NEWS
Monday
5th May to Monday 12th May 2003
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Friday
9th May
CSA suspends Tfou channel
Weak
US market hampers Bertelsmann results
NTT
DoCoMo back in the black
New
set-top boxes for Foxtel
China:
New World cableco on digital rollout
BT
must cut broadband charge to rivals
EMTV
sell Muppets back to the Henson's
Americans,
broadband craze
CSA
suspends Tfou channel
From Sotires Elefteriou in Paris
The CSA, the French broadcasting regulator, has ordered a stop to the transmission
of Tfou, the new children's channel from TF1 (see Advanced
Television Archive). The CSA complains that Tfou started broadcasting, on
23 April on the TPS platform (Hotbird satellite) before it had received its
official authorization. Furthermore, the watchdog wants to examine the way in
which the TV programs on the channel are linked to the games, an essential feature
of the channel.
Tfou constantly incites young children, via an on-screen pop-up, to use the
remote control to leave the TV program and play games. While the games themselves
are free, they are linked to a prize draw, which is called up using the modem
in the set-top box via a premium rate phone number. For the time being the Tfou
screen displays a barker saying that the channel will be back soon.
The CSA has also revealed the definitive digital terrestrial TV channel line-up.
DTT is set to arrive in France by the end of 2004 and the regulator has signed
agreements with 23 nets including TF1, M6 and Canal Plus. While the three major
broadcasters renewed earlier digital deals, the CSA struck new deals with 20
other stations. On the free-to-air side, Direct 8, i-MCM, M6 Music, NRJ TV,
NT1, TMC and eight public channels signed on the dotted line.
The encrypted channels include Cinecinemas, AB1, Cuisine TV, Canal J, Comedie,
Eurosport, i-Television, LCI, Match TV, Paris Premiere, TF6, Planete, Sport
and TPS Star.
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Weak
US market hampers Bertelsmann results
German media giant Bertelsmann posted an operating loss of E58 million in the
first quarter after its music and book publishing units were battered by weak
consumer demand in the United States.
The debt-laden conglomerate said its sales declined 8.5 per cent to E3.9 billion
in the quarter. "The tougher market situation in the US, along with the weakness
of the US dollar, has made itself felt in Bertelsmann's quarterly results,"
the group said in a statement.
However Bertelsmann is still expecting full-year operating earnings before interest,
taxes and amortisation (EBITA) to come in above last year's level of E928 million.
"We still expect to make our targets for 2003 and resolutely strengthen our
operating business," Chief Financial Officer Siegfried Luther said.
The net loss was of E399 million, down from a net profit of E2.5 billion last
year - which was artificially blown up by a one-time gain from the sale of its
stake in AOL Europe to AOL. Bertelsmann's debt level stuck at E2.7 billion.
The company did not disclose divisional results.
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NTT
DoCoMo back in the black
Japanese mobile operator NTT DoCoMo, reported good first quarter results and
it said it expects net profit in the current year to triple.
Poor demand for its 3G mobiles coupled with massive writedowns on the value
of its overseas investments dragged down the company's financial performance
in recent years.
DoCoMo reported a net profit of Y212.5 billion (E1.6 billion) in the 2002 fiscal
year, compared with a loss of Y116.2 billion (E872 million) a year ago. For
the current year, the company expects to earn Y618 billion (E4.6 billion) in
net profit, ahead of analysts expectations.
DoCoMo's 3G mobile phone service expects to score more than a million subscribers
this year, according to a senior DoCoMo official. The company is confident that
the group's 3G service, branded FOMA, is set to take off over the next few years.
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New
set-top boxes for Foxtel
UK set-top-boxes maker Pace Technology has inked a deal with Australian pay
TV group Foxtel to supply its customers with boxes for both digital satellite
and digital cable.
Foxtel has also teamed up with US-based OpenTV to provide it with interactive
digital TV services and signed a sales agency agreement with telco group AAPT.
Kim Williams, Foxtel's CEO, said that the set-top boxes were a "crucial element"
in its plan to launch its digital cable service and extended digital satellite
operation next year.
The new digital boxes will be supplied to anyone signing up for Foxtel's digital
services early next year. Foxtel is expected to announce a second set-top box
supplier in the next few days, and possibly a third further down the track.
Williams added Foxtel was also working with Pace to develop personal video recorder
boxes for its subscribers.
BBC3 must raise standards or go
UK Culture Secretary Tessa Jowell has warned the BBC that she is prepared to
withdraw the licence for the broadcaster's new youth entertainment channel if
it fails to come up to standard.
Jowell, who gave the go ahead for the launch of BBC Three on digital television
at the end of last year, also criticised the corporation for missing its targets
on the amount of programming it has to source from independent production companies.
The channel is funded by E140 million of licence fee payers' money each year.
"If these new channels [BBC3 and the corporation's other digital ventures] don't
meet the terms of their approval then I will withdraw approval from them," the
culture secretary was reported as saying, adding that although it was "too early"
to say whether BBC3 was making the grade, "these conditions are not to be nodded
at from time to time. These are the rules for the channel and they've got to
be kept".
