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NEWS Monday September 27th to Friday October 1st 2004
Scroll down page or click below for news - latest first
| Tuesday | |||||
Ofcom
proposes new service to incentivise PSB
Sky:
two Directors gone
Chrysalis
founder returns to TV industry
Kingston
speeds broadband growth
Ups
and downs in the mobile phone market
Flipside
TV goes Stateside
New
home shopping channel: 'Eezee' TV
ST's
introduces single-chip HDTV STB solution
BDA
launches new property channel
ITV
talks Brussels about ad skippers
ADB
introduces IDTV
CDB
works on its IPTV delivery network
Thales
on the move with DVB-H
UK media watchdog Ofcom has published the second phase of its review of public service broadcasting, which includes a completely new public service TV channel to keep the BBC in check. The channel which could be run by Channel 4, ITV or any other group including a newspaper firm. The BBC will be barred from running the service.
Ofcom says the competition from a new Channel 4-type operation is needed to help incentivise the BBC to continue operating as a public service broadcaster when analogue TV is phased out in 2012.
The new channel will reportedly have a budget of £300 million - nearly twice that of Five and two-thirds of Channel 4's - and could launch as soon as 2012. The money will come from either increased licence fee, a World Service-style government grant, or a tax of the turnover of UK broadcasters.
The report highlights that the existing analogue model of public service broadcasting, which has been sustained for many years by a combination of institutions, funding and regulation, will not survive the transition to digital and may erode rapidly prior to 2012. Ofcom is therefore proposing a new settlement be put in place in order to secure competition for quality before the old model has completely eroded.
The framework has seven proposals:
1. The increasing
importance of a strong, independent, fully-funded and public service focused
BBC ; funded through a licence-fee model.
2. Channel 4, as a critical second provider of public service broadcasting,
to remain as a primarily not-for-profit free-to-air broadcaster, free to form
alliances, joint ventures and partnerships with other organisations, with
the possibility of asset transfer as a route to create scale and public service
impact.
3. ITV1 to play to its strengths in public service broadcasting, contributing
through high-quality, UK-originated production, investment in news, regional
news and current affairs, with a proposed initial reduction in, then phased
withdrawal of, regional non-news obligations. Ofcom also proposes using the
greater flexibility afforded by the Communications Act in assessing the delivery
of ITV1's obligations such as arts, children's and religious programming.
4. A new approach to programming for the Nations and Regions, with regional
production on ITV1 and a rebalancing of some non-news regional responsibilities
to the BBC.
5. Channel Five committed to UK-originated programming and acting as a market-led
public service broadcaster.
6. A strong independent production sector based on the successful implementation
of the new Codes of Practice introduced by Ofcom earlier this year. However,
if the programme supply market is not working more efficiently 12 months from
now, Ofcom will take further action.
7. A new concept to stimulate innovation and plurality: a competition to run
a new Public Service Publisher (PSP) using new technologies and distribution
systems to meet audience needs in the digital age. A winning bid could come
from any current broadcaster, any media company (except the BBC), an independent
producer, infrastructure operator - or a consortium of such companies.
The report also
recommends that the BBC's licence fee should be retained until 2016 but there
should be a mid-term review in 2011.
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BSkyB has lost two Directors, one left of his own accord and the other was edged out of the company after being reprimanded for his behaviour at an industry function last week.
Mark Chippendale, Sky's director of sales who has been with the company for 14 year has resigned "pursue other opportunities," he said in a statement. There has been speculation that Chippendale and his boss Nick Milligan, the former deputy chief executive of Five, who join the company only three months ago, clashed. A Sky spokesman said no decision on a replacement had been made, but Milligan could look to bring in some of his former sales team at Five.
On the other hand Martin Goswami, BSkyB's Commercial Director, left the satellite company just days after he heckled former BBC DG Greg Dyke at a TV industry dinner.
Goswami interrupted Dyke several times during his 'Greg Dyke speaks out' speech at the Royal Television Society dinner held last Thursday.
BSkyB staff were told Goswami had left with immediate effect on Wednesday September 29.
Goswami joined BSkyB in October 2000 as commercial director, with responsibility for joint venture investments and relationships with other platforms, such as cable television.
Prior to joining
Sky, he was managing director of third party programming at UPC, Europe's
largest cable television operator. He also sits on the Music Choice board,
which he joined in December 2002.
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Chrysalis Group Chairman Chris Wright is set to acquire a majority stake in Portman Film and TV, the independent production company
Chrysalis, a media group which specialises in radio broadcasting, print and music records, wants now to re-enter the TV broadcasting industry after having sold its television production business last year for £40 million (E 60 million).
Wright, who already said he wanted to return to the industry when he sold Chrysalis TV arm, commented: "I enjoyed building up the TV production business at Chrysalis, and wanted to be involved in it again if the opportunity arose. But if I was going to [invest in a TV production business], I had to do it by myself."
Chrysalis had been under pressure to dispose of the TV assets because the City wanted the company to focus on fewer business areas, Wright said. The group is barred from entering the TV production arena for several years because of a non-compete agreement following the disposal last year.
Wright, who will also be Chairman of Portman stressed that his decision to invest in the Portman Group was a "one-off opportunity", adding: "However, if Portman has any opportunities to make acquisitions, it will examine them closely."
Chrysalis was
founded in the 60s by Wright, who ran a rock concert booking agency from a
west London flat. He owns 26 per cent of the business and has transformed
it into one of the top four commercial radio broadcasters in the UK. The group
sold its TV production arm to a consortium led by the former Granada CEO Steve
Morrison.
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Hull-based telecoms company Kingston Communications announced the acquisition of the ISP Eclipse Networking for £12.5 million. The move is part of Kingston's strategy to accelerate growth in its broadband business and the purchase gives it a customer base of more than 55,000 connections.
