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Cover Story - HD goes for Gold
July/August 2005

Asia Watch - Healthy Outlook for Asia Media

July/August 2005

Broadband - Anga Cable 2005
July/August 2005

US Watch - Satellite Radio: Can Everyoone Win?
July/August 2005

Telecoms - Wireless Watch
July/August 2005

 

 

NEWS Monday 2nd May to Friday 6th May 2005

Scroll down page or click below for news - latest first

Tuesday

Friday 6th May 2005

TV costs hit News Corp Q3 results
TI and Microsoft to develop Media Centres
EchoStar: Q1 subs and profits up
KT plans wireless broadband expansion
Record profits for Spain's Tele 5
Local weather for Smartphone Users
ANT builds Asia Pacific business
Viasat wins Champions League extra time
RTV38 makes MHP interactive choice

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TV costs hit News Corp Q3 results

News Corporation has reported third quarter consolidated revenues of $6.0 billion (E4.6 billion), a 17 per cent increase over the $5.2 billion in the prior year, and consolidated operating income of $889 million, up 9 per cent over the $815 million a year ago. The year-on-year operating income growth was driven by double-digit percentage increases at the Filmed Entertainment and Cable Network Programming segments.

However, television segment operating income was down 15 per cent, with STAR’s growing profitability being offset primarily by higher programming costs at the FOX network. Digital satellite platform SKY Italia’s operating results continued to improve, with a growing subscriber base that now exceeds 3.2 million.

Chairman and Chief Executive Officer Rupert Murdoch noted that the third quarter results were led by the strong performances of News Corp’s filmed entertainment and cable network programming segments and was achieved despite a weaker performance at television. "While the television segment was down year-on-year, reflecting higher programming costs and the soft advertising marketplace in the US, our stations generated record market share and the broadcast network, on the heels of its victory during the February sweeps," he added, predicting that the network was poised to win the broadcast season ratings race for the first time in its history.

Murdoch suggested that SKY Italia, buoyed by revenue expansion of 20 per cent in local currency, was continuing on its path to profitability, which was expected in the fourth quarter as subscriber churn remained at low levels. He also expressed satisfaction with the operating progress being demonstrated by DirecTV, with net new subscriber additions of 505,000 during the quarter and an encouraging reduction in churn. "The financial and operational momentum we have maintained across our broad asset base gives us confidence in our ability to achieve the fiscal year targets we have set," he concluded.

The News Corp chairman also sought to ally fears over the role of Liberty Media ever since its chairman, John Malone, quietly accumulated an 18 per cent voting stake in News Corp, leading to fears of a takeover.

Murdoch told analysts on a conference call that there were various alternative ways of dealing with its $6 billion in cash., but said that News Corp would not make up its mind to do anything "until we resolve the Liberty position, which we would expect to do certainly before we get back to you again in three months."
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TI and Microsoft to develop Media Centres

Texas Instruments Incorporated (TI) has confirmed that that it is working with Microsoft on future versions of the Windows Mobile-based Portable Media Centre Software Kit, enabling manufacturers to develop Portable Media Centres with TI hardware. TI provides an integrated, solution to meet the growing hardware demands of such devices.

"Portable Media Centres have created new opportunities for people to take their entertainment - video, photos and music - with them anywhere, anytime," said John Pollard, director of Windows Mobile Applications and Services Marketing at Microsoft Corp. "TI’s Digital Media processors will help our Windows Mobile-based device manufacturers deliver more choices as the category continues to evolve and expand."

Chris Schairbaum, worldwide business manager of TI’s Portable Audio and Infotainment business unit predicted that the collaboration between TI, as a specialist in portable media silicon, and Microsoft, with its expertise in PC and mobile software, would accelerate the availability of highly optimised and affordable Portable Media Centres to consumers worldwide. "Since developing the first processor for portable audio/video players several years ago, TI has continued to provide foundational technology to our customers, enabling breakthrough consumer products for the home, the car, the office or anywhere in between," he added.
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EchoStar: Q1 subs and profits up

US digital satellite broadcaster EchoStar Communications’ first quarter results revealed that satellite television service added approximately 325,000 net new subscribers, giving it a total subscriber base of some 11.23 million as of March 31, 2005.

EchoStar also reported total revenue of $2.02 billion, a 28 per cent increase compared with $1.58 billion for the corresponding period in 2004.

Net income totalled $318 million for the quarter, compared with a net loss of $43 million during the corresponding period in 2004. The figure includes a $134 million gain related to the $240 million settlement of EchoStar IV satellite insurance and related claims. Net loss for the quarter ended March 31, 2004, included a $78 million charge related to early redemption of certain debt securities during that quarter.
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KT plans wireless broadband expansion
From Shveta Malik in New Delhi

South Korean telecommunications company KT Corp. has plans to invest US$0.2 billion this year to work on its infrastructure for wireless broadband. The company plans to launch its commercial service in April 2006.

