 |
|
|
||||||
 |
|
|
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
NEWS Monday 5th August July - Monday 12th August 2002
Scroll down page or click below for news - latest first
| Tuesday | |||||
Vivendi may sell games for E2bn
Vivendi Universal's new chief executive, Jean-Rene Fourtou, expects to see completion of his strategic review of the company's operations completed next month. Vivendi's moves to cut its E19 billion debt were initially expected to include a sale of its 44 per cent holding in revenue earning French telecoms operator Cegetel, worth some E5 billion- but this is now thought less likely, with the sale of Vivendi Universal Games Inc now expected to raise the cash.
Next month sees the end of a lock-in agreement between shareholders - Vivendi with 44 per cent, SBC and Vodafone with 15 per cent each and BT with 26 per cent - which would be the time for any move to be made with both BT and Vodafone among potential buyers. But commentators are now speculating that Cegetel may be retained due to the current low valuations of telecoms companies. In fact there is even concern by some shareholders that Vivendi might increase its Cegetel stake.
If Cegetel is retained other assets will need to be sold. Fourtou has already announced plan to float the core of Canal Plus Group on the Paris stock market and sell the rest of the pay-television unit in parts in a bid to raise some E5 billion, but that move is considered unlikely until March at the earliest due to poor market conditions.
Therefore the pressure is on to sell other assets, such as the US-based videogames business, Vivendi Universal Games Inc, which has been identified as non-core and expendable - a reversal of former CEO Jean Marie Messier's view that games were a key part of his 'Convergence' vision.
Vivendi Universal Games Inc is part of Vivendi Universal Publishing, and is estimated to be worth some E2 billion. It is the second largest maker of PC games and operates the biggest free online gaming site on the Internet. Potential buyers include Microsoft Corp, Sega Corp and Sony Corp - all of whom have the finance and are acquiring new assets in this area.
Back to top
Berlusconi bias surfaces
Confirming the fears of opponents when Italian media magnate Silvio Berlusconi became Prime Minister, a recent survey reports that Italy's state broadcaster RAI has cut news coverage of the opposition by 10 per cent since coming under Berlusconi's control.
As Prime Minister Berlusconi has indirect control of the state broadcaster RAI, which combined with the three main commercial television channels that he owns, gives him influence over about 90 per cent of the country's broadcasting system.
Daisy party media spokesman Paolo Gentiloni was quoted by the Guardian newspaper as saying, "RAI news programmes are increasingly the voice of the government, while the space reserved for the opposition has been drastically reduced."
A study by Pavia University analysed time given to government and opposition party members. It found that in the first three months that RAI was run by Berlusconi's appointees, the opposition was given 23 per cent of political airtime on RAI news compared with 34 per cent for Berlusconi's House of Liberties alliance when it was in opposition in 2000.
The figures include a separate category for the amount of coverage given to institutional figures such as the president of the republic.
RAI 2's news programmes, controlled by Berlusconi's Northern League allies, were highlighted by Gentiloni as the most altered.
In 2000 the opposition received 44 per cent of the political airtime on RAI 2 bulletins, compared with 43 per cent for the centre-left Olive Tree government. But between May and July this year, the government had a figure of 61 per cent on RAI 2, with 19 per cent for the opposition.
On the Berlusconi owned networks the centre-left opposition received less than 5 per cent of the political airtime on two channels, and 23 per cent on the flagship Channel 5 news programme.
Gentiloni is calling on parliament to act on an appeal by the President, Carlo Azeglio Ciampi, to ensure that media pluralism is preserved and adequate access is guaranteed to the opposition and to minorities in general.
Back to top
Russia's subliminal fears
All Russian TV channels are to be screened for extra video frames containing subliminal messages by the end of the year.
It seems that there has been a growth in the reported use of such messages on the Russian airwaves. ITAR-Tass news agency reports unofficial data suggesting a fifth of Russian TV programs have extra frames, containing messages ranging from those urging viewers not to switch channels to political ads.
In response, Valery Sirozhenko, the country's Deputy Press Minister, has said that special equipment will be used to monitor channels inserting extra frames. Violators could face fines or have their broadcast licenses revoked, Sirozhenko told ITAR-Tass news agency.
Back to top
European VOD over IP launched
Intertainer Europe is a new IP VOD service for European broadband users formed by a joint venture of broadband video on demand (VOD) supplier Intertainer and Italian new media conglomerate Freedomland.
Based on Intertainer's US based broadband VOD service, the company will feature a mix of American and European-produced content.
Intertainer Europe will be owned 51 per cent by Freedomland spa and 49 per cent by Intertainer; Freedomland will invest E15 million in the joint venture. Freedomland will invest E10 million of equity in Intertainer.
Intertainer will work with Freedomland to acquire content and make its technology platform available to the venture. Intertainer Europe will be headquartered in Italy and will be distributed in more than forty mainly European countries.
Back to top
Globo looses Net Sat control
Brazilian media giant Globo has reduced its stake in satellite TV company Net Sat Servicos - which operates under the Sky brand - from 54 per cent to 49.9 per cent, ceding control of the company.
It has not been revealed which of Globo's partners in Net Sat, News Corp or Liberty Media, has bought Globo's stake. Prior to the sale, News Corp had a 36 per cent stake in the satellite TV firm and Liberty Media had 10 per cent.
Back to top
SES signs Deutsche Welle deal
German broadcaster Deutsche Welle has signed an agreement with SES Americom for C-Band capacity and digital transmission services on Americom-1. The capacity will be used to deliver international TV and radio programming in North America and the Caribbean.
