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Tuesday

Friday 15th September

Universal blasts user content sites
BT launches user content service
Mobile adult content: £1.44bn by 2009
Mediaset 1H net profits down 22%
Comcast HD Initiative
MPEG Encoder Market in Major Transition
Solid results at PCCW
South Korea to spend US$6 million on IPTV trial
MDTVA implementation guidelines



Universal blasts user content sites

Universal Music, the world's biggest record company, is stepping up the pressure on YouTube and MySpace, accusing them of infringing the copyrights of its artists music videos. Universal CEO Doug Morris described the sites as "copyright infringers". "The poster child for (user-generated media) sites are MySpace and YouTube," he told journalists in New York. "We believe these new businesses owe us tens of millions of dollars." He added, "how we deal with these companies will be revealed shortly."

Universal, part of French group Vivendi, has been in negotiations with both YouTube and MySpace over fees for use of its artists videos. The two sites declined to comment. To date, YouTube has said it will take down any copyrighted material illegally posted on the site once it has been alerted by the rights holder. Earlier this year YouTube was ordered by NBC to remove illegally posted clips of some of its television shows, though in June the companies agreed to feature some of NBC's shows legally on the site.

Record companies are keen to avoid repeating the mistake they believe they made when MTV was set up 25 years ago -- allowing their artists music to be aired for free. Morris reportedly said MTV "built a multibillion-dollar company on our (music) for virtually nothing. We learned a hard lesson."

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BT launches user content service

BT has unveiled plans to launch a podcasting site. It has teamed up with two US entrepreneurs whose Podshow Network has won an audience of millions. Together, they will launch a UK version called BT PodShow. Podshow now has 60,000 podcasts featuring video and music - some made by amateurs, other by established media companies. Adam Curry, co-founder of Podshow, said "everyone has the right to express themselves creatively - over the past year we have helped many people in the States to become media stars".

BT says the UK version will be inviting individuals, established artists and mainstream media companies to contribute material. The best of the content may then be featured on BT Vision, the new broadband television service the telecoms company is promising to launch this autumn.

Podshow claims to be a slightly different concept to YouTube, aiming to feature more crafted content and promising advertising deals to those who can win a big audience for their podcasts.

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Mobile adult content: £1.44bn by 2009

Juniper Research says the adult content market for mobiles will reach £1.44bn (E2.08bn) by 2009. And it predicts by 2011 video will make up 70 per cent of the market and text services – dominant today – will have virtually disappeared.

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Mediaset 1H net profits down 22%
From Branislav Pekic in Rome

Italian private broadcaster Mediaset reported a profit of E332.5 million for the first half of 2006, down 22.1 per cent on the same period last year, due to a drop in government-sponsored advertising and the World Cup that guaranteed increased profits to rival Rai.

Revenue was up slightly from E1.471 billion a year ago to E1.472 billion. Mediaset also saw a dramatic increase in operating costs, as it chased new advertisers and paid to develop and license new programming. TV advertising revenue reached E1.576 billion, down 1.4 per cent on the first half of 2005. Mediaset’s TV networks confirmed the leadership position among viewers aged 15-64, that represent 70 per cent of the Italian population and 80 per cent of advertising investments.

On the digital terrestrial front, during the first half 2006 Mediaset sold around 511,000 new rechargeable pre-paid cards for its Mediaset Premium pay-per-view service and around 1,400,000 recharges.

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Comcast HD Initiative

Comcast is to offer 100 hours of high-definition video-on-demand (HD VOD) programmes on its signature ON DEMAND service. As part of this initiative, Comcast announced that at least 20 high-definition movies from Starz Entertainment will be available each month.

Comcast's HD VOD rollout comes as video-on-demand usage is soaring, with customers viewing more than three billion ON DEMAND programmes since 2004 and clamouring for more HD programming on demand. In a recent survey of 200 cable customers with HD service conducted by ICR (International Communications Research) for Comcast, nearly 80 percent of respondents said they prefer to watch high-definition programs on their terms, not when the shows air on a traditional television schedule. When asked to identify the importance of types of programming in HD, customers listed their preferences as: Primetime broadcast network shows (65 per cent), Premium channel movies and series (62 per cent), National sports (61 per cent), Local sports (58 per cent).

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MPEG Encoder Market in Major Transition

The market for real-time broadcast MPEG encoders is moving to H.264 (MPEG-4
AVC Part 10), mainly in the satellite and telco TV delivery platforms, but the switch will extend to all segments of the MPEG encoder market, reports In-Stat. The need to repurpose content for multiple screens is also driving encoder shipments. For example, content that is distributed in MPEG-2 may be decoded, and then
re-encoded to H.264 in a mobile video system.

"There are also one-time projects that are dramatically boosting some
segments of the market," says Michelle Abraham, In-Stat analyst. "For
example, cable operators in North America are moving to digitally simulcast
all of their analog channels, thereby requiring thousands of encoders. The
Broadcast Auxiliary Service (BAS) relocation project in the US will boost
encoder shipments from 2006 through 2009."

In-Stat found worldwide MPEG video encoder revenue will increase from $496 million in 2005 to $555 million in 2010.

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Solid results at PCCW

PCCW Limited announced positive results for the first half of 2006, saying it reflecting a continued recovery in its core business as well as significant growth in its pay TV operations and an increased contribution from its property subsidiary. Consolidated revenue was up 21 per cent at HK$14,124 million and consolidated EBITDA was up 13 per cent at HK$3,652 million.

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South Korea to spend US$6 million on IPTV trial

To be eligible for the market trial, which will be conducted between November and December this year, service providers need to be fully equipped with their own IP communications hardware. "It's open to broadcasters, communication companies, and anybody who has the network capability to run the trial service project," a government spokesperson said. Industry experts are expecting most Korean service providers to participate in the trial. In particular, local telcos running TV portal services--essentially customised video-on-demand offerings--are already gearing up for the IPTV market.

Korea Telecom (KT) has said it will commit 80 percent of its US$50 million IPTV budget toward the trial.

