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Our Latest Issues
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Tuesday
Friday 4th July
Mobile Broadband ‘jeopardised by regulation’
Virgin warning illegal downloaders
Telia erodes Boxer
Video no longer an afterthought
DVDs and TV still soak up the dollars
30% watch Internet TV
Cablevision HD bonus to fight FiOS
Broadband users spend half their free time online
Freeview re-brands recorders Freeview+
Time Warner joins MoCA
ITN extends advertising deal with blinkx
MPAA approves DreamStream anti-piracy technology
Increase in Internet radio usage
Panasonic becomes Eurosport HD partner
Mobile Broadband ‘jeopardised by regulation’Europe’s mobile industry is cutting back spending on new networks and services as a growing regulatory burden from the European Union puts profitability under pressure, according to GSMA, the global trade body for the mobile industry. To justify the imposition of retail price caps, the European Commission has claimed that mobile operators are making excessive profits, but the European mobile industry’s return on capital employed was just 9 per cent in 2006 compared with more than 20 per cent in software, pharmaceuticals and several other sectors, says management consultancy A.T. Kearney.
In its response to the European Commission’s public consultation on the voice roaming regulation, the GSMA warns that European mobile operators, on average, are only just covering their weighted cost of capital and some of them are making an economic loss. A.T. Kearney estimates that ROCE for the mobile industry in 2007 was equal to or slightly lower than the 2006 figure.
Historically, one of the leading investors in Europe, the EU mobile industry’s capital spending has slipped from 13 per cent of revenue in 2005 to 12 per cent in 2006 to 11 per cent in 2007. However, heavy capital investment is needed to ensure the widespread availability of advanced 3G networks, which enable mobile users to access the Internet and other multimedia services at broadband speeds. While the mobile industry’s technology roadmap envisages further dramatic improvements in network performance and capacity, the speed of deployment of new networks may be constrained by the mobile industry’s relatively low level of profitability.
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Virgin warning illegal downloadersVirgin Media has sent out warning letters to 800 of its customers in an attempt to crack down on illegal downloading. The letters are part of a 10-week pilot programme run in conjunction with the British Phonographic Industry (BPI) - the body that represents record companies in the UK.
The BPI has been calling on ISPs to adopt a strict policy towards Internet users who download copyrighted material, but Virgin Media opted for the formal letter approach rather than adopting the "three strikes and you're out" policy.
This is the stance the BPI wants all ISPs to take but only Virgin Media has signed up to any sort of measures at the moment - and it is only agreeing to "educate" its users for the meantime. The BPI says that thousands more letters will be sent, and then the trial reviewed in mid-August.
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Telia erodes BoxerThe set-top ‘giveaway’ by incumbent Telia, is being blamed for the slump in the number of subscribers to the DTT pay platform Boxer. Subs fell by 8,000 in the second quarter, bringing the installed base to 701,000 still 23,000 more than at the same point in 2007.
"Competition in the Swedish pay-TV market is becoming tougher and tougher, not least since Telia launched IPTV a large scale," said Boxer MD Per Norman. "The most important consideration for Boxer at the present time is that we can develop the terrestrial network using new technology and offer program packages which give even more value for money, and that we can grow in new markets."
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Video no longer an afterthought
From Colin Mann in SalzburgAccording to Maria-José Montpetit of Motorola’s Home and Network Mobility Technology Office, video is now at the centre of a device’s design, where it was once an afterthought. "Video is now a first-class citizen," she told delegates at EuroITV.2008. "Devices are now designed for some kind of video."
Delivering a keynote speech, she said the challenge was to tap into a user’s perception that it is more a case of a user thinking of ‘My Service’ than ‘My Device’ and identify the difference between applications and services, as well as features and benefits. "The device manufacturer can include a feature on a device, but someone who wants to make money from that feature has to add an application that will allow that to happen." According to Montpetit, it is necessary to keep redesigning the TV offering to retain customers.
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DVDs and TV still soak up the dollarsA study from Knowledge Networks reveals that while consumers are turning to new video technologies – such as online streaming and mobile video – most of their video-related spending continues to be on conventional sources such as DVD rentals and purchases.
New findings from, How People Use the Video Marketplace, also show that Generation Y (ages 13 to 29) – and, to a lesser extent, Generation X (ages 30 to 43) – is way ahead of Young Boomers (ages 44 to 54) in using emerging video sources, such as mobile and streaming, but their spending on such video sources is not significantly higher.
The research is part of The Home Technology Monitor. The study shows that the average person aged 13 to 54 spends roughly $31 per month on video-related content. Of this, about $13 goes to TV service, and another $13 to buying and renting DVDs; meanwhile, spending on emerging video distribution channels accounts for less than $5 combined.
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30% watch Internet TVAlmost a third of UK people under the age of 25 have watched TV via the internet, according to research from the IPA. The IPA Touchpoints report, which queried 5,400 people, revealed that 29 per cent of people between the ages of 15 and 25 had watched TV online, along with 18 per cent of adults between 25 and 64.
The report also said that 13 per cent of all mobile users watch video clips on their phones, with the figure rising to 30 per cent for 15-24 year olds. Overall broadband penetration now stands at 73 per cent of all UK adults, with internet usage at an average of 45 minutes on weekdays and 1.07 hours at weekends.
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Cablevision HD bonus to fight FiOSCablevision Systems will give customers another 15 free high-definition channels as it faces stiffer competition from satellite TV providers and Verizon. The cable operator said it would add mainstream HD channels including Discovery, Nickelodeon, FX, FOX News, AMC and The Weather Channel to its line-up from July 28, bringing its HD offering to 60 channels.
