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Weekend - Friday 14th to Monday 17th Decemb
Vivendi
chases global ambitions
NTL
faces further cuts
ABC
Asia in relaunch
Discovery
wins Asian poll
Another
pirate network dismantled
SES/Neo
in satellite interactivity
Italy
pay-TV no merger
Diller
to head Universal?
Japanese
BS digital HDTV
TV
veteran Wonfor quits Granada
Echostar/Direct
dependent on ruling
Europe
to Australia via Ku-band
Vivendi
chases global ambitions
Vivendi Universal, the French media group, looks set to create a global
TV production business by pulling together its interests in USA Networks
entertainment assets, as well as TV production in Europe via Canal Plus,
Universal's
international channels business and the French channels business, Multithematiques.
When Vivendi bought Seagram Co Ltd's assets last year, the European Commission
ruled that Vivendi had to sell its 22 per cent stake in Murdoch's UK pay-TV
arm, BSkyB as a condition of approval.
On Thursday (13/12/01) the whole European stock market shook after the
French media company said it was selling almost a third of its BSkyB stake,
worth £1,065 million ($1.54 billion), through a rights placement.
A Vivendi spokesman said, "The sale of 150 million shares allows us to
lock in a profit and reduce our exposure to BSkyB." Vivendi is expected
to receive £120 million profit from the sale.
The company added that the move will mean "room to manoeuvre which will
enable us to cover any eventual needs from different opportunities for
strategic partnerships in television and US distribution which may or
may not come to fruition."
Only last week Jean-Marie Messier, Vivendi's chairman, and Barry Diller,
chairman of USA Networks, said they were in advanced talks to disentangle
their assets, which could leave Vivendi in control of the cable channels
and film studios of USA Networks (see Diller story, today's news, below).
It is also said that EchoStar is in advanced talks with Vivendi about
a possible programming deal and investment in the DBS platform. Creating
a number of channels for EchoStar's DISH Network using Vivendi's film
and television library was in the centre of the conversation. A deal could
also lead to Vivendi investing around $1.5 billion in the satellite service,
Reuters reported.
NTL faces further cuts
Indebted UK cable company NTL could run out of money in its core business
within six months warned industry analysts Goldman Sachs. To avoid NTL
Communications Corp - the division which has issued most of the company's
high-yield
debt - running out of cash by the second quarter of 2002 the will have
to revise its revenue and expenditure figures says Goldman Sachs, according
to an FT report.
The aim of the company is to meet the earnings targets in its bank covenants
which means that NTL must keep within set ratios of debt to ebitda (earnings
before interest, taxation, depreciation and amortisation) - or the banks
can call in their debt.
That would cause the company to collapse with total debts of $20 billion
in bonds, bank debt and preferred stock. Total bank debt stood at £4 billion
($5.86 billion) on September 30, including £2.6 billion drawn in the UK.
NTL will need to restructure its debt to secure its future and regain
analysts and investors confidence. One option is a debt for equity swap,
leaving the banks and bondholders in control of the company. NTL's complex
structure and different types of debt are likely to make the process a
lengthy one, commented the FT.
But that would leave shareholders with nothing - a situation already which
already exists according to analysts at Bank of America Securities who
value NTL's total equity at 'zero' because of its high level of debt.
ABC Asia in relaunch
Australia's state-funded broadcaster the Australian Broadcasting Corporation (ABC) will launch its revamped Asia Pacific satellite TV channel on New Year's Eve, although the service will start with a limited amount of programming.
ABC Asia Pacific channel project manager John Doherty said that the service will run a four-hour programme loop repeated during the day initially, before moving to a six-hour block in May and then eight hours by the end of 2002.
The programming mix of the free to air service will be heavily weighted towards news and current affairs, educational programmes focusing on learning English, documentaries and travel programmes. The weekend content will be dominated by sport and drama.
The government is offering $45 million over five years to fund the service that is a successor to an earlier service, Australian Television International that launched in 1993. Under the Labour administration of the time which wished to involve itself more in Asia, the service was well-supported. However the Liberal government that took power in 1996 was less well-disposed and the operation was sold to Kerry Stokes' Network Seven which pulled the plug on it in 2000.
Doherty commented "It is a crowded market out there and we will have to prove ourselves, but we are on track and confident."
Discovery wins Asian poll
Discovery has been voted the number one cable and satellite channel among Asia's most affluent viewers for the fifth year running, according to the latest Pan Asia Cross Media Survey (PAX).
Discovery was also the top channel among business decision makers for the second year running. CNN International led the news channels for the fifth consecutive year, reaching more business decision makers than the other major international news channels combined, CNNI said.
According to information released by Turner Broadcasting after the results were announced, in any seven day period, CNN reaches 36 per cent of business decision makers compared to 14 per cent watching BBC World and 13 per cent viewing CNBC. The BBC said its audience had grown for the fourth successive year, citing the findings showing BBC World's weekly reach among business decision makers this year was up from 15 per cent to 16 per cent.
The corporation said in a statement that if the effects of September 11 on audiences was ignored, BBC World's weekly audience among BDMs was unchanged at 15 per cent. "In the same period, CNN's audience fell from 39 percent to 32 percent, CNBC's fell from 16 per cent to 15 per cent, and Discovery's from 41 per cent to 36 per cent," the BBC commented.
The PAX survey, conducted from July to October 2001, tracked viewership of upscale cable and satellite viewers (affluents and business decision makers) in eight Asian markets - Singapore, Taiwan, Hong Kong, the Philippines, Malaysia, Indonesia, Thailand and India.
Another pirate network dismantled
The French press reports that a major network of Canal Plus and TPS pirates has been dismantled in the Avignon region.
Two people have been detained in custody following questioning and four more are still being questioned. The raid follows investigation by the French police acting on information supplied by anti-piracy experts at Canal Plus and TPS. "These people, who spent their time devising programmes against the anti-piracy measures, have been arrested but it is impossible to tell how many pirate cards have been made," said Francois Carayol, President of Canal+ Technologies.
Several of the 'brains' - engineers, computer scientists and hobbyists - behind the operation have been questioned earlier this week in Paris, Toulouse, Marseilles, Avignon and Lyons. They have set up over 50 web sites giving detailed instructions on how to make pirate cards. According to the report, they sold pirate cards for 3,000 to 5,000 francs (€500 to €800) and caused the companies losses estimated at "over 500 million francs."
While the piracy is undoubtedly real, these figures seem exaggerated - as no one would pay a figure equivalent to over a year's subscription for a card whose likelihood of working over the long term was questionable to say the least. Nor is it clear how the "estimated loss of earnings" is calculated, being equivalent to a substantial proportion of the platforms' annual turnover. If true it would suggest that these pirates were responsible for almost as many non-paying viewers as the platforms have official subscribers, but without the latter's massive marketing organisation.
SES/Neo in satellite interactivity
Abrared, owner of NEO, a provider of interactive broadband solutions in
Spain and SES Multimedia, the wholly owned SES Astra business unit, have
signed a contract for two-way satellite capacity and Astra's Broadband
Interactive (BBI) service solutions.
This new service is designed to enable businesses, enterprises and institutions
across Spain to use two-way satellite technology to improve the speed
and reach of their broadband communications. The launch of the service
confirms Spain's role as an advocate of the DVB/RCS-based commercial Ka-Band
satellite communications in Europe.
The service, which will start to be rolled out early in 2002, will enhance
the range and type of Internet-based applications available to users.
By using capacity on the Astra satellites, corporate users for example
can recieve content downloads at DSL-type and higher speeds.
Two-way interactive capabilities on Astra's BBI system will enable companies
to contribute information via satellite to the network at speeds of up
to 2Mbps from their own premises.
Enrique Jalle, Managing Director at Spanish wireless local loop operator
NEO, says, "We are very pleased to have concluded this agreement, as it
enables us to extend our current product portfolio. Complementary to our
existing services, Astra's broadband interactive service will enable us
to provide attractive and cost-effective end-to-end network solutions
for new and existing customers. There is no doubt this high performance
and operationally outstanding service will be in high demand. During the
coming years we anticipate hundreds of organisations being equipped at
single and multiple sites for the service."
Robert Feierbach, Business Director of SES Multimedia commented, "This
agreement with Abrared is a very important step for the dynamic Spanish
broadband and interactive market. We are excited and confident that NEO
will successfully roll-out this new service. Interactive broadband satellite
users in Spain will benefit from three unique BBI features: Astra's pan-European
coverage, instant broadband last mile connectivity and very high quality
of service."
Italy
pay-TV no merger
Media groups Vivendi Universal and News Corp Ltd have withdrawn a plan
to merge their Italian pay-TV arms, Italian antitrust regulators said
on Thursday (13/12/01).
The regulatory authorities didn't like the idea of the merger. The media
giants are now looking for other options that would be more acceptable
to antitrust authorities, which could see Rupert Murdoch's News Corp pull
out of Italy altogether, eager to wash his hands of the loss-making venture,
despite telling shareholders last month that he would stick by Stream.
In a move to resolve regulators' concerns about two of the world's biggest
media companies and their top-ranking movie studios joining forces in
Italy's pay television market, last week Vivendi said that it was in advanced
talks with News Corp about a deal to buy Stream Italian television.
