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Tuesday

Friday 13th March

RTL writes down Five by E337m
Spain's ONO forecasts break even
Sirius subs up 10%
French debate anti-piracy bill
Pay-TV resists recession
Multi-platform solution from Osmosys
TVN to take control of pay-TV platform
Inmarsat earnings up
Subs rise fuels STB growth
VOD to standard TV
Telsey BLOBbox
Hathway launches cable DVR in India with NDS



RTL writes down Five by E337m

Gerhard Zeiler CEO of RTL Group said it would allow the government to retain a majority stake in any merger with Channel 4, as he wrote down the value of the UK channel by E337 million slashing its value by half. Zeiler stressed he is committed to the UK and said a merger between Five and Channel 4 has "industrial logic".

Zeiler was speaking at the announcement of annual profits for RTL Group plunged to E194 million from E563 million, mainly due to the writedown of Five by E337 million. It now values the business on its balance sheet at E252 million.

The Five group of channels saw revenues decrease 13.4 per cent to E432 million last year, as a result of the plunge in the value of the pound against the euro. In local currency, revenues before financial charges were flat at £341 million. Five's profits dropped from E35 million in 2007 to E16 million last year, while its digital channels saw losses reduce from E25 million in 2007 to E14 million last year.

"The UK is incredibly difficult, probably the most challenging of all the Western European countries besides Spain," he said. "If I can quote Michael Grade, I think there is an intelligent debate to be had in the current environment... about consolidation."

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Spain's ONO forecasts break even
From David Del Valle in Madrid

Spain's largest cable company ONO has reduced by 87 per cent its losses in 2008 to E26 million and now hopes to end the current year breaking even.

ONO's EBITDA was E703 million, up 10.6 per cent. Total revenues were 0.8 per cent down to E1.603 billion, with residential revenues increasing by 3.6 per cent up to E1.219 billion and ARPU of E53.2, up 1.9 per cent.

ONO ended the year with 1,853,000 subs, down 0.3 per cent. There were 632,000 for triple play, TV subscribers grew by 8.2 per cent up to 1.039 million, adding 79,000, with broadband subs increasing by 6.7 per cent up to 1.283 million.

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Sirius subs up 10%

Satellite radio provider Sirius XM reported that its revenues increased 16 per cent in the fourth quarter, its first full quarter as a combined company, to $644 million and were up 18 per cent for the full year 2008 to $2.44 billion.

Also, despite the bailout investment from Liberty Media, the company said it posted positive adjusted income from operations for the first time in Q4, reporting a $32 million profit as opposed to the $224 million loss it reported for the same period last year.

Sirius XM expanded its subscriber base in 2008 by 10 per cent year-over-year to end the year with about 19 million users, though the pace of that growth slowed in the fourth quarter to only 83,000 net net subs.

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French debate anti-piracy bill

France's culture minister has defended a new bill clamping down on Internet piracy that is backed by music artists but opposed by consumer groups. The proposed "creation and Internet law" has stirred controversy over a provision allowing a state agency to cut off Internet access for up to a year to those caught illegally downloading more than twice. Culture Minister Christine Albanel argued the punishment was not too harsh and noted that it replaced current provisions that call for up to three years in prison and E300,000 in fines.

The bill "does not aim to eradicate completely the mass phenomenon that is piracy of cultural products on the web," said Albanel. "It aims rather to create awareness, to shape a new mindset among Internet users with regard to cultural diversity and the economic and legal conditions necessary to preserve it."

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Pay-TV resists recession

According to a study by Rider Research, the economic situation hasn't slowed growth in the US pay TV market. In fact, the number of US TV subscribers actually increased by 362,000 in the fourth quarter of 2008, led by the telcos with 567,000 net adds. The satellite providers added 199,000 net thanks to DirecTV's 301,000 increase while the cable incumbents lost 404,000 total.

According to Rider, the top three overall were Verizon with 303,000 net additions, DirecTV with 301,000 and AT&T with 264,000. On the flipside, Comcast lost 233,000 subscribers in the fourth quarter, followed by Time Warner Cable with 197,000 and Dish Network with 102,000.

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Multi-platform solution from Osmosys

Open standards interactive TV solutions developer Osmosys is launching its MHP 1.2 software, designed to provide enhanced TV functionality and help bridge the worlds of broadcast and IP video. The solution enables operators to provide next generation TV services and supports advanced features on networks with always-on Ethernet connections, as well as being compatible with terrestrial, satellite, cable and IPTV services.

"This is the first version of MHP that has been developed to specifically enable network operators to deploy sophisticated applications and services across any network," said Paul Bristow, CTO, Osmosys. "We have responded to operators’ needs and have developed our implementation of the MHP 1.2 standard to provide advanced broadband capabilities that are totally under the control of the network operator." David McElhatten, CEO, Osmosys suggested the software would support operators in achieving two crucial aims: reduce churn and enhance revenue-generating opportunities.

MHP 1.2 enhancements include IPTV support, a provision for unbound applications such as caller ID and targeted messaging, Switched Digital Video and other Tru2way (US Cable standard) and OCAP features.

