NEWS
Monday
1st September 2003 to Monday 8th September 2003
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Friday
5th September 2003
Man
Utd share holder looks to block BSkyB deal
Vivendi
unwinds Diller holding
Star
News still not Indian enough
Spain:
multi-channel TV ratings headway
Behind
bars channel
WSTV
fails to score
Pace
Clinches Premiere Contract
Fox
Cable upgrades Harmonic
Man Utd share holder looks to
block BSkyB deal
Dermot Desmond, the millionaire football investor, was on Wednesday night poised
to launch legal action in an attempt to block the Premier League's E1.46bn rights
deal with BSkyB.
Desmond, who controls Celtic football club and owns a stake in Manchester United,
will lodge a formal objection with the Office of Fair Trading and the European
Commission in the next couple of days. He told the Financial Times the deal
contravened European law because the Premier League had acted as a cartel.
He is also concerned that the bidding process for the Premier League's rights
was insufficiently competitive, with BSkyB apparently bidding unopposed. His
concerns are shared by the commission, which continues to scrutinise the deal.
"The question is, how many bids did the Premier League receive for each of the
packages? What was the competition for BSkyB? If there wasn't any then it was
not a pure tender as the OFT and the Treaty of Rome regulations see it."
Under football rules in England and Scotland, clubs are not allowed to sell
their rights individually and instead bundle rights with those of their rivals.
Desmond's intervention comes as the Premier League is about to negotiate the
sale of its overseas media rights.
"Football media deals are negotiated individually in Spain, Holland and Italy
and it would be better for football if they were also negotiated individually
in the UK," said Desmond.
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Vivendi
unwinds Diller holding
Vivendi Universal is taking on the financial risk of unwinding its agreements
with Barry Diller, the interactive services mogul, as the French group attempts
to clear the path for a merger of its US entertainment assets with NBC.
Apparently Vivendi and NBC have agreed that the French group will assume the
cost of unwinding $2.5bn of preference shares held in a Vivendi subsidiary by
Mr Diller and InterActiveCorp, his holding company.
The deal should prevent Diller from blocking the merger between NBC and Vivendi
Universal Entertainment, the holding company for its US film, television and
theme park businesses.
Diller has held the preference shares in VUE since 2001, when he negotiated
a deal to transfer ownership of his US cable television channels to Vivendi.
The shares effectively give him the right to block any changes to VUE's structure.
People close to the deal said Vivendi had taken out Treasury securities to cover
the $800m face value on Diller's so-called A-class preferred interest shares.
The company also has more than 56m shares in InterActive, with a current face
value of more than $2bn. These could be used to cover the remaining $1.7bn liability
of the B-class stock.
As a result, the French group should be able to unwind its relationship with
Diller without drawing on the $3.8bn in cash that it expects to receive on completion
of the NBC deal.
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Star
News still not Indian enough
From Owen Hughes in Tokyo
Hong Kong-based STAR's Indian service has been told by the government in New
Delhi that it must have a single dominant local shareholder able to demonstrate
the financial clout and editorial experience to run a news channel.
In the latest installation of a long-running controversy about the ownership
of a holding company that runs the influential Hindi-language Star News India,
officials have told STAR India that its corporate structure does not meet official
criteria.
India's Information & Broadcasting Ministry wants STAR India's Media Content
and Communication Services (MCCS) to demonstrate that an Indian interest has
a 51 per cent stake.
Officials no longer approve STAR India's claim that it owns just 26 per cent
of MCCS with the remainder owned by prominent Indians. The about face is partly
based on intense lobbying by STAR India's rivals who have been alarmed at the
way the channel has reached number two in the national ratings.
Under a newly clarified set of regulations issued this week 75 per cent of the
MCCS board of directors and key management and editorial personnel must be Indian
nationals, in addition to being able to show it has the financial resources
to run the TV channel.
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Spain:
multi-channel TV ratings headway
From David Del Valle in Madrid
Cable, satellite and local TV are increasingly strengthening their positions
in the ratings in the Spanish TV market. In August, these networks, identified
as others in the ratings, got an average share of 10,1 per cent for the first
time in their history. Of which, 4,3 per cent corresponded to the new single
digital DTH platform, Digital Plus; local TV stations took a share of 3,2 per
cent and others (cable), 2,6 per cent.
As for the conventional TV market, the state-owned channel La Primera led the
ratings with 22,6 per cent, followed by Antena 3 TV, with 20,2 per cent, Tele
5, with 18,6 per cent and regional channels represented by Forta with 18,5 per
cent. Football is still the most widely watched content with foreign series
like The Simpsons and Smallville taking drawing this time large audiences.
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Behind
bars channel
From Shveta Malik in New Delhi
In an effort to ease tension among inmates at Thailand's overcrowded prisons,
one of country's main prisons will begin operating an in-house cable television
station that will feature news and entertainment shows hosted by the inmates.
Bang Kwang Prison Television (BKPTV) will begin broadcasting on September 5
and will feature a weekly one-hour live show featuring prisoners. The interactive
show will air wardens hearing inmates complaints, according to Somboon Madtramud,
head of the prison's administration department.
BKPTV will broadcast news and movies and music programmes daily for six hours
and entertainment programmes for four hours. The rest of the programming will
come from free-to-air television channels.
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WSTV
fails to score
From Gail Chiasson in Montreal
A Canadian specialty channel will bite the dust at the end of September when
WTSN, the women's sports network, will be closed down by its owner, CTV Specialty
Television Inc..
The station is being closed due to a combination of lower-than-expected growth,
limited access to advertising revenue, and the high cost of running a sports
service.
Founded in 2000, WTSN has covered major Canadian and international sports events
of all types, and showcased female athletes.
Some of the sports programming will find a new home at TSN, which will, for
example, increase its women's programming by broadcasting 27 hours of the Women's
Curling Tour and the remaining LPGA events that were scheduled for WTSN including
the Tour Championship.
