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NEWS Monday 28th February to Friday 4th March 2005
Scroll down page or click below for news - latest first
| Tuesday | |||||
IMS Research has revealed that the number of broadband subscribers has just passed 150 million worldwide. According to the company's latest broadband database update, this represented an increase of 51 million since the beginning of 2004. This tremendous rate of growth shows no signs of slowing, and IMS Research is forecasting that the number of broadband subscribers will surpass 400 million during 2009.
DSL continues to put distance between itself and cable as the most popular broadband technology, with total DSL subscribers passing the 100 million mark in early 2005. "ADSL will remain the dominant broadband technology, especially as higher-speed variants such as ADSL2+ become more widely deployed," states Melissa Yocom, broadband analyst with IMS Research. "However, we expect to see strong growth for VDSL, especially when used in conjunction with extended fibre deployments for TV over IP applications. These higher speed DSL options are going to be critical if the telcos are serious about offering a true triple play of voice, data and video that can offer sufficient simultaneous video streams to go head-to-head with the cable operators."
The uptake of cable broadband is also proceeding at a rapid pace, with much upside potential in markets such as Germany, where initial roll-out has been slow. By the end of 2009, IMS Research is forecasting that there will 83 million cable broadband subscribers worldwide. However, the gap between cable and DSL subscriber levels is set to widen, due to the fact that, while there are over 1 billion telephone subscriber lines in the world, most of which could be DSL enabled, there are only around 530 million homes worldwide that are passed by cable.
Asia still leads
the way in terms of broadband installations, currently accounting for around
43% of subscribers worldwide. However, recent price reductions have led to
strong subscriber growth in Europe, and the region has just passed the Americas
as the next largest broadband market.
Back to top
The State Administration of Radio Film and Television (SARFT) is expected to release two IPTV operating licenses within the next week. According to local media, China Central Television's (CCTV) subsidiary iCCTV and Shanghai Media Group (SMG) subsidiary Oriental Net Television are likely to receive the licenses.
Meanwhile, China
may issue fewer licenses for high-speed mobile-phone services and the permits
may cover regions instead of the entire nation. "The number of the licenses
will be fewer than we previously estimated. We don't rule out the possibility
of issuing regional service licenses," said Chen Jinqiao, director of
telecommunication policy at the Ministry of Information Industry. China had
334.8 million cell phone subscribers at the end of December, according to
government statistics. The nation may add 58 million in 2005.
Back to top
Intelsat has reported results for 2004 with revenue of $1.04 billion and income from continuing operations of $7.0 million. EBITDA from continuing operations for the full year was $621.9 million.
These figures
include the aforementioned $84.4 million non-cash impairment charge for the
loss of the 1A-7 satellite and $26.0 million of one-time and unusual charges
associated with the sale to Apax Partners, Apollo Management, Madison Dearborn
Partners and Permira in January this year.
Back to top
Verizon Communications has authorised MCI to talk to rival suitor Qwest Communications for the next two weeks. But Verizon said it expects it'll still be the one going to the altar.
"Verizon
recognizes that it is in the best interests of the stakeholders of both Verizon
and MCI to address recent market speculation regarding Qwest's claims that
it can deliver greater value to MCI's shareholders," the statement from
Verizon said. "Notwithstanding this speculation, we believe that this
process will result in MCI reaching the same conclusion that it reached after
seven months of discussions with Qwest."
Back to top
In yet another twist in the soap opera at Cablevision, Chairman Charles Dolan announced that holders of a majority of the company's Class B common stock elected Rand Araskog, Frank J. Biondi, Jr., John Malone and Leonard Tow to Cablevision's board of directors.
Charles Dolan
said the new directors will replace William J. Bell and Sheila Mahony, both
of whom recently retired as officers of Cablevision, as well as Steven Rattner
and the late John Tatta. The new directors are expected to serve until the
next annual meeting of stockholders, scheduled for May 19, and then to be
re-nominated for an additional term.