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TVN to take control of pay-TV platform

TVN, Poland's largest listed media group, has agreed to take control of pay-TV platform 'n' by buying an additional 26 per cent stake. TVN, which angered investors when it bought 25 per cent of Poland's smallest satellite operator last year, said in a statement it would pay ITI Group as much as E106 million to raise its holding to 51 per cent.

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Inmarsat earnings up

British satellite communications firm Inmarsat has reported its 2008 earnings grew 12.5 per cent, in line with forecasts, and said it saw solid revenue growth in 2009.

The company, which owns 11 satellites providing mobile phone and broadband coverage around the world, posted EBITDA of $431.6 million last year, on revenue up around 14 per cent at $634.7 million.

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Subs rise fuels STB growth

Comms industry market researcher Dell'Oro Group, has reported that the global IPTV subscriber base grew by 3.2 million in the fourth quarter to reach 23 million subscribers at the end of 2008, nearly double the number at the end of 2007.

While Europe, Middle East, and Africa remained the largest market for unit shipments of IPTV set-top boxes, North America drove the market's revenue growth in the fourth quarter as AT&T and Verizon continued to aggressively promote their television services.

"While the IPTV set-top box market continues to grow despite price declines, the cable and satellite set-top markets have begun to contract," said Greg Collins, vice president at Dell'Oro Group. "For 2009, we are expecting that unit shipments for all segments will increase with a higher percentage of units being high definition capable with a slowing in the trend toward integrated DVRs due to increased use of set-top boxes with multi-room DVR functionality," he added.

According to Dell’Oro, during the quarter, Motorola and Cisco remained the top vendors in both the cable and IPTV markets, with Cisco gaining share in cable and Motorola gaining in IPTV. In the fourth quarter, Thomson maintained the top position in terms of satellite STB unit shipments, followed by EchoStar and Pace.

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VOD to standard TV

Tandberg Television, Sony, Neotion and Strategy & Technology (S&T) have combined their industry expertise to deliver a VOD solution that enables cable operators to deliver network-based time-shift services and targeted adverts direct to the TV, without the need for a set-top box.

The breakthrough industry collaboration allows standard TVs to support VOD right out of the box. This results in lower deployment costs for cable operators, who can avoid set-top box purchase and installation. Consumers benefit from reduced energy usage in the home and faster service availability.

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Telsey BLOBbox

TVBLOB and Telsey have began shipping the BLOBbox, a hybrid set-top box for analogue and HD televisions that allows users to watch and record digital terrestrial television (HD PVR, built-in HDD), download podcasts using Miro and BitTorrent, as well as browse services like YouTube and Gmail.

Unlike other set-top boxes already on the market, users are not limited to watching content only from premium providers, but instead enjoy access to popular web services, in addition to play, watch and browse all of the content that they already have on their PC or home network.

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Hathway launches cable DVR in India with NDS

NDS has confirmed that Hathway, the leading digital cable provider in India, has launched its Digital Box PLUS DVR solution, based on NDS XTV DVR technology.

The NDS XTV DVR solution gives Hathway subscribers the ability to record one television channel while viewing another one. With NDS XTV DVR, Hathway delivers a variety of content and on-demand digital television to viewers, and is well positioned to offer additional, advanced, next generation solutions in the future.

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Thursday 12th March

Carter not ‘net neutral’
Phorm new execs and political fans
Google goes behavioural
Traditional TV ad revenue could fall by 75%
Stopping piracy could generate millions for UK
US consumer spending on TV services to suffer
NBCU shows on Playstation
China Digital TV reports Q4
UK stands by product placement ban
Canadian cable providers debate distribution
Hellas Online launches IPTV service
TeleClub selects NDS VideoGuard
Vizimo API-based service suite



Carter not ‘net neutral’

Talking before a UK Parliamentary committee Comms Minister Lord Carter continued to hint net neutrality would not be a foundation of his Digital Britain report.

Having already assured BT its investment in NGN would be recognised and protected, he said "Our emerging view is that it is not unreasonable for a network provider to be able to differentiate in its pricing and charging for services. It gets slightly more complicated when you get into the question of active filtering and traffic management but the differentiation of pricing depending on speed of delivery I think is perfectly legitimate."

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Phorm new execs and political fans

Phorm, the provider for behavioural advertising systems to ISPs, has made two senior appointments to help it win ISPs over: Sarah Simon comes in as financial and strategic development officer, joining from Morgan Stanley, while former digital general manager at Telegraph Media Group Mike Moore joins as global commercial director.

Despite extensive trials with BT, Phorm has yet go live in the UK, let alone globally and other potential triallists like Orange and Guardian Group have back-pedalled on privacy concerns. Chief exectuive Kent Ertugrul recently said Phorm's Open Internet Exchange will "definitely be online by the end of the year".

Meanwhile UK Comms Minister Lord Carter said that targeted advertising could play an important role "I agree that Phorm is another example of an interesting and innovative business which is trying to provide a service to users and advertisers in a new market". Carter seemed to imply Phorm and others could be an important counterweight to the increasing dominance of Google in online advertising.