The Edge, another specialty channel, was closed by its owner, Corus Entertainment
Inc., last June.
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Pace
Clinches Premiere Contract
Pace Micro Technology announced an order to supply digital set-top boxes direct
to Premiere, Germany's largest digital TV operator and only national pay-TV
broadcaster. Premiere will distribute Pace's digital satellite set-top boxes
direct to subscribers as it continues to successfully roll-out digital pay-TV
across Germany.
The contract is in addition to Premiere's award of a retail licence that enables
Pace to retail Premiere-enabled digital satellite boxes in the German market.
Premiere subscribers can choose to purchase Premiere-enabled set-top boxes in
retail or rent direct from the broadcaster. Approximately half of Premiere's
subscriber base currently owns a set-top box.
"Pace is delighted to have secured a second key business contract with Premiere,
Germany's largest digital TV operator," said Pace's Heinrich E. Haase, Area
Manager Central Europe. "Premiere's selection of Pace's digital set-top box
for its direct sales business demonstrates Premiere's confidence in Pace's digital
TV expertise."
Pace will supply Premiere its DS210 digital satellite set-top box with Nagravision
Conditional Access (CA). In addition to delivering Premiere's multichannel pay-TV
programmes and PREMIERE DIREKT, the broadcaster's pay-per-view channels, Pace's
set-top box will also provide access to Germany's free-to-air channels and provide
multi-angle TV services and an extended Electronic Program Guide (EPG).
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Fox
Cable upgrades Harmonic
Fox Cable Group, has upgraded its two broadcast uplink sites with DiviCom MPEG
video encoders and DiviTrackX statistical multiplexers. Now operational, the
Houston, Texas and Los Angeles, California facilities use the Harmonic systems
to deliver cable networks — including Fox Sports Net, F/X and other cable
programming — in digital video formats to thousands of video headends.
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Thursday
4th September 2003
Bertelsmann profits up
NBC
Universal deal makes new $40bn player
SBS
picks up Veronica
PCCW
gears up for new pay TV service
Five:
first time in the black
InCableNet
launches digital service in Mumbai
SingTel
offers 3G trial for free
Harmonic
introduces 3G VOD delivery solution
Boeing
selects Eutelsat for in-flight satellite connectivity
Bertelsmann profits up
For German media giant Bertelsmann, reduced losses at its book and music club
division Direct Group, and a good performance by the RTL television group and
restructuring across the company made up for relative weakness at the music
and publishing units. Bertelsmann repeated its forecast that full-year profits
would be up on last year's as it posted a first half EBITDA of E228 million
up 30 per cent on the same period last time.
RTL, Europe's largest broadcaster, reported first-half operating profit up 40
per cent to E253 million during the first six months of 2003, on a 5.2 per cent
rise in revenues to E2.2 billion. The broadcasting arm, whose large portfolio
of radio and television channels makes it a bellwether for the European TV advertising
market, also said it saw signs, especially in Germany, that the bottom of the
advertising recession may have been passed.
The seasonal nature of many of the group's businesses means second-half sales
and earnings are expected to be higher, meaning that Bertelsmann still expects
full-year ebita to top the E936 million posted in 2002.
First-half sales were down to E7.9 billion in the six months to the end of June,
compared with E8.8 billion in the same period last year.
Bertelsmann slightly reduced its net debt figure over the six months to E2.63
billion compared with E2.74 billion at the end of December 2002 - its highest
ever.
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NBC
Universal deal makes new $40bn player
Vivendi Universal has finally entered into exclusive talks with NBC, the broadcasting
arm of General Electric. The American television network's merger proposal would
create a new US media venture valued at more than $40 billion of which Vivendi
would own 20 per cent. The name of the new company is expected to be NBC Universal.
Edgar Bronfman Jr's consortium, which was the other bidder in the running for
Vivendi Universal Entertainment (VUE) is said to have bid more than $13 billion
in an attempt to recover the family entertainment empire, merged with Vivendi
three years ago.
Bronfman Jr said: "Now that VU's Board has decided to enter into exclusive negotiations
with GE/NBC, I am hopeful that VU's strategic direction will reward its employees
and shareholders for their patient and steadfast support."
Vivendi chose NBC after the two companies agreed a preliminary deal to fold
Vivendi's US film, television and theme park businesses into a new company which
would be controlled by GE.
Under the NBC proposal, Vivendi would receive $3.8 billion in cash on completion
and retain a 20 per cent holding in the enlarged group. Pro forma revenues for
the new company, which will also assume $1.6 billion of Vivendi debt, were estimated
on Tuesday at $13 billion with earnings of about $3 billion.
The two companies said the final deal, which is dependent on some more due diligence
and the completion of contracts, could be signed by the end of the month.
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SBS
picks up Veronica
SBS Broadcasting's Dutch subsidiary has acquired the media assets of Veronica
Holding in The Netherlands. Under the transaction, SBS has obtained the right
to use the "Veronica" brand for television and related uses and will re-launch
and re-brand its Dutch television channel V8 as Veronica in mid-September 2003.
In addition, SBS has acquired the company that publishes the weekly television
and radio guide Veronica Magazine. In 2002, Veronica Magazine produced revenue
of over E60 million and had operating income of approximately E11 million. Veronica
Magazine is the largest weekly publication in The Netherlands with a circulation
of approximately 1.1 million. As a result of this transaction, Veronica Holding
was issued a 10 per cent equity interest in SBS's Dutch subsidiary SBS Broadcasting.
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PCCW
gears up for new pay TV service
From Owen Hughes in Tokyo
PCCW has revealed how its soon to be launched pay TV service will work and it
predicted that the platform will be able to breakeven in as little as three
months.
Hong Kong's fixed-line telecoms leader plans to sign up 20,000 users a month
who will pay nearly E13 a month for a basic package of five channels with the
option of paying for 27 more at up to E4.5 each. Subscribers will receive a
free decoder.
