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NEWS Monday 11th April to Friday 15th April 2005
Scroll down page or click below for news - latest first
| Tuesday | |||||
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IPTV is the engine of the "content everywhere" era. IPTV International is the new journal from Advanced Television Ltd. To find out more and apply for a free subscription click here |
The long-awaited consolidation in the Spanish cable market between the two largest cable operators, Auna and Ono, is back on. ONO is to make a bid for Auna Telecomunicaciones, the fixed telephony and cable division of telco holding company Auna, of between E 2.3 and 2.6 billion.
The proposed bid includes ONO shares and assumption of Auna's debt. To fund the bid, ONO will increase its capital by E1 billion. Existing stock holders private equity funds such as Providence and Carlyle will take part in the capital expansion.
Five months ago,
Auna made a E 2.4 billion bid for ONO. Combined, ONO and AUNA have around
1.7 million subscribers.
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SwitchCo, the organisation that will co-ordinate the UK's switchover to digital television has been formally launched by Ofcom. SwitchCo has been formed at Government request by the public service broadcasters BBC, ITV, Channel 4, five, Teletext and S4C and the digital terrestrial television multiplex operators Crown Castle UK Ltd and SDN, all of whom are represented on its management board and provide funding. Also on the board are two positions representing the interests of the supply chain (television equipment manufacturers, retailers and aerial manufacturers and installers). SwitchCo will work closely with the DCMS, the DTI and Ofcom.
Barry Cox, previously acting Chairman of the SwitchCo working group, is Chairman of the new company. Ford Ennals, previously Managing Director of Universal Group Direct, the direct marketing division of Universal Music, will be Chief Executive, taking up his post in May. Andy Townend, previously acting Chief Executive of the SwitchCo working group, is Director of Commercial & Business Affairs, reporting to Ennals.
Barry Cox, SwitchCo Chairman, said: "Communicating switchover to the UK public needs the leadership of someone with a strong background in marketing and communications. Ford Ennals' experience in launching the new LloydsTSB brand, and his overseeing of the successful merger and integration of the two banks, makes him ideal to head the organisation."
SwitchCo has
three major tasks: To co-ordinate the technical roll out of digital terrestrial
television across the UK, region by region, to a timetable agreed by Government.
To communicate with the public about digital switchover to ensure everyone
knows what is happening, what they need to do, and when. To liaise with TV
equipment manufacturers, retailers, digital platform operators and consumer
groups to ensure understanding of and support for the switchover programme.
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Irish press has reported UnitedGlobalCom (UGC) is looking favourite to snap up the Irish operation of UK cableco NTL.
Last month NTL
said it was "evaluating strategic alternatives for our business in the
Republic of Ireland, which may include a divestiture" and reported that
"considerable interest" had already been expressed by prospective
buyers. French cable outfit UGC is being talked about as a potential front
runner for the E320m acquisition of NTL's Irish operation.
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Silvio Berlusconi is to sell a E2bn euro stake in Mediaset, the Italian broadcaster. His holding company Fininvest currently owns 50.1% of Mediaset, but now plans to sell a 16.7% stake. It follows poor performances in regional elections for the Prime Minister and fulfils earlier promises to cut influence over the media.
Francesco Cardinali,
the JP Morgan banker handling the sale, confirmed in a conference call to
investors that the sale was partly politically motivated. "The timing
is following the recent poor performance of the ruling coalition in the recent
regional elections," he told the FT.
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Sony Corp has said it is open to discussions to create a single standard for the next generation of DVD discs, a move which could diffuse the looming threat of a major format war amongst the world's biggest technology companies.
"From the point of view to provide the best service to the consumer one format is better than two. We're open to discussions," Yukinori Kawauchi, general manager in charge of the next DVD format at Sony's Video Group, said in an interview. "There's no visible progress to do that (create a single standard)," Kawauchi told Reuters at an event organised by Sony.
The electronics industry is facing a battle between the so-called Blu-ray optical discs and HD DVD discs, two different new DVD formats which offer higher capacity than current DVDs.
TDK Corp., Sony
and Philips Electronics are part of a large group promoting Blu-ray against
a group led by Toshiba Corp. and its HD DVD technology. Hollywood studios
are still divided on what format to support. Apple Computer joined the group
of Blu-ray companies last month, with Dell and Hewlett-Packard already pushing
that format.
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BskyB has confirmed its long-awaited audience measurement panel Sky View will launch at the end of the year. The satellite broadcaster has outlined plans to release the first set of robust data on exactly how many people press the red button.