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Google goes behavioural

Google this week begins showing ads to people based on their previous online activities To try and forestall objections to its approach, Google said it planned to offer new ways for users to protect their privacy. Most notably, Google will be the first major company to give users the ability to see and edit the information that it has compiled about their interests for the purposes of behavioral targeting. Like rivals such as Yahoo, it also will give users the choice to opt out from what it calls "interest-based advertising."

Google’s foray into behavioural targeting may represent the most visible result so far of the company’s integration of DoubleClick, an advertising technology company that it acquired a year ago.

Google will use a cookie to track users as they visit one of the hundreds of thousands of sites that show ads through its AdSense program. Google will assign those users to categories based on the content of the pages they visit. Google will then use that information to show people ads that are relevant to their interests. The programme will first be tested with a few dozen advertisers.

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Traditional TV ad revenue could fall by 75%

Analysis carried out by Generator Research shows that revenue from traditional television spot ads will account for just 25 per cent of US television advertising by 2019. The result will be a market worth $13.1 billion in the down from $57.8 billion in 2008.

"This could be the beginning of a slippery slope for the television broadcasters who are about to experience what it means to lose control of a distribution monopoly, just like the music industry. The biggest losers will be the terrestrial networks who have no way of delivering their own ads over the Internet to television sets. This problem is solvable, but it will take a big effort," commented Andrew Sheehy, head of research at Generator.

Depending on strategic choices made by television broadcasters, these dramatic losses could be offset by three new types of customer-specific advertising that would be delivered over the internet to PCs, portable devices and-most important of all-to internet-connected TV sets. Generator finds that the future for ad-funded commercial broadcast television lies in delivering three types of targeted advertisements over the Internet.

The first type would be delivered to internet-enabled TV sets or set-top boxes and could account for 30 per cent of all television advertising by 2019, representing $1.8 billion in the UK and $17.6 billion in the US.
The second type would be where targeted ads are served to PCs or portable devices that can be used to view television content. According to Generator's projections, this second type of advertising could account for 24 per cent of all television ad revenue by 2019.
The third would be where a television broadcaster delivers scheduled programming using their existing broadcast infrastructure but where targeted commercials are delivered over the internet to broadband-enabled TV sets. This market could account for about 21 per cent of all television advertising revenue by 2019, or $12.1 billion in the US.

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Stopping piracy could generate millions for UK

The report from the body which represents the film industry has called for new measures - including tighter regulations on car boot sales, bans on cameras in cinemas and legislation to tackle illegal file-sharing. The study, carried out by Oxford Economics, found the changes could cut piracy losses to £268 million (E290m) a year.

Lavinia Carey, chair of Respect for Film, said: "Given the current state of the economy, these recommendations are a quick win for the Government given the positive impact they would have on the economy. Our sector isn't asking for a handout, but targeted legislation to reduce copyright theft and deliver over £600 million and support employment to the benefit of the UK economy. The film industry is a significant contributor to the UK's economy and, with the decline of other sectors, its importance is growing. The biggest drain on further growth is copyright theft."

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US consumer spending on TV services to suffer

US Consumer spending on Subscription-TV, broadband, and mobile services will be "about the same" for most consumers, but about 15 per cent intend to cut back. As a result, In-Stat estimates that consumer spending across these three segments could see nearly a $5 billion decrease during the next 12 months. Yet In-Stat’s recent survey reveals that broadband service is among the most integral parts of consumers‚ lives. Over 66 million consumers across demographic categories are using the Internet while camped out on their sofas watching TV.

"Some male age groups had 40 per cent to 50 per cent of respondents using a PC while watching TV, and about 30 per cent of females under the age of 40 are also using a PC while watching TV," says Gerry Kaufhold, In-Stat analyst. `"New approaches using online web portals synchronized to a TV programme will continue to develop, because they present no new costs. Cable TV operators also face increasing competition from lightweight services that deliver popular Cable programming, supplemented by content delivered via broadband"

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NBCU shows on Playstation

NBCU is to provide Sony with content for its Playstation Network. Under the deal, films from Universal Studios Home Entertainment and programs from NBC will be offered for download through the PlayStation 3 and PlayStation Portable in the US.
With the addition of NBC Universal, Sony said its video service now features more than 1,300 movies and 4,500 TV episodes. The content is being offered via the PlayStation Network, which has almost 9 million registered accounts in the US and more than 20 million worldwide.

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China Digital TV reports Q4

China Digital TV has reported net income for the fourth quarter of $12.2 million, lower than $12.9 million in the corresponding quarter a year-ago.

The company shipped approximately 2.66 million smart cards during the fourth quarter, an increase of 2.1 per cent from 2007 and an increase of 20.1 per cent from the third quarter of 2008.

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UK stands by product placement ban

The UK culture secretary, Andy Burnham, has rebuffed attempts by commercial broadcasters to allow product placement on UK television. Burnham said that the government's three-month consultation failed to produce a convincing case for product placement – which he said would blur the boundaries between advertising and content.

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Canadian cable providers debate distribution

Rogers Communication says proposals for a levy on Internet service providers in order to help fund Canadian content online would be illegal.