News Corp originally agreed to acquire its partner Telecom Italia's 50
per cent stake in Stream, and then merge the pay-TV venture with its larger
rival, Vivendi-controlled Telepiu. Vivendi would have controlled 75 per
cent of the merged entity while News Corp would have had 25 per cent.
Telecom Italia has warned that it could wind up Stream if a deal could
not be reached.
Marco Tronchetti Provera Telecom Italia Chairman said that he was confident
both sides would reach a new deal.
"Negotiations are currently taking place in which we are observers. I
am convinced they will reach a successful conclusion," Provera told Il
Giornale newspaper.
Stream and Telepiu have been loosing money since their launch. Stream
lost º400 million and Telepiu around º220 million last year. Telepiu has
around 1.8 million subscribers while Stream has some 800,000 customers.
Diller
to head Universal?
In addition to winning full ownership of his company USA Networks, a deal
with France's Vivendi Universal looks set to put Barry Diller in charge
of Universal's film and TV businesses.
Diller is expected to take a minority shareholding in Vivendi Universal,
whose Chairman, Jean-Marie Messier announced on Thursday 12/12/01 that
it was selling a substantial part of its shareholding in Rupert Murdoch's
British Sky Broadcasting to raise cash to fund its expansion in US television
and content distribution.
Were Messier to transfer his remaining stake in BSkyB to Liberty Media
Chairman John Malone, he could get a 21 per cent stake in Liberty Media's
USA Networks.
Japanese BS digital HDTV
Japanese consumer electronics maker, Matsushita Electric Industrial Co announced Thursday (13/12/01) the launch of a BS Digital HDTV featuring what it says is the industry's first voice-recognition remote control to simplify operations. The product could be on the market as early as next week.
BS digital broadcasting offers a range of options, including television, data and radio, but this can sometimes make it difficult to operate the TV, the firm said.
The company, known for its Panasonic and National brands, introduced this feature where users are able to give verbal commands to the remote control which transmits infrared signals to the TV so that it can recognise television stations, channel numbers, program information and other functions.
TV veteran Wonfor quits Granada
Andrea Wonfor, Creative Director of Granada Content in the UK will leave Granada early next year.
Wonfor is one of the longest serving executives in the ITV network and although she will no longer be the Creative Director she will continue to work for the company in an advisory capacity on specific projects until next summer
Wonfor said, "This was a big decision for me as I have enjoyed my eight years at Granada enormously."
"It is a time of dynamic change - within Granada and in the media industry worldwide - and so it is the right time to move on and consider new challenges."
Echostar/Direct dependent on ruling
The proposed merger between the two main US satellite providers, EchoStar and DirecTV, might not happen if key regulatory rulings are not forthcoming says EchoStar CEO Charlie Ergen.
EchoStar Communications Corp, the number two US satellite TV provider, has offered $32 billion to buy US market leader DirecTV Inc. If the deal goes through, the combined company would have total control of the US satellite market.
Ergen's argument is that in this way the satellite industry will have the chance to compete with the more popular cable operators. He says that the meaningful choice is not between two satellite companies but between satellite and cable. Currently, about 80 per cent of the nation's pay-TV customers have cable, as opposed to satellite service.
The merger has to be approved by the Department of Justice - to ensure it doesn't violate antitrust laws - and by the Federal Communications Commission, to determine whether it is in the public interest.
However the Justice Department first has to decide exactly what the merged EchoStar-DirecTV would be.
If the Justice Department rules that EchoStar-DirecTV is solely a satellite TV company, then Ergen knows the merger would create a monopoly and likely not be allowed. Before that happens, he'd kill it, reported the Washington Post.
"We wouldn't pursue the merger in that case," Ergen said during an interview yesterday in Washington. "It would be game, set, match," he said. "I wouldn't approve the deal."
Ergen added he is "very confident" the Justice Department ruling will go his way. And if the department decides that EchoStar-DirecTV would be more than just a satellite TV company, then Ergen believes the merger itself has a good chance of being approved.
Meanwhile DirecTV and EchoStar's DISH Network lost a must-carry battle at the Federal Communications Commission involving WVEN, a Florida TV station owned by Entravision Holdings.
The companies refused to carry the WVEN signal alleging that the station doesn't provide a good quality signal to local receive facilities individually operated by the satellite TV companies.
WVEN admitted that it is operating at a reduced power level while awaiting installation of a new transmitter and told the FCC that it will provide a good quality signal once it has been installed.
The FCC told EchoStar and DirecTV to carry WVEN's signal within 75 days from the date on which the station provides a good quality signal to local receive facilities, but not earlier than Jan. 1. That is the day satellite TV's must-carry rules become effective.
Europe to Australia via Ku-band
UK-based Europe*Star 1 satellite reports that it can now provide connectivity
and coverage between Europe and Australia using Ku-band satellite transmission.
An unmodulated carrier was transmitted to Europe*Star 1 using an earth
station in the UK and then received at a teleport in Western Australia
using a 1.8 metre antenna.
This extensive footprint opens up new possibilities for satellite communications
across the eastern hemisphere, including single-hop ku-band transmissions
of broadcast quality material in both directions between the two continents
involved in the test.
Kirch
situation brightens
France
prepares for DTT
3 new channels
via Kingston
RAI
buys Kirch soccer rights
BSkyB share fall
Corus sells 30%
of Comedy
New
team at TV4
Local
must-carry ruled
Brazil
cable competitor
Irdeto
launches China partnership
Fox
TV new president
NBA
TV deal with Time Warner
EchoStar
VII Q1 launch
SIA
2002 Leadership
Kirch situation brightens
Dresdner
Bank, which had demanded repayment of a €500 million ($449 million)
loan by German media organisation Kirch Gruppe before the end of the month,
agreed last night to extend the loan - and Deutsche Bank has also issued
a statement that it will not recall its DM1 billion loan.
Concerns about exposure of German banks to Kirch's
€7.7 billion debt had resulted in their trading lower on Wednesday
(12/12/01) with HypoVereinsbank reportedly not granted enough securities
for its loans to Kirch which are due to be redeemed. Then on Thursday
(13/12/01) HypoVereinsbank revealled that its loans were well uner E500
million and were backed by adequate security.
Now John Malone's Liberty Media group is reported to be discussing ways
it can deliver cash to the Kirch Gruppe to help meet loan repayments due
in Q1 and cash demands from shareholders. The possibility of Liberty buying
Rupert Murdoch's 22 per cent stake in Kirch's pay-TV business had been
discussed by Malone and Leo Kirch when they met in Berlin last month,
and now the two are considering other deals including discussions on taking
an equity position in the group. The German regulatory authorities appear
opposed to such a move - when combined with Liberty's German cable network
purchases - as it would give Liberty control over both content and distribution.
Kirch was already looking at selling some assets to meet its liabilities,
with TF1, the French commercial TV group, believed to have been talking
to Kirch about buying the German group's 25 per cent stake in Spanish
broadcaster Telecinco for some €511 million.
A spur to activity has been reports of unwelcome predatory interest from
Murdoch's News Corp which, despite specific denials, still appears to
be seen by Kirch as keen to take advantage of his company's indebtedness
- making it nervous ahead of its 2002 proposed listing. Such fears were
maybe further fueled by Friedhelm Busch, Chief Financial anchor of the
German news channel n-tv who suggest Murdoch could have been behind the
debt rumours, "To shake up Kirch a little."
France prepares for DTT
Speaking at a conference on Digital Terrestrial Television organised in Paris by Euroforum last week, Sylvain Audigier, Joint Development Director of TF1, said that TF1 has ready channels for the forthcoming service.
These include
Eurosport (now wholly owned by TF1),
LCI (news channel), TF6 (general entertainment channel for the 15-35 age
group, jointly owned with M6), Serie Club (non-stop series channel, also
jointly owned with M6) Shopping Avenue, Odyssee (documentary channel).
Currently these channels run on cable and satellite, hence they are ready
to go on DTT when it launches as TF1 does not plan to create new channels
specifically for DTT.
"The extra costs for being on DTT will be marginal," said Audigier. However,
he went on to point out that the extra revenue would also be marginal,
since there would be little advertising revenue (at least in the early
years) as DTT take-up ramps up. He expects DTT to increase channel penetration
in multiple dwelling buildings, where satellite is awkward to install.
The determining factor for DTT take up will be the feasibility of reception
by indoor antennas, since many apartments are not linked to an outside
aerial, and cable companies have been supplying a very basic 'antenna'
service in collective dwellings replacing shared aerials.
Sylvain Gouz, DTT VP of France Television, outlined DTT's opportunities
for the public service broadcaster. France Television currently operates
two and a half free analogue terrestrial channels (France 2, France 3,
and La Cinquieme which shares a frequency with Arte) as well as several
thematic channels in joint ventures carried by the pay platform TPS. It
is working on setting up a number of new channels which are intended for
DTT transmission, but which will also be carried on cable and satellite.
The channels will be free on DTT but it is not clear whether or not they
will be free on the other platforms. The channels include a news channel,
and a cultural channel, documentaries and second runs channel.
These channels will be launched before the end of next year (ie before
the likely start of DTT). They will be complemented by a regional channel
in eight regional variations, the first two of which will launch next
year, and the remaining six over the following two to three years. The
channels will be funded by the licence fee plus advertising plus a complementary
one-off grant of a billion francs, of which France Television recently
received the first one-third installment.
