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Scroll down page or click below for news - latest first
Tuesday
Friday 19th January
BBC licence fee set
UTA Internet video for new talent
FCC says no sat radio merger
Star DTO site for India
Brightcove bags $59.5m
IMG buys sports rights firm
Record profits for Apple
Local TV debuts on SKY
Irdeto for Home2US
BBC licence fee setUK Culture secretary Tessa Jowell cofirmed the BBC's licence fee will rise to £151.50 (E219) by the year 2012. The fee will rise by three per cent for two years, then by two per cent over the following three years, followed by an increase of up to two per cent in 2012-13. She also announced the BBC Trust will receive £600 million to help the elderly and vulnerable switch to digital television.
Mark Thompson, director-general of BBC, said the settlement left a "gap of around £2bn over the six years" between what it believed it needed and would get. As a result, he said, the broadcaster faced "daunting investment challenges" that risked diverting money away from content creation.
The long-awaited settlement breaks the link between the licence fee and the retail price index. The deal is less than the projected rate of RPI over the six years. The BBC initially bid for annual increases of RPI plus 2.3 per cent. The price of a TV licence rises from £131.50 now to £135.50 on April 1, gradually reaching £151.50 in 2012
Edward Leigh, the Conservative chairman of the Commons public accounts committee, said the report "just goes to prove that the BBC could be more efficient ...it's indefensible that the BBC continues to escape proper parliamentary scrutiny of how it spends £3bn of taxpayers' money each year."
The government also raised the BBC’s borrowing limit to £230m – again short of the £400m the Corporation had requested.
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UTA Internet video for new talent
Hollywood talent representative United Talent Agency (UTA) plans to create a channel on Internet video service Veoh Networks to seek new artists and spotlight its own clients.Veoh, backed in part by former Walt Disney chief Michael Eisner and Time Warner will host a channel that lets users submit unsolicited material to vie for a shot at being represented by the agency.
UTA, whose rosta includes actor Harrison Ford and comedian Ben Stiller, formed an online unit to scout for new talent among the hundreds of thousands of amateur filmmakers armed with low-cost video cameras. Hollywood's interest in new online video services has risen recently with Creative Artists Agency (CAA) forged a deal with online video service Revver last year.
Veoh uses p2p to broadcast feature-length movies over the Internet.
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The chairman of the Federal Communications Commission, Kevin Martin, said the two satellite radio companies, Sirius Satellite Radio and XM Satellite Radio Holdings, would not win approval of a merger under current regulatory rules. A ban on a single owner for both satellite services was written into the regulations that authorized the two nationwide licenses, Martin said after an F.C.C. meeting.
XM, the larger of the two, and Sirius, have lost billions of dollars competing with each other and subscriber growth slowed last year. The chief executive of Sirius, Mel Karmazin, and the chairman of XM, Gary Parsons, have fueled speculation about a possible combination.
A merger would require approvals from antitrust regulators as well as the F.C.C. Analysts disagree on how big an obstacle the regulatory framework presents.
AEPOC Symposium and 10 year celebration
AEPOC, the international industry body which fights against digital media piracy, is celebrating its tenth anniversary this year alongside its annual Symposium. The event will take place in Geneva on January 29th and is free to attend for representatives of broadcasters, technology providers, advisors, regulators and other interested parties. For more details visit www.aepoc.org
indya.com, the internet portal owned by STAR has launche its digital entertainment store, which makes available for download some of India’s most popular entertainment content. At launch, content from across the STAR network will be made available for download. indya.com is also working with other content providers to bring the best of Indian documentaries, films and music online.
The service is available worldwide and is targeted at broadband-enabled South Asian audiences in the U.S., U.K., Canada and South East Asia.
The new service is offered via a "download-to-own" model. Purchased content is then playable on up to two Windows Media compatible devices, including portable players.
Single episodes are now available for free on a trial basis in order to allow users to sample the quality of the content and service. Additional episodes are priced starting from US$0.99 though special discounts are available for bundle purchases.
Brightcove Inc. closed a $59.5 million round of funding, its largest to date, with existing investors, which include AOL and IAC/InteractiveCorp, joined by five new investors in the start-up's third round of funding. The new investors include the New York Times.