Launching the service, COO Mike Butcher said it was initially aimed at PCCW's
480,000 high-speed Internet customers. He said that PCCW only needed to cover
the E103 cost of set top boxes and installation before they were able to begin
making a profit because the company could used the fixed line infrastructure
to deliver content.
The main competitor to PCCW will be i-Cable which marks its tenth anniversary
in November and has around 650,000 customers who pay an average of E28 in subscriptions
after selecting from a 62-channel offering. In addition Yes TV, City Telecom
and TV Plus are also offering pay TV in the former British colony, and a direct
to home satellite TV operation, Galaxy, is set to begin operations in November.
PCCW is using pay TV as another source of income as it sees its share of the
fixed-line telecoms market steadily fall due to competition with a 77 per cent
share in June, down from 82 per cent at the end of last year.
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Five:
first time in the black
UK's Channel Five, has posted its first operating profit since its launch six
years ago, and was the only UK terrestrial channel to improve its audience share.
Five, which is 65 per cent owned by RTL, helped the German broadcaster to improve
its share of the advertising market to 7.9 per cent from 7.3 per cent a year
earlier. Lord Hollick's United Business Media owns the other 35 per cent of
the channel.
Revenues at Five - which account for seven per cent of the RTL's turnover -
slid fractionally, which RTL attributed to the strength of the euro.
Also this week, Five appointed Dan Chambers as Director of Programmes. Previously
head of factual shows, Chambers replaces Kevin Lygo.
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InCableNet
launches digital service in Mumbai
From Shveta Malik in New Delhi
InCableNet, India's leading multi-system operator (MSO) and a part of the conglomerate
The Hinduja Group, has announced the soft launch of its digital TV services.
Mumbai is one of the Indian cities where CAS was scheduled for implementation
from September 1. InCableNet is branding its CAS services as INDigital. The
MSO has tied up with Nagravision for digital solutions, Tandberg for the hi-tech
digital headend, MagnaQuest for the subscriber management system, Germany's
TechnoTrend and Taiwan-based Wistron for set-top boxes. As an introductory offer,
the set-top boxes are being offered to subscribers for $76.
Nagravision is supplying a turnkey system for encryption of pay-TV services,
including CAS and smart cards for use in the digital set-top boxes. InCableNet
has laid an HFC (hybrid fibre co-axial) network in major areas of its operations
over the last two years. This enables it to reduce the number of headends to
just one from which it can control the entire city.
INCablenet is also in the process of applying for a licence to operate satellite-based
Headend in the Sky (HITS) system.
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BBC Food makes European cable debut
BBC Worldwide's food channel, BBC Food, is now available on cable for the first
time in Europe with its introduction on UPC Sweden. This agreement follows only
three months after the digital satellite launch of BBC Food in Europe and extends
channel availability to an additional 275,000 subscriber homes in Sweden.
Johan Cederbrant, Sales and Marketing Director, UPC Sweden, said, "We are constantly
looking at widening our range of channels and BBC Food offers a great example
of this by introducing the popular genre of food programmes and celebrity chefs
to our offering."
BBC Food is available as part of UPC Sweden's digital offering from September
1, 2003. BBC Food is also available in Denmark during September on the Wish
Channel of leading cable network, TDC, and on several other large cable networks.
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SingTel
offers 3G trial for free
Singapore Telecommunications Ltd (SingTel) announced that at least 100 of its
mobile customers will be able to enjoy selected 3G services for free in a month-long
trial starting end-December 2003. Customers taking part in the trial will be
picked from among those who register their interest.
The trial customers will be given free usage of three services - video calls,
video-streaming for faster downloads of video-clips and movie trailers, and
high-speed Internet access. Charges for voice calls, SMS, MMS and value-added
services will apply based on their existing SingTel price plans.
For the duration of the trial, the participants will be asked to provide feedback
online to SingTel on a weekly basis. Some will be asked to take part in focus
group interviews. The feedback received will be used to help SingTel plan the
commercial roll out of its 3G services.
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Harmonic
introduces 3G VOD delivery solution
Harmonic Inc introduced the third generation Narrowcast Services Gateway smart
edge devices, the industry leading video-on-demand delivery solution. Building
on narrowcast technology and expertise accumulated since the NSG was first launched
three years ago, Harmonic's new NSG 9000 series will enable cable operators
of all sizes to cost-effectively and reliably provision a broad range of narrowcast
services - from Everything-on-Demand to HDTV and switched broadcast.
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Boeing
selects Eutelsat for in-flight satellite connectivity
Connexion by Boeing, has signed a contract with satellite operator Eutelsat
for satellite transponder capacity for Connexion by Boeing's mobile broadband
information services.
Connexion by Boeing will lease capacity on Eutelsat's SESAT satellite, which
is located at 36 degrees East and provides a footprint stretching from the eastern
Atlantic Ocean across the European continent and as far east as Central Asia.
Eutelsat previously provided Connexion by Boeing with satellite capacity over
the North Atlantic and Europe during successful three-month service demonstrations
with Lufthansa and British Airways.
The provision of transponder capacity covering key areas of Europe and Asia
provides additional momentum for the full-scale introduction of high-speed connectivity
for airlines and passengers seeking real-time access to email, company intranets,
the World Wide Web and entertainment content in flight.
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Wednesday
3rd September 2003
Russia's
RBC-TV launched
Vivendi
set to pick NBC
US
telcos look for satellite partners
Noos
to slash Internet prices
Red
button turns on porn
Turner
plans thematic channels in Germany
DTV
channels initiate trial operations in China
TV
Networks support FCC's media rules
Dish
passes 9m customer milestone
OpenTV
names Execs
Russia's RBC-TV launched
Russia's first 24-hour business news channel, RBC-TV, started broadcasting yesterday.