Eclipse founder
and managing director Mark Lang will remain with the business as director
of broadband and ISP development.
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mmO2 reported a strong growth in UK customer numbers and has risen its revenue growth forecast, but warned of a significant slowdown in the second six months of the year.
More customers and higher income per user helped it speed up net service revenue growth in the UK in the first half. 02 now anticipates growth for the full year between 9 and 12 per cent, against previous expectations of 7-10 per cent.
However, service revenue growth will "slow significantly in the second half", due to a 30 per cent cut in termination charges imposed by regulator Ofcom on September 1 and continuing competition in the UK.
Meanwhile Sir Richard Branson's Virgin Mobile has issued a lower-than-expected revenue guidance for the current financial year, also affected by the termination charges cut. Double the average number of shares were traded in the stock after the announcement, as investors anticipated a string of downgrades from analysts.
According to
reports, Virgin Mobile privately believes a number of analysts have had unrealistically
high forecasts on revenues, pushing the consensus estimate too high. Its pre-close
update before interim results in November said revenue growth for the full
year would be in the "high teens" compared with "mid-twenties"
for the first half.
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Flipside TV has teamed up with US TV executive Michael Davies's Diplomatic Television and leading UK indie production house Zeal Television to distribute its live human programme guide show, currently carried predominantly on digital satellite service Nation217 .
The new deal sees Flipside TV and Zeal Television debuting the show at the forthcoming MIPCOM TV programming market. Zeal TV has acquired worldwide rights (excluding the US, South Africa and Australasia) to the show. Diplomatic Television will handle the sale for the American market.
David Brook,
Executive Producer of Flipside TV in the UK said that with Zeal Television
and Michael Davies on board, he was confident that Flipside could become a
truly global TV brand.
Diplomatic Television's Michael Davies said that the format - a live show,
where the hosts and guest panellists flick through the programming of every
TV channel, reviewing the output of multichannel TV as it happens - had "enormous
potential in the United States where we already have considerable interest."
Nick Sallon, Head of International Sales at Zeal TV described it as "a
perfect format for broadcasters looking to build their brands in youth skewed
programming."
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Home shopping specialist Kleeneze is to launch a joint shopping channel with JMLon Sky. Kleeneze is to invest £4 million over a two year period to launch the new service which will be available on Sky channel 664.
The new channel,
branded ‘eezee TV,' will broadcast as a pre-recorded channel until March
2005, when it will re-launch as a live channel with 16 hours live programming
a day, with another eight hours of pre-recorded programming giving a 24 hour
service.
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European chip maker STMicroelectronics has introduced the STi7710 single-chip solution for high-definition set-top boxes. The new device will combine the functions of STi7020 HDTV decoder IC and the STi5517 Omega decoder; and is expected provide more sophisticated features for consumers and greater security for content providers.
The company hopes that this integrated System-on-Chip (SoC) decoder will reduce costs for manufacturers of high-definition STBs in US market and in the Far East, Australia and Europe.
ST has commented that the STi7710 will allow both digital video interface (DVI) and high-definition multimedia interface (HDMI) display interfaces to ensure STB output flexibility and offer improved audio capability through an embedded advanced audio coding (AAC) decoder.
ST has also made
a new move in the 3G market, after signing a deal with Nokia for its Series
60 product creation. ST's Nomadik family of multimedia application processors
for 3G mobile devices have been adapted and optimised to support the Nokia
Series 60 Platform, enabling faster handset development for Series 60 licensees.
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Production company BDA (Bruce Dunlop & Associates) announced the launch of an entertainment-led property channel on the Sky Platform. Real Estate TV will be launched in October 2004 in the UK. Former Flextech management board member Mark Dodd will be heading up Real Estate TV in partnership with BDA.
"In addition to providing developers and agents with a new way to market property not only in the UK, but across the world, Real Estate TV differs from other dedicated teleshopping channels by offering viewers a wide selection of the latest editorial content, including the channel's very own commissioned programmes, " the company commented.
Real Estate TV has also acquired the programming rights for Property Rescue and the exclusive rights to Location Location.
Complementary
to the editorial content, Real Estate TV will also be presenting a blend of
teleshopping windows and spot advertising. The interactive aspect of the channel
will be supported by Broadband and mobile telephone services.
The channel, which has recently signed an advertising deal with Atlas International,
will air on Sky 18 hours a day, from 6am to midnight. Digital Media Sales
has been appointed as the airtime sales house. Negotiations to transmit the
channel over cable are underway with both NTL and Telewest.
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ITV is asking European regulators to relax the rules on advertising products within television programmes as the broadcaster struggles with technology that allows viewers to skip commercial breaks.
According to
a report in the Guardian, the preliminary discussions are part of industry
moves to cope with the expected impact on commercial broadcasting caused by
PVRs.
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Set-top-box vendor Advanced Digital Broadcast has unveiled the i-CAN170T, its first Integrated Digital TV (IDTV) based on the DVB-T MHP open standard.
Mass production of ADB's i-CAN 170T is planned to start this October and its introduction will follow during the autumn in various retail outlets in Italy. It will also become available in other European countries which have adopted the MHP platform from the DVB.
"This all-in-one concept is intended especially for home-offices, bedrooms and kitchens, where there is a strong request from consumers for space saving while accommodating a stylish design", says Luis Ballestero, Marketing Director at ADB. "It allows the viewer to watch analogue and digital TV channels, access interactive broadcast services, and it can also be used as a standard PC monitor."
Multifunctional
with minimal space requirement, the i-CAN 170T is equipped with built-in loudspeakers
and a complete range of interfaces, including outputs for Home Cinema, V.92
modem, Ethernet-to-ADSL port, and security facilities for providing access
to personalised services.