"We plan to make Wibro (wireless broadband) a core business for future revenue even as our competitors give up the business and remain passive in investment," said Kwon Haeng-Min, chief financial officer, KT. He said the company’s target is to secure 160,000 Wibro subscribers, mostly in Seoul and other urban areas by the end of 2006.

In January this year, authorities awarded licences to Hanaro, along with KT, and SK Telecom Co. (SKM), to launch broadband Internet access through mobile devices such as cellular phones and personal digital assistants.

KT reported a 7 per cent rise in quarterly profit as improving Internet and mobile business outweighed declines in land-line calls. KT earned US$365.9million in net profit for the quarter through March.
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Record profits for Spain's Tele 5
From David del Valle in Madrid

Mediaset-controlled network, Tele 5 has ended the first quarter of the year with a record profit of E64.5 million, 58.7 per cent more than the same period last year (E40.6 million).

Total revenues rose by 23.1 per cent to E213.27 million. The network increased by 20.1 per cent its ad revenues up to E203.7 million. The EBITDA amounted to E96.18 million, up 58.9 per cent, and the EBIT reaching E93.03 million.

The spectacular growth stems from a good performance of the advertising market, a cost-cutting policy and high audience results.

Tele 5 has consolidated its leading position in the ratings with an average share in the first quarter of 22.5 per cent, followed by Antena 3 TV (21.1 per cent) and TVE (19.3 per cent).
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Local weather for Smartphone Users

An expanded partnership between SmartVideo Technologies and The Weather Channel will now offer detailed local weather coverage for US Markets. The Weather Channel has created a made-for-mobile service that will enable SmartVideo subscribers to view on-demand video clips, including forecasts presented by an expert from The Weather Channel, as well as clearly legible maps, graphics and other information.

In addition to the local content, consumers may now choose specially formatted video clips for national, regional and severe weather programming. In particular, when severe weather events occur, SmartVideo subscribers can access frequent updates from the field while they are on the go, thereby making plans for themselves, sharing information with others and avoiding potentially dangerous conditions.

Richard E Bennett, Jr, president and CEO of SmartVideo, said that his company believed the opportunity to provide specific local weather reports, complete with full-motion video, usable forecasts and terrific graphics, had the potential "to really engage and excite consumers around the country and around the world."

"SmartVideo has been a pioneer in delivering high-quality video to mobile consumers, and a great vehicle for us to deliver trusted and relevant content to consumers wherever they are," added Louis Gump, vice president of mobile for The Weather Channel Interactive. "Now, we can complement the live signal from The Weather Channel with on-demand clips, truly giving consumers the best of both worlds. This is a window into the mobile experience of the future."
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ANT builds Asia Pacific business

IPTV and consumer electronics ANT has picked up two new set-top box customers in Taiwan. Askey Computer Corporation and Alpha Networks, have licensed ANT's Fresco browser and PurePlay digital media manager technology for integration into IPTV set-top boxes (STBs) targeted on operators in the United States, Europe, China, Japan and Taiwan. The deals build on the successful August 2004 launch of ANT's Singapore office to serve a growing client base in China, Taiwan, Singapore, India, Japan, Hong Kong and Australasia.

"Since the opening of our Asia Pacific office we have been able to broaden our global market presence and locally serve the consumer electronics manufacturers such as Askey and Alpha Networks," said Francis Quek, Asia Pacific vice president for ANT.

"Working with ANT allows us to present operators with the opportunity to take advantage of the growth in IPTV and deliver dynamic new content to their subscribers," said Eric Lui, research and development vice president, Askey Computer Corporation.
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Viasat wins Champions League extra time

International entertainment-broadcasting group Modern Times Group has prolonged its exclusive live broadcasting rights to the UEFA Champions League, for Sweden, Norway and Denmark, until the end of the 2008/2009 championship in the Spring of 2009. All of the games from the Championship will be aired on Viasat’s ‘free-to-air’ and ‘pay’ channels, and will exploit the Viasat DTH satellite platform and channels’ unique penetration in Scandinavia fully. Viasat already held the exclusive rights to the Championship until the end of the 2005 / 2006 season.

Subscribers to the Viasat digital satellite premium pay-TV platform will be able to watch live coverage of all 125 matches each season, and the games will be broadcast on Viasat’s TV3, ZTV, TV3+ and Viasat Sport channels. Viasat’s coverage will also feature player profiles, interviews and a range of interactive features.

