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Scroll down page or click below for news - latest first
Tuesday Friday 1st September
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TiVo down on legal costs
Foxtel for Telstra IPTV
US cable: $120bn by 2015
China goes it alone on DTT standard
Cellcast suffers
Virgin: first mobile TV
HD titles from Warner
Icareus on 3KTV
TiVo down on legal costs
TiVo reported a quarterly loss seven times the size of its loss a year ago, largely because of legal costs associated with intellectual property patent disputes. In the three months to the end of April, the company lost $6.45 million, compared with a loss of $892,000 a year ago. Revenue rose 50 per cent, to $59.2 million, up from $39.3 million a year ago.
TiVo claimed 4.4 million subscribers on July 31, up slightly from last quarter and up 24 per cent from the same time in 2005.
Meanwhile, TiVo said it had made a deal with Omnicom Media Group’s OMD and PHD units to supply the advertising agencies with "second-by-second advertising and audience measurement research." The offering is part of a new ratings service from TiVo, which is competing in the same space as Nielsen Media Research.
Foxtel for Telstra IPTV
From Rose Major in MelbourneTelstra would offer Foxtel as an IPTV service, rather than go it alone with its Bigpond brand, Bigpond's managing director said.
Justin Milne told The Australian newspaper that Bigpond would use Telstra's 50 per cent shareholding in Foxtel to facilitate its IPTV offering, eliminating a possible future competitor to Australia's premier pay-TV platform. Foxtel currently has an effective pay-TV monopoly in urban areas, with both Telstra and Optus offering the platform over their hybrid fibre coaxial cable lines, as well as Foxtel's own satellite service.
But after Bigpond recently started offering subscribers movies to download, some speculated that the company could be shaping up to compete against Foxtel with any IP-based TV service. Instead, Milne told the newspaper: "Would we, and are we, looking at facilitating Foxtel using our IP networks to deliver pay TV? You bet." No timescale for a service was offered, but Bigpond has reportedly signed a deal with Alcatel that stipulates an IPTV launch within three years.
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US cable: $120bn by 2015
U.S. cable operators will post $119.8 billion in annual revenue by 2015, Kagan Research predicts in a new report. The market research firm said it expects cable VoIP subscribers to jump from 2.6 million at the end of 2005 to 6.5 million by the end of 2006. It also predicted that high-speed Internet penetration of basic video customers will jump to 45 per cent by the end of 2006, compared to 39 per cent at the end of 2003. It also said it expects total residential cable revenue to grow 9.6 per cent to $68.2 billion in 2006, with average revenue per unit of $87.04, compared to ARPU of $79.42 in 2005.
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China goes it alone on DTT standard
From Rose Major in MelbourneChina will use a domestically-developed standard for digital-terrestrial television rather than one of those such as DVB-T already employed worldwide.
The Standardization Administration of China included the new standard on its website yesterday, in a list of those which have been newly approved. It was listed as the "Framing structure, Channel coding and modulation for [a] digital television terrestrial broadcasting system". The standard will officially come into effect from August 1 2007 although roll-out is likely to start earlier and analogue switch-off scheduled for 2015.
Thought to be suitable for transmitting signals in remote areas, the standard will bring DTT signals to China's huge population. Digital-cable TV has been available in some dozen cities since 2003, but at around 4 million households, take-up has been small compared with the huge number of homes in the country, some 380 million.
China is also reported to be developing its own standard for mobile TV broadcasting, with trial broadcasts set to start in mid-2007.
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Provider of digital participation TV programmes and interactive mobile content Cellcast announced interim half-year results, revealing a pre-tax loss of £2m (E2.89m), widened from a £539,000 loss for the same period in 2005. Turnover increased by 65 per cent to £9.6m. Cellcast says its profitability was impacted by reorganisation of Sky's Electronic Programming Guide.
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Virgin Mobile, now part of the cable company NTL, will next week launch a UK mobile TV service. Operated by BT's Movio unit it will offer several UK digital terrestrial channels. Results from last year's trial suggest radio, rather than a limited number of TV channels, is more attractive to the public. At the end of a six-month trial, 59 per cent of the participants rated mobile television as "appealing" or "very appealing", while 65 per cent said the same of digital radio. Those taking part watched an average of 66 minutes of television a week on their phone but listened to 95 minutes of radio.