Back to top
Lachlan in court again
In addition to being cited in a billion dollar legal dispute with Gemstar, Lachlan Murdoch, son of Rupert and heir apparent of the News Corp organisation, is now in court over last year's collapse of the discount telephone company One.Tel, with E2.75 billion debts one of Australia's worst corporate disasters.
Murdoch, chairman of News Ltd, the Australian subsidiary of News Corp, admitted to a liquidator's inquiry that he did not research the background of One.Tel executives before investing in the company in February 1999. One of One.Tel's co-founders, Jodee Rich, had previously run a software company that collapsed.
News Corp lost more than E275 million when One.Tel went into liquidation in May 2001.
Back to top
FCC anti-recording discussions
The US Federal Communications Commission meeting on Thursday morning (not concluded at the time of going to press 6.0pm GMT), was expected to approve implanting of anti-copying technology into the next generation of digital TV receivers.
The move follows pressure from Hollywood which is threatening to withhold its movies unless cable companies are given the right to prohibit taping of shows.
They are concerned that when US broadcasters begin delivering digital TV signals - due in 2006 - viewers will receive perfect copies of films in a recordable format.
A working group of broadcasters, studios and hardware manufacturers called the Broadcast Protection Discussion Group (BPDG), concluded after 16 meetings and teleconferences that the idea of earmarking digital TV broadcasts as not for copying "is technically sufficient" and necessary to thwart illicit copying.
Under the BPDG plan, a digital television receiver would recognise flagged digital content and allow consumers to record it only in lower-quality analogue form or encrypted digital form. The encrypted digital version would be intentionally disabled so, for instance, it would only be viewable on the recorder that was used to create it. Digital content can also be flagged, according to the BPDG, as permitting open copying.
The FCC's draft rules are reported to cover a range of proposed regulations, including the "broadcast flag" proposals.
Electronics manufacturers see the move as devaluing VCRs, according to Michael Petricone, a member of the Home Recording Rights Coalition, with Consumer groups also opposing the move.
The next generation of digital video recorders with PVR functionality will also be hit by the Studio's moves.
"As of today, there is no legal way for (broadcasters) to prevent anyone from copying. Ultimately, we think it would be damaging to the customers if they couldn't time-shift their shows," Andy Wolfe, SonicBlue's chief technology officer is reported as saying.
Consumers might not buy impaired receivers if given a choice, so action by the FCC or Congress would then probably be needed to compel software and hardware manufacturers to recognise and abide by the "broadcast flag."
Following the FCC's proposed regulations appearing later this month, the public will have up to two months to comment and an extra month for reply comments then a vote on a final set of regulations could occur as early as next year.
Back to top
|
Microsoft
ready for mass market |
|
Microsoft ready for mass market
Microsoft has apparently not given up on its foray into the cable TV market, and is reporting that it has now overcome difficulties with its software at Portuguese cableco TV Cabo,
Highly publicised anonymous criticisms were emailed to the trade press following the June 2001 launch of Microsoft's interactive TV software.
Initial forecasts were for 100,000 clients by the end of 2001, but by November the total was some 2,500, with TV Cabo officials declining to specify current numbers.
Reuters reports a TV Cabo spokesman as saying, "Those (November) numbers have tripled or even quadrupled, but that has no meaning because we are working with 1.2 million homes. Our aim is mass marketing and we can only do that with a reliable product."
"We will move on to a new version (of the software) in August which will solve the technical problems and then we will have grounds for saying we have a reliable product," the TV Cabo spokesman is reported to have added.
Microsoft Chairman Bill Gates last month told analysts and reporters that interactive TV was still a priority for the company despite having sustained considerable losses on its investment to date. But the company is seeking expansion beyond the PC and the interactive TV has clear parallels in technology and market presence.
TV Cabo is now offering the interactive service - enabling TV based e-mail, home banking and shopping, gaming and betting E15.20 per month following an initial payment of E147.12, which includes free Internet access for six months.
TV Cabo is part of PT Multimedia, itself a unit of phone company Portugal Telecom.
Back to top
Nielsen tracks TiVo viewing
Nielsen Media Research and PVR pioneer TiVo have agreed to add the viewing habits of TiVo users to the Nielsen viewing ratings.
Now iTV viewers who record shows on a TiVo device to watch later will be counted in the total audience.
The move was revealed by Technology Marketing, part of a Nielsen Media Research sister company, though it has not been officially confirmed. However, web site Netwert reprinted a letter to clients from Nielsen Media Research's President and CEO, Susan D Whiting saying that Nielsen and TiVo have developed a software upgrade "that will enable the extraction of tuning, recording and playback information from TiVo's PVR system."
As a result Nielsen Media Research need to develop entirely new business rules, editing and crediting criteria, new calculation and data processing software, and, ultimately, implement 'playback-based' reporting systems. Otherwise PVR and other 'time shifting' usage data is not included in syndicated reports.
Because only some 80 households out of a 30,000 Nielsen Media Research households metered sample have TiVo devices, they will initially be excluded from sampling until such new reporting systems are introduced.
Back to top
Mockridge appointed at Stream
Tom Mockridge has been appointed Chief Executive and board member of Italian pay TV company Stream, which is 50 per cent owned by Rupert Murdoch's News Corporation.
Mockeridge, 47, is the former Chief Executive of Murdoch's Independent Newspapers Limited, and Chairman of Sky Television NZ, a subsidiary of News Corp, which the New Zealander forecast will be profitable by 2004 following closures and mergers in the group. Mockeridge has also served as Chief Executive of Foxtel, the Australian pay TV company, and been a senior executive at News Corp's Asian subsidiary Star TV.