What the new board members mean for Cablevision and its plans to shut down
VOOM, its struggling satellite TV service, was uknown. Charles Dolan wants
to keep VOOM running. But it's believed that his son, Cablevision CEO James
Dolan, is part of the contingent that wants to shut down the operation.
Back to top
More than 674
million mobiles were sold last year globally, said a Gartner report, the highest
total sold to date. The figure was 30% more than in 2003 and surpassed even
the most optimistic predictions, Gartner said. Although people were still
looking for better replacement phones, there was evidence, according to Gartner,
that some markets were seeing a slow-down in replacement sales. Meanwhile
Motorola regained its position as the world's second-largest mobile phone
maker in the crucial fourth quarter last year, pushing rival Samsung of South
Korea back into third.
The US handset maker sold 31.7m units, securing a 16.3 per cent market share
in the three months to the end of the year, which included the key Christmas
period, far outstripping Samsung's market share of 12.2 per cent. The data
released on Wednesday by Gartner, the technology research house, shows a swift
turnround in fortunes for Motorola, which in the third quarter had seen its
share of the market slip to 13.4 per cent, allowing Samsung to clinch second
spot for the first time with a 13.8 per cent.
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KPN DSL Alcatel
has reached an agreement with KPN for the upgrade of their existing DSL infrastructure
in The Netherlands. The contract involves the upgrade of all current DSLAMs,
which were installed and implemented by Alcatel in previous years. As a result
of this upgrade, KPN will be able to offer its subscribers increased bandwidth
with ADSL2plus.
Back to top
London-based
international news provider Independent Television News (ITN) has introduced
a range of new mobile news and entertainment services distributed over the
O2 network. The new services are launched as a part of O2's new consumer 3G
service for post pay customers, which became active on the 1st February 2005.
Back to top
Tektronix has
announced the MTS400 Series Compressed Video Test System that provides the
unique CaptureVu ability to automatically monitor, analyze and debug live
and deferred time video transport streams. The MTS400 Series also provides
the highest performance analysis engine on the market, along with real time
Video over IP monitoring, analysis and recording support for broadband video
and Video on Demand applications.
Back to top
Telecontrol AG
of Switzerland is expanding their product range to include systems capable
of measuring and recording the behavior of MHP-based TV service users. Nionex
GmbH, a wholly owned subsidiary of the DirectGroup Bertelsmann, was commissioned
to develop the first "audience measuring system" for MHP. Nionex
is the German leader in MHP solutions and, in addition to many other innovative
products, developed the world's first HTML browser for MHP.
Back
to top
Culture Secretary Tessa Jowell has published a consultative 'Green Paper' on the review of the BBC's Royal Charter aimed at ensuring a strong, independent BBC for the future. The recommendations are also designed to create a responsive, more accountable corporation that would deliver quality services in the modern, multi-channel digital world.
A key recommendation is the abolition of the current board of Governors to be replaced by a new, transparent and accountable BBC Trust to oversee the corporation – with responsibility for the licence fee and for making sure the BBC fulfils its public service obligations, and a formally constituted Executive Board – responsible for delivering the BBC's services within a framework set by the Trust.
The proposal puts paid to the more radical recommendations of a report by Lord Burns, which suggested that the governors be replaced with a public service broadcasting regulator that could also be responsible for handing a portion of the licence fee to commercial rivals. Jowell's proposals instead reflect the findings of a 2004 report by the media select committee, which recommended formally reconstituting the BBC board of governors as an independent body. "Corporate governance of the BBC should be supervised by the executive board augmented by independent non-executive directors appointed in accordance with the combined code on corporate governance for listed companies," concluded the report.
Jowell also recommends that the BBC to continue to be established by a Royal Charter – the next one should last from 1 January 2007 to 31 December 2016 and that the licence fee continue, at a level to be set in the next phase of Charter Review. Before the end of the next Charter period there will be a review of whether there is a case for other methods of funding the BBC beyond 2016 – particularly subscription.