Meanwhile Jowell commented that the UK might see its analogue TVs switched off
by 2010 because the government is "likely" to meet its target of digitisation
within seven years. The process has been aided by the successful launch of Freeview,
the free DTT service, which gave "a big lift" to digital television.
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China:
New World cableco on digital rollout
From Owen Hughes in Sydney
A Hong Kong company has struck a deal with a Chinese provincial cable TV operator
to provide a digital platform. The regulatory authorities in Fujian province
on China's central coastline expect that the digital platform will begin to
roll out at the end of this year to the first of the area's four million cable
TV subscribers.
The project is spearheaded by Hong Kong's New World Infrastructure, which plans
to spend E110 million on the project this year, in addition to the E330 million
it has already spent on developing the platform. New World said that it expects
to have 200,000 households viewing the digital signals by the end of 2003 after
gaining permission from Fujian's bureau for Radio, Film and Television.
The rollout will be jointly overseen by New World's Chinese subsidiary New World
Xianglong Technology, Fujian Broadcasting Network. It will incorporate digital
equipment developed by PrediWave of the United States. New World has a 30 percent
stake in PrediWave.
Users will be charged around E4 per month and New World is planning to introduce
interactive games, video on demand and other premium services. Analysts said
that the project is one of the first tangible signs of China's plans to digitise
the country's TV networks that served around 120 million homes by 2015.
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BT
must cut broadband charge to rivals
UK telecoms regulator Oftel has urged BT Group to introduce cuts to some of
its broadband wholesale prices to allow other operators to compete in the broadband
market. BT has recently decided to cut the prices of its wholesale broadband
Datastream product, which is used by other operators to offer broadband connections
to Internet service providers.
David Edmonds, Director General of Telecommunications, said: "Our initial findings
were that these price changes, relative to the Datastream product, could have
prevented other operators from competing to provide broadband services to Internet
service providers. I therefore held urgent discussions with BT, and I asked
them to make reductions in the price of the Datastream product."
"I welcome the fact that BT has announced that it will cut its Datastream prices
by E0.97 a line, with additional discounts for high volume connections," added
Edmonds.
Under new price cuts, BT has agreed to cut its monthly Datastream charge of
E13 by E0.97. Additional reductions of up to E0.24 will apply for bulk orders.
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EMTV
sell Muppets back to the Henson's
German media group EMTV has agreed to sell the Jim Henson Company, the maker
of the Muppets, back to Henson's five offspring, for E77.5 million.
The price is a bargain in comparison to the E592.5 million EMTV paid for the
Company in March 2000, but it allows the German group to pay the remaining installment
on a E250 million loan for its television joint venture, Junior TV, and achieve
mid-term liquidity. A E400 million convertible bond is not due until February
2005.
The auction had attracted interest from several media firms, including giant
Walt Disney Corp, media investor Haim Saban and a group around investor Dean
Valentine.
The Henson heirs, will pay E68 million in cash, while EMTV receives the company's
liquid assets of E9.5 million.
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Americans,
broadband craze
The use of broadband internet in the US is increasing rapidly. A total of about
19 million US households had high-speed internet connections at the end of March,
either through a cable modem or DSL.
The growth rate is of about 9 per cent a month, according to Gartner Dataquest.
With around 106 million households in the US, broadband has plenty of room for
expansion.
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Thursday
8th May
Chinese
tighten licence laws
RTVE
goes for US cable market
Ergen
praises New Corp deal
Vodafone
starts Irish 3G trials
Vivendi,
multiple choice?
CSA
greenlights K-Mobile-backed TV channel
New Skies, Q1 2003 results
Canadian cable distribution revenue up
Telenor
up 44 %
Chinese tighten licence laws
From Owen Hughes in Sydney
The Cable and Satellite Broadcasting Association of Asia (Casbaa) has welcomed
moves by the Hong Kong government to introduce legislation that will make possession
and commercial use of set top boxes designed for overseas pay TV reception illegal.
The Legislative Council has been asked to consider new laws that will tighten
the control of the unauthorised reception of licensed programme services. In
addition, legislators will be asked to strengthen laws against the unauthorised
reception of satellite TV signals by private individuals.
The news comes in the week after two companies supplying satellite TV receivers
agreed to pay damages to five channel providers who had taken civil action against
them. The five, STAR, CNN, Turner Entertainment Networks Asia, ESPN STAR Sports,
Discovery Networks Asia and National Geographic Channel Network Asia sued the
Hong Kong-based companies for selling consumers set top box technology capable
of receiving signals from pay TV operators in Malaysia, the Philippines and
Thailand. Five more cases are still before the Hong Kong courts.
The five channels based their case on the issue of copyright, citing the failure
of the companies to gain their permission to carry signals aimed at one market
into Hong Kong, and for failing to pass on any fees for their use. Currently,
it is not illegal to watch signals reaching Hong Kong from other markets.
