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Cover Story - HD goes for Gold
July/August 2005

Asia Watch - Healthy Outlook for Asia Media

July/August 2005

Broadband - Anga Cable 2005
July/August 2005

US Watch - Satellite Radio: Can Everyoone Win?
July/August 2005

Telecoms - Wireless Watch
July/August 2005

 


NEWS Monday 7th July 2003 to Monday 14th July 2003

Scroll down page or click below for news - latest first

Tuesday

Friday 11th July 2003
Singapore to invest E50m to boost media development
Thematic channels' audiences on the up
American satellite feeds to Iran jammed
Viacom only wants Vivendi's cable units

Messier's pay-off blocked
Media revenues not affected by SARS says China portal

Israel's Partner: 3G roll out in 2003
Yahoo! profits up
Latens, new CA player

Singapore to invest E50m to boost media development
From Owen Hughes in Tokyo

Singapore has renewed its attempts to position itself as the media hub of Asia as it attempts to attract more overseas investment to pull it out of an economic slump.

Information, Communications and Arts Minister Lee Boon Yang said that the media industry had grown into a E2.5 billion a year business that employed nearly 40,000 people and contributed 1.56 per cent of the gross domestic product of the island republic.

Lee was speaking at a ceremony to announce that Singapore's Media Development Authority would allocate more than E50 million over the next five years to boost media industry development. Lee said he wanted the media sector to contribute 3 per cent of GDP and employ 50,000 people by 2012.

Singapore used tax breaks and other incentives to attract a number of pay TV channels including Discovery, MTV and CNBC to base themselves there in the mid-1990s. However, the country's conservative social policies were felt to be a barrier to greater growth, despite the creation of a world-class IT infrastructure. Singapore's rulers have not been slow to use the law against media outlets felt to have published unfavourable material.
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Thematic channels' audiences on the up
From Sotires Eleftherious in Paris

Mediametrie has just issued the latest figures of its panel of viewers of cable and satellite channels in France. The panel looks at the channels watched minute by minute in 1019 homes, comprising 3012 people aged four and over, during the period 30 December 2002 to 15 June 2003.

This is the fifth time the panel results have been published, and is by far the longest period. The total number of people in France aged 4 and over with an enlarged TV offer is 13.059 million, compared to a total TV population aged 4 and over with TV of 53.32 million.

The detailed figures are released to the channels subscribing to the study, who are then free to disclose the figures that concern them to the press if they so wish. This year 81 channels subscribed, almost all of the French channels. As usual, almost all the channels issued press releases drawing attention to the results that show them in the best light.

The main conclusion is that while the terrestrial channels still hold the lion's share (65.8 per cent), viewing of thematic channels (34 per cent) is creeping upwards, albeit very slowly. In the previous panel, a year earlier, viewing of cabsat channels was at 33.3 per cent. Note that this is the percentage of viewing in homes able to receive the channels. In particular, viewing of thematic channels was the strongest and had also grown the most in the 4 - 14 age group, where it reached 50.8 per cent, compared with 47.8 per cent the previous year.

The public summary is available on the mediametrie website, www.mediametrie.fr . For the second time, the survey includes details of the use of interactive services.
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American satellite feeds to Iran jammed

All US-based satellite broadcasts to Iran are being jammed by an unknown group or individual, US government officials confirmed.

According to MSNBC, over the past months, private Iranian-American groups have begun increasing their broadcasts into Iran using Telstar-12, a communications satellite over the eastern Atlantic. All are trying to encourage protests against the regime in Tehran.

Over the past few days - as the fourth anniversary of the country's most widespread protests approached - the broadcasts have been jammed, not in Iran but somewhere in the Americas, according to officials and investigators.

Investigators said that it is Telstar-12 that is being jammed, cutting off broadcasts not only in Iran but in Europe and the rest of the Middle East as well.
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Viacom only wants Vivendi's cable units

Sumner Redstone, Viacom's Chairman, confirmed that the company was seeking to acquire Vivendi Universal's cable television networks but not its film or music studios.

Redstone spoke after a presentation at the investment banker Herbert Allen's annual summer retreat for media moguls at the Sun Valley resort. He said that Vivendi Universal's cable networks - which include USA, the Sci-Fi Channel, and Trio are: "The best assets in the world." Redstone added that Viacom was most interested in niche channels like Sci-Fi and Trio instead of general-interest channels like USA, but he said the company wanted USA's strong cash flow. But he noted that Viacom already owns a film and television studio, Paramount. "One studio is enough," he said.
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Messier's pay-off blocked

Vivendi Universal's ousted CEO, Jean-Marie Messier, will have to wait at least until next year for a decision about its claimed E20.6 million 'termination agreement'. On Wednesday the French stock market regulator made a dramatic eleventh hour intervention on behalf of shareholders and at the request of the Commission des Opärations de Bourse, the Paris high court has ordered Vivendi Universal to freeze payment of the money to Messier until it receives shareholder approval. The shareholder's approval of the settlement, which can be put to the vote next April, is thought 'unlikely'.