Brightcove is focused on forming partnerships with media companies and others with video content to distribute it on the Web. The company, which launched an online-video marketplace in October, makes money by inserting advertising in the videos and selling the videos themselves.
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IMG buys sports rights firmIMG has acquired CSI Sports - the company that manages the TV rights for clients including the Football Association and the England and Wales Cricket Board. IMG already handles the TV rights to events such as Wimbledon and the Rugby World Cup.
Apple have posted record quarterly profits, up 78 per cent on the same period a year ago. During the final three months of 2006, Apple said it earned $1bn compared with $565m in the same period in 2005. Apple shipped 1.6m computers and more than 21m iPods during the quarter, representing a growth of 28 per cent and 50 per cent respectively from Christmas 2005.
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Local TV debuts on SKYSolent TV, the UK’s first not-for-profit commercial local television station, has launched on the SKY platform. The station it the first community station to access the distribution potential of Digital Satellite Broadcasting.
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Irdeto for Home2USIrdeto, announced that Home2US Communications operator of a premier open pay-TV platform and Payner Co. Ltd, the parent company of Planeta TV, has selected Irdeto to secure programming provided in the U.S. by Planeta TV, the largest Bulgarian all-digital 24-hour music and entertainment television channel.
"As Home2US continues to reach millions of viewers by expanding international programming options to ethnic audiences across America, it is critical that we have a content security partner that we can rely on,_"said Emrah Ozkan, president and CEO for Home2US.
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Thursday 18th January
EMI to cooperate with Baidu
Music downloads double
Sky, NTL weigh pain and gain
HD DVD DRM compromised
UK Mobile TV sales flat
Cablevision rejects Dolan bid
10m+ Chinese digital TV subscribers
Xbox movie sales forecast $92m
EMI to cooperate with Baidu
EMI has pulled out of the recording industry’s anti-piracy lawsuit against Chinese search engine Baidu.com, with the two companies agreeing instead to co-operate on an advertising-supported online music service. The decision could complicate the International Federation of the Phonographic Industry’s legal action against Baidu over its online music search service.The suit, still backed by Sony BMG, Warner Music and Universal Music, accused Baidu of supporting piracy by making it easy for fans to find and download unlicensed tracks. A Beijing court ruled in Baidu’s favour in November but the IFPI is to appeal.
But now, EMI and Baidu will share revenues from an advertising-supported free online music streaming service in China. EMI said the agreement would give Chinese fans legal access to EMI’s Chinese catalogue but would not stop Baidu’s search service from helping users to find and download pirated EMI tracks. "We still don’t accept that the practice of [such] deep linking is legal in China or anywhere else for that matter," said EMI. "But it is crucial that we work to develop the legal music market."
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Music downloads double
Global digital music sales almost doubled in 2006 to around $2 billion or 10 percent of all sales, but have not offset the fall in CD sales. The IFPI says it expects digital sales to account for a quarter of all sales worldwide by 2010.IFPI Chairman and Chief Executive John Kennedy said "I would like to be announcing that a fall in CD sales is being compensated for by an equal or greater increase in online and mobile revenues. But that is not yet happening on a global basis." Overall music sales were down 4 percent in the first half of 2006 due to piracy and competition for consumer spending.
Sky and NTL Telewest are facing off in the market place, warring via the regulators on ownership and conducting negotiations on carriage. Sky is now said to be seriously weighing the possibility of withdrawing Sky One and other channels from cable networks if it doesn’t get better terms from the cableco as it demands higher fees from the flextech channels (owned by NTL) for inclusion in the Sky’s DTH package.
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According to US press a loose-knit coalition of hackers has cracked the anti-piracy software protecting movies in the HD DVD format. They then began distributing copies of films on BitTorrent.
It’s possible this could prompt Hollywood studios to rethink their alliances in the war between the HD DVD and Blu-ray formats. The HD DVD standard is backed by Toshiba, Microsoft and Intel and uses copy protection technology known as the Advanced Access Content System. The rival Blu-ray format, supported by Sony, Hewlett-Packard and Dell, uses the same system but adds a level of software that acts as a backup when the first level is compromised, so it is considered to be slightly more secure.