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MDTVA implementation guidelines

The Mobile Digital TV Alliance (MDTVA) announced that its members have approved the first set of implementation guidelines. It says this reference set will assist operators, device manufacturers, and others across the industry with the implementation of DVB-H as a standard for mobile digital TV in North America. The MDTVA is committed to driving DVB-H technology in North America.


The guidelines are intended to facilitate interoperability among the many mobile digital TV solutions by defining a practical and extensible methodology consisting of DVB-H implementation processes and common functional elements that the industry can adopt.

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Thursday 14th September

Movies confirmed for iTunes
DSL Forum unveils next-gen blueprint
VOD market tipped to near $13bn
Free to deploy FTTH
Nortel, TELUS team up for multimedia Infrastructure
New services and content to boost European broadband growth
Servecast scores West Ham deal
ADB wins Czech IPTV deal
BT, ZTE to deliver 3G/DAB-IP
Ondas prepares for Euro satellite launch
DTT, satellite, internet, telephony and HDTV in a single box
Sonera expands mobile TV service




Movies confirmed for iTunes

In finally announcing enhancements to its iTunes service and iPod device, Apple confirmed expectations that it would start to offer movie downloads. iTunes 7 sports new features such as the new album and Cover Flow views of music, TV shows and movies, enabling users to find titles in their library quickly as well as casually browse through and re-discover titles they already own.

In addition, the iTunes Store is now offering over 75 movies from Walt Disney Pictures, Pixar, Touchstone Pictures and Miramax Films, that customers can purchase and download to watch on their computers and iPods, and soon on their flat screen televisions with Apple’s upcoming iTV player – currently dubbed ‘iTV’. Movies will become available on the iTunes Store the same day they are released on DVD, with new releases priced at $12.99 when pre-ordered and during their first week of availability, and $14.99 thereafter, and library titles available for just $9.99 every day.

"Here we go again! First music, then TV shows, and now movies," said Steve Jobs, Apple’s CEO. "In less than one year we’ve grown from offering just five TV shows to offering over 220 TV shows, and we hope to do the same with movies. iTunes is selling over one million videos a week, and we hope to match this with movies in less than a year." In order to enhance the video experience, the new iPod features a 60 per cent brighter and more vibrant 2.5-inch colour display. "The world’s best digital music player has evolved into the world’s most popular portable video player too," claimed Jobs.

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DSL Forum unveils next-gen blueprint

International telecommunications industry consortium the DSL Forum has unveiled an initiative to fuel the growth of next-generation broadband services. Taking into account the variety of ways people are beginning to enjoy ‘quadruple play’ services – voice, video, data and mobile – the new BroadbandSuite initiative expands the DSL Forum’s mission beyond DSL to address interoperability and management across DSL, fibre and alternative broadband technologies.

"The DSL Forum serves as the catalyst for developing critical standards necessary for the delivery of DSL and integrated services across the globe," said Matt Davis, Director, Consumer Multiplay at IDC. "Companies not normally associated strictly with DSL, such as consumer electronics vendors and home networking companies stand to benefit as the DSL Forum evolves in order to create the technological underpinnings necessary for the delivery of voice, video, and multimedia over DSL and other broadband technologies."

"Our BroadbandSuite initiative clearly reflects the DSL Forum’s commitment to stimulate greater opportunities for the broadband industry as well as even better value for consumers," said Michael Brusca, chairman and president, DSL Forum.

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VOD market tipped to near $13bn

Taking into account the arrival of such heavyweights as Apple and Amazon.com into the Video-on-Demand (VOD) market, iSuppli Corp. is predicting the global VOD market will grow to nearly $13 billion by the year 2010.

VOD growth will be driven by various delivery systems, including IPTV, broadband/Internet and networks run by cable and satellite operators. While 2006 will be a banner year for the VOD market, iSuppli suggests that the real explosive growth will begin in 2008 when these delivery systems begin to mature. By 2010, the global VOD market will generate more than $12.6 billion in revenue, up from $1.7 billion in 2006.

Global IPTV equipment deployment, a growing breadth of movie content, the ability to ‘download and burn’ content, the increasing availability of consumer electronics equipment with IP connections and a rising mobile-phone television market will contribute to the rapid acceptance of VOD. Such growth has interested a multitude of companies across many industries.

"This sets the stage for an epic battle among cable, satellite, IPTV and new broadband video operators," said Mark Kirstein, vice president of multimedia and content services at iSuppli. "As users expect more interactivity and a greater personalization in their services, VOD is among the key technologies that will address the changing behaviour of television audiences."

Kirsten added that the impact of VOD could stretch well beyond remaking the television landscape, with its potential to replace a significant portion of DVD rental and retail sales and the possibility it could decimate the movie theatre’s monopoly on first-run films. Kirstein said. "It’s almost a certainty that 15 years from now, the business of direct DVD sales or physical DVD rentals will dwindle to be a fraction of today’s market—at best."

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Free to deploy FTTH
From Sotires Eleftheriou in Paris

French triple play ISP Free is to deploy an optical fibre network in the Paris region. It aims to launch a commercial very high speed service before the middle of 2007 for E30 a month, the same price as its existing triple play ADSL service.

Michael Boukobza, Free's general manager, said the initiative represented a break with the group's strategy. The aim is to replace ADSL 2+ with fibre in selected zones, making Free fully independent of France Telecom. The group will invest E1 billion by 2012 in the technology, using the group's own liquidity and cash flow. The average cost per subscriber for migration to FTTH should be about E1,500, but costs should drop. Cash payback is about six years but could drop to four years if Free achieves 25 per cent market penetration within three years.

The speed of the new service will be a guaranteed 50 Mbit/s, compared to the current ‘up to’ 28 Mb/s for ADSL 2+ which is only achieved in ideal conditions.

Free will also propose a basic service (incoming and emergency calls and basic television) free of charge (although a returnable deposit will be charged) to collective dwellings. Free's budget for this project is E10 million. It could then offer an upgrade to triple play or rent the infrastructure to other operators.

Last year France Telecom announced it was to start its own pilot FTTH trial in carefully selected areas.