Although last week, an American Arbitration Association panel ruled unanimously in Messier's favour and ordered Vivendi Universal to pay him the E20.6 million, Jean-Francois Lepetit, COB President, told the Paris court the 'termination agreement' was invalid under French law as it lacked board and shareholder approval.

Messier's period at the helm of Vivendi Universal is the subject of criminal probes by the US department of justice and by the French public prosecutor, as well regulatory investigations on both sides of the Atlantic. A New York judge is expected to rule shortly on whether to admit a consolidated class action case in the US.

On another front the French media giant has closed the European arm of MP3.com, the online music site that it bought for E371 million two years ago. The site will close on August 8 with around 20 redundancies in Europe. The US arm of the site has been placed up for sale, although analysts are doubtful whether a buyer will be found willing to operate it as a going concern. The closure is part of CEO Jean-Rene Fourtou's efforts to reduce Vivendi's debts following a huge acquisition spree by Messier.
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Media revenues not affected by SARS says China portal
From Owen Hughes in Tokyo

Chinese portal Sohu has posted profits of E8.2 million for the second quarter of 2003, contrary to the perceived wisdom that the effect of SARS would drive down media revenues during this period.

Advertising revenue grew by 51 per cent during the period, which may give comfort to another multimedia company, Hong Kong's Tom.com which last week confirmed it was taking a controlling interest in China Entertainment Television (CETV) from AOL Time Warner. The US company had taken a majority stake in CETV in late 2000, but it has since struggled to stem losses at the channel.

A Hong Kong media analyst who did not wish to be named commented: "There is some upside for the cable and satellite TV industry in Sohu's announcement. It shows that there is money to be made from subscriptions and in particular, from advertising. The important points though, are that you have to provide content and services that Chinese consumers want and cannot get anywhere else, and you have to be able to collect the revenues that you generate. That isn't something the pay TV industry has been able to accomplish 100 percent so far."
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Israel's Partner: 3G roll out in 2003

Israeli mobile phone operator Partner Communications intends to start rolling out its 3G network at the end of 2003 and expects commercial services in 2004.

Partner is Israel's second-largest mobile phone operator and lone GSM provider with a subscriber base of 1.89 million as of March 31, 2003, representing a 29 per cent market share.

Israel issued three 3G mobile network licenses in December 2001 to Cellcom Israel Pelephone Communications and Partner Communications, which paid $ 52 million for the 3G spectrum. Partner is expected to supply 3G services first in central Israel, which includes Tel Aviv.
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Yahoo! profits up

Yahoo! posted a second-quarter net profit of $50.8 million - 137 per cent up from the $21.4 million earned during the same period last year. Sales rose from $226 million to $321 million. Marketing services, which include traditional advertising and paid-for listings, contributed $219 million.

Fee-based services, such as premium subscription products and internet access, contributed $69 million. Revenues from listing services, which means mainly HotJobs, came in at $32.2 million. Despite the strong results, Yahoo!'s shares fell more than six per cent in after-hours trading.
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Latens, new CA player

Latens Systems Limited is the latest entrant in the conditional access market in the UK. Founded by UK broadcast experts, Jeremy Thorp, Jason Rogers and Andy Mathieson, Latens will focus in CA systems targeted at digital cable, fibre to the home and xDSL operators. Latens is a privately held company based in Belfast, Northern Ireland that has raised venture capital and has employed a number of specialist staff for its research & development facility in Belfast.

"At the birth of digital television a chip, either in a smartcard or embedded in the set-top-box was the most appropriate security solution. However, over 15 years later security technology and techniques have moved on. Latens is making the most of the power of the network and new advanced security systems to produce next generation Conditional Access systems that are cost-effective, scalable and flexible," says Jason Rogers, CTO, Latens Systems Limited.

Latens employs new IT security techniques and the power of the two-way digital network to be provide next generation Conditional Access for broadband and digital cable networks through Secure Software Modules (SSM) in the set-top-box. The SSM are monitored and managed through the network and whenever necessary are up-dated or replaced through the network.

Through employing next generation CA technology Latens says it provides a step-change in the security and functionality by "reducing the threat of piracy and saving operators up to 50 per cent of total security costs."

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Thursday 10th July 2003
German State sells 6% stake in DT
US cable industry prices 8.2% up
Brussels set to fine Wanadoo over prices
Japan 3G market: 69 million subscribers by 2007
Lords decline ban 'Murdoch clause'
AOL sells broadband to NTL subscribers
Italian senate debate over communications bill
Flying Couch Potatos
Live Shopping with Vodafone
MTVNI: management roll call
3 UK: new management team

German State sells 6% stake in DT

The German government has sold six per cent of its holding in Deutsche Telekom through a E4.5 billion exchangeable bond. As a result the State now holds 37 per cent of the phone company.

The bond, which is the biggest issue of its kind anywhere in the world, prompted speculation that other European governments will start using convertible bonds as a way of trimming their remaining industrial holdings. It had been assumed that the Government would not sell any Telekom shares because of the weakness of the share price.