Hans-Holger Albrecht, President and CEO of MTG, said that matches from the Championship had been consistent ratings winners across its broadcasting territories. "The expansion of our Viasat Sport branded channel offering to four channels, with the ability of newly launched Viasat Sport 24 to show up to four games simultaneously, enables us to offer comprehensive high quality coverage to Viasat viewers, as well as in depth match analysis and commentary."
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RTV38 makes MHP interactive choice

Italian regional broadcaster RTV38 is to use Icareus iTV Suite for its MHP application development. RTV38 was the first of over six hundred Italian regional broadcasters to deploy interactive DVB-T MHP applications. RTV38 required the iTV Suite to fit into the existing environment and the applications already on air can be migrated into iTV Suite.

Fabrizio Bocci, Chief Technical Officer from RTV38 said the use of the player was also be a strategic choice in bandwidth saving and application interoperability.
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Thursday 5th May 2005

BSkyB heads for 8m
TW: cable leads strong Q1
NDS sales grow 60 per cent
IAC grows on travel
Charter grows subs
London TV joins blinkx line-up
Alcatel launches IPTV solution centre in Shanghai
Optimistic raises additional funds
SBC selects Amdocs for lightspeed
Sky HD goes tapeless with Harris


BSkyB heads for 8m

BSkyB has reported good subscriber growth for Q3 with 95,000 net additions, up on the 66,000 for the quarter in 04, and taking the total to 7.7m. The company reported its other key growth stat, Sky+ homes, was up 128,000 to a total of 770,000, one in ten of all DTH subs. Multi-room households grew 90,000 to 563,000.

For the nine months to 31 March turnover was up 10 per cent like for like to £2.96bn (E4.28bn) with operating profit up 31 per cent at £574m on an increased margin of 19.4 per cent. Net debt was down from £662m to £414m and £291m was paid out in share buy backs.

Commenting on the announcement, James Murdoch, Chief Executive said: "Continued focus on the implementation of our strategy is returning strong subscriber growth, a good mix of customers, growth in Sky+ and multiroom, and substantial profit and cashflow. The whole team at Sky put in a strong performance to deliver these results and we remain focussed and energetic in pursuing our long-term growth plan." The company said it remains on track to achieve its target of eight million DTH subscribers by the end of 2005.

Sky was particularly pleased the number of Sky+ households grew strongly, pointing out that Sky+ attracts consumers who previously had not chosen Sky. One third of new Sky+ households in the quarter were first-time subscribers, higher than the two preceding quarters and significantly higher than the 21 per cent achieved last year. And the growth in Sky+ penetration continues to drive growth in the number of households taking two or more subscriptions, with over 50 per cent of Sky+ subscribers taking two or more subscriptions.

Annualised churn for the nine months to 31 March was 10.2 per cent, an increase of 0.8 per cent percentage points over the same nine months in 2004 and churn for the Q3 was 11.1 per cent as it proved harder to get leavers to re-instate – possibly a sign of the slowing consumer economy and the level of consumer debt. Nevertheless, Sky remain confident churn will stick at around 10 per cent over time.

ARPU in the quarter was £382, static against the three months to 31 March 2004. ARPU for the quarter was £4 lower than the three months to 31 December 2004 (Q2), principally driven by the seasonal movement between subscription tiers following Christmas says Sky. ARPU generated from Sky Active and SkyBet also decreased by £3 on the second quarter. Q3 advertising revenue increased 9 per cent to £242m.

Murdoch said the heavy marketing campaign was paying off in new subscribers and increased customer satisfaction but admitted ratings for some cornerstone shows on Sky One had been disappointing.
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TW: cable leads strong Q1

Time Warner has reported a strong Q1 with sales up 3 per cent over the same period in 2004 to $10.5 billion, led by growth at the Cable, Publishing and Networks divisions. Operating income climbed 10 per cent to $1.8 billion.

Chairman and Chief Executive Dick Parsons said: "Driven by growth across our Cable, AOL and Networks segments, these results give us a great start to meeting our full-year financial objectives. Our pending acquisition of Adelphia's assets gives us a unique opportunity to grow our company in a disciplined way. Time Warner Cable's robust growth this quarter in high-speed data and Digital Phone subscribers, as well as its strong showing in enhanced digital video services, reinforces our confidence in the cable industry's promising future."

It’s not difficult to see why TW is attracted to growing cable operations, they contributed $2.2bn of the sales (21 per cent of total) but $880m of operating profit (49 per cent).

Meanwhile has had to alert 600,000 former and current employees that an outside data storage firm had lost dozens of backup tapes holding their personal information. The group said the tapes did not include information about its own customers and that an ongoing investigation by the US Secret Service had not yet discovered any evidence that the tapes or their contents had been accessed or misused.
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NDS sales grow 60 per cent

For the nine months to March 31 NDS Group grew sales 60 per cent year on year and operating profit 46 per cent.

Dr Abe Peled, President and Chief Executive Officer, said: "The business continues to grow on all fronts. We continue to develop our technology with exciting new security solutions for mobile operators and mobile TV broadcasting."