Jowell told parliament that the Governors' dual role as cheerleader and regulator did not sit easily in a public organisation of the size and complexity of the BBC, lacking clarity, transparency and accountability.
Also included in the Green Paper is confirmation of an "additional special purpose" for the BBC of helping to build a digital Britain; a clear role for Ofcom in external competition regulation of the BBC and consideration, at an appropriate point before digital switchover, of whether public funding, including licence fee income, should be used to fund public service broadcasting more widely beyond the BBC in the future.
BBC Chairman, Michael Grade, said the Government's proposal for a 10 year Charter and secure funding via the licence fee was "a strong endorsement of the BBC as the cornerstone of public service broadcasting in the UK now, and through digital switchover." He said that it was regrettable that the BBC's own reforms had not had time to prove themselves. "But it is important that the issue has now been settled ahead of the new Charter, providing the BBC with the necessary certainty and stability."
The response
to the latest public consultation will feed into a White Paper, which is expected
to be published later in 2005.
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British Sky Broadcasting (BSkyB) has appointed Thomson as the initial manufacturer of the set-top box for its forthcoming High Definition Television (HDTV) service and confirmed that it is on track to launch in 2006. Speaking at the DVB World conference in Dublin, BSkyB's Chief Operating Officer, Richard Freudenstein, revealed that Sky's HDTV box would feature a similar Personal Video Recorder capability to the existing Sky+ box.
Freudenstein said that offering PVR capability as a standard in the HDTV arena will ensure that Sky+'s 6000,000 subscribers would continue to enjoy control and flexibility in association with the highest-quality programming.
Freudenstein added that the step change in picture quality would help BSkyB to achieve its target of 10 million customers in 2010. "Innovation and technology leadership are at the core of the Sky brand," he said. "By introducing HDTV, our ambition is to raise the bar again. We want to re-affirm that the digital satellite platform is the home of the highest-quality viewing experience available."
Sky's HDTV channel line-up will include a combination of sports, movies, entertainment and documentary programming, and will support both 720p and 1080i picture formats. Broadcasters will be able to choose the format which is most appropriate to their individual requirements. Sky's HDTV broadcasts will use MPEG-4 advanced compression coding.
BSkyB expects
that sales of 'HD Ready' TV sets will accelerate as equipment prices continue
to fall and the availability of HDTV programming grows. Although BSkyB's HDTV
box can be connected to any kind of TV set, customers will require an 'HD
Ready' TV set with a flat-screen display of 26 inches or more to enjoy the
full benefits of HDTV picture quality. BSkyB estimates that almost two million
'HD Ready' sets will have been sold in the UK by the end of 2006.
Back to top
Spaincom-controlled cable operator ONO managed to reduce by 27.9 per cent its losses in 2004, reporting a net loss of E87.61 million, against E21.62 million the previous year.
Total revenues amounted to E501.68 million, a rise of 39.9 per cent more, while the EBITDA reached E185.12 million, 79 per cent more than the previous year. By the end of the year, the cable company had 809,934 customers, 35.4 per cent more than the same period last year. Of the total,783,765 are residential clients (34.8 per cent more) and 21,169 business (up 61.2 per cent).
Among residential
clients, ONO's Internet Broadband access service registered the largest growth,
capturing 130,000 new clients (a rise of 68.8 per cent) reaching a total of
314,701 (a penetration of 12.3 per cent). Telephony grew by 28.2 per cent,
reaching 697,934 clients (a penetration of 27.4 per cent). Television rose
by 31.3 per cent up to 445,484 clients (a penetration of 17.5 per cent).
Back to top
Australian pay-TV operator Foxtel has called on the government to act against pay television piracy as part of a raft of regulatory changes sought for the industry.
Kim Williams,
chief executive of Foxtel told delegates at the Australian Subscription Television
and Radio Association (ASTRA) that a federal government review of piracy and
copyright laws needed to ensure that gaining illegal access to subscription
television services was treated as a crime. "Piracy is straight out theft,"
he said.