By setting the conversion price at E17.53, the German Finance Ministry can claim it is selling the stock above the original floor. The bond is of five years' duration and carries a coupon of 0.75 per cent. The seller was the German state bank, KfW, which has the option to sell a further E500 million of bonds. The issue was managed by Deutsche Bank and JP Morgan, which both reported strong demand.
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US cable industry prices 8.2% up

Cable-television prices in the US rose 8.2 per cent during the year ending July 1, 2002, an increase five-and- a-half times the rate of inflation during that period, the Federal Communications Commission said.

John McCain, chairman of the US Senate commerce committee, accused the cable television industry on of "gouging" American consumers by charging exorbitant rates and said he would focus on the issue in coming months.

Cable operators attributed more than 60 per cent of their average monthly rate increases to programming costs. The rate increase topped the 7.1 percent average monthly rise of the previous five years, according to the FCC's annual statistical survey of 755 selected cable operators.

The General Accounting Office, the investigative arm of Congress, is expected to release a report on cable prices in October.
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Brussels set to fine Wanadoo over prices

Wanadoo, France Telecom's ISP, is set to get a fine of several million euro. According to the FT, the European Commission is to fine the company for keeping prices artificially low and damaging competition.

The fine, expected as early as next week, is likely to be in the E10 million-E12 million range, in line with a E12.6 million fine the antitrust body imposed on Deutsche Telekom in May. The 20 commissioners are expected to back the preliminary decision at a meeting next week.

Wanadoo claims 63 per cent of the relevant broadband market. Competitors such as AOL, Tiscali and T-Online have much smaller shares.

In December 2001, Mario Monti, competition commissioner, sent the company formal allegations that Wanadoo's low retail prices "constitute an abuse of dominant position . . . at a critical stage of the development of the residential high-speed internet access market."
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Japan 3G market: 69 million subscribers by 2007

According to IDC Japan's new study, the 3G service market in Japan is expected to reach 69 million subscribers in 2007, and will account for 77 per cent of the 89 million subscriptions in the entire cellular phone market. The 3G market is also expected to be worth $54 billion in terms of revenue, accounting for 81.4 per cent of the total market.

The entire cellular phone service market is expected to grow slightly from 2002 to 2007 with a compound annual growth rate of 2.4 per cent in subscriptions, and 1.3 per cent in revenue.

Mobile phone services in Japan are expected to start a full-scale transition from the conventional PDC (personal digital cellular), the country's unique 2G system, to the 3G system from the latter half of 2003 to 2004.

NTT DoCoMo is also likely to fully launch FOMA-based 3G from this autumn. The telco is quickening its shift from PDC system to 3G and, being the current market leader in the PDC market, such a move is intensifying the market competition. As a result, IDC anticipates that Japan is likely to lead the worldwide 3G market.
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Lords decline ban 'Murdoch clause'

The UK House of Lords rejected an amendment to the communications bill, proposed by Lib Dem Lord McNally, to ban Rupert Murdoch and other newspaper barons from owning Channel Five.

Lord McNally's proposal to retain the ban on newspaper owners with more than 20 per cent of the market buying Channel Five, was defeated by the relatively narrow majority of 30, with 137 voting for and 167 against.

The move to put additional barriers ahead of Murdoch's ambitions comes despite a Government compromise, which would impose a public interest "plurality test" for media takeovers.
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AOL sells broadband to NTL subscribers

AOL Time Warner's UK Internet unit has begun selling its broadband service to customers of cable operator NTL. Through NTL, AOL gets access to 7.2 million households that currently cannot be reached by BT. the nation's largest wholesale broadband provider.

In December, the US media giant paid debt-laden NTL E119 million to market its high-speed, broadband Internet service to the operator's residential and business customers for the next four years, in a bid to extend its base of 100,000 high-speed access customers.

AOL is banking heavily on the deployment of broadband services in Europe to steer the loss-making unit into the black. In the last year, AOL Europe has tripled the number of broadband subscribers to above 600,000, according to market estimates.
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Italian senate debate over communications bill

The Italian senate has begun debating a controversially amended bill that critics say would enable the Prime Minister, Silvio Berlusconi, to extend his already formidable influence over the country's media, according to the Guardian.

The wide-ranging communications bill would allow Berlusconi's Mediaset television group to keep all three of its channels, enable it to increase substantially its advertising revenue and to buy into the newspaper market. Opponents of the bill have tabled more than 4,000 amendments.

The dangers posed by his grip on the media were highlighted last week when the main Rai evening news bulletin failed to broadcast remarks Berlusconi made at the European Parliament that caused uproar across Europe.
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Flying Couch Potatos

WestJet Airlines Ltd said it will spend $22-million to install personal video screens on 40 aircraft, providing each customer with a choice of 24 live satellite channels.

Also Air Canada said it is looking at options to provide a similar service in its economy-class cabin when it emerges from bankruptcy protection. Calgary-based WestJet signed a 13-year deal with LiveTV LLC, a wholly owned subsidiary of New York-based JetBlue Airways Corp., to install the personal video screens on 28 Boeing 737-700s by March of next year.

