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Scroll down page or click below for news - latest first
Tuesday
Microsoft video TV
Sony-MMG merger nixed?
Australia drops simulcasting, compromises on multichanneling
Bundesliga for all
Green light to axe 4,150 workers in RTVE
Bell and CHUM get together?MICROSOFT is to mount an assault on video-sharing websites like YouTube.com according to The Times. The plans emerged as Google launched a UK version of its Google Video site featuring content from last week’s Wimbledon tennis tournament.
The Microsoft site will be launched this summer as it moves to increase the reach of its MSN portal by tapping the explosive growth of social networking sites such as Beboa and myspace.
The service will target users who want to upload home grown material and also plans to offer video content in comedy and extreme sports. Revenue will come from advertising. Funding for the venture will come from a $2 billion pot set aside for its next-generation Windows Live services.
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Sony-MMG merger nixed?
Europe’s second-highest court shocked the music industry by annulling the European Commission’s approval of the 2004 merger that created Sony BMG. The European Court of First Instance backed a challenge by independent music companies, who claimed regulators had been wrong to allow Sony and Bertelsmann to combine their recorded music businesses. The Commission will now have to re-examine the merger.
“The Commission did not demonstrate to the requisite legal standard either the non-existence of a collective dominant position before the concentration or the absence of a risk that such a position would be created as a result of the concentration,” the court said.
Bertelsmann and Sony first proposed the 50-50 merger of their recorded music activities in early 2004, to create the world’s second-largest recorded music company. The European Commission ruled in July 2004 that the merger - which left the bulk of the recorded music market in the hands of four big companies - would not pose a risk to competition in the music market.
The ruling throws doubt on the mooted merger of EMI and Warner Music.
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Australia drops simulcasting, compromises on multichanneling
From Rose Major in Melbourne
Australia's free-to-air television networks will no longer have to simulcast their services in high-definition, and will instead be able to offer a stand-alone HD channel, under plans announced by the communications minister.
The announcement was part of the government's new media legislation, unveiled by minister Helen Coonan and expected to come into force from the start of 2007. The government is seeking to liberalise Australia's media environment, also axing many cross-media and all foreign ownership restrictions, which is likely to lead to a round of mergers and acquisitions.
Lifting the requirement to simulcast programming in HD where it is available means that the networks could choose to offer a completely separate HD channel on
DTT, but the expense of such a channel is likely to stand in the way. However, the networks cannot choose to drop the HDTV channel altogether once the simulcasting requirement is gone - the current HDTV quota of at least 1040 programming hours per year (an average of 20 hours per week) will remain.
But the move does signal an end to Australia's previous stance that HDTV would be one of the major drivers of take-up of digital broadcasting.
Under the government's proposed legislation, free-to-air networks will also be allowed to launch one new standard-definition channel on DTT from 2009. That decision is a compromise one - the government had planned to keep the ban on letting the networks launch new DTT channels, but its proposal was vigorously opposed by Seven Network. Seven said the ban would stymie take-up of DTT.
But rivals Ten and Nine both oppose multichannelling, arguing Australia's television market is too small to sustain large numbers of free-to-air channels. Nine also has a 25 per cent stake in digital pay-TV platform Foxtel.
Explaining the decision, the government said: "The Government considers that there should be some new opportunities made available to broadcasters in the
transition to a fully digital television broadcasting environment for those who wish to take up those opportunities.
"While the Government recognises there are a range of views relating to the benefits and impacts of multichannelling, the availability of some new digital services will provide more variety for consumers and further contribute to digital take-up."
As part of that, all genre restrictions on public broadcasters ABC and SBS's digital channels will be removed. Two new digital channels will also be opened up, with the government reiterating it plans to allocate these for "new and innovative services" such as mobile or interactive TV which could include up to 30 channels under some uses. Further details on the allocation or auction of the channels will be released
at a later date.
Full multichannelling for commercial channels will not be allowed until after analogue switch-off, which is now slated to commence in 2010-2012, rather than the end of 2008, as previously planned. The government will develop a Digital Action Plan to "proactively drive digital take-up", said Coonan, which will be released later in the year.