Along with the results the company announced NDS XTV PVR technology is to be made available to Viasat’s 693,000 digital pay-TV subscribers. Hans-Holger Albrecht, President and Chief Executive Officer of Modern Times Group, commented: "Personal Video Recorders will enable Viasat subscribers to take control of their viewing schedules and watch what they want when they want."
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IAC grows on travel

Barry Diller lead Web conglomerate IAC posted higher Q1 profits as its travel operations grew. The company, which is currently buying search business Ask Jeeves said first-quarter net income rose to $68.9 million ($38.3m) on revenue of $1.63 billion.

IAC said late last year it would spin off Expedia, Hotels.com and other properties in the second quarter, explaining that the company's growth has been hindered by a perception that IAC is solely focused on travel.
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Charter grows subs

US MSO Charter Communications reported strong customer additions and improvement in its financials, despite incurring a net loss of $353 million on first quarter revenues of $1.271 billion, seven percent up year on year.

Charter said it netted 94,000 residential broadband customers and 9,900 telephony customers during the quarter. Charter also gained 19,900 digital video customers, reversing a customer loss it saw in fourth quarter 2004, and took the penetration of digital services to 45 percent.

As of March 31, Charter served 5.984 million analogue video, 2.694 million digital video, 1.978 million residential high-speed Internet and 55,300 telephony customers.
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London TV joins blinkx line-up
From Colin Mann in London

Web search facility blinkx has agreed a content deal with tourist information satellite service London TV. Under the agreement, blinkx.tv will index the entirety of London TV's video content and make it searchable through the blinkx.tv website.

London TV broadcasts 24 hours a day, seven days a week on Sky Digital Channel 244 and broadband ADSL service HomeChoice Channel 732. With blinkx's technology, all of London TV's content will be indexed automatically and phonetically, users will be able to search right down to individual spoken words within the programmes.

"London is one of the most exciting cities in the world. Our programmes are dedicated to informing locals and travellers alike of the diverse cultural wealth that thrives in our great city. Our partnership with blinkx will make finding the best of what London has to offer easy and efficient, leaving users more time to go out and enjoy the city," said Tom Lenham, Director of Programmes, London TV.

"blinkx.tv is proud to have London TV join our increasing line-up of leading content partners. London TV's role in bringing the best of the city to its audience complements blinkx's own position in the video search realm; bringing the best and most relevant information to our users promptly and efficiently," said Federico Grosso, Vice President Business Development, blinkx.
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Alcatel launches IPTV solution centre in Shanghai
From Shveta Malik in New Delhi

Alcatel has opened its IPTV solution centre for the Asia Pacific region in Shanghai, delivering first-hand voice, data and multimedia service bundles to Alcatel’s operator customers. The centre is offering live demonstrations of triple play services, network personal video recorders and videoconferencing for operators to work on business planning and modelling.

The centre, located inside Alcatel Shanghai Bell, will design tailored IPTV solutions for individual operators. The centre will also provide technical support and consultancy services to assist operators in every stage of new service development.

"As Asian users become increasingly sophisticated, triple play is seeing huge growth potential, especially in China," said Michel Rahier, in charge of Alcatel’s fixed communications activities. "To date, Alcatel has helped more than 20 telecom operators deliver IPTV services. Our end-to-end solution, strong integration capability and extensive experience make us an ideal partner in the triple play business."
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Optimistic raises additional funds
From Colin Mann in London

Participation TV specialist Optimistic Entertainment, which owns and operates Sky Digital service Nation217, has raised an additional £560,000 to fund the further development of the international media group.

£255,000 has been raised through a placing of 4,962,406 new ordinary shares, with an additional £558,271 from the issue of a further 18,609,023 new ordinary shares, arising from conversion of a sum drawn down against an existing working capital facility. In aggregate, the new ordinary shares issued represent 4.22 per cent of the enlarged ordinary share capital of the Company, which focuses on the development and exploitation of interactive entertainment on all digital platforms.

Nation217 is an interactive quiz and game-show channel broadcast live on Channel 217 on the Sky digital platform. This participation TV channel is also simulcast at certain hours on Channel 166 on Sky and has been launched on broadband. Optimistic intends to develop and operate additional television and radio channels.

Optimistic has also sold its ‘Flipside TV’ format to major broadcasters in the UK and US and has produced over 6,000 hours of Live TV since its inception and developed mobile and web-based transaction systems.

Its management team includes Jasper Smith, Executive Chairman (former CEO of Static 2358 and co-founder of Fantastic Corporation); David Brook, Chief Executive, (former Channel 4 Director of Strategy & Development and launch Director of Five); and Mark Fone, (formerly CFO of Static 2358)
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SBC selects Amdocs for lightspeed

SBC Communications Inc. announced that it has awarded a multi-million dollar, multi-year contract to Amdocs to support Project Lightspeed, the SBC initiative to expand fibre optics deeper into neighbourhoods to deliver IPTV, voice and broadband services.

