in Nantong based
in the Jiangsu Province in China. Irdeto PIsys, which simulcrypt with DTVIA,
a local CA vendor, will be officially launched by this year-end. Back to top ITV
announces senior executive appointments
UK broadcaster ITV confirmed a number of senior executive appointments.
Director of ITV Sales will be Gary Digby (currently Sales Director, Carlton
Sales). He will report to Graham Duff, Managing Director designate of ITV Sales.
Finance Director, Group Finance and Strategy, will be Neil Canetty-Clarke (currently
Finance Director of Granada Broadcasting & Enterprises).
Finance Director, ITV Broadcasting, will be Mike Green (currently Deputy Group
Finance Director, Carlton Communications Plc and Finance Director, Carlton Television).
Finance Director, Granada Production, will be William Medlicott, (currently
Chief Operating Officer Carlton Content).
Finance Director, ITV News Group, will be Mike Fegan, (currently Granada Director
of Financial Control). ITV Director of Treasury will be Charles van der Welle,
(currently Carlton Communications Plc Head of Treasury).
All of the senior finance executives will report to ITV plc Finance Director
designate, Henry Staunton.
ITV plc Company Secretary will be James Tibbitts, (currently Granada Director
of Investor Relations and Treasury). James will report to Graham Parrott, Commercial
Director designate of ITV plc. Back to top Plenexis
inks deal with Hughes Network
Plenexis, European satellite telecommunications service provider, is to supply
a broadband satellite network solution using Hughes Network Systems Europe's
Direcway.
Italy's government is set to pass a controversial bill that it portrays as a
boost to competition in the media sector but which its critics say will benefit
the business empire of Silvio Berlusconi, prime minister.
The bill has been the focus of opposition discontent because it offers an opportunity
for Fininvest, the Berlusconi holding company, to increase its share of the
national advertising market. It eases restrictions on the cross-ownership of
broadcasting and print media, giving Mediaset, Berlusconi's media company, the
chance to expand in the Italian newspaper market.
In addition to his control of Mediaset, which is Italy's dominant commercial
television company, Berlusconi wields indirect control over Rai, Italy's state-run
broadcaster. The three Mediaset channels and three Rai channels attract about
90 per cent of Italy's television audiences. Lucia Annunziata, chairwoman of
Rai, said that she intended to resign as soon as the bill was passed by parliament.
But Maurizio Gasparri, communications minister, says one of the bill's main
purposes is to regulate Italy's emerging digital terrestrial television market,
giving an opportunity for more companies to compete. Back to top France
cable: latest figures
From Sotires Eleftheriou in Paris
As of 30 September 2003, a total of 3,664,444 homes in France subscribe to at
least one service from a cable operator, according to AFORM, the association
of cable and multimedia service operators.
The growth is not massive, just 2.4% in one year. The number taking a pay TV
service via cable stands at 3.48 million, about the same as the two satellite
platforms combined, but growth has been only 1.8%, considerably less than the
growth in subscribers to the satellite platforms. Around a quarter of the cable
subscribers receive their TV in digital form.
Broadband Internet via cable, on the other hand, grew strongly, by 39.3% to
reach 348,295. AFORM points out that while the pay TV market is in a relatively
stagnant phase, the year end is looking very hopeful for cable: new TV subscribers
in October (i.e. after the end of the period concerned by the figures just announced)
were 25% up on October 2002, and broadband sales were 45% up.
The leading operator is Noos, with 1.1 million subscribers, followed by France
Telecom Cable (847,682 subscribers) and NC Numericable (Canal Plus group) with
798,488 subscribers. NC Numericable had the largest growth in subscribers, 6.1%
over the year.
The full breakdown of figures for each operator and each type of service is
available on the Aform web site, www.aform.org Back to top Viacom
considers Blockbuster sale
Viacom is said to be considering a sale of its Blockbuster subsidiary as the
video rental chain continues to struggle with declining demand and the growth
of DVDs.
Viacom is considering selling its 86 per cent shareholding in Blockbuster to
a consortium of private equity investors which includes Thomas H Lee, Blackstone
and Quadrangle say US press reports. Although it is not certain a deal will
be agreed, the talks suggest Viacom executives are ready to part with a business
which, despite its long-term decline, still accounts for a significant part
of its cash flow.