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Cable group Unity Media, rights holder arena and pay-TV operator Premiere have agreed a deal on the distribution and marketing partnership in cable of Germany’s premier football league, the Bundesliga.
The new Bundesliga channel arena will be available in cable throughout Germany. Pay TV provider Premiere is to market arena in cable and will have a technical reach of some 9.6m cable TV households in the Kabel Deutschland regions. At the same time, cable operators ish, iesy and Tele Columbus, subsidiaries of the arena parent company Unity Media, will also offer their customers Premiere packages directly.
arena and Premiere have concluded a distribution and marketing contract to this effect. Via Premiere, ish, iesy, Tele Columbus, Kabel BW and smaller cable operators, arena reaches practically all cable customers in Germany. arena has previously secured national distribution via satellite with its own system.
Premiere is to carry the offering from broadcaster arena in unaltered format and has decided to offer individual subscriptions initially for €4.90 to cable customers in the Kabel Deutschland regions. The satellite offering from arena will be unaffected by the co-operation agreement.
Premiere has a separate deal with Deutsche Telekom (DT) that will allow the broadcaster's customers to see top German football matches over the Internet. Under the terms of the deal, Bundesliga games will be available to Premiere customers who have a broadband Internet connection from Deutsche Telekom, using a special set-top box connected to their television. DT owns the Internet rights to broadcast the matches.
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Green light to axe 4,150 workers in RTVE
From David Del Valle in MadridThe Spanish Government and trade unions have agreed that 4,150 should lose their jobs as part of the latest viability plan. The workforce will reduce with early retirement for the over 50's who will earn 73 per cent of their wage until the age of 65.
The new RTVE will become a corporation with a staff of 6,400 people out of the current 9,366 workers. With its reorganisation, the Government aims to tackle its huge debt - which currently amounted to E7.5 billion- and make the loss-making group - that operates La Primera and La 2- into a profitable company.
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Bell and CHUM get together?
From Gail Chiasson in MontrealAn enormous change in Canada's media landscape is on the horizon:: Bell Globemedia, which owns CTV (Canada's largest private TV network) and The Globe and Mail national newspaper, has announced a Cdn$1.7 billion (E1.5 billion) purchase offer for CHUM Inc..BGM is paying a premium for CHUM, whose founder and controlling shareholder Alan Waters, died in December, leaving the company in the hands of his son Jim Waters and other members of the family. The cash consideration represents a 50 per cent premium over the 10-day weighted average trading price of the Common Shares and a 57 per cent premium over the 10-day weighted average trading price of the Non-Voting Class B Shares, as of July 11/06. BGM is offering $47.25 for each non-voting share and $52.50 per share for voting stock.
The deal would have to be approved by both the Canadian Radio-television and Telecommunications Commission and the Competition Bureau. The CRTC would almost certainly insist on the divestiture of some TV stations to avoid concentration of ownership in some markets.
CHUM owns 33 radio stations and 12 television stations, including the Citytv and A-Channel stations across Canada. Ivan Fecan, president and CEO of Bell Globemedia and CEO of CTV Inc., said the company would divest the Access Alberta and A-Channel stations. (CHUM also owns 21 specialty stations, including MuchMusic.)
In addition to owning CTV and The Globe and Mail, Bell Globemedia has a 15 per cent interest in Maple Leaf Sports and Entertainment, which owns the Toronto Maple Leafs (of the NHL) , the Toronto Raptors (of the NBA) and the Air Canada Centre. CTV has one of Canada's strongest stables of specialty channels, including Canada's number-one specialty channel, TSN.BCE Inc. owns 68.5 per cent of Bell Globemedia, while Woodbridge Co. Ltd., which is the private holding company of the Thomson family, holds the remainder. Under a still-to-be approved reorganization announced earlier this year, Ontario Teachers' Pension Plan Board and Torstar Corporation will also become shareholders of Bell Globemedia.