Amdocs will provide the SBC companies with a range of services to ensure the best possible customer service, as well as its IP (Internet Protocol) Convergence solution. The Amdocs IP Convergence solution is based on the Amdocs billing, customer relationship management (CRM), ordering and payment mediation products, combined with Amdocs consulting and systems integration services.

"The ability to rapidly launch competitive and innovative services, while delivering a differentiated customer experience, is essential for success in the new IP-based economy," said Lea Ann Champion, SBC senior executive vice president.
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Sky HD goes tapeless with Harris
From Colin Mann in London

Further to BSkyB’s mid-April announcement that it had selected Harris Broadcast Communications as a leading supplier for its forthcoming high-definition service, Harris has confirmed that it will be providing its D-Series Ingest and Play-to-Air Automation System to the satellite broadcaster, as well as full turnkey systems integration for the new playout platform.

As BSkyB moves from tape-based playout to a server-based environment, the D-Series system will provide a scalable content management and delivery foundation for the launch of the channel offering in 2006.

John Phipps, vice president of Harris Automation Sales for Europe, the Middle East, Africa and Asia Pacific, said the system would provide BSkyB with the option to work in any format it chose. "These capabilities are vital for broadcasters who seek to expand their operation to exploit new market area," he added.
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Wednesday 4th May 2005

DirecTV solid Q1
Canal+ and neuf telecom extend ADSL accord
Unified labelling for UK media?
Clear Channel break up
US targets China piracy
Qwest drops MCI bid
Bertelsmann up in Q1
MTV and China Mobile launch music service
India extends uplinking compliance deadline
Telenor wants DTT
$90bn home digital profits in 2010
Verizon Signs Additional Programming for FiOS
David VP at UPC
NDS teletext car service


DirecTV solid Q1

DirecTV had a solid first quarter, says President and CEO Chase Carey. The company added 505,000 net subscribers during the period, taking its customer total to 14.445 million. Carey said the customer additions are "a testament of the basic superiority of DirecTV" to other cable and satellite TV competitors.

In the months to come, DirecTV will launch more next-generation satellites that will join its recently launched Spaceway bird, and the new satellites will support the company's push toward more high-def programming. DirecTV reported subscriber acquisition costs (SAC) moved up slightly, from $644 reported in first quarter 2004 to $656 for first quarter 2005. ARPU (average revenue per subscriber) was up slightly, to $65.78 for the quarter from $63.57 reported for the same period in 2004. DirecTV Group said first quarter revenues were $3.15 billion, an increase of 26 per cent and a smaller operating loss, at $54 million against $96m last time.
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Canal+ and neuf telecom extend ADSL accord
From Colin Mann in London

Some 14 months after announcing their previous tie-up, Groupe Canal+ and telco provider neuf telecom are to extend their partnership by offering television over ADSL services for reception by neufTV decoders from May 23.

The new deal reinforces Canal+’s strategy of being available via all distribution platforms and allowing its services to be widely accessible. Accordingly, the ‘Canal+ Le Bouquet par ADSL’ and ‘CanalSatDSL’ services will be available in towns where the neufTV service is provided – some 150 locations.

With the arrival of Canal+ services on DTT-compatible neufTV decoders, the telco’s customers will have access to a wider range of services, including DTT and ‘Canal+ Le Bouquet par ADSL’ and ‘CanalSatDSL’ packages.
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Unified labelling for UK media?

Ofcom is considering a single labelling system for all media content. The UK would be among the first countries to introduce a uniform classification system if a deal is agreed with leading media companies, Internet service providers and telecoms groups. Such a system might go further than film classifications, by offering what Ofcom calls "clear, accurate and timely advice about the nature of content".

But concerns have also been expressed by Britain's Internet Service Providers' Association and the Mobile Broadband Group, representing online companies and cellular networks including Vodafone and T-Mobile. Thus, the UK telecom and Internet group has told Ofcom that a new system could cause confusion because non-UK material on the Internet would not be subject to any new rules. Ofcom has ordered more investigation into the proposal and set up a working group on labelling of "challenging content".
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Clear Channel break up

Clear Channel, America's largest radio group, said it intends to spin off its entertainment unit, including almost 30 venues in Britain. The group also plans to sell about 10 per cent of its outdoor advertising business in an initial public offering. It is the world's biggest owner of billboards and operates the Adshel and More O'Ferrall brands.