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HD titles from Warner
Warner Home Video said it will release 10 high-definition titles on September 26, including six in the Blu-ray format and four in the competing HD-DVD format. Blu-ray is a high-definition standard backed by Sony Corp., while HD-DVD was developed by a Toshiba Corp.-led consortium.The Time Warner Inc. unit will release on Blu-ray "Tim Burton's Corpse Bride," "Swordfish," "Space Cowboys," "Lethal Weapon 2," "The Fugitive" and "House of Wax." Making their HD-DVD debuts are "The Dirty Dozen," "Grand Prix," "Terminator 3: Rise of the Machines" and "The Adventures of Robin Hood."
Icareus Entertainment Solutions, a leading MHP interactive game provider, has signed a contract with the Finnish cable operator Suomen 3KTV Oy. Starting from today the two companies will offer in cooperation a selection of games in dnaTV's Aktiivi TV service. For the first time in Finland consumers will be offered interactive TV services for a monthly fee. The players will be charged E5 per month for using the service. Every month a new game will be added to the portal to maintain the interest of the players and to attract new users. IES Games offers one of the largest MHP game portfolios in the world.
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Thursday 31st August
MTV buys out Japan partner
MTV buys out Japan partner
RTL sees ads pick up
DirecTV trials VoIP
MMG still on buying trail despite bad risks
Star back in Taiwan?
Globecast sends NatGeo HD to France
MTV will buy out H&Q Asia Pacific, a private equity group, to take 100 per cent control of its Japanese unit for an undisclosed sum. MTV currently has a 32 per cent stake in its Japanese unit. "This will make Japan one of our largest growth markets in the future. We have big aspirations for Japan," William Roedy, vice-chairman of MTV Networks, said.
The Japanese market for music content downloaded to mobile phones, including ringtones, has surged from Y73.6bn ($630m) in 2001 to Y161bn last year and is forecast to grow to Y227.7bn this year, according to the Digital Content Association of Japan. This is much larger than the market for music downloads on PCs, which has grown from Y1.6bn to Y29.3bn over the same period. The market for mobile video content has grown from Y17bn in 2001 to Y58.9bn last year and is forecast to rise to Y79.5bn this year, according to the DCAJ.
"What makes us particularly excited about Japan is growth of third-generation mobile phones and broadband," Roedy said. Buying out its partner will allow MTV to bring its Japanese businesses, including Nickelodeon and Flux, a video and music delivery service for mobile and online networks, under direct cotnrol.
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RTL sees ads pick up
RTL Group said the advertising market improved in all its major markets apart from the UK as it reported growth in its first half profits before tax. Revenue rose 19.1 per cent to E2.85bn and EBITDA was 26.5 per cent higher at E478m. But net profits fell from E361m to E355m as a "one-time tax benefit" in 2005 was not repeated. RTL, which is owned by Bertelsmann, said it saw "improved advertising conditions in most of our major markets", with the notable exception of the UK, where it controls Channel 5.Non-advertising businesses grew to account for 40 per cent of total revenue compared to 37 per cent the previous year, boosted by mobile phone services, e-commerce and game show productions.
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DirecTV trials VoIP
A joint venture between DirecTV Group and Hicks Holdings plans to test an Internet-based phone service that could see DirecTV offer a triple play package.
DirecTV and Hicks in have formed a venture called DirecPath to bring DirecTV's satellite entertainment service, along with high-speed Internet and related services, to apartment dwellers and residents of gated communities. The joint venture has now named Vistula Communications Services Inc. of New York as the provider of the Internet phone service. The new phone service will be tried first in a small test and pilot programme in Florida.
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MMG still on buying trail despite bad risks
From Rose Major in MelbourneMacquarie Media Group (MMG) is still looking for acquisitions, despite a year in which it considered a number of opportunities but rejected most as bad risks.
Announcing results for the year to the end of June, managing director Alex Harvie said that MMG would "continue to proactively identify opportunities to acquire accretive assets which meet our investment criteria both in Australia and offshore."