CHUM also announced the layoff of 281 staff at its Victoria, Vancouver, Edmonton, Calgary, Winnipeg and Barrie TV stations.
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UDTV: all done
Four bids for Casema
BSkyB scoops last mobile soccer
IPTV: 34m by 2010
Insat loss dents DTH
No use for mobile video
BBC will rebate under spend
Freudenstein for Oz digital media
TANDBERG $100M revenues in Q2UDTV: all done
Fledgling DTT provider U.S. Digital Television, which offered 30 channels of basic-cable TV for $19.95 per month, has filed for Chapter 7 liquidation bankruptcy. Based in Utah, the company used digital-broadcast spectrum to beam its signals to homes in Dallas; Salt Lake City; Albuquerque, and Las Vegas. The company has said that it has about 16,000 subscribers.
USDTV targeted “cable-never” homes -- consumers who had never had cable or satellite television -- and cable or direct-broadcast satellite subscribers upset over paying for channels they never watched.It leased digital spectrum from television stations in the markets it targeted and sold the service through Wal-Mart Stores, select dealers and via the Internet and telephone orders. According to its Chapter 7 petition, filed July 6 in in Delaware, USDTV listed estimated assets of $1 million-$10 million and estimated debts of $10 million-$50 million.
According to press reports USDTV CEO Steve Lindsley said the company is in discussions to possibly sell the assets to a third-party investment group. He said USDTV is still providing service and is in discussions with the U.S. Bankruptcy Court Trustee to continue to provide service in order to help facilitate a sale.
USDTV launched in 2003 and in 2005, got a much-needed capital infusion when TV-station groups -- Fox Television Group, Hearst-Argyle Television, LIN TV, McGraw-Hill Broadcasting, Morgan Murphy Stations and Telecom DTV -- agreed to invest a combined $26 million in the company.
Back to topThe sale of Dutch cable TV company Casema has attracted four bids according to Het Financieele Dagblad. The paper said the bidders include a consortium of private equity funds Cinven and Warburg Pincus, as well as BC Partners, Macquarie Bank, and Liberty Global.
Liberty Global owns the biggest Dutch cable TV firm UPC, and Warburg Pincus controls Multikabel, number four on the Dutch market. Casema, currently owned by private equity firms and serving 1.3 million subscribers, is number three with a market share of about 21 percent. The second biggest Dutch cable TV company, Essent, is also up for sale.
Casema CEO Jos Molenkamp said in June consolidation was necessary because only a unified network could effectively attack dominant Dutch telecoms group KPN.
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BSkyB scoops last mobile soccer
BSkyB has secured the last package of Premier League football rights, beating a consortium headed by TWI and backed by the UK's five mobile phone networks.
The Premier League announced the licence to show clip highlights of games on mobile phones from the 2007/8 season has been awarded to Sky. The deal means Sky has snapped up parts of all three types of rights auctioned by the Premier League - TV, online and mobile.
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Global IPTV subscriptions are expected to jump from two million to 34 million between 2005 and 2010, according to The Diffusion Group’s latest report, IPTV Update 2006 - The Future of IP Media, North America will experience the most rapid rate of growth during this time period with a CAGR of 78%, followed by Europe, the Middle East, and Africa (EMEA) with a CAGR of 61% and Asia/Pacific with a CAGR of 41%. According to the report, IPTV deployments in several key European countries are on schedule, with new launches expected in smaller Eastern European and Nordic countries. For these reasons, the EMEA region is expected to top 14 million IPTV households by 2010 with France, the UK, Italy, Spain, and German accounting for 87% of the total.
The number of North American IPTV households is also expected to near 14 million by 2010, with the US accounting for 80% of these subscriptions. While the majority of 2005 and 2006 IPTV deployments have been executed by small rural operators, TDG expects the new deployments by Verizon and AT to greatly increase subscribers starting in 2007.
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Insat loss dents DTH
The launch of India's heaviest communication satellite Insat-4C has failed says The Times of India, dealing a blow to DTH ambitions.