In the 1980s, Blockbuster transformed the video-rental business through its
strategy of stocking numerous copies of the latest hit films. However, the rapid
penetration of DVD players, and consumers' willingness to buy rather than rent
movies on DVDs has led to a decline in the company's business. The recent arrival
of video-on-demand services from cable providers is expected to further erode
its market.
The deal would require a significant cash investment. By midday in New York
yesterday Blockbuster shares were down 13 cents at $17.10, valuing the company
at more than $3bn. Back to top Freeview,
no free lunch for BBC
BBC Two has admitted that increased competition from with Freeview channels
has hit ratings. Research suggested BBC Two lost 8.4% of viewers in the ABC1
social demographic categories year-on-year. "Freeview has increased the competition
in what was already a very competitive marketplace," the channel said. Back to top Gemstar
licenses DirecTV for IPGs
Gemstar-TV Guide International, Inc. and DIRECTV announced a licensing and distribution
agreement for DIRECTV to utilize Gemstar-TV Guide's intellectual property and
technology, as well as its TV Guide brand, in interactive program guides across
its subscriber base.
The agreement DIRECTV can use Gemstar-TV Guide intellectual property and technology
in its own IPG or in alternative IPG products supplied to it by its vendors,
beginning in January 2004. Under the agreement, Gemstar-TV Guide will receive
fees from DIRECTV rather than continuing to receive fees from DIRECTV's set-top
box suppliers.
"Partnering with Gemstar-TV Guide is a natural step for DIRECTV to take, because
our customers are accustomed to having access to the most advanced and compelling
television technology, coupled with the widest array of entertainment programming
available," said Roxanne Austin, president and COO, DIRECTV, Inc.
In the first quarter of 2004, DIRECTV will launch the TV Guide Channel on its
"Total Choice" tier, which is its most widely distributed programming package.
TV Guide Channel combines entertaining and informative television guidance and
original programming. With its vast library of interviews and exclusive behind-the-scenes
access, TV Guide Channel provides viewers with a rich array of program information
and recommendations to help them make the most of their television experience.
Back to topRobinson
quits Disney
Paul Robinson,
the managing director of Disney's television channels in the UK and worldwide
head of strategy for its ABC cable network, has resigned after five years
with the company. He has overseen the expansion of Disney's satellite and
cable portfolio from one channel to four and also brokered a deal with Capital
Radio to launch joint-venture radio station Capital Disney. Most recently
Robinson planned the launch of 'Daytime' on Freeview, a general entertainment
channel, widely seen as Disney's first attempt to branch out into the mainstream
outside the US. Robinson's departure coincides with the arrival of Andy Bird,
the well-respected former head of Turner Broadcasting International as president
of Walt Disney International. Back to top
Humax:
OpenCable Set Top Boxes
Humax has developed a complete product line of OpenCable compliant products.
Wind River Systems, Inc. the embedded software specialist announced that Humax
has used its platform for developing its first products for the OpenCable standard.
The OpenCable initiative from Cable Television Laboratories, Inc. drives the
goal of helping the cable industry deploy interactive TV services to consumers,
through the use of a standard hardware and software platform specification.
These next generation set tops are the foundation for cable television service
providers to provide advanced interactive television, embedded Internet Protocol
data connectivity, as well as a retail channel for set top hardware availability.
OpenCable based set top boxes are expected to be deployed beginning next year
by service providers in Korea and North America.
Humax has developed a complete product line of OpenCable compliant products.
The OC-1000 is a cost-effective basic digital set-top for entry-level buyers.
The OC-2000 enables 2-way return channel connectivity enabling service providers
to deploy more advanced interactive television applications. Finally, for consumers
looking for both data networking and interactive television, the OC-2500 embeds
a fully functional DOCSIS 1.1 cable modem. This broad line up of cable set tops
allows service providers to deploy interactive TV and data services in stages,
while allowing consumers to choose the set top based on their feature and functionality
needs.
The European Commission said that antitrust "charges" against English football's
Premier League following its sale of television rights to British Sky Broadcasting
were imminent.
Brussels, which has long been concerned about BSkyB's grip on the UK pay-TV
market, will be sending out additional charges to the formal "statement of objections"
the Commission passed to the Premier League last December. The new statement
will deal with the Brussels authority's concerns at the Premiership's bidding
arrangements, in which BSkyB won all the live television rights in four separate
auctions last August in a £1 billion (E1.4 billion) deal.
The BskyB and the League will have two months to respond after the filing of
the objections. Back to top French
broadcasting budget approved
From Sotires Eleftheriou in Paris
The French upper house, the Senate, has voted through the Communication budget.