Initial results
from the 20,000-strong viewing panel had been expected earlier this year,
but a string of delays has meant that information won't start being collected
from set-top boxes until Q3 at the earliest. This means that the first phase
of Sky View research is now scheduled to launch in Q4.
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China's cooling on overseas media investment is cooling with new rules limiting investment.
Foreign media companies such as News Corp, Viacom and Sony will be limited to one programme production venture apiece in China. Interest in China among international media groups has surged during recent months after Beijing relaxed its media ownership rules to allow foreign investment in joint venture television, radio and film production companies.
News Corp, Viacom
and Sony are among the media giants keen to set up joint ventures with Chinese
media companies and whose plans of expansion into the country may be limited
by the implementation of guidelines issued in recent weeks. With a population
of 1.3 billion, China could become one of the world's largest media markets,
with spending on print and TV advertising rising 25% last year to $23.3bn.
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Q2 earnings at Apple earnings rose more than six-fold on strong sales of its iPod digital music player. Apple said it sold 5.3m iPods and 1.07m computers in the quarter ended March 26, year-over-year gains of 558 per cent and 43 per cent respectively. Apple said its computer sales marked a record high for the group's second quarter and the highest for any quarter over the past four years.
The group's net
income soared to $290m, compared with $46m.
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Jupiter Telecommunications (J:COM), the largest broadband and cable service provider in Japan released its subscribing household figures for the first quarter of 2005. J:COM owns and/or operates 19 local cable franchises throughout Japan and has a total of 1,922,900 subs to its various services increased by 123,800 year-over-year.
The total number
of households subscribing to J:COM TV increased to 1,628,800 households (of
which 312,200 households subscribed to digital services), an increase of 72,700
households (4.7%) compared to the same period last year. J:COM Net subscribers
increased to 777,200 households, an increase of 110,200 households (16.5%),
and J:COM Phone subscribers increased to 811,900 households, an increase of
202,100 households (33.1%) during the same period.
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SkyStream has announced that OnDemandTV a joint venture of NTT West (Nippon Telegraph and Telephone West Corp.) and Itochu has selected SkyStream's Mediaplex-20 video headend to support a nationwide rollout of IP-based broadcast television in Japan.
After an intense evaluation period, OnDemandTV selected SkyStream's Mediaplex headend as its primary broadcast video source processor. "We expect our IPTV rollout to be highly successful, so it's critical for our equipment to scale to support millions of users and to maintain reliability as the deployment grows," said Yasuyuki Taniguchi, chief manager of engineering for OnDemandTV.
NTT's regional communications business is served by NTT East and NTT West, which provide telephone and broadband services to more than 60 million subscribers. OnDemandTV will use NTT East and NTT West's networks to deliver TV directly to consumer homes. The service will provide 23 broadcast channels as well as an extensive library of video on demand (VoD) movies.
"NTT represents
a new era of IPTV, in which the largest global carriers are deploying IPTV
services," said Andy Lovit, vice president of worldwide field operations
at SkyStream. "By leveraging NTT's extensive subscriber base, OnDemandTV
has the potential to become the largest IPTV service in the world, and its
selection of Mediaplex is a strong endorsement of our IPTV headend as an excellent
solution for large-scale deployments."
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C More Entertainment AB announced it will launch C MORE FILM, a new premium film channel in Switzerland. C MORE FILM will be distributed by Cablecom, the leading Swiss cable operator and will be offered to approximately 1.5 million households.
C More Entertainment operates the CANAL+ brand in the Nordic region, where it is the leading pay television company with operations in Sweden, Norway, Finland and Denmark. The C MORE FILM channel in Switzerland will be the Company's first premium pay channel offered outside the Nordic countries. C More Entertainment is owned by SBS Broadcasting S.A., a leading European commercial television and radio broadcasting company with operations in Western and Central Europe.
Commenting on
the announcement, Marc Antoine d'Halluin, Chief Executive Officer of C More
Entertainment AB, said "We are pleased to have reached an agreement with
Cablecom for the distribution of C MORE FILM in Switzerland and look forward
to positive results from our partnership with Cablecom to develop the channel.
With C More Entertainment's first premium movie launch outside the Nordic
region we look forward to building C MORE FILM in Switzerland and similar
channels in other European countries where opportunities arise."