"There seems to be a mishap in the first stage separation. Things have gone wrong," project chairman G Madhavan Nair said. He said the lift-off was normal, but in a few seconds the vehicle was found to be off trajectory and in 60 seconds, some parts had broken up.
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A new Knowledge Networks study found that 50% of those who subscribe to video cell phone services - and 30% of video iPod owners - never use these devices for viewing video. The study also revealed that 88 percent of people who download mobile video would watch a commercial in exchange for free content, and that laptop computers are actually the most commonly used devices among those who view mobile video.
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BBC will rebate under spendThe BBC chairman, Michael Grade, has promised to hand licence fee payers a rebate in the (unlikely) event executives fail to come up with satisfactory ways of spending their money. Appearing before a government committee yesterday, Grade said the BBC Trust that will replace the existing board of governors from next year would have "no hesitation" in returning a portion of the £3.1bn (E4.49bn) raised by the licence fee to viewers. The BBC's licence fee bid asks for a rise of 2.3% above inflation, taking the annual charge to more than £180 (E260) by 2014.
The director general, Mark Thompson, told the committee that FreeSat, a free satellite version of digital service Freeview, would be in service by autumn 2007. Many people are unable to receive a Freeview signal, a big cause of complaints to the BBC. Delays in its launch have been caused by a failure to agree on common standards.
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Freudenstein for Oz digital media
Richard Freudenstein, the outgoing BSkyB chief operating officer, is to head up a new digital division at News Corp Australia. He will return to his native Australia to become chief executive of News Digital Media in Sydney. He will start work in October and report to the News Limited chairman and chief executive, John Hartigan.
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TANDBERG $100M revenues in Q2
TANDBERG Television delivered revenues of $100.1m in Q2 06, up 40% on 05. The gross margin was 58.2%, up from 55.1% in the same quarter in 2005. Operating profit was $18.9 compared to $12.2 in the same quarter last year.
TANDBERG says 2Q06 saw Television maintain its position as a clear technology leader in the digital media infrastructure market. It exhibited its integrated compression, on-demand and interactive solutions and delivered addresses at over 15 industry events in Asia, Europe and North America. The company says it delivered continued momentum in HDTV, IPTV and digital television market with key contracts and deployments across all regions.
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Netcom welcomes Leung
US media players line up for wifi
Nielsen will track ad ratings
BPI wants ISPs to shut accounts
Ozzy telcos will build own net
Guba signs Sony
Panasonic record screen
Triveni and National Datacast Joint Solutions
It seems State-run PCCW shareholder China Network Communications blocked a deal with Australian bank Macquarie or others because it did not want Chinese telecoms networks in foreign hands. Netcom has welcomed Hong-Kong based investor Francis Leung taking a controlling stake in PCCW for $1.2bn. He bought the 23% stake from chairman Richard Li, who had wanted to sell off PCCW's assets to foreign bidders.
The company was created in 2000 when Mr Li's Pacific Century Group bought phone company Cable & Wireless HKT, the former Hong Kong Telephone Company.
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US media players line up for wifi
In August the FCC is scheduled to begin auctioning off hundreds of licenses for advanced wireless services in a sale that analysts have said could raise between $8 billion to $15 billion. DirecTV has joined forces with rival EchoStar and Liberty Media to bid on the sale.
A venture backed by the No. 3 wireless carrier Sprint Nextel and major cable operators, including Comcast and Time Warner as well as an entity run by Cablevision Systems Corp.'s Chairman Charles Dolan also sought to participate in the bidding. The Dolan group qualified to bid in the sale but the other media companies filed incomplete applications with the FCC. They have until July 18 to rectify the deficiencies.
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Nielsen Media Research is setting out to answer the question: How many people actually watch TV commercials? In November, Nielsen will begin for the first time to provide formal ratings for commercial breaks. Currently, Nielsen provides ratings only for individual TV programmes in their entirety. Commercial prices are based on that overall rating.
Both TV networks and advertisers expect the new Nielsen ratings will show that viewership declines noticeably when in a break for commercials. A particularly big drop could fuel advertisers' push for changes in how ads are incorporated into shows, reinforcing demands for fewer or shorter ad breaks and lower ad rates. It could also accelerate the flow of advertising dollars out of television to the Internet and new digital media.