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China Data Broadcasting Network (CDB) has selected digital media technologies company DG2L Technologies, and encryption technology and DRM systems company SecureMedia, for supplying a secure IPTV delivery network based on DG2L's MPEG-4 based Neuron set-top box platform and SecureMedia's Encryptonite(TM) Digital Rights Management (DRM) system.
CDB is majority owned by the State Administration for Radio, Film and Television (SARFT), China's administrative authority for content, broadcast networks and foreign film imports. Under a plan to unify the nation's fragmented cable TV industry, CDB is projecting one million subscribers on-line receiving CDB programming in 2005 and converting 30 per cent of the existing 95 million cable subscribers in China to the CDB programming feeds by 2007.
"The combination of the DG2L and SecureMedia systems will result in the largest DRM-enabled, video-over-IP (IPTV) network in the world," an official statement said.
CDB will deliver
pay-TV and video-on-demand services over a state-owned fibre optic network
to affiliated cable operators throughout China. DG2L's Neuron is the world‚s
first interactive HDTV IP-based set-top box based on MPEG-4 complete with
HDTV and standard PVR capabilities. The Neuron set-top box supports all DVB
and IP standards, allowing multiple service operators (MSOs) to harness the
power of the Internet with high quality interactive video and web capabilities,
claims the company.
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Electonics group Thales is using the Paris Motor Show to carry out a live trial of digital video broadcasting based on the DVB-H standard. Thales has provided TF1 with the encapsulation and broadcasting systems that will be used during the show. Thales' solution consists of fully DVB-H compliant products for the live broadcast of LCI and TF1 TV programmes for reception on mobile devices situated/located in moving vehicles exhibited at the show. All video content will be broadcast in MPEG-4 H.264.
Thales will utilise
its new DVB-H head-end system - released to the market in early September
2004 during IBC – which encompasses the broadcasting chain from encoded
content encapsulation to transmission for reception on mobile receivers.
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BBC Worldwide has signed deal with Denmark's leading commercial broadcaster TV 2 to supply a large package of drama titles for its new cable channel TV 2 Charlie. The new channel will launch on October 1st, 2004 and its schedule will include a mix of recent and classic BBC series.
Matthew Forde,
BBC Worldwide Head of Scandinavia & Benelux, said: "Our relationship
with TV2 has gone from strength to strength over the last two years and we
appreciate being able to contribute to the successful launch of their new
channel. The BBC is known for its high quality drama and we are convinced
that the programmes will help attract a high quality audience for TV 2 Charlie."
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Disney admits BBC Worldwide interest
Disney president Bob Iger has admitted that the media giant had looked at the possibility of buying all or part of the BBC's commercial arm, which is likely to be sold off following the completion of an internal review of the corporation's commercial operations. Iger said he thought the BBC had "strong assets" and would be attractive to any media company.
"I usually don't comment on potential acquisitions but we are professional tyre-kickers; we look at everything, especially if it's in our space or our competence," Iger told delegates at a London conference. "Often on an acquisition you think you are a prince kissing a toad hoping to get a princess and a lot of the time all you get is a toad. Not that the BBC is a toad. It is very disciplined and has strong assets," he added.
Iger noted that Disney had a good relationship with the BBC, with substantial co-operation on news (via its ABC network) and strong creative links. "We have also been asked why didn't we buy ITV as well as BBC Worldwide. We could just buy the UK and turn it into a theme park," he joked in a Q&A session. Iger also confirmed that Disney was planning to expand into India and China.
The BBC responded:
No organisation has been asked to bid for BBC Worldwide. "As part of
the BBC's Building Public Value initiative a wide range of external organisations
and consultants, including media companies, venture capitalists, merchant
banks, our own partners and key industry figures, have been invited to contribute
their views as part of the BBC's internal Commercial Review process. "While
issues such as the scope, scale and value of the various BBC commercial ventures
are part of this in-depth consultation, bids have not
been invited, as no decision has been made as to whether any change of ownership
of any business will form part of the final Review recommendations."
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Enhanced and interactive TV specialist Two Way TV has kicked off its strategy to grow and strengthen its business through acquisition, with the purchase of the mobile-to-TV services specialist Broadcast Games. The company will be incorporated within Two Way TV to form Two Way Mobile, where all future mobile content services will be developed.
The acquisition
builds on Two Way TV's existing mobile services, which includes an exclusive
deal signed with ITV earlier this year to provide mobile content services
around its popular programming, as well as launching a new set of mobile-to-TV
games formats.
Broadcast Games has focused on broadcast interaction, using its broadcast
mobile-to-TV interaction platform SAMPO, which lets users play games, chat
and generally interact using their mobile phones, iTV red button, internet
and telephone lines with on screen events. The platform allows developers
to include real-time 3D graphic animation, offering the opportunity to create
PC quality gaming on the TV.
The deal follows the recent agreement between Two Way TV's shareholders PTV Inc (formerly NTL Europe) and Scandia Media Invest to invest £1.8 million in new ventures that will help consolidate the company's leading role in the interactive marketplace. Two Way TV aims to offer its clients a one-stop shop with best of breed cross-platform interactive content and technology and sees mobile content as a core part of its future growth strategy.
Jean de Fougerolles,
Two Way TV's CEO said that the acquisition was part of Two Way TV's aggressive
growth strategy to make sure that it stayed at the forefront of interactive
programming, adding that it was the first in a number of strategic partnerships
to be announced between now and Christmas. Broadcast Games co-founder Julian
Jones added that the deal meant that Broadcast Games would become part of
"a substantial, growing company where mobile-to-TV games form an important
component of the business."
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Rupert Murdoch's News Corp has taken full control of Sky Italia. The entertainment and media group bought Telecom Italia's 19.9 per cent stake in the pay-TV platform for E88 million.