At the request of the Minister of Culture, the breakdown of the budget has been
changed, taking into account the expected income from the licence fee (or audiovisual
tax as it is known in France).
On a total budget of just over E2.5 billion, E1,537 million goes to France Televisions,
E471 million to Radio France, E53 million to RFI, E208 million to RFO, E194
million to ARTE, and E70 million to the National Audiovisual Institute.
A few days previously the Senate had adopted a controversial measure by which
pay-TV operators (e.g. satellite or cable, but also ADSL is also covered, because
the text refers to any service that makes use of a decoder) are now obliged
to communicate their list of subscribers to the licence authority, in an attempt
to stem the level of fraud.
The government expects this measure to bring in an extra eight per cent in revenue.
It has long been obligatory for TV retailers to declare sales of TV sets to
the licence authority, but many people get round it by giving the address of
an elderly relative who are exempt. Back to top Spain
softens TV cross-ownerships limits
From David del Valle in Madrid
The centre-right Government has modified again the 'Private TV Law' to soften
cross-ownerships limits. Through an amendment to the Budget Law, the Spanish
Administration is to allow a single partner to hold stakes, up to five per cent,
in two different TV companies with a nation wide coverage, a possibility that
was prohibited so far by the original 1988 'Private TV Law.'
The Government has also changed the ownerships limits between local and national
TV stations. A partner in a nation wide TV channel will now be able to become
a shareholder in a local or regional station whenever the reach of the local
or regional channel does not exceed 20 per cent of the population, that is to
say eight million people.
With this amendment, the Spanish Administration stepped back from the decision
it took a year ago, to prohibit national TV channels from participating in local
TV stations, to the detriment of largest media groups like Prisa and Vocento
that had been investing a lot in local TV channels.
Now, it has lifted this share restriction but at the same time forces these
largest media groups to divest some of their local TV interests as they currently
reach more than 20 per cent of the Spanish Population.
As for local DTT, the Government has extended the analogue period for local
TV channels allowing them to broadcast in analogue until 2006 when they will
have to transmit in digital. Back to top Foxtel
and Austar to roll out 'unhackable' smart card
From Will Adams in Tokyo
Australia's two-largest pay TV providers will simultaneously roll out a smart
card they claim that pirates will be unable to hack, replacing nearly one million
subscriber cards by April 2004.
Market leader Foxtel and second-ranked Austar will each invest in Irdeto Access
Version 4 smart cards at the same time, as well as upgrading their subscriber
equipment. Although Australia does not have the endemic piracy that afflicts
Asian pay TV operators, the industry in Australia believes that it loses several
million dollars a year to pirates.
Under the plan, Foxtel and Austar will each swap around 400,000 subscribers
cards, with the plan to complete the process by April of next year. Austar and
Foxtel serve rural urban Australia respectively, and have joint advertising
and program-making operation, which explains the close cooperation on the anti-piracy
initiative.
"If we only made our system more secure there could still be a chance that pirates
could get into Foxtel," explained an Austar spokeswoman of the simultaneous
initiative.
Neither Foxtel or Austar would comment on the cost of the card swap, other than
saying that the capital expenditure to buy the new cards would provide a long-term
revenue boost because of a perceived increase in the number of legal subscribers. Back to top Korea:
delays in digital TV plans
From Shevta Malik in New Delhi
In a setback for the digital television plans in Korea, the Korea Broadcasting
Commission (KBC) has decided to delay the start of the licensing period by seven
months. As a result, broadcasting stations located in major cities and provincial
areas will be able to apply for digital broadcasting licenses only from June
2004.
As per the ministry's original plan, all broadcast stations would go digital
in December 2005. The Information Ministry has criticised the decision.
Media reports added that the KBC's decision has given some advantage to those
who favour adoption of the European standard for digital broadcasting. In 1997,
Korea had finalised a plan to adopt the US digital broadcasting standard.
While broadcaster MBC favours the European standard, Samsung, LG Electronics
and Daewoo are in favour of the US standard. Furthermore, the MBC and pro-European-standard
groups argued that the US standard does not support mobile transmission of digital
broadcasts, while the European standard offers smooth delivery of standard-definition
broadcasts under mobile environments. Back to top TPS
launches new children's channel
From Sotires Eleftheriou in Paris
French DTH platform TPS is launching a new children's channel today (December
3). The channel, called Piwi, is aimed at the 2-6 year old age group and it
is specifically designed to stimulate its audience's learning process. This
is the latest in a revamp of children's channels on TPS that began last year.