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BPI wants ISPs to shut accounts
The British music industry has called on Tiscali and Cable & Wireless to suspend 59 web accounts in a bid to stamp out "industrial-scale" illegal music file sharing. Until now, the BPI has concentrated its efforts on individuals, pursuing legal action against 139 uploaders.
"We have demonstrated in the courts that unauthorised file sharing is against the law. We have said for months that it is unacceptable for ISPs to turn a blind eye to industrial-scale copyright infringement," said the BPI chairman, Peter Jamieson. "We are providing Tiscali and Cable & Wireless unequivocal evidence of copyright infringement via their services. It is now up to them to put their house in order and pull the plug on these people," he added.
The BPI said it has identified 17 Tiscali IP addresses and 42 Cable & Wireless addresses that have been used to upload significant quantities of music owned by its members.
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Ozzy telcos will build own net
Australia's smaller fixed-line telecommunications carriers on Monday threatened to build their own A$4.1bn ($3bn) high-speed broadband network unless Telstra quickly reveals its own plans. In an unprecedented display of unity, Telstra's nine main fixed-line rivals proposed the industry build a shared network, possibly in partnership with private equity or other financial investors. The initiative comes as Telstra is locked in discussions with regulators over access terms for its competitors to a high-speed broadband network that it plans to build on its own.
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Video-sharing site Guba has signed its second distribution deal with a major studio in less than a month, Sony Pictures has agreed to offer a 100 of the studio's feature-length films on Guba. Warner Bros. Entertainment began selling 200 movie titles on Guba two weeks ago.
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Matsushita Electric, the maker of Panasonic brand electronics hopes to start selling the world's largest plasma television by early next year, reports Reuters. Measuring 2.4 metres by 1.4 meters and weighing 215 kg, the panel is bigger than a double-sized mattress and almost as heavy as an upright piano. The world's largest consumer electronics maker has yet to set the price but Matsushita's 65-inch plasma TVs, its largest available now, sell for about $7,500 in Japan. The plasma panel used in the Matsushita TV will be just one-inch larger measured diagonally than a 102-inch model developed by Samsung.
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Triveni and National Datacast Joint Solutions
Triveni Digital, the provider of systems that enable the management and distribution of data and metadata in digital television streams, and National Datacast, the leader in nationwide wireless content distribution over broadcast television signals, have partnered to jointly develop and offer data broadcasting solutions. The companies' solutions are expected to accelerate the market acceptance and deployment of new services based on the availability of a high bandwidth, nationwide content distribution network. Applications include digital signage, education, push VOD and the delivery of business and entertainment content to a variety of receiver platforms. The collaboration combines a secure, proven distribution platform with access to National Datacast's nationwide network of digital television stations.
"National Datacast and Triveni Digital bring a set of complementary assets to the market. Our combined expertise will support a number of innovative new services and generate data broadcasting business opportunities," said Mark Simpson, President and CEO of Triveni Digital, Inc. "National Datacast's leading, nationwide, digital broadcast infrastructure enables these new products and services to be deployed."
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Li sells PCCW stake
AOL to go free?
South Africa confirms plans for DTT rollout
Telefonica in a broadband mobile deal with Inmarsat
Most will pay to avoid ads
Services more important than speed in broadband
Multimedia Polska Selects Minerva Triple play services extend to 370,000 homes throughout Poland
Li sells PCCW stake
Pacific Century Regional Developments Limited (“PCRD”) has announced the sale of its 22.66% stake in PCCW to Fiorlatte, a company presently wholly owned by Francis Leung, for a total consideration of approximately HK$9.2bn (US$1.2bn) or HK$6.00 per PCCW share.The transaction is conditional on the approval of PCRD shareholders at an EGM; obtaining the requisite regulatory approvals; and the lapsing or withdrawal of the scheme of arrangement by TPG Newbridge to acquire the publicly held shares of PCRD. A deposit has already been received and the remaining consideration will be paid in three tranches, with the first payment, amounting to about 30% of the consideration, due no later than 14th December 2006 and the remaining two payments within 18 months thereafter.