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Reportedly Virgin Mobile has sold fewer than 10,000 handsets for its mobile TV service. Virgin Mobile, now part of the cable group NTL, launched the UK's first broadcast TV service for mobile phones in October 2006.
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Cablevision rejects Dolan bid
Cablevision Systems rejected the Dolan family’s second attempt to buy the company. Directors turned down the $30-a-share offer, worth $8.9 billion. The Dolans said it was the ``best and final offer''.
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10m+ Chinese digital TV subscribers
The number of digital TV users in China exceeded 10 million at the end of 2006, double the number in 2005. " The number is expected to reach 20 million by the end of 2007," said Wang Yan, general manager of China DTV Media. China now has 92 digital pay channels, said Wang.
Xbox movie sales forecast $92m
Research and Markets says Microsoft sales of both TV shows and movies sold via Xbox Live "could reach $92.25 million in 2007, growing each year through 2011, when the aggregate revenue from the sale of both types of content could top $726 million."
Wednesday 17th January
Friis and Zennstrom unveil Joost
UGC won’t attract ads
Social networking fees predicted
Scaglia sell Fastweb stock for Babelgum
Spain gets tougher on DTT licences
Netflix Streaming Service
Americans not watching mobiles
Young TV viewers watch more ads
Pemsel ITV marketing director
Friis and Zennstrom unveil Joost
Janus Friis and Niklas Zennstrom the Scandinavian entrepreneurs behind Kazaa and Skype are backing online video start-up Joost. The venture, which has gone by the code name "The Venice Project," promises to let users watch TV shows and movies whenever they want on their PCs with better image quality than other video sites.
The free package will combine elements of traditional TV, such as linear channels that users switch between, with Web functions such as chatting and keyword search. "We want to merge the best of TV with the best of the Internet," says Friis. Joost's chief executive, Fredrik de Wahl, says its aspirations are grand: "We're going after TV-like audiences on the Web."
The service will be financed by advertising revenue that will be shared with the video-content owners. A small number of users have been testing the service since last month, with a public release planned for the first half of this year.
Friis says Joost isn't late into the market as it goes further in combining aspects of the Web and TV than any existing offering. Whereas YouTube and other popular sites offer short, low-video-quality clips, Joost plans to offer full TV shows and movies from commercial content owners. de Wahl says it won't let consumers submit clips until quality and copyright issues are resolved.
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User-generated content sites like YouTube and MySpace will not attract much of client’s online budgets according to Screen Digest. Such sites’ advertising revenues stand to grow from $200m last year to $875m by 2010, but this will account for just 15 per cent of the total online video advertising budget.
"No single user-generated site has really instilled a business model yet," said Arash Amel senior analyst. "The business model for user-generated sites has been ‘build it and sell it and let someone else worry about the business model’."
The report echoes News Corp’s assertion that its studio and television content will be more important for capturing online video advertising. Peter Chernin, News Corp president said at a recent conference: "We do not see big advertisers advertising with YouTube or MySpace. They have concerns about the content ... and there is no scarcity value for the content ... so there is very little ability to monetise video advertising on user-generated video."
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Social networking fees predictedMedia trends in 2007 could include social networking websites such as MySpace charging users, according to a new report. The survey, by Deloitte Touche Tomatsu's, suggests that while older users may want to join the social networking websites, they may also be willing to pay for privacy to ensure that some content, such as personal videos and photographs, is only seen by a select group. These premium subscriptions could also offer a range of value-added services such as voice messaging, online storage and webpage design.
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Scaglia sell Fastweb stock for BabelgumSilvio Scaglia, the Italian telecoms entreprenuer and founder of Fastweb, has sold 5m shares (E220m) reducing his stake to raise funds for a new online television service. This cuts his stake to 18.5 per cent. Scaglia has decided to cut his stake to finance the development of Babelgum, a new venture in the online video business. A test version will be launched early in March.
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Spain gets tougher on DTT licences
From David Del Valle in MadridThe Spanish Administration is considering tightening up conditions to receive a DTT licence in an attempt to force broadcasters to invest in original and quality DTT content.
The Government has accused TV networks of offering poor content thus hindering the development of the market. In the Government’s opinion, broadcasters are not complying with one of the current legal conditions: broadcasting "an innovative and different programming from that on analogue television". In addition, broadcasters are not meeting the obligation of offering interactive content either.