Cablevision said more than 1.1 million of its digital cable subscribers have at least one high-definition TV and HD-enabled set-top box.Verizon, which is in a fierce battle for TV subscribers with Cablevision in New York's Long Island, currently offers 30 HD channels on its FiOS TV service and said it would add another 30 in the next couple of months.
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Broadband users spend half their free time onlineThe Internet has become a big part of the leisure-time activities of US consumers with broadband connections who spend nearly half of their free time each weekday online, according to a survey by Netpop Research. Respondents say they have on average 4.5 hours of free time each weekday and spend 2.2 of those hours on the web.
Many are multitasking, especially watching TV and going online simultaneously. Four out of five say they have gone online while watching TV, and 39 per cent say they do so regularly, according to Netpop, a division of market research and consulting firm Media-Screen LLC.
Freeview re-brands recorders Freeview+
Freeview, the UK digital TV service, has announced the re-branding of its Freeview Playback digital TV recorders (DTRs) as Freeview+. Over the coming months the Freeview+ name will roll out across retail and packaging, marking the start of Freeview’s increased marketing efforts to drive awareness and sales of its DTR equipment.
In addition to providing access to subscription-free channels, Freeview+ boxes will offer a variety of integrated digital recording features including series record, one touch record from an eight-day programme guide and functionality to pause live TV.
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Time Warner joins MoCATime Warner Cable, the second largest cable television provider in the US, has joined The Multimedia over Coax Alliance (MoCA) as a Contributor level member. MoCA can now claim three of the largest cable companies in the US as members.
MoCA is an open, industry driven initiative promoting distribution of digital video and entertainment through existing coaxial cable in the home.
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ITN extends advertising deal with blinkxblinkx, the world’s largest video search engine, has secured an extension contract that will augment the scope of its advertising partnership with ITN, one of the world’s leading news and multimedia content companies. Under the terms of the new agreement, ITN will use AdHoc, blinkx’s patented contextual advertising platform for online TV and video, to serve advertisements on the ITN website and its syndication partner sites, including Bebo.
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MPAA approves DreamStream anti-piracy technologyThe Motion Picture Association of America has approved the use of DreamStream's secure online file streaming system as a solution to curb digital piracy. "We are very excited to have the MPAA stand behind our technology," said Ulf Diebel, chief development officer for DreamStream. "The MPAA understands the need to be proactive - rather than reactive -- in addressing the chokehold that piracy has on the motion picture industry."
The MPAA reports that the major motion picture studios lose more than $6 billion every year because of piracy alone.
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Increase in Internet radio usageThe popularity of Internet radio has increased markedly in the last six months. Industry ratings body Rajar has reported that 14.5 million consumers have listened to the radio online at least once- up 2.5 million from November 2007. Podcasts were also shown to be a popular element of online entertainment, with six million people downloading one over the period.
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Panasonic becomes Eurosport HD partnerPanasonic Electronics and the Eurosport have announced a new Europe-wide partnership — with Panasonic as the Official Partner to Eurosport's high-definition television (HDTV) simulcast service, Eurosport HD.
The deal between the world's largest manufacturer of consumer electronics and Europe's leading sports multimedia platform was timed to coincide with the recent Eurosport HD channel launch. As part of the deal, Eurosport will use Panasonic HPX2100 and HVX201 high-definition (HD) cameras for coverage of the Olympic Games.
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Thursday 3rd July
Italy speeds switchover
AT&T quits Dish deal
Kangaroo rebounds on Sky
Bezeq threat to YES?
Virgin rapped for broadband ad
Open IPTV Forum adds new members, preps new specs
Microsoft acquires Powerset
Blockbuster backs out of Circuit City
Numericable adds HD to VOD
Discovery HD launches in Australia
Italy speeds switchover
From Branislav Pekic in RomeThe Italian Government and the country’s Communications Authority (AgCom) is aiming to bring forward the complete switchover from analogue to digital, which is currently planned for the end of 2012.
Announcing plans to present a plan for the complete national switchover by September 9, Italy’s Undersecretary for Economic Development responsible for the Communications Sector, Paolo Romani, said there was the possibility of a prior date to 2012, as Italy risks being the last in Europe. The plan is to anticipate the deadline by two years, until the end of 2010.
His views were shared by the president of AgCom, Corrado Calabro', who also sees 2012 as a "far off date". Calabro' is of the opinion that a detailed evaluation should be made when a large part of the Italian territory is digital-ready. He added that the model implemented in Sardinia, based on a frequency allocation agreement, is the right one for Italy as a whole.
Sardinia is due to completely switch-off analogue TV transmitters on October 31, followed by Val d’Aosta, the provinces of Torino and Cuneo, the regions of Trentino and Alto Adige, to which Rome could be added from this autumn.
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AT&T quits Dish dealDISH Network, the US satellite television provider, said it has received notice that phone operator AT&T is ending their agreement at the end of the year to sell TV, phone and Internet packages. AT&T and DISH have had a joint marketing agreement since July 2003 to sell the "triple-play" package in AT&T regions.
AT&T said it provided the required six-month notification for non-renewal of its current contract with DISH. "We continue to discuss options with DISH," it said in a statement. In early April, AT&T said it had expanded its partnership with DISH in territory previously covered by BellSouth Corp, which AT&T acquired in late 2006, and had stopped marketing a similar package with DIRECTV Group Inc, the No. 1 US satellite TV operator.
That move prompted speculation that AT&T had entirely dropped DIRECTV in favor of a DISH partnership. But AT&T has repeatedly said it was still talking to both about a long-term partnership for bundled phone, Internet and video services, and that a final decision was due by the end of the year.
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Kangaroo rebounds on SkyThe decision to refer Kangaroo to competition authorities – a move much welcomed by Sky – has seen ITV’s share price hit a new low of around 45p bringing Sky’s loss on its 17.9 per cent stake close to £650 million (E866m).