Casbaa believes the proposed legislative change will radically change the mindset
of TV viewers and anyone attempting to sell pirated signals. "The new sanctions
on the possession of decoders for commercial purposes are particularly welcome,"
said Simon Twiston Davies, Casbaa CEO.
"The new legislation will help with the public recognition of the importance
of intellectual property rights. This is a great start, but it will require
political will as well as public support. Casbaa looks forward to working with
the Hong Kong government to create a better IPR environment."
"We also welcome the strengthening of the law regarding the unauthorised reception
for private usage. This sends a clear message to the community that even the
private reception of signals via an unauthorised decoder is not acceptable."
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RTVE
goes for US cable market
From David del Valle in Madrid
The state-owned Spanish broadcaster RTVE is breaking into the US cable business.
The company has signed an agreement with Comcast, one of the largest US cable
operators with more than 21 million subscribers, to distribute its news channel
'Canal 24 horas,' 'TVE Internacional' and documentary channel 'Grandes Documentales.'
TVE Internacional is the first to start its broadcasts through Comcast reaching
around 90,000 subscribers, the other channels will start transmissions within
the next few weeks. With this new deal, RTVE - which since 2000 has been distributed
in the States through DirecTV and Echostar - strengthens its position in this
market with more than 37 million Hispanics.
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Ergen
praises New Corp deal
EchoStar's CEO, Charlie Ergen, welcomed Rupert Murdoch's News Corp's acquisition
of DirecTV because it could help expand the satellite television industry. The
FT reported Ergen as saying that if regulators approve News Corp's bid for Hughes'
DirecTV unit, it could strengthen the satellite industry's position against
cable. "It is clear News Corp's entry would be a negative for cable. It may
or may not be a negative for EchoStar."
Although EchoStar lost the battle for the control of the satellite operator
after regulators obstructed the deal, Ergen said he had a "personal relationship"
with Murdoch that was better than his relationship with Hughes, DirecTV's current
owners. He reportedly indicated that Murdoch's company would manage DirecTV
better than Hughes by controlling piracy - which would benefit the entire satellite
TV industry.
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Vodafone
starts Irish 3G trials
Vodafone Ireland has opened its UMTS network for commercial trials. The company
will now begin testing its W-CDMA services with a select group of its business
customers. These trial users will be supplied with a Nokia 6650 handset, which
will work on both the W-CDMA and 2.5G GPRS networks.
However the commercial roll out of third generation mobiles in Ireland will
be slow, according to Vodafone which has so far covered one-third of the population
in its franchise areas, including major cities such as Dublin, Galway, Cork
and Limerick. Vodafone Under the terms of its 3G licence Vodafone must roll
out its 3G network to 33 per cent of the Irish population by June 2006 and 53
per cent by June 2008. It paid a total of E114.3 million for its 'B' licence,
of which E44.4 million was paid up-front.
In terms of pricing Vodafone Ireland is offering an introductory 3G/GPRS monthly
subscription package for E11.99 per month plus E0.003 per kb of data transferred
or pay-as-you-go usage at E0.02 per kilobyte up to 512kb and then E0.05 per
kilobyte thereafter. There is a minimum 10kb charge per GPRS/3G connection.
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Vivendi,
multiple choice?
Vivendi Universal's CEO, Jean-Rene Fortou, is said to be studying a proposal
from the company's lawyers to sell and buy back parts of its US entertainment
business to avoid tax liabilities of up to $2 billion.
The idea of a sale and repurchase is an effort to avoid break-up liabilities
Vivendi would face if it split up the subsidiary combining Universal Studios,
television and theme park assets.
Meanwhile the troubled media group has received two offers from French funds
for its chain of cinemas, UGC - of which owns 55 per cent. The offers for UGC's
92 cinema theatres in six countries come from LBO France and CDC Ixis, but Paribas
private equity arm PAI withdrew without making an offer, French newspaper Les
Echos reported.
Whilst these issues are resolved, Vivendi will have to pay $132 million in damages
to independent record label TVT Records. TVT filed a lawsuit against Vivendi
Universal's Island Def Jam unit accusing Island Def Jam and its Chairman, Lyor
Cohen of reneging on a deal that would have allowed TVT to release an album
featuring rap artist Ja Rule. Both were found liable for interference with contract
and copyright infringement.
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CSA
greenlights K-Mobile-backed TV channel
A new youth channel will soon be available on Canal Satellite. Its name is Kiwee
TV and it's owned by mobile phone operator K-Mobile that intends to tie in teen
programming with its mobile services and website. France's supervisory body
Conseil Supârieur De L'Audiovisuel (CSA) has approved the channel, according
to C21 Media. As France's first interactive youth channel, programming will
be accompanied by simultaneous online activities.