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TANDBERG Television announced that it has received an order, valued in excess of E5M, from a European Telco for the commercial roll-out of a TV over DSL service. The TANDBERG Television professional hardware encoding solution for Windows Media 9 Series (proposed SMPTE VC-1) has been chosen following a competitive tender process. As part of the new contract TANDBERG Television will provide a number of its EN5920 encoders, TT1260 MPEG-2 professional receivers and an nCompass control and monitoring system, as well as support and integration services.
Meanwhile, TANDBERG
delivered revenues of MNOK 410.4 in Q1 2005, up 21% compared to MNOK 338.5.
Pre-tax profit was MNOK 79.9, up from MNOK 10.7 in the same period in the
previous year.
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Cegetel:
IPTV in October with MPEG 4
From Sotires Eleftheriou in Paris
French telecoms operator Cegetel (part of Vivendi group) is to launch an IPTV service in October. It will use a triple play decoder that it calls the "C-Box", developed by French manufacturer Sagem.
The C-Box will be available at a promotional price of E59 from next week, or may be rented for E3 a month. It will include a built in DTT decoder (and so enable digital reception of channels, such as TF1 and M6, which refuse to be carried via ADSL services in competition with their own) and will be compatible with MPEG4 and have built in telephony. The accompanying high speed ADSL service (up to 20 MB/s) will be priced from E14.90 a month. VoIP, with unlimited calls to land lines, is an extra E10.
The subscription
price of the TV service, has not yet been announced. Negotiations are under
way with the two pay platforms, Canal Satellite and TPS. At least one is expected
to be included on the platform at the time of launch. Industry insiders believe
that Canal Satellite is virtually certain to be carried, so the question remains
of whether both satellite bouquets will be on offer.
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BBC names bidders for BBC Broadcast
The BBC has launched the next stage of the sale process for its commercial subsidiary BBC Broadcast Ltd.
Eighteen organisations are being taken through to the next round, all of whom have "demonstrated strong desire and credibility as potential buyers of BBC Broadcast," says the BBC. The list of financial bidders includes: Advent International, Apax Partners Worldwide LLP, Bank of Scotland Corporate, Barclays Private Equity, Bridgepoint, Exponent Private Equity, HgCapital, Kleinwort Capital Limited, Montagu Private Equity, Palamon Capital Partners LP, The Carlyle Group.
There are also a number of industry bidders among them Ascent Media Group and Thomson/Technicolor.
Peter Phillips, Director, Business Development, who is leading the sale for the BBC said: "We will shortly be beginning a rigorous evaluation of the eighteen bidders, including assessing their effectiveness as long term business partners of the BBC, to produce a shortlist towards the end of May."
BBC Broadcast
describes itself as offering a comprehensive range of services to play-out,
publish, promote and provide media access for content across all media, from
television to mobile phones.
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NTT DoCoMo is trying to renegotiate an exclusive deal with Dutch telco KPN in an attempt to clear the way for O2 to adopt the i-mode services platform across the UK, Germany and Ireland.
O2 wants to adopt i-mode to step up its content services as it prepares for a commercial 3G launch next year. But KPN is proving a barrier as the Dutch group already has a contract with DoCoMo to be Germany's sole provider of i-mode. KPN, which runs E-plus, the third largest mobile operator in Germany, is facing fierce competition from its rivals and O2 in particular has been gaining market share on the back of its revitalised brand.
DoCoMo sees i-mode as crucial to its international expansion strategy. After a slow start, i-mode, which has over 40m users in Japan, is starting to gain traction across Europe. But with established i-mode partners in key European countries including Italy, Spain, France and Germany, the UK has been a major gap in DoCoMo's international i-mode strategy.
Meantime, ahead
of what are expected to be disappointing results, DoCoMo has said it is considering
linking up with a bank to diversify its revenue stream, saying it is no longer
viable for mobile phone operators to rely simply on network voice or data
traffic for growth.
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Spanish
TV HDTV forum
From
David Del Valle in Madrid
Manufacturers, producers, broadcasters and cable and satellite operators have joined forces to set up a HDTV forum: FORO HD, in an attempt to boost the introduction of High Definition.
Presided by Miguel Pingarron, Director of Development of Astra Spain, FORO HD "aims to promote the public awareness to speed up the transition period to HD technology".
This Spanish HDTV forum will closely work with its counterparts in France (Club HD) and in other European countries such as Germany, Belgium and Portugal. It will meet with the French Club HD at NAB "in an attempt to co-ordinate initiatives and join forces to create a Pan European HD Association".
FORO HD is formed,
among others, by: ASTRA, BROADCAST MEDITEL, GENLOCK, HISPASAT, PANASONIC,
PIONEER, SAGEM, SCIENTIFIC ATLANTA, SONY, THOMSON, VIDACTIV@, VIDEO IEC and
VITELSA.