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Bezeq threat to YES?Israel’s Antitrust Authority is said to be concerned that Bezeq – the national carrier in Israel - would close YES if it is allowed to purchase control in the DTH platform. The Authority believes Bezeq would prefer to concentrate on the development of its IPTV service. However, the Restrictive Trade Practices Tribunal has judged that the Authority’s arguments against Bezeq are weak and that the purchase should be permitted to go through, subject to conditions.
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Virgin rapped for broadband adVirgin Media that promoted broadband download times for TV shows and music has been banned after rival internet provider BT complained to the advertising regulator that the speeds quoted were inaccurate.
The national press ad, which ran with the headline Hate To Wait, featured a table with download times for TV shows and music tracks based on different broadband packages offered by Virgin Media. BT complained that the download speeds quoted in the ad were misleading because Virgin Media's traffic management policy capped downloading speeds at peak times.
Virgin Media, which has made much of the fact that its cable network offers superior broadband speeds than rival operators, said that its traffic management system "only focused on the heaviest downloaders and uploaders" on its network because it was the heavy users who slow the internet speeds for other subscribers, especially at peak times, according to Virgin Media.
The company added that its traffic management system was only active from 4pm until 9pm and threshold levels were graduated based on whether users had, say, 2Mb or 20Mb connections.
However, the company admitted that customers on its "M" package could not download even one TV show in peaktime without having speed moderation triggered, while "L" package customers could download just two TV shows or 60 songs.
The ASA noted that only a "small proportion" of Virgin Media customers had been subject to its traffic management policy. However, the regulator concluded the ad was misleading.
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Open IPTV Forum adds new members, preps new specsThe Open IPTV Forum has added eleven new members at a recent meeting held at the headquarters of Telefónica in Madrid, and reports that the first release of its new specifications are close to completion.
The new members are Fastweb, Swisscom, Access Company, BeeTV, Digital Fountain, Intel, InterTrust Technologies Corporation, Motorola, Opera Software, Thomson and ZyXEL, and together they bring the total membership to 37 companies.
Yun Chao Hu, Chairman of the Open IPTV Forum, commented: "These new members represent a wide range of interest and broaden the input to the Forum's activities both technically and geographically; they reinforce the Forum's presence in the USA, with four new member companies (Digital Fountain, Intel, InterTrust Technologies Corporation and Motorola) and establish the Forum's presence in Taiwan (ZyXel)."
Commenting on the new open standard specifications, intended to allow IPTV to develop into a mass market service globally, Hu said: "Work on the new specifications is progressing fast. The Forum has already produced the first version of a Service and Platform Requirements document and the first architecture specification. We are now working round the clock to meet our target of publishing Release 1 in September this year. Release 1 will solve the problem of fragmentation within the market by standardising an IPTV framework, enabling a 'plug and play' experience for the end-user and, by ensuring interoperability, will make IPTV independent of the technology behind it."
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Microsoft acquires PowersetMicrosoft has turned up the heat on its rivalry with Google with the purchase of a private Silicon Valley company that has developed one of the most promising Internet search tools of recent years. The acquisition of Powerset, reportedly for about $100 million, comes in the wake of Microsoft’s failure to challenge Google either by acquiring Yahoo outright or buying its Internet search business, although the software company has said that the offer of a partial purchase remains open.
Powerset has become one of the most talked-of new search companies of recent years thanks to its ambitious plan to use so-called "natural language" technology to search the Web. Rather than keywords, which search engines such as Google use, natural language technology seeks to "understand" the meaning of a query and the content of webpages, potentially making it far more effective.
However, critics claim that the technology, which has been something of a Holy Grail for search companies, is still years ahead of its time, and even that it raises philosophical questions about the nature of language.
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Blockbuster backs out of Circuit City
Blockbuster has withdrawn its offer to buy US electronics retailer Circuit City, citing difficult market conditions. Blockbuster said the bid, which valued the retailer at more than $1 billion was no longer in its best interests.
Last month, Circuit City said its sales had fallen by 11 per cent in the three months to the end of May. Blockbuster had planned to create a chain selling portable devices as well as entertainment to be played on them.
Despite withdrawing its offer, the firm's chief executive said it still believed in that strategy. "We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment," said Blockbuster.
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Numericable adds HD to VODFrench cable company Numericable has added HD content from CinePlay, TF1 Vision and I-Concerts o its Video Club VOD service.
Prices for HD titles are E4.99 for brand new titles, E3.99 for library titles and E2.99 for individual programmes from TF1. Viewers need to have Numericable’s Cablebox HD in order to view the VOD programmes in HD.
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Discovery HD launches in AustraliaDiscovery Networks Asia-Pacific in Australia, a unit of media company Discovery Communications, has confirmed that Discovery HD has launched as one of the five dedicated 24/7 HD channels offered by FOXTEL’s new service, FOXTEL HD +. Discovery HD first launched in the Asia-Pacific region in 2005 and is now available in 17 international markets.
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Wednesday 2nd July
XM, Sirius cost saving prediction
FT drops TeliaSonera bid
TV sets still preferred over TV websites
UK STB sales on the up
More FTTH for French estates
Online ad share to break 10% this year
Hollywood actors strike?
IPTV roadmap
China drafting standard for DTT
Setanta on Top Up TV
Seven unveils shackled TiVo
China Telecom close to 1m IPTV subs
Chello Zone expands VOOM HD reach
Espial acquires Kasenna
Dawe joins Turner Broadcasting
Sky shows Style Network
ViewCast joins Microsoft Silverlight initiative
XM, Sirius cost saving predictionAmid the latest rumours that FCC approval for the deal is imminent, Sirius has provided a first look at the financial future of the company after the proposed merger with XM Satellite Radio. Sirius said that savings from combining with XM would total $400 million (E254m) next year, net of costs. Sirius also said that the combined companies would earn $300 million in 2009 before interest, taxes, depreciation and amortization.