Richard Li, acting through his wholly owned company Pacific Century Diversified Limited, will fund a cash payment of between approximately 33 and 38 HK cents per share to the minority shareholders of PCCW. This payment will be made to minority shareholders who are on the register at a record date that will be announced in due course.
Totaling HK$1.38bn (US$177m), this payment represents the entire difference attributable to the Pacific Century Group’s 75% interest in PCRD between the price of HK$6.00 realised in the above transaction and the PCCW share price of HK$4.80 as of market close on Friday 16 June 2006.
Richard Li also intends to resign as Chairman and step down from the Board of PCCW on receipt of the first payment from Leung.
Leung’s bid comes as Australia’s Macquarie Bank and TPG Newbridge have been locked in a bidding war for PCCW’s telecommunications and media assets for more than three weeks. Macquarie has offered $7.3bn while the US buyout fund has offered $7.55bn for PCCW’s main assets. Both bids have faced oppositions from Beijing-based China Netcom, PCCW’s second largest shareholder.
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AOL to go free?
Time Warner is said to be favouring a plan to shake up its AOL division by offering its services, including e-mail, free to users who have high-speed internet access. If the proposal was adopted, the company has predicted that more than one-third of its 18m subscribers could drop their $25.90 monthly subscriptions, costing it as much as $2bn in annual revenue. Part of that cost would be offset by job cuts in the group’s sales and marketing departments.
The plan recognises an ongoing defection of the dial-up subscribers who supply 80 per cent of AOL’s revenues to high-speed internet services offered by competitors. Since peaking at more than 26m in late 2002, AOL’s subscriber list has dropped to 18.6m.
At the same time, AOL has begun to experience a surge in online advertising. It grew 26 per cent in the most recent quarter to $392m, although AOL still trails rivals Google and Yahoo by a wide margin. AOL entered into a partnership with Google last year. It has also raised the amount of free content in recent months to draw more traffic.
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South Africa confirms plans for DTT rollout
Rollout of DTT will begin in South Africa by 2008, two years before the
country hosts the next World Cup tournament. Publicly-owned transmission company Sentech will invest 1 billion Rand (E110m) in upgrading the existing broadcasting system for digital signals. Acting COO Frans Lindeque confirmed that rollout of DTT would begin in metropolitan areas by 2008, adding that carriage of 12 HDTV channels would be possible by 2010. DTT set-top boxes are expected to retail at around 500 Rand (E55).
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Telefonica in a broadband mobile deal with Inmarsat
From David Del Valle in Madrid
Spain's Telefonica has signed a deal with Inmarsat, the leading provider of mobile communications via satellite, to offer broadband mobile telephony around the world.
Following the agreement, the telco's subsidiary Telefonica Wholesale will distribute Inmarsat's BGAN service (Broadband Global Area Network) allowing its world wide users to enjoy voice and broadband services through the mobile phone, users will be able to make telephone calls, send e-mails and access the Internet up to 492Kbps.
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Most will pay to avoid ads
In a recent survey conducted by DIGDIA, viewers were forced to rank the following – would they prefer VOD without ads for $3.99 or with ads for $2.99. They were also given the choice of watching it on their television or to download and watch it on their PC. Finally, they were given the choice of simply buying the DVD. 44% of the respondents picked watching the movie on their television without ads for $3.99.
Only 17% picked watching it on their television with ads for $2.99. Over 250% more people would rather pay an extra dollar just to avoid ads with their movie. In fact, more people picked buying the DVD over watching ads. 27% picked buying a DVD as their first choice.
Only 9% picked downloading and viewing a movie on their PC without ads for $3.99. Just a mere 3% picked viewing the movie on their PC with ads for $2.99. Again, the survey shows a similar ratio between those that would pay more to avoid ads over those that would prefer a discount.