The channel is the result of co-operative agreements with CNN International
and CNBC Europe. RBC-TV is to be "equal to leading Western news and analytical
TV channels and adapted for the Russian audience," the company said in a statement.
RosBusinessConsulting, a Russian business information agency founded a decade
ago, has secured $23 million for the project; $17 million from the agency itself
and the remaining $6 million through a private debt placement with Western investors,
according to the Moscow Times.
Its partnership agreements with London-based CNN International and CNBC Europe
were not mentioned at the preliminary launch in May, though CNBC employees had
been brought in to help train the new staff. The agreements allow RBC-TV to
broadcast some of their content and vice versa.
CNN will provide general world news coverage in exchange for the rights to use
RBC-TV's reporting. CNBC, meanwhile, signed a two-year agreement with RBC to
allow the network to translate and use its daily market reports from Europe,
Asia and the United States.
RBC-TV will broadcast in Russian only, said Yury Rovensky, General Director
of RosBusinessConsulting, adding that there are no plans to launch an English-language
service.
The channel will be broadcast to viewers in St. Petersburg and Moscow via satellite
providers NTV Plus and Kosmos TV, cable networks Comcor TV and Divo TV, as well
as via Internet provider Tochka.ru. The channel will initially be available
to 2 million viewers, but is hoping to expand its audience to 7 million to 8
million in its first two years.
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Vivendi
set to pick NBC
Vivendi Universal is expected to enter exclusive negotiations with one of the
two remaining bidders for its US entertainment assets this week. The struggling
French media conglomerate is said to favour NBC ahead of a rival offer led by
Edgar Bronfman Jr.
Vivendi executives were locked in talks on Monday with NBC in an attempt to
reach a preliminary deal to merge the French group's US film, television and
theme park assets with the broadcasting group, which is owned by General Electric.
The meeting comes a week after Vivendi's board chose to continue talks with
NBC and Bronfman Jr. But since then, NBC has firmed up aspects of its offer.
Under the deal proposed, Vivendi would retain at least 20 per cent of the enlarged
media group, which it could cash in over five years. The joint venture, would
assume VUE's debt of about $2.5 billion and would also allow Vivendi to monetise
part of its stake soon after the deal closes.
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US
telcos look for satellite partners
In an attempt to compete with cable TV providers, BellSouth Corp, the third-largest
US local-phone carrier, will offer Hughes Electronics Corp's DirecTV satellite
television to its customers. Starting next year, BellSouth will package hundreds
of DirecTV channels with the phone and Internet services it sells in the US.
BellSouth is under pressure to reverse six straight quarters of falling sales
as it loses lines to competitors, including cable TV companies that also offer
phone service.
SBC Communications has a $500 million agreement to offer EchoStar'S satellite-TV
service. Verizon Communications, the No 1 local-phone company, has said it's
seeking a satellite television partner.
The agreement may allow DirecTV, the biggest DTH broadcaster in the US, to increase
brand awareness and boost sales. DirecTV has 11.6 million subscribers. BellSouth
has 24.2 million local phone lines.
DirecTV will get revenue from BellSouth subscribers and BellSouth will receive
certain fees and commissions, said Bill Smith, BellSouth's chief product development
and technology officer.
BellSouth and DirecTV may also supply video content over the phone company's
fibre-optic cable network, which transmits calls and information at speeds faster
than over copper wires, according to the statement.
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Noos
to slash Internet prices
From Sotires Eleftherious in Paris
Noos, the leading but struggling French cable operator, is revamping the price
structure of its Internet offering in an attempt to gain market share over the
growing ADSL market. The new schemes will be offered in the Paris region and
in Toulon from the autumn. The entry level light Internet access will more than
double its bandwidth from 64 kb/s to 128 kb/s, without a price increase (currently
E19 a month).
Noos originally introduced a light internet offer over two years ago, priced
at E15 a month, designed to compete with dial-up access. The offer provides
always-on access without tying up the phone line at slightly higher speed (modem
access rarely achieves the theoretical 56 kb/s) at a price point equivalent
to the 20 hour all-inclusive (dial-up access) then on offer by the ISPs.
The company is also implementing a 25 per cent speed increase with a price cut
in other offers. The 128 kb/s access will be increased to 160 kb/s and the price
cut from E29 to E19,90 a month. The 512 kb/s access will be increased to 640
kb/s and the price cut from E39 to E29,90 a month; the 1100 kb/s access will
increased to 1280 kb/s and the price cut from E79 to E49,90 a month. In each
case the cable modem will be supplied free of charge (currently E90), installation
will also be free, and the contentious "activation charge" cut from E40 to E29.
Also on offer will be access to digital TV, for an extra euro a month plus eight
euros for decoder rental.
According to the press kit, all the new offers are available to existing subscribers
as well as new subscribers. However, not everyone at the Noos call center (via
a high priced premium line) seems to be aware of this and callers have been
told that the offer is for new subscribers only.
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Red
button turns on porn
Urban porn channel Pout Uncut is the first fully interactive adult television
channel in the UK. The enabling technology, including the new üred button registration'
capability, is provided by the Digital Interactive Television Group (DITG).
DITG's new iReg product allows Pout viewers to use free-to-air scheduling to
register for Pout Uncut's pay per night service for a specified time period.
Using the television remote control bypasses the need to sign-up and pay via
a call centre thereby encouraging spontaneity and enhancing anonymity, the companies
said.
Founder of Pout Uncut, Amanda Kiss, comments: "In this market, we accept that
people are often more comfortable remaining anonymous. The red button registration
is a great example of how, using the latest technology, we are able to enhance
the services that Pout Uncut provides its viewers. We also hope that the new
offering will tempt more people to register and see what Pout has to offer."
Neil MacDonald, managing director at DITG added: "Pout Uncut understands its
market perfectly and is using DITG's interactive TV solutions to enhance the
audience experience. Although the technology behind the application is complex,
the viewer experience is kept very simple."