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Barry Diller's
internet conglomerate IAC is buying a group of catalogues and websites for
$720m to expand its internet and television shopping businesses. IAC units,
Expedia and HSN, will acquire Cornerstone Brands from a group of investors,
including Madison Dearborn Partners and JPMorgan Partners. Cornerstone's portfolio
includes print catalogues and online retail websites of home ware and clothing
brands such as Garnet Hill, Smith and Noble, and TravelSmith. The purchase
forms part of IAC's strategy to strengthen the link between television and
online retailing. Cornerstone will join IAC's electronic retailing unit and
HSN, where operating profits grew 16 per cent in the fourth quarter.
Back to top
Chief Executive
of AOL Dick Parsons has told Wall St he thinks the Internet will be "the
secret sauce that drives" the group's stock price. He said he expects
AOL to be "a real player in the online space," noting that Time
Warner has more content than other Internet giants Yahoo Inc. and Google.
AOL attracts similar traffic as its powerful competitors, but it needs to
do a better job monetising it, Parsons said.
Back to top
Home shopping
channel operator Ideal Shopping Direct has reported a full-year pre-tax profit
of £4.1m (E5.9m), compared to £123,000 a year ago, on turnover
increased 42 per cent to £60.4m. A shake-up of buying and distribution,
and the launch of a Freeview channel in April are credited for the improvement.
Chairman Jim Hodkinson forecasts further good progress: "These results
show the exciting potential in this business and reflect our strong market
position."
Back to top
SBS Broadcasting
has increased its stake in Prima TV to 86 per cent, following the purchase
of an additional 48.8 per cent indirect equity stake and Prima TV debt for
E7.8 million from Romanian Investment and Development srl, which is owned
by Cristian Burci, SBS's former Romanian partner. SBS has held a minority
ownership interest in Prima TV since July 2001 and originally invested in
Prima TV in March 2000.
SBS has acquired Romania's leading FM radio station Kiss FM, and FM radio
station Radio Star for a total of E22.5 million from MG Media Group Holding
S.A.
SBS also announced the appointment of Christoph Buerge, a former member of
the management team of SBS's station TV2 in Hungary, to Chief Operating Officer
of the Company's Romanian operations, the appointment of Peter W Thrane, formerly
chief financial officer of SBS's television operations in Denmark, as Chief
Financial Officer of the Company's Romanian operations.
Back to top
The Winner Channel, UK cable's first iTV fixed odds gaming service, will also be rolled out on the internet and on mobiles, offering users a single account that can be used seamlessly across the three platforms.
The Winner Channel launched on the Telewest cable network last week and will launch on NTL later this month. The Channel is operated by Two way TV, the interactive TV and mobile services specialist, and Zone4Play, a leading provider of multi-platform gaming solutions.
With the Winner
Channel available across the three platforms, players will be able to register
once and play all of the games either on their PCs, on their phones, or at
home in front of the TV.
Back to top
Modulus Video announced its new ME6000, real-time, full resolution high definition (HD) encoder for broadcast. The company says the new system will enable satellite, Telco, and cable service providers, and particularly new IP-based TV services, to provide consumers with the full visual impact of HDTV while using the least amount of bandwidth.
Modulus says the ME6000 delivers the massive processing power – more
than 600 billion operations per second – needed to encode digital video
at Main Profile @ Level 4 (the requirement for HD) and provide high quality
full resolution HD video using low bit-rates.
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to top
Despite the continuing threat from the Internet, new figures from media buying agency Initiative show TV advertising's proportion of global ad spend has risen in the past five years - albeit by a modest 4%.
A report from the research arm of the agency found expenditure on TV advertising grew from 37.7% of global advertising spending in 2000 to a predicted 42.1% this year. This is despite advert avoidance technology such as TiVo and Sky Plus and the growth of rival media such as the Internet and outdoor. Last year TV was the second fastest growing medium.