The satellite feed will be supplied by Bell ExpressVu LP. WestJet said it plans to offer the major Canadian and U.S. networks, as well as some speciality channels, such as Teletoon and Report on Business Television.

WestJet said it will offer the satellite TV free of charge while it installs the screens on seatbacks, but may eventually charge a nominal fee for the service. The airline said it will pay about $2 per passenger per trip for the satellite feed.
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Live Shopping with Vodafone

UK mobile operator Vodafone has launched Vodafone Live Shopping, a virtual shopping centre where UK subscribers can buy items over the phone using their credit card.

Vodafone has formed alliances with HMV, Thorntons, Oddbins, Gagetshop and Firebox, and said it is looking to bring more retailers onboard. On enabled-handsets there is an icon that takes the user through the retailers and provides a list of the items available for purchase, with a picture and description. Users select the product they would like to buy, pay with a credit card, and the item will be delivered to their registered delivery address.
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MTVNI: management roll call

Bill Roedy, President, MTV Networks International, has announced, as part of the company's growth strategy, several shifts in his senior management group, with seven new roles - all of which are internal appointments. The new roll call in Roedy's management team is:

Alex Ferrari has been promoted to Chief Operating Officer, MTVNI. Ferrari comes from MTVN, where he has been Chief Financial Officer.

Brent Hansen has taken on an additional role in the newly created position of President of Creative, MTVN International. He will remain President and Chief Executive, MTVN Europe.

Jonathan Patrick has been promoted to take on an additional role as Executive Vice President, Global Marketing Partnerships, a newly created entity in MTVNI. He will remain General Sales Director, Advertising Sales Europe, MTVN Europe.

Alina Vogtner has taken on the newly created position of Senior Vice President, Human Resources, MTVNI. She will remain Senior Vice President, Human Resources and Administration, MTVN Latin America.

Michael Day has taken on the newly created position of Senior Vice President, Finance, MTVNI. He will continue in his domestic role as SVP, Finance, MTVN, overseeing the corporate finance functions.

Glenna Patton has taken on an additional role as Senior Vice President, Marketing and Communications, MTVNI. Rebecca Barrs has taken on an additional role as Vice President, Marketing and Consumer Products, International Program Enterprises (IPE), MTVNI.

Continuing in their leadership roles within MTVNI's Senior Management team are Frank Brown, President MTV Networks, Asia-Pacific; Antoinette Zel, President, MTV Networks Latin America; Sahar Elhabashi, Executive Vice President, Business Development and Operations; Kathleen Hricik, Executive Vice President, International Program Enterprises; and Yvette Alberdingk, Senior Vice President, Legal and Business Affairs.
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3 UK: new management team

Third generation mobile phone operator '3' UK, announced the appointments of Gordon Webber as Director of Commercial Activities and Ian Munro as Customer Director. Also announced was the appointment of Graeme Oxby as Marketing Director. All three roles report in to Gareth Jones, Chief Operating Officer, 3 UK.
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Wednesday 9th July 2003
Japan aims to top broadband league
SCPEL invests $11 million in Indian news broadcaster
Lib Dems still want to bar Murdoch
Internet ad spend jumps
Horse betting over a 3G network
Canada: ahead on media market growth
Advanced digital photo playback on TV from Micronas
Serb Channels debut on seventh HOTBIRD Platform
Japan aims to top broadband league
From Owen Hughes in Tokyo

Japan is set to become the world leader in terms of broadband penetration by 2007 under a government led initiative. A white paper released in Tokyo has outlined a scenario by which 60 million Japanese, a fraction under half of the population will be online in four years time, with the bulk of these users on high-speed broadband connections.

Japan, already the home of the world's first broadband-delivered pay TV platform, YahooBB!, has around 20 million Internet homes, of which seven million are broadband.

The Japanese government has expressed concern that the country is in danger of falling on the wrong side of the digital divide, and it promises funding and official support for plans to upgrade networks, particularly in rural areas.

Japan is currently third behind South Korea and the United States respectively in terms of broadband penetration, but fierce competition among service providers for new customers means that charges are currently a fraction of those in the US.
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SCPEL invests $11 million in Indian news broadcaster
From Shveta Malik in New Delhi

Singapores Standard Chartered Private Equity (SCPEL), the private equity arm of Standard Chartered Bank, has invested $11million in New Delhi-based Indian news broadcaster New Delhi Television (NDTV). Lazard India has brokered the deal.

NDTV will be looking at accelerated growth through acquisitions and infrastructure expansion. NDTV is a successful, cash-rich company with an excellent track record, said U. Bose, chairman of Lazard India.

According to Lazard, the SCPEL investment is subject to regulatory approvals and other closing conditions. Though the details of the investment were not divulged, NDTV's valuation is estimated to be $43 million.

NDTV, which turned into a broadcaster after its news content contract with News Corp.s Star News terminated on March 31, has two channels - Hindi news channel NDTV India and an English news channel NDTV 24 x 7.
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Lib Dems still want to bar Murdoch

Liberal Democrat peers in the UK's House of Lords hope to force an amendment today that would prevent a national newspaper group with a market share of 20 per cent or greater from acquiring a terrestrial channel.