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Turner
plans thematic channels in Germany
From Dieter Brockmeyer in Frankfurt
Turner Broadcasting Systems(TBS) is planning to launch thematic channels such
as "Cartoon Network" in Germany. This follows German cable operators üish' and
Kabel Deutschland announcement that they will launch a new digital thematic
channel package by the end of this year, beginning of 2004.
TBS said it wanted its German offers to be as successful as they are in other
parts of Europe - Cartoon Network in the UK for instance is the most successful
channel amongst a total of 26 kid's channels. Turner Classic Movies, TCM, and
the animated action channel CNX are also on the list for role out.
However, Turner Germany's Chief Arthur Bastings did not comment on the time
frame for the plans. He only said: "With the launch of digital TV in Germany
we will also step aggressively into this market". Cross platform would be the
formula for Turners market leadership in Europe, he added.
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DTV
channels initiate trial operations in China
From Shveta Malik in New Delhi
Emphasising China's ambition to go digital, three digital television channels
have initiated trial operations in Beijing. Zhang Haitao, deputy director of
the State Administration of Radio, Film and Television (SARFT), said the trial
is a prelude to the digital broadcasts nationwide.
According to a recent scheme formulated by the SARFT, China will soon promulgate
its own high-resolution digital TV standards. By 2005, China is targeting more
than 30 million subscribers, a majority on digital by 2010, while analogue television
will terminate by 2015.
The State Administration also plans to transmit high-definition digital programs
of the Beijing Olympics to the world in 2008, according to the scheme. China,
with a population of 1.3 billion, boasts 370 million TV sets and 1.2 billion
TV viewers, the largest number in the world.
In July this year, China announced its plans of using the European-dominated
standard for its digital television (DTV) cable broadcasting as a transitional
one as it pushes ahead with its campaign to develop DTV in China.
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TV
Networks support FCC's media rules
US TV networks CBS, NBC and Fox have joined forces to back the Federal Communications
Commission's recent changes to media regulations, which are being criticised
by lawmakers and media watchdog groups. The changes would make it easier for
companies to own both newspapers and TV stations in the same markets.
According to a report in the Wall Street Journal, the networks' lobbying effort
includes the slogan "America says: don't get between me and my TV," which is
featured in ads running in Washington political publications, The Hill and Roll
Call
The newspaper added that Walt Disney Co's ABC supports the campaign, although
it isn't clear how much ABC is involved in other aspects of the joint effort.
The changes have met with fierce resistance from those who worry the FCC move
could allow a small number of companies to have an inordinate amount of influence.
The networks are planning to publicise their public opinion research, which
shows that 87 per cent of those polled in a survey think they have an adequate
number of choices for receiving news, according to the paper.
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Dish
passes 9m customer milestone
EchoStar says its Dish Network has passed the nine million customer milestone.
Dish Network.
"The American viewing public demands a low price, great customer service, and
a quality product along with a variety of programming options, and that is what
we deliver to them," said Charles Ergen, Chairman and CEO of EchoStar. "There's
no mystery why thousands of people every day drop their cable service to sign
up with Dish Network."
DISH Network plans to begin offering a high-definition TV system this autumn,
complete with HD monitor and HD receiver. The next-generation DVR due for release
by the same time will be the first to accommodate customers who want to record
their HD shows.
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OpenTV
names Execs
OpenTV announced the appointment of five senior executives: Wesley O. Hoffman,
Executive Vice President and Chief Operating Officer; Thomas L. Hagopian, Senior
Vice President and General Manager of programming/advertising; Constance Pettit,
Senior Vice President of advertising; Bill Harvey, Senior Vice President and
General Manager of research; and Thomas L. Ewing, Vice President and Chief intellectual
property officer.
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Tuesday 2nd September 2003
Canal
Satellite boosts channel line-up
Zip
closes ads-only TV deal
FT
wants last Orange segment
CAS
plans on hold in Kolkata
DISH
Delivers ITV for Kids
Dixons
drops Freeserve for AOL
New
3G handset from '3'
News
Corp sells SkyPerfect stake
HK's
3G operators given reprieve
Canal
Satellite boosts channel line-up
From Sotires Eleftherious in Paris
Leading French DTH platform Canal Satellite is to introduce nine new channels
over the next two months. The aim is to "strengthen our segmentation", says
Isabelle Parize, DG of Canal Satellite. She pointed out that 50 per cent of
the platform's income is invested in programming (around E400 million a year).
Several new sports channels are planned including Extreme Sport (from Extreme
Sport and UPC), Sports + (from Canal Plus), and NBA TV (basketball). The children's
offering will also be strengthened with MCM Junior (music) - complementing the
three MCM music channels already carried - and Ma Planete (documentaries for
children), in partnership with Multithematiques and France Televisions. Canal
Satellite is to carry three more international channels, TVE (Spanish), 2M (Morocco)
and Beur TV (Arabic immigrants). Finally there will be Live 1, a 'speed dating'
channel.
Canal Satellite made sales in 2002 of E790 million, and expects to achieve around
E850 million in 2003. The number of Pilotime PVR (Personal Video Recorder) terminals,
which Canal Satellite launched in March this year, has reached 40,000 and expects
to hit 60,000 by the end of the year.
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Zip
closes ads-only TV deal
A new TV channel dedicated to commercial breaks is about to be launched on the
UK's SkyDigital platform. The channel, run by Zip Television, will initially
be accessed via Sky Active and will feature mainly interactive ads enabling
viewers to buy goods and services from their armchairs.
The concept is an extension of home shopping channels. Andrew Howells, a managing
partner in Zip, said it would at first be a "virtual channel" that could be
accessed by Sky Digital viewers via the red button on their remote controls.
"In time, we'd hope to be able to give viewers somewhere where they could access
all the Budweiser ads there have ever been, which is something I'm sure a lot
of people would like," he said.