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US MSO Cox Communications announced plans to launch interactive television in up to five of its markets by the end of 2005. The first cable system to launch will be Cox's Gulf Coast operation this spring.
"iTV will
further enhance the value of Cox Digital Cable with new and exciting applications,"
said David Pugliese, Cox's vice president of product marketing and management.
"It provides access and convenience so customers can easily find valuable
information not traditionally available via TV and view the information using
a remote control."
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UK regulator
Ofcom says it will publish its planning options for digital switchover in
the next three months. The commitment forms part of Ofcom's annual work plan
for the year. The plan says Ofcom will begin a consultation on the technical
and commercial options for the use of spectrum released by switchover in the
fourth quarter of the year. Ofcom will "ensure mechanisms are in place
to achieve switchover between 2008 and 2012 and that the resulting release
of spectrum is dealt with in a way that is market driven as far as possible
and consistent with Ofcom's strategic approach". The plan says there
will be "no announcement on the use of spectrum released by switchover
until after the Regional Radio Conference in June 2006".
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Cogeco
down on Q2
From
Gail Chiasson in Montreal
Montreal-based Cogeco Inc. has suffered a second quarter loss of Cdn$28.5 million (E17.8 million) after declaring a major writedown on the value of its TQS French-language TV network.
A writedown of $29.6 million before taxes on TQS resulted in the loss by Cogeco of $28.5 million compared to a second quarter loss a year ago of $1.1 million. However, revenue in total moved up to $166.6 million (€104.2 million) from $158 million.
Cogeco blames the writedown on both loss of viewers and loss of advertising revenue to both conventional and speciality TV. However, Cogeco president Louis Audet says that Cogeco is committed to TQS and is taking steps to overhaul the network.
Cogeco Cable,
a Cogeco Inc. company, reported a quarterly profit of $5.6 million compared
to second quarter a year ago of $588,000 Increased by new clients for high
speed Internet, revenue grew from $131.6 million to $138.4 million.
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EchoStar CEO Charles Ergen said during his monthly "Charlie Chat" with consumers that the company is exploring an "opportunity" to obtain some of VOOM's HD programming. EchoStar is looking to MPEG 4 technology to help expand its high-def slate. Once MPEG 4 is rolled out, DISH Network will look at obtaining additional HD programming, Ergen said.
Cablevision operates
VOOM, but will shut down the operation April 30 due to lackluster consumer
response and the cost of running the satellite TV platform. EchoStar and Cablevision
signed a $200 million deal in January that will give EchoStar VOOM's only
satellite - Rainbow 1 - and other related assets.
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FOXTEL and Optus have reached an agreement for Optus to commence selling the FOXTEL Digital service. Under the agreement, Optus will invest in the upgrade of its cable network to offer its customers the full complement of services within FOXTEL Digital (over 100 channels of programming with unique and popular interactive features) including the FOXTEL Digital guide and the FOXTEL iQ, the recently-launched FOXTEL personal digital recorder. It will also act as a non-exclusive agent for FOXTEL Digital in areas where it does not have its own cable.
FOXTEL Chief
Executive Kim Williams said: "FOXTEL is delighted to have Optus' commitment
to FOXTEL Digital through this new strategic partnership. FOXTEL Digital is
a superb consumer entertainment and information service and this arrangement
will have very positive outcomes for consumers and the way they can choose
to take their services".
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With the introduction of the 4Caster Mobile and the 4Coder HD system families, Envivio Inc. becomes the first company powering MPEG-4 broadcast video services from mobile to HD. The newest encoders offer the most advanced implementation of the MPEG-4 (including AVC / H.264) specification to provide the best video quality at the lowest possible bit rate.
"As service
providers expand their offerings, maximising bandwidth usage is critical to
their success. Broadcasters and enterprises can use Envivio systems to efficiently
deliver video services over their existing networks," said Julien Signès,
President and CTO of Envivio Inc.
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Entriq provide Channel 4 pay platform
Entriq the content management solutions specialist will be providing an online pay media platform for Channel 4's next series of Big Brother. Channel 4 will stream live video from the Big Brother house 24/7 and consumers can tune in online and watch what is happening in the house whenever they want. Channel 4 will offer subscription packages of different lengths and prices, as well as pay per view for special video clips that people may have missed.
Entriq will provide security for all online video content, it will also provide a ‘white labelled' customer care and billing solution, including live chat and email for consumers, allowing Channel 4 to provide a personalised and professional user friendly consumer experience.