Telecom Italia was previously News Corp's partner in Stream, the Italian satellite-TV operator that merged with Vivendi Universal's former Telepiu subsidiary to create Sky Italia almost two years ago.
Meanwhile, Silvio
Berlusconi, the Italian Prime Minister, announced he plans to float at least
20 per cent of state broadcaster RAI, by March.
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Pink TV, a general entertainment channel for gays, lesbians and their friends, is to launch on October 25. The channel had been planned for the last three years, but has been delayed "for technical reasons" according to its President Pascal Houzelot. He added that it had only had the authorisation from the broadcasting regulator, the CSA, last November.
The channel's shareholders include the Canal Plus group, TF1, M6 Thematiques, Connettction, Helios (part of the Lagardere group), Financiere Pinaut, Pierre Berge, plus various investment funds and individuals: all chasing the Pink Euro.
Its overall budget
is E11.5 million a year, half of which will go to programming costs. The channel
needs 180,000 subscribers to break even, and hopes to have 200,000 by 2007.
It will be distributed via the main cable operators (Noos, France Telecom
Cable, NC Numericable), both the satellite platforms (Canal Satellite and
TPS) as well as via ADSL (TPS-L, CanalSatellite-ADSL, Free) as an optional
channel for E9 a month.
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Cablevision Systems, the largest cable-television operator in the New York region, postponed to the fourth quarter a plan to spin-off its Voom satellite-TV service as part of Rainbow Media Enterprises.
Cablevision said
in a statement filed with the U.S. Securities and Exchange Commission that
the spin-off depends on a number of conditions including approval from regulators
and its board of directors. The company had said in August that it expected
to distribute the Rainbow Media stock to its existing shareholders at the
end of this month.
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UK cableco NTL
has bought the remaining 51 per cent of Virgin.net, its joint venture ISP.
NTL and Virgin hooked up in 1996 to form the JV, which has some 590,000 customers.
Now, the cableco has complete ownership of Virgin.net but intends to carry
on using the Virgin brand.
NTL CEO Simon Duffy, said: "This is a very good acquisition for NTL.
Virgin.net has a strong presence in the internet arena, underpinned by a powerful
brand name and an outstanding team. I am confident Virgin.net will accelerate
our growth by giving us access to new market segments, thereby complementing
our strategy of extending our network through local loop unbundling."
Last week NTL announced plans to invest £65 million (E97.5 million) on installing its kit in BT exchanges to provide telecoms services direct to customers. The ‘last mile' investment is expected to take two years to complete with NTL believing that it is cheaper to invest in local loop unbundling than physically rolling out cable to extend its own network.
Also last week,
Virgin unveiled a new ADSL package called "Plan Two", which offers
a 512k broadband service for £17.99 a month with no 12 month contract
and a three Gb cap.
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UK's Capital Radio and GWR have merged. The widely expected all-share merger creates the UK's largest commercial radio group, with one national (Classic FM) radio station, 55 local analogue radio stations and 93 digital radio stations. It will have a combined reach of around 18 million listeners – 36 per cent of the UK's commercial radio audience.
The combined entity will have an annual turnover of £243 million (E364.5 million), pre-tax profits of £40 million, and a market capitalisation of £711 million. The merger requires regulatory approval. Capital shareholders will hold 52 per cent of the new company's shares and GWR shareholders will hold 48 per cent.
The new entity
will probably help to push the uptake of digital radio. According to the Digital
Radio Development Bureau and research from Gfk, digital radio take-up is expected
to reach one million households in the UK by the end of 2004. Total digital
radio penetration to the end of July 2004 reached 682,000.
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A US court has dismissed a lawsuit by former German media tycoon Leo Kirch accusing Deutsche Bank of being part of a conspiracy to destroy his company.
Kirch, the founder of the defunct media empire KirchGroup, alleged that Detusche Bank and Liberty Media tried to wreck a deal Kirch was negotiating to bring his privately owned company public. The suit accused Rolf Breuer, the bank's then-CEO, of undermining the media company's credit worthiness in a television interview, which, Kirch claimed, considerably contributed to its eventual insolvency. In February 2002, Breuer told Bloomberg Television: "What one is reading and hearing is that the financial sector is not prepared to supply further funds or outside resources [to Kirch]."
However, the
Southern District court in New York dismissed the suit because of inconclusive
evidence, Germany's largest bank said.
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"This partnership
with 24/7 Real Media will extend the reach of digital advertising to cable
TV platforms, opening up a unique audience and whole new market to the UK
advertising community," commented Chris Moreton, CEO at Press Red. Tim
Brown, UK MD of 24/7 Real Media, added that combining the technologies would
help advertisers increase their audience reach and revenue gained from running
campaigns on digital cable TV.
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German Home Shopping service 1-2-3 is launching what it claims is a new concept in home shopping via Astra's analogue and digital satellites. On 1-2-3.TV, it is the customers who decide the price of each product by making an offer for each item by telephone. If that offer is one of the highest received, the purchase then takes place.
Alexander Oudendijk, Senior Vice President Sales and Marketing at SES Astra, said that 1-2-3.TV had filled "yet another niche within the range of free-to-air television channels we offer, further enhancing the attractiveness of satellite television in the eyes of the public. We are hoping that this unique new service will achieve the same degree of success as that enjoyed by internet-based auction houses."
1-2-3.TV has a financing package of up to E20 million, with Managing Director Henning Schnepper noting that it is the first media company to be set up with major venture capital backing since the end of the ‘New Market' in Germany. "Working together with our partners, we have been successful both in developing the concept for our new channel and in agreeing the financial backing for the project."
The new channel
is hoping to break even in its third fyear, by which time it expects to have
attracted some half a million registered customers.