From its launch until last year, children's channels were lacking on TPS. Although
its target group is very much family oriented, it had only one, Teletoon, a
non-stop stream of cartoons. Rival platform Canal Satellite had several, including
various Disney channels, Canal-j and Fox Kids.
TPS has now 6 children's channels. In addition to the original Teletoon came
Teletoon+1, a time-shifted version, Eureka (for 7-15 year olds), Tfou, Boomerang
(cartoons), and now Piwi. The launch of Piwi is accompanied by a reworking of
the target groups for the other channels, which will be moving upwards in the
age groups.
Piwi is produced by the children's department of TPS. The overall budget for
the department in 2004 is E10 million. Back to top Regulator
allows joint TV advertising sales
UK watchdog Ofcom has removed a ban on television broadcasters selling advertising
airtime collectively, paving the way for Channel Four, Channel Five and BSkyB
to merge their ad sales operations.
The regulator's move follows the approval earlier this year of the Carlton Granada
merger, which will create a broadcasting giant, ITV, with control of more than
half of the TV advertising market.
Publicly-owned Channel Four is the next-largest commercial broadcaster in Britain,
with a market share of about 20 per cent. BSkyB has about 11 per cent and Channel
Five -- jointly owned by United Business Media and RTL -- has about eight per
cent.
Ofcom said that any sales deals that result in a market share of at least 25
per cent will automatically trigger an inquiry. It also remarked that existing
competition laws were robust enough to address such concerns.
"The ITC and Ofcom believe the robust provisions of the Competition Act and
the increasing body of competition case law provide sufficient mechanisms to
prevent distortions of competition in the joint selling of airtime," it said.
Ofcom also said it would lift the rules banning Carlton and Granada from selling
advertising jointly - a formality in the light of the government's decision
to give their merger the green light. Back to top Comcast/Time
Warner partner
US giants Comcast Corp and Time Warner have agreed to combine their cable partnerships
in Kansas City, Mo., and Texas, and to allow either company to trigger a dissolution
of the combined entity after two years.
While Wall Street observers have in recent days speculated that Time Warner
could use its new financial flexibility following a deal to sell its music division
to buy out two cable joint ventures with Comcast, the companies decided to continue
the ventures for now in reconfigured form.
Texas Cable Partners serves about 1.2 million subscribers and Kansas City Cable
Partners has about 300,000 subscribers. TW, the world's largest media company,
and Comcast, the US' No. 1 cable provider, are 50/50 partners in the ventures.
In addition to the joint ventures in Texas and Missouri, Comcast owns a 21 per
cent stake in Time Warner Cable it inherited when it acquired AT&T Broadband
last year. Back to top Vivendi
posts Q3 operating profit
French media conglomerate Vivendi Universal swung to a surprise third-quarter
net profit thanks to gains at its telecoms, pay television and entertainment
divisions.
Vivendi reported a third-quarter operating profit of E896 million, up 43 per
cent on a pro forma basis, according to the company. Analysts had predicted
a third quarter operating profit of E743 million.
Confirming its 2003 financial targets, Vivendi reported operating profit gains
at its telecoms, pay-TV and entertainment subsidiaries while profits fell at
its music arm. Losses widened at the struggling games unit. Back to top AOL UK unveils 1Mb broadband service
AOL UK has launched its new 1Mb DSL broadband service. After trailing the higher-speed
service for two months with several broadband customers in the UK, the company
said it had a positive feedback.
The new service can be acquired for £34.99 (E49) a month, as long as the customer
sings up to a year's contract and ensure they get their order in before the
end of January. As part of the offer AOL covers the cost of upgrading to the
faster service.
However, even with the promotional price AOL's service costs more than some
other 1Mb services on the market.
AOL has yet to decide the price for the service from February 1 2004. Back to top Austrian
operators seek refund on 3G licences
Mobile phone companies in Austria are reportedly requesting rebates from the
government over fees they paid for 3G mobile phone licenses three years ago
because the licenses should have cost less.
Six operators - including T-Mobile, Telekom Austria, Hutchison, Telefonica Connect
Austria and Telering - filed the case last week. The companies are seeking a
deduction on future taxes of E140 million. The move, if successful, could set
precedent for European operators in other countries to seek similar reimbursements
from their governments. Back to top Philips
launches Nexperia MPEG-2 CODEC
Philips Electronics announced the launch of the Nexperia_PNX7200, a single-chip
MPEG-2 codec for DVD recording applications.