Jan Steenkamp,
CEO of Entriq said "Entriq has been involved from the outset in the business
of monetizing broadband media. In recent months we have seen a growth in the
success of our customers' online media efforts leading us to believe the sector
is maturing. We are delighted to be working with Channel 4 on this exciting
opportunity.
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Widevine Technologies, the content security solutions provider to the video over IP market, announced three milestone deployments of Cypher Franchise the first content security franchise solution in the industry. Cypher Franchise now enables ChungHwa Telecom, Taiwan; Arvig Communications, Detroit Lakes, MN; and South Slope, North Liberty, Iowa, to distribute pre-encrypted broadcast and VOD content to smaller downstream operators.
"Cypher
Franchise lowers the head-end expenditure for smaller operators so they can
acquire content security and it opens the door for premium content acquisition
not previously available to these operators," said Brian Baker, CEO of
Widevine Technologies. "Larger operators, who have standardised on Widevine
Cypher, now have a new business model for distributing secured content downstream."
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UK’s Crown Castle is expected to make an additional three new slots available before the end of this year. The move would bring the number of channels offered by the company, which holds the licence to two of the six multiplexes used to broadcast the Freeview channels, to four.
The additional
capacity has been achieved by technology developments that have allowed the
company to broadcast the additional channels using a limited amount of bandwidth.
Demand for the slots is likely to be high, especially from those broadcasters
who missed out in the auction for the first two channels. ITV won one and
C4 is expected to be announced as the winner of the second soon. Five, Disney
and Turner Broadcasting were all reported to have made bids.
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US DTH growth not hurting cable
Although DTH
signed up more than 3 million customers in 2004, the impact on most cable
operators was relatively small, says a report from Strategy Analytics. "U.S.
Multichannel TV Update: Satellite Gains, But Does Cable Lose?" said that
while DirecTV and EchoStar's DISH Network added 3.2 million new customers
in 2004, the 10 largest cable operators didn't come close to losing that amount
of basic subscribers. The research company said it believes cable subscriber
losses will decline this year, as underperforming companies, such as Adelphia
and Charter, are acquired or reorganised. At the same time, market leaders
such as Comcast, Time Warner Cable and Cablevision, will expand availability
of triple-play bundles combining video, broadband Internet and IP-based phone.
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ITV is reportedly set to launch a joint venture children's channel with Nickelodeon to be called INK, an acronym for ITV, Nickelodeon, Kids.
The long expected
hook-up will form part of ITV’s digital portfolio and run Nickelodeon
and ITV product. ITV’s main FTA channel is cutting back on its children’s
programming hours.
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UBC radio instant download plan
UK’s UBC Media, owner of Classic Gold and Britain's largest independent radio production company, is putting E600,000 into a new digital radio music download service. The company is developing new software for listeners to download songs they hear on the radio "at the touch of a button" for a "more keenly priced" fee than Apple's iTunes.
UBC holds one
of two data spectrum licences - BT has the other - which allows it to send
data via digital radio. It has been testing new radio sets that allow tracks
played on the radio to be downloaded to an integral smart media card, like
those used in digital cameras. It is in talks with record companies about
the payment of royalties and manufacturers about getting a portable digital
radio set with smart card on the market by March 2006.
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Kids
demand Cartoon Network
From Colin Mann in Cannes
Cartoon Network’s ‘toons’ will soon be available at the push of a button following a deal between London-based broadband entertainment provider Video Networks Limited (VNL) and Turner Broadcasting. Cartoon Network On-Demand is to launch April 25 on VNL’s HomeChoice service as part of the ‘Kids Package’.
The programmes will be accessed via a Cartoon Network-branded video wall. Once a show has been selected via a remote control, several episodes can be watched there and then. The on-demand functionality also means that the viewer can pause, fast-forward or rewind.
Christine Mitchell,
VNL Executive Director TV and Internet Product noted that subscribers had
the chance to watch Cartoon Network exactly when they wanted. "We know
that kids love the idea of on-demand programming." Casey Harwood, Commercial
Director of Turner Broadcasting System Europe described the development of
branded, on-demand environments as the next step in extending Turner’s
brands and programming into the non-linear space.
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SES Group increased its shareholding in Satlynx from 41% to 77%, taking full operational control. As a result of the equity realignment, Alcatel Space and Gilat now hold 6% and 17% of the shares of Satlynx, respectively. The SES participation will be managed through SES ASTRA.