Spending rose
by 12.1% to $143bn boosted by massive growth in China and presidential elections
in both the US and Indonesia. Global advertising will grow this year by 5.8%
to reach $363bn by the end of the year, allowing the global market to exceed
the boom year of 2000 by 1.7%, for the first time since the 2001 advertising
recession.
Back to top
Spanish telco Telefonica has announced plans to float on the Stock Market a percentage of Endemol's shares by the end of the year. With this spin off the group aims to put a market value to Endemol, the largest European TV production company, paving the way for its future sale, in line with Telefonica's strategy to divest its media and TV interests.
Telefonica acquired
Endemol in 2000 for E5 billion. Endemol, owner of Spanish production companies
Gestmusic and Zeppelin, ended 2004 with total revenues of E1,033.7 million,
a rise of 13.1 per cent, and an EBITDA of E 181 million, 9.9 per cent up in
comparison with the previous year.
Back to top
China's Internet user base is expected to grow 28 percent this year to 120 million by the end of 05, according to the official Xinhua news agency, which cited an official with China's Ministry of Information Industry, or MII.
The gains would
represent an increase over 2004, when the number of Internet users grew 16
percent to 94 million. China is the world's No. 2 PC market, with nearly 16
million units shipped last year and the number expected to grow another 13
percent in 2005, according to IDC. It is also the world's largest telecom
market in terms of subscribers; there were 316 million fixed-line users and
340 million mobile users at the end of January, Xinhua reported Tuesday, citing
new data from the MII. The new fixed-line figure represented an increase of
3.2 million subscribers from the end of December, while the mobile number
represented a gain of 5 million.
Back to top
There is uncertainly over the future of the VOOM satellite venture controlled by cablevision. In a statement this week Cablevision said it ended discussions with VOOM HD, controlled by Cablevision Chairman Chuck Dolan, without reaching a definitive agreement concerning an acquisition by VOOM HD of parts of the satellite TV business. VOOM HD wanted to buy VOOM assets not included in Cablevision's other sales agreement with EchoStar.
As a result, Cablevision said it will eventually close down the VOOM business, providing service to current customers during a 30-day transition period. However, VOOM HD released its own statement, saying it's prepared to finance the continued expansion of the satellite TV service. VOOM HD also said it told Cablevision it's interested in completing a transaction on terms and conditions of a letter of intent the two companies agreed upon several weeks ago. The agreement included the purchase of assets and the assumption of liabilities related to the satellite service.
Tom Dolan, VOOM
HD CEO said, "We are more than ever convinced of the viability of the
VOOM service. We believe our offer to Cablevision is in the best interests
of Cablevision's shareholders and VOOM's 46,000 subscribers across the nation.
If we are able to complete negotiations with Cablevision, we are certain that
VOOM HD will emerge as a robust new vendor providing a valuable alternative
to the two services that now dominate the satellite industry."
Back to top
Vietnam New Generation
Telecom Centre (VNGT) has launched high-speed Internet access via Hanoi Television's
cable television network, the country's first broadband Internet service via
television cable in Ha Noi. Households already with cable television receive
a 50 percent discount on installation fees. Internet access will be called
CableHome for families and BizNet for enterprises. CableHome users have the
option of either paying a monthly subscription of US$6 plus a charge per megabyte
of downloaded content, or a flat US$23) for almost unlimited access. The maximum
download and upload speed on BizNet is 10Mbps and 2 Mbps respectively. Biznet
Cable users will pay a montly subscription of US$14 or a flat US$81 for unlimited
access.
Back to top
NDS and Korea's SkyLife announced the signing of a new five-year contract for NDS to supply VideoGuard conditional access to SkyLife digital satellite broadcast operations as the exclusive supplier.