It follows a month of painstaking negotiations over the most controversial part of the Communications Bill, which appeared to reach a conclusion last week when the government agreed to subject large takeovers in the media sector to a public interest test. The amendment is aimed squarely at preventing News Corp's Rupert Murdoch acquiring the UK's smallest terrestrial Channel 5.

While the Tory front bench will not support the move, the Lib Dem culture spokesman, Lord McNally, believes that with a three-line whip on Lib Dem peers and additional support from Tory backbenchers and cross-bench peers his measure could be successful.
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Internet ad spend jumps

Total UK advertising spending dropped slightly by 0.4 per centto E23.4 billion during 2002, says the Advertising Association. But against the trend the internet did well, climbing 16.8 per cent. Its total share of the advertising spend is now 1.2 per cent, slightly higher than cinema. National newspapers slumped 7.9 per cent while TV was up 2.6 per cent. All sectors had a terrible first half followed by a recovery.
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Horse betting over a 3G network

German provider of mobile gambling software, 'scaraboo' allows users to place bets via mobile devices such as Pocket PCs and mobile phones. Scaraboo, a portfolio company of Siemens Mobile Acceleration, developed the UMTS platform for horse racing in cooperation with Bremer Rennbahn. The company's technology features digital bet placement and the transmission of live results and images to mobile devices.

The system offers full personalization and localization of bettors via location-based services (LBS) and GPS. The feature opens up new possibilities since betting in Germany is actually controlled by the states, and only people who are physically located in a state may bet there.
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Canada: ahead on media market growth
From Gail Chiasson in Montreal

Canada was the fastest growing of all the entertainment and media markets in the world during the past two years, according to the recently released Pricewaterhouse Coopers Entertainment and Media Outlook: 2003-2007.

Despite representing only two per cent of total global spending for the entertainment and media industry, Canada's industry outpaced the US, Europe and Asia in growth in 2002, fuelled by strong consumer spending.

The report found that overall entertainment and media spending in Canada increased by seven per cent in 2001 and 9.9 per cent in 2002 to reach more than E18.8 billion. And it is expected grow at a 7.3 per cent compounded annual growth rate through to 2007.
The DVD market, new digital channels, rising broadband penetration and new video console games propelled filmed entertainment (33.8 [per cent); TV distribution (12.6 per cent); Internet advertising and access (40 per cent); and video games (27.5 per cent) markets into double-digit growth rates.

The report predicts that in Canada, the growth of segments such as video games and Internet advertising and access will continue to grow at double-digit rates through 2007. High single-digit increases are expected for TV distribution (8.3 per cent) and TV networks (7.2 per cent).

Consumer spending on filmed entertainment in Canada jumped from E1.9 billion in 2001 to E2.6 billion in 2002 due to soaring spending on DVDs. Cable network license fees rose by 17.5 per cent reflecting the introduction of new channels. Cable/satellite subscription spending increased by 12.6 per cent, fuelled by higher satellite penetration and upgrades to digital cable.

Broadband Internet penetration, which grew to 40 per cent of all Canadian Internet households, boosted the growth in online access to 42.2 per cent and new video console games led to a 27.5 per cent boost in video game spending. Declines were seen in consumer spending on recorded music, newspapers, consumer books, sports and business information. The report predicts that the future holds double-digit gains in consumer spending on video games, Internet access, filmed entertainment and cable network license fees and an 8.3 per cent compound annual growth rate (2003-2007) in cable and satellite subscription spending.
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Advanced digital photo playback on TV from Micronas

Micronas, a supplier of innovative application-specific IC system solutions for consumer electronics, multimedia and automotive electronics, has unveiled a new combination of controllers that will enable TV manufacturers to cost-effectively integrate memory card based features like digital photo playing into TV sets.

The new PUC 3030A 32-bit controller and SDA 6001 ("M2") graphic processor combination is launched at a time when sales figures of digital cameras are reaching mass market volumes. Meantime the TV markets' 100 Hz, progressive scan and flat-panel TVs on the other hand are best suited to display digitally taken photos due to 'no flicker' and enhanced picture resolution. With card-reading capability integrated into TV sets now, consumers can enjoy two benefits: Displaying photos in a living room environment at a very high quality level with simple user interfacing.

The Micronas system is able to quickly process and display JPEG pictures of all sizes. Decoding of files in MP3, WMA and AAC formats is possible as well, which allows user to play digitally downloaded music on its high-quality TV system in a very simple manner. The Micronas system is able to cooperate with all kinds of memory card systems.

To date, Micronas has sold more than 3 million M2 graphic processors. With the M2 deployed in a majority of mid-range and high-end TVs, manufacturers simply need to add a card reader and the PUC 3030A controller to an existing chassis to integrate digital still picture and audio decoding functionality. The PUC 3030A also provides USB connectivity enabling easy TV software and parameter updates.
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Serb Channels debut on seventh HOTBIRD Platform

GlobeCast, a world leader in satellite transmission, announced today that Serbian television and radio channels Pink Plus, Extra and Radio Pink have joined the growing channel lineup available on GlobeCast's HOTBIRD digital direct-to-home Platform at 13ÜE across the European continent, Northern Africa and the Middle East. RTV Pink will now have access to over 65 million cable subscribers, 30 million DTH households and over 2 million hotel rooms.