Internet service providers (ISPs) have argued against a tax on Internet services or broadband revenues to support the production of Canadian content for Web consumption. The Canadian Radio-television and Telecommunications Commission (CRTC) is now holding public hearings on if and how it should regulate the Internet in Canada.

ISPs argue that they are "pipes" rather than broadcasters and therefore any levy imposed on them under the Broadcasting Act would be, in the words of Rogers‚ representatives, "unlawful."

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Hellas Online launches IPTV service

Greek broadband operator Hellas Online has launched an IPTV service branded Hol tv. The service includes digital TV channels, time-shift viewing, an electronic programme guide and a video-on-demand.

Customers signing up before the end of May will see the activation fee reduced to E49.90 from E99 and pay E9.90 per month on a one-year contract, down from E15. The service is available only in areas covered by Hellas Online's unbundled local loop network. The company is using the Microsoft Mediaroom platform, Motorola set-top boxes and network equipment from Alcatel-Lucent.

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TeleClub selects NDS VideoGuard

NDS has confirmed that Teleclub, the leading pay-TV operator in Switzerland, has selected world market-leading NDS VideoGuard conditional access (CA) technology to secure its programming broadcast on its digital cable networks nationwide. The agreement represents the first customer win for NDS in Switzerland. Teleclub has over 80,000 digital cable TV subscribers across Switzerland. Teleclub has been a user of Nagravision.

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Vizimo API-based service suite

Personalised TV guidance developer Vizimo has launched an API-based service which enables any other service provider easily to add TV personalisation and recommendation into its own products - whether on a set-top box, web or mobile.

The three tiers of Vizimo’s new API-based service are: V-TV Free, which is open to any service provider, free of charge. V-TV Plus, which offers additional layers of sophistication including personalisation. And V-TV OD, which is an extension of V-TV Plus. Allowing recommendations may be drawn from on-demand sources as well as broadcast schedules.

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Wednesday 11th March

YouTube blocks UK music videos
Business leaders demand video on the move
Media outlets unite to battle online piracy
US mobile TV and video set for growth
SES shifts 2C craft
Broadband CPE market dips
5.4m add broadband from top telcos
EU regulations to affect Chinese STB exports
FiOS adds Turner Networks and Sony content
On Demand Greek IPTV line-up
MSOs join TW in supporting OEDN
Anevia Flamingo 700 gateway



YouTube blocks UK music videos

Google's online video site, YouTube, has confirmed it will block all music videos to British users after it was unable to reach a rights deal with the main songwriters' collection society. The world's largest video sharing site said PRS for Music, a British collection society that collects royalties on behalf of nearly 50,000 composers, was asking it to pay "many, many times" more than the previous licensing agreement that has expired.

"The costs are simply prohibitive for us - under PRS's proposed terms, we would lose significant amounts of money with every playback," the company said in a blog.

The move is the latest sign of the tension between YouTube and the music industry and also indicates the video site's resolve to keep operating costs under control as it strives to generate meaningful profits for Google. YouTube said PRS was also unclear about which songs are included in the renewed licence.

The fallout could further extend to MySpace and similar video-sharing sites.

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Business leaders demand video on the move

A consumer behaviour study by Ericsson and CNN has revealed that the international business elite are increasingly accessing the Internet while on the move. The growing need for flexible viewing options to fit with changing lifestyle habits means that top executives are increasingly viewing TV content on lap-tops, desktop computers and mobile devices. The survey, carried out amongst CNN’s online audience, also showed that more business leaders than ever are sharing user-generated video content.

Fifty six per cent of respondents with mobile Internet, access online content whilst on the move for example, via a mobile device or wireless LAN. This trend speaks to the increasing number of upscale consumers with Internet access outside of the home or office environment.

Three quarters (73 per cent) of CNN’s online audience of global citizens share user-generated video content. In fact, 66 per cent of those over 45 share user-generated video content, de-bunking the myth that it is just an activity for the youth. Almost a third (29 per cent) of those surveyed record video clips on their mobile phone. In a nod to the sharp rise of citizen journalism, and perhaps in response to the growing number of social platforms enabling video sharing exchange, 16 per cent of respondents are sharing user-generated video content are doing so with other digital community members.

Sixty seven per cent of those surveyed say their TV viewing on PC (desktop or laptop) has increased in the past three to four years and almost a quarter (23 per cent) say their TV viewing on mobile devices has increased over the same period. Flexibility (71 per cent) or the desire to catch up on missed content (51 per cent) were cited as the main reasons for watching TV content on the PC.

Branded websites are the most popular online destinations for survey respondents accessing TV content online. Broadcaster websites (60 per cent) emerged as the number 1 choice for accessing TV content online. This is followed by broadcaster sections on video sharing sites such as YouTube (13 per cent).

Television remains the most popular viewing device for CNN’s audience of global citizens. Thirty-five per cent watched their television set for more than 10 hours a week, whereas viewing for this length of time is considerably lower for PC (9 per cent) and mobile devices (5 per cent).

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Media outlets unite to battle online piracy

The rising tide of piracy of live video streams of major sporting action, using peer-to-peer technologies, has prompted MLB Advanced Media, among others, to mount a coordinated defence strategy.