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Nortel, TELUS team up for multimedia Infrastructure

Communications services specialist Nortel is to work with Canadian telco TELUS to integrate advanced multimedia and communications products from across the industry into TELUS’ IP services as they emerge. The TELUS IPTV deployment is the latest investment in a programme that has seen the company invest more than C$1 billion in wireline broadband infrastructure since launching its high speed Internet service in 1997.

"TELUS is working closely with Nortel to create a unique communications and entertainment experience for our customers that we call the Future Friendly Home," said Ibrahim Gedeon, chief technology officer, TELUS.

"We are working with TELUS to create an open, standards-based IPTV network that uses best-in-class products from across the industry," added Dietmar Wendt, president, Global Services, Nortel.

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New services and content to boost European broadband growth

New services and content such as mobility, quad-play and high-end video services will be the main growth drivers of European broadband networks, according to a detailed study from international strategy consultants Arthur D Little. Plain speed or bandwidth of broadband facilities will no longer be the decisive factors in the development of broadband, says the report - Next Generation Networks in Europe - Broadband in 2011 and beyond. European investments towards so-called Next Generation Networks will be driven mainly by fibre-rich cable operators with Wideband DOCSIS and incumbent telecom operators with VDSL technology.

According to Arthur D Little, plain speed will become a commodity. Towards 2011 European consumers are expected to demand ever-increasing flexibility to create their own multimedia service bundle anytime and anywhere at affordable prices. This requires converged, multi-mode access platforms (fixed and mobile) and seamlessly integrated services of very high quality, such as bundled (video) telephony, personalised audio/video services and high-speed internet access.

In order to meet this change in consumer demand, current European broadband networks need to evolve into what Arthur D Little defines as Next Generation Networks (NGNs). - very high bandwidth networks with architecture for further growth. This evolution towards NGNs is driven by value-added services such as mobility (anywhere, anytime), quad-play (video, Internet, fixed-line and mobile telephony) and high-end video content services (interactivity, VOD, HDTV) rather than speed.

Market supply of bandwidth continues to outpace consumer demand The report projects that by 2011 broadband Internet penetration in all European households (including laggard countries) will be between 80 per cent and 90 per cent, regardless of developments within the industry. Moreover, the capacity of the main broadband networks will be more than sufficient to meet consumer demand; therefore, the market will focus on converged services and content.

Arthur D Little does not consider a single technology as being universally superior to others in providing future broadband products and services. The competitive advantage of one technology versus another will depend on the usage scenarios. Fibre-rich HFC cable networks with Wideband DOCSIS technology have strengths in high bandwidth broadcasting services with add-on interactive IP services, whereas the xDSL technology has the largest footprint in Europe (though not in the US or India) when positioned as a basic IP access infrastructure supporting on-demand services.

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Servecast scores West Ham deal

New media sportscasting solutions provider Servecast has secured a broadband subscription streaming service for a further English Premiership football club, West Ham United. The service, West Ham United TV (WHUTV), went live in August 2006 and will show a live webcast of the club’s UEFA Cup game against Palermo. Servecast also provided a series of live broadband video coverage of preseason friendly matches for Manchester United, Liverpool, Chelsea and Arsenal.

Servecast has secured an exclusive five year contract to provide broadband streaming for West Ham United which will see the provision of broadband subscription audio and video service called WHUTV for all ‘Hammers’ fans. WHUTV will offer live and archive match coverage, highlights and behind the scenes coverage and is available to subscribers on monthly basis for £4.99 or annually for £44.99. To protect the terms of rights deals, Servecast will implement its digital rights management and geo-blocking solution to prevent viewers in unauthenticated regions from viewing live match coverage online. The entire broadband viewing and subscription platform is set up by Servecast. This includes the creation of a West Ham branded viewing console and microsite, the creation of a payment interface and the set up of security systems.

Scott Duxbury, Commercial Director of West Ham United said that with the growing penetration of broadband, people wanted more services and more content available online and were willing to pay for it. Darach Deehan, CEO of Servecast suggested that all sports organisations and clubs including the Premiership clubs were recognising broadband video was a serious fan expectation and they are also realising the real potential to grow revenues from broadband video services.

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ADB wins Czech IPTV deal

Digital TV systems and software solutions supplier Advanced Digital Broadcast (ADB) has won a major contract to supply its hybrid ADB-3800TW, high definition (HD) ready, IPTV/DTT set-top boxes to Telefónica O2 Czech Republic (previously Cesky Telecom) for the roll-out of IPTV television services. This new service will be the first of its kind in the Czech Republic.

Michal Zilka, Content and Business Development Executive Director of Telefónica O2 Czech Republic, said the operator anticipated "a phenomenal interest from both new and existing customers for our unique and pioneering service, which will combine traditional voice and broadband services with the benefits of digital television, all delivered over an IP based network".

ADB has already commenced delivery of its ADB-3800TW units to Telefónica O2 Czech Republic and will ramp-up volume during H2 2006.

Separately, ADB announced that it has won an order to supply its ADB-3800T digital terrestrial set-top box (STB) to Telecom Project 5 (TP5) for the launch of digital terrestrial television services in Russia.

In accordance with the Government’s requirement for digitalisation of radio and television, TP5 was contracted to specify, develop and launch new digital networks for the distribution of cable, satellite and terrestrial television services throughout Russia. ADB has been selected to supply set-top boxes for the first phase of roll out on the terrestrial platform.

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BT, ZTE to deliver 3G/DAB-IP

BT has signed an agreement with telecommunications equipment and network solutions provider ZTE to develop the world’s first 3G mobile handset compatible with BT Movio’s wholesale mobile entertainment service.

The new phone will enable 3G mobile operators to offer BT Movio’s broadcast mobile TV and DAB digital radio service, designed for live, mass-market channels, alongside existing video-on-demand services and niche channels over their 3G networks.

The agreement closely follows the commercial launch of BT Movio in the UK, in which BT Movio was confirmed as the first wholesale service in the world to offer a service consisting of mobile TV, DAB digital radio, 7-day programme guide and ‘red button’ interactivity for mobile phones.