According to the company, "Nexperia PNX7200 enables the lowest system-cost solution
on the market today, reducing bill of material (BoM) costs by up to 30 per cent."
Philips also unveiled its fourth-generation Nexperia reference design targeted
for DVD+R/+RW. "The reference design, powered by the highly integrated single-chip
PNX7200, will provide manufacturers the ability to quickly bring to market reliable,
compatible and cost-effective end products," the company commented.
NTL the UK's biggest cable company, has launched Broadband Plus, a premium broadband
content bundle providing customers with access to a wide range of web-based
content.
The service is available to NTL's 600,000 1MB broadband customers for £3.99
per month (E5.5) , instead of about £30 per month (E42), which, NTL says, is
what it would cost if customers were to subscribe to the fifteen services provided
individually.
NTL will use Broadband Plus as an acquisition tool to attract new customers
as well as encourage existing 150K broadband and dial-up customers to upgrade
to its higher speed broadband services. Customers signing up before 1 March
2004 will pay nothing for Broadband Plus for the first three months.
Broadband Plus, which focuses on music, gaming and education content, brings
together 15 brands including Tweenies (provided by BBC Worldwide), MTV, Encyclopaedia
Britannica, Freeloader, Game.Net, Music Choice, Time Tunnel, VidZone and Download
365 for the first time. The new service also features Espresso Education, a
curriculum-based educational resource for primary school children, which includes
video clips, interactive multimedia activities, and a special "Parents' Guide"
to the national curriculum. Up until now this service has only been available
in schools. Other Broadband Plus content partners will be added in 2004. Back to top Hollywood
Cinema on TV
From Dieter Brockmeyer in Frankfurt
For the first time, movie fans have their own digital TV service with the name
"Hollywood Cinema" that, around the clock, exclusively deals with current productions
for the big screen and for the cinema at home.
The Hollywood Cinema channel will show: "Cinema Today" screening all the trailers
of new big screen releases for everybody to stay up-to-date quickly and easily
with what's in the movies. "Movies of the Week" gives access to in depth features
with interviews and the making of new films. "Best of Cinema" presents the most
successful blockbusters and "DVD Today" new Hollywood releases on the silver
disk. Other themes will be "Making of", "Cinema Music" and "European Cinema".
The channel is launched in the English language. More languages - German, Russian
and Polish - will follow shortly within the next year. "Hollywood Cinema" is
a brand new concept for a TV channel that, in the long run, will gain the same
importance for the film industry that music channels already have for the music
industry", states Marco Deutsch, managing director of the channel's operating
company Hollywood Cinema.tv.
For the time being, Hollywood Cinema can be received via the Eutelsat satellite
Telekom 2D and Atlantic Bird 2. It is part of the Eutelsat digital TV platform
visAvision, which provides integrated channel services for European cable operators.
Hollywood Cinema.tv GmbH was founded in August 2003 by Marco Deutsch, former
managing director of the German TV channel TM3, and the former Deutsche Telekom
owned German digital platform MSG. The company operates the Hollywood Cinema
digital channel and produces the magazine format "Hollywood Cinema - das Kinomagazin"
for the German commercial TV channel Tele5. Back to top Yoomedia
backs Sportingbet
Yoomedia has partnered with Sportingbet Group to bring fixed odds games betting
to iTV, in a three-year deal.
Under the terms of the revenue sharing agreement, Yoomedia will launch games
from Sportingbet, which holds titles including Winners Wheel, SuperHiLo, Blackjack
and Joker Poke on the four main digital platforms in the UK.
Sportingbet will provide the odds betting, customer services and transaction
capabilities, enabling YooMedia to launch Sportingbet's games products.
"We plan to launch first on cable and then roll out Sportingbet's games products
on to satellite and digital terrestrial," said Andrew Fearon, chief operating
officer at the company. Yoomedia raised £2.4m in October to invest in new emerging
opportunities. Back to top
TIRAMISU aims for sweet DRM solution
Israeli digital streaming developer Optibase, Ltd has announced that together
with leading European technology companies, research institutes and universities,
it will develop a multimedia framework that will enable the creation, delivery
and use of digital media content on the public network, while protecting the
rights of content owners and the privacy of consumers.