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The Sky+ 160
is the first box in the Sky+ family to offer increased storage capacity via
the use of a 160 Gigabyte hard drive, delivering an average of 80 hours recording
capacity. It also features USB 2.0 connectivity for future applications and
is based on xTV, the DVR and extended conditional access system from NDS.
The DVR functionality will be identical to that of the existing leading Sky+
product line.
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BBC Worldwide, the commercial consumer arm of the BBC, has concluded a two-year agreement with Norway's public broadcaster NRK for a wide selection of factual programming.
Tore Tomter, NRK Senior Editor for Factual commented: "We believe that this agreement will secure our viewers some of the strongest documentaries and factual programming that will be available in the future." He added tat the broadcaster needs strong and well researched programmes that can be delivered in a minimal turn-around time and that will secure NRK popularity in Norway.
In Germany, BBC Worldwide and Kabel Deutschland (KDG), the country's leading cable network, have teamed up to provide carriage for British entertainment channel, BBC Prime, across Germany. KDG will include BBC Prime in its new Kabel Digital HOME package, launched this week in Munich, which heralds a major push to drive digital uptake in Germany.
BBC Prime is
broadcast to over 20 million subscribers across Europe, the Middle East and
Africa on cable and satellite.
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Continues from front page.........
TW and Comcast in joint bid for Adelphia?
Time Warner and Comcast are said to be planing to present a joint bid for Adelphia, the US bankrupt cable company that put itself up for sale this year after some members of its founding family were convicted of fraud and conspiracy.
The two media companies were expected to bid separately for portions of Adelphia but have instead agreed to submit a joint "confidentiality agreement" to bankers running the auction. However officials said the talks were at a preliminary stage and warned that the two companies may fail to agree terms.
Adelphia, the
fifth largest US cable group with assets stretching from California to Pennsylvania,
could be worth as much as $20 billion.
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Sky to hit 8m homes target by 2005
Sky Digital is likely to reach James Murdoch's target of 8 million customers by 2005, according to research from Continental, with an extra 500,000 customers expected to sign up.
Freeview is set to rise to 4.9 million from 3.5 million homes, making it the fastest-growing medium. Jon Beaumont, director at Continental Research, said: "In terms of new growth, it is likely that Sky will actually outperform cable, especially with a concerted fourth quarter marketing push."
Digital TV take-up is expected to reach 15.9 million homes by 2005, an increase of 2.5 million. This figure will count for 66 per cent of all homes. Beaumont added: "However, the launch of FreeSat in October will possibly impact on the Freeview sales, and the general structure and growth of the market."
To receive Sky's
FreeSat, customers will require a £160 (E240) one-off payment for installation
of a satellite dish and set-top box. The service will comprise more than 100
TV channels and cover 97 per cent of the UK. This compares with a £50
one-off payment for Freeview that has 30 TV channels and 70 per cent coverage.
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NCTA also said the number of local digital broadcast stations being carried by cable systems has increased to 454, up from 304 in December 2003, reflecting growth of nearly 50 per cent. Out of 108 million US TV households, 90 million are passed by a cable system that offers a package of HDTV programming, NCTA said. The new number represents an increase of more than 28 per cent when compared to the 70 million HD mark achieved last December, the association added.
In addition,
17 cable networks now offer HD programming during some or all of their network
schedules, representing broad genres including movies, sports and general
interest. The NCTA said its data reflects activity through mid-September 2004.
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More than one of every five UK households has a broadband connection, according to a new study, indicating Britain is one of the fastest growing markets for high-speed Internet access.
Britain's broadband market, which has been dropping its prices significantly in the past year, have cracked the five million subscriber mark in September and is expected to grow a further 64 per cent over the next 15 months, according to London-based research firm Baskerville.
By the end of
2005, there will be more than 8.2 million UK broadband subscribers, with nearly
5.6 million of them connected on phone lines using high-speed DSL technology,
the report said. The UK and French broadband markets are the fastest growing
in Western Europe and are expected to surpass Germany as Europe's biggest
broadband market in the next year. The high growth is attributed to aggressive
government-led local loop unbundling policies.
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Microsoft launched a fresh attack on the European Commission's antitrust ruling against the company, arguing that competition in the market for media player software is far more buoyant than Brussels argues.
Speaking ahead of its appeal this week at the European Court of Justice in Luxembourg, the software giant warned that consumers faced higher prices for computer software because of the commission's ruling that the US company had abused its dominance of PC operating systems.
Mario Monti, the EU competition commissioner, argued that Microsoft had illegally exploited its dominance of the market for personal computer operating systems by shutting out rivals in adjacent markets such as media players and servers. The firm was found guilty of breaking European Union antitrust law in March.
The company was fined a record E497 million and told to change its business practices. In particular, Microsoft must offer a version of its Windows operating system without the company's Media Player software.
But in an appeal against the decision Microsoft will argue that "much of the evidence that the Commission presents on this issue [of media players] is incorrect". The company said it had supplied an economic analysis to the court that supported its arguments.
Microsoft said that "all signs point to a growing, vibrant media player market, with neither media players nor media formats showing any signs of 'tipping' to Microsoft technologies".
It cites the
new music services by Apple and Sony, as well as Yahoo's acquisition of MusicMatch
as evidence of this trend.
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Mobile telephony service provider Hutchinson Essar has launched Hutch TV, a multi-channel, TV-on-Mobile service, accessible over its EDGE-enabled network. The service delivers television content from 13 different TV channels, ranging from news and current affairs to business, sports, fashion, travel and entertainment, said Hutch chief operating officer Harit Nagpal.