Stream's interim Chief Executive Marty Pompadour will remain as Chairman of News Corp Europe.
Back to top
New head at AOL
Jon Miller, a former USA Interactive boss, has been appointed chief executive of the America Online internet business.
America Online heralded the convergence age on January 1 2000 with the acquisition of Time Warner, but the division is now a drain on the joint company's earnings and share price.
Advertising revenues have fallen, subscriber growth is low, and now the company is to be investigated by the securities and exchange commission over accounting methods prior to the Time Warner acquisition.
Miller, 45, comes from a broadcasting background, though most recently he resigned from Barry Diller's USA Interactive in June after the company sold its television and film assets. Miller had been president and chief executive of USA Information and Services, a division USA Interactive, where he was described as the company's No. three executive. He also ran USA's e-commerce division including Ticketmaster, Hotels.com and the Expedia travel site, and had been head of its broadcasting division. Under Miller, USA Information and Services generated E4.74 billion in annual revenue, with 15,000 employees
Miller is one of the first outsiders to take a senior position at AOL, and has won praise in the industry for not being purely a New Media name. "His experience on the traditional side gave him and gives him more credibility on the new media side," Bill Daugherty, co-Chief Executive of the Excite Network has been quoted as saying of Miller.
Miller will report to Don Logan, the Time chairman recently promoted to oversee America Online, publishing and cable.
AOLcore earnings of E747.6 million, are down from E1,030 million a year earlier. The company added 492,000 new subscribers compared to an expected a million.
Back to top
Cablevision to sell assets?
Cash-strapped US cableco Cablevision Systems is ending the tracking stock of its programming subsidiary, Rainbow Media Group.
On August 20, Cablevision will distribute 1.19 shares of its own stock in exchange for each share of Rainbow, pushing Rainbow shares down 9 per cent to close at E14.2. Cablevision ended at E11.9, down 6 per cent (the same day Cox shares fell 19 per cent and Comcast 13 per cent) .
Cablevision wants to be able to sell its cable channels - if necessary - to ensure it can fill a potential E1.58 billion funding gap for 2003. Plans will be revealled at an analysts meeting today (Thursday 8/8/02).
The channels owned by Rainbow have been valued at between E5.53 billion to E7.11 billion. Potential buyers include NBC, which owns 22.5 per cent of Rainbow, MGM, Fox (which owns 40 per cent of a partnership with Rainbow that includes several regional sports channels), Viacom and Comcast.
Fox has a clause in its sports partnership which would force Cablevision to pay as much as E1.58 billion for its stake.
Cablevision also has other assets it could sell such as its interest in Madison Square Garden, Radio City Music Hall, the New York Knicks and Rangers, consumer electronics chain The Wiz, Clearview Theaters, some PCS (wireless) licences it owns or some of its New York cable systems.
Back to top
Swedish 3G delayed
Orange, one of Sweden's four 3G licence holders, has delayed its 3G launch in the country, due by the end of 2003, by as much as three and a half years. It is also seeking to reduce its coverage obligations from 8.86 million people to 8.3 million.
Orange did not bid at auction for the Swedish wireless broadband licence, but won the award in a 'beauty parade' in 2000, along with Telia, Tele2, Vodafone and Hi3G, paying a minimal amount but agreeing strict service obligations.
Hans Brandstrom, head of Sweden's telecoms authority, the PTS's mobile telecoms services unit, commented, "Orange has sent us an application which implies a postponement of the 3G build-out until 31 December, 2006."
While 3G mobile technology will enable a range of multimedia services through mobile phones, such as faster internet access and watching video clips on handsets, the infrastructure build will be capital intensive and it is not clear how much consumers would pay for such services.
Critics question how companies in say the UK and Germany, who paid heavily for their 3G licences, can make the service a success, when companies not burdened with licence debts appear to be finding it difficult. Orange is a subsidiary of France Telecom, which has E63 billion debt, including costs incurred by its MobilCom subsidiary which invested in 3G in Germany.
Finland's Sonera and Spain's Telefonica have recently abandoned plans to develop 3G in Germany, writing off a E8.4 billion investment.
Some E100 billion has been invested in European 3G licences, with little prospect of recouping the investment.
Back to top
NDS
results up despite setbacks
NewsCorp TV software subsidiary NDS's full year results show revenue up
12 per cent to E368 million, predominantly from the company's flagship
conditional access software.
Operating income before exceptional items and goodwill amortisation is
up 23 per cent for the full year to E82 million) - exceptional costs reached
E6 million, including E2.5 million litigation costs in the E1 billion
lawsuit with CanalPlus - now dropped - accusing NDS of aiding pirates
to break Canal Plus' encryption software. Ironically, NDS is now seen
as a potential buyer of Canal Plus Technologies, and the Vivendi group
restructures under new management.
Operating profits before exceptional items and goodwill amortisation are
up 14 per cent in Q4 to E21 million and subscribers have grown by 1.5
million. As at 30 June 2002 approximately 29.6 million set-top boxes containing
NDS technology were in use worldwide, up from 24.5 million at 30 June
2001.
Major achievements for the company include selection by Bloomberg as its
interactive TV application partner; acquisition of Visionik, a leading
games and interactive applications provider; and provision of a full digital
system to Sichuan Provincial Network in China.