Funded by the European Commission, the TIRAMISU project brings together leading
companies including Optibase, Nagravision, Emblaze Systems and Orange Personal
Communications Services Limited. Research institutes include the Fraunhofer
Institute for Integrated Circuits IIS, France Telecom R&D, Industrial Technology
Research Institute, Imperial College London, Ecole Nat. Sup. des Telecommunications,
University of Ljubljana and a consultancy and management company - ARTTIC Israel.
The Consortium aims to develop a complete end-to-end framework solution consisting
of interoperable, open standards-based hardware and software platforms. The
project's solution will be comprised of contributions from leaders in the areas
of content management, security tools, streaming, networking and peer-to-peer
solutions, as well as end user applications. The TIRAMISU project will benefit
from the MUFFINS' consortiums achievements addressing similar issues, on a larger
scale. Back to top Telefonica
completes Antena 3 sell-off
Telefonica has finalised the sale of its stake in Antena 3, leaving the publishing
company Planeta as the major shareholder in the commercial broadcaster.
The telecoms group was required to pull out of the channel by Spanish competition
rules after the merger of the Canal Satellite Digital and Via Digital platforms
earlier this year left Telefonica in a dominant position in the market.
Permission to fuse the two platforms to create the Digital+ platform was granted
last year on condition Telefonica sold its holding in Antena 3 within 12 months.
Major shareholders are now Planeta 33.5 per cent, RTL owns 17 per cent and Banco
Santander 10 per cent. Back to top Latens
seals digital cable integrations
From Colin Mann and Geny Caloisi in London
Conditional access (CA) specialist Latens solutions have been integrated with
ADB's (Advanced Digital Broadcast) digital cable set-top-box (STB) and Tandberg
Television's digital cable head end solutions. The initiatives are aimed at
reducing both the set-up and running costs for digital cable operators and allowing
them to adapt their business models quickly and easily.
Belfast-based Latens operates a 'software only' approach to CA, which enables
it to integrate more quickly than a traditional CA vendor. Latens director Andy
Mathieson told advanced-television.com that the shift away from the hardware
model enabled the company to integrate its solution with whatever its customers
wanted, adding that cable operators could deploy the Tandberg system for trial
services, "where traditionally the cost of CA has often been prohibitive".
Jeremy Thorp, Latens' CEO, suggested that it was possible to leave legacy security
systems intact and deploy the joint Latens/ADB solution solely for new networks
or for new customers, so that a cable operator could save money straight away
"without waiting
for the end of the life of the traditional conditional access system." Mariusz
Walkowiak, VP, Product Marketing Group for ADB, added that the cost savings
provided by the integration of Latens CA with the ADB STB would "please those
cable operators needing to keep the costs to a minimum, without compromising
the security they require to protect revenues and ensure access to high-quality
content." Back
to top Net
gains on 'old media'
The internet is rapidly catching up with traditional media, with Europeans now
spending more time surfing the web than flicking through magazines, new figures
show.
The explosion of news and entertainment sites on the internet, combined with
a decline in daily newspaper reading means the internet now accounts for an
average of 10 per cent of media consumption in Europe.
Magazines by contrast now account for just 8 per cent of media consumption,
according to the research, which was carried out by Millward Brown for the European
Interactive Advertising Association. Even newspaper reading is only slightly
ahead of the internet, accounting for 13 per cent of the time spent on media.
And although television remains by far the biggest medium, accounting for 41
per cent of people's media time, 45 per cent of those surveyed said the internet
meant they now watched less television. Radio accounted for 28 per cent. Back to top UK
broadband use trebles in a year
The use of high-speed broadband internet services in Britain has almost trebled
over the past year and is expected to top 3m connections by the end of the year.
Stephen Timms, the e-commerce minister, said Britain still lagged behind Canada
and Japan in the national penetration of its broadband network, but now had
greater penetration than the US.
Timms was confident that the UK would meet its target of having the most extensive
broadband network of any G7 industrialised country by 2005. Back to top NDS:
security consultancy
NDS, the provider of technology solutions for digital pay-TV, launches SiVenture
to offer independent expertise to chip designers and major manufacturers to
assess chip security and quality.
SiVenture's range of expert skills, include smart card chip hardware and software
security analysis, cryptoanalysis and smart card system security. Currently,
SiVenture is engaged in leading edge, high security projects that cover chip
technology, platform software, secure hardware devices and operational lifecycle.