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Services more important than speed in broadband
The Yankee Group survey captures consumer attitudes to emerging services and technologies. Broadband service providers (BSPs) are becoming a trusted source for value-added content and services as well as home networking equipment. Two-thirds of broadband consumers purchase multiple services from the same provider, with nearly one-third buying three products.
Advertised access download speeds are losing relevance as overall bandwidth availability increases and the focus of broadband shifts more toward content and services. At least one-quarter of broadband consumers now use internet telephony, while one in 10 has a VoIP handset. "European broadband consumers' willingness to pay for more than access is reaching a plateau," said Jonathan Doran, Yankee Group Broadband & Media Europe senior analyst. "Fostering customer relationships by adding valued services, increasing premium security options and exploiting trends in digital TV services will be key for players to differentiate from their competition and grow their customer base."
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Multimedia Polska Selects Minerva Triple play services extend to 370,000 homes throughout Poland
Minerva Networks, a leading provider of open-platform IP Television (IPTV) delivery systems, announced that the company's iTVManager middleware has been chosen by Multimedia Polska (MMP) to power a new deployment of IP television. Services will be offered in four cities throughout Poland including Kutno, Mielec, Brzesko and Debica.
Multimedia Polska is the largest operator to have introduced the triple play
for subscribers in this region, both on its cable and now public switched
telephone (PSTN) networks. This deployment will extend triple play services
beyond analog cable to the company's telecommunications subscribers reaching
a combined total of 370,000 homes.
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Business “optimistic” for IPTV
Taiwan’s PTS receives digital boost
Kids study explores mobile TV use
Trio team up to assist channel launches
Imagina becomes Spain's largest production TV company
Verimatrix gains Moscow IPTV deploymentBusiness “optimistic” for IPTV
A wide-ranging survey conducted by management consultancy Accenture and the Economist Intelligence Unit (EIU) has revealed that confidence is not high among industry executives that IPTV will deliver significant revenue over the next year, as subscription fees are high and only 22 per cent of survey respondents believe their firms in the industry have their marketing and pricing strategies in place.
There is, however, longer term optimism: 34 per cent of surveyed executives believe IPTV will be generating “significant revenue” three years from now, and another 57 per cent are at least “somewhat confident” that this will be the case.
The survey involved 302 executives of technology and media firms that are involved in or close to the IPTV business such as content providers, telecom equipment manufacturers, telecom service providers, network operators, among others.
Few companies expect a substantial impact on their bottom line from IPTV alone in the short term. Rather, most see the larger impact being on top-line growth; network operators also expect IPTV will drive the take-up of broadband access connections and help reduce customer churn.
According to the report, content is critical to network operators’ business model. While many operators are currently acquiring content, the largest proportion of respondents say distribution rights of ownership will be the primary means of sourcing IPTV content over the next year.
Video-on-demand is expected to be the chief money-generator among different IPTV services, both today and over the longer term and there is little consensus on other likely revenue sources. Advertising is conspicuously overlooked by respondents as a potential money-earner. A lack of compelling content and quality-of-service problems are viewed as the chief hurdles to consumer IPTV adoption over the next year.
Taiwan’s PTS receives digital boostTaiwan's legislature has granted the local Public Television Service US$137.38 million for the construction of terrestrial digital broadcasting platform.
The budget will support projects on high-definition TV (HDTV), Single Frequency Network (SFN), DVB-H mobile TV, newsroom automation, non-linear post-production network, and digital archive.
With a budget of $85.94 million for constructing the HDTV transmission network, studios and post-production suites, Taiwan will be able to commence its HDTV service at the end of 2007, just in time for the Beijing Olympic Games.
Another US$30.89 million was allocated for the common transmission platform for the second Single Frequency Network (SFN).It is expected that HDTV and second SFN infrastructure will be constructed at the same time, to reduce costs.
PTS will also produce mobile content and conduct DVB-H trials with both mobile network operators and handset manufacturers to test interoperability issues and interactive services.