NDS has been
the exclusive supplier of conditional access systems to SkyLife since commercial
launch in 2002. Initially, NDS VideoGuard CAS supported the digital satellite
broadcasting basic and premium services for over 140 channels of digital audio
and video. As SkyLife has grown their operations to more than 1.5 million
subscribers, NDS VideoGuard now supports over 160 channels with advanced pay-TV
services such as SkyHD HDTV service, SkyChoice NVOD service, SkyTouch interactive
TV service, and most recently the retransmission of terrestrial channels per
region.
Back to top
Kreatel Communications
announced that TeliaSonera Sweden has selected Kreatel's IP set-top box solution
for its recently launched broadcast IPTV service across Sweden. The Kreatel
IP-STB System delivered to TeliaSonera Sweden consists of the Kreatel IP-STB
1510 and the Kreatel TV Software. The software platform provides the set-top
box in the consumer home with functionality and is integrated with other system
components, such as TeliaSonera Sweden's own middleware and Irdeto Access
security solution.
Back to top
OpenTV Corp.,
the interactive television company, announced that FOXTEL, Australia's leading
subscription television provider, will launch in early March 2005 the first-ever
personal digital recorder (PDR) service in Australia. The service, branded
FOXTEL iQ will use OpenTV's PVR 1.0 technology in its digital set-top boxes.
In addition, FOXTEL is using OpenTV middleware technology and applications
to make FOXTEL iQ the only device of its kind that integrates with FOXTEL's
Digital Guide (Electronic Program Guide).
Back
to top
The Board of Directors of France Telecom met on Sunday to accept the resignation of Thierry Breton and appoint Didier Lombard as Chairman and CEO. Breton was last week appointed Finance Minister of France after the sudden demise of incumbent Herve Gaymard in an expenses scandal.
Lombard, previously head of strategy and partnerships, said he would continue with the strategy launched by Breton, who has hauled the group back from debt problems incurred during an over-ambitious expansion spree. The company is in the final year of a three-year recovery plan that was drawn up by Breton's in 2002.
The French state
owns 42.2 per cent of France Telecom, which had sales of E47.2bn last year.
A well connected industrialist, Lombard is credited with helping to achieve
the Franco-Italian agreement that created STMicroelectronics, the chipmaker,
which has proved one of France's few successes in the high-tech sector. He
is also a friend of Bill Gates and it is said Lombard encouraged him to invest
in Thomson, the media, equipment and services group, as part of its recovery.
Lombard is on the board of both ST and Thomson.
Back to top
The creditors
of Adelphia Communications told Time Warner and Comcast that they would accept
an all-cash $17.6 billion offer for the company. The Wall Street Journal,
said the Adelphia creditors would accept the all-cash offer instead of the
current $17.6 billion stock-and-cash offer made by the two companies. But
the Journal said chances are "slim" the bidders will agree to those
terms. Adelphia is working to reorganize under bankruptcy protection, while
also entertaining bids for some or all of its assets.
Back to top
Leading music labels are in talks with online retailers to raise wholesale prices for digital music downloads, according to the FT. But some music executives expressed caution about their ability to push through price increases. Among the biggest groups, Universal Music and Sony BMG are known to be particularly reluctant to disrupt the market for downloads.
Analysts, meanwhile,
are warning that price rises could exacerbate internet piracy, which is thought
to cost the industry about $2.4bn a year.Music industry executives said introductory
wholesale prices for digital tracks had been set low to stimulate demand for
online music sales but the success of Apple's music store had prompted concern
that they may now be too low. The effort suggests several labels believe demand
for online music is robust enough to withstand higher prices, despite the
fact that online sales are estimated to account for about 2 per cent of total
music sales.
Back to top
There may be
a licence fee loophole that allows viewers to watch television on the internet
for free. Although the licensing authorities maintain that anyone watching
television on their computer would need a television licence, Ofcom, the communications
regulator, and the Department for Culture, question that claim. Ofcom says
that there is a grey area as to whether a licence is required for watching
television on the Internet. The uncertainty leaves the BBC open to thousands
of households avoiding the licence fee by watching television on their computer.