Based in the UK, the SiVenture Laboratories offer a range of security, fault
and quality analysis services for all chip types. Equipment includes a comprehensive
set of tools for preparing, de-processing, probing and modifying samples. This
includes a wide range of microscopy - optical, focused ion beam, scanning electron
and atomic force, and comprehensive electronic measurement and signal analysis
tool-sets. Back to top Cabovisao
selects Nuera for VoIP service
Cabovisao, the second largest cable operator in Portugal, with more than 770,000
homes passed, has deployed the Nuera Communications Inc. ORCA RDT-8v Voice-over-IP
gateway. Nuera's RDT-8v broadband access gateway enables Cabovisao to leverage
their Class 5 circuit-switched infrastructure to offer voice services over an
IP network.
Currently, Cabovisao offers voice service to more than 160,000 customers using
Constant Bit Rate (CBR) technology. The company plans to grow its voice network
using VoIP to take advantage of a converged voice, video and data network. Back to top Disney
quits Disney
Roy Disney has resigned as vice-chairman of the Walt Disney company and called
for Michael Eisner, chairman and CEO, to follow suit, bringing to a head a conflict
that has been brewing for a decade.
"It is my sincere belief that it is you who should be leaving and not me," he
said in a bitter letter that criticised Eisner's performance. The departure
of Disney, nephew of Walt Disney and still a substantial shareholder, is likely
to reignite the debate about the media company's direction.
Disney claims Eisner's failed to revive the ABC television network's primetime
schedule, built theme parks on the cheap, and induced a "creative brain drain."
A statement from the Disney board said Disney had not been nominated for re-election
to the board because of mandatory age limits. He is 73. Back to top MM02
chairman to step down next year
MM02 announced its chairman David Varney, who steered the mobile phone operator
through its demerger from BT Group, would leave in the middle of next year.
The company said that Varney's exit reflected MMO2's maturity as a business
following its flotation in November 2001 and said the search for a replacement
had already begun, with both external and internal candidates under consideration. Back to top Austin
to quit DirecTV
Roxanne Austin, president and chief operating officer of DirecTV has elected
to leave the company when News Corp.'s acquisition of DirecTV parent company,
Hughes, is complete. Austin was credited with DirecTV's 37-percent rise in revenue
after a rough financial period two years ago.
The BBC has unveiled plans to sell its BBC Technology arm as part of an effort
to save between £20 - £30 million (E42 million) a year. The BBC's board of Governors
has backed the proposal, which will need government approval.
With 1,400 staff and annual turnover of £220 million (E308 million), BBC Technology
sells broadcasting services to its state-funded parent and private-sector customers
including satellite companies BSkyB and DirecTV, sports channel ESPN and mobile
phone firm Hutchison 3G.
The BBC said in a statement that it expects Technology to attract bids from
"major technology businesses with scale and expertise" and the sale to be done
by late next year.
BBC Technology delivered £19 million (E2.6 million) in profit and price reductions
to its parent last year. But an internal review found that to remain competitive
within the BBC structure, there would have to be substantial job losses.
"This way the staff will continue working on BBC business but at the same time
BBC Technology, which has been very successful at winning outside contracts,
will get the capital injection it needs to expand further albeit in someone
else's ownership," BBC Director-General Greg Dyke said in a statement.
Dyke said the government had asked the BBC in 2000 to raise one billion pounds
(E1.4 billion) over seven years, suggesting an asset sale.
"We have no plans to sell any other of our commercial subsidiaries," Dyke added. Back to top Germany
to free two 3G licences
In the new year, the German government is to recall two of the six third generation
mobile phone licences it sold in 2000. According to reports, troubled Mobilcom
and Quam, are expected to surrender their licences without compensation.
It is believed that the licences will be sold on to the remaining four players
for as little as E200 million, a tiny fraction of the £6 billion (E8.4 billion)
they paid for the licences three years ago. Being financially stronger, Vodafone
and T-Mobile are the most likely bidders for the spectrum.
However, the move has raised concerns that Vodafone is valuing its German business
too highly. Since the licences were awarded concerns have been raised about
the return that mobile phone firms will make on their investment in 3G services.
Rudi Groeger, CEO of O2 Germany - which has only 8.4p per cent of Europe's largest
mobile market -, said this might create difficulties for his larger rivals,
neither of which have written down the carrying value of their licences on their
balance sheets. "It could generate a problem for those of us who haven't done
any adjustment," said Groeger. He said he believed O2 and E-Plus were unlikely
to bid for it, but that he expected Vodafone and T-Mobile would be "jumping
in there".