The decision to break up Clear Channel follows the growing trend among the media conglomerates in the US. Viacom last month said it is considering breaking up the faster growing cable business and the slower growth network television and radio divisions. Shares in Clear Channel have fallen by about 26 per cent in the past year as its core radio business, which has 1,200 stations, loses listeners and advertising dollars. The company reported a 59 per cent drop in first-quarter profits to $48m on lower radio ad sales. "We're seeking to unlock the considerable value in our company, and create a strong foundation for future growth, by improving the strategic, operational and financial flexibility in our leading business units," said Mark Mays, chief executive and president.
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US targets China piracy

The US administration has placed China on a "priority watch list" for allegedly not doing enough to protect intellectual property rights. "China must take action to address rampant piracy and counterfeiting, including increasing the number of criminal (infringement) cases and further opening its market to legitimate copyright and other goods," said acting US Trade Representative Peter Allgeier. While elevating China to "priority watch list" is largely symbolic, it does indicate the administration's willingness to pressure the government to crack down on piracy.
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Qwest drops MCI bid

Qwest has pulled out of the bid battle for MCI after its latest offer of $9.75bn was rejected in favour of a revised bid from Verizon Communications worth about $8.45bn. The price Verizon is paying for MCI has risen by 26 per cent from $6.75m when the group tabled its first offer in mid-February.

"We believe that the decision of the MCI board to once again favour Verizon is another example of that board's failure to accept the offer that maximises shareowner value," Qwest said. Verizon secured the MCI board's continued endorsement by raising its latest offer from $23.10 a share to a minimum of $26 a share in cash and paper.
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Bertelsmann up in Q1

Bertelsmann has posted a six per cent increase in first quarter profits to E33m, a figure kept down by the cost of restructuring its record label joint venture, Sony BMG. The group posted a first quarter operating profit of E127m, just 2 per cent more than last year. Sales were almost flat at E3.73bn but Bertelsmann said its first quarter results were positive overall and it expected "an increase in its revenues and results for the full year vis-à-vis fiscal 2004".
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MTV and China Mobile launch music service
From Shveta Malik in New Delhi

Viacom’s MTV Networks has formed an alliance with China Mobile offering ringtones, song charts and entertainment news on cell phones. MTV and China Mobile launched MTV Zone on the network of the top telecoms operator, which has more than 220 million subscribers and acquires 3 million new users every month. MTV didn’t disclose financial terms for the China Mobile deal, but said Viacom would get a slice of subscription revenues, as well as charge fees for downloading ringtones and other content. Ch

ina Mobile was also buying advertising on the MTV cable channel Ye Bing, general manager of the data service department of China Mobile, told media that the mobile music service will follow the same revenue sharing model, in which service providers get 85 per cent of the downloading fees and China Mobile gets the rest. Subscribers usually pay between 12 to 36 US cents to download a song.
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India extends uplinking compliance deadline

From Shveta Malik in New Delhi The Indian government has extended the deadline for existing news and current affairs TV channels to ensure compliance of the eligibility criteria for uplinking from India up to September 30, 2005. Information and Broadcasting Minister Jaipal Reddy said that the extension has been given to examine certain problems and legal issues concerning the foreign investment regime and majority Indian shareholding in respect of existing channels.

According to the Ministry, seven companies -- Jeevan Telecasting Corporation Ltd, Jain Studios Ltd, Zee Telefilms Ltd, Sri Adhikari Brothers Television Network Ltd, Broadcast Worldwide Ltd, Sky (B) Bangla Pvt Ltd and Television Eighteen India Ltd -- are required to comply with the provisions of the guidelines. Reddy said that four extensions have been granted so far. Five applications for operation of DTH broadcasting services have been received so far of which ASC Enterprises have been granted a licence, said the minister.

The other four players whose applications are under consideration are: Essel, Shyam Communications Ltd, Space TV Pvt Ltd (a joint venture of Tata Sons and Network Digital Distribution Services (NDDS) Sun TV Pvt Ltd, and Noda Software Technology Part Ltd.
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Telenor wants DTT

Telenor Broadcast has reported an interest to the Ministry of Transport and Communications in building and operating a digital terrestrial TV network in Norway. The Telenor subsidiary Norkring currently owns and operates the national analogue terrestrial TV and radio network and wants to deliver the same services digitally. Canal Digital, also owned by Telenor, delivers TV services to close to 2..9 million households in the Nordic region via satellite, cable, and broadband as well as a digital terrestrial network in Finland. Canal Digital has experience from the introduction of digital TV in the entire Nordic region.


"All households currently receiving analogue TV signals must be ensured simple and safe transition to digital TV with more TV channels and new TV services. We are familiar with the requirements put forward to contractors in the previous call and parliamentary reading. The building of broadcast networks and distribution of TV signals is our core business. We have the knowledge and experience to fulfil all requirements put forward to license applicants for digital terrestrial networks. We intend to use open standards, which will promote competition in the terrestrial network, and ensure freedom of choice and variety to the viewers. At the same time we can offer the TV channels digital distribution on equal terms and without ownership risks. This is why we have stated our interest in applying for a licence for digital terrestrial TV network," said Executive Vice President and head of Telenor Broadcast, Stig Eide Sivertsen.