Criteria for acquisitions include strong market positions, high barriers to entry for competitors, stable cash flows and the potential for growth. But despite exploring opportunities in Australia, North America, Asia, Europe and the UK, MMG has found made just one acquisition since listing in November 2005 - 60 per cent of Taiwan Broadband Communications (TBC). Other possibilities, including ones in cable television and new media, either had a limited growth profile, did not meet return hurdles, were in markets with insufficient barriers to entry, had threats to their competitive positions, or were characterised by a lack of access to management expertise.
MMG is a Australian media investment group which is a division of Macquarie Bank. It listed separately in November 2005. TBC's revenues rose 6.8 per cent to A$246 million and EBITDA rose 9.9 per cent to A$140.5 million. Group revenues were A$163.2 million and EBITDA A$57.4 million. Net profit was A$16.3 million.
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Star back in Taiwan?
Star TV is considering re-entering Taiwan’s cable TV market if, as expected, it sells its 20 per cent stake in China Network Systems as part of an auction of the company. Six overseas private equity bidders – Kohlberg Kravis Roberts, Macquarie Bank, Goldman Sachs, CVC Asia Pacific, TPG/Newbridge and MBK Partners – have joined the race to purchase CNS, the country’s leading cable TV operator, in a deal expected to fetch $1.5bn.Hong Kong-based Star remains bullish about the growth prospects for CNS but is expecting to have to sell its holding following the decision by Taiwan’s family-controlled Koos Group, which owns an 80 per cent stake, to auction the company. One option being considered by Star is to buy back a major stake in CNS from the winning bidder. Star declined to comment. CNS holds 26 per cent of the market. The six bidders have until the end of this week to structure their bids.
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Globecast sends NatGeo HD to France
GlobeCast is delivering National Geographic France HD from Italy to French bouquet CANALSAT, thanks to an agreement with the channel’s parent company, FOX International Channels Italy. GlobeCast is providing Fox International Channels with an end-to-end contribution service, including delivery of National Geographic France HD from the Sky Italia headquarters in Milan via diversified fibre routing to CANALSAT’s headquarters outside Paris. In addition, GlobeCast will provide all HD encoding and decoding equipment.
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Wednesday 30th August
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Lycos, Blinkx link
Sogecable to sell off premium content
Ebay, Google alliance
Universal backs free music site
NTL still target
Broadcasters finally settle with DISH
Digita chooses T-VIPS for DVB-H
Deutsche Welle buys Orad system
Widevine for Estonia
Lycos, Blinkx link
Lycos is launching a broadband video search service powered by Blinkx technology. They will share advertising revenues generated by the search results. By incorporating the Blinx technology, Lycos hopes to make it easier for its 25m unique users to find online video content. "As Lycos continues our push into building community around high-quality video content, giving users access to a best in class video search experience is critical," said Alfred Tolle, chief executive.
Google and Yahoo have added video search capabilities and last week Sony’s entertainment unit paid $65m to acquire Grouper, another web video service. Blinkx has an index of more than 5m hours of searchable video content, including favourite TV moments, news clips, short documentaries, music videos, and video blogs or "vlogs". Blinkx says speech and pattern recognition technology make it possible to deliver more accurate and relevant results than typical "metadata" based search engines that generally rely on keywords.
Sogecable to sell off premium content
From David Del Valle in MadridSpain's leading pay-TV group Sogecable is to sell premium TV content to other operators to raise revenues. The launch investment in its new commercial channel Cuatro and the apparent saturation point reached by the Spanish pay-TV market in terms of subscriptions, are forcing Sogecable to look for other ways to finance their TV operations.
The group is to share its Canal Plus premium content (football and exclusive films) with other operators. The first step is the sale of free-to-air TV rights to the Spanish Football League to Mediapro, a production TV company and a shareholder in the new channel La Sexta, for more than E100 million. The decision has seen Mediapro become a shareholder with a 25 per cent stake in Audiovisual Sport, the company created by Sogecable to manage and operate football TV rights. The next step will be to share pay-TV football rights with other (cable, ADSL) operators. Similarly, the company plans to sell its exclusive rights to some movies.
The move comes at a time when Digital Plus, Sogecable's DTH platform, seems to have reached saturation in terms of new customers. Over the last quarter, Digital Plus only captured 4,200 subscribers, or around 10 per cent of all new pay-TV subs in the market in that period. Telefonica's Imagenio IPTV service captured 40 per cent while Ono and smaller cable operators got 50 per cent.