Back to top
The digital divide
between rich and poor nations is narrowing fast, according to a World Bank
report. "People in the developing world are getting more access at an
incredible rate - far faster than... in the past," said the report. Half
the world's population now has access to a fixed-line telephone, the report
said, and 77% to a mobile network. But a spokesman for the UN's World Summit
on the Information Society said the digital divide remained very real. The
report's figures surpass a WSIS campaign goal that calls for 50% access to
telephones by 2015. The UN hopes that widening access to technology such as
mobile phones and the net will help eradicate poverty.
Back to top
Imagenio, which
offers around 30 TV channels via upgraded telephone lines, including several
Disney channels and on-demand Spanish programming, is currently available
in Madrid, Barcelona and Alicante, reaching around 7,500 subscribers, with
recent launches also taking place in Bilbao, San Sebastian and Vitoria. The
company plans to extend the service throughout Spain later on this year with
plans to reach 200,000 subscribers by the end of the year.
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Arts Alliance Digital Cinema (AADC), a pioneer provider of digital cinema services, has been selected by the UK Film Council to install and run the world's first digital screen network, a core part of the UK Film Council's strategy for improving access to specialised film and broadening the range of films available to audiences throughout the UK.
In a contract
worth around £11.5 million (E16.5m), Arts Alliance Digital Cinema will
provide a network of up to 250 screens throughout the UK. Each cinema will
guarantee a minimum number of specialised (arthouse/foreign language) film
shows a week in return for the equipment. It is anticipated that the winning
cinemas will be announced in May, with the first installations occurring in
the autumn of this year and the final installation around 18 months later.
Back
to top
Monday 28th February to Friday 4th March 2005
Viacom
sinks on write downs
VoiP:
international peer network
Studios sue more downloaders
Qwest
tables new bid
PBL
profits up
Telecom Italia rises on mobile and broadband
Humax to Develop Boxes for DirecTV
Viacom sinks on write downs
Viacom the number three US media company, reported heavy Q4 losses in the
fourth quarter after writing down an unexpectedly large amount on the value
of its radio and outdoor advertising assets, with charges totalling $18bn.
The group, a loss of $18.43bn compared with a loss of $385.4m in the same
period last year. Viacom wrote down the goodwill of the outdoor advertising
business by $7.1bn and its radio assets by $10.9bn to reflect their declining
value.
It triggered speculation Viacom may be preparing to sell some or all of Infinity
Broadcasting, the second biggest US radio company, which accounts for about
10 per cent of Viacom's revenue. Radio sales were unchanged at $2.1bn, the
worst performing of Viacom's advertising-dependent units, as advertisers increasingly
switched to satellite radio and the internet.
“Having adjusted the valuations of our radio and outdoor businesses to
reflect emerging business trends and the competitive environment, we are now
positioned to fully focus our efforts on the company's fast growing assets,”
said Sumner Redstone the veteran chairman. Overall revenues rose by 6 per
cent to $6.3bn, driven by the CBS TV unit and cable channels MTV and Comedy
Central.
CBS remains the most-watched TV network, bolstered by crime drama CSI: Crime
Scene Investigation and the situation comedy Everybody Loves Raymond.
Cable TV increased sales by 17 per cent, while TV boosted revenue 10 per cent
and outdoor advertising was up 8 per cent. Advertising sales account for 60
per cent of revenue. Aside from flat radio sales, Viacom's entertainment operations,
which include Paramount Pictures, also performed poorly. Revenues dipped 1
per cent as feature film sales slipped.
Viacom has been attempting to revitalise both its radio and Paramount film
operations in recent months. It recently hired Brad Grey, a veteran Hollywood
talent manager, to run its movie studio.
Excluding the charges and the tax benefit, fourth-quarter operating income
increased 10 per cent to $1.3bn, and net earnings from continuing operations
increased 22 per cent to $714m.