3 new channels via Kingston
Kingston inmedia in the UK, the satellite-centric broadband applications provider of Kingston Communications, has awarded contracts to provide three new channels with state-of-the-art K cast digital playout just three weeks after going live.
Contracts are in place to provide playout services for eight channels, including the three new contract wins. K cast is designed so that it can host up to 48 channels of fully automated digital playout and is hosted at Centre K, Kingston inmedia's purpose built UK data management facility which also provides digital archiving, video asset management and interactive broadcasting.
The eight channels are:
BFBS 2 (New channel to commence on 22nd December)
Millenium 7
Shop America - New client
Sirius Retail TV - New client
TV Shop
3 channels for Zone
"The main reason that we have been awarded contracts for the playout of three new channels only three weeks after going live with K cast is that collocating our new playout centre with our Teleport gives our customers unrivalled value and robustness," says John Dunlop, Technical Marketing Manager, Kingston inmedia. "Collocation means that customers no longer have to pay up to £50,000 per year per channel for terrestrial fibre circuits from playout to up-link. Having built two bi-directional fibre links we also provide the industry's most robust link between playout and up-link. In addition, we have asset management, TV studios, the UK's most advanced virtual studio, and much more. So that our integrated media centre at Gerrard's Cross has everything a channel needs, both now and in the future."
K cast playout - Three different playout levels of service have been designed to give broadcasters maximum flexibility. These are described by Kingston as follows:
Red playout - a simple, reliable, off-the-shelf package, including: 24 hour server based playout
Redundant server and automation systems and Central disk storage with RAID protection
K cast offers major league channels -Blue - playout - with what the company says is enhanced playout sophistication enabling 'limitless' flexibility and the potential to integrate with all of Kingston inmedia communication services. The enhanced functionality of Blue playout, includes: teletext; live event handling; live graphics insertion; subtitles; multiple audio streams interactive TV and remote scheduling.
RAI buys Kirch soccer rights
After two years of negotiations, Italian public broadcaster RAI has finally reached an agreement with Germany's Kirch Group to acquire the rights for next year's soccer World Championship.
Kirch Media, which owns the rights, is to receive º118 million from RAI. If the Italian national soccer team reaches the quarter finals, Kirch will receive more premiums up to a maximum price of €7.2 million. RAI's costs are believed to be limited so that they will not exceed €150 million.
This sum will also ensure that the Italian broadcaster receives the 25 top matches of the German World Championship in 2006. Then in two years time, RAI will buy rights to show the remaining matches for €88 million.
Vittorio Emiliani, Member of the Board of Direction, said, "RAI is the only European public TV channel is able to buy the 100 per cent of the rights, despite having the lowest subscription fee in Europe.
Two years ago, Kirch asked RAI for €220 million to buy the rights. French private TV Tfl paid €169 million, while English BBC and ITV will pay €250 million for both Korean/Japan and the German Championships.
Paolo Francia, General Director at Raisport, said that the worst time for RAI was in August when Kirch hadn't sold the rights to France and England. "Once they made the agreement, we knew that things would improve for us. We took as a parameter the price paid by France. Our is even lower."
BSkyB share fall
Shares in Britain's leading pay TV operator BSkyB opened 5.82 per cent
down on Thursday morning (13/12/01) after Deutsche Bank said it was placing
150 million equity certificates in French media group Vivendi Universal.
The equity certificate will be converted into BSkyB shares by next October
at a mid-range of 710 pence per share. Their value, some £1.065 billion
($1.53 billion), is equivalent to eight per cent of BSkyB shares. As a
consequence BSkyB shares fell and the whole European market was unsettled,
compounded by falls at Logica and other media and technology stocks.
"People do not like the level of the placing. Obviously it's a fair price,
but the market was looking for something closer to 780 pence. No one likes
to see a placing at a 10 percent discount," said one UK equity salesman.
The bank said the placement would allow Vivendi Universal to lock in the
value of a portion of its stake in BSkyB which the French media group
monetised through an equity swap deal with Deutsche Bank earlier this
year.
Latest reports
suggest that Vivendi is selling its $1.5 billion BSkyB stake to raise
cash ahead of a major acquisition.
Corus sells 30% of Comedy
Canada's Corus Entertainment Inc has sold its 30 per cent stake in the Comedy Network to CTV for C$36 million.
Corus has been hacking and slashing costs since it took on C$614 million in debt to buy production house Nelvana and six radion stations in Quebec. Corus is controlled by the Shaw family and is Canada's largest operator of cable channels and radio stations. The company is also considering selling Klutz Publishing. CTV, owned by Bell Canada, now has 95 per cent of Comedy Network.
New team at TV4
TV4, Sweden's biggest station, has appointed a new management team for its new media & interactive division, TV4 Interaktiv. Johan Frisch, 31, will now step up as acting MD and Marica Finnsioe Gefvert will take over as head of editorial content. The duo will replace Otto Sjoeberg, who was recently appointed Editor-In-Chief of evening tabloid Expressen, Sweden's biggest daily newspaper and one of the jewels in the Bonnier newspaper crown.
For years Expressen has been in deep crisis and the Bonnier family recently managed to pursuade Thorbjoern Larsson, MD of TV4, to accept the double role as Chairman of both TV4 and Expressen. Larsson made himself a hero of Swedish media for making Aftonbladet (Sweden's other national tabloid) take over the no one position from Aftonbladet, now owned by Norwegian media group Schibsted.
At Aftonbladet Otto Sjoeberg was considered one of Larsson's 'crown princes', so few eyebrows were raised when Larssson recruited Sjoeberg to head up the station's expanding new media division. Under Sjoeberg TV4 Interaktiv has expanded in many various directions. TV4 has now sent out a press release claiming that its home page, www.tv4.se, is now more popular than that of Aftonbladet, Sweden's leading web news site.
Johan Frisch has worked for TV4 since August of last year. Most recently he has been commercial director of TV4 Interaktiv. Marica Finnsioe Gefvert joined TV4 in October of 2000 from Aftonbladet where she had various executive editorial functions.
Local must-carry ruled
The US Court of Appeals for the Fourth Circuit in Richmond, Virginia issued a unanimous ruling on 'must-carry' on Friday (7/12/01) obliging satellite television systems to begin transmitting local channels by early next month.
Both US satellite operators - the players in a proposed $32 billion take-over of DirecTV by EchoStar Communications Inc - describe the move as a violation of their free speech rights and a burden on their resources. The US has some 1,500 local television stations - which only a combined satellite company would be able to deliver, hence the move could even be seen as supporting the case made to regulators for a merger.
Brazil cable competitor
Brazil's leading TV network, Organizacoes Globo SA, has only 1.5 million subscribers for its cable television unit, Globo Cabo despite capacity to reach 6.4 million homes.
This is considered a poor result for ten years build, from $200 million raised on the New York stock exchange. Analysts suggest that biggest obstacle to Globo Cabo's growth is the popularity of its own terrestrial television service.
Irdeto launches China partnership
Content protection and management specialist Irdeto Access, a subsidiary of MIH Limited held its first partnership conference in China recently as part of its recently launched Global Partnership Programme.
This programme is intended to facilitate increased sales volume for both Irdeto Access and its selected partners. With 10 partners in China signed so far and another 10 world-wide, the programme is described by Irdeto as very successful, having increased the company and its partners access to markets and established greater opportunity to offer a wider range of end to end solutions.
The two-day conference held in Hangzhou, China, was attended by partners from the set top box field to system integration and subscriber management systems for both DVB and IP environments. The list of attendees included Coship, PBI, AVIT, ABS, GNI, Shenzhen DIC, CBN and CDB.
"The partner
conference enhanced our understanding of Irdeto Access as a company as
well as its technology," commented Casey Lie from PBI.
"A key pillar of our global strategy is to build and optimise our partnerships
to be able to deliver a range of turn-key solutions that can match our
customers' needs. Irdeto Access and its partners combine their expertise
to provide cost-effective solutions and localised support to operators.
Also, in the Chinese market, partners with extensive sales networks and
a strong delivery record are of high importance to be able to offer solutions
to the wide range of digital TV developments in provincial areas," adds
Graham Kill, CEO of Irdeto Access. He also noted that "Sixty per cent
of Irdeto Access' total of new sales globally was realised on the basis
of 20 partnerships."
"The location of the conference was no coincidence, as it reinforces our
long established commitment to the Chinese market as witnessed by the
launch of our localised products. Establishing relationships for mutual
success with local partners at the outset of a market's development is
a key element of our philosophy," added Thierry Raymaekers, General Manager
of Irdeto Access' China Office.
Irdeto Access provides its partners with full sales, technical, marketing
and PR suppor, channel promotions and advanced information about Irdeto
Access' new product developments and marketing activities. Partners can
expand sales to new markets already served by Irdeto Access - which facilitates
entry into new markets and customers, sales referrals, promotion, local
support, market feedback, pooled expertise, and partners' knowledge of
the customers and their requirements.
Fox TV new president
From January 1st, US Fox Television Network will have a new president, Anthony Vinciquerra. The position has been vacant for two years since the departure of previous President Larry Jacobson in December 1999.