Over the last three years, Digital Plus has gone from a market share of 71 per cent in 2003 to 58 per cent by the end of last quarter. The ARPU dropped from E 47.2 in the first quarter to E42.4 in the second.
In the year to June Sogecable lost E15.7 million against a profit of E2.7 million the same period last year, due to the impact of the launch of Cuatro (it has a debt of E1 billion) and the slowdown in the pay-TV market.
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Ebay, Google alliance
Ebay has given Google an exclusive contract to supply text-based advertising for its websites outside the US, echoing its earlier agreement to carry advertising from Yahoo in its home market. Also, the companies announced a non-exclusive worldwide "click-to-call" advertising agreement under which they will carry their respective voice services – Ebay’s Skype and Google Talk – on each other’s shopping and search pages. Click-to-call adverts create an online voice connection between a web user and advertiser.
Concern that Google would expand into online commerce was rife on Wall Street and is one of the biggest reasons for underperformance in the online auction company’s shares over the past 18 months. The threat from Google was also seen as one of the main reasons for Ebay’s alliance with Yahoo.
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Universal backs free music site
Universal Music is backing a start-up that will allow consumers to download songs for free. It will rely on advertising for its revenues, offering a different business model from the iTunes music store. The service, SpiralFrog, is due to start up in December. Apple’s iPod and its iTunes music download service has 80 per cent of the market for legally downloaded music.
As well as start-ups established players are readying music lauches: Microsoft is to launch Zune, which will offer music players and a music download store. MTV has launched Urge, a service that has downloadable music and music videos via subscription. AOL has unveiled a revamped music product with a Web-based store and subscription service offering audio and video streaming.
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NTL still target
A private equity consortium that was stalking NTL is said to have revived its interest. Providence Equity, Blackstone, Cinven and KKR have come together to target Britain’s sole cable operator but major investors – led by Bill Huff – are said to be holding out for a $34+ a share price: NTL closed the month at $26.
An offer at the sought premium could value NTL’s equity and debt at close to $20bn, making it Europe’s largest buy-out. However, the consortium has has yet to win over Huff or Sir Richard Branson of Virgin Group, now NTL’s largest shareholder with 10.5 per cent.
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Broadcasters finally settle with DISH
A nine-year battle has finally come to an end with the announcement that broadcast groups representing network affiliates have reached a settlement with EchoStar over distant network signals. The agreement would allow the satellite company's DISH Network to continue providing distant ABC, CBS, NBC and FOX stations to eligible customers, but would force EchoStar to terminate service to ineligible ones.
Part of the agreement includes DISH's expansion of local station delivery from 165 to 175 markets by the end of the year and a $100 million settlement fee to protect affiliate subscribers from the shut off. "NAB is pleased the four affiliate associations and EchoStar have negotiated a solution that protects consumers while preserving broadcast television's rich tradition of localism," NAB President and CEO David K. Rehr said.
EchoStar said it "hoped and expected to resolve the dispute with all remaining litigants," but Fox Network declined the company's universal settlement offer and pulled out of the discussions. Consequently, DISH said, litigation with approximately 25 Fox owned-and-operated stations continues.
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Digita chooses T-VIPS for DVB-H
T-VIPS, a Norwegian technology company, has announced that it has been awarded a contract by Digita OY to provide IP content transport solutions for Digita’s pioneering DVB-H network rollout in Finland.
Digita obtained the DVB-H network license from the Finnish Government earlier in 2006 and will be responsible for the operation of the DVB-H network and administration of MobileTV channels.
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Deutsche Welle buys Orad system
Orad Hi-Tec Systems announced it has signed an agreement with leading German broadcaster, Deutsche Welle, valued at more than E1 million. This project is Orad's largest European news installation. As part of the agreement, Orad will introduce a completely new digital graphics workflow at both Deutsche Welle's studios and continuity rooms. The entire graphic system will be based on Orad's next generation HDVG video graphics rendering platform.
Widevine Technologies announced that Elion—the largest telecommunications provider in Estonia—has chosen Widevine Cypher, a downloadable conditional access and digital rights management suite, to protect premium broadcast channels for its DigiTV service and enable its acquisition of video-on-demand content.