Several major US sports properties, including the NFL, NBA, NHL and NCAA, and major media outlets including Walt Disney Co., News Corp. and NBC Universal, have organised under the leadership of MLBAM to form The Sports Coalition, a group that is pressing government trade and intellectual property officials for more stringent trade policy with regard to piracy. The group also has an international component. Several European-based properties are participating via the Sports Rights Owners Coalition, a collective similar to the BAM-organised one and spearheaded by the English Premier League.

"In 2008, online live game telecast piracy went up in spite of notable enforcement successes," said Michael Mellis, MLBAM senior vice president and general counsel. MLBAM documented more than 5,000 incidents last season of live MLB games being pirated online, a sharp rise from the 3,200 seen during 2007. "There is a close and healthy collaboration among US and European sports properties about how to approach this challenge."

The sports coalition efforts, operating mostly below the public radar for more than two years, have focused on pressing US and foreign governments to make online piracy a more overt priority of trade and intellectual rights policy.

"For media and entertainment entities such as Disney, this is another chapter in the fight given what they've experienced in the music industry," Mellis said. "For sports, this is a newer focus, but we feel like we've established a leadership position on this issue. We have recognised the problem and will remain vigilant to stay ahead of the curve."

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US mobile TV and video set for growth

Mobile TV and video solutions provider QuickPlay Media’s second annual independent Market Tools survey - focused on mobile TV and video consumption in the US - shows that consumers are confident in the uptake of mobile TV and video, with 78 per cent expecting an increase in usage by 2010. Additionally, the number of people watching TV and video content on their mobile device has remained steady from 2008 to 2009 at 35 per cent.

For those who have not tried a mobile TV and video service, perceived cost continues to represent the biggest barrier to adoption with 58 per cent indicating that it is the number one reason they have not viewed TV and video on their mobile phone. Looking ahead, the survey revealed a significant level of interest in mobile TV and video and that overall awareness is on the rise

Specific findings include: 55 per cent of respondents stated they are interested in mobile TV and video; Nearly half (46 per cent) of respondents are aware that their carrier offers a mobile TV and/or video service, a clear improvement from the 35 per cent seen in the 2008. This change provides a strong indication that video services are benefiting from the extensive marketing efforts around multimedia-enabled devices such as the iPhone and Blackberry Storm, suggests QuickPlay Media.
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"These results corroborate other recent research from IDC and Nielsen, both of which provide strong indication that the mobile TV and video industry is gaining momentum," said Wayne Purboo, president and CEO, QuickPlay Media.

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SES shifts 2C craft

SES Astra is to move the Astra 2C satellite from its current orbital position at 28.2 degrees East to 31.5 degrees East to take over the mission of Astra 5A which is no longer in service.

Astra 2C will be moved to 31.5 degrees East in April 2009 and will remain there for approximately one year. In the meantime, the services transmitted via 28.2 degrees East will continue to be broadcast from the other satellites co-located at this orbital position. Astra 2C will be able to operate 24 BSS transponders at 31.5 degrees East, thereby continuing the commercialisation of this orbital position.
Following the launch of Astra 3B in the fourth quarter of 2009 and its subsequent deployment, another in-orbit satellite will be moved to 31.5 degrees East, permitting the return of Astra 2C to 28.2 degrees East and to enhance capacity at this orbital position.

Ferdinand Kayser, President and CEO of SES Astra, said the move demonstrated SES’s strong commitment to develop 31.5 degrees East into an important position, especially for Central and Eastern Europe, and at the same time allowing the redeployment of Astra 2C at 28.2 degrees East, after the launch of Astra 3B, in order to serve the growth in the UK market, particularly coming from High Definition (HD) broadcast services.

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Broadband CPE market dips

Communications market research firm Infonetics Research has released the fourth quarter edition of its Broadband CPE and Subscribers report.

"In the fourth quarter of 2008, a slowdown in broadband subscriber growth caused worldwide manufacturer revenue to decline five per cent for DSL CPE, and two per cent for cable CPE. 2009 will be a challenging year for operators trying to secure new subscribers who are increasingly unwilling to upgrade their current services," commented Jeff Heynen, Directing Analyst, Broadband and Video, Infonetics Research

"The bright spot in the market continues to be the fast-growing digital home gateway segment, as more and more telcos use them to bundle IPTV into broadband services to increase ARPU. While 2009 will be a challenging year for broadband CPE vendors, the long-term forecast is good. Broadband connections to deliver converged services - voice, video, and high speed Internet now, and home monitoring and automation services later - will grow at a healthy clip from 2010 to 2013," he added.

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5.4m add broadband from top telcos

Leichtman Research Group (LRG) has found that the twenty largest cable and telephone providers in the US - representing about 94 per cent of the market - acquired over 5.4 million net additional high-speed Internet subscribers in 2008.

Annual net broadband additions were down compared to the 8.5 million in 2007, and the peak of 10.4 million in 2006, and were the fewest in the seven years that LRG has tracked the broadband industry. The top broadband providers now account for nearly 67.7 million subscribers with cable companies having 36.9 million broadband subscribers and telephone companies having 30.7 million subscribers.