Sirius said that if its pending merger with XM goes through, free cash flow would be positive in 2009 before factoring in capital expenditures. Synergies, earnings and cash flow would continue to improve in subsequent years, said Mel Karmazin, Sirius's chief executive. He said the company would provide more detail in coming months.
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FT drops TeliaSonera bidFrance Telecom has abandoned its $40 billion (E25.4m) cash and share bid for TeliaSonera. Negotiations were terminated after France Telecom could not agree a price with the Nordic telecoms company or its main shareholder, the Swedish government.
Mats Odell, Sweden’s minister for financial markets, who oversees the government’s SEK200 billion (E21bn) privatisation programme, said: "I could not have signed a contract at the price that was available at the weekend".
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TV sets still preferred over TV websitesDespite the growing popularity of viewing television content online, most adults (94 per cent) who subscribe to cable or satellite television services prefer to watch television on traditional TV sets, according to research conducted by The Nielsen Company for the Cable & Telecommunications Association for Marketing (CTAM).
One-third of the adult broadband users (35 per cent) surveyed for the study said they had watched at least one television programme originally shown on TV via the Internet. Of those who sought out video content online, 87 per cent watched television programmes directly from a TV network website. Further, 82 per cent of those who watched video content online reported that they went online to find a specific television programme that they had missed when it first aired on TV. This indicates the critical importance of strong marketing for the initial TV showing and the success that major networks are having by taking popular programmes to the online platform.
"Tracking how consumer behaviour is changing as a result of new television viewing platforms is critical to our business," said Char Beales, President and CEO of CTAM. "As preferences are made clear through research, cable companies and content providers evolve the product mix to best suit viewers’ needs and desires."
Volume sales of Set Top Boxes grew to 4.9 million in the year ending April 2008 in the UK, increasing from 4.1 million the previous year. Value sales also grew significantly from £169.1 million (E225m) to £172.9 million over the same period according to GfK Retail and Technology.
The largest sub-sector within this product area, Digital STBs without a Hard Disc Drive, grew to 4.3 million units in the year ending April 2008 – a 17.8 per cent increase when compared to the previous year. Over the same period, average prices of these devices have fallen from £31 to £24 and this has inevitably exerted downward pressure on value sales, which fell from £155.7 million to £104.9 million.
Digital STBs with a Hard Disc Drive experienced strong growth in the year ending April 2008. Volume sales grew to 473,000 units whilst value sales grew to £50.5 million. When compared to the year ending April 2007, these figures represented increases of 90.7 per cent and 44.2 per cent respectively.
Looking ahead, the run up to the digital switchover should help to catalyse sales of Set Top Boxes, and given the popularity of smaller LCD TVs for use in the kitchen and bedroom, many of which do not feature a digital tuner, the need for a secondary Set Top Box within the home will also help strengthen sales.
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More FTTH for French estatesAlcatel-Lucent has signed a new frame agreement with Neuf Cegetel, France's leading alternative service provider, for the deployment of a fiber-to-the-home (FTTH) network in Paris. Alcatel-Lucent's gigabit passive optical network (GPON) solution will enable Neuf Cegetel to offer very high-speed access and services to more than 100,000 apartments. The project is part of an initiative led by the Paris social housing office OPAC (Office Public d'Aménagement et de Construction) to bridge the digital divide in the French capital.
Alcatel-Lucent's GPON solution will enable Neuf Cegetel to offer triple play services, including 18 television channels that are high-definition television (HDTV)-ready, high-speed Internet access and VoIP. Alcatel-Lucent will also provide Neuf Cegetel with installation and commissioning services.
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Online ad share to break 10% this yearZenithOptimedia's optimistic predictions for online is holding steady. The Publicis Groupe media buyer's latest forecast expects global internet ad spend to grow 26.7 per cent and break through the 10 per cent share barrier this year, a year earlier than Zenith predicted just three months ago. By 2010 Zenith predicts online will attract 13.6 per cent of all advertising, well ahead of the company's previous prediction of 12.3 per cent. As for actual dollar amounts, Zenith sees worldwide online ad spend this year of $52.2 billion, $64 billion in 2009 and $78.1 billion in 2010.
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Hollywood is preparing for another strike after the largest actors’ union failed to agree on a new contract with the US entertainment industry’s key studios and networks . The 120,000-member Screen Actors Guild has been locked in talks with the studios for several weeks.
failure to reach agreement will pave the way for a repeat of the strike by Hollywood screenwriters that began last November and paralysed the industry for three months.
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IPTV roadmapReasearcher IMS claims to have roadmapped the way to converged services for IPTV operators. By categorising multi-platform services into functional groups including Time-shifting, Place-shifting, Personalisation, and Socialisation, the report provides numerous examples of what new services may look like on different platforms and regions of the world.
"The Millennial generation already expects video, personal communications and messaging services wherever they are, regardless of device or network," said Steve Hawley, Sr. IPTV Analyst, Multimedia Research Group, "Operators that aren't transforming their service platforms to serve these 'digital natives' are already at a disadvantage."
Over 180 companies and IPTV Operators are featured in this report, including Operators Deutsche Telecom, PCCW, Orange, and many others; and Vendors Alcatel-Lucent, Cisco, IBM, HP, Integra5, NSN, Motorola, and many others. Real-world examples also are examined. One example shows how theatre tickets are purchased on a home eset-top box with the "ticket" transferred to a barcode on the consumer's mobile phone. This can only happen if the Operator has control of both platforms.