ZTE will develop and supply multi-mode 3G/DAB-IP enabled handsets to further extend the portfolio of devices capable of supporting the BT Movio service.

Emma Lloyd, managing director, BT Movio said that with the introduction of the first 3G mobile device capable of supporting DAB-IP, BT would be in a strong position to extend the BT Movio wholesale proposition to 3G mobile operators in the UK.

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Ondas prepares for Euro satellite launch

Satellite media company Ondas Media has moved a step closer to launching a European satellite radio service by awarding a contract to design and develop the core RF and Waveform approach to The Fraunhofer-Gesellschaft Institute (FHG), Germany.

The multimillion Euro FHG contract - which follows recent statements that Ondas has partnered with Delphi Corp. as a strategic investor and technology provider - will ensure Ondas has key systems engineering support throughout the product development lifecycle of its state-of-the-art satellite media system.

Celso Azevedo, CEO of Ondas, suggested that deals such as with FHG and Delphi were bringing together all the highest calibre providers to deliver Ondas’s vision of a full subscription-based, advertising-free satellite radio, video and data service for Europe in 2009. "Since its launch four years ago in the US, satellite radio has grown from zero customers to over 9 million paying subscribers at the end of 2005." noted Azevedo. "Ondas plans to bring the same superior quality, content and availability of satellite radio and media which has proved so popular in the US, to European consumers in the next three years."

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DTT, satellite, internet, telephony and HDTV in a single box
From Branislav Pekic in Rome

Italian company Società per l’Innovazione Digitale (SpID) has produced a device that includes digital terrestrial, satellite, broadband Internet, VoIP as well as a 300 GB hard disk. The Media Center MC:01 has been developed in collaboration with Italian research institute CSP.

Based on Omegabox technology and open source software, the MC:01 enables the user to enjoy a personalised TV experience, recording his preferred TV programmes directly from digital, satellite or terrestrial TV or by downloading them from the Internet; listen to music, set up a media archive by using file sharing and peer-to-peer services.

Production will start in October at SpID’s factory in the Northern Italian region of Valle d'Aosta. The company is promising to add high definition TV capability to the box by the end of the year. The MC:01 should retail for E900-1000.

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Sonera expands mobile TV service

Finnish telco Sonera is expanding the TV offering provided to mobile customers by introducing the financial news of Kauppalehti to MobileTV as a separate channel. Sonera MobileTV can be viewed on 3G phones in 3G networks, and on smart phones in the GSM network as well. In April 2006, Sonera launched a pilot in which TV broadcasts can be viewed on advanced mobile phones.

According to Senior Vice President Juha-Pekka Wecktström, Sonera has a strong belief in the attraction of different supplementary services on both the mobile and the broadband market. "We develop new products simultaneously for new mobile devices and to high-speed broadband environments. The choice of where and how to use the services rests with the customers."

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Wednesday 13th September

AT&T announces Broadband TV Service
Vodafone to Enter Broadband Market with BT
Traditional US Media Companies Boosted by Online Advertising
TiVo releases HR Video Recorder
Australia sets out DTT auction plans
Apple and eMusic go to war
DSL Appoints New Chief




AT&T announces Broadband TV Service

AT&T, the biggest US telecommunications group, is to launch an Internet TV service that will enable subscribers to view a selection of live and streamed TV channels on their PC over any wired or wireless broadband connection for $20 a month.

The browser-based service, dubbed AT&T Broadband, will be the first of its kind in the US. The US carrier has teamed up with California-based mobile TV content aggregator MobiTV to deliver the service.

"The AT&T Broadband TV service is part of our 'three screen' [phone, PC and TV] initiative," said Doug York, AT&T's senior vice-president of programming. "It will enable our customers to watch live television programming beyond the TV screen, on a PC, when and where they want."

The launch comes amid an explosion of Internet-based video content services including user-generated video sites such as YouTube and Google Video, and TV and movie download services including Amazon'sUnbox, launched last week.

The AT&T Broadband TV service will initially have around 20 channels of live and made-for-broadband television content spanning national news, sports, entertainment and music videos.

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Vodafone to Enter Broadband Market with BT

Mobile phone operator Vodafone has said it is to enter the UK fixed-line broadband market after striking a deal to use infrastructure from BT. The contract means Vodafone does not have to invest in a fixed-line network of its own.

Vodafone say the move will enable its customers to benefit from bundled packages of mobile and broadband services nationwide. The company stated it hoped to offer a higher quality of service to customers.

A number of other mobile operators have begun offering bundled packages of services to their customers. Both Carphone Warehouse and BSkyB have announced cut-price broadband packages, but surviving in this marketplace is a challenge. Stiff competition in the sector prompted the UK's second-largest telecoms group, Cable & Wireless, to leave the retail broadband market recently.

Vodafone said it hoped to launch the new service before the end of the year.

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Traditional US Media Companies Boosted by Online Advertising

Traditional US media companies are increasing their share of the fast-growing online advertising sector relative to internet rivals, such as Google and Yahoo, according to a new study.

Veronis Suhler Stevenson (VSS), the private equity group, reports in its annual comprehensive study of the media business that this year, of the $22bn expected to be spent on online and mobile advertising in the US, traditional media groups' share is forecast to be 37 per cent, up from 23 per cent in 2000.

By 2010, when Internet and mobile advertising is due to reach $44bn, traditional media companies are expected to capture $17bn, or nearly 39 per cent, of the total.

James Rutherford, managing director at VSS, said: "There has been a lot of hand-wringing about media companies not making any money in the online world but what the data shows is that their position is better than we would have assumed. Traditional media firms have worked hard at finding ways to extend their reach online, and this is paying off."

Media companies such as Time Warner, News Corp, Universal, CBS, Viacom and Walt Disney as well as newspaper groups such as The New York Times and Dow Jones are all making digital expansion a priority.

It is still not clear whether traditional media companies will be able, in the longer term, to make as much money from online audiences as from their traditional audiences.

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TiVo releases HR Video Recorder

TiVo Inc. has commenced selling its latest digital video recorder which is capable of displaying high-resolution TV signals, as the recording technology company seeks new subscribers among buyers of premium home theatre systems.