Dr Abe Peled, President and Chief Executive Officer commented, "NDS has
maintained its strategic and operational focus in spite of a difficult
environment for the pay-TV industry around the world. We have made good
progress on our key strategic thrusts and have delivered excellent financial
results, outpacing our competitors."
Growth
reported in difficult market
Rick Medlock, Chief Financial Officer, adds, "In the current economic
climate, these are an outstanding set of results. Impressive revenue growth
coupled with continuing vigilance over our costs has allowed us to show
excellent profit growth and strong cash generation."
The company reports strong growth in the US (which is still proving a
difficult market to overcome the Motorola/SA duopoly, despite partnerships
with Motorola - see below), UK (thanks largely to parent NesCorp's BSkyB),
Israel (its home base) and Asia Pacific (boosted by the launch of SkyLife
in Korea and initial rollout of set-top boxes in China), with less growth
in Europe attributed to uncertainties surrounding platform ownership.
Latin America has not grown.
Sichuan Provincial Network in China, launched its digital interactive
TV service on 31 May, 2002 using NDS's end-to-end solutions, including
our Open Videoguard conditional access system. In the UK MTV launched
what it describes as the first fully interactive TV show for the pop channel
"MTV Hits", an expansion of its interactive channel. In Spain, NDS helped
develop an interactive application for Music Choice on the Canal Satelite
Digital platform. And in June Bloomberg selected NDS to develop interactive
services on Bloomberg Television's financial channels throughout the world
with the first interactive broadcast expected to launch on the UK's Sky
Digital platform.
Motorola in the US is to integrate the NDS interactive and conditional
access solutions with its digital set-top boxes. These solutions include
NDS's Open VideoGuard conditional access solution, Core middleware, XTV
personal video recorder (PVR) technology and various Value@TV iTV applications.
NDS and Motorola are also in the process of developing a DVB Simulcrypt
capability with NDS's Open VideoGuard conditional access solution working
with Motorola's proprietary technology in a single system.
Revenues for the quarter ended 30 June 2002 were E103 million, NDS' highest
ever and a 20 per cent increase over the last quarter of the previous
financial year.
Conditional access revenues were E64 million for the quarter, compared
to E44 million for the same period in the previous year. The increase
is due to significant shipments of planned new generation cards for DirecTV
and strong initial demand from SkyLife in Korea.
For the full year, reported underlying operating expenses were about six
per cent higher.
Total headcount at the company as at 30 June 2002 was 1,438 compared to
1,318 as at June 2001 and, of the additional staff, 40 joined NDS through
the acquisition of Visionik. The company has reduced the percentage of
revenue spent on R&D from 30.2 per cent in FY01 to 28.5 per cent in FY02.
Diluted earnings per share for the quarter, adjusted to eliminate distortions
caused by the amortisation of goodwill and exceptional costs rose 18 per
cent from 16.5p to 19.5p, and for the full year were 74.3p up from 61.1p
last year, an increase of 22 per cent. Net free cash in the company (after
allowing for current liabilities in respect of acquisitions) was E150
million as at 30 June 2002.
Back to top
Artsworld gets lifeline
Artsworld, the UK's E9.6 per month subscription digital arts and music channel on Sky Digital, which was facing closure, is to remain on air thanks to an 11th hour rescue package put together on July 31st between its shareholders and BSkyB, its joint venture partner. The company says it has had a number of approaches from interested parties and is continuing discussions about its long-term future.
John Hambley, Chief Executive, said, "BSkyB have been a key partner in Artsworld consistently since its inception and we are grateful for their continuing and imaginative support for a channel that remains unique in digital television."
A spokesperson told advanced-television, "Its obviously a lot easier talking to other potential investors while we are on air and Sky has recognised that."
The chances of these negotiations succeeding are described as being good, "Otherwise we wouldn't have been able to put together the package to keep broadcasting. There was an outcry from our subscribers when they heard we were going to close, and we have had a very positive response to the news that we are staying on air - with some subscribers even offering donations to keep us going."
Nonetheless, there will be some further redundancies at the channel, including in the press office, in addition to the staff that left prior to the expected closure.
Back to top
FCC digital legislation
The US Federal Communications Commission is voting tomorrow (Thursday 8/8/02) whether to enact a regulation proposed in January 2001 that would require consumer electronics makers to include digital tuners in all new US TV sets by 2006 - or even as early as 2004 - to spur the creation of digital TV content.
FCC Chairman Michael Powell proposed in April that manufacturers put such tuners in the largest of new sets, 36 inches and up, by January 1 2004, half of sets 25 inches to 35 inches by January 2005 and all sets 13 inches to 24 inches by the end of 2006. The FCC is now expected to a timetable for the move similar to these recommendations.
However, the US Consumer Electronics Association says the rule would add as much as E250 to the average price of a TV set, and so opposes the move - though the figures are disputed by proponents of the move. Only some 13 to 15 per cent of Americans receive their TV signal via over-the-air broadcasts, rather than through cable or satellite providers so the move is unnecessary say critics. Broadcasters contend that 80 million televisions sets rely on over-the-air broadcasts.
Many in the Association also want cable companies to be required to carry all local digital TV broadcast signals on their systems, a move opposed by cable companies citing unfair restriction on their capacity to carry more varied programming.
Leading cable operators have agreed to carry some digital channels by 2003 as well as begin deploying integrated set-top boxes that display high-definition programming.
LG Electronics' (64010.KS) Zenith and Thomson Multimedia Inc.'s RCA are reportedly adding the tuners to new sets.