Ferdinand Kayser,
President and CEO of SES ASTRA, stated: "This shareholder restructuring
enables us to further align Satlynx with the strategic objectives of SES ASTRA.
Satlynx’s managed networks expertise complements SES ASTRA’s and
is consistent with our strategy of developing our ability to provide end-to-end
customer solutions."
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A multimedia version of the iPod with a video iTunes store could be available by next year, according to two financial analysts with UBS Investment Research.
They maintain that Apple is monitoring how consumers receive the video playing features in Sony's PlayStation Portable as success would validate the market for a multimedia version of the iPod.
Apple chief executive
Steve Jobs has suggested a movie playing iPod is not part of the company's
plans.
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Music industry issues 1,000 writs
The global music industry launched its largest legal action against alleged online pirates with almost 1,000 lawsuits in 11 countries. Leading groups - including Universal, Sony BMG, EMI and Warner - have endorsed the drive to curb file-sharing, estimated to cost the industry $2.4bn a year in lost sales.
The International Federation of the Phonographic Industry (IFPI), representing 1,400 record companies, said the latest action would target Asia for the first time with lawsuits in Japan. The film industry, which already claims to be losing $3.5bn a year to internet piracy, is watching the legal tactics in music as a possible model for its own action.
Before launching
lawsuits, the IFPI is issuing warnings to alleged pirates to stop copying
or face potential fines. So far, more than 12m warnings have been sent in
12 countries.
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Space Systems/Loral
has started construction of the TerreStar-1 satellite, a spacecraft that will
have the capabilities of communicating with cell phones. TerreStar-1, with
an antenna almost 60 feet across, will communicate with terrestrial base stations
and standard wireless devices, the company said. Along with joint venture
partner TMI Communications, TerreStar will utilise spectrum re-use to deploy
a hybrid network that will provide seamless wireless services to urban, rural
and remote regions of North America.
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UK music retailer HMV is to ditch its digital music partner Loudeye subsidiary OD2 in favour of MusicNet, as part of a relaunch of its digital download store begun last December. The retailer vowed to spend E15m in a bid to catch up with higher-profile providers like Apple's iTunes, Napster, Woolworths and Tesco.
As before, HMV's
download service will offer Windows Media tracks, so there's no iPod support,
leaving HMV fighting it out with Napster.
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Cablevision has, as expected, confirmed it will cease operations at the struggling satellite TV unit, which in about a year and a half managed to gain only 40,000 customers.
On its Web site during the weekend, VOOM said it will cease service for existing customers on April 30. The company also said new customer orders will accepted, and VOOM is unable to complete any scheduled installation or service appointments.
While the VOOM
service is being shut down, Cablevision is working to sell VOOM's assets.
Cablevision has a $200 million deal in place with EchoStar, in which the DBS
company will buy a satellite and related assets. Also, the company's board
instructed management to continue to analyse whether VOOM's 21 high-def channels
can be marketed to other satellite TV and cable providers as part of the company's
Rainbow programming operations.
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America Online and XM Satellite Radio are creating an online radio service together. The new co-branded service, which hasn't been named yet, will replace the current paid service on XM's Web site and will replace AOL's current radio services -- AOL Radio and Netscape Radio.
For AOL, it is part of efforts to turn itself around, in the past two years, four million AOL subscribers have defected, primarily to cable and phone companies that provide high-speed Internet connections. For fast-growing XM, with 3.8 million subscribers, the deal is about marketing to AOL's 22 million subscribers.
In the new deal, AOL subscribers will get free access to about 70 XM commercial-free radio channels, in addition to the 130 radio channels already offered by AOL. AOL will also offer a limited version of the new radio service on AOL.com starting this summer. That service will carry only 20 XM channels, in addition to the 130 AOL channels. Of the 20 free XM channels, half will stay consistent and half will rotate to introduce Web surfers to more of XM's product.
AOL will create
a paid radio service for non-AOL subscribers that will carry about 70 XM stations
in addition to all of AOL's stations and a handful of third-party stations.
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ZTE
and Atlas sign US$1 billion pact
From
Shveta Malik in New Delhi
In one of the biggest deals in the telecom sector in India, Chinese company ZTE Corporation has signed a US$1 billion investment pact with the Gurgaon-based Atlas Interactive India for telecom services. The agreement also includes a $150 million contract for Atlas to buy mobile equipment from ZTE.
The agreement says Atlas proposes a mobile and basic telephone service in India and is acquiring licences in Delhi, Mumbai, Maharashtra, Karnataka, Himachal Pradesh, Andhra Pradesh, Punjab and West Bengal.