At Fox Television Vinciquerra will oversee business development, finance, advertising sales, affiliate relations, administration and personnel. He will report to News Corp President and Chief Operating Officer Peter Chernin.
Only two months ago of Fox Television Chairman Brian Mulligan left his post after less than a year at the job. Before that, Mulligan was a top executive at film studio Universal Inc and Seagram Co, where he was a key player in their purchase by Vivendi to form Vivendi Universal.
NBA TV deal with Time Warner
After slipping ratings and a slow economy, the US NBA is near to creating a channel it would own with AOL Time Warner but it still needs to decide who to choose as its broadcast partner when the current four-year deals with Turner - worth a total of $2.64 billion -expire at the end of this season.
Lead bidder NBC paid $1.75 billion for its portion of the outgoing NBA package, and is now competing with Disney Co, brethren ABC, and ESPN.
Turner spokesman Greg Hughes said, "We're very interested in remaining partners with the NBA well into the future, but we don't have a deal right now."
AOL Time Warner is the parent of Turner Sports, which holds the cable part of the NBA's TV package and is airing games on TNT and TBS three nights a week this season.
With the new proposal, most games would be shown on the new channel - which probably would replace the AOL-owned CNN/SI - and some games would remain on TNT or TBS. CNN/SI started Dec. 12, 1996, and is in about 21 million U.S. homes, too few to register in the Nielsen Ratings.
Although NBA's stake in the joint venture with AOL/TW would be smaller that the one it had with Turner ($890 million for four years), the league, "gets increased distribution, it gets the opportunity for sharing in revenues from this distribution, and, most important, it gets the opportunity for its equity to appreciate dramatically if the channel grows," said former CBS Sports President Neal Pilson.
Regular-season ratings on NBC dropped 35 per cent from 1997-98 to last season, and Turner's NBA audiences have dropped, too.
EchoStar VII Q1 launch
US-based EchoStar is to launch a spot-beam satellite in the first quarter and begin sending signals to consumers early in the second quarter once the bird reaches orbit and finishes testing. The bird, EchoStar VII, will help DISH Network deliver local TV channels to meet its must-carry obligations which include local channels from January.
EchoStar CEO Charlie Ergen said that the satellite should ship to the US launch facility in Cape Canaveral, USA, in January and that the bird will fly in February.
SIA
2002 Leadership
The Satellite Industry Association in the US has elected Peter Hadinger
of TRW as its new Chairman and Jeff Trauberman of Boeing as Vice Chair
for 2002. They are both 'old-hands' in the satellite industry, Hadinger
working as Director of Market and Strategic Development at TRW and Trauberman
as director of government relations at Boeing.
Kirch
- bank seeks repayment
Vivendi
to control USA Networks
Chinese
World Cup dispute
Eutelsat
opens Italy office
Chinese
regulators rationalised
APTNvideo.net
adds sports
Mezzo
and Muzzik merger
Canadian
digital dial tone on hold
Fastest
gun in the West
Alternative
airway use sought
AOL
/TW & Motorola pact
TiVo
patents granted
Kirch - bank seeks repayment
The Dresdner Bank has demanded that Germany's indebted Kirch Gruppe - believed to owe between DM7bn ($3.1bn) and DM9bn - repays a º500 million ($445m) loan by the end of the year, with other banks expected to follow suit according to a report in the Financial Times newspaper.
Earlier reports had said that Murdoch's News Corp had been in discussions with the banks, prompting rumours of a hostile takeover bid - categorically denied by News Corp - and initially dismissed by Kirch -which subsequently began taking defensive measures including selling overseas assets.
Dresdner has given Kirch until January 1 2002 to pay after it missed a repayment deadline on Thursday. Requests to restructure the debt have been declined. Kirch's other loans are due in stages over the first quarter of next year and it is reported the German banks are unlikely to extend additional credit, with Bakred, the banking regulator, currently investigating German banks' exposure to the group.
In January, publisher Axel Springer is expected to exercise an option forcing Kirch to acquire its 11.4 per cent stake in ProSiebenSAT.1, the listed television broadcaster, for a set price of DM1.5 billion.
This liquidity crisis is seen as a threat to the merger of KirchMedia, Kirch's free-TV and rights business, with television broadcaster ProSiebenSAT.1, of which it already holds 52.2 per cent.
Dresdner is reported to have come under pressure from its merger partner Allianz not to extend lending to Kirch.
Vivendi to control USA Networks
USA Networks Chairman Barry Diller, and Vivendi Universal Chairman Jean-Marie Messier, are negotiating an asset swap that could occur before the end of the year. Diller find himself gaining corporate independence, heading up a vast e-commerce organisation built on USA's other operations include the Home Shopping Network, the Ticketmaster ticket-sales operation and Expedia, a travel Web site.
Vivendi is expected to take control of the USA television interests in exchange for giving up its 43 per cent stake in USA Networks, while possibly contributing $1 billion to $3 billion in cash. Messier has suggested he would like to combine the assets with Vivendi Universal's TV production assets in Europe (including Universal cable channels SciFi, 13th Street and Multithematiques - a jv with Liberty Media). Diller could potentially have an important role in this organisation too.
Vivendi Universal, has a 43 per cent stake in USA Networks - gained through its $34 billion acquisition of the Seagram Company last year - while Diller has voting control of the company though he owns only about 7 per cent of the company, and Malone's Liberty Media has a 21 per cent stake.
There is no indication as to what Malone would seek as a condition of supporting a deal.
A Vivendi, Diller and Liberty deal has been valued at $8 billion to $12 billion, according to analysts, while Vivendi said that New York Post figures for the deal of $13 billion to $18 billion were "totally absurd - even the lowest part of the range."
Chinese World Cup dispute
A Hong Kong-based company that had attempted to gain exclusive rights to the 2002 World Cup to sell them to mainland Chinese TV stations has apparently dropped out of contention in the face of fierce opposition from the country's state broadcaster.
China Central Television (CCTV) had pressurised provincial and urban networks through the country's regulators not to talk to the unnamed Hong Kong company that was represented in China by the Guangzhou-based distribution agent Mass Media Communication International Group.
The Hong Kong company had secured exclusive rights to the tournament, in which China is taking part for the first time, from a subsidiary of worldwide rights holders Kirch, for a fee of $12 million in late November.
CCTV was angered at what it saw as the kidnap of rights that it had always had since the World Cup was shown in China. CCTV's US$5 million bid for the Chinese rights for next year's event and US$7 million for coverage in 2006 had earlier been rejected by Kirch.
An official with the State Administration for Radio, Film and Television said, "Beijing treats it [the World Cup] as a national political event, rather than a commercial one. It is understood that senior officials are unhappy with an outsider grabbing the rights from CCTV."
Eutelsat opens Italy office
Eutelsat announced the opening of its first European branch in Turin, Italy, yesterday (Wednesday 12/12/01)). The new company, Skylogic Italia, will deal with marketing of a wide range of broadband telecommunication services dedicated to operators and content providers.
Arduino Patacchi, Multimedia Director at Eutelsat is the sole administrator of the new organisation. Skylogic's platform integrates the multimedia offer from Eutelsat through its Paris facilities and Telespazio's platform in Rome. This will enhance Eutelsat's services both qualitatively and quantitatively in the industrialised North West of Italy.
Skylogic will offer multimedia operators and service providers an access platform for broadband bi-directional services, streaming video, fast Internet connection, high speed data transmission and public services such as telemedicine and distance training.
Partner Euphon, which will host the platform, will provide high value-added services to clients, such as editing and treatment of audiovisual productions, management of multimedia content and supplying of broadband satellite applications.
Chinese regulators rationalised
China has moved to rationalise regulations for its TV, film and radio sectors with the creation of the China Radio, Film and Television Group (CRFTG).
The new body takes in state broadcaster China Central Television (CCTV), two state radio stations, and the management of the China Film and TV Broadcasting Satellite Company Limited (CBSat). The latter will oversee the creation of a central encryption platform that foreign broadcasters trying to reach Chinese audiences will have to use at a reported cost of $100,000 a year under a plan unveiled earlier this year.
CRFTG was created to unite the "scattered and weak" Chinese TV and movie companies, according to Xu Guangchun, the Director General of the State Administration of Radio, Film and Television (SARFT) who has been appointed to run the new organisation. He added that it was an important move given China's accession to the WTO and with it a likely increase in foreign competition.
The move also means that Chinese regulators will separate their regulatory function from their commercial one, a state of affairs that has often bewildered and frustrated foreigners seeking to do business in the market.
The state-run newspaper China Daily, that carried the report, said that the nation's television and film industry was about US$5.2 billion last year in terms of annual revenue.
APTNvideo.net adds sports
APTNvideo.net has signed a global deal with sports news video agency Sports News Television (SNTV) to incorporate the latter's content into the APTNvideo.net service.
APTNvideo.net is an online video marketplace operated by streaming media company, Kamera, and television news agency Associated Press Television News (APTN).
Under the terms of the two-year global online distribution agreement SNTV's content will be appear on APTNvideo.net from January 2002.
Liz Thresher, Head of Sales and Marketing at SNTV said, " Kamera and APTN have come up with an impressive service in APTNvideo.net, and it is the perfect platform for us. It is also attractive to join forces with content partners like APTNvideo.net who already have a large list of online clients on a daily basis."