Pink Plus, Extra and Radio Pink are part of RTV Pink, the largest private broadcaster in Serbia. These channels are geared towards the expatriate community of the former Yugoslavia. GlobeCast is providing RTV Pink with end-to-end service including signal backhaul from Belgrade to Paris via Atlantic Bird 3, signal multiplexing, uplink from its Paris gateway and space capacity on GlobeCast's HOTBIRD DTH platform.
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Tuesday 8th July 2003
CAS set to get postponed in India
Less Sky soccer in pubs?
Brussels: Hollywood must review film deals
Liberty still wants Vivendi deal despite QVC bid
Conax plans to set up unit to support CAS in India
Samsung bans camera phones
BySky/Satlynx partner for two-way satellite in Belgium and Holland
Sky News Active on line
Vivendi looses faith on Xfera
Conneely joins Middle East digital platform
SES AMC 9 bird ready for service
CAS set to get postponed in India
From Shveta Malik in New Delhi

The Indian government has announced that it is likely to defer roll out of CAS in the four metropolitan cities from July 15 to September 1 this year. This was disclosed after a seven-hour long wrangle with broadcasters, MSOs and cable operators.

In the run-up to the new launch date, the pay channels will apparently be asked to waive subscription fee in the four metros during the month of August to help the consumers buy set-top boxes for the migration. The entire bouquet of channels will be available for $1.5 plus taxes for one-month, which will be used for creating awareness about CAS by the government. From September 1, one zone in each in the four metros will get CAS-enabled and all the sixteen zones will be covered by December 1, 2003. The government says the postponement is due to the lack of enough set-top boxes.
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Less Sky soccer in pubs?

BSkyB is planning to hike its subscription prices for pubs and clubs, prompting cuts in the number of venues showing live football. The satellite broadcaster has reportedly written to subscribers to its services informing them that prices will rise by 8-22 per cent from September.

In response, West Midlands-based Wolverhampton & Dudley Breweries said it will cut the number of pubs showing Sky from 280 to 190, while Yates's Wine Lodges will reduce its venues from 50 to 10 from August. Sky is shown in around 30,000 pubs and clubs in the UK, each paying as much as E1,450 a month.

"A number of companies have reduced their outlets with TVs already, because prices charged meant it was uneconomic," said Rob Hayward, the CEO of the British Beer and Pub Association. "More pubs will withdraw their TV screens when confronted with an increase of seven times inflation."

A spokesperson for BSkyB was reported as saying that the price rise "reflects the quality we offer as part of our package." He pointed out that the company will soon be showing 14 Uefa Champions League matches every week, on top of a large range of sports events.
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Brussels: Hollywood must review film deals

An antitrust investigation lead by the European Commission may force Hollywood studios to revise the film deals they have with European television channels.

According to the FT, antitrust investigators are concerned that film prices are being kept artificially high by price- setting clauses between European pay-television groups and studios including Warner Brothers, Universal, Paramount, Walt Disney, Twentieth Century Fox, MGM and Sony's Columbia Tristar. The studios said that the clauses are legitimate when dealing with dominant subscription customers such as Britain's BskyB.

The dispute centres on clauses, which are used by the studios to set minimum prices for movie contracts with European pay-TV. Although the clauses are rarely invoked, Hollywood regards them as a vital negotiating tool for securing pay-TV contracts.

The studios claim the investigation is only at a preliminary stage and that they have not been asked to consider any remedies at this stage. They want the Brussels authorities to focus on the alleged monopoly of pay-TV services in many EU countries.
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Liberty still wants Vivendi deal despite QVC bid


Liberty Media has agreed to buy Comcast's majority stake in the shopping channel QVC for $7.9 billion, but its shopping basket still has room for Vivendi Universal Entertainment, the US company lead by entrepreneur John Malone said.

Jean-Bernard Levy, Vivendi chief operating officer, is due to hold meetings in the US this week with Liberty and four other bidders interested in VUE, the joint venture comprising Universal Studios, theme parks and cable TV networks.

One person involved in the transaction, valuing VUE at $10 billion-$12 billion, said: "Liberty has given assurances that they can pursue both of these transactions." Liberty has $5.3 billion in cash and marketable securities on its balance sheet, with the ability to raise a further $10 billion by selling non-core investments.
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Conax plans to set up unit to support CAS in India
From Shveta Malik in New Delhi

Conax AS, a supplier of conditional access technology for digital TV, IP streaming, is setting up a wholly-owned subsidiary in India for providing solutions to cable operators and content providers to implement smart card-based CAS, according to industry sources.

Gearing up for the conditional access system (CAS) in India, Conax has already tied up with leading Indian business conglomerate the Essel Group. The Indian partners, which own broadcasting network Zee Telefilms and multi-system operator SitiCable, has decided to use Conaxs conditional access system (Conax CAS5) for its digital operations.