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New
Skies, Q1 2003 results
Netherlands-based satellite operator, New Skies Satellites, reported its Q1
results with a slight improvement to the same period last year. Revenues were
$52 million, representing an increase of $0.2 million as compared to the same
period in 2002. EBITDA was $29.0 million, and net income was $3.6 million, compared
to a net loss of $17.0 million in the same period in the prior year.
Commenting on the quarter, New Skies CEO Dan Goldberg said: "New Skies has delivered
yet another solid quarter in terms of revenue, EBITDA and net income results.
As a result, we have been able to grow our EBITDA margins over the period".
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Canadian
cable distribution revenue up
From Gail Chiasson in Montreal
Canada's cable distribution revenues reached more than E2.4 billion (Cdn$3.9
billion) in 2002, representing a five year growth of 41.1 per cent.
The figure was announced recently by the Canadian Radio-television and Telecommunications
Commission as part of a new overall report on the broadcast distribution industry
in Canada. The CRTC is the independent public authority that regulates and supervises
broadcasting and telecommunications in Canada.
Cable subscription revenues alone reached more than E2.1 billion (Cdn$3.4 billion)
in 2002. Other revenues for the cable industry, including those from highspeed
Internet, reached more than E230.4 million (Cdn$367.3 million) in the same period.
However, over the five-year period (1998-2002), the number of basic cable subscribers
decreased by 3.2 per cent, falling from 7,247,709 subscribers in '98 to 7,015,041
in '02 - a drop that can be largely attributed to the growth in satellite TV
distribution.
Both Direct-to-Home (DTH) distribution and Multipoint Distribution Systems (MDS)
saw a significant increase in their revenues and number of subscribers. Total
revenues for DTH and MDS, E27 million (Cdn$43.1 million) in 1998, reached close
to E590.4 million (Cdn$941 million) in 2002. The number of subscribers went
from 227,005 to 2,007,762 in 2002.
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Telenor
up 44 %
Telenor, Norway's biggest telecoms group, reported a 44 per cent jump in first
quarter core and forecast "significant improvement" for 2003.
EBITDA rose to E527 million in January-March from NOK 2.9 billion (E370 million)
in the same quarter of 2002 and beat analysts' forecasts of NOK 3.8 billion
(E 483 million).
The TV operations increased revenues by 73 per cent to NOK 1,138 million (E144
million compared to the first quarter a year earlier) the improvement related
to the consolidation of Canal Digital.
Telenor's revenues increased by nine per cent to NOK 12.6 billion (E1.6 billion)
in the first quarter of 2003 compared to the first quarter of 2002. In the same
period operating profit increased from NOK 602 million (E76.5 million) to NOK
1,475 million (E187 million).
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Wednesday
7th May
Murdoch
eyes PanAmSat and HNS
Spain:
one platform, two satellites and STBs
Saban wants exemption in takeover
rules
Japanese cablecos delay digital
'3'
Sweden launched
Tandberg
Q1 turnarond
Noos
downsizes ready for sale
EchoStar,
Q1 profit
Conax
inks deal with MediaCorp
Aaron
heads Gemstar-TV Guide
Murdoch eyes PanAmSat and
HNS
In its application detailing its proposed takeover of DirecTV and Hughes sent
to the Federal Communications Commission, Rupert Murdoch's News Corp also covered
the other Hughes units - PanAmSat and Hughes Network Systems (HNS), according
to Sky Report.
The media giant told the FCC late last week that there will no competitive harm
if it controls the two non-DBS businesses. If News Corp takes over the 81 per
cent stake in PanAmSat controlled by Hughes, the new ownership structure won't
"increase FSS (fixed satellite service) concentration, nor will it raise any
prospect of competitive harm in the MVPD (Multichannel Video Program Distribution)
market," News Corp told the FCC. For similar reasons, potential control of HNS
raises no issues of competitive harm, the company said.
News Corp also said it's considering how it could use HNS' SpaceWAY project,
a Ka-Band endeavour that's expected to launch service next year, to extend local
TV services for DirecTV into more DMAs.
Murdoch is expecting to make annual savings of $610 million-$765 million with
the deal. In a joint filing to the FCC, News Corp and General Motors, Hughes's
parent company, reportedly said the savings would be re-invested to build a
significant satellite competitor to America's dominant cable-TV groups.
The FCC has six months to review the application "for authority to transfer
control" of Hughes to Fox Entertainment Group, the US TV and studio business
in which News Corp holds 80.6 per cent.
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Spain:
one platform, two satellites and STBs
From David Del Valle in Madrid
Spain's two digital satellite platforms, Sogecable-owned Canal Satelite Digital
and Telefonica-controlled Via Digital, are set to start their merged operations
from this Summer under a single brand and with a common programming line-up
of more than 160 channels, but using two different satellites Hispasat (Via
Digital) and Astra (Canal Satelite Digital) and different decoders.
Sogecable and Telefonica, have decided to initially use both satellites to avoid
migration costs to one of them and delays in the launch of the new merged platform.
Current contracts with satellite operators will remain until mid 2004 when the
new platform will choose one of them with Hispasat, shared by Telefonica, as
the most likely candidate to win the contest.