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$90bn home digital profits in 2010

The digital home revenue and profit landscape will be determined in large part by which players dominate key "control points" in the digital home, according to the latest report from The Diffusion Group. "Most of the profits generated in this new market will be driven by services and applications, not by innovations in enabling devices," said Predrag Filipovic, consulting analyst with TDG. "Redistribution of revenue is inevitable and will be determined in large part by which service segments can gain and maintain ownership of the various control points."

As convergence technologies work their way deeper into the broadband homes, competing players will have the chance to solidify market position and extract higher profits from the total pool - a pool that is expected to grow from $50 billion in 2005 to almost $90 billion by 2010.
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Verizon Signs Additional Programming for FiOS

Verizon will carry five new channels on Verizon FiOS TV when it launches later this year. They are: Varsity TV, Gospel Music Channel, Soundtrack Channel, MavTV and GolTV.

"We are pleased to add these networks to our growing line-up of quality programming," said Terry Denson, vice president of programming and marketing for FiOS TV. "FiOS TV will connect our future customers to popular channels plus many newer networks that speak to their specific entertainment interests." Verizon previously announced agreements with NBC Universal Cable, Starz Entertainment Group, Showtime Networks, A&E Television Networks and Discovery Networks, and is close to finalising agreements with several other major content-partners.

Verizon FiOS TV is intended to offer customers a competitive alternative to cable or satellite. Verizon is already constructing FTTP networks in half the states where it offers landline communications service
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David VP at UPC

Stéphane David has been appointed as Vice-President Programming UPC Broadband. He will be leading the programming team that is responsible for implementing the programming strategy in all of UPC Broadband's 13 country affiliate operations. He has previously held several positions with the Canal+ Group.
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NDS teletext car service

NDS announced the launch of a new service; Teletext Cars on the Sky digital platform. Teletext have expanded their portfolio by introducing an interactive automotive guide for consumers on the search for a new car. For the initial roll-out, NDS's Value@TV interactive TV technology will update a database of both new and used cars on a daily basis, giving customers access to the very latest offers. Viewers will access the car marketplace via Teletext on 4 where they can choose from a menu of new and used cars from their chosen region within the UK.
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Monday 2nd May 2005

Microsoft doubles profit
Spain: Green light to DTT law
US targets pirates
IPTV subs revenue $7.2 Billion in 2008
FT revenues up
SMG IPTV licence in China
Fourtou steps down as Vivendi CEO
C More first Nordic HD channel
Sirius Retail Boost Q1
DISH adds VOOM
Hitachi on up, Toshiba slows


Microsoft doubles profit

Microsoft has seen its quarterly profits double, boosted by strong demand for server software and the Xbox games console. The company reported third-quarter net profits of $2.56b up from $1.32bn at the same time last year. However, sales during the three months to March did not fully match market expectations up to $9.6bn - below forecasts for $9.8bn.

"Given our optimism about the future with our strong product pipeline and the growth opportunities from our investments in innovative products and services, we expect increased revenue growth in fiscal 2006," said Scott Di Valerio, Microsoft's corporate vice-president and controller. Microsoft forecast fourth-quarter revenue of between $10.1bn and $10.2bn, against Wall Street's target of $10.1bn.
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Spain: Green light to DTT law
From David Del Valle in Madrid

The Spanish Parliament has green-lighted the controversial Government DTT law that will now be approved before Summer. This new legislation brings forward to 2010 the analogue switch-off, two years earlier than initially expected, and does the groundwork for a re-launch of the DTT market.

A technical DTT plan is now expected to be approved over the next months to pave the way for the re-allocation of Quiero's three and a half multiplexes that will precede the launch in Autumn of a free-to-air DTT platform with 22 channels. The legislation eliminates the limit on the number of national TV channels, allowing the existence of more than three TV networks. The Government is likely to grant two new analogue TV channels and allow Canal Plus to turn into an FTA commercial network.
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US targets pirates

President Bush has signed a law that could see people who pirate music and movies on the Internet in the US face up to three years in jail. The law targets file-sharers who put copies of new songs and films online before their commercial release. It also introduces tough new penalties for anyone caught in a cinema filming a movie with a video camera.