Elion’s DigiTV service includes premium broadcaster and studio content from: ESPN, Disney, Discovery Channel, MTV and HustlerTV along with local broadcast and sports packages from Discovery Communications, Turner Networks, ViaSat, BBC and more. Subscribers can acquire basic service with 40 broadcast channels with the option to upgrade to 30 additional premium channels. Elion expects to reach half of Estonian homes with DigiTV by the year 2010.
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UK TV ads lowest for 10 years
AOL multiple studio deal
Australian government "ignoring" IPTV
DirecTV Brasil and Sky merge
Warner Bros. Sign VOD deal with DISH
BT, Entriq ally for DTO
TiVo for Cox
Plasma sales 95 per cent up, LCD 135 per cent
Humax integrated TV DVR
UK TV ads lowest for 10 years
The average cost of advertising on television has fallen to its lowest in a decade as the supply of commercial broadcasting continues to exceed advertiser demand. Media agencies estimate the average industry price to reach 1,000 adults via commercial television has slipped below that charged in 1996.
In 1996, advertisers paid an average cost per thousand adult viewers of £5.70. (E8.26) Initiative, the media buyer, puts the current price at £5.32, reports the FT. After adjusting for inflation, the real cost of television airtime is less than three-quarters of what it was a decade ago.
Advertising accounted for 43 per cent of total UK commercial television revenue in 2005, said Ofcom, the media regulator. But those revenues are shared out unequally across the industry. Digital-only channels accounted for 30 per cent of viewing in all homes last year and 43 per cent in multi-channel homes. But they took less than 25 per cent of advertising revenue.
Some in the industry have hoped that interactive revenues would grow to supplement advertising revenues. Ofcom, however, estimates that TV shopping and interactive revenues fell last year, although this may have been due to problems collecting the figures.
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AOL multiple studio deal
AOL said it will offer movies from four major Hollywood studios for downloading on its new Internet video service. AOL said films from Fox, Sony Pictures Entertainment, Universal Pictures and Warner Bros. will be available for download on AOL Video for $9.99 to $19.99 per movie. Only 25 movie titles are available now, but the company planned to add "hundreds" in a few weeks, an AOL spokeswoman said.
AOL said in July that the service would allow users to buy or watch for free thousands of television shows from any one of 45 video-on-demand channels, including programs licensed from Viacom Inc.'s (Charts) MTV, Nickelodeon and Comedy Central networks and A&E Television Networks. The announcement comes amid growing competition in the online video business, which includes movie download sites CinemaNow and Movielink, as well as online DVD rental company Netflix Inc.
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Australian government "ignoring" IPTV
From Rose Major in Melbourne
Australia's opposition communications spokesman, Senator Stephen Conroy, has accused the government of "totally ignoring" the development of IPTV and VOD,
labelling its forthcoming media legislation "a no-show".
In a opinion piece for Fairfax newspapers, Senator Conroy said there was "huge pent-up consumer demand for online video" but broadband speeds were too slow
and the government was doing nothing to legislate to help.
"One area the Government has totally ignored is the potential of broadband to deliver new media services such as IPTV and video on demand," argued Conroy.
"Australia's dilapidated broadband network is holding back our media companies. It is stifling investment and limiting services."
Conroy also accused the government of stymieing the development of digital-terrestrial television to protect the interests of large media companies. The government's stated desire for "new and innovative services" on spare DTT spectrum was "just code for saying that they will be carefully circumscribed niche
offerings that won't threaten incumbent broadcasters", he said.
And by closing off the DTT market to new general entertainment networks until after switchover, the government would reduce incentives for the broadcasters to aid the move from analogue to digital. "Protected from new entrants, broadcasters may feel that it is in their interests to delay switchover a long as possible by offering little in the way of new digital services," argued Conroy. And removing genre restrictions on the ABC and SBS's digital services would be useless without extra funding for the two public broadcasters, he added.
Government reliance on high-definition TV to help drive digital take-up also came into Conroy's sights, with the Senator pointing out that only seven per cent of Australian households had HD hardware because it was still so expensive.
But while asserting that his party was "committed to building a national, fibre broadband network to bring 21st-century media services within reach of Australian
consumers", Conroy did not expand on what his party's media policies were.
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The merger of Sky Brasil and DIRECTV Brasil is now complete. As part of the transaction, DIRECTV Brasil and Sky Brasil have been combined and the DIRECTV Group has acquired the interests of News Corporation and Liberty Media in Sky Brasil.