The FCC also plans to examine the recording of digital broadcasts for personal use but preventing mass Napster-like peer-to-peer distribution over the Internet - with suggestions including development of a 'broadcast flag' to prevent sharing of perfect copies.
Back to top
OpenTV in BSkyB text launch
British Sky Broadcasting is launching a digital text service to its UK digital satellite viewers this week featuring picture-in-picture viewing and automatic content updates.
It will provide viewers with access to 1,000 plus pages of updated news, sport, travel and holiday information and weather while watching television programs in quarter-screen. Further enhancements allow switching between Sky Text and TV, with faster and easier navigation and quick links to games, email, betting and other interactive services available on the platform.
BSkyB is using the latest release of OpenTV Publisher to provide the service as it enables network operators, broadcasters and content providers to quickly develop interactive television services. The product enables automatic updating of the broadcast pages by taking dynamic information from the Internet - in XML format - and streaming it into TV-centric, interactive applications.
Mickey Kalifa, general manager, UK, for OpenTV comments, "Since its inception, Sky Text digital has used the OpenTV Publisher iTV publishing solution to enable automatic, real-time content updates. The new version of the world's first digital text service leverages additional features of OpenTV's middleware - such as video resizing - to provide an even better user experience."
David Klein, Head of Sky Text added, "More than two million Sky digital viewers are already using Sky Text each week, making it the most popular digital TV text service in the UK. The 'text' key is synonymous with Sky Text and we are confident that the new service, which uses the latest release of OpenTV Publisher, will further increase usage now that viewers can watch TV and browse simultaneously."
Back to top
AtomFilms on CATV
AtomFilms, a US online streaming venture, is partnering with Global Media Holdings to introduce AtomTelevision, a 24-hour digital cable station airing AtomFilms' short films and animation.
AtomTelevision is to create on-demand programming (Atom On Demand) for digital cable provider Comcast to air this Autumn. A package of five one-hour programs will be broadcast to subscribers of Comcast in Philadelphia as part of the cablco's video-on-demand trial in that city.
Back to top
Ball
gets E4.8m incentive
Tony Ball, CEO at Rupert Murdoch's UK satellite operator, British Sky
Broadcasting, has been awarded shares worth E4.8 million on top of his
E12.8 million salary despite the company recording a E1.9 billion annual
loss and seeing its stock price fall to its lowest level in more than
three years.
BSkyB awarded Ball 558,220 shares, worth E4.8 million at the current share
price, under the company's long-term incentive plan. With this award Ball
has 'tied the not, on illness and health' with BSkyB, at least for three
more years.
Another 279,110 shares, worth E2.4 million have been awarded to Finance
Director Martin Stewart.
However, the shares will be worth nothing to Ball and Stewart unless BSkyB
achieves its financial targets over the next three years. Only if they
hit the targets will both men be able to cash the shares in. Up to 50
per cent of the shares can be cashed from July 2004 and the balance from
July 2005.
After having lost E1.9 billions last year and seen a write down of E1.6
billion on its investment in Kirch PayTV, the group's first profit is
expected in 2003 when the subscriber base reaches seven million.
A BSkyB spokesman said, "These awards over the next three years are dependent
on continued operational success. BSkyB continues to demonstrate strong
progress in the drive to attract customers, keep churn low and increase
ARPU [average spend per customer]. The remuneration of the directors reflects
that success and aligns their interests with those of shareholders."
Back to top
Murdoch
plays Big brother?
US-based News Corporation is said to be planing a 24-hour channel dedicated
to reality TV shows.
The channel will be set to run non-stop with shows such as Fox TV's Temptation
Island, in which couples are encouraged to be unfaithful to one another
to win prizes.
Reports in the US said that the satellite-delivered cable channel could
be available in the UK and other parts of the world within a couple of
years, before launching in the US in 2005.
Fox has recently adapted UK's Pop Idol for the US. American Idol has pulled
in 10 million viewers. Last year Fox broadcast Temptation Island, which
tested couples' fidelity by placing male and female partners on separate
tropical islands with attractive members of the opposite sex.
It seems that Murdoch's New Corp wants the show to go on 24/7, what ever
the social consequences might be.
Back to top
BBC
prefers firing to fines
The UK's BBC is reluctantly accepting that it should be held liable for
breaches of programme standards in the same way as other UK broadcasters.
But Gavyn Davies, Chairman of the BBC board of governors, has suggested
that staff be sacked or demoted if they are responsible for mistakes,
rather than the corporation being fined as proposed in the government
new media legislation.
The BBC has argued that fines only penalise licence fee payers, with Davis
commenting, "Firing the people is a much better remedy than fining the
public."
The biggest fine levied by the independent television commission, which
regulates commercial broadcasters, was E3 million, which ITV commented,
would "hardly make an impact" on the BBC's E3.98 billion income.
Therefore, in its response to the government's plans in its draft communications
bill, ITV suggested that any fines levied against the BBC could be imposed
on its commercial arm, BBC Worldwide, to avoid the problem of fines appearing
to penalise licence fee payers.
A Guardian report suggests that the BBC is likely to concede the imposition
of fines, to concentrate on what it sees as more important issues, such
as supporting government plans for ministers, not Ofcom, to retain responsibility
for approving new BBC channels and the corporation's public service remit.
Back to top
Soccer
bosses quit
The UK Football League's Chairman Keith Harris and chief executive David
Burns quit their posts yesterday at the League's board of directors in
London following the failed legal dispute with ITV Digital (Also see News
Archive) which cost E1.6 million in legal fees.