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EU regulations to affect Chinese STB exports

The Shenzhen Bureau of Quality Supervision, Inspection, and Quarantine revealed that the European Union's new environmental regulations for simple set-top boxes (STBs) will directly affect China's STB export business, which is valued at nearly RMB 10 billion (E1.14bn).

A spokesperson for the bureau said that China currently produces more than 50 million STBs every year and that the industry is growing at an average of more than 50 per cent every year. Seventy per cent of the products are used for export - more than half of all global exports - and the majority are exported to the European Union. An investigation found that to satisfy the new EU standards, each unit would have to go up in price by approximately one or two Euros, or about 10 per cent of the unit sale price.

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FiOS adds Turner Networks and Sony content

Verizon’s FiOS TV is adding more content to its video-on-demand library through programming deals with Turner Networks and Sony.

Programming from eight Turner channels - Adult Swim, Boomerang, Cartoon Network, CNN, TBS, TNT, TruTV and Turner Classic Movies - now provides fresh content to Verizon's robust VOD lineup.

Verizon's agreement with Sony means FiOS TV customers will now enjoy more recent film releases in high definition (HD), including ‘Hancock’ and ‘Pineapple Express’. FiOS TV HD VOD allows customers to watch the latest movies in HD without the need to purchase additional equipment.

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On Demand Greek IPTV line-up

SeaChange subsidiary the On Demand Group has released details of the VOD and subscription VOD content line-up for the Hellenic Telecommunication Organisation (OTE) ‘conn-x TV’ IPTV launch.

OTE’s FilmExpress transaction VOD (TVOD) service includes blockbuster movies from major Hollywood studios including Disney-ABC-ESPN Television, Universal Studios, Paramount Pictures, and Warner Bros.

OTE’s FilmClub subscription VOD (SVOD) service includes a wide range of TV series from CBS, HIT, Lions Gate and Warner Bros as well as documentaries from National Geographic. The SVOD service also includes library movies from HBO, Lions Gate, Paramount Pictures and Warner Bros., and hundreds of international and local music videos from EMI, Universal Music and Sony Music. Subscribers will also receive more than 30 digital broadcast channels.

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MSOs join TW in supporting OEDN

OEDN (The OCAP/EBIF Developer Network) has confirmed that its charter sponsor - Time Warner Cable - has been joined by four additional cable multiple system operators (MSOs) in its efforts to promote interactive television (ITV) application development for digital cable. Those four companies are: Bright House Networks, Cablevision Systems, Charter Communications, and Liberty Global, Inc.

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Anevia Flamingo 700 gateway

Anevia, a video service infrastructure provider, plans to make VOD more accessible to the hospitality market, with the launch of its Flamingo 700 gateway solution gathering VOD and Live TV. Flamingo 700 simultaneously delivers Live TV channels and on-demand video content such as movies or music concerts, to TV or computers.

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Tuesday 10th March

Sky: "C4 screwed itself up"
Tiscali sale to BSkyB abandoned
DT IPTV glitches?
UPC slims in CE
DTG to launch 3DTV consultation
Info-TV-FM wins DVB-H licence
BBC and BFI bring archives to life
Seven to deliver TiVo downloads
Ofcom broadband league
NXP to power Amstrad HD DVR
Smartphones to account for 23% of new phones



Sky: "C4 screwed itself up"

BskyB has bluntly blamed C4 for being the architect of its own demise. In an unforgiving response to comms minister Lord Carter’s interim Digital Report, it claims Channel 4 has wasted millions of pounds on failed business ventures and could be profitable if it was better run.

BskyB says Channel 4 wasted £270 million (E309m) on "unprofitable non-core commercial activities", including an ill-fated investment in digital radio, and argues that the government should step in to prevent it from making further "poor" investments.

Channel 4 claims it is facing a shortfall of up to £150 million because of falling advertising revenue and wants the government to intervene to shore up its finances. The government appears to have accepted that Channel 4, which is state owned but funded by advertising, will have to be combined with another business to safeguard its future. That is most likely to be achieved by engineering a merger with BBC Worldwide, the corporation's commercial arm, or with a commercial rival such as Five or even ITV.

Sky argues that Channel 4 is in a stronger financial position than many of its commercial rivals, with cash reserves of £425 million, and claims it could retain its independence by withdrawing from unprofitable businesses and developing new sources of revenues. Sky also says it is prepared to work with Channel 4 to create a portfolio of paid-for channels that would be carried on the Sky platform, and heavily promoted by the satellite broadcaster.

The intervention clearly implies Sky is not happy about government plans to create a second public service broadcaster, with Channel 4 at its heart, to compete with the BBC.

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Tiscali sale to BSkyB abandoned

Internet provider Tiscali said talks with BSkyB over the sale of its UK assets have ended. Tiscali said it was "de facto impossible" to proceed with the discussions because of the impact of the continuing economic downturn.

As a result, Tiscali said it would miss an interest payment on its debt as it seeks to restructure its obligations. Shares in the Italian firm declined 40 per cent in Milan on the news before trading was subsequently suspended.

Tiscali has about E500 million of outstanding debt. Its next interest payments, for E11 million are due on 11th March and 13th March. The company has asked for its interest payments to be suspended for a period while it restructures its debt.