"The purpose of this report was to identify if, when and how IPTV Operators would move to advanced and converged (multi-platform) services, and measuring the use of IMS and alternative technologies," states Gary Schultz, President of MRG.. "The reality we discovered is that the interim steps to converged services de-siloisation and unification of elements of the back office - were already becoming vehicles to decrease OpEx and improve customer loyalty."
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China drafting standard for DTT
China Electronics Technology Group Corporation (CETC) has revealed on July 28th a draft standard for terrestrial digital television sets will circulating among related enterprises and municipal broadcasting bureaux. The standard will be non-compulsory and may or may not be promulgated prior to the Olympics.
Konka, Changhong, Toshiba, and LG have already produced integrated TV sets using this standard. In order to increase the suitability of their equipment for multiple regions, the same companies are installing single and multiple carrier chips in the TV sets. The cost of these television sets is much higher than that of non-integrated systems, however.
Yu Yueyu, head of the marketing office at the Guangzhou Pearl River Mobile Multimedia and Information Company, has signalled his firm will start broadcasting terrestrial digital television six months after digital television broadcasts start in the six leading Olympic cities.
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Setanta on Top Up TVSetanta has agreed a new distribution arrangement with Top Up TV that will provide subscribers with another way to watch Setanta Sports. Both Setanta and Top Up TV believe this new agreement will attract more Freeview customers to Setanta’s main channel, Setanta Sports 1, to the commercial benefit of both companies.
The deal will see Top Up TV become a retailer of Setanta Sports on its digital TV recorder (DTR), offering an array of sport alongside its Top Up TV Anytime and Picture Box subscription services. The launch will coincide with the start of the 2008/9 Barclays Premier League season.
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Seven unveils shackled TiVoMany extra features of TiVo will be disabled when it is launched at the end of the month in Australia so that network partners Seven can charge for them via a software update early next year.
The A$699 device will be available from July 29th but the home networking features - such as the ability to transfer music, photos and video from a PC to the TiVo box - will be disabled.
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China Telecom close to 1m IPTV subsChina Telecom, the nation's largest fixed-line operator, has revealed that the number of subscribers using its IIPTV exceeded 940,000 as of May this year, implying that it would soon cross the million mark. IPTV service, the key step in China Telecom's digital family strategy, has been available to users in major cities such as Shanghai, Jiangxu, Zhejiang, Guangdong and Shaanxi since 2005.
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Chello Zone expands VOOM HD reachVOOM HD Networks had revealed that international broadcaster and distributor of thematic channels Chello Zone will distribute RUSH HD into much of Europe, Africa, the Middle East and parts of Asia. This latest agreement marks the second VOOM HD channel represented by Chello Zone and comes fresh on the heels of RUSH HD’s launch on Sky.
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Espial acquires KasennaEspial, specialist in the delivery of IPTV middleware and applications, is to acquire all of the outstanding shares of IP video delivery outfit Kasenna in exchange for an aggregate of 4,722,224 Espial common shares.
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Dawe joins Turner BroadcastingTurner Broadcasting has appointed former Managing Director of Heart FM, Barnaby Dawe, as Vice President of Marketing and Communications across all Turner Entertainment brands in the UK. Dawe will oversee the marketing and communications strategy for all UK entertainment channels – Cartoon Network, CN Too, Cartoonito, Boomerang, Turner Classic Movies, Adult Swim and Nuts TV.
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Sky shows Style NetworkWoman’s lifestyle and fashion channel The Style Network is coming to Sky. The UK launch, scheduled for July 7th, will make The Style Network available to over 9.5 million subscribers internationally, outside of the US.
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ViewCast joins Microsoft Silverlight initiativeViewCast, provider of streaming hardware and software solutions, has joined the Microsoft Silverlight Partner Initiative to deliver the next generation of .NET-based media over the Internet. By utilising Windows Media/VC-1 format, the ViewCast Niagara SCX encoding platform can deliver streaming video and audio content to users of Silverlight, a cross-browser, cross-platform, and cross-device plug-in offering flexibility in Windows, Macintosh, and Linux environments.
Tuesday 1st July
OFT bounces Kangaroo
Permira to take NDS private
Sky questions BBC programme bids
Portugal Telecom tops DTT tender
Record-breaking TV deal for SPL
Court upholds FCC on cable rules
In-Flight DBS revenue $900m+ by 2012
OpenV obtains licence
Sigma for Adcom STBs
Two Way and Virgin gaming channel
Oki audience rating
Widevine secures Viginta's DTT video service
OFT bounces Kangaroo
From Colin Mann in LondonThe UK’s trading watchdog, the Office of Fair Trading has referred the proposed video on demand (VOD) joint venture between BBC Worldwide Limited, ITV plc and Channel 4 - also known as Project 'Kangaroo' - to the Competition Commission (CC) for further inquiry. The CC now has 24 weeks to consider the issues, and collect evidence on the key issues.
The proposed JV is intended to combine the parties' retail activities, creating a common website of UK TV content accessible on demand to consumers. It will also bring together the parties' wholesale activities, which consist of syndicating the content rights to third parties that offer VOD services.
According to the OFT, concerns arise because the concentration of important and competing libraries of UK TV programming included in the project may give distorting market power to the joint venture, enabling it to charge higher prices in syndicating content to wholesale customers, and potentially raise download-to-rent (DTR) and download-to-own (DTO) prices paid by VOD consumers, or limit the range of ways in which viewers can watch the parties' content on demand.
The OFT said it had "carefully considered all evidence as to whether the joint venture would face enough competition from other sources," such as one or more ways of watching the same UK TV content elsewhere (say, by video recording off the TV, or DVD rental or purchase), watching competing content (such as hit U.S. TV series, Hollywood and other films), or a combination of watching different content in a different way.