Commenting on the agreement, Ola Scholander, Kamera's Head of News, said, "The fact that we are going into an Olympic year as well as a Soccer World Cup year makes the timing perfect, this will be a great service for our online clients."
APTNvideo.net will allow SNTV clients internationally to buy and publish SNTV material in a ready-made online version, 24-hours a day. Potential customers include online publications, portals and mobile services.
SNTV has a wide range of sports material, which is cleared for Internet use, ranging from event highlights such as Alpine World Cup (skiing), US PGA Championship (golf) and Euroleague Basketball to coverage surrounding events. For example SNTV will be providing comprehensive reports from several crews at the Winter Olympics in Salt Lake City and the 2002 soccer World Cup in Japan and Korea.
Chris O'Hearn, APTN's Head of Content Development adds, "Sport is the natural way to expand and we are happy to secure the best material available for APTNvideo.net clients. Online users now have access to the world's top news, entertainment and sports video, and it is all in one place."
Mezzo and Muzzik merger
Following approval by Brussels last week, the merger of the French classical/jazz music channels is going ahead and will become effective in March 2002.
Mezzo is currently owned by Lagardere Thematique, a joint Canal+ and Lagardere company, and is carried on Canal Satellite and some cable networks. Muzzik is jointly owned by France Television and France Telecom, and is carried on TPS and some (different) cable networks.
The new channel will be called Mezzo, but will include some of the aspects of Muzzik. The new channel will be headed by Thierry Cammas, and owned 60 per cent by Lagardere Thematique, 20 per cent by France Television and 20 per cent by France Telecom. It will be carried simultaneously on both the rival satellite platforms and on the cable networks and also have some international cable and satellite carriage, reaching a total of some nine million subscribing homes.
Programming will include classical music, opera, dance, jazz and world music, a mixture which is lacking on many international platforms. Mezzo will extend its reach in other countries in Europe and include sponsorship of international music events.
Canadian digital dial tone on hold
The C$4 billion plan announced last year to fast track high speed connections to all of Canada's rural and remote communities has stalled at the hands of a new 'Security' budget handed down by Finance Minister Paul Martin in Ottawa on December 11.
Instead of providing money for the national infrastructure project the ruling Liberal party has extended the deadline for completion from 2004 to 2005. Signally, the government also failed to provide any start-up cash for the project, which - even before the budget -appeared to be dying the death of a thousand cuts.
Reaction to the plan was mixed prior to the budget, with some saying it was an unnecessary boondoggle and others saying the project would cost C$10 billion if done properly. When last heard from, the sum Ottawa was willing to commit had gone south from C$4 billion to C$1 billion. Now, it seems to have evaporated into nothing.
Fastest gun in the West
Shaw Communications, which has the highest penetration rate of any North American cable company, has taken Telus Corp, the incumbent in British Columbia and Alberta, to the Alberta Court of Queen's Bench for allegedly tarnishing its reputation by claiming that it offers the fastest internet connection in Western Canada.
The dispute is based on a series of ads run on TV, print and radio that claim Telus has the fastest connection and uses the slogan, 'Always Fast, Never Shared.' In return, Telus is responding that Shaw advertising demeaned ADSL lines by unfairly comparing it to 'tin cans and a string.' Shaw is suing for damages due to injurious falsehood. Shaw currently has 680,000 cable modem subscribers against Telus' 170,000 high speed customers. In the last quarter Shaw gained 81,000 cable modem subscribers against Telus' 28,000.
Alternative airway use sought
The UK government is increasing efforts to meet a scheduled switch off of analogue broadcast transmission some time between 2006 and 2010, and it is now seeking new ideas for the use of the TV airwaves when they become available
On Wednesday (12/12/01) Douglas Alexander, Minister at the Department of Trade and Industry (DTI) - in a joint venture with the Department of Culture, Media and Sport - launched a three-month consultation on the use of the spectrum.
It had been thought that the TV spectrum would be worth billions to telcos keen to access to the rarely available spectrum. The government plan was to use some of the spectrum for additional public service channels and auction off the rest to mobile phone companies and interactive specialists.
However, the mobile phone sector hasn't developed as expected with network operators allocating £30 billion to get their 3G networks up and running.
The BBC, ITV, Channel 4, MTV and Discovery are among those suggesting that the additional spectrum should be reserved for free-to-air digital TV broadcasts.
"Our aim is to make sure we advance the UK as a dynamic and competitive market for digital TV. But if we are to make best use of the TV signal spectrum in the future, we must start planning now," said Alexander.
The National Consumer Council argues that the draft Digital Action Plan, published last month, does not address the problem Anna Bradley, NCC Director said, "Consumers must continue to be able to access free-to-air public service broadcasting, so there is a need for an affordable and attractive, non-subscription based offering."
The development of Boxco, a consortium looking at developing an affordable box to access free-to-air services, is considered crucial to the government's switchover plans.
AOL /TW & Motorola pact
Motorola agreed two weeks ago to make some features of US media giant AOL Time Warner's interactive television service (AOLTV) available on its digital set-top boxes. Now (Tuesday 11/12/01) AOL Time Warner has signed a marketing deal with the wireless technology company Motorola, in which the latter will advertise its products across AOL/TW's variety of outlets and include the AOL Instant Messenger on its products.
Motorola plans to license Warner Brothers characters, such as Bugs Bunny and other Looney Tunes programming for products like ring tones for cell phones, screen savers and wireless games. Further financial details were not provided.
The company is also planning an ad campaign on such properties as the Time Inc family of magazines, Turner networks like CNN and TBS, and the America Online Internet service.
The AOL Instant Messenger will be built into Motorola's products as part of a joint technology and product development deal between the two companies.
TiVo
patents granted
PVR pioneer TiVo has been granted additional patents for its technology
and services, including one that protects functions at the core of its
digital recording devices, and another for inventions enabling networking
of multiple streaming media devices in the home.
The TrickPlay patent issued by the US Patent Office covers functions that
enable TiVo subscribers to pause live TV as well as rewind, fast forward,
play, and play in reverse television signals cached by its PVR. Storing,
editing and manipulation of video are also among the 64 functions supported
by the TrickPlay patent, TiVo said.
The Home Networking patent covers the method for connecting TiVo DVRs
and other streaming media devices to a network in the home.
"Our foundation technology for DVRs is just the beginning, and we continue
to extend that technology looking forward to the networked multimedia
home of the future," said Jim Barton, Chief Technology Officer at TiVo.
"Televisions, radios, telephones and the PC are among the products that
could access media on a home network.
Sonicblue Inc, the number two digital video recorder supplier, had threaten
to sue its rival TiVo unless licensing talks produced a breakthrough.
The company said on November 27 that it had received a patent covering
what it claimed were the basic elements of DVRs.
Sonicblue Chief Executive Ken Potashner said in a statement, "We expect
licensing opportunities to augment our product offerings and to generate
substantial revenue streams moving forward."
Ti"Inaccurate statements from SONICblue ... suggested that the two companies
have been engaged in licensing discussions,'' Reuters reported TiVo as
saying.
TV5
goes to America
No Zmeck in Austria
New
Chairman and CEO at Europe*Star
Naked News streaks south
Telewest
tests Playstation 2
RTL
results 1/3 down
Ottawa expected
to attack grey market
Tandberg
share trading halted
Match
TV launched
Quiero
TV plans opposed
BBC deputy
appointed
Pegasus to
increase revenue
Viacom Unites UPN
and CBS; Executive Quits
Telecinco
shareholders in buyout
TV5 goes to America
TV5, the
international French language channel, has announced that it is to start
operating in the USA, targeting a potential audience of 14 million viewers.
In a company announcement by TV5's recently appointed new chief, Serge
Adda TV5 states that, "The USA will be the first priority for TV5 in the
coming year.
We undertake to extend the availability of TV5 and at the same time increase
its presence in the USA." The figure of 14 million refers to the estimated
number of people of French extraction or who have an interest for French
language and culture.
TV5 was available in the USA several years ago via the large C-band dishes
intercepting transmissions that were essentially for internal use. When
alternative transport was deployed the C-band viewers of the channel were
suddenly cut-off.
TV5's US office is headed by Patrice Coubertin. It is based in Denver,
"... for reasons of marketing and cost. We had to be where the action
is," said Coubertin. "Denver is the headquarters of a large number of
cable and satellite companies and we will have to convince them to take
our channel."
TV5 is based in Paris. It draws its programmes from the public sector
TV in five French speaking areas: France, Belgium, Switzerland, Canada,
and Africa. It supplies five streams of programming in clear to air to
an estimated 600 million people world-wide.
Telecinco shareholders in buyout
Despite denials on Monday (10/12/01) of hostile intent by News Corp to take over German media group Kirch, the latter has accelerated plans to sell its 25 per cent stake in Spanish television company Telecinco - and is reportedly in advanced discussions to existing shareholders Italian broadcaster Mediaset, Spanish newspaper group Correo and Dutch fund Ice Finance NV. The shareholders have first call on Kirch's stake and were said to be discussing terms of a possible deal.
A deal could occur within weeks with one value of the stake put at a billion Deutsche Marks ($454 million).