The Spanish Authorities are planning to adopt tougher legal measures to improve the quality of programmes and foster the growth of the DTT market with a view to the analogue switch-off in April 2010. Currently, only three per cent of Spanish TV viewers watch DTT. According to the Ministry of Industry, more than two million set-top-boxes have already been sold.
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Netflix Streaming ServiceNetflix is to roll out a new service offering instant film and TV downloads on the Internet. Subscribers to the ‘Watch Now’ service will access films straight from the web rather than downloading them onto their computer to cut the risk of piracy.
The group will roll out the service to an initial 250,000 customers, and add a similar amount to Watch Now each week until June. It has put $40m aside to buy the rights to 1,000 films to distribute online, as well as improve and expand its technology centres. Netflix's instant viewing aspect will only be available on computers using the Windows XP and Vista operating systems. Subscribers to the service will be able to view films online as dictated by their rental plans.
Americans not watching mobiles
One-third of all Americans will soon have video-capable mobiles according to CBS research chief David Poltrack, but less than 10 per cent of people with those phones now actually use it to watch video. He says the major hurdle to increasing usage is the price to consumers. Poltrack also said that "local and immediacy" are the two factors that will drive growth of video in the mobile market.
Young TV viewers watch more adsThe number of UK television commercials seen by 16- to 24-year-old viewers rose last year by 3.8 per cent in 2006 in spite of increased Internet usage among younger consumers. The rise in part reflects the fact that 16- to 24-year-olds watch more commercial television than other demographics, and commercial channels are benefiting from take-up of digital, multi-channel broadcasting.
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ITV has promoted David Pemsel to take the role of group marketing director following the departure of Clare Salmon at the end of last year. He has earmarked the creation of a more "consistent" advertising strategy around the flagship channel, ITV1, and the launch of ITV.com's media player as key marketing challenges for this year.
Tuesday 16th January
Arris buys Tandberg
See, speak, surf from Sky
Duffy quits NTL
Guthrie out at Star
Google’s Shields to Bebo
Spain: Pay-TV and mobile TV betting service
ITU: No new master for web
World broadcast market growing fast
Silvio Scaglia IPTV service
Fox and ODG movies on Kabel Deutschland
Arris buys Tandberg
Arris of the US is to purchase Nasdaq-listed Tandberg of Norway to create a new dominant player in broadband networks. The offer, which is about 85 per cent in cash, values Tandberg at $1.214bn. The deal, which has the backing of the Tandberg board, is expected to be approved by shareholders and complete in Q2.
"The on-going industry consolidation amongst our key customer base creates a demand for companies that can offer an increasing scale and scope of supply on a global basis. The combination of Arris and Tandberg Television clearly creates that market leading supplier of voice, video and data solutions. Further, the offer price represents a substantial premium of 47 per cent to Tandberg Television’s 90 trading day average share price," says Jan Christian Opsahl, Chairman of Tandberg Television.
The companies say they have have a strong shared philosophy of innovation and track-records of profitable growth. The new company will have over 1600 employees and 2000+ customers in more than 100 countries. Arris’ strong North American cable business and strategic customers in key international markets will be significantly expanded through Tandberg Television’s international market leadership position in IPTV, HDTV and on-demand television.
"The combination of Arris and Tandberg Television is positive for the digital media industry and a truly exceptional opportunity for both companies. By bringing together these two market leaders we are able to expand on our vision to be the global leader in the provision of digital IP infrastructure and to enable voice, video and data to be delivered over integrated broadband networks from the content provider to the head-end to the home," says Bob Stanzione, Chairman & CEO of Arris. "With this merger we are creating a new force, with best in class technologies and an outstanding team of people with a unique understanding of all service provider networks, the technologies that enable them and the content that travels through them."
"Our customers are increasingly relying on next generation technologies to help them create and distribute converged and differentiated voice, data and video services. There is a clear benefit in being able to source these solutions from one trusted partner. The combined Arris and Tandberg Television is ideally placed to provide the technologies, the knowledge and the systems delivery and integration expertise that our customers around the world can rely on to build profitable digital businesses," said Eric Cooney, CEO of Tandberg Television.