Similarly, the merged company will be using two different set-top-boxes: the
simulcrypt used by Canal Satelite and the Via Digitals multicrypt. The platform
plans to upgrade both boxes in the future to include new added-value services
until the election of one decoding system to be used on MHP. The new platform
is likely to carry out a massive campaign from September to promote its new
programming line-up with cinema and sports as its main flagship.
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Saban
wants exemption in takeover rules
Haim Saban, the US investor who is acquiring a controlling stake in ProSiebenSAT.1,
has requested an exemption from German takeover rules forcing him to bid for
the company's outstanding shares, the FT reported.
Saban has filed a request for an exemption with BaFin, the chief German financial
services and takeover regulator. Since January 2002, any investor whose holding
rises above 30 per cent of a listed company's equity has had to tender for the
outstanding shares, at least matching the original offer price.
Saban is offering about E525 million for a 36 per cent stake. ProSiebenSAT.1's
dual share structure means this carries 72 per cent of the votes, above the
level that triggers a mandatory offer. In the filing, however, his lawyers argue
that ProSiebenSAT.1, which is due to report a first-quarter loss and a 15 per
cent drop in sales next week, is a restructuring case and therefore qualifies
for a "Section 9" exemption.
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Japanese
cablecos delay digital
From Owen Hughes in Sydney
Japan's cable TV providers are delaying the retransmission of digital terrestrial
signals beyond the December 1 start up date because of concerns that insufficient
numbers of consumers are ready for the technology.
The country's largest cable operator, Jupiter Telecommunications, has yet to
decide if it will retransmit digital terrestrial signals from December 1, and
many others among Japan's 300 operators are warning of difficulties in making
the change.
The operators say that not enough TV sets are equipped with digital tuners and
even after December 1, consumers are unlikely to buy digitally-compatible sets
in large numbers because of the perceived price barrier.
However, some cable operators will be ready for the digital launch; Its Communications
in Tokyo which operates in areas already covered by railway lines, wants to
transmit the upgraded signals to its customers at launch, as long as the terrestrials
it carries agree.
It remains unclear if the cable operators that currently serve more than 21.3
million homes in Japan will subsidise digital tuners, or ask subscribers to
pay.
Cable TV was first introduced in Japan to allow homes in remote and mountainous
areas to receive transmissions before spreading to cities where it also serves
viewers living in high-density urban areas who may have suffered impaired transmissions.
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'3'
Sweden launched
Hutchison Whampoa's '3' Sweden, the Nordic third generation mobile operator
that launched this week, started taking pre-bookings in the first retail outlets
in their national distribution network and in their stores at Stureplan in Stockholm,
Kungsportsplatsen in Gothenburg, and Hamngatan in Malmoe.
'3', the first Swedish mobile carrier to offer 3G services, have also started
a marketing campaign based on outdoor advertisement, TV, internet, newspaper,
magazines and tactical activities to meet with customers.
Customers who pre-book the mobile before 10 June get the NEC e606 for SEK 3500
(E385) and the NEC 808 for SEK 4400 (E484). Three said around 5,000 people who
have expressed interest will get handsets over the next few weeks.
'3' will offer voice coverage in areas outside its 3G network through a roaming
agreement with Vodafone Sweden until its own network is complete. The agreement,
doesn't include mobile Internet services so '3' subscribers won't be able to
send MMS when using Vodafone's network.
The company currently has a 3G network covering about 50 per cent of the Swedish
population.
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Tandberg
Q1 turnarond
For Q1 2003, Tandberg Television recorded revenue of E29million compared to
E34million in the same quarter last year but an operating profit of E1m compared
to a loss of E2.5million in Q1 2002. The turnaround came as the company's operating
costs dropped to E12million as the full impact of the cost reductions made in
2002were delivered.
Global economic uncertainty continues to hinder substantial growth in Tandberg's
core market segments said the company which has, nonetheless, the retained its
market leader position in the traditional Contribution and Distribution digital
broadcasting segments.
In April at NAB Tandberg launched a number of new products including a real-time
hardware encoder for Windows Media 9 Series, a High Definition Encoder, High
Definition Receiver and Broadband Encoder.
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Noos
downsizes ready for sale
From Sotires Eleftheriou in Paris
Noos, the largest French multiservices cable operator, has just achieved its
target of 35 per cent volunteers for redundancies on generous terms (an indemnity
of 13 months salary with a minimum of E19,000), from a total payroll of 1100.
The company opened the request for departures on March 21 and estimates it got
the target number by the beginning of May.
The next phase will be a profound restructuring based on a clear strategy. However,
this is something of a moot point. Over the past year, Noos has stopped all
investment in its network, even incurring massive penalties in the case of the
Paris suburban network. It has cut customer relations to a minimum, leading
to protracted waits on premium rate phone lines to get service, since e-mails
requests only get an automated answer referring the client to the hotline. Ironically
(another sign of incoherent strategy) the waiting-time message invites the client
to use e-mail for fast and free service. Network quality has deteriorated and
the network is down for long periods almost every day. Noos is only managing
to hold on to its Internet clients (which it had long hoped would be its killer
application) by means of a cumbersome and expensive procedure for leaving. Not
surprisingly, feeling is turning against the operator.