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FT
wants last Orange segment
France Telecom has announced plans to buy the 13.8 per cent of Orange it does
not already own. The company is offering 11 of its shares for every 25 Orange
shares in a deal valuing Orange at E7.1 billion. The offer represents a 21 per
cent premium to Orange's average share price over the past three months.
FT, which is 58 per cent government owned, had already hinted it wished to take
full ownership of its mobile division ahead of its own full privatisation. The
telco has begun legislative steps to reduce the government stake to below 50
per cent.
Coinciding with its takeover proposal, FT released its half-year results presenting
an E18.7 billion reduction in its debt. Net debt at the end of June stood at
E49.3 billion, down from E68 billion at the end of the year-ago period. Net
profit for the H1 rose to E2.52 billion compared with a loss of E12.2 billion
in the first six months of 2002.
Orange also confirmed better-than-expected first-half results. Net profit rose
to E3.3 billion (compared with a loss of E862 million a year ago) on revenue
that was up seven per cent to E8.6 billion.
Orange said it expects to report a full-year operating profit before depreciation
and amortisation of at least E6.3 billion while net debt by the end of the year
is targeted to fall below E1.3 billion, down from nearly E4 billion at the end
of June.
The mobile phone operator added 1.3 million new customers in the period, taking
its total subscriber base to 45.6 million. Chief Executive Sol Trujillo says:
"We are confident we can maintain our momentum not just this year, but also
for the years ahead."
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CAS
plans on hold in Kolkata
From Shveta Malik in New Delhi
The West Bengal government has intervened to shelve plans for implementing a
conditional access system (CAS) in Kolkata, a metropolitan city in the eastern
part of the country.
Kolkata is the second city after Delhi in which CAS has been ruled out from
its scheduled date of September 1. CAS is to be implemented in the whole of
Chennai and in a phased manner in Mumbai. The Indian government had left out
Delhi for CAS due to the assembly elections but had decided to go ahead with
the other three cities.
The Kolkata police had a meeting with the city's multi-system operators, instructing
them to keep the CAS implementation on hold until the West Bengal government
receives clarifications from the central government. The multi-system operators
included RPG Netcom and Zee's cable arm SitiCable.
Confusion and uncertainty was prevalent in two other cities, even though the
pay channels in Chennai have gone off-air as per the scheduled CAS date. According
to the cable operators in Chennai, further decision rests with the state government.
In Mumbai, the cable operators association has admitted that there is a lot
of political pressure not to implement CAS in the city. The cable operators
have yet to enforce the blackout of pay channels in southern Mumbai, the area
marked for CAS.
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DISH
Delivers ITV for Kids
EchoStar's Dish Network has teamed with Pixel Software Technologies to launch
KidsWise, an interactive TV channel for children. The KidsWise channel offers
interactive programming that aims to build reading, problem solving and thinking
skills.
The channel is available for $2.99 a month on Dish channel 100 to more than
6 million Dish Network customers who have access to Dish Home interactive television.
KidsWise has weekly programming schedules based on premium home computer software
programs from publishers such as The Learning Company. The channel was created
using a proprietary Pixel system that delivers fresh content weekly.
Each program includes parenting tips as well as activities that parents and
children can enjoy together simply by using the remote control.
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Dixons
drops Freeserve for AOL
UK ISP Freeserve has confirmed that it will not renew its narrowband distribution
agreement with the Dixons Group beyond its expiry in February 2004. A separate
agreement for broadband distribution remains unaffected and will continue through
to mid-February 2005.
Instead Dixons has teamed up with AOL Time Warner to promote AOL's Internet
access service in the consumer electronic chain's 1,100 stores from next year.
AOL outbid rival Freeserve, the UK ISP that Dixons funded and launched in its
stores five years ago. As part of the deal, Dixons will begin promoting AOL's
dial-up service in its Dixons, Currys and PC World stores starting in February,
2004. In February, 2005, the chain will plug AOL's high-speed broadband services.
Freeserve, a subsidiary of France Telecom's Wanadoo, said that its business
goal of reaching profitability in 2004 remains the priority and that if it were
to agree to the new terms proposed by Dixons to renew the agreement it would
be held back from achieving this aim.
Eric Abensur, Wanadoo UK Director and CEO of Freeserve stated: "We have been
prepared for the possibility of a non-renewal of the Dixons contract for some
time. Over the past two years a major part of our efforts have focused on diversifying
our distribution channels across the UK, both offline and online. Over the past
months, these new distribution channels have posted substantial subscriber gains,
and even topped acquisitions through Dixons in the first quarter of 2003."
"We still have five months to run on the narrowband agreement and more than
17 months for broadband, so we will continue to maximise this time with Dixons,
but at the same time we will further build on new opportunities for customer
acquisition through alternative means. With the agreements coming to an end,
we will lose all the restrictions placed on us as to which other retailers and
partners we can strike deals with."
Wanadoo posted a first-half profit of E183 million compared with a loss of E38
million a year ago. Revenue rose to E1.23 billion in the first six months, up
from E918 million last time.
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New
3G handset from '3'
The UK's third-generation phone firm '3' has expanded the range of phones on
offer to subscribers. The Motorola A920 which will be launched next week combines
a handset, videophone, games machine, MP3 player and organiser in one package.
The phone will only be available on the 3 networks.
3 hopes the multi-function device will help mark the difference between its
services and those of other UK phone firms.
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News
Corp sells SkyPerfect stake
News Corp said on Friday that it had sold its eight per cent stake in Japanese
SkyPerfecTV to its main shareholders. As a result of the sale, Sony, Fuji TV
and Itochu, which are the largest shareholders in SkyPerfecTV, will now each
own 12.6 per cent in the satellite broadcasting group.
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HK's
3G operators given reprieve
The Hong Kong Telecommunications Authority has let 3G operators off the hook.