On August 1st it was ruled in court that ITV Digital parents Carlton and
Granada were not liable for the E284 million which it owed the League.
The First Division clubs, the main loosers in the deal, were most keen
that the two should resign, with Millwall Chairman Theo Paphitis quoted
by the BBC as saying, "A lot of the chairmen feel the way this was dealt
with, knowing full well we did not have a contract that was watertight,
was wrong. We voiced our opinion that other measures should have been
taken, which the executive failed to do."
The First Division clubs, which create the most TV revenue, are seeking
to strengthen their position while Divisions Two and Three could be combined
into a regional set-up.
During his resignation, Burns pointed out, "When I joined the League,
the ITV Digital contract - the subject of the recent High Court legal
action - was already in place, having been finalised by the previous administration."
Back to top
|
ITV
future undermined |
|
ITV future undermined
Clause 150 in the UK's draft Communications Bill would end the right of the country's key commercial channels, ITV and Channel 5, to automatic first refusal to rebid if their broadcasting rights come up for renewal according to a report in the Mail on Sunday newspaper.
The future of ITV giants Carlton and Granada, and Channel 5 has been thrown into doubt as this move undermines the security of their long-term rights to broadcast, and will severely hit long term investment plans say the companies. They are now calling on the government to revoke the clause before the Bill becomes law, potentially as early next year - though the clause itself would not come into effect until 2014.
TV regulator, the Independent Television Commission, is backing the companies saying that the clause threatens investment in infrastructure required to meet the Government's target of switching off analogue transmissions by 2010.
In addition, while the new Bill relaxes ownership rules, encouraging ITV consolidation, the clause is seen as making the companies less attractive to buyers. A written submission from ITV to the Government says the move would 'fundamentally undermine the process of consolidation within ITV'. Were Carlton and Granada to merge soon, the clause would mean that the two companies' individual licences for ITV regions might not be retained.
Gerry Murphy, Carlton's chief executive, was quoted by the Mail as saying, "Both of these businesses are of a long-term nature. You have to take investment decisions that live on for years. If this clause stands, that investment will not be made. The present system gives licence holders first refusal and provides an incentive to invest." The report also quoted a spokeswoman for Channel 5, concerned about the effect of the clause on the value of the company as saying, "This clause will have a serious impact on our business if it is allowed to stand. It is our single biggest concern in the entire Bill."
Back to top
Murdochs
sued over Gemstar
US TV programme guide company Gemstar's shareholders are suing Rupert
Murdoch, Chairman of News Corp, and his son Lachlan over the E30 billion
fall in its value in the past two years.
The Murdochs and News Corp, which owns 42 per cent of Gemstar, are accused
of having helped defraud investors by 'causing Gemstar to engage in unlawful
conduct'.
A lawsuit cited in the Mail newspaper claims Gemstar failed to issue reports
showing the falling value of the business and threats to its major asset,
patents for a system to record television programmes.
Murdoch is reported to be trying to have Gemstar Chief Henry Yuen fired.
News Corp has writen off about E4 billion of its investment in Gemstar
and is expected to write off another E1 billion when it reports results
later this month.
Back to top
UPC cuts German stake
Europe's biggest cableco, Holland based UPC, which went heavily into debt after a two year acquisition spree, has sold 22.3 per cent of its stake in UPC Germany to the Strizl family who now own 71.3 per cent of the operation.
UPC has retained a 28.7 per cent stake in UPC German.
Back to top
EchoStar VIII Launch Set
The EchoStar VIII satellite is set to launch from the Baikonur Cosmodrome in Kazakhstan on Tuesday, August 20, aboard a Proton launch vehicle following a delay from its scheduled launch date of June 22.
Back to top
Soccer ultimatum expected
Today's UK Football League board meeting could see the departure of Chief Executive David Burns, and League chairman, Keith Harris, over the handling of the ITV Digital rights case, in which their E283 million compensation case collapsed.
ITV Digital parents Carlton and Granada won their case that they were not liable because they had not included any such guarantee in their contract with the League. Burns and Harris arrived after the original ITV Digital deal was agreed. However, the League subsequently turned down a compromise E117 million two year TV rights offer from ITV Digital before going on to accept E150 million for four years from BSkyB.
First division clubs who generate 80 per cent of League TV cash, but receive a smaller percentage of media income from the League, are reported to be using the ITV Digital dispute as an opportunity to oust Burns, whose policies they disagreed with. But Burns could get the support of the lower clubs and retain his position. The two men are seeking further changes to the league in a showdown today, expected to result in a 'back me or sack me' ultimatum.
Back to top
Australia pulls STC
Independent US music channel California's Soundtrack Channel, which shows music clips from film and TV soundtracks, is fighting Foxtel in Australia's decision to drop transmission of the channel. The company has lobbied the Australian Competition and Consumer Commission and launched a consumer campaign to stay on air.
STC accuses Foxtel of refusing to show it the results of 'a fair and unbiased review' of the channel conducted during a six-month trial agreed in March, thereby breaching earlier promises.
Foxtel accused STC's executives of providing misinformation about Foxtel's reasons for pulling the channel, saying Australians just are not watching STC. STC has been told that Optus is also taking the channel off the air.
The country's regulator is currently discussing approval of a content-sharing alliance between Foxtel and Optus; Foxtel denies any inference that the Optus and Foxtel decisions are related.
Back to top
Kreiz quits FKE
Ynon Kreiz, Chairman & CEO at Fox Kids Europe N.V, will leave the company at the end of his employment agreement on November 23, 2002. In the remaining period, Kreiz will continue supporting the integration of certain FKE operations with majority shareholder The Walt Disney Company. FKE intends to announce a successor shortly.