Noos has also embarked on a new anti-piracy campaign, which blocks the set-top
boxes of anyone who has used a pirate viewing card. Affected viewers have to
phone Noos (20 minutes at E 0.34 a minute) to get the set-top box unblocked
and may incur a penalty fee. This appears to be effective, knocking out stolen
set-top boxes and discouraging the use of pirate cards, but may be backfiring
as there have been reports of honest clients also being knocked out.
Noos have had heavy losses, E26 million, about 10 per cent of turnover, in 2002.
Cumulated debts are E793 million. Suez, Noos's main shareholder (50.1 per cent)
no longer wants to finance the deficit and wants to sell. But selling is problematic,
in view of the regulatory hurdles and the debts.
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EchoStar,
Q1 profit
US satellite operator EchoStar Communications reported a Q1 profit, thanks to
a double-digit increase in revenue and more subscribers at its Dish Network.
The Dish Network satellite television service added approximately 350,000 net
new subscribers during the first quarter of 2003, reaching a total of approximately
8.53 million subscribers as of March 31, 2003.
The company reported net income of $58 million, compared with a year-earlier
net loss of $35 million. Revenue rose 24 per cent to $1.36 billion from $1.1
billion a year earlier. Last year's results included $58 million in accounting
charges related to an equity investment in Vivendi Universal.
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Scientific-Atlanta
adds new EMT
Scientific-Atlanta announced the addition to its Prisma II(tm) optical network
family, a 1550nm externally modulated transmitter (EMT) that cost-effectively
delivers high performance over long distances, making it easier to implement
and service point-to-point or point-to-multipoint applications.
The Prisma II 1550nm Extended Reach EMT, now available for shipment, is a flexible
solution for delivering quality video and data without the need for re-lasing.
It can be used in applications that require transmission at distances over 60
km and at a price that is lower than similar long distance products. The redundancy
features may eliminate the need for costly optical switches.
"This addition to the Prisma II family gives operators even greater flexibility
in video and data delivery, based on the design and demands of their network,"
said Paul Connolly, Vice President of marketing and network architectures at
Scientific-Atlanta. "
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Conax
inks deal with MediaCorp
Conax, a supplier of conditional access technology for digital TV, has entered
into a contract with MediaCorp Technologies in Singapore. The Conax CAstream
will enable MediaCorp Technologies to broadcast IPTV with conditional access.
MediaCorp Technologies provides broadcast transmission infrastructure r for
digital and analogue broadcasting services in Singapore. The company will use
Conax CAstream USB tokens as the hardware security feature for this pioneer
project.
"This agreement sees the entry of Conax into the Singaporean market and strengthens
our position in Asia," says Ole Hansvold Executive Vice President at Conax.
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Aaron
heads Gemstar-TV Guide
Gemstar-TV Guide International Inc named Ian Aaron President of a new unit called
TV Guide Television Group, which includes its TV Guide Channel and interactive
program guide divisions.
Aaron, 42, joined Gemstar-TV Guide from TVN Entertainment, where he was President
and CEO, and responsible for TVN's core pay-per-view entertainment, digital
TV services and direct response advertising business units.
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Tuesday
6th May
Sun
Media pulls out of Taiwan
Crown
Castle Q1 loss narrows
Cox
loss despite sales gains
Diller: $720m dotcom deal
Foreign
ownership OK for Canada
Sun
Media pulls out of Taiwan
From Owen Hughes in Sydney
Hong Kong-based broadcaster Sun Media has backed out of a joint venture with
a Taiwanese company after admitting that the union violated the terms of the
landing rights for its satellite TV feeds into mainland China.
Sun Media announced this week that the Chinese regulator, the State Administration
for Radio, Film and Television (SARFT) had restored its landing licence and
that the company had resumed transmissions via satellite to China.
This was after Sun Media had assured SARFT that it had withdrawn from a programming
joint venture with Taiwan's Eastern Broadcasting Company (ETTV). China objected
to the union because of longstanding strains in its relations with Taiwan which
it has regarded as a renegade province since the end of the Chinese civil war
in 1949. Any cooperation with Taiwanese companies by those wishing to do business
in China is subject to intense scrutiny by Beijing.
SARFT's decision means that Sun Media can renew transmissions of both Sun TV
and Jet TV into compounds for foreign residents and into hotels with three or
more stars.
Analysts commented that the episode suggests that although China has cautiously
opened its satellite and cable TV sector to foreign channel providers like Bloomberg
Television and AOL Time Warner's CETV, it will not tolerate any deviation from
the rules they operate under.