TiVo, whose service remains popular despite tough competition from far larger cable and satellite providers, said its Series3 HD Digital Media Recorder will be available on the company's Web Site this week and in some electronics stores later this month.

TiVo marketing executive Jim Denney said the DVR, which boasts high-end features such as THX performance, which ensures quality and resolution, will eventually be able to download programs, perhaps like how songs are sold on Apple Computer Inc.'s iTunes.

The set-top box will have two tuners, so that cable TV subscribers can record two different shows in high-definition at once, while watching a third pre-recorded show. Users can save up to 32 hours of HD programming, or up to 300 hours of standard definition.

Subscribers will continue to pay around $13 a month, although a variety of pricing packages are available, the company said. The company has about 4.4 million subscribers, but only 1.5 million who do not subscribe to the DirecTV's satellite service run by News Corp.

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Australia sets out DTT auction plans
From Rose Major in Melbourne

Australia's digital-terrestrial services should become more attractive for viewers in 2007, with the government planning to auction of two sets of DTT spectrum "as soon as possible" next year.

Ten-year licences for channels A and B will be auctioned separately, with channel A reserved for in-home standard-definition services and channel B for "a wider range of uses" which could include emerging new digital services such as mobile TV. While in-home subscription TV services will be outlawed, the winning bidder for channel B could charge a fee for mobile services. Services must commence within 18 months of the licence allocation and the government claims the spectrum could be enough for up to 30 mobile TV channels "under some models".

One aspect of the proposed auction which has attracted some criticism is that free-to-air commercial networks Networks 7, 9 and 10 - will be able to bid for the channel B spectrum, although will be banned from bidding for channel A. They will, however, be allowed to provide content to either channel A or channel B.

"This strikes a balance between the objective of encouraging new operators in the digital television sector with the need to ensure that new services are sustainable and successful," a government statement said.

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Apple and eMusic go to war

The music download world is due for a showdown today as Apple unveils its latest scheme to stay top of the market and its biggest rival simultaneously launches across Europe.

Music fans this side of the Atlantic will now be able to sign up to eMusic, the world's biggest seller of independent music and No 2 behind Apple's iTunes in the digital download market, while Apple is expected to announce a film download service.

eMusic's songs can be used on all music players, including the iPod, and that is the big threat to Apple. According to eMusic, it has more than doubled its US market share this year so far, largely at the expense of Apple's iTunes service. Its plans are no less ambitious for Europe, according to its chief executive, David Pakman. Whereas iTunes users pay 79p (E1.15) a track, subscribers to emusic.com can get songs for as little as 17p each.

"We really do believe that with this launch the iTunes monopoly in Europe is over," the former Apple employee said. "We don't think Apple and iTunes is what customers want long term."

Apple has been undisputed No 1 in the digital download world since it pioneered mass-market music sales over the Internet. But industry experts say it could lose its crown as it battles against subscription services such as eMusic and new "free" sites such as SpiralFrog, due to start here next year.

As the major digital media players launch and counter-launch services and devices, the big winner is the consumer. Music fans are enjoying falling prices, a growing catalogue of songs and more choice in music players.

To counter this, Apple will end months of speculation and announce a movie download service via the iTunes website.

The US giant is coy on what the ‘It's Showtime’ launch will involve, but there is speculation it will include a line-up of revamped iPods on top of the movie service. Napster UK is also upping its game and has confirmed that it will give a free MP3 player to all new subscribers to its £14.95-a-month portable music service.

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DSL Appoints New Chief

The DSL Forum, an international consortium of more than 200 broadband providers and device manufacturing members, has appointed Robin Mersh as its new Chief Operations Officer.

The appointment of Mersh marks a new chapter in the DSL Forum's history. His appointment is aligned with the launch of the latest Forum initiative, which is designed to expand the scope of the Forum's technical work and engage the broader industry in aligned broadband specifications for growth and enhanced network transparency.

"Robin brings us a wealth of operational experience and industry knowledge," said Michael Brusca, chairman and president, DSL Forum. "His appointment will further support the DSL Forum in its expanding leadership role to create a global broadband market of excellence."

"I am excited to be appointed to lead the operations of such a distinguished, far-sighted and successful organisation. The DSL Forum is uniquely placed to take advantage of its leadership role in broadband standards and bring that into the world of next generation networks and services," said Mersh.

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Tuesday 12th September

Motorola and Nokia to ally for mobile TV interoperability
Telecom Italia to sell TIM?
NBC step up digital strategy
Restrictions on financial media in China
ONO cuts 800 staff
CLP TV to launch on November 25
Chellomedia in Sport1 win
TWTV partners with SeaChange
TI powers Konka IPTV STB
Irdeto joins forces with Huawei
Arqiva partners with Microsoft for mobile TV trials
ADB debuts French DVR
National Grid Wireless begins DAB-IP and T-DMB trial


Motorola and Nokia to ally for mobile TV interoperability
From Colin Mann in Amsterdam

In an effort to encourage greater adoption of broadcast mobile TV services and accelerate service deployment, Motorola and Nokia have announced that they will work to achieve interoperability among their DVB-H (Digital Video Broadcast - Handheld) enabled mobile devices and network services. The handset manufacturers will work together to support solutions based on open DVB-IPDC standards available for operator partners interested in deploying multi-vendor mobile TV services and trials in 2006 and onward.

"Operators around the world are evaluating broadcast mobile TV as a compelling new service to offer their subscribers - and interoperability will play a key role in bringing these services to market faster," said Rob Bero, Director of Broadcast Technologies, Motorola. "As a vocal leader in open standards, including DVB-H, we're pleased to be working with Nokia to deliver interoperable handset and network solutions that will help enable operators to offer the ultimate mobile TV experience for consumers."

Harri Männistö, Director, Multimedia Experiences, Nokia, noted that commercial mobile TV services were on the verge of launching in several markets across the world. "In order for mobile TV to be a true success, we need interoperable mobile devices and systems which deliver the best experience for consumers and enable enjoyable, live broadcast TV when and where it suits them, redefining prime times and television programme content. Nokia is happy to see that open DVB-H technology has and will have widespread support across the industry players, including Motorola and Nokia, in bringing mobile TV to market," he concluded.