The watchdog has announced that it had decided to waive the submission of performance
bonds due in October 2003 because of pressure from the four 3G mobile phone
licensees to pull out all 3G investments.
"We have decided to give the 3G licensees another one-year waiver on the submission
of performance bonds to assist the industry in response to changing market conditions.
Our decision is taken after careful consideration of needs of the industry and
the steps other Governments have taken to help their 3G licensees," said a spokesperson
of the Office of the Telecommunications Authority (OFTA).
Under the 3G license agreement, each of Hong Kong's four 3G licensees have to
pay five per cent tax on 3G revenue on top of normal revenue regenerated from
other 2G operations.
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Monday
1st August 2003
ITV
eyes near-live soccer package
TPS
undercuts rival Canal Plus
Murdoch
bids for Sky NZ
ARD
and ZDF renew Astra contracts
Bloomberg
on Sky Italia
PCCW
targets 300,000 subscribers by 2004
BSkyB
rescues Artsworld
UKTV
to cut ad breaks
Canada's
wireless carriers set standards
ITV
eyes near-live soccer package
ITV is lining up a bid for a Saturday night football rights package that would
compete with BBC's Match of the Day. This month, the BBC paid the Premier League
E147 million to secure the return of its traditional Saturday night football
slot ò held by ITV in the previous deal - for coverage of next season's matches.
ITV's rival package would allow it to show full, 90-minute coverage of one of
the best Premiership matches of the day, starting at 8.30pm - two hours before
the BBC programme goes on air.
The alternative programme, which would probably be shown on the digital channel
ITV2, could be available for E35 million. The deal would also let ITV show 45-minute
highlights of another game at 10pm - clashing with the the start of Match of
the Day - and highlights of up to four other Saturday games after midnight,
according to a report in the Independent newspaper.
ITV2 is available free of charge on digital terrestrial network Freeview and
the 'near-live' package would be the first chance of the weekend to watch Premiership
football in homes that do not have access to BSkyB.
The near-live package would apply only to Premiership games not already selected
by BSkyB for live coverage. The satellite broadcaster paid a total of E1,433
billion for its right to show 138 live games during the season.
If ITV bids for the near-live rights it will not be able to show highlights
of the games broadcast by BSkyB until after midnight - unlike Match of the Day
which is able to screen clips from all of the day's games.
ITV has so far offered only E14 million for the near-live rights, with cable
company Telewest bidding slightly less. But the Premier League is hoping for
between E35 million and E56 million and has called for new bids by 5 September.
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TPS
undercuts rival Canal Plus
From Sotires Eleftherious in Paris
TPS, France's number two satellite platform and a subsidiary of TF1 and M6,
is to introduce two low-priced packages this autumn, at just E11 a month. A
decoder may be rented for an additional E8 a month, or a sell-through decoder
may be used.
Even with a decoder, the deal is far better than the cheapest package on the
rival Canal Satellite platform (E17.99 a month plus E8 for the decoder). The
aim is to increase market penetration as much as possible, reaching people who
have been reluctant to take up pay TV.
One of the new packages comprises the TPS Star channel, a premium channel TPS
introduced two years ago. The other consists of a selection of seven TPS thematic
channels. Both packages also provide access to the French national channels.
TPS is particularly strong in rural areas, where reception of the national channels
is difficult terrestrially.
Although some of the channels are still available free of charge via analogue
satellite, TPS is the only way of receiving them all digitally. TPS CEO Emanuel
Florent said that he expects the offer to attract new subscribers, but that
comparatively few will opt for the low level package. All new subscribers will
get all of the TPS channels for the first three months and then have to select
their options. The new packages should also help to reduce churn, as they provide
a subscriber facing temporary financial problems with a way of reducing expenditure
while remaining a subscriber.
TPS also announced that it is to introduce a number of new channels in the coming
weeks and is to restructure its film channels around genres, including "TPS
Home Cinema", in DVD quality and "TPS Cinextreme". It also plans to double its
number of exclusive films.
TPS had 1,192 million individual subscribers as of 31 July 2003. Turnover in
2002 was E500.3 million, with a loss of E36.8 million. TPS made a profit of
E7.7 million in the first half of 2003, with sales of E 261.8 million.
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Murdoch
bids for Sky NZ
The Rupert Murdoch-controlled Independent Newspapers (INL) has made a takeover
offer for New Zealand's major digital pay TV service, Sky Network TV, valuing
the company at $NZ1.8 billion (E1.6 billion). INL is aiming to buy the 34 per
cent of Sky it does not already own.
Telecom Corp of New Zealand, which owns 12 per cent of Sky, has already accepted
the offer.
This month, Sky Network TV announced its first post tax profit since launching
a satellite digital TV service five years ago. Sky expects its net profit for
the current financial year to be about NZ$30 million (E17.2 million), the company
said.
INL said formal notice of the offer for Sky was to be made in mid-September.
The offer is expected to be dispatched to Sky shareholders in early October.
Shareholders will then have 30 days to accept it.
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ARD
and ZDF renew Astra contracts
German public broadcasters ARD and ZDF have agreed to continue their partnership
with SES Astra under new, long-term contracts.
The new contracts enable Astra satellite households in Germany to continue receiving
the variety of public TV and radio programmes direct-to-home and allow for a
nationwide, ubiquitous switchover from analogue to digital satellite transmissions.
The agreements reflect the German Federal Government's media policy target of
stopping analogue TV distribution by 2010, if market conditions allow. The new
long-term contracts cover analogue and digital satellite distribution via Astra's
prime orbital position of 19.2 degrees East for virtually all of Germany's public
TV and radio programmes.
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Bloomberg
on Sky Italia
Bloomberg Television, the European business and financial news channel, has
entered a three-year agreement with Sky Italia for the distribution of Bloomberg
Television Italia, and for the exclusive provision of financial news and market
updates to Sky TG24.