Under Spanish media ownership rules, Mediaset can only buy another nine per cent in Telecinco - it currently owns 40 per cent of Telecinco and has operational control. It is not clear if Mediaset will work with partners.
Last October Kirch said it planned to sell the stake to help finance the merger of its core holding Kirch Media with its free-TV arm ProSiebenSat.1 Media.
News Corp issued a statement on Monday saying that it "denied published reports that the company was contemplating a hostile acquisition of Kirch Gruppe,'' a rare occurrence that analysts have described as 'believable.' However, Friday's FT (7/12/01) reported that taking control of Kirch had been one option looked at by News Corp to secure its 22 per cent investment, taking advantage of Kirch's debt problems. Kirch's loss-making pay TV station Premiere World, is part owned by Murdoch. If Murdoch decided to exercise his put option in October 2002 Kirch would have to pay €1.5 billion ($1.33 billion) in cash plus interest - compared to the $454 million that Kirch's Telecinco share sale would raise.
No Zmeck in Austria
There are now only four applicants for the nation-wide Austrian terrestrial TV licence following Gottfried Zmeck, Managing Director and 50 per cent owner of the German digital easy listening music TV channel GoldstarTV, withdrawing the application for his new company Mainstream Media. He said he could not find an investment partner for the project.
ATV returns to being the front runner in the race. The small Vienna-based cable channel was launched by the German TeleMunchen Group, which is owned by Herbert Kloiber, who is of Austrian descent. Should he win the licence he intends to start with a terrestrial reach of 80 per cent.
ATV employs about 50 people. The new slogan to promote the channels nation wide - 'New television for Austria - no earlier chance for it' - reminds viewers of the late break-up of the public broadcasting monopoly of ORF.
New Chairman and CEO at Europe*Star
Yves de la Serre has been named Chairman and Chief Executive Officer of Europe*Star Limited. He replaces Alain Roger, who is retiring after 20 years in the space industry.
Based in London, Europe*Star Ltd is owned 51 per cent by Alcatel Space and 49 per cent by Loral Space & Communications.
Yves de la Serre, 55, graduated from the Ecole des Hautes Etudes Commerciales (HEC) business school. He started his career with the financial division of Banque Indosuez, before joining the Alsthom group in 1982, where he held various operational responsibilities in finance and management. He was Chief Operating Officer of Alstom's Contracting sector in 1998 and in May 2001, he was named corporate secretary of Alcatel Space, and will maintain this position along with his new title.
Naked News streaks south
In what must be one of the first content migrations from the web to television, Toronto-based Nakednews.com has launched Naked News TV as a pay-per-view offering on iND2 and Hot Choice in the United States and on Viewerÿs Choice in Canada.
The 50 minute weekly program features various male and female hosts stripping as they read the news. Material on the web site describes the show as being 'bright, energetic and fast-paced.' The programme provides, international, national news, life and leisure, technology, sports and Hollywood gossip segments.
Nakednews.com the web site is available is a small screen format free of charge and for a membership fee, in a full screen version.
Telewest tests Playstation 2
UK number two cable company Telewest has begun what it says is the world's first PlayStation 2 broadband network.
The company will continue tests until the end of the year and expects to carry out limited public trials by the end of the first quarter. The company says that the objective is to develop a high-speed network that allows seamless multi-player gaming. Business Development Director of Sony Computer Entertainment, Nainan Shah, says she expects the trials to deliver, "a plug-and-play experience for multi-player gaming."
She also said that supplementary content such as news, reviews or the opportunity to download demos will also be provided.
RTL results 1/3 down
German broadcaster RTL Group Plc reports that it expects its 2001 EBITA to be 35 to 40 per cent below 2000's performance EBITDA of E555 million, before restructuring and investments in new businesses.
RTL also said that it expected the television advertising market in Britain, France and Germany to be down by up to 10 per cent year-on-year in each country.
However the company's forward bookings suggest advertising in the first half of 2002 will show continued weakness. RTL is also reviewing options for its Polish operations.
Ottawa
expected to attack grey market
Sources in Ottawa say the government will attempt to block the grey market
satellite business in Canada no matter what decision the Supreme Court
of Canada renders in the Bell ExpressVu suit presently before the court.
ExpressVu has appealed against a lower court decisions which have allowed
Can-Am Satellites of Maple Ridge, British Columbia to continue to operate.
Can-Am sells American DTH receiving equipment and provides accommodation
addresses in the US which allow Canadians to receive American DTH signals,
thus violating content licensing and distribution agreements.
The Canadian government is expected to issue a public statement supporting
ExpressVu before Christmas and is considering changing the Broadcast Act
if the Supreme Court decision, expected in the spring, rules against Canadian
rights holders. While ExpressVu is fighting Can-Am on copyright infringement
grounds Can-Am is arguing its case on a freedom of expression and access
to public airwaves grounds. Can-Am won its cases in the lower courts on
the basis that selling decoders was not against the law as written.
Tandberg share trading halted
Yesterday (Tuesday 11/12/01) saw speculation on the Oslo (Norwegian) stock market about Tandberg Television's fourth quarter financial results and the Stock Exchange halted trading in the shares.
The company issued a statement saying, "Tandberg Television has previously estimated flat revenues over the next three quarters. During the fourth quarter, order intake, especially on larger contracts, has been weak. For the fourth quarter this will mean a lower revenue, and thereby lower profitability, than previously expected.
Tandberg Television has an ordinary board meeting today (Wednesday 12/12/01), where the outlook for the fourth quarter and into 2002 will be discussed. Prior to the stock exchange opening on Thursday, the company says it will give a more detailed judgement of the
market situation.
Match TV launched
Match TV, a new TV channel from French media group Lagardere, started transmitting on Monday (10/11/01). Broadcast by CanalSatellite and available on all France's cable operators services, the channel aims to be a TV version of the 'Paris Match' magazine.
With a reported budget of FFr80million, Lagardere aims to make the channel profitable within two to three years.
Quiero TV plans opposed
Spanish terrestrial digital platform Quiero TV, has received opposition to a proposed €19 million capital increase from Spanish publisher Planeta, one of the company's founders and a 12 per cent shareholder via Sofisclave 98.
Planeta is quitting management of the company citing differences with Spanish telecoms holding company Auna, which controls 49 per cent of Quiero capital.
Planeta's Chief Executive Jose Manuel Lara Bosch left his post as Quiero Chairman, followed by two other key Quiero executives linked with Planeta. Also Planeta's Quiero board member did not attend the board meeting of 23rd November in which another capital increase of €107 million was to have been agreed (eventually not approved).
In addition to Planeta seeking to leave the venture, Auna is also seeking a buyer for its stake. French group Bouygues and Echostar issued a joint offer.
BBC deputy appointed
Lord Ryder of Wensum, former Conservative Chief Whip, is to become the new Vice-Chairman of the British public broadcaster the BBC, seen as a political decision to counterbalance Chairman Labour-supporting Gavyn Davies.
Following government approval of the appointment Lord Ryder will work alongside Gavyn Davies and Greg Dyke, the BBC Chairman and Director-General, both of whom have been prominent Labour supporters. Like Davies, Lord Ryder, was appointed by an independent panel set up under the 'Nolan rules' designed to guarantee openness and honesty in appointments.
Lord Ryder was Chief Whip under Conservative Prime Minister John Major between 1990 and 1995. He quit as MP for Mid-Norfolk in 1997 to pursue a career in the City.
Pegasus to increase revenue
Pegasus Communications Corp expects to increase revenues from its satellite television business by 6.6 per cent in the fourth quarter compared to last year's revenues. However, net subscriber additions are slowing down, from 36,000 in the third quarter, to 35,000 in this quarter, the company said on Monday (10/12/01).
The total revenues expected on Pegasus Satellite Communications unit is $215 million, compared with $201.5 million a year ago. Pre-marketing cash flow is expected to total $60 million, compared with $59 million a year ago.
Subscriber acquisition costs are expected to total $23 million for the fourth quarter, down from $34.8 million in the third quarter, with acquisition costs per subscriber declining to $225 from $310.
The company said its Pegasus Satellite Communications unit would offer $250 million in senior notes due January 15 2010.
The company expects to use the net proceeds from this offering to retire its interim credit facility, redeem senior subordinated notes of its Pegasus Media & Communications unit, reduce indebtedness under the company's revolving credit loans and for working capital and general corporate purposes, reported Reuters.
Viacom
Unites UPN and CBS; Executive Quits
UPN and CBS, Viacom's two US network television operations were consolidated
on Monday (10/12/01) with Leslie Moonves, President of CBS put in charge
of both.
Kerry McCluggage, the long standing Chairman of the Paramount Television
Group, announced his resignation after Viacom took away his control of
the UPN network and handed it to Moonve.
Mel Karmazin, Viacom's President, said that the integration of CBS and
UPN was, "The culmination of a process that began with the merger of Viacom
and CBS," last year.
Since its creation in 1995, UPN has failed to build a national audience,
relying on an amalgam of local stations, often among the lowest rated
in the US markets. McCluggage could have remained at Paramount Television,
but was upset by the UPN action and resigned because he considered it
a violation of his contract. No successor at Paramount Television was
named yesterday.
The move contradicts a recent statement by Sumner M Redstone, Viacom's
longtime Chief Executive, where he said that the two networks would remain
separate.