Sanjiv Kapoor, chief technology officer of ZTE, said the deployment of the basic and mobile services is expected over the next 12-18 months. "This agreement is in addition to the pact we have with ZTE to provide TV over Internet, as also video on demand, music, video conferencing, messaging and Net access in satellite townships around the national capital," said Kapoor.
Last year Atlas
Interactive signed a revenue-sharing deal with Indian state-run telco BSNL
to offer TV over IP, time-shifted TV, interactive TV, video-on-demand, and
videoconferencing.
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Verizon is now believed to have the support of around 20 per cent of MCI shareholders after unexpectedly striking a deal this weekend with Carlos Slim Helu, MCI's biggest shareholder. Verizon has agreed to pay $1.1bn to buy 43.4m shares.
The Mexican billionaire acquired a stake of over 13 per cent in MCI before it emerged from bankruptcy and has made several hundred million dollars from the deal.
Verizon is locked
in a bitter bid battle with Qwest for the hand of MCI.
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The world’s second-largest flat-screen maker, reported its first quarterly loss since 2001 as prices fell due to over supply, but it forecasts a rebound in the second half.
Prices of LCDs slipped 10 per cent in the first quarter, the company said. That followed a fall of more than 40 per cent in the second half of 2004. Prices have crumbled because demand for expensive flat-screen TVs has failed to meet the expectations of manufacturers, who are spending more than $40bn to ramp up production over the next decade.
LG Philips posted
a net loss of $78m for the first quarter to March 31, better than analysts
forecasts.
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E!
goes wireless in NZ
From
Colin Mann in Cannes
Marking its first foray into international wireless deals, E! Networks is partnering with Telecom New Zealand to provide customers with short-form video streaming clips available via their wireless devices. Subscribers will now be able to receive the latest entertainment news, celebrity dish, red carpet moments and ‘Wild On’ clips.
"Our new partnerships with Telecom New Zealand demonstrates our dedication to extending the E! brand to the world of wireless," said John Najarian, Vice President, New Platform Development, E! Networks, adding that the services would be a great companion to the E! Entertainment Television network in the region.
"Our new
T3G 'Video Clips' service is a new way for our subscribers to keep up to date
with information and enjoy entertainment," added Kevin Kenrick, GM Mobile
at Telecom NZ. "With our new partnership with E!, our customers in New
Zealand will now not have to miss the latest news about their favourite stars
because the information will reach them - wherever they might be."
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Press Red, the UK interactive TV advertising specialists, have teamed up with Tui interactive media to provide creative design services for interactive TV advertising.
"With our
technology having led the way in interactive TV advertising over the past
four years it has been a natural progression for us to move into providing
creative design services" said Chris Moreton, Press Red’s co-founder
and CEO. "The increasing demand from our clients for us to combine our
understanding of interactive TV technology with interactive creative design
has meant the time is now right for us to extend our offering. Tui, one of
the UK’s leading interactive design agencies, have been involved in interactive
TV design since the early days of Sky, and the synergy between the two companies
is perfectly balanced for a successful partnership."
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Arts Alliance appoints Kiedaisch
Arts Alliance
Media, the provider of digital cinema services has appointed Howard Kiedaisch
as chief financial officer. Kiedaisch, who joins from Universal Pictures International,
will also be president of Arts Alliance Digital Cinema (AADC), the subsidiary
which focuses on the development and deployment of new technologies in order
to improve service to film consumers and the industry. AADC has recently been
appointed by the UK Film Council to manage the world's first large scale digital
screen network.
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Children’s
TV broadcaster Jetix has promoted its director of scheduling in the UK, Nathan
Waddington, to director of pan-European acquisitions, replacing Henrietta
Hurford-Jones who stepped down last month.
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Taiwan Television selects SysMedia for MHP
SysMedia, a specialist
in subtitling solutions and content management and production systems for
interactive TV and teletext, has announced that its Plasma Magenta interactive
TV content management and production system has been selected by Taiwan Television
Enterprise (TTV) as a core part of its interactive DVB-MHP solution.
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AOL VoIP launched in 40 cities
AOL has confirmed it is launching its Internet phone service in more than 40 cities, offering prices as low as $13.99 per month as part of an aggressive rollout campaign.
AOL said it would offer three pricing plans for its AOL Internet Phone Service to current AOL subscribers, from $13.99 for a local calling plan up to $29.99 for unlimited North American calling and low international rates. The prices increase by $5 after three months.