In order to try and avoid the reference, the parties did offer remedies, but the OFT did not consider their scope sufficient to resolve its concerns in a clear-cut fashion.
In response, the project partners said they were "naturally disappointed by the decision from the OFT and are frustrated that it will delay the launch of Kangaroo, however all parties remain committed to what the venture offers." They remained confident that when properly subject to more detailed scrutiny by the Competition Commission, it would conclude that the joint venture will provide wider choice for consumers and be seen as a pro-competitive force in the market place. "Our aspiration is that Kangaroo will offer a wealth of British content and provide an example of UK innovation and collaboration for the benefit of consumers and advertisers alike," they claimed.
ITV said the referral to the UK Competition Commission of a new video-on-demand service was likely lead to a delay in its launch. "The reference process is likely to take several months and the service is therefore unlikely to launch on the previously anticipated timetable."
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In a surprise move News Corp has made a deal to become the minority shareholder in its conditional access subsidiary NDS. Two newcos backed by private equity house Permira will take the business private.
The plan is the Permira newcos will own 51 per cent while News will keep 49 per cent. The deal has been struck at a 21 per cent premium to the companies Nasdaq share price. News Corp had owned 72 per cent, with the balance in float, but the ownership structure made it difficult for News to access the cash NDS generates – it presently has nearly $700 million cash at hand.
The deal has been negotiated with News Corp and NDS management, and will now go before a special independent committee of the NDS board. News Corp.'s take from the deal will be $1.7 billion in cash and debt, the company said.
News Corp. said the deal represents an "attractive alternative" for public shareholders to cash out of an "illiquid investment at an attractive price."
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Sky questions BBC programme bids
BSkyB has said that the BBC should not be allowed to bid for Hollywood films or US TV series and that Channel 4's claim of a potential £150 million (E187.5m) funding gap is "open to challenge", in its submission to Ofcom's second review of public service broadcasting.
BSkyB said the BBC was obliged to focus on areas the market was not serving well, "where there is a real deficit in provision". "The BBC should step back entirely from other areas. In particular, there is no justification for the BBC using public money to outbid commercial broadcasters for Hollywood films and US series," the company added.
BSkyB said the fact the BBC was spending £100m a year on acquired programming and "appears to be increasingly aggressive in this area" is a "clear signal that its existing remit and governance structure is fundamentally flawed".
The satellite broadcaster is also sceptical of Channel 4's claim that it cannot continue to deliver its PSB obligations without the equivalent of as much as £150m a year in support. "This proposition is open to challenge. After all, its revenues have continued to grow overall, by nearly 25 per cent over the past four years, even as competition has increased," Sky said.
The satellite broadcaster's argument is that there is "no evidence of an impending crisis" in the provision of UK public service broadcasting and that the debate has "consistently failed" to take into account the role of multichannel TV and the Internet in providing high-quality content.
Sky also said the assumption that ITV and Five should be able to drop their public service broadcasting obligations as the value of analogue spectrum subsidies dwindle, needs to be looked at more closely.
"After all, spectrum used for terrestrial television broadcasting, including gifted digital terrestrial television [Freeview] capacity, is scare and remains highly valuable, as Ofcom points out frequently," the satellite broadcaster said in its submission.
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Portugal Telecom tops DTT tender
From Branislav Pekic in RomePortugal Telecom has been placed first by the commission that evaluated the bids for the DTT platform for pay-TV channels.
Portuguese telecommunications sector regulator Anacom announced on June 27th that Portugal Telecom obtained 85 out of a total of 100 points, while Sweden’s Airplus TV was awarded 57 points. The technical and financial criteria weighed in with 60 per cent, while the TV offer corresponded to 40 per cent.
The two competitors now have 10 working days to respond to these findings. Only after the consultation period is over will a final decision be reached, although in the majority of the public telecommunications tenders in Portugal, no changes resulted.
In its bid, Portugal Telecom promised national coverage in 18 months, the commercial launch of the service in April 2009, a pay-TV offer that includes new thematic channels, VOD and PPV. The operator plans to subsidise the acquisition of set-top boxes for low-income families, citizens with special needs and charities.
The result of the tender for the free-to-air DTT multiplex will be announced on July 24th but no surprises are expected, as Portugal Telecom is the sole bidder.
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Record-breaking TV deal for SPL
The Scottish Premiere League has agreed a landmark four year deal with Setanta Sports for live domestic broadcasting rights.The £125 million (E166m) deal will extend the current partnership from the start of season 2010/11 through to the end of season 2013/14. 60 games will be covered live each season for broadcast across the UK and Ireland.
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Court upholds FCC on cable rules
A federal appeals court has upheld the Federal Communications Commission's authority to make rules intended to increase cable television competition in the US.
Local governments had filed legal challenges to agency rules the FCC said would speed the approval process for new competitors, cap fees paid by new entrants to local governments, and ease requirements that competitors build systems that reach every home. The lawsuits said the FCC overstepped its authority.
A three-judge panel ruled unanimously for the FCC. It said the agency showed the local franchising process was ''unreasonably impeding competitive entry into the cable television market.''
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In-Flight DBS revenue $900m+ by 2012The market for in-flight live direct broadcast video revenue is projected to grow to $913 million in 2012, according to research by MultiMedia Intelligence. With revenue of $87 million in 2007, live in-flight video promises impressive growth.
"The current environment of increasing fuel prices and downward pressure on fares has been painful to the airline industry," according to Amy Cravens, contributing analyst with MultiMedia Intelligence. "The result has been that airlines have been aggressively pursuing new revenue streams. In-flight live direct video broadcast services are 'a no-brainer,' offering a value service to passengers and new revenue to the P&L."