The channels
include Discovery, Animax, news channels NDTV India and NDTV 24x7, CNBC TV18,
general entertainment channels such as Sony and Zee, AXN and Nickelodeon among
others. Hutch TV enables its subscribers to view clips of select programmes
over GPRS handsets. The company is planning to launch more EDGE (Enhanced
Data rate for Global Evolution)-enabled handsets in the country.
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The BBC is considering a radical, two-pronged restructuring of its Worldwide commercial arm that could result in a flotation of the business, according to a report on the Independent.
During the first two weeks of October, the committee reviewing the business will make its provisional recommendations to BBC director-general Mark Thompson. It will be the first time the committee will meet the executive board since being appointed to review the BBC's commercial operations in June. Worldwide is worth between £1 billion (E1.5 billion) and £2 billion.
BBC executives have been discussing how to set up joint ventures or, less likely, how to sell stakes in its three arms: publishing, distribution and channels. Commercial companies would be 'licensed' to run the businesses for a set period and would guarantee a dividend to Worldwide. This would allow the BBC to retain ultimate control while securing a future revenue stream.
But, according to City sources, the committee is considering going one stage further. The second phase would see a stake in Worldwide sold, or floated on the stock market.
In either case,
the BBC would want to retain a sizeable share in the business. The BBC would,
in effect, be selling the right to receive a share of the operating profits
from Worldwide. The proceeds would help the BBC fulfil its obligations, such
as aiding the analogue switch-off by 2012, during the next charter period,
which begins at the end of 2006.
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Horseracing channel Racing UK is launching a broadband channel next week. The move follows a partnership agreement with Irish company Servecast, an online entertainment specialist.
The on-line channel,
available on a subscription basis, costing £20 per month - the same
price as the digital television service which is becoming avialable to subscribers
only after October 1 -, will reach an estimated 3.2 million broadband users
though its website, www.racinguk.tv.
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Sony Pictures Television International (SPTI) has launched AXN in Germany. Debuting on Kabel Deutschland's new digital TV platform, Kabel Digital Home, AXN will begin broadcast on November 1.
AXN, the general
entertainment cable and satellite network, reaches audiences in over 46 countries
across Asia, Latin America, Europe and the Middle East, and is part of SPTI's
diverse portfolio of over 35 global networks. In Europe, AXN is currently
available in Spain, Portugal, Poland, Hungary, Romania, Bulgaria, the Czech
Republic and Slovakia.
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ABC1, the new
general entertainment channel from Disney, launched on Monday on digital terrestrial
television. Named after the ABC television network in the USA, which is also
owned by Disney, the channel is available on DTT channel 15. It is on air
from 6am to 6pm daily.
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Time Warner and Comcast set timeline on exit
Time Warner and Comcast Corporation have reached an agreement that provides Comcast with an option to reduce its effective overall interest in Time Warner Cable from approximately 21 per cent to 17 per cent in exchange for stock of a subsidiary that will hold cable systems and cash.
Time Warner Chairman and CEO Dick Parsons said: "Today's announcement is another example of our working closely with Comcast to reach a mutually beneficial outcome to the business matters facing our companies. For our part, if Comcast chooses to exercise its option, we'll have the opportunity to increase ownership of our cable company based on a mutually attractive valuation."
Parsons added that the trust holding Comcast's interest in Time Warner Cable had agreed not to ask Time Warner to begin the process to register its Time Warner Cable ownership for at least the next six months, providing the pair time to explore alternative approaches to facilitating Comcast's exit from its ownership position in Time Warner Cable.
Comcast Chairman
and CEO Brian Roberts confirmed that it had always been his company's plan
to dispose of its stake in Time Warner Cable expeditiously. "This agreement
marks an important step towards completing that goal efficiently while also
maximising value for our shareholders," he claimed.
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Ofcom, the UK media watchdog, is set to outline how ITV might fulfil public service broadcasting (PSB) obligations in the future and what are the options for commercial licensees Channel 4 and five, when the second stage of its public service broadcasting review is released later this week.
ITV, the country's largest commercial broadcaster, has called on the regulator to abandon the existing system of prescribed hours of public service broadcasting, prompting Ofcom to investigate whether ITV1 and Five could focus their public service efforts on news, regional news and UK-produced output. This would leave the growing number of niche cable and satellite channels, including Artsworld to cover genres such as arts and religion which deliver poor ratings and are difficult for ITV to justify, given the increased competition from pay-TV channels.
ITV estimates those obligations cost an extra £250 million (E375 million), on top of the £200 million it pays for analogue broadcasting spectrum from which its public service obligations stem. ITV's chief executive Charles Allen has in the past said that ITV should receive some licence fee money to help fund its public service commitments.
Ofcom is expected to recommend that part of the BBC's £2 billion licence fee should go to Channel 4, which will boost its programming budget and financial security. The public service broadcaster is also working on the introduction of another digital television station, More4. Channel 4 recently closed a deal with SES Astra for extra satellite transponder capacity.
The PSB report
from Ofcom this week will be advisory and in no way final, but will influence
debate on the BBC Charter Renewal, to be decided next year.
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Broadcasting regulator Telecom Regulatory Authority of India has said that there would be no price regulation on pay/premium channels except the limited regulation of 20 per cent as the maximum discount on a bouquet of premium channels in the conditional access system (CAS) areas. It is being said that TRAI has also recommended an eight per cent annual licence fee for direct-to-home operations.
CAS, which was scheduled to be introduced in New Delhi, Mumbai, Kolkata and Chennai was only introduced in Chennai (partially in South Delhi only for a while). "The ceiling rates at which the charges will be paid by the cable subscribers to cable operators, cable operators to multi-system operators (MSOs) and MSOs to broadcasters, will be those prevailing on December 26, 2003, plus five per cent," says a recommendation from TRAI. For CAS, in areas like Chennai, the existing price regulation would be withdrawn. Further, the price ceiling would be adjusted downwards proportionately in the event of conversion of pay channels to free-to-air (FTA) or to a premium channel or on discontinuation of a pay channel.