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Kids study explores mobile TV useA study of mobile phone use amongst 10-12 year olds has explored the developing role of mobile TV in children’s lives. Research and marketing strategy firm Quaestor carried out its own study in June ahead of the company’s participation in the Showcomotion Children’s Media Conference.
Quaestor’s Shazia Ali of said: “It’s clear from our research that mobile TV is the next big thing that children will adopt and add to the repertoire of technologies they already use. However, it will not replace traditional TV viewing just as listening to music via mobiles has not replaced MP3 players but rather provided another channel through which to enjoy it.”
The study highlighted a strong emotional attachment to phones even at this young age. They were seen to give users independence, freedom and security and helped create the social environment in which children live.
Mobile ownership increased with age and, although there were no major differences in behaviour and attitudes between boys and girls, they did each show a preference for different potential content with sport more popular amongst boys and soaps more popular with girls. Entertainment channels such as E4 were equally popular.
Shazia Ali suggested that two challenges facing producers and distributors were content and duration. “Current viewing patterns reflect children’s desire for short and snappy, humorous content which can be shared with others. Cartoons, music videos and sports highlights are the real favourites whereas longer programmes like soaps represent a greater challenge via this medium.”
“The key watchwords in mobile TV usage amongst children are convenience and choice,” she continued. “Kids love the idea of being able to catch up on soaps and programmes like Big Brother so they don’t feel left out in peer group conversations. They expect the same range of mobile channels as they watch at home and especially want to access their favourite programmes from their phones.”
A further concern for mobile TV content developers flagged up by the study is the need to reassure parents on security and safety. Although choice and freedom appeal to children, these same factors are a concern for parents. In this respect, there may well be lessons to learn from the online industry in areas such as restricted access.
Findings from the study helped develop a conclusion that ultimately the future of mobile TV will enhance the current role of mobile phones amongst children in respect of facilitating social networking and offering an exciting new way to watch their favourite programmes.
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Trio team up to assist channel launches
Three companies active in various aspects of the television business - NOB Studios, S4M and B4M - are launching a new service aimed at allowing would-be broadcasters to operate specialised TV Channels without investment.
The venture - RENT-A-CHANNEL – is designed to be a one-stop business, covering production, post-production and playout to topics such as content management, programme planning, licence management, air-time sales and ratings analysis.
Instead of investing a lot of money, the trio envisage that contractors just engage the services of RENT-A-CHANNEL - the TV Station can be operated without start up investments.
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Imagina becomes Spain's largest production TV company
From David del Valle in Madrid
A merger between MediaPro and Grupo Arbol has given rise to a new holding company, Imagina, which has become the largest production TV company in the country.
Shared by the British advertising company WPP, with a 20 per cent stake and Mediapro and Grupo Arbol, with 40 per cent each, Imagina plans to end the year with a turnover of E400 million, 33 per cent more than the total revenues separately declared by the two Spanish groups.
With a staff of more than 2,000 people, Imagina is the leading shareholder in the new commercial channel La Sexta and plans to invest E250 million in new projects, including TV productions.Imagina's operations include the production of TV contents, the management, production and distribution of films and sports events and the transmission of TV signals, as well as some other technical services.
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Verimatrix gains Moscow IPTV deployment
IPTV content protection specialist Verimatrix is working with Russian systems integrator CTI to secure the content of Central Telegraph's IPTV service for Moscow and the Moscow region. The Verimatrix software-based VCAS content protection system enables Central Telegraph to satisfy all the security demands of content owners when obtaining rights to early-release movies, popular series and other premium content such as sports coverage.
The service roll-out, which will be made available to Central Telegraph's 60,000 broadband Internet subscribers, will be completed by October 2006. The IPTV service will offer interactive television services such as video on-demand, premium channels, Information and interactive services as well as traditional broadcast and multicast TV and radio channels.
"In the IPTV industry today, access to compelling content is the lynchpin on which services thrive or fail," noted Steve Oetegenn, EVP Global Sales and Marketing for Verimatrix. “By employing the most advanced content security, release windows for video on-demand materials will ultimately move closer to the theatre release date, making the content even more attractive to subscribers."
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