Even with the current constraints in the airline industry, usage revenues are still anticipated to nearly double in 2009. The majority of video deployments are with a single player, LiveTV, with Panasonic being their largest competitor.
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OpenV obtains licenceOpenV, China's largest Chinese-language Internet TV and Video content provider has obtained from the State Administration of Radio, Film and Television a Licence for Publishing Online Audio-Visual Programmes. Industry experts believe that the issuance of the Video License will accelerate standardisation of the online video industry while promoting market growth.
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Sigma for Adcom STBsSigma Designs, a provider of digital media processing and wireless system-on-chip solutions, and Advanced Communications (Adcom), a Japanese communications technology company, have confirmed that Sigma's integrated SMP8654 media processors will be used to power Advanced Communications' IPv6 STBs currently being deployed by throughout Japan.
The companies have also entered into a collaborative relationship to develop IPTV set-top boxes for the Japanese market based on Sigma's SMP8654 media processor and Adcom's iSense IPTV software platform solution.
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Two Way and Virgin gaming channelVirgin Media Television has agreed a deal with Alderney-based betting specialist, Two Way Gaming, which will see the broadcaster launch a sister channel to the long-established Challenge. The new channel, Challenge Jackpot will be broadcast on Virgin Media’s UK cable network. The channel’s output post-midnight will also be broadcast on Virgin1 and Bravo2, extending its reach to Freeview and satellite viewers. Challenge Jackpot will be a gaming channel allowing viewers to watch or play along with a variety of casino games.
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Oki audience ratingOki Electric Industry has developed the "Audience Rating Information System" for IPTV, which will be offered to the Japanese market. The system collects viewership data to enable broadcasting companies to improve their services.
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Widevine secures Viginta's DTT video serviceWidevine Technologies has announced that leading Lithuanian multichannel television, telephone and Internet service provider Viginta has selected Widevine Cypher to secure content delivered over DTT, hybrid QAM (cable) and IPTV deployments. This marks the first time downloadable conditional access and DRM has been implemented in a one way DTT network, drastically reducing the time and cost associated with maintaining consumer device security.
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Monday 30th June
News Corp: European pay-TV spree?
BBC web video device?
BBC DVB-T2 tests prepare for HD on Freeview
25 bids presented on Italian DTT tender
IPTV providers must push PPV and VOD
Tiscali portal launches EPG
FLO approves conditional access standard
Demand for new content driving growth of African pay-TV
NBC streaming data for advertisers
Teleste receives Digicable order
News Corp: European pay-TV spree?James Murdoch, head of News Corp TV in Europe, is said to be considering bids that would bring Premiere of Germany and Digital+ of Spain into the group’s European pay-TV family. The two satellite broadcasters together would cost more than E4 billion analysts say.
Although News Corp is already a shareholder in Premiere and has been mentioned in connection with Digital+, a bid for both is a stretch and the story in the WSJ had no named sources, however the WSJ is now owned by News Corp, so one can assume its sources are well informed. The story will certainly be useful in testing market and regulatory reaction in the countries concerned.
In Germany News Corp already owns 25.01 per cent of Premiere and is looking to install its management. In Spain, media conglomerate Prisa is considering selling its Digital+ unit. The sale process is likely to begin by the end of July. Other possible bidders include Vivendi, Spanish cableco ONO, and Telefónica.
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BBC web video device?The BBC is developing plans to bring its web video iPlayer catch-up service to television screens, in a move that would take its online ambitions to a new level and pit the corporation against technology groups such as Apple.
Mark Thompson, BBC director-general, told the FT it was "looking very hard at" forming an alliance to introduce "a very simple standard" for getting online video from computer screens on to standard televisions.
Similar devices such as Apple TV have been on sale for some time but have not gained a mass following. "There are many things out there in the market, but what we haven’t yet got is a simple standard, to mean that you can get services like iPlayer and Kangaroo," said Thompson.
As the BBC has demonstrated with Freeview and iPlayer, its universal reach and unmatched promotional power can take products that have been peripheral (like On Digital or numerous internet video players) and make them universal.
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BBC DVB-T2 tests prepare for HD on FreeviewThe BBC has begun DVB-T2 test transmissions today, from the Guildford transmitter southwest of London, in preparation for HD on Freeview. The transmission facilities are provided by National Grid Wireless and Arqiva as part of their support for the DVB standardisation process and the UK project for the launch of DVB-T2 services.
This follows the approval by the DVB Project of the DVB-T2 specification and this will be the first time signals compliant with the DVB-T2 specification will be broadcast. DVB-T2 is the next generation digital terrestrial transmission standard for new HDTV services on Freeview. Currently, Freeview services use the DVB-T standard which was defined more than 10 years ago. DVB-T2 can provide significantly more capacity and this will be essential for HDTV services to be launched on Freeview, currently planned for the end of 2009. The DVB forecasts the use of DVB-T2 will result in capacity gains of up to 45 per cent. Ofcom is counting on the extra bandwidth released by development of the standard to put its HD plans into action.
Justin Mitchell, leader of the DVB-T2 modem development team at the BBC, said: "We are delighted that our team in collaboration with our partners has been able to deliver such a key piece of technology in such a short timescale. This is a big step forward in enabling the introduction of full HD terrestrial on Freeview by the end of 2009.".
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25 bids presented on Italian DTT tender
From Branislav Pekic in RomeA total of 25 bids have been submitted for as many TV channels on the tender organized by Italian telecommunications regulator (AgCom) to award 40 per cent of capacity on five Italian digital terrestrial TV multiplexes.
The bids were submitted by 17 companies, and a special commission will now evaluate the bids before announcing the winners on August 23. A total of 12 TV channels will be awarded on one multiplex belonging to state broadcaster RAI and two multiplexes each operated by commercial broadcasters Mediaset and Telecom Italia Broadcasting.