Kreiz has managed FKE since its inception in 1997, expanding the company across Europe and the Middle East and overseeing its float on Euronext Amsterdam stock exchange in November 1999.
Back to top
Pegasus codemns SBCA
Ted Lodge, President of US satellite broadcaster Pegasus, has condemned the Satellite Broadcasting and Communications Association (SBCA)'s board decision to endorse the pending E26 billion merger with DirecTV and Hughes and says that the company will resign from the organisation effective January 2003. Pegasus will remain with the SBCA for the rest of 2002.
In a letter sent to SBCA President Andrew Wright, dated July 30, Lodge said, "The SBCA has abdicated its true charter, and is now a captive organisation." The letter, quoted in Sky Report, adds, "Your organisation now represents the interests of two organisations, DirecTV and EchoStar, which desire to become one organisation with the help of the SBCA."
In response, Wright said the SBCA will be working to convince Pegasus to reconsider its decision to leave at the end of the year, adding, "Pegasus has been a long time active supporter of the SBCA, and they have both given and received real value through their association with us." Wright added that the SBCA is a board-driven organisation and member companies set its policies.
Back to top
E2.6 billion KirchMedia bid
The highest opening bid for the core of Leo Kirch's media empire was E2.6 billion, according to the Guardian newspaper.
KirchMedia's core assets include a film library, sports rights business (such as broadcast rights to both the 2006 World Cup and Germany's football league, the Bundesliga) and a controlling stake in Germany's leading free to air TV channels - including a majority stake in the ProSieben Sat1 TV group.
Among seven consortia to have submitted offers by the July 31 deadline is a consortium of three current shareholders: Rupert Murdoch's News Corp, the Berlusconi family's Mediaset group and Lehman Brothers. German publishers Bauer and Axel Springer form another and the Commerzbank and Columbia Tristar is the third. Other bidders are thought to be Viacom, TF1 of France, and US film producer Haim Saban.
Telefonica's Dutch television production arm, Endemol Entertainment, and US television network NBC are also thought to have been seeking to form a consortium.
Hans-Joachim Ziems, a senior KirchMedia executive, suggested that the highest bid to date could be exceeded, with bankers estimating KirchMedia's key assets as being worth about E2 billion.
Creditors have claims of E8.5 billion on KirchMedia, which went bankrupt in April.
Ziems says a decision on a buyer is expected by the end of this month or the beginning of September.
Kirch Media held a creditors meeting last Friday.
Back to top
League admits fault
Following the failure of the UK Football League to win its court case against Carlton and Granada TV, parents of ITV Digitial, (See News Archive) the league has admitted that it is responsible for not ensuring that guarantees from the two ITV giants were included in the full version of ITV Digital's E500 million contract.
David Burns, chief executive of the league, - who was not in that post when the contract was negotiated - comments, "Looking back it was a mistake. We are bound by that mistake."
Justice Langley noted that the league was relying on one short sentence of a document which was still subject to contract as a guarantee by third parties of obligations involving E500 million - despite relevant negotiations having been conducted "with the benefit of the professional advice of experienced management and lawyers."
The league's lawyers failed to ensure that shareholder guarantees contained in the original bid document from ONdigital (later ITV Digital) were included in the final contract. Consequently Justice Langley concluded that neither Carlton nor Granada were liable to the Football League for any sums due under, or damages payable for breach of, the contract.
Next Tuesday a meeting of chairmen from all 72 Football League clubs will decide whether to appeal, adding to the current E1.75 million in legal fees. They will also consider making a case against their legal advisors - and although the judge's comments may strengthen the league's case, it is unlikely to get the remaining E208 million owed. The clubs already face losses of several million pounds each, with around 20 reported to be in severe financial difficulties.
The Football League has subsequently agreed a E151 million four-year replacement contract with BSkyB, a deal criticised by many chairmen as undervaluing the rights.
A lead critic, Millwall's Chairman, Theo Pathitis, said, "The league have stumbled from one disaster to another. It's archaic and amateurish and needs to get professional," adding that the League couldn't run a kebab shop.
Back to top
Liberty Casema deal scrutinised
Dutch antitrust watchdog NMa said Thursday that it will investigate Liberty's acquisition of Casema, as Liberty already has a significant presence in the Netherlands through its indirect control of United Pan-Europe Communications (UPC) (See News Archive). NMa spokeswoman Saskia Bierling said, "It's clearly no standard case," adding that there has already been contact between the NMa and Liberty to prepare the paperwork for the filing of the deal with the regulator.
The deal would bring Liberty's combined market share to more than 60 per cent, whereas a market share of more than 30 per cent has previously been considered as constituting a dominant market force. But the NMa apparently does not have a standard threshold as it depends on the market, with television and the Internet possibly being treated separately for cable.
Back to top
Wal-Mart sells satellites
US budget store Wal-Mart is to support the distribution and marketing of RCA-branded DISH Network satellite TV receivers manufactured by Thomson multimedia in 1,900 stores in the USA.
Installation of the equipment and antennas will be performed by DISH Network's national installation network, EchoStar said.
*EchoStar's DISH Network 'WOW - Free Satellite TV' fall promotion now offers a $22.99 per-month programming package of 60 channels plus free installation.
New customers will be offered a $12.50 equipment credit each month for a year when they purchase a Dish301 satellite TV system for $149 and subscribe to America's Top 50 programming package for $22.99 a month.