Following the transaction, the DIRECTV Group now owns approximately 74 percent of Sky Brasil and Globo Comunicacao e Participacoes S.A. (Globo) owns approximately 26 percent. The DIRECTV Group will control day-to-day management of Sky Brasil and Globo will remain with minority governance rights, consistent with its position as a strategic partner, and will continue in its role as the lead supplier of Brazilian programming to the platform.
Together, DIRECTV Brasil and Sky Brasil have approximately 1.3 million subscribers, making up one third of all pay television subscribers in Brazil. Following the merger, DIRECTV Brasil customers will migrate to the Sky Brasil platform.
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Warner Bros. Sign VOD deal with DISHEchoStar Communications announced an agreement with Warner Bros. Home Entertainment to carry the studio's current and catalogue titles on its Video On Demand platform, DISH On Demand, as well as Pay-Per-View services, including high definition.
"Warner Bros. is a great addition to both DISH On Demand and Pay-Per-View," said Susan Arnold, vice president of Programming for EchoStar. "Hit movies such as "V for Vendetta" greatly enhance the variety of movie titles available to our customers."
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BT, Entriq ally for DTO
BT Media and Broadcast has formed an alliance with pay media solutions provider Entriq. The two organisations will work together to provide an end-to-end digital content delivery system, including a digital store, that allows customers to sell high value content via the web and mobile platforms to consumers.The service has already successfully won its first customer; following a competitive tender, the service has been selected by BT Vision to enable consumers to download video entertainment to their PCs and portable media players from the BT Vision website.
The BT Vision download-to-own service, launched in July 2006, has up to 150 titles available from NBC Universal including the latest from Hollywood and classics from the archive. The service will build to a huge selection of titles from all genres, wherever possible offering customers the opportunity to download and own content and view it on a PC, portable media players and the TV.
Barry Bonnett, CEO BT Media and Broadcast, said that similar alliances would form a key part of the unit’s strategy moving forward. “They allow us to focus on maximising the consumer experience on behalf of our customers, safe in the knowledge that the valuable content is securely managed and delivered.”
According to Scott Crowder, COO, Entriq, "Broadband distribution has matured to such a level in Europe that media owners across Europe are seeing new revenue opportunities through online and mobile distribution channels for their premium content.”
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TiVo for Cox
TiVo has entered into an agreement with Cox Communications to make the company's digital video recorder and interactive advertising service available to select Cox subscribers. TiVo will customize its cable software for deployment on compatible Cox DVR set-top boxes. TiVo's downloadable software will allow Cox to deliver the company's service to its cable subscribers who wish to add TiVo to their DVR subscription.
Cox Digital Cable customers with DVR service who choose to add TiVo to their subscription package will have access to the the company's user interface as well as newer innovations that link the capabilities enabled by Cox's On Demand and HD service. Subscribers will also be able to utilize TiVo's new features like Season Pass recordings, WishLish searches and TiVo KidZone.
The agreement also provides for Cox to distribute TiVo's interactive advertising platform which enables an advertising solution integrated with the TiVo experience. The new advertising relationship is designed to extend Cox's role in the advanced advertising arena and help TiVo grow it's national advertising footprint, the companies said.
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Plasma sales 95 per cent up, LCD 135 per cent
Global sales of plasma televisions surged 95 percent in the April-June quarter from a year earlier to 2.2 million units research firm DisplaySearch said. Plasma display panel (PDP) TVs took a 5 percent share of the worldwide TV market in the second quarter in unit terms, up from 4 percent in the first, the company said. On a revenue basis, PDP TV sales grew 57 percent from a year earlier as price declines outpaced increases in the average size of televisions sold, DisplaySearch said.
Plasma TVs accounted for 20 percent of the global TV revenues in the second quarter, up from 18 percent in the first. LCD TV sales jumped 135 percent in the second quarter to 9.4 million units, accounting for 22 percent of global market.
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Humax unveils the first model in its new range of HD-ready LCD IDTVs. The LP32-TDR1 provides the ultimate all-in-one product to watch and record digital terrestrial TV, boasting a 32” widescreen LCD panel and an integrated twin tuner personal video recorder (PVR) that can store up to 100 hours of programming onto its massive 160gb hard disk drive.
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