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DT IPTV glitches?

According to German press reports Deutsche Telekom is having chronic technical problems with its IPTV platform T-Home Entertain.

News magazine Stern says internal documents show call centres and technicians are having to deal with a tidal wave of complaints. The main problem seems to be poor pictures with latency and drop outs with the disruption occurring over wide areas. A DT spokesman admitted that there were individual cases with problems, but claimed that on the whole the offer functioned "faultlessly". Telekom currently has 500,000 Entertain customers, with a million forecast by year-end.

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UPC slims in CE

UPC Broadband has announced a reorganisation and streamlining of its Central European operations. From the end of March the regional management group overseeing UPC's six operating businesses in Hungary, Romania, Poland, Slovenia, Slovakia and the Czech Republic will be closed down. The affected operating businesses will now report directly to Gene Musselman, President and COO of UPC Broadband.

In addition, Musselman has been appointed interim Managing Director of UPC Hungary, where he will lead a revamped team to further improve operating performance and customer satisfaction in an increasingly competitive market.

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DTG to launch 3DTV consultation

The DTG it is to conduct the UK's first industry consultation into three-dimensional TV (3DTV). The consultation, which will open later this month, will ask the DTG membership of over 125 digital television broadcasters, platform operators, manufacturers and other stakeholders for their views on the technological feasibility and viability of 3DTV, and for their views on key interoperability issues.

Commenting on the consultation, DTG Director General Richard Lindsay-Davies said: "Some industry observers regard 3DTV as a natural, evolutionary next step for high-definition television. However, numerous challenges exist across the value chain, from image acquisition, storage and post-production, to distribution, reception and display. These challenges need to be understood and overcome in order to make 3DTV a feasible and viable consumer proposition."

The DTG's 3DTV consultation will be conducted in conjunction with independent media consultant Lovelace Consulting.

Meanwhile, DTG has published the 6th edition of the ‘D-Book’, the detailed interoperability specification for UK Digital Terrestrial Television (DTT). The latest edition has been updated to incorporate the specification for next-generation DVB-T2 services, which will enable the launch of four free-to air high definition (HD) channels on the Freeview platform by late 2009.

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Info-TV-FM wins DVB-H licence

The Polish regulator UKE has awarded the DVB-H mobile TV licence to the Polish transmission company Info-TV-FM. Under the licence terms, the company will operate a DVB-H service in 31 towns and cities until 31st May 2015 and nationally from June 2015 until the end of 023.

Info-TV-FM will have to pay PLN 15.105 million (E3.194 million) for the licence. Info-TV-FM scored 750,000 points in the beauty contest organised by UKE, overtaking the bid from rival consortium Mobile TV which received 483,944 points. The Mobile TV company included the country's four mobile operators Orange, Era, Plus and Play.

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BBC and BFI bring archives to life

The BBC and BFI (British Film Institute) are working together to develop plans for increasing public access to their respective audio, film and TV archives. This agreement draws on the opportunities presented by the development of digital technologies, in particular the expansion of the UK's broadband infrastructure, which allows both the BBC and the BFI to continue to contribute to the building of Digital Britain.

The BBC and BFI's intention is to explore new ways of making archive content and material available to all UK audiences, across the widest possible range of distribution platforms, while developing an industry standard approach to the management, storage and distribution of archive content and related assets.

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Seven to deliver TiVo downloads

Seven Media Group will take on Telstra and other Australian Internet service providers by selling a broadband internet connection with its TiVo digital set-top box from next month.

The broadband service --which turns TiVo into an Internet service provider - will be launched along with a movie library of more than 100 titles that customers will be able to download to their TiVo box. TiVo licensee Hybrid Television Services has partnered with Adelaide ISP Internode to offer the service, which will provide unmetered video downloads.

TiVo and Internode are expected to charge customers between A$79 and $99 a month for a TiVo set-top box and a broadband internet connection on a two-year contract. The bundled service is being pitched as a competitor to pay-TV services like Foxtel, which charges at least $50 a month for a basic service with an iQ set-top box, as well as high-speed broadband providers. At best, TiVo is believed to be breaking even on the deal.

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Ofcom broadband league

UK Media watchdog Ofcom has confirmed that April will see the first release of its broadband speed league table, which will reveal the real-world performance of UK ISPs. It will be based off the same system that allowed Ofcom to report the country's average downstream speed of 3.6Mbps in January.

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NXP to power Amstrad HD DVR

NXP, the independent semiconductor company founded by Philips, has confirmed that its complete DVB-S2/MPEG-4 digital video recorder (DVR) set-top box solution has been incorporated in the latest Amstrad DRX780UK HD satellite receiver. Amstrad, now owned by BSkyB and the main supplier of its Sky+HD boxes, has selected NXP’s high-definition H.264 chipset with DVB-S2 satellite front ends to deliver advanced quality recording and playback functionality for Sky+HD customers.

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Smartphones to account for 23% of new phones

Rising demand for complex multimedia-centric applications is forcing handset manufacturers to design increasingly smart‚ and highly personalised mobile devices.