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See, speak, surf from Sky
BSkyB is taking on the relaunch of NTL as Virgin Media with its first major marketing push for triple play. Although all three elements are already available from the satellite broadcaster, the launch of "See, Speak and Surf" will be Sky's first campaign based around providing the three services in one bundle.
Sky is launching the new combined service of a basic package of pay-TV channels plus broadband access at up to 8MB and free UK landline calls at evenings and weekends for £26 (E37.7) a month. Customers will still have to pay £11 a month line rental to BT and a £20 connection fee. The package will be available to 70 per cent of UK households and is designed to compete with NTL's "three for £30" offering of TV, 2MB broadband and free weekend landline calls.
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Duffy quits NTL
As expected Simon Duffy has quit as Executive Vice Chairman of NTL Telewest as it nears its makeover as Virgin Media following the takeover of Virgin Mobile.
Jim Mooney, Chairman of ntl, said, "On behalf of NTL, I want to thank Simon for his service and dedication to our company. Since joining NTL in 2003 Simon has made an enormous contribution as our CEO and board member. He saw NTL through our successful refinancing, our subsequent merger with Telewest and was instrumental in driving the acquisition of Virgin Mobile."
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Guthrie out at Star
The head of Rupert Murdoch’s Asian television division has resigned. Michelle Guthrie, Star chief executive, will step down in March. She will be succeeded by Paul Aiello, Star’s president. No reason was given for the surprise departure of Guthrie.
Guthrie’s resignation is the latest in a series of high-level personnel reshuffles at Star over the past year. In March the company’s India chief executive, Peter Mukerjea, handed over his operational responsibilities to Sameer Nair. Star also appointed a new chief executive for China, Jack Gao, in October.
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Google’s Shields to Bebo
Bebo has hired one of Google’s top dealmakers. Joanna Shields, who was head of Google’s European strategic partnerships team and was behind its alliance with British Sky Broadcasting is to head a new international division at Bebo.
The move comes on the heals of News Corp’s MySpace launch of its first European foreign-language website, in France. Shields said Bebo would look for opportunities to increase its presence across Europe but leveraging services such as access via mobile phone will take priority, along with partnerships with music and entertainment companies.
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Spain: Pay-TV and mobile TV betting service
From David Del Valle in Madrid
Pay-TV operators, Sogecable and ONO, and mobile phone companies are in talks with the Spanish Football Professional League (which represents all teams) to set up a TV betting service through the Internet, digital TV and mobile TV.
The gaming platform would allow clients to place their bets on the pools every week with a pre-paid card. The service, the first of its kind in Spain, is subject to Government approval. The technology company Indra has developed the technical application to make the service possible. Indra and LPF already signed an agreement with Group Panini (of football card fame) in 2005 to market the platform in other countries.
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ITU: No new master for web
The Internet should continue to be overseen by major agencies including ICANN and the ITU, rather than any new "superstructure", says the new head of the International Telecommunications Union.
Hamadoun Toure said the ITU would focus on tackling cyber-security and in narrowing the "digital divide" between rich and poor countries. "We all must work together, each agency has its role to play. We must avoid setting up a superstructure which would be very controversial and very difficult to put into effect".
The Internet Corporation for Assigned Names and Numbers (ICANN), a California-based non-profit company, manages the Internet's domain-name addressing system. It reports to the U.S. Commerce Department, which last September said it would retain oversight for three more years. Some critics say the U.S. government has too much control over ICANN. Some countries have argued that the Internet should be managed by the United Nations or another global body.
In addition to overseeing electronic numbering, ITU will back the Internet's growth through broadband standardisation, e-commerce security, and video-recording systems that will enable 3G to be accessible to the Internet, according to Toure.
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World broadcast market growing fast
In an industry first, the global broadcast and media technology industry has been sized, valued and analysed. The results of the 10 month study commissioned by the IABM (International Association of Broadcast Manufacturers) and conducted by Screen Digest reveal a global media and broadcast technology supply industry valued at $11.6billion and predicted to grow 11.4 per cent year on year.
The study identified that there were only 100 companies with revenues of over $10 million a year and some 200 with revenues of $1 million a year or more, demonstrating that there are still a very large number of small, specialist niche suppliers. Nonetheless, the top eight manufacturers account for 45 per cent of total revenues.