"Conax focus on the Indian market over the past years is now giving results, and the set-up of an operations centre will allow us to serve India and the Asian region with improved local technical support," said Bent Brugrd, CEO of Conax.
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Samsung bans camera phones

Samsung Electronics, the world's third largest maker of mobile phones, has banned the use of camera phones at its factories and research centres to prevent industrial espionage.

The South Korean company said: "Use of camera phones will be restricted in our most sensitive plants such as research and development centres and semiconductor labs."
Samsung will allow visitors and factory workers to bring camera phones into factories only after their lenses were covered with a plastic sticker, an official spokesperson said and added: "Such restrictions reflect our concerns about technology leakage and privacy."

J-Phone, the Japanese wireless operator, has responded to privacy concerns by making its camera phones emit a noise to alert people when a picture is being taken.
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BySky/Satlynx partner for two-way satellite in Belgium and Holland

BySky, a Satellite Service Provider based in The Netherlands, has signed an agreement with Satlynx to deliver two-way broadband satellite services to SMEs, Public and Educational Sectors in Belgium and The Netherlands.

BySky is already providing two-way Internet high-speed connections anywhere across The Netherlands. The service is independent from any infrastructure such as phone lines or any other terrestrial networks. The contract with SATLYNX enables BySky to provide two-way broadband services, to SMEs and public entities not already on networks.
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Sky News Active on line

Sky News Active Online, a broadband news service from Sky News is now live. Content is available in the form of video clips, typically ranging from 30 seconds to 4 minutes in length.

"Offering Sky News Active Online is the obvious next step for us," said Steve Bennedik, Head of Sky News Interactive. "Our interactive services have led the field and Sky News is committed to continually innovating and changing the way that people access news. Offering the Sky News Active eight screens online provides the same menu of news that has proved popular with viewers of the television service."

Sky News Active Online is currently available at an introductory price of E4.3 per month, or E36 annually.
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Vivendi looses faith on Xfera

The French-American media conglomerate, Vivendi Universal, will withdraw from the 3G consortium Xfera in Spain. According to reports, the group will sell all of its 26.3 per cent shares in the 3G license holding company for a symbolic E1 to Xfera's other shareholders.

The company has only recently started discussion with Spanish infrastructure constructor Abertis to roll out its UMTS network, which must be operation by the end of 2004 while other Spanish rivals have already started network constructions.

The mobile operator has also been in negotiations with the Ministry of Science and Technology to limit initial construction to Madrid and Barcelona.
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Conneely joins Middle East digital platform

Marc Conneely, former Head of Pay-Per-View events at BSkyB, has joined Gulf DTH as Vice President, Advertising Sales and New Business Development. Gulf DTH owns and operates the Showtime network, the leading digital pay-television platform for the Middle East and North Africa.

The Showtime network broadcasts 50 channels of premium entertainment from the NileSat satellite and has regional customer service call centres located in Saudi Arabia, the United Arab Emirates, Kuwait, Egypt, Jordan and Morocco.
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SES AMC 9 bird ready for service

SES Americom's AMC 9 satellite, which launched from the Baikonur Cosmodrome in Kazakhstan June 6, is ready for service, according to Sky Report. The quick turn-around may help SES Americom's efforts to assist EchoStar in testing new satellite services.

A diverse group of customers will use the new AMC 9 satellite, including Clear Channel, several US government clients, educational broadcasters in Louisiana and Pennsylvania, The New York Times, Petrocom, and USA Today. They will be transitioning services from AMC-2 to the new spacecraft during the next few weeks.

The successful transition of customers to AMC-9 will permit the move of AMC-2 from 85 degrees to 105 degrees. Starting in August, the Ku-Band payload of AMC-2 will be used by EchoStar for testing DISH Network services, SES said. The company didn't offer specifics on that testing.

Kevin Smyth, SES Americom's senior vice president of residential satellite services, said, "With AMC-2's move to 105 degrees and its utilisation by EchoStar, our vision of AMERICOM2Home as a US DTH platform begins to be realised."

The relocation of AMC-2 should be completed in early August, SES said.
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Monday 7th July 2003

Satlynx CEO resigns
Comcast to sell QVC stake to Liberty Media
Telemundo asks FCC to delay merger of rivals
Australian Government introduces HDTV programming quota
BBC Broadcast strikes deal with Five
BT: new broadband subscriber push
China to launch new comms satellite
Microsoft $10bn shareholder payout

Satlynx CEO resigns

Two-way satcom specialist Satlynx has announced that its founding CEO, Yves Elsen, will resign, effective August 31st 2003, to pursue career opportunities in a new field. The Company's Board of Directors has created a search committee to find a successor. Elsen had previously been Commercial Director at SES Astra.

Robert Bednarek, Satlynx's Vice-Chairman and Executive Vice President of Corporate Development at SES GLOBAL, will serve as the acting CEO of the Company during the search process.
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Comcast to sell QVC stake to Liberty Media


US cable group Comcast has agreed to sell its 57.5 per cent stake in the home shopping network QVC to Liberty Media for about $7.9 billion.