The media further says that on the issue of pricing of basic service tier, it has been recommended that basic tier services should be fixed by TRAI in consultation with the state governments.
"Pending
the determination of price as per the above recommendation, Rs 72 (U$S1.6)
per month (excluding taxes) plus five per cent will be default rate for CAS
areas. For networks deploying traps, additional Rs 5 (U$S 11 cents) per subscriber
per month will be payable," says TRAI.
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At its Annual
General Meeting, Eutelsat's shareholders approved the company's accounts for
its 2003/2004 financial year and decided to streamline its corporate governance
structure by replacing the 15-member Supervisory Board and four-member Management
Board with a single Board of Directors composed of ten members.
The company commented that the change in corporate governance, which aligns
Eutelsat with common private company practice, will facilitate greater cohesion
between shareholders and management and thereby lead to increased efficiency.
Shareholders nominated ten members to the new Board of Directors, which at
its first meeting unanimously elected Giuliano Berretta as CEO and Chairman
of the Board.
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Mobile phone operator O2 is reportedly considering pulling out of the race to launch 3G services for the consumer market in time for Christmas, because it fears the technology is not ready.
The head of the network's UK business, Dave McGlade, sent a clear signal that the company will not go ahead unless it can ensure customers will not be disappointed with the service. In a veiled attack on Vodafone, which last week revealed the nine 3G handsets it will offer in November, he said: "O2 understands that in mobile it is not about being first to market but delivering on customer service promises. As an industry we have a track record of hyping technology before it is ready."
Executives at
O2 are to meet in the next few weeks to make a final decision about whether
to go ahead with a launch in time for Christmas.
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The BBC has approached US cable giants with views to distributing its BBC World news channel in America. According to reports BBC has held talks with US cable groups including Comcast, Cox Communications and Time Warner Cable and with DirecTV the satellite platform controlled by Rupert Murdoch's News Corp.
The BBC has been trying to launch BBC World in the US for more than two years, but has so far failed to find a distribution partner. Although BBC World bulletins are broadcast once a day on almost 230 US stations affiliated with the country's PBS, the UK corporation wants to exploit perceived interest in non-American television news more broadly.
A deal with a US cable or satellite platform would pitch BBC World into direct competition with domestic rivals such as CNN and Fox News. Time Warner and News Corp, the respective parents of CNN and Fox News, could come under internal pressure not to sign a deal with the BBC.
The talks are
said to be separate from discussions with US media groups about the potential
sale of BBC Worldwide, the broadcaster's publishing, merchandise and international
programming arm.
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The Walt Disney Company's ESPN sports television network is in discussions with European broadcasters to launch its first live channel in the region after securing a beachhead with the introduction of its Classic Sports platform.
Russell Wolff,
MD of ESPN International, told The Times that "we have had discussions,
and are in discussions, with a variety of people" to launch a live 24-hour
ESPN channel in Europe." The talks come as ESPN launches ESPN Classic
Sports on Germany's Kabel Deutschland, taking its total audience across the
region to more than 14 million households in 37 countries. ESPN is also in
talks with BSkyB to broadcast the channel, which replays footage from past
sporting events.
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A report by Zenithoptimedia, the media buying agency, showed that British people in their fifties are emerging as enthusiastic consumers of multi-channel television, whether on cable, satellite or digital terrestrial systems.
The implication is that the traditional popularity among older viewers of terrestrial programming on the BBC and ITV could be ending. At this year's financial results BSkyB CEO James Murdoch highlighted the importance of this age group and pointed out that the uptake of multi-channel TV amongst the over-50's will have a significant impact on Sky's demographics in years to come.
"People aged 50-59 consume their media very differently to people aged 60-plus," the study said. "They are a distinct generation, having more in common with their juniors than seniors." The report found that last year 56 per cent of people aged 50 to 59 received multi-channel television, higher than the national average of 54 per cent.
Of those in their
sixties, the proportion dropped to 45 per cent of people. Among those aged
70 and above, only 29 per cent received multi-channel television.
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Scopus Network
Technologies, a leading supplier of digital compression technology to the
broadcasting industry, reported that Multichoice Africa has selected its digital
broadcast platforms for digital DTH (Direct-to-Home) services. Using Scopus'
platforms, MultiChoice transmits 54 digitally compressed TV channels on the
W4 platform to viewers throughout the African continent.
In 2001, Scopus provided MultiChoice with a "one-stop-shop" solution
including integration of head-end architecture, engineering and the supply
of digital video compression equipment. This new contract expands and upgrades
the current systems with new platforms as well technologies to push MultiChoice's
digital broadcast abilities into the future. In addition, the upgraded system
enables the pay-TV giant to increase its market presence in a wide swath of
French and Portuguese speaking Africa. Scopus is represented in South Africa
by GIT (Graphic Image Technologies).
Scopus is supplying MultiChoice's head-end at Telefonica's Satellite Control
Centre (SCC) in Guadalajara, Spain with a full platform including the CODICO(r)
E-1200 Professional Encoder and the CODICO(r) RTM-3800 Statistical Multiplexer
/ Re-multiplexer, a PSI/SI generator and Scopus' NMS 4030 network management
system. The complete end-to-end solution includes four fully redundant statistically
multiplexed encoding systems.
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US media tycoon John Malone is selling his stake in Telewest, the UK's second-largest cable operator.
According to a report in the FT, Liberty Media International, the non-US arm of Malone's investment company, raised more than $200 million (E178.5 million) selling its stake in the Nasdaq-traded cable group, which recently completed a £3.8 billion (E5.7 billion) debt-for-equity swap.