It is unclear how the UPN and CBS - the larger of the two networks - sales
forces will work together. And it is uncertain whether the direct supervisor
of UPN, Dean Valentine, the Chief Executive - who has a lawsuit pending
against his network, which he says owes him $22 million in bonuses - will
stay in place or whether the network will change its programming direction.
Moonves has been credited with reviving CBS as a fully competitive network
since he became President in 1995. Moonves said, "Clearly, there is some
economic integration that could help," but had not had time to, "map out
a plan" for UPN.
ESPN
in Euro launch
NTL
jobs cut
QVC
Germany in
the black
AT&T
keeps options open
AOL
chief for Channel4
BBC3
revived
Judge
delays Excite hearing
Alcatel
sells 3.8m Thomson shares
ESPN
in Euro launch
ESPN Classic Sport, a joint venture between US sports network ESPN and
private equity firm Sports Capital Partners is a new channel of classic
sporting moments due to launch early next year.
ESPN, 80 per cent owned by The Walt Disney Company,
sees
the move as a precursor to the introduction of live sport. Its new channel
will be the first ESPN-branded channel in Europe, initially targeting
2.5million homes in France.
To date ESPN's only European presence has been as a supplier of syndicated
content, such as late night NHL ice hockey and major league baseball and
a shareholding in Eurosport, the pan-European satellite channel.
ESPN Classic will broadcast archived material such as The Fights and Times
of Muhammad Ali, Tour de France and the best moments from Wimbledon -
a low risk approach compared to competing for top current sports rights.
ESPN Classic Sport, 70 per cent owned by ESPN and 30 per cent by Sports
Capital Partners, will run as a basic channel on satellite and cable.
TWI, Mark McCormack's programme arm, is producing the channel.
NTL jobs cut
The UK's largest cable company NTL said on Monday (10/12/01) that is to implement new measures to cut costs including both compulsory and voluntary redundancies which will see a total of 4,000 jobs axed. The main areas affected will be the company's direct sales and marketing operations across its four divisions of consumer, cable, business telecommunications and broadcast. No customer serving roles were under threat, said a spokesperson but further cuts 'could not be ruled out in the current economic climate.'
In July the company said it was going to cut jobs, but this new announcement duplicated the number of people being axed. The losses will mean that NTL has reduced its workforce from 21,000 to 13,000 since the beginning of this year.
The measures reported in Broadcast/Produxion will not be just personnel cuts but it will include a review of all operating and capital expenses, a pay freeze for all managers and a review and removal of all non-essential consultants and contractors
Barclay Knapp, NTL Chief Executive Officer described the initiative as 'prudent in the current climate.' Chief Operating Officer Stephen Carter said that NTL was determined to drive down costs and improve customer service. NTL has around three million subscribers of which 1.4 million take digital television services.
QVC Germany in the black
For the first time in its history, QVC Germany expects to achieve a positive EBIDA - due in the last quarter of this year.
"The past quarter's growth of 60 per cent was extremely strong," commented Francis N Edwards, the German QVC CEO when presenting the figures. Last year the shopping network saw revenue of €149 million, whereas this year the company expects net revenue of about €215 million - up 45 per cent. This is a particularly successful, Edwards said, given the poor economic situation around the world including Germany.
The year 2001 has been QVC's year of investment in Germany. In March, the construction of a new distribution centre was launched at a cost of €87 million, the third largest investment in the 15 year history of QVC Inc, the US parent of the German home shopping venture. In May the first German outlet store was launched, followed by the second this month. In July and August QVC moved into its new studio facilities in Dusseldorf.
The client side of the business is also reported to be developing satisfactorily. The total number of clients rose by 37.7 per cent to 1.75 million, and the order volume by 44.5 per cent to 4.75 million.
AT&T keeps options open
On Sunday US telecommunications giant AT&T announced that it had not accepted any bids, but hopes to make a decision by the year end on whether to merge its AT&T Broadband subsidiary with one of the cableco bidders for the unit, or keep it within its own portfolio.
Consequently AT&T is asking bidders for more information about their multibillion-dollar offers, while stating that no option has been ruled out and the board has authorised continued discussions with "all interested parties."
US cablecos Comcast and Cox Communications, and media giant AOL Time Warner, have bid for the USA's largest cable TV firm, while Microsoft has backed both the Cox and Comcast bids to prevent expansion of rival AOL Time Warner.
AT&T's planned float of its cable assets was halted in July when Comcast bid for it with $44.5 billion in stock and agreed to assume $13.5 billion in debt. AT&T declined the unsolicited bid, objecting to its price and structure, but the move encouraged AT&T to look at alternatives to a float. AT&T is seeking to cut its $36.5 billion in net debt, but would like to retain some control over its cable assets. If Microsoft's earlier suggested injection of cash were to occur, AT&T could decide it did not need to loose this strategic asset.
AOL chief for Channel4
Michael Lynton, President of AOL International, is reported to be a candidate for Chief Executive at UK terrestrial Channel 4 television.
Mark Thompson, the BBC's director of television, is reported to be the front runner as the job has traditionally gone to a programme maker, while Lynton's background is in publishing in the US - but with the requisite commercial experience sought by Channel 4.
The Channel 4's board was due to meet yesterday (Monday 10/12/01) to discuss the two candidates said to be in the running to succeed Michael Jackson, who left at the end of October to join Barry Diller at USA Networks.
BBC3 revived
The UK's public broadcaster BBC, has re-submitted its proposal for new digital channel - BBC 3 - to the Department for Culture Media and Sport (DCMS).
In September the corporation submitted a youth-focused plan for a new digital channel, but Media Secretary Tessa Jowell rejected it claiming that the blueprint was 'not truly distinctive' and too similar to other services already provided by the commercial sector.
This time the BBC is making more emphasis on news, current affairs, education and music and arts programming for BBC3, although it will still be aimed at the youth market.
Music and arts will represent 15 per cent of the total hours broadcast, and over a third of specially commissioned programmes for the channel. The news will run 15-minutes on peak-time, complemented by hourly bulletins to midnight. There will also be 30 new half-hour current affairs programmes aired each year, with 30 hours of new education programmes and 50 hours of new music and arts programmes.
The channel will have a 20 per cent interactive element, with a special emphasis on educational programmes. It also promised 'a greater commitment to promoting new talent, with at least six new talent initiatives every year.'
The corporation stressed that BBC 3 'will be an inherently multicultural, interactive channel, committed to engaging a demanding audience with high quality, distinctive, innovative programming in every genre.'
Some 80 per cent of the channel's airtime would be devoted to specific BBC 3 commissions, with 90 per cent of all programming from the UK.
BBC Choice controller Stuart Murphy, who worked on the proposal and is expected to take control of BBC 3, said, "No other channel has the same commitments to promoting new talent with risk taking and innovative programming, covering every nation and region and every culture and race, and offering a high level of online and interactive support."
The new plans, available on the DCMS website, will be put out to public consultation with a January 25 deadline for responses.
Judge delays Excite hearing
A hearing to consider deals worth more than $355 million which would extend Excite@Home's supply contracts with several partners will be heard today (Tuesday 11/12/01) in a California bankruptcy court.
Judge Carlson delayed his ruling to give Excite's bondholders and other creditors more time to look over the contracts between the bankrupt high-speed Internet service provider, and cable partners Cox and Comcast.
Carlson ruled that Excite could shut its service if its cable partners AT&T, Cox and Comcast, did not agree to higher-paying contracts for the company's service.
AT&T says all of its customers have now been migrated to its new network. AT&T recently rescinded its bid to buy Excite's network assets for $307 million.
Alcatel
sells 3.8m Thomson shares
Alcatel has sold 3.79 million shares of Thomson Multimedia through a private
placement executed via an accelerated book-building process.
Following this transaction Alcatel's shareholding in Thomson Multimedia
is reduced to 9.654 million shares (3.6 per cent of the share capital).
Alcatel intends to maintain its shareholding at this level, and will keep
its seat on the board of Directors of Thomson Multimedia as a strategic
partner.
Alcatel confirmed it will continue to develop the partnerships with Thomson
Multimedia, particularly in developing Video over DSL solutions.
Towercast tests DTT in Paris
Vivendi eyes Murdoch's Italian pay-TV
Kirch takeover rumours persist
Canal and Polish UPC combine
ZDF GD appointment postponed
SVT sees HDTV as DTT saviour
Phoenix seeks news licence
Towercast
tests DTT in Paris
Towercast,
a subsidiary of French private radio network NRJ specialising in transmission
services, and now the leading French private transmission company, has
begun testing digital terrestrial TV from three sites around Paris, taking
advantage of the decision to end the monopoly held by France Telecom subsidiary
TDF.
During the
test Towercast
is
transmitting seven channels, including one in Dolby Digital sound, plus
a couple of radio stations (one of which is unsurprisingly Towercast's
parent NRJ) and a variety of interactive services in several formats,
using statistical multiplexing and SFN (single frequency) technology on
channel 67, powered at 800 watts each. This is rather more than is planned
for a single multiplex, to show that the compression and statmux can provide
additional capacity, eg for multilingual or 5.1 sound tracks.