Back
to top
Studios sue more downloaders
Hollywood's movie studios have filed a new round of lawsuits against people
who trade illegally copied films and TV shows on the Internet. The civil suits
against unnamed "John Doe" defendants seek up to $150,000 per downloaded
digital file. The studios, represented by the Motion Picture Association of
America, took the opportunity of the Oscars to again press the case that the
illegal copying of films and their black-market distribution on the Internet
is costing them millions of dollars a year in lost revenue.
The studios claim they lose $3.5 billion worldwide in annual revenues from
sales of illegally copied movies on video and DVD formats in street bazaars
and black markets. MPAA officials said "several" of the Oscar nominated
films had illegal copies on the Internet that could be downloaded, but they
named only comedy "Sideways," which is nominated for best picture.
Earlier this month, the MPAA filed lawsuits against computer networks utilizing
a software technology known as BitTorrent, but these new suits were against
end users; the people who actually downloaded the films.
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to top
Qwest tables new bid
Quest Communications International Inc. has modified its $8 billion bid to
buy long-distance telephone company MCI Inc by adding protection against a
drop in its stock price and giving a faster cash payout.
Qwest, the fourth-largest U.S. local telephone company, had its previous bid
for MCI, also worth $8 billion, rejected last week in favour of a $6.75 billion
bid from Verizon Communications Inc. But investors criticized MCI's board
for ignoring a more lucrative deal in favour of a proposal it believed offered
more certainty and future growth potential.
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to top
PBL profits up
Australian media and casino group Publishing and Broadcasting Ltd (PBL) reported
a 26% rise in first-half net profit on higher advertising revenue and the
purchase of the Burswood casino in the west coast city of Perth.
“The Australian economy remains robust, with PBL businesses benefiting
from strong growth in both consumer and advertising spending and with PBL’s
solid earnings growth reflecting the diversity of its business mix,”
executive chairman James Packer said. James is the son of Australia’s
richest man, Kerry Packer, who controls PBL. For the six months to Dec 31,
2004, PBL posted a net profit of A$309.4mil after adjusting for theoretical
casino-win rates and before one-off items, up from A$245.2mil a year earlier.
PBL also owns the Nine Network, Australia’s biggest FTA station. Meanwhile,
Seven Network, Australia's second-ranking television broadcaster, said first-half
profit rose 9.3 percent, helped by a one-time gain from the sale of shares
in a mobile phone retailer.
Net income for the six months to Dec. 31 increased to A$59.3 million ($47
million) from A$54.3 million a year ago, the Sydney- based company said to
the Australian Stock Exchange today. The one-time gains of A$16 million included
proceeds from the sale of B Digital Ltd. Sales rose to A$679.8 million from
A$665.9 million.
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Telecom Italia rises on mobile and broadband
Growth in mobile
and in broadband helped boost Telecom Italia's 2004 figures. The group said
its gross operating margin rose 1.7 per cent to E14.5bn in 2004. Stripping
out currency effects and disposals, the underlying figure increased by E612m,
or 4.4 per cent. Mobile telephony accounted for most of the growth.
Telecom Italia's three-year plan, covering 2004-06, calls for an increase
in underlying gross operating margin of 5.5 per cent on average each year.
It is in the middle of fully integrating its mobile arm into the company in
a deal announced in November with a value of more than E20bn.
Telecom Italia's 2004 revenues were up 1.3 per cent to E31.2bn. The company
said its underlying sales growth, after disposals and currency effects, was
up 4.9 per cent. Net profit for 2004 was E781m, a fall of 34 per cent from
2003.
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Humax to Develop Boxes for DirecTV
Set-top box developer Humax has entered into a development and supply agreement
with DirecTV, a deal that includes producing a new DirecTV DVR that will be
out later this year.
The South Korean company also said the DirecTV agreement covers various set-top
box models, including entry-level receivers that will feature interactive
services and a HDTV receiver capable of receiving MPEG 4 broadcasts due to
ship later in the year.
Humax said it exports its products to more than 90 countries. The company
recorded revenues that exceeded $400 million in 2004, and said it's on track
to exceed $1 billion in revenues by 2006.
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