Industry observers commented that Malone's retreat diminished a widely-held theory that the media investor was a possible contender to take over Telewest following the expected merger of the cable operator and NTL.
With Malone's departure, William Huff, president of investment group WR Huff Asset Management, becomes Telewest's most influential shareholder. Huff, a New Jersey-based investor who holds an 18.3 per cent stake in Telewest and is also a director of NTL, is considered to be the most powerful force in determining the future of the industry.
Liberty said
in a filing to US regulators that it had disposed of a 7.5 per cent holding
in Telewest in two tranches over the past month. Liberty sold a portion of
its stake to an affiliate of Lehman Brothers, according to the filing.
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The growth in DSL subscribers was more than double that of the other broadband access technologies in the same year. Total broadband subscribers grew by almost 55 per cent to more than 123 million in the same period.
The European Union (EU) has narrowly taken over from Asia Pacific as the number one DSL region, with a total of over 23 million subscribers - around 11 million of them signing up for DSL in the last 12 months.
China now leads
the world in delivering DSL broadband services, climbing up from fourth position
a year previously. Almost 13 million subscribe to broadband DSL in China,
an increase of nearly 7million in one year (119.4 per cent growth).
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Arrivo on demand has launched its On Demand services with UPC in Norway. The new Near Video on Demand (NVoD) service will allow Norwegian customers more choice in a growing digital TV marketplace. UPC's customers will be able to choose from more than 20 different movies running as frequently as every 15 minutes.
"Norway
is turning off the analogue TV network in 2009 and we believe digital TV services,
particularly On Demand, will achieve a rapid expansion and consumer take-up
in the next few years", comments Susan Elkington, Executive Vice President
of arrivo on demand.
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As anticipated, the consortium led by Sony, which includes cable television giant Comcast, has entered into a definitive agreement to acquire film studio Metro-Goldyn-Mayer, the parties announced. The group will pay $12 per share for MGM and assume about $2 billion in debt for a deal valued at nearly $5 billion.
MGM will continue to operate as a separate, private company after the deal closes next year, with Sony Pictures distributing MGM's films and television shows as well as MGM's valuable library of more than 4,000 films, the companies said.
Comcast, which
had earlier agreed to a distribution deal with Sony, now becomes a part-owner
of MGM. The firm will use Sony Pictures' and MGM's vast catalogue of films
and TV programs to feed its new video-on-demand service. Comcast and Sony
have also agreed to a joint venture to create new cable channels.
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London-based broadcast services company TSI TX is ramping up its playout capabilities with the opening of a new playout facility, which has seen initial channel capacity increase to 32 permanent channels. TSI TX broadcasts channels across Europe on both cable and satellite platforms.
Service enhancements in the new facility will allow interoperability of all file formats enabling broadcasters to deliver content as file transfers over IP from any corner of the globe, providing an open and flexible transmission platform.
The new play-out
platform includes a Sports Production Area which has already earned a major
contract from BT Broadcast Services and European sports rights marketing agency,
Sportfive. The agreement sees TSI TX provide live presentation, voice and
edit services for hundreds of football's UEFA Cup 2004/2005 and FIFA World
Cup Qualifiers over a two year period.
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Spanish telecoms giant Telefonica confirmed it sold 38.9 million shares in Pearson for E350 million. This represented 4.88 per cent of Pearson's share capital. Telefonica said the sale is part of the company's previously announced strategy of "divesting its media assets."
Despite this
policy it is thought Telefonica will hold onto TV production company rather
than take another huge write-off following the $12bn hit on the disposal of
Lycos.
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Swisscom is in the process of acquiring 49 per cent of the shares of CT Cinetrade, a move that will give it access to media know-how, critical to its triple play business.
Cinetrade Group includes pay-TV (Teleclub), cinemas (KITAG) and the exploitation of rights to video or DVD (PlazaVista). Over the next few years, Swisscom can further increase its stake in the company.
Stephan Sager,
who has been the sole owner of CineTrade up to now, will remain CEO of the
Group. Authorities have yet to give their approval for the transaction.
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UK's commercial broadcaster ITV has been given approval to take a majority stake in GMTV, according to a report in Brand Republic.
The advertising trade body IPA objected on the move on grounds that ITV could attempt to merge the GMTV sales operation into its own, which could allow the broadcaster to increase the price of its airtime. IPA asked the Office of Fair Trading to refer ITV's acquisition of Scottish Media Group's 25 per cent stake in the breakfast broadcaster to the Competition Commission.
However, ITV
has been given the green light to buy SMG's stake for £31 million(E46.5
million) without any further investigation. This will give ITV a 75 per cent
holding in GMTV, with Disney holding the remaining stock.
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Wireless giant Qualcomm has signed a licensing deal with Microsoft it claims will make it easier to play audio and video on its handsets.
The deal means the handset manufacturer will be able to ship Qualcomm's new "Qtv" devices with Windows Media Audio and Video codecs beginning in the first quarter of 2005. Qualcomm's next generation of 3G wireless chipsets includes its Launchpad-brand of hardware and software including advanced multimedia, connectivity, GPS technology, improved user interface and removable storage functions.
With the codecs
in place, Qualcomm said consumers can play back and stream Windows Media Audio
and Windows Media Video content on their wireless devices.
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Canada's Global
Television Network announced its plans to start broadcasting in HDTV beginning
on October 11, 2004. The English language network will initially offer six
hours a week of primetime programming in HDTV. Further HDTV programming will
be added to the primetime schedule as it becomes available.
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Mobile operator
Sonera is to launch the commercial use of its UMTS network in twenty locations
in Finland in October. The network will be expanded according to demand. In
addition to building the UMTS network, Sonera also continues to introduce
other high-speed data transmission methods, such as EDGE, into the GSM network.
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