The trial will include tests of interactivity, reception on portable and
mobile TVs, in partnership with the French DTT players, including manufacturers
and channels, resulting in taking a total of 250 measurements in 50 locations
in Paris. Portable operation is seen as important for Paris, as there
are many multi-occupation dwellings using communal antennas which building
owners may not be prepared to pay to have upgraded.
DTT is set to launch in France early in 2003, with 33 channels (38 in
Paris), half of which will be free.
Vivendi eyes Murdoch's Italian pay-TV
As reported by Advanced-Television on Friday (07/12/01) Italian competition
authorities are opposed to the idea of foreign ownership in their media
market. This could potentially ruin Rupert Murdoch's plans for expansion
in the Italian pay-TV business.
Jean-Marie
Messier, the Vivendi Universal Chairman and
Murdoch, News Corp's Chairman have been working since July on the possibility
of a merger of their respective loss-making Italian pay-TV companies,
Stream and Telepiu.
The planned merger would allow the new entity to break even by 2003, and
would give Vivendi 75 per cent of the venture and News Corp, which would
buy Telecom Italia's stake in Stream, the rest.
But Vivendi Universal changed its mind and on Friday night said it was
looking to buy Rupert Murdoch's Italian pay-TV business. A deal would
see Murdoch walk away from what has been an expensive Italian experiment,
which lost E400 million ($356 million) last year alone.
Murdoch said only last month, that he would look for a new partner for
Stream if regulators blocked the merger with Telepiu but he indicated
at the time that he would not pull out. That may have been before he knew
how serious the regulatory concerns were, analysts said.
A Vivendi Universal spokeswoman said late on Friday that the French media
company was still negotiating with News Corp over a revised proposal which
would see Vivendi Universal acquiring Stream outright. The revised transaction
is expected to be presented next week, reported the FT newspaper.
"We knew that Italian authority didn't agree with Murdoch," a Vivendi
spokeswoman said on Friday. "For Canal Plus, Italy is a big problem. We
have to solve the Italian problem," the spokeswoman added.
Stream and Telepiu have both been losing money and Murdoch and Messier
have been looking for a route out without losing their bridgehead in the
Italian media market. The competing services paid high prices for broadcasting
rights to football matches and other programmes, as they sought to secure
exclusive content to lure new subscribers. At the same time, both companies
spent heavily on marketing and acquiring new customers.
The decision from the Italian antitrust authority is expected for next
Thursday, but it is understood to be arguing that co-ownership of the
merged platforms by two of the world's largest media companies would shut
out potential new entrants. Even so Italian daily La Repubblica reported
this week that Italy's Antitrust Authority may be more likely to approve
an acquisition by Telepiu of Stream, than a merger of the two.
The merger as currently envisaged would allow the new entity to break
even by 2003, and would give Vivendi 75 per cent of the venture and News
Corp, which will buy Telecom Italia's stake in Stream, the rest.
Kirch takeover rumours persist
Rumours that German TV conglomerate KirchGroup is facing a hostile take over by Rupert Murdoch's NewsCorp are firming up - with crisis meetings reported to have been held over the weekend by Kirch to consider defence measures.
Following reports in the Financial Times, both in the UK and Germany, and on advanced-television.com, last Friday, German sources confirmed over the weekend that 'something' is going on. Murdoch is believed to be trying to influence banks that gave €4billion credit to Kirch to cooperate with NewsCorp.
The current global economic situation is encouraging banks to withdraw from their more risky investments. Kirch is high in debt plus the economic downturn is causing a dramatic downturn in advertising revenues. Some banks in the City of London are said to have already signalled a green light to Murdoch.
Liberty Media's John Malone, who is in the process of acquiring more than 10 million cable homes, will, along with NewsCorp, bethe largest shareholder with an 18 per cent stakes, via BSkyB's 22 per cent stake in Kich's debt-laden digital platform Premiere World. BSkyB has the right to return the shares to Kirch if business figures remain behind expectations. Kirch then has to return the purchase price of €2 billion (DM 2.9 billion) plus interest.
In order to be able to pay this Kirch is expected to speed up the sale of its 25 per cent stake in Spanish TeleCinco, which is considered to be Europe's most profitable commercial TV venture. Italy's Silvio Berlusconi, 40 per cent stakeholder in TeleCinco and a number of other projects, is considered to be a potential buyer. Kirch would not comment on either of the issues.
Canal and Polish UPC combine
Canal+ Group, the TV and film arm of France's Vivendi Universal, and Dutch-based pan-European cableco UPC (United Pan-Europe Communications NV) have finalised the marriage of their TV platforms in Poland today (Monday 10/12/01), four months after signing the merger deal.
The deal covers satellite platforms Cyfra+ and Wizja TV as well as the premium channel Canal+ Polska. The deal received the green light from the Polish monopoly authority on November 13.
The new joint platform will be launched in the first quarter of 2002. It is owned 75 per cent by Canal+ Group and 25 per cent by UPC and will draw on the programming of both partners to provide a wide variety of channels. It starts off with a base of over 700,000 subscribers so it expects to reach break-even 'quite soon' - with the size to achieve profitability.
ZDF GD appointment postponed
The election of the new General Director of the German public broadcaster ZDF was postponed to the 18th of January because the Networks public council could not agree on candidates for the successor of Dieter Stolte who has been Chairman for 20 years.
The council's Chairman Mr Kraske said that most of the members of the commission assigned to find suitable candidates believed it was necessary to look outside the network. "I didn't participate in this quest because I didn't believe the task would succeed," Kraske said. The public discussion on candidates is a hot topic in the German media and Stolte, asked if this failure to agree on the new head would harm the network, simply replied, "Yes." He refused to give any further explanation saying. "Yes and No are categories precise enough."
Stolte himself faced a similar debacle 25 years ago when he was first a candidate and failed. He disagreed with the view that ZDF had failed to learn from that experience, attributed to too much political influence on the decision, which was likely to cause the situation to repeat itself. "We are living in a political world, there is nothing to avoid," he said and added, "The only thing we can do is to make things work smoother."
The General Director of ZDF is the most powerful German media official. While its public spreads nation-wide; ARD is formed from nine regional networks of different sizes whose individual General Directors have to agree on any decision, while the 'Intendant' of ZDF only has to abide by the control of the networks public council.
SVT sees HDTV as DTT saviour
The new management of Sveriges Television, SVT, Sweden's public service broadcaster, are now pinning their hopes on HDTV as a way of promoting public interest in DTT.
SVT is currently developing into one of the strongest advocates of DTT in Sweden, also pushing for a rapid switch-off of analogue transmissions.
Most other players in this game, including the all-party digital parliamentary committee, are aiming at a switch-off in 2007 at the earliest while SVT and its new MD, Christina Jutterstroem, have voiced ambitions to make a switch-off possible as early as in 2004. The primary motive for SVT is financial. By closing down analogue transmission - for the two national SVT channels and for its private rival TV4 - it could save some 450 million Swedish krona (£30 million) each year, potentially leaving that money to be invested in programmes and production.
There is currently a group within SVT working on various plans to promote DTT and reach the one-third of the Swedish nine million population which have chosen to stick to watching the three analogue terrestrial services. Among the many ideas put forward are the launch of a number of new 'niche' services, various interactive applications, and now the introduction of HDTV.
SVT showed an early interest in HDTV in the early Nineties when SVT and Teracom - the owner-operator of all Swedish terrestrial television and radio transmitters - formed a company, HD Divine - to launch HDTV services. Many trial operations were carried out creating a lot of attention, but not much has happened since then.
"We believe strongly in a future where at least two of our national channels will offer HDTV services on a regular basis," Haakan Oester, the new head of SVT's corporate development department, comments. The idea is to broadcast HDTV in parallel with the standard digital signals, thus leaving it to the audience to decide how to receive the signals, and how much to invest in new set top boxes or new integrated sets.
Sweden was the second country in Europe to launch DTT operations and by April this year he project had been running for three years. But the interest from the audience has been minimal with less than 100,000 households investing in DTT STBs to date.
"Our opinion is that it is not quantity but quality which will boost interest for DTT in Sweden," Oester continues. He also reveals that SVT is aiming at starting regular HDTV trial transmissions over selected areas in 2004 or 2005.
SVT has been recording several productions in HDTV standard, for some years, including 'Faithless', the 1999Ingmar Bergman script, directed by Liv Ullmann.
Phoenix
seeks news licence
Phoenix Satellite TV Holdings is appealing against a decision by Taiwan
to turn down its application to run a 24-hour news channel, InfoNews,
according to Chairman Liu Changle.
Taiwan's Government Information Office that regulates TV rejected Phoenix's
application last month, citing regulations violations. But the decision
is likely to be politically-motivated and linked with Phoenix's perceived
stance towards mainland China - its largest market.
China regards Taiwan as a renegade province and does not recognise its
bid to be regarded as a sovereign entity. The two sides not have official
diplomatic relations and the stand off between them was aggravated by
the victory by the pro-independence party in Taiwanese elections at the
end of November.
Phoenix is the first foreign broadcaster to have an application turned
down by Taipei, and Lui enjoys close ties with senior Chinese officials,
which further bolsters the view that the bar is political.
Meanwhile Liu said that his company wants to cut five per cent from its
operating costs, but that the reductions will not come through staff cuts.
He added that the company had posted a $4.5 million loss in the three
months to September 30.