The list of bidders reads like a who’s who in broadcasting. The Disney group has requested one channel, while Jetix Europe, in which it has a 75.7 per cent stake, has requested another. Turner, ESPN and QVC have each requested one channel, while the NBC Universal group is seeking two channels, one of which is likely to be used by movie channel Studio Universal. Experienced European pay-TV operators, Sweden’s AirPlus TV and the UK’s Top Up TV, have also submitted bids, with the former requesting six TV channels.
Italian companies and broadcasters taking part on the tender are thematic channel producer Sitcom, financial information publisher Class Editori, the Consorzio Alphabet consortium (made up of Elea-De Agostini group and Interattiva), Anica Flash (cinema and entertainment info), Rete Blu (belonging to the Italian Catholic Church), sports rights broker Infront Italy, as well as local TV channels Telelombardia, Antenna 3 Nord Est and Altitalia TV.
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IPTV providers must push PPV and VODAlthough consumers are increasingly prepared to have some form of pay-TV in their household, getting more consumers to order and then regularly view pay per view (PPV) or video on demand (VOD) remains a key challenge for service providers, according to a recent survey by Gartner.
In the fourth quarter of 2007, Gartner surveyed 5,800 consumers, covering 18 countries and territories, and found that approximately three-quarters of all worldwide respondents had some form of pay-TV in their households, yet less than one-quarter of all respondents purchased either PPV or VOD content within the past year.
The research indicates that globally, the average consumer spends 22 hours per week viewing entertainment television; of which 16 hours per week is spent watching TV and six hours watching DVDs or videotapes. Furthermore, 39 percent of all survey respondents had downloaded some form of video content (moves, TV shows and video clips for example) in the past three months.
Gartner maintains that tapping into this established behavior and providing alternate solutions to satisfy demand is essential in earning incremental revenue for IPTV. "Consumers already value DVD and videotape purchases and rentals, so getting them to transfer this behaviour or habit over to IPTV subscriptions is a key strategy in developing revenue," said Amanda Sabia, principle research analyst at Gartner. "Providers need to ensure that ordering and navigation processes for PPV and VOD are easy to understand and user friendly. They should also offer competitive pricing, free trials and a wide range of titles, making sure they include various unique and most-recent versions."
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Tiscali portal launches EPGTiscali has launched its Electronic Programme Guide (EPG) available through its portal. The EPG is designed to be an essential TV guide and planning resource for users of any digital TV service – including Tiscali’s own Tiscali TV, Virgin Media, Freeview and Sky.
The Tiscali guide is the first online listings service to include full details of over 170 channels and TV content available through on-demand channels like 4OD, giving viewers the chance to search through listings of every TV show or film stored on each.
The guide enables users to personalise the service to the channels and features they are most interested in. Users can select the channels they want to view, set reminders, pick favourite shows and receive recommendations based on their personal preferences. The service also includes interactive elements allowing users to rate programmes and comment on them.
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FLO approves conditional access standardThe FLO Forum, a body of more than 95 supporting global wireless industry leaders and dedicated to the open standardisation of FLOTM (Forward Link-Only) technology for mobile multimedia broadcast, has taken another step forward with the approval by the Telecommunications Industry Association (TIA) of the Forward Link Only Open Conditional Access (OpenCA) Specification.
The completion of the OpenCA Specification, published as TIA-1146, creates a standards-based environment that enables multiple vendors to implement content security systems within the FLO architecture. The specification is the eighth FLO standard approved by the TIA, following the publication of TIA-1130 Forward Link Only Media Adaptation Layer Specification earlier this year.
The OpenCA specification provides a standard interface for conditional access (CA) systems to interoperate, ensuring that FLO network operators have the flexibility to use multiple CA solutions. Through the standard interface, they can replace an entire CA system seamlessly with another system, or run multiple systems concurrently in a "Simulcrypt" setting. This provides operators with greater control to respond to changing security demands or business model requirements. The framework also enables content providers to offer a wider choice of premium mobile content while reducing the risk of piracy, and thus helping to create a compelling end-user mobile TV experience.
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Demand for new content driving growth of African pay-TVAfrican digital TV consumers are seeking more localised content from the pay-TV industry, and operators are answering the call by developing business models to meet this growing market’s demands, according to IMS Research.
Sub-Saharan consumers previously limited to only South African content can now enjoy local programming from other countries because of the rise of new national and pan-regional African pay-TV operators such as HiTV and Gateway. Competition between major DTH operators is resulting in channel line-ups that offer international, country- and language-specific broadcasting to appeal to larger African audiences.
Over the years, African consumers‚ interest in international content has shifted toward a focus on local and national programming. Operators such as Nigeria’s HiTV and Trend TV, which are seen as more culturally in touch with the tastes of African TV viewers, have been proactive about marketing local programming. Growth of content production facilities dedicated specifically to native content has made new programming available, and as a result Africans no longer need to rely on European or American programming for entertainment. Interest in sports content in particular influences demand for services such as Gateway‚s GTV, one of the only services authorised to broadcast English Premiere League football in Africa.
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NBC streaming data for advertisersNBC Universal has announced its NBC TV network will next month become the first to make programme-specific streaming data available to advertisers, who will be able to compare demographics from such US hit shows as Heroes and The Office. Data will be provided to advertisers by Nielsen Online's VideoCensus measurement system.
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Teleste receives Digicable orderTeleste has been selected by Digicable Network in India to deliver their new compact IP-based digital television platform. The value of the initial order is E12 million. Digicable will provide an advanced portfolio of digital interactive television services over a Head End in the Sky (HITS) satellite distribution network. The solution provided by Teleste will provide both IPTV and DVB-C based television.
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