A report from Juniper Research forecasts that these so-called smartphones will account for 23 per cent of all new handsets sold per annum by 2013. Driving interest in smart phones will be the proliferation of online stores selling specialised applications that will make these devices better suited to individual users needs.

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Monday 9th March

Belgacom reports solid 2008

Sky lobbies for "free-to-air" sport events
Virgin appoints UBS to oversee sales
Mobile ads will gain in developing markets
Telefonica, DirecTV talk Argentine triple-play
Pro-Bel and Snell & Wilcox merger
IneoQuest IQDialogue for Mediaroom


Belgacom reports solid 2008

Belgium’s dominant telco Belgacom TV has reported growth in 2008 exceeded that of the previous year, with the company adding 201,000 new subscribers. Growth peaked in the fourth quarter of the year, with the company adding 63,000 IPTV subscribers in the three-month period. By the end of 2008, the company had a 30 per cent share of the Belgian digital TV market.

Belgacom reported that it managed to increase its market share in the digital TV domain to 30 per cent by the end of 2008. The number of homes passed also increased significantly: at the end of 2008, over 86 per cent of Belgian households could access Belgacom TV and in excess of 64 per cent could view in HD.

Revenue, excluding non-recurring items, last year fell 1.4 per cent to E5.98 billion. EBITDA before non-recurring items fell 4.2 per cent to E1.99 billion.

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Sky lobbies for "free-to-air" sport events

BSkyB is lobbying to have the list of sporting events reserved for free-to-air television abolished in an ongoing government review. Chief executive Jeremy Darroch said Sky would argue for a situation where the World Cup or the Olympics could be shown on pay TV, with sports bodies free to decide where to sell their rights with no restrictions.

The culture secretary, Andy Burnham, is minded to expand the list of "crown jewels" events to include cricket, perhaps in its international Twenty20 form. A review is being carried out by David Davies a former Director of the Football Association and Darroch will argue strongly that the changing media landscape makes the idea of a protected list of events anachronistic.

They will present evidence that they claim shows that broadcasting events exclusively on pay TV does not have a detrimental effect on live attendances or reach. It will point to the fact that attendances at Premier League football and rugby union matches have increased over the years, despite both being shown exclusively on Sky, and that cricket participation and attendances have also gone up since its deal with the England and Wales Cricket Board.

Darroch said: "It's not for me to dictate to a rights holder how they should sell their rights. What we want is the chance to pitch and show what we can do to showcase their sport. There is no such thing as free sports coverage. We all pay our licence fee."

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Virgin appoints UBS to oversee sales

Virgin Media has appointed UBS bank to advise it on a sale of its television channels businesses that could be worth up to £500 million (E560m). Virgin Media Television includes Virgin’s 50 per cent stake in the cable channels business UKTV. The sale will be partly dependent on the outcome of a political debate going on over the future of Channel 4 and a proposed joint venture with BBC Worldwide. Putting Channel 4 together with part of Worldwide would almost certainly involve buying Virgin’s share of UKTV.

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Mobile ads will gain in developing markets

As market penetration rates for mobile services continue to soar in emerging markets, advertisers are expected to dramatically increase their spending on "third-screen" ad campaigns targeted specifically to users of mobile data services, providing a potentially huge new revenue stream for operators of mobile networks, according to the latest report from Pyramid Research.

Pyramid predicts that mobile advertising will boost mobile data service revenue by 10 per cent within the next five years, as mobile service adoption rates grow worldwide. Mobile data services are expected to account for more than 33 per cent of operators' service revenue at the global level by 2013, making any driver of this market a strategic component.

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Telefonica, DirecTV talk Argentine triple-play

Telefonica and satellite TV provider DirecTV are in talks to launch a joint triple-play offering in Argentina. According to Guillermo Delfino, DirecTV marketing manager, negotiations over a joint commercial offering began two months ago, and there are no regulatory barriers as each company would continue to provide its own service.

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Pro-Bel and Snell & Wilcox merger

Pro-Bel and Snell & Wilcox have announced the merger of their businesses, and the creation of a new joint company. The deal, which combines the strengths of two market leading innovators in the broadcast technology industry, creates a formidable competitor in the digital media sector. The combined company has two thousand active customers in more than 100 countries.

AmberFin has confirmed its separation from parent company Snell & Wilcox, following the successful merger of Snell & Wilcox with Pro-Bel. AmberFin remains under the ownership of Advent Venture Partners as an independent entity. The company focus and core business model remains unchanged - to develop and advance its iCR software and aggressively grow its market share within the film and broadcast markets. AmberFin was launched from the Snell & Wilcox Group in April 2008.

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IneoQuest IQDialogue for Mediaroom

IneoQuest Technologies, global supplier of end-to-end quality, service and revenue assurance solutions, has announced the IQDialogue IPTV Mediaroom Edition. IQDialogue Mediaroom Edition ensures that service providers using the Microsoft Mediaroom IPTV and multimedia software platform can meet subscriber video quality expectations.

The new IQDialogue server is a real-time, software-based monitoring probe that analyses, monitors, and troubleshoots Microsoft Mediaroom-enabled networks, ensuring that subscriber quality expectations are met.

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