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Silvio Scaglia IPTV service
Silvio Scaglia, the Italian telecoms entrepreneur behind Fastweb and Omnitel, is reportedly two months away from launching Babelgum, a global Internet television service. Babelgum intends to offer ‘the lean-back experience of traditional TV with ‘he interactive and social power of the Internet’.
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Fox and ODG movies on Kabel Deutschland
Twentieth Century Fox and On Demand Group have concluded a multi-year pay-per-view licensing agreement to provide movies to German cable operator, Kabel Deutschland. This agreement will bring a range of current and upcoming movies to Kabel Deutschland subscribers across Germany via its digital cable service Select Kino.
Tony Kelly, CEO, On Demand Group added: "Working in partnership with Twentieth Century Fox and KDG has allowed us to develop and quickly bring to market the CineExpress service. This deal is a close fit with our strategic direction as we look to expand our business into new global markets."
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Monday 15th January
OFT Sky probe underway
Pay TV operators could lose in switchover
Wolf out at MTV
Dolans up bid for Cablevision
AOL tests TV Guide
Cellcast Launches Sumo.TV in India
OFT Sky probe underwayUK Office of Fair Trading (OFT) has confirmed that it has started a formal investigation into BSkyB's £940m (E1.36bn) purchase of a 17.9 per cent stake in ITV. The purpose is to establish if the deal had resulted "in a substantial lessening of competition in the TV sector."
BSkyB said it noted the OFT's comments and would respond "in due course". The OFT said it remained to be seen whether its investigation would result in it making any recommendations to the Competition Commission for action.
Some, including NTL, have claimed the stake acquisition was done in order to effectively block NTL’s bid for ITV, thereby stifling competition. Current UK media competition ownership rules mean BSkyB is only prevented from controlling more than 20 per cent in ITV.
The OFT has now invited interested third parties to submit their views.
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Pay TV operators could lose in switchover
European pay TV operators are in danger of failing to capitalise on the switchover from analogue to digital television, a new report has claimed.
Digital terrestrial television (DTT) providers are expected to be the biggest winners when European governments enforce the switch-off of analogue TV over the next five years. DTT providers are predicted to add 39 million European households over this time, according to analyst firm Jupiter Research.The switchover, it claims, will give pay TV operators a once-in-a-lifetime opportunity to acquire new customers as 45 million European households upgrade from analogue to digital. However, Jupiter forecasts that the vast majority of this opportunity will evade cable, satellite and IPTV operators as consumers flock instead to free-to-air DTT services such as Freeview in the UK and TNT in France.
Across Europe, 27 million households already use DTT services, a number that will more than double by 2011.
Michael Wolf, president and chief operating officer, is leaving Viacom’s MTV Networks a a year after he joined from McKinsey to help the media group’s transition to the digital age.
Earlier in the week wolf had said there was a "gap in perception" in the market about Viacom’s internet activities. "We’ve been able to accomplish a huge amount in the 15 months I’ve been here." During his tenure, Viacom acquired a slew of internet gaming and film startups, including Xfire and Atom Entertainment.
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Charles and James Dolan have boosted their bid for Cablevision Systems to $8.9 billion in what they called their "best and final offer" to take the cable giant private. The new $30 a share offer is 11 per cent higher than the bid tabled in October and implies an enterprise value of $20.1 billion. However, it's only a 1.4 per cent premium to last week’s close of $29.60.
AOL UK is testing a new TV guide that will include a search engine enabling users to locate video on the Internet and programme their personal video recorders. Visitors to the site will be able to start using the TV Guide, which is currently in its beta testing phase, and there will be a further roll-out on the AOL portal early this year.
The technology for the service is provided by TV Genius, a search engine for television and Internet video. It will allow users to look at conventional listings, personalise them according to favourite channels, order reminders by email, SMS or AOL Instant Messenger and find related video available to watch on the Internet.
Cellcast Launches Sumo.TV in India
Cellcast Interactive India, providers of interactive television content, has confirmed the launch of Sumo.TV, a product offering India’s first end-to-end user-generated content (UGC) solution for broadcasters. "Sumo.TV invites individuals to share their personal or creative videos that could be featured on prime time television", said Mahesh Ramachandra, Vice President of Cellcast.
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