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Telecom Italia to sell TIM?

Telecom Italia is restructuring its operation in a move that may lead to the sale of all or part of mobile arm TIM. Telecom Italia shares were suspended on Monday while discussion went on. TI may sell part or all of mobile unit TIM to focus the group on broadband and content. Last week came news of an alliance with Rupert Murdoch's Sky Italia.

A TIM sale, which could be worth E35 billion would represent a U-turn as TI bought back control of TIM last year after spinning it off in the 1990s.

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NBC step up digital strategy

NBC Universal is planning a rapid acceleration of its digital activities and aims to increase online revenues five-fold by 2009. The plans will centre on a redesign of iVillage, the women’s website bought for $600m in March. Bob Wright, NBC chief executive, told the Financial Times iVillage would become the cornerstone of the GE-controlled group’s online activities. The relaunch of iVillage, which attracts about 15m users a month, will add video and community tools, allowing its core audience of women aged between 30 and 50 to swap ideas and advice.

Wright said it would be tied much more closely to NBC’s television programmes, highlighting the opportunity for cross-branding. It will launch iVillage Live, a television show available on the site, which it will also offer to television stations in the NBC network. The site’s relaunch will target advertising revenues from the beauty, health and fashion categories, but may also include subscription elements.

NBC wants digital imedia to generate $1bn in revenues by 2009, up from $200m this year, and to generate margins of 35 to 40 per cent.

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Restrictions on financial media in China

China's government has issued more restrictions on foreign financial news as it also moved to bar international financial-information companies from selling directly to Chinese customers. The restrictions, announced by the Xinhua news agency, make it illegal to distribute articles that "undermine China's national unity, sovereignty and territorial integrity" and that "endanger China's national security, reputation and interests."

They also place curbs on access to a multimillion-dollar financial-information market for companies such as Reuters and Bloomberg, which currently sell directly to Chinese banks, brokerage firms and corporations. Chinese traders rely on this information to buy and sell financial products in global markets.

Under the new rules, Reuters and other companies will have to sell their products through the China Economic Information Service, an agency appointed by Xinhua.

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ONO cuts 800 staff
From David del Valle in Madrid

ONO is cut up to 800 jobs in a reorganisation designed to pave the way for an initial public offering (IPO) on the Madrid stock exchange in the first quarter of 2008.
ONO has invested heavily to establish itself as the country's leading
alternative operator. In July 2005 it entered into an agreement to purchase
rival Auna Telecomunicaciones (Auna TLC), part of the Auna Group, for E2.25
billion in cash and shares. The deal was completed in November 2005 and ONO
immediately began integrating Auna TLC's operations into its own.


CLP TV to launch on November 25

Canal de Língua Portuguesa (CLP TV), a satellite TV channel based in Paris and dedicated to Portuguese-speaking communities throughout Europe, will be launched on November 25.

CLP TV will offer general entertainment content 24 hours a day, including information, debates, movies, soaps, Portuguese language lessons, music programmes and sports. According to its director, António de Morais Cardoso, 80 per cent of the programming will be transmitted in Portuguese, while foreign programs will be subtitled.

The launch of the channel, initially planned for September, was delayed due to the change of studios, the increase of employees and shareholders. CLP TV is backed by a group of 30 Portuguese businessmen and will have correspondents in several European capitals. It will be based at the former headquarters of TV5 in Paris and will initially have a staff of 60.

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Chellomedia in Sport1 win

Chellomedia, the European based content division of Liberty has acquired majority ownership of 80 per cent in Sport1 in Central Europe through the acquisition of a further 55 per cent of Sport1 from its other current shareholder in a E43 million cash deal. Sport1 in Central Europe is a widely distributed premium value, sports channel active in Hungary, the Czech Republic and Slovakia, with a focus on football.

Chellomedia intends to grow the Sport1 activities in Central Europe by continuing a strategy of entering into new distribution agreements with existing TV platforms in these countries. Chellomedia’s strategy is to grow revenue streams of the business by launching new additional channels and by exploiting the variety of new media opportunities available to sports fans everywhere.

It was also announced the station has bought the rights to show all UEFA Champions League games.

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TWTV partners with SeaChange

Interactive TV specialist Two Way TV has been signed as the premier games development partner for SeaChange International. The partnership will enable SeaChange’s customers to benefit from Two Way TV’s expertise and popularity in the interactive games market, while Two Way TV will extend its reach in the European interactive games market.

Two Way TV will be the lead games developer for the new SeaChange TV Platform and integrated SeaChange TV Navigator Four middleware, which launches at IBC this week. TV Platform is an end-to-end IPTV solution, which enables operators to quickly launch quad play services with a rich menu of differentiated IPTV services. It has been specifically designed for the European market. Using the advanced game play functionality offered by TV Navigator Four middleware, Two Way TV applications will be part of SeaChange’s product offering, which includes on-demand, convergence applications and advanced subscriber services.

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TI powers Konka IPTV STB

China-based Konka Group Ltd. has developed a new Internet Protocol (IP) set-top-box (STB) solution based on DaVinci technology from Texas Instruments, the Konka IPB5310 is aimed at delivering a low cost solution that is easy to implement, boosting the adoption of IPTV services in China and worldwide.

"The programmable processors at the foundation of TI’s DaVinci technology enabled us to develop an IP-STB product that is cost effective and easy to upgrade – both of which are vital in this growing market," said Bruce Chou, IPTV business manager, Konka.

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Irdeto joins forces with Huawei
From Colin Mann in Amsterdam

Irdeto is to provide the security for new Personal Video Recorder (PVR) services brought to the Dutch market by the second largest cable operator Essent Kabelcom and by Casema. Their new offering will be available in Q3 2006.

Content security specialist Irdeto has signed a strategic partnership agreement with Huawei Technologies (Huawei), China's leading telecom equipment manufacturer, to jointly sell end-to-end solutions into the worldwide IPTV market. Huawei will include the Irdeto IPTV content security solution as an integral part of its end-to-end IPTV offering.