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Crown
Castle Q1 loss narrows
Crown Castle International Corp, which operates wireless communications towers,
has posted a narrower first-quarter loss, citing recurring tower and broadcast
business and reduced capital expenditures.
The Houston-based company reported a net loss of $83.4 million, or 38 cents
a share, compared with a net loss of $123.5 million, or 56 cents a share, a
year ago. Revenue for the quarter was $216.7 million, down from $220.6 million
a year ago, and net cash from operations was $5.9 million, compared with $16
million a year ago.
Crown Castle forecast net cash from operations of $70 million to $80 million
in the second quarter, $160 million to $200 million for 2003 and $140 million
to $210 million for 2004. The company operates 15,500 wireless communication
sites worldwide.
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Cox
loss despite sales gains
Cox Communications, the US broadband services provider, grew its customer base
by 2 per cent and boosted revenues by 16 per cent in the first quarter, but
reported a net loss as high capital costs, interest expenses and investment
losses eroded earnings.
Total revenues for the first three months of 2003 were $1.37bn, compared to
$1.18bn over the same period in 2002. The company's bottom-line loss was $29m,
but operating cash flow was $479m, up 22 per cent from $392m in 2002.
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Diller:
$720m dotcom deal
Barry Diller has completed the all-paper acquisition of LendingTree, an online
loans and mortgage exchange, for his growing dotcom group.
The $720m LendingTree joins the USA Interactive internet empire which includes
Expedia, the travel website, and Ticketmaster. The deal confirms the transformation
of one of the US's best-known media entrepreneurs into one of the new kings
of online commerce.
The all-stock transaction, pitched at a 40 per cent premium to LendingTree's
closing price on Friday, was timed to take advantage of a surge in USAi's share
price on the back of the return of bubble-era valuations to Wall Street.
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Foreign
ownership OK for Canada
From Gail Chiasson in Montreal
A House of Commons industry committee in Canada has recommended that foreign
ownership restrictions should be dropped for both broadcasters and telecommunication
companies.
Currently, foreign ownership is restricted to 20 per cent of operating stock
of telephone and cable companies, and 33 per cent of a holding company, basically
producing a limit of 46.7 per cent at the operating level.
The committee was originally asked to look at foreign ownership of telcos, but
apparently found that it couldn't look at them in isolation. Because of technological
convergence, telecommunications common carriers and cable television, satellite
TV and multipoint distribution systems couldn't be separated on the basis of
their underlying distribution networks or their services.
The committee report also has recommended that the government should strike
a special parliamentary committee to look at the whole framework governing telecommunications
and broadcasting.
"We are pleased the committee understood how intrinsically linked the cable
and telecommunications industries are and has moved to provide competitive equity,"
says John Tory, chair of the Canadian Cable Television Association and chairman
and CEO of Rogers Cablesystems. "We urge that the government move quickly to
implementation."
However, some industry pundits forecast that no change will be made until after
the retirement of Prime Minister Jean Chrâtien, expected in February, 2004.
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Monday
5th May 2003
News Corp, Telepiu deal
ends legal conflict?
Diller's
USAi lowers net loss
CASBAA Convention in October
Pace
appoints CEO
BSkyB and Telewest in fee pact?
EchoStar,
new summer deals
Goldpocket
buys Watchpoint
Atlantic
Telephone deploys DVB system over cable
Telstra
starts cable work
News
Corp, Telepiu deal ends legal conflict?
From Sotires Eleftheriou in Paris
News Corporation and Telecom Italia last Thursday (1/5/03) formally completed
the acquisition of Vivendi Universal's Telepiu satellite pay TV platform in
Italy creating a combined Telepiu and Stream platform renamed Sky Italia. As
part of the deal all litigation between the parties, including Stream's litigation
against Telepiu and Vivendi Universal subsidiary Canal Plus' litigation against
NDS, was terminated. In a statement NDS said Canal Plus has filed the stipulation
for dismissal of the action at the US District Court, Northern District of California.
However in Paris Friday's Le Monde reported that resolving the legal issue may
not be that simple. While Canal Plus agreed to end the civil case against NDS
and to destroy all the incriminating documents in its possession at the time
of the closure of the sale, the paper reports that on April 21st US Attorney
James Spertus, who is investigating possible criminal proceedings against NDS,
filed to recover the documents before their destruction and to have them communicated
to the FBI by 5th May, and that Canal Plus and its parent Vivendi have accepted
this request.
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Diller's
USAi lowers net loss
Barry Diller's USA Interactive reported a positive first-quarter with narrower
net losses and a 40 per cent increase in revenues. In particular its online
travel and ticketing services, Expedia, Ticketmaster and Hotels.com, boosted
results.
The company said it expects to meet or beat its 2003 adjusted earnings per share
outlook of 75 cents a share. However it warned that net earnings would be "significantly
lower" than its previous estimate of 27 cents a share due partly to charges
related to its stake in Vivendi Universal Entertainment.
For the first quarter, USA, said its net loss after one-time charges narrowed
to E99 million from a loss of E391.2 million a year ago.