Bloomberg Television Italia is now available in the Basic tier of Sky Italia's
offering, the Primo Sky package, providing viewers access to Bloomberg's 24-hour,
Italian language, up-to-the-minute financial news service.
The two companies have also reached an agreement for Sky's own news channel,
Sky TG24, to include Bloomberg hourly updates from the Milan Borsa, reports
on the world's major markets, plus analysis, data and interviews with key figures
throughout the day. Bloomberg is the exclusive provider of financial news and
market updates to the Sky TG24 channel.
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PCCW
targets 300,000 subscribers by 2004
From Shveta Malik in New Delhi
Hong Kong-based PCCW Ltd, Asia's leading integrated communications company from
the Pacific Century Group, unveiled a return to profit and set a 300,000 subscriber
target for its new pay-television service by the end of 2004.
The telecommunications carrier will launch the pay-TV services from September
using Internet multicasting technology over digital subscriber lines, and hopes
to attract the existing 480,000 broadband subscribers to the pay-TV services.
COO Michael Butcher said the firm expects to sign up more than 20,000 new subscribers
a month, and up to 300,000 over the coming 18 months for Broadband TV.
PCCW's new unit will allow customers to subscribe to channels individually for
between HK$9 and HK$21 a month for each. The company has already signed revenue-sharing
deals with 23 major channels, including MGM Channel, Hallmark Channel and Discovery
Health and is expected to increase the number of channels to 30 by the end of
this year.
"The incremental infrastructure cost to us to offer pay-TV services to 460,000
customers is trivial," said Butcher, who added that the launch of pay-TV services
would have little impact on PCCW's operating and capital expenditures.
One of PCCW's competitors is i-Cable Communications, which has around 600,000
subscribers. Small fixed-line and IDD operator City Telecom recently launched
a pay-TV service, priced at HK$98 a month, compared to i-Cable's HK$298 fee.
Television Broadcasts' Galaxy Satellite Broadcasting is expected to start in
the fourth quarter of this year.
(HK$ 1 = E 0.11)
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BSkyB
rescues Artsworld
UK satellite broadcaster BSkyB is to buy a stake in struggling highbrow digital
channel Artsworld, the Guardian reports. The pay-TV group is taking a 50 per
cent shareholding in the venture, established three years ago by Channel 4 founder
Sir Jeremy Isaacs, and will draft in its own executives to run the channel.
Artsworld's MD John Hambley said the investment would secure the future of a
channel that had been "living on a knife edge, hand to mouth" since last year.
"There is definitely room for growth. This deal will help us accelerate. We
expect to go on to cable next year. We don't propose to change the mix and we
won't dumb down. We retain editorial control. Rupert Murdoch won't be ringing
up demanding this or that ballet. In fact, so far our principal effect has been
to spur the BBC into reviving its arts coverage," Hambley added.
BSkyB is paying an undisclosed amount for the stake and is expected to complete
the deal on Monday.
Artsworld programming spans a wide range of cultural areas, including dance,
opera, jazz, architecture and literature, with 50 per cent of airtime given
over to arts documentaries.
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UKTV
to cut ad breaks
In an attempt to hold onto viewers for longer, UKTV, Britain's second largest
producer of satellite and cable channels, is cutting back on advertising slots
and promotions.
Bombardment with long and frequent commercials often results in viewers flipping
over channels. Mike Smallwood, a consultant to UKTV, a joint venture between
BBC Worldwide and Flextech, said it carried too many promotions and ads - up
to 15 minutes an hour.
A spokeswoman for the company said: "We are cutting commercial airtime back
and reviewing our promotional airtime to make everything flow better from programmes
to advertising breaks."
The channels affected include UK Horizons, UK Style, UK Drama, UK Food, UK History
and UK Bright Ideas. Four-minute advertising breaks will be reduced to a maximum
of three and a half.
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Star,
Sony and others directed to join Zee's HITS platform
From Shveta Malik in New Delhi
The drama continues ahead of India's implementation of a conditional access
system (CAS) with the Monopolies and Restrictive Trade Practices Commission
(MRTPC) directing Star, Sony and ESPN Star Sports to provide signals to the
Zee-promoted head-end-in the sky (HITS) platform until the next hearing, scheduled
for 10 September.
HITS is a distribution platform for the conditional access system (CAS) which
is due to be implemented in Mumbai, Kolkata and Chennai.
As per the developments in the recent past, the country's leading multi-system
operator, SitiCable, a part of Zee Network, hadn't got the green light from
Star and others for being part of its service.
Star India had recently said that the channels from its bouquet would not broadcast
on the HITS platform due to legal issues.
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Canada's
wireless carriers set standards
From Gail Chiasson in Montreal
Canada's four national wireless carriers have agreed to establish common standards
for roaming and interoperability among the public Wi-Fi hotspots they operate
across the country, and from their next generation wireless networks to those
hotspots.
The agreement, the first of its kind in North America, has bee made between
Bell Mobility (in collaboration with Aliant Mobility in Atlantic Canada), Microcell
Solutions including its Fido brand), Rogers AT&T Wireless, and TELUS Mobility.
The aim is to provide the current 12 million - and fast growing - wireless subscribers
in Canada with simple, convenient access to public Wi-Fi hotspots. Thousands
of hotspots are being built in transportation hubs, hotels, fast-food restaurants,
and various commercial properties, enabling mobile professionals, business travellers
and other consumers to access the Internet, e-mail and corporate networks in
public locations without a landline connection.
While the four companies will continue to compete for customers and hotspot
locations, the agreement will allow customers to have convenient access to Wi-Fi
hotspots without needing new network identities or billing arrangements. The
companies are expected to have definitive standards and agreements in place
by the end of 2003, with implementation in 2004.
The agreement is expected to significantly increase Wi-Fi adoption rates across
Canada.
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