In addition, Irdeto IPTV, will be embedded into Huawei's MPEG-4 set top boxes. Going forward, both companies agreed to engage in joint marketing and joint R&D activities that will facilitate integration of technology leading to next generation IPTV products.

Separately, Irdeto announced that PrimeTel Ltd., a telecommunications and information technology company, will protect its IPTV platform in Cyprus with the software-based IPTV content security solution from Irdeto. PrimeTel plans to launch its new IPTV service for commercial purposes in October 2006 completing its offering as a triple-play service provider.

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Arqiva partners with Microsoft for mobile TV trials

Broadcast transmission specialist Arqiva has partnered with Microsoft Corp. to trial datacasting applications over DAB and DVB-H mobile broadcasting standards.

The technical trial will test the integration of live multi-channel Mobile TV with two datacasting applications: 'clip and share' and 'augmenting live events'. 'Clip and share' enables viewers to capture segments of live broadcasts and share the file with friends. 'Augmenting live events' will use 3G services, widely seen as a complementary technology to mobile broadcasting, to deliver additional clips linked to the live broadcasts.

This technology will enable viewers to tailor the Mobile TV viewing experience to their individual preferences: when watching a live broadcast of a football match the 3G return path can be used to access further information such as individual player profiles, match statistics or goal replays.

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ADB debuts French DVR

Advanced Digital Broadcast (ADB) has signed a co-operative marketing agreement with the French free-to-air music channel NRJ-12 to jointly develop and market a Multimedia Home Platform based Digital Video Recorder.

The deal will enable the NRJ-5100TX DVR to be sold using the NRJ-12 and ‘i-CAN by ADB’ brand names and marks ADB’s first entry into the rapidly expanding digital terrestrial market in France. In addition to digital television, the product will provide consumers with access to aditional services, including digital video recording, web based services, Electronic Programme Guide and ‘on-demand’ downloads of entertainment content, such as games and music.

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National Grid Wireless begins DAB-IP and T-DMB trial

National Grid Wireless, one of the UK’s leading providers of broadcast infrastructure, has begun technical trials of DAB-IP and T-DMB, two of the technologies which could be adopted for the provision of mobile media services in the UK.

The services are being transmitted on the Stoke-on-Trent DAB multiplex and carry video and audio content supplied by the operators of the multiplex, UTV-Emap Digital. The technical trial is monitoring the relative performance of both technologies in rural and urban areas, including within buildings. The trial will enable the company to determine the full requirements for the introduction of enhanced data services onto conventional T-DAB platforms.

The multiplex system has been provided by RadioScape and is currently the only system operating that supports both T-DMB and DAB-IP. The video encoding system has been provided by Pixtree.

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Monday 11th September

Amazon to offer digital DVD downloads
UK channels join BT Movio
Thomson enhances NexGuard content security solution
FastWeb unveils single decoder
SES Astra goes triple play with Astra2Connect
BBC to launch global TV channels
UK cellcos lose tax bid
Cabot and BBC explore advanced DTR functionality



Amazon to offer digital DVD downloads

Amazon is launching a digital video download service to compete with other services such as Apple’s iTunes service.

Amazon said its new Unbox service would offer customers thousands of television shows, movies and other video content from more than 30 studio and network partners from Hollywood and around the world. The technology would also allow customers to buy from one PC, such as an office computer, and download the content to another at home.

Bill Carr, Amazon vice president of digital media, said customers could now choose between DVDs delivered to their door or DVD-quality downloaded content. "Amazon has built the ultimate solution for anyone who has ever had a friend or co-worker tell them that they missed a great TV show last night," he said.

Amazon has the endorsement of six major Hollywood studios, including 20th Century Fox and Warner Bros., as well as TV networks such as CBS and Fox, and cable channels such as Comedy Central and E! Entertainment.

Television series episodes will sell for $1.99 per episode, while most movies can be purchased for between $7.99 and $14.99, or rented for $3.99.

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UK channels join BT Movio

BT has launched its new wholesale mobile broadcast entertainment service, BT Movio, with BBC One, ITV1, Channel 4 and E4 confirmed as the initial TV channel line-up. The BT Movio service is the first wholesale offer in the world to combine live TV, DAB digital radio, a seven-day programme guide and ‘red button’ interactivity for mobile phones.

Virgin Mobile, which has previously been announced as the first UK mobile operator to offer this service, is set to release retail pricing, product specification, advertising support and availability details.

For the first time, the UK's three largest terrestrial broadcasters have all signed up to simulcast channels to mobile phones. BT Movio identified consumer demand for familiar channels and programming during its extensive pilot last year. Feedback from pilot users consistently indicated that the most popular channel line up would feature the brands and programmes currently known and enjoyed by millions at home.

With the exception of some film, sport and US-produced content, the simulcast programme schedule for BBC One, ITV1 and E4 will be made available through the BT Movio service. BBC One will be available on a trial basis for 12 months and will be provided free to consumers. Channel 4 will initially broadcast Channel 4 Short Cuts, its made-for-mobile TV channel, and expects that Channel 4 simulcast will follow.

Emma Lloyd, managing director, BT Movio said: "While developing our wholesale offering we have never lost sight of what the consumer wants."

The BT Movio service is broadcast via the existing national commercial DAB digital radio network. Covering more than 85 per cent of the UK population, this provides BT Movio with a near-national footprint at launch. BT Movio is offering its service to all mobile operators on a wholesale basis.

The launch device for the BT Movio service is the Virgin Mobile Lobster 700TV phone. Manufactured by HTC, this is the world’s first DAB-IP enabled device. The device is the first in a series of mobile phones being developed to support the BT Movio service.

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Thomson enhances NexGuard content security solution
From Colin Mann in Amsterdam

Media and entertainment technology group Thomson has revealed significant enhancements to NexGuard, its anti-piracy product line. The new capabilities expand the portion of the NexGuard solution dedicated to production and postproduction content security. They include a new administration tool that provides clients with complete control of their internal content security system; third-party licenses that secure work performed by consultants, subcontractors and other personnel working outside a main facility; and complete Mac OS X functionality.