Vonage, the largest
VoIP service with more than 500,000 subscribers, offers unlimited calling
for $25. Some smaller providers offer unlimited calls for less than $20 per
month.
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TW, Comcast agree Adelphia buy
Time Warner and Comcast have reached an agreement in principle to buy Adelphia Communications, beating off Cablevision System’s late bid of $16.5 billion cash. They have agreed to pay $12 billion in cash and slightly more than $5.6 billion in stock in a company that would be created out of Adelphia and Time Warner's cable unit, the Wall Street Journal reported.
Representatives of the purchasers and Adelphia have met with a federal bankruptcy judge to discuss final procedures for completing a purchase. The deal must be approved by Adelphia's board of directors, the committee representing unsecured creditors, and the judge.
Adelphia, the
nation's fifth-largest cable company, has been operating under bankruptcy
protection since June 2002.
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According to US press reports, the Cablevision board of directors has agreed to put an end to the company's struggling VOOM service, which chairman Charles Dolan had been attempting to keep alive.
Reports say the 15-member board, including Dolan, voted to adopt a timetable to shut down the service. It's unclear what the timeline will be or if there’s a deadline for ending the service.
A week had passed since the company's deadline for Dolan to report back to the board about his intentions to take over the satellite TV unit. Dolan had promised to fund the operation through the end of March, in order to find a way to take control the service or find additional funding.
Dolan had established
VOOM HD to take over remaining assets of the satellite TV unit that weren't
being bought by EchoStar. In January, EchoStar agreed to pay Cablevision $200
million for the lone satellite supporting VOOM and other related assets, and
that deal is awaiting regulatory approval.
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China
to overtake US in broadband
From
Shveta Malik in New Delhi
China is being tipped to takeover the US in broadband Internet access by the end of 2005, provided the number of subscribers to broadband Internet access services continues to grow at current rates, according to market analyst Point Topic Ltd. In 2004 the US had 33.9 million broadband subscribers, and China 25.8 million.
The two countries are followed by Japan (18.1 million), South Korea (11.9 million), Germany (6.9 million), France (6.8 million) and the UK (6.1 million).
In all, there are 150.5 million broadband subscribers worldwide, using either DSL (Digital Subscriber Line) or cable modems. The base, which grew by 50 million in 2004, is expected to rise to 215 million by the end of the year.
South Korea still
leads the world for the proportion of broadband subscribers in its population.
Household penetration of broadband in South Korea is estimated to be 76 per
cent, followed by Hong Kong at 64%.
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Hutchison Whampoa is delaying the IPO of its Indian mobile operation from June to the second half of this year as it awaits regulatory clarity on foreign investment limits. The fast-growing India business is the crown jewel in Hutchison Telecommunications International, and the listing is expected to raise roughly US$350-$500 million, which the company will use to invest in its growth.
Hutchison Whampoa has said it hopes to list its Italian third-generation mobile business late this year, while it is eyeing next year to list its 3G operation in the UK.
In his Hutchison
Whampoa results statement last week, Chairman Li Ka-shing said plans were
being put in place to set up new capital structures for the 3G units as the
business becomes self-financing in the 2005-2006 period.
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CanWest Global
Communications, Canada's largest media company earned C$28.2 million (C$23.1
million) in the second quarter as interest expense fell and sales rose. Sales
rose 4 percent to C$688.7 million from C$661.9 million, company in a statement.
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Channel 4 has
let a co-operative pact with Discovery expire, ending Discovery’s first-look
multichannel rights to C4 shows such as Property Ladder and Place in the Sun.
C4 will now be able to keep the programmes for its new More4 channel.
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SES Americom appointed Edward Horowitz president and CEO. Horowitz will report to Romain Bausch, president and CEO of SES Global.
The new SES Americom CEO most recently founded EdsLink, a venture fund providing strategic financial, operations and technology consulting services. Among other jobs, Horowitz served as strategic advisor to the CEO of Cablevision's satellite division, Rainbow DBS.
Meanwhile, Astra 1M will replace Astra 1H and provide in-orbit backup capacity for the Astra fleet at 19.2 East. The satellite will carry 32 active Ku-band transponders.
The spacecraft
is being procured ahead of the projected satellite replacement schedule in
order to provide additional security to support SES Astra's growth at the
28.2 East orbital position serving the UK and Irish markets. Astra 2C, currently
in service at 19.2 East, will indeed be relocated to 28.2 East following the
successful launches of Astra 1KR and ASTRA 1L, to provide additional capacity
to meet the strong demand in the UK and Irish markets.
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