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CASBAA
Convention in October
The Cable & Satellite Broadcasting Association of Asia (CASBAA) has announced
details of the tenth annual CASBAA Convention to be held in Hong Kong, October
29th to 31st.
Convention Chairman, Bloomberg Television's James Ross said: "The event will
once again be an excellent opportunity for the entire cable and satellite TV
industry to get together, debate the issues, share experiences, and build closer
business relationships."
"There will be top-rated keynote speakers, sessions on the industry's core businesses"
the company said and Ross unveiled that this year's party highlight will be
a Halloween ball. This year's Convention coincides with the tenth anniversary
of the launch of pay-TV services in Hong Kong and more than a decade of cable
development in China.
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Pace
appoints CEO
UK set-top-boxes vendor Pace Micro Technology has announced the appointment
of John Dyson to the position of Chief Executive with immediate effect.
Seven months ago, Malcolm Miller revealed he was stepping down from the post.
Dyson has been acting CEO since January. Dyson joined Pace in November 1997
as Finance Director after spending 25 years in the electronics industry, including
roles at LSI Logic, Commodore Corporation and Case Communications plc. Dyson
is also a Non-executive Director of XP Power plc.
Sir Michael Bett, Pace's chairman, said: "Since taking on the role of acting
CEO in January John has directed a significant reorganisation and cost-reduction
programme. The board believes the company is now in a good position to take
advantage of new business opportunities as they arise."
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BSkyB
and Telewest in fee pact?
UK cable operator Telewest has reportedly reached a new agreement with BSkyB
over the rate at which it can sell the satellite operator's premium sports and
movie channels.
According to the Guardian newspaper Telewest MD Charles Burdick said that the
office of fair trading is examining the proposal and could give approval within
the next month. "It's a win-win deal for both sides. It contains the necessary
incentives for us to market Sky's channels and will be valuable to them," Burdick
commented.
Only 300,000 of Telewest's 1.3 million cable television customers take Sky Sports
or Sky movie channels but the deal will allow them to be sold at a discount
and the cable firm to still make a worthwhile margin. Burdick said the extra
demand generated would lift the average amount spent each month by a Telewest
customer from £42 to £47 (E61-E68).
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EchoStar,
new summer deals
US media company EchoStar Communications, is to offer customers two new high
definition TV networks, HDNet and HDNet Movies from this summer. HDNet and HDNet
Movies will be available to customers using DISH Network's new SuperDish.
The company also revealed 42 new designated market areas where it plans to launch
local TV channels. This will bring the total number of markets the company's
DISH Network serves with local channels to 106 by year end.
"DISH Network is enriching the home theatre experience everywhere by delivering
more HD sports, movies and special events like those offered by HDNet," said
EchoStar Chairman and CEO Charles Ergen. "By developing the capability for SuperDish
to provide up to 50 HD channels, DISH Network will offer consumers a superior
alternative to the dominant cable companies."
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Goldpocket
buys Watchpoint
GoldPocket Interactive, a provider of two-way interactive television (iTV) technologies
and services in North America, has acquired WatchPoint Media, creators of the
StoryTeller iTV authoring software.
With this move GoldPocket enters the European iTV market. The acquisition brings
together the solutions in iTV authoring, broadcast, delivery, and response to
enable producers and broadcasters to deliver compelling interactive programming
with unprecedented levels of viewer interaction for set-top, Internet, and wireless
platforms.
GoldPocket services combine ease of production with real-time, two-way interactivity
via the company's EventMatrix interactive network. GoldPocket's European headquarters
will be based in London and overseen by Matt West, WatchPoint Media UK Vice
President of Sales and Marketing and formerly Head of Sales, Programmers at
NTL Broadcast, Media Solutions.
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Atlantic
Telephone deploys DVB system over cable
US based telco Atlantic Telephone Membership Corp launched digital TV services
over its existing coax network using VideoTele.com's digital headend platform.
The system uses the digital video broadcasting standard for cable (DVB-C).
Atlantic is using a combination of digital headend equipment from VideoTele.com
and Teleste Corporation of Finland to transition its analogue cable TV network
to a system that supports DVB-C compliant digital TV and advanced entertainment
services.
VideoTele.com served as the system integrator and deployed a solution using
set-top boxes from UEC Technologies; a subscriber management system from ETI
Software and a conditional access solution from Nagravision.
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Telstra
starts cable work
Australia's Telstra has launched its latest big cable-laying project - a massive
multimedia link between Victoria and Tasmania, the local press reported. The
250 km fibre optic cable, which carries more than 10 gigabits per second, would
meet communication needs "far beyond the foreseeable future", Telstra chief
executive Ziggy Switkowski said.
Speaking on board the French cable-laying vessel Ile de Batz, Switkowski said
the connection, named Bass Strait 2, was scheduled to be in place and operating
by the middle of July. French optical cable supplier Alcatel won the E24 million
project, which is the second Telstra multimedia cable to cross Bass Strait.
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