"NexGuard’s new workflow tools will provide our clients with even greater flexibility, freedom to collaborate securely, and power to manage their valued assets," said Jean-Charles Hourcade, CTO Thomson and co-head of the Technology division. "Content must be protected during postproduction and exhibition, and it is Thomson’s goal to help the media and entertainment industries address both challenges."

NexGuard’s new administration tool will arm postproduction companies, broadcasters, filmmakers and studios with separate controls for encryption and digital rights management. From the moment it is created or received, content can remain encrypted, and clients can manage and update access and usage rights independent of the encryption process.


FastWeb unveils single decoder
From Branislav Pekic in Rome

Italian broadband operator FastWeb is planning to launch a so-called single decoder. The decoder is based on a multiplatform that enables the reception of all TV content transmitted via the telephone line (provided by FastWeb), but is also capable of connecting to the TV aerial to receive digital terrestrial TV channels and services. The integrated ADSL/DTT decoder, that is also HD-ready, is capable of functioning with both Mediaset and La7 pre-paid smart cards. The development will further the move to analogue switch off.

According to FastWeb’s head of media and TV, Paolo Agostinelli, the single decoder is open and not proprietary, as is the case for Sky Italia and Telecom Italia’s IPTV service Alice. FastWeb has also promised that, in parallel to the launch of the new box, it will introduce discounts for TV content.

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SES Astra goes triple play with Astra2Connect
From Colin Mann in Amsterdam

Satellite operator SES Astra is to launch Astra2Connect, a fully satellite-based interactive and low-cost broadband Internet access to serve the residential market, the small and home offices as well as small and medium enterprises. Astra2Connect will provide a full satellite-based triple play infrastructure service enabling broadband internet access, voice-over-IP and other content related access services such as IPTV or Video-on-Demand. It is expected to be operational in the first quarter of 2007 and will mainly target homes in Europe, which can not easily get terrestrial broadband Internet services.

Ferdinand Kayser, President and CEO of SES Astra, suggested the move would bring broadband Internet access to everyone - whenever and wherever. "The end-consumers will benefit from an affordable and always-on two-way connectivity," he claimed, confirming SES Astra’s intentions to extend Astra2Connect to other regions of the world in the near future.

Astra2Connect is currently offered on a wholesale basis to large European service providers such as telecommunication operators, Internet service providers and broadband operators that conduct pro-active marketing and sales activities in the residential and small enterprise markets. The necessary equipment consists of an interactive satellite antenna as well as a low-cost and easy-to-install satellite modem. For the design and procurement of the satellite platform and the related modems, SES Astra has entered into a co-operation with Newtec, a recognized market leader in satellite communication systems. Astra2Connect uses advanced technology developed with the support of the European Space Agency (ESA).

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BBC to launch global TV channels

The BBC is to launch four new TV channels around the world, including BBC Entertainment, offering drama and comedy, and a dual-language CBeebies.
The channels, also including BBC Knowledge and BBC Lifestyle, will be available online and on mobile phones as well as in linear channel form.

BBC Entertainment and CBeebies are due to be launched in India first, with the latter in Hindi and English.

BBC Worldwide said it also planned a high definition channel in the future.

The entertainment channel will replace BBC Prime in some countries, initially Hong Kong, Singapore, Korea and Thailand.

The channels will be broadcast in local languages, with CBeebies also in English to enable learning of the language.

BBC Worldwide said the expansion of the channels would be decided on a country-by-country basis.

Extensive research was being conducted in countries "to make sure our channels will be relevant and something audiences want to watch", a spokesman said.

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UK cellcos lose tax bid

The UK’s mobile phone firms have been dealt a blow in their battle to claim back billions of pounds of taxes relating to their purchase of 3G licences. They contended that a total of £3.3bn (E4.9bn) should be returned to them.

However, one of the European Union's top legal advisers has said the price of the licences did not include VAT. The EU courts normally followed the advisers' advice.

According to the firms, they should be allowed to claim back the VAT because it was the subscribers, not the companies, who were the end consumers.

Facing a number of appeals, the UK's VAT and Duties Tribunal asked the European Court of Justice (ECJ) to rule on whether or not the government was liable for the tax repayment.

"In the view of Advocate General Juliane Kokott, the state auctioning of 3G mobile telephone licences is not liable to VAT," the ECJ said in a statement. "That is because, in issuing licences, the state and its institutions were carrying out an activity required of them as public authorities."

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Cabot and BBC explore advanced DTR functionality
From Nick Snow in Amsterdam

Digital TV software supplier Cabot Communications, is working in partnership with the BBC in a technical collaboration exploring advanced Digital Television Recorder (DTR) functionality using MHEG technology. The outcome of this partnership will potentially traverse Push Video on Demand (PushVoD) applications and various other enhanced MHEG applications such as narrative video based games.

Rahul Chakkara, Controller BBCi, said that it was clear that audience needs are changing. "They want to watch, listen and use our content when and how they choose. The BBC is working in partnership with Cabot Communications to explore ways in which DTR technology can be used to meet these emerging audience needs."

"The technology provides MHEG authors the building blocks to create more dynamic applications not only based on text and graphics but also AV clips," commented Giri Valliappan, Technical Marketing Manager at Cabot Communications. "Push mechanisms allowing content to be 'pre-loaded' onto DTR boxes open up several application scenarios such as PushVoD, resident promotional trailers and larger MHEG applications. In addition, the ability to store and launch MHEG applications on the HDD will enable application providers to deploy a wider range of applications whilst reducing usage of broadcast bandwidth." BitBand says "yes" for hybrid VOD

Video content delivery solutions provider BitBand, has secured a deal with Israeli satellite broadcast operator ‘yes' for the deployment of Video On Demand (VOD) services in Israel.

This deployment is one of the first of its kind to utilise a hybrid network that enables receiving both a satellite feed for broadcast television and an IP feed for VOD services to the same set-top box at the subscriber's home. yes is the content leader provider in Israel with over 530,000 subscribers.

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