A spokesman for Vodafone said the company planned to stick with its strategy
of not accounting for its 3G licences separately and will resist calls for any
new writedowns because it believes its German business as a whole is performing
in line with its valuation on the books. Back to top Vivendi
to take over Le SAT
From Sotires Eleftheriou in Paris
An agreement between Canal Plus and Canal France International (CFI) will result
in Canal Plus subsidiary Canal Horizons taking over Satellite Africa Television,
generally known as Le Sat. Although the agreement was signed in July, it was
only made public on Thursday (27/11/03) following a meeting between the French
Foreign Affairs Minister, Dominique de Villepin, and Vivendi head Jean-Rene
Fourtou.
Le Sat is the digital satellite and MMDS platform operated in 46 African countries
by CFI, a French government organization set up in 1989 to supply French TV
programming world wide. Le Sat is received in around 100,000 homes in Africa
and has an annual turnover of E 6.5 million. It carries eight French channels,
including CFI-TV. Its satellite platform uses C-band, which provides a wide
geographical coverage but necessitates the use of large dishes. It also uses
30 MMDS relays.
Canal Horizons is Canal Plus's premium subscription channel for Africa. It is
distributed on a number of platforms, including Le Sat.
The move is part of the French government's movement to rationalize its overseas
broadcasting, arguing that it makes sense to entrust the marketing and management
of a satellite platform to a company with wide experience, like Canal Plus.
The government is also winding down the channel CFI-TV, which is to stop at
the end of the year. Back to top SkyLife
reaches 1m subs milestone
From Will Adams in Tokyo
Korean digital satellite-delivered pay TV provider SkyLife has broken the one
million subscriber mark after just 20 months since it launched.
Skylife president Hwang Kyu Hwan said the service now commands 6.1 per cent
of all viewing in TV homes. "SkyLife pioneered a new market under challenging
circumstances. The service has grown to one million subscribers in just one
year and eight months. This is proof that Korean viewers are rapidly accepting
digital satellite broadcasting. "
After launching in March 2002 Skylife ended 2002 with around 430,000 subscribers.
He said that its interactive offering launched in June, SkyTouch interactive
TV, made Skylife one of the few direct to home services to launch MHP broadcasts
with conditional access. SkyTouch iTV, offers interactive services in four genres
and in 14 categories, as well as real time games, quizzes, stock prices and
real estate values.
Skylife's launch is meant to be the opening act of an $11 billion government-led
initiative to digitise Korea's TV sector, starting with satellite and cable,
and extending to the terrestrial area. According to the Korean Broadcasting
Commission (KBC), digital terrestrial services should be operational nationwide
by 2005. Back to top Telewest
to pay £63m in advisers' fees
UK cable operator Telewest is to pay at least £63 million (E88.2 million) in
advisers' fees as part of its £3.5 billion (E4.9 billion) debt restructuring.
The legal and financial advisers' fees were disclosed as Telewest neared the
final stages of its restructuring by filing registration documents with the
US Securities and Exchange Commission. According to the FT, the fees include
the expenses of members of the bondholder committee involved in the debt-for-equity
swap that will leave them with 98.5 per cent of the company's equity once its
shares are relisted.
In addition, Telewest disclosed £30 million (E42 million) of arrangement fees
related to its £2 billion (E2.8 billion) of bank facilities. Back to top Press
Red and emuse launch first interactive TV ads workshop
Press Red, the interactive TV advertising (i-Ad) services company, and emuse
technologies, the Dublin based developer of user-friendly authoring software
for interactive TV, have successfully carried-out the first in a series of unique
interactive TV advertising workshops. Hosted at iBurbia, London's West-End dedicated
interactive TV research facility, the workshops have been developed to enable
advertising agency creatives to develop high-end interactive components for
TV commercials using emuse's design environment, Modelstream.
Alan Docherty, a Senior Creative at McCann-Erickson London remarked, "I had
been aware of the existing capabilities of interactive TV advertising. However
Modelstream places the look and feel of the graphics firmly in the hands of
the creative and also enables the response routing to be fully explored at the
development stage." Commenting on the speed of the process he added, "I arrived
with an MPEG of a current commercial for one of our major FMCG clients in the
morning and left with a fully interactive test version later that day". Back
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