John Malone, Liberty's Chairman, started talks to buy the shopping channel in March. The company holds the outstanding share of QVC and will have to decide by next week whether to buy Comcast's stake. If the transaction is completed, Liberty will own 98 per cent of QVC.

Liberty is also bidding for Vivendi Universal's media and entertainment assets and buying QVC will stretch the company's resources if it pays in cash. For Comcast, the sale of its stake on the 24-hour television-shopping channel will help the company reduce its debt, which stood at $30 billion earlier this year. QVC is valued at more than $14 billion.

Brian Roberts, Comcast's president and CEO, reportedly said that the company will now focus on its core cable business.
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Telemundo asks FCC to delay merger of rivals

Spanish-language network Telemundo is asking federal regulators to delay a decision on rival Univision Communication's proposed $3 billion purchase of Hispanic Broadcasting Corp.

Executives from Telemundo and its parent network, NBC, reportedly told FCC officials that the Univision deal would make the Spanish-language media giant even bigger and harm competition. The all-stock merger was announced in June 2002.

Los Angeles-based Univision already owns 50 television stations nationwide. If the deal is approved, Univision would acquire HBC's 63 radio stations becoming the top Spanish-language broadcast TV network, cable channel, record label, Internet site and radio network as well as the largest group of television and radio stations.

Univision owns the Univision and TeleFutura TV networks and the Galavision cable network. General Electric's NBC network acquired Telemundo - Univision's chief rival -, in 2001 for $2 billion.
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Australian Government introduces HDTV programming quota
By Aaron Greenwood in Sydney

The Australian Government has introduced a high definition television quota for Australia's free-to-air commercial broadcasters, which aims to reinvigorate the country's struggling digital television transition.

The legislation demands the country's Seven, Nine and Ten Networks provide 1,040 hours of native HD programming per year in each capital city market, or an average of 20 hours per week.

Digital television services have struggled to gain acceptance in Australia since their launch in January 2001. While the country's FTA broadcasters have invested an estimated E587 million in establishing digital infrastructure, digital set top box sales have struggled to crack 82,000 nationally.

Despite this, the country's FTA broadcasters remain firmly committed to providing HD services, with some already regularly exceeding the 20-hour per week programming quota. Federal Communications Minister, Senator Richard Alston claimed that the Government's HD-focused digital broadcasting legislation would provide dividends as the rest of the world became increasingly aware of the technology's virtues.

"The Government's foresight in providing for HDTV as one of the viewing options is increasingly being vindicated by international developments as viewers appreciate that high resolution picture quality can be just as important a driver as a greater range of content and channels," he said.
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BBC Broadcast strikes deal with Five

BBC Broadcast and Five have agreed a two year deal for the BBC to provide a 'second-line' playout and channel management disaster recovery service.

"BBC Broadcast will play a vital role in Five's disaster recovery providing channel playout services for both main and regional feeds across all broadcasting platforms," the company said.

Initially, provision of the service will be from BBC Broadcast's current base at Television Centre but will operate from its new, purpose-built, digital Broadcast Centre in the new Media Village at White City, West London, when it opens later this year.

"As a major terrestrial broadcaster, it is essential that Five has reliable contingencies in place to minimise any impact on our viewers and advertisers" said David Burge, Controller of Broadcast services at Five.
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BT: new broadband subscriber push

Trying to boost the broadband internet take up, British Telecom has launched a new promotion. UK Households signing up to BT Openworld's service this summer get one month free - saving E40 - while businesses will also receive substantial discounts

Businesses are also being catered for with BT claiming it can save small businesses as much as E364 on the cost of broadband if they sign up before the September deadline.

Pierre Danon, BT Retail chief executive, said in a statement: "Now there are one million broadband customers using BT ADSL, we need to ensure that we keep the momentum going. Broadband is revolutionising the way that people use the net, both at home and at work, and our job is to make the service as compelling and as cost-effective an option as possible."
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China to launch new comms satellite

China plans to launch its third generation communications satellite, the Dong Fang Hong IV, in 2005. The satellite, better known as DFH4, meets China's need for a large capacity and long-term geo-synchronous communications and broadcast satellite.

The DFH4 is a state-of-the-art satellite. It has 50 transponders and has a life span of 15 years. Following the launch of the DFH4, China also plans to put into orbit a similar satellite for public communications use.

The new satellites mark a new era in China's space technology, greatly improving the country's communication, broadcast and information capabilities. China's first and second generation communications satellites were launched in 1984 and 1997.
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Microsoft $10bn shareholder payout

Software giant Microsoft is considering paying its shareholders a special dividend of more than $10 billion to reduce its $46 billion cash pile, according to the FT. Shareholders would receive the dividend in one payment of "significantly more than $10 billion" or spread over three or four quarters.

The dividend, which would be the largest corporate pay-out ever, is one of a number options Microsoft is looking at, the FT's sister paper, Les Echos, has learned.

The other options include a buyback, acquisitions and higher ordinary dividends. A decision is expected by the end of the year.

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