Back to top
FCC Merger review nears
US regulator the Federal Communications Commission is reportedly close to concluding its review of the proposed E26 billion merger between satellite broadcasters EchoStar and DirecTV.
At the New England Cable and Telecommunications Association convention in Rhode Island, Media Bureau Chief Ken Ferree said he may forward recommendations on the merger to the commissioners within four to six weeks. In addition, Sky News reports that the US Justice Department is ready to depose executives from both companies to talk about the merger.
DirecTV had earlier told the FCC that its ability to provide local TV channels as a stand-alone company is "severely limited" by capacity constraints, which would be alleviated by a merger with EchoStar. Both companies have promised to deliver local TV channels for all 210 DMAs.
Back to top
Mixed fortunes for Telewest
Last week UK number two cableco Telewest reported a net loss of E379 million for first the six months of 2002, a 42 per cent improvement on the same period last year, and suffered a net loss of 13,000 customers in the second quarter.
The company's high point was that broadband internet sales rose four per cent to E1.069 billion . Capital expenditure for the first half of the year fell E124 million, to E382 million, down from E506 million for the same period last year.
Telewest added 51,500 subscribers to its Blueyonder high-speed internet service in Q202 to total 192,000. A 1Mbp service launched in mid-June had 8,000 subscribers by the end of the month and 15,000 at the end of July.
Cable television and residential telephony customers fell following implementation of higher prices and tighter credit controls. End of June 2002 figures were put at 1.33 million CATV subscribers and 395,000 residential telephony customers, down 25,000 and 9,500 respectively on the end of March.
Telewest debts of E8.4 million and an expected debt-for-equity swap, under which bondholders will control of the company in return for most of the E5.6m they are owed, will wipe out shareholders stakes, hence the 99 per cent fall in share price to 2p.
The day before the figures were announced, Chief Executive Adam Singer was ousted, reportedly for resisting a greater role for the company's non-executive directors.
Charles Burdick, the former finance director who was immediately named as the successor, said Singer's style clashed with a desire among the non-executives to scrutinise the company more closely and to be involved in major decisions. They were concerned about corporate governance responsibilities, he said, following the recent spate of company scandals.
Burdick denied speculation that Singer had opposed the proposed financial restructuring of the company which Burdick said that he wanted to see move forward "as soon as possible" describing it as "90 per cent" probable to happen. He added, "A debt for equity swap looks most likely. The capital markets are closed to us. NTL and WorldCom have shown that network companies need access to cash."
Telewest may also dispose of its 17 per cent stake in Virgin Radio owner SMG, valued at E87 million.
Burdick aslo said Telewest would spend less seeking new customers and concentrate on raising revenue from existing subscribers, particularly encouraging broadband internet services.
Back to top
New Skies and Kingston deal
Kingston inmedia and New Skies Satellites in the UK have signed an agreement to co-operate closely in offering a highly competitive range of communications services using New Skies' global satellite network and Kingston inmedia's integrated media facility at Gerrards Cross northwest London.
The two companies say the agreement will increase the range of satellite communications services offered to customers throughout Europe, the Americas, India, the Middle East and Africa. These additional facilities include:
New Skies and its customers getting access to Kingston inmedia's digital media facility, which includes satellite earth stations, a secure data centre for colocating equipment, three fully equipped broadcast studios, and advanced digital playout suites. Kingston inmedia and its customers will recieve access to New Skies' global satellite network, which consists of six geosynchronous spacecraft and offers global connectivity.
Kingston inmedia will add telemetry, tracking and control (TT&C) and carrier services monitoring (CSM) for New Skies' newly-launched NSS-7 satellite to those services already being performed for the NSS-703 and 806 satellites.
New Skies' communications hardware will be consolidated at a single, secure location within Kingston inmedia's facility, along with colocation space for customer equipment.
"This agreement is a logical step in our long-standing business relationship," said Nick Thompson, Managing Director of Kingston inmedia. "We are very excited to be able to offer our customers added value through a formidable range of multimedia satellite services."
Dan Goldberg, New Skies' Chief Executive officer, adds, "We have chosen to partner with Kingston inmedia because of the excellent reputation they have built up over their many years of operation. Drawing on the core strengths of each company and further integrating the services and technical expertise of each will bring economies of scale that will allow New Skies Satellites and Kingston inmedia to offer highly competitive satellite communications services."
Kingston inmedia and New Skies jointly serve approximately 50 video and IP customers. Occasional-use and full-time video customers include using the New Skies satellite system for customers including The Racing Network International (TRNI) and SSVC. Customers for New Skies' internet backbone connectivity service, Ipsys, inlcude ISPs such as Satyam, Gulfsat, Data Access, Primus, Logitech, Siti Cable, BSES, Cybernet, Comet-Simbanet and Ethiopia Telecom. Additional growth in the range and volume of both video and internet services is expected to result from the deal.
Back to top
New DT sales round
Deutsche Telekom AG has opened the next round of bidding for the six remaining regional cable systems reaching over 10 million connected homes. The former state monopolist announced this week is has approved five investor groups with which it intends to have further negotiations, due for completion by the end of September (Also see news archive).
Contradicting a previous statement in which DT's deputy CEO Gerd Tenzer said the company would rather not sell more than probably two assets to one investor, the company now states that following the first round of talks it appears possible that the entire asset could go to one bidder.
DT thought it had already sold this entire asset to Liberty Media at the end of last year but had to start the sales process anew after German anti-trust officials blocked the deal in February.
Back to top
For the very latest news go to Home Page ............