The Family Entertainment and Copyright Act also makes it easier for parents to prevent children seeing and hearing sex, violence and bad language on DVDs. It protects companies such as ClearPlay, who provide ‘filters' to mute or skip offensive parts of films. Film-makers had complained that such alterations violated their copyright - but the bill has made the companies exempt from copyright law.
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IPTV subs revenue $7.2 Billion in 2008

A forecast from Research and Markets gives a growth projection from 1.9 million subscribers in 2004 to 25.3 million in 2008 and predicts IPTV subscriber revenue growth from $635 million in 2004 to $7.2 billion in 2008.
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FT revenues up

Revenues at France Telecom are up 3.5 per cent in Q1 2005 at E11.62 billion. Its broadband customer base is up 91 per cent in Europe, and has a 49 per cent market share in France of new ADSL customers. FT also reported the continued deployment of MaLigne tv and videophony, and the launch of ADSL 2+ in France and VoIP in other territories.
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SMG IPTV licence in China
From Shveta Malik in New Delhi

Shanghai Media Group (SMG) has become China's first licensed IPTV provider after receiving a business license from the State Administration of Radio, Film and Television (SARFT).

The development is being considered as a start to the co-operation between China's TV and telecom sectors. By 2008, China's IPTV market is expected to jump to US$12.1 billion, while the number of broadband users will expand to 100 million. Last year, there were 26.3 million broadband users.
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Fourtou steps down as Vivendi CEO

Jean-René Fourtou, chairman and chief executive of Vivendi Universal, has stepped down from the day-to-day leadership of the group, saying he had completed the task of stabilising the business that was entrusted to him in the summer of 2002. The annual meeting voted in favour of the creation of a supervisory board chaired by Fourtou and a management board led by Jean-Bernard Lévy, previously chief operating officer, now chief executive.

Fourtou side-stepped potential controversy over executive pay. While being grilled on the E3.45m he received in 2004, he disclosed, to applause, that he had turned down a Vivendi pension. Showing shareholders a chart showing how complicated and sprawling Vivendi was in July 2002, he argued that the subsequent sale of E22bn of assets in almost 90 disposals had created a business that was now growing in all its divisions. After three years of losses totalling E38bn, Vivendi returned to profit in 2004.
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C More first Nordic HD channel

C More Entertainment, operator of the brand CANAL+ brand in the Nordic region, has confirmed its HDTV channel launch. The channel will be launched in all Nordic countries and it will initially offer an exclusive selection of quality films and as soon as available live sports broadcasts as well as concerts. The channel will be offered via distributors across the region.

Commenting on the announcement, Marc Antoine d'Halluin, Chief Executive Officer of C More Entertainment AB, said "As the market leader on the Nordic premium pay-TV market, we are committed to delivering the best TV experience to our subscribers. This includes handpicking the best content, and delivering the best technical quality currently available. CANAL+ new HDTV channel will be a technical revolution, changing the way our subscribers consume TV in the future".
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Sirius Retail Boost Q1

A day after XM's results, Sirius, the No. 2 satellite radio player, said retail remains critical to the sale of its service, with a majority of its 305,437 subscribers signed up during the first quarter coming from the sales floor.

Sirius CEO Mel Karmazin said 175,000 customers who enrolled with the company during the three-month period came from retail, while 130,000 customers came from vehicle manufacturing partners and special markets.

Karmazin said Sirius expects continued strong subscriber growth for the rest of 2005, thanks to the introduction of new products and the eventual addition of shock jock Howard Stern, which the CEO emphasized will occur no later than January. He also said the company would reach parity with its chief competitor, XM Satellite Radio, in terms of market share.

Sirius raised its 2005 subscriber estimate, saying it will have more than 2.7 million subscribers at the end of the year. That's up from previous guidance of more than 2.5 million. Karmazin said churn for the service on a monthly basis was at 1.3 percent during the first quarter. He also said the company is addressing how to lower subscriber acquisition costs at $190 per subscriber for the quarter. Karmazin said Sirius will lower that figure to $145 this year.

Sirius reported first quarter revenue of $43.2 million compared to the $9.3 million generated during the same three-month period in 2004. The company said its adjusted loss from operations increased by $49.1 million, to $127.1 million.

Sirius announced a third generation chip set has been design validated and will help Sirius lower production costs and support new advanced products that will ship later in the year.
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DISH adds VOOM

EchoStar Communications announced its DISH service will expand its high-definition television package by adding 10 original VOOM HD networks.

The 10 VOOM HD networks will include RUSH HD, Gallery HD, Rave HD, Ultra HD, Equator HD, Monsters HD, Animania HD, Majestic HD, HD News and Guy TV HD. These networks will give viewers a high-def experience in such entertainment categories as science fiction, fashion, travel, music concerts and more.
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Hitachi on up, Toshiba slows

Hitachi has posted a surge in annual profit and beat market expectations with its earnings outlook, while Toshiba Corp. forecast weaker-than-expected growth for this year.

The largest electronics conglomerate in Japan expects its operating profit to total 300 billion yen ($2.83 billion) in the year started in April, exceeding market expectations. Second-ranked Toshiba expects operating profit to rise 9.8 per cent to 170 billion yen for the year to next March, falling short of market expectations of 177.7 billion yen.
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