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NEWS Wednesday 5 to Friday 7th June 2002
Scroll down page or click below for news - latest first
DUE TO A PUBLIC HOLIDAY IN THE UK ON JUNE 3, 4, OUR NEWS POSTING THIS WEEK IS FROM WEDNESDAY JUNE 5 WITH NO NEWS POSTED JUNE 3, 4.
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Norwegian
TV licence up for grabs |
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Norwegian TV licence up for grabs
A licence for local television in Norway was advertised as open for tender yesterday (Thursday 6/6/02).
Despite an ongoing newspaper strike, the Norwegian State Media Administration (Statens Medieforvaltning) is currently looking for a new operator of the licence abandoned last January by the Metropol consortium. Metropol comprises Norway's leading telecom-cum-media group Telenor, Italian investor MB Venture and some influential Norwegian investors.
Metropol was launched in the autumn of 1999 from the ruins of a collapsed news service for greater Oslo, initially with just a regional terrestrial service. But gradually the management of Metropol managed to add one area after another from Norway's major urban areas, using a combination of local terrestrial transmitters, cable and DTH distribution. What were once called 'yuppies' soon became the prime target group for the station.
Despite a good response from the target groups Metropol soon had to start fighting for its survival, and early this year the fight finally was over.
Since then there has been much speculation in the Norwegian media press the possible rebirth of the Metropol concept. Weeks after the closure it became a public knowledge that three 'major media parties' were courting the former owners of the station, one of them being Viasom's MTV. But nothing emerged as a result of those rumours.
Now the Norwegian authorities appear to have decided to take the issue of Metropol relaunch into their own hands. And suddenly everything is in a great hurry: interested tenderers have until July 7 to send in their applications - just before the Norwegian summer holiday season begins.
"Those who might consider applying must have already spent some time mulling over their respective concepts and ideas about how to run the station. Primarily it is the original Oslo regional licence that we did not put out for tender," Dag Loevdal of Statens Medieforvaltning comments.
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NDS
acquires Visionik
News Corporation's digital TV technology subsidiary, NDS Group plc, has
acquired the majority interest in and obtained control of Danish interactive
TV application software company, Visionik A/S (formerly Visionik Interactive
TV A/S). The deal came into effect from the 1st of June.
Over the last six years Visionik developed its digital interactive broadcast
services and headend software, working across satellite, terrestrial and
cable platforms. Visionik's interactive TV technology and TV entertainment
services include enhanced games and set-top box applications - currently
running on more than 14 networks internationally. The company also provides
interactive advertising, EPGs, messaging services, quiz shows as well
as news, information, weather and transactional services.
Amongst its Interactive TV clients are Sky Active, Music Choice, Directv
Latin America, Austar, Chorus, TDC Kabel TV, Casema, Mediakabel, com hem
and PrimaCom.
"The games market is one of the most exciting growth areas in interactive
TV," said Dr Abe Peled, President and CEO, NDS Group plc. "By acquiring
this controlling interest in Visionik, we gain a sophisticated, scalable
and proven games technology, an impressive customer list and a team with
strong expertise and understanding of the interactive TV market. This
allows us quickly to establish a presence in the games sector and complements
our existing interactive offerings, including interactive sports, music,
news, quizzes and betting applications. Together we can offer customers
an enhanced range of solutions to grow their revenues per subscriber."
With this
aquisition NDS wants to increase its reach and improve its technology,
in particular in the gambling and gaming arena.
Jesper Knutsson,
CEO of Visionik said, "This is a perfect fit for both companies. NDS and
Visionik used to compete head to head on prospective interactive TV technologies
and key services for operators and broadcasters. By combining the expertise
and know-how of the two companies we believe that we can add unique value
to our customers and stay at the leading edge of the development of digital
TV services ahead of all our competitors."
The takeover echoes a similar deal made by set top middleware company
Open TV when it moved into the games and content arena with the acquisition
of Static a year a go. In a conference call Peled explained that the $69
million price tag had been too much for NDS to pay - especially as the
company had similar technology to NDS - but that the Visionik deal provided
a more economic and complementary package.
The company
hasn't disclosed how much it paid for Visionik, but it said that it has
been bought with cash and no shares will be allocated. NDS is expecting
Visionik to account for 20 per cent of total revenue at NDS, and is forecast
to take seven years to break-even.
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MHP
& DVB in Brazil
New DVB compliant interactive digital television applications based on
MHP (Multimedia Home Platform) technologies will be demonstrated at a
series of forthcoming events in Brazil.
The demonstrations will range from MHP applications to next generation
set-top boxes capable of running MHP, and a preview of the future for
interactive television will be on show. There will be key demonstrations
from prominent DVB members IRT, Nokia, Philips and Rohde & Schwarz.
The DVB (Digital Video Broadcasting Project) is an industry-led consortium
of over 300 broadcasters, manufacturers, network operators, software developers,
regulatory bodies and others in over 35 countries committed to designing
global standards for the delivery of digital television and data services.
Once standards have been published, through ETSI, they are available at
a nominal cost for anyone, world-wide. The DVB group promotes open standards
saying that they free manufacturers to implement innovative and value-added
services.
During the Brazilian tour Philips will show MHP set-top boxes and interactive
applications, Nokia will display its next generation set-top boxes and
there will be a presentation and demonstration by Emmy award winner, Gerhard
Stoll from the Institut fur Rundfunktechnik (IRT) in Germany. Stoll will
also introduce innovators and their work from the European Commission
supported research & development Information Society Technologies (IST)
programme, which is addressing media convergence and MHP.
Peter MacAvock, Executive Director of the DVB Project Office said, "DVB
is delighted to bring such important demonstrations to Brazil, particularly
at a time when Brazilian minds are concentrated on the World Cup in Korea
and Japan. Interactive digital television, already available to millions
of viewers in the many countries around the world that have adopted DVB
standards, provides innovative and stimulating ways of enjoying major
events such as the World Cup, and establishes new sources of revenue for
the broadcasting community. DVB is the leading digital television standards
organisation, and MHP is rapidly becoming the worldwide standard for interactive
television. MHP, which is only available with DVB, is an open platform
for all broadcasters, operators and software developers."
Paulo Lopes, responsible for co-operation with Brazil and Latin America
for Information Society issues in the European Commission, said, "The
European Union is aware that digital terrestrial television gives an unique
opportunity to Brazil and Latin American countries to provide widespread
access to the Information Society. This new technology has the potential
to provide Brazilian citizens with open access to public interest services,
such as administration, education and health, thus contributing to the
social and economic development of Brazil. We are also aware that there
are great opportunities for co-operation between Brazil and the EU in
this field. That is why the European Commission is supporting these DVB
demonstrations, aimed at showing the potential of interactive digital
television to a wide audience in Brazil."
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Pace
in Finish IPTV launch
Elisa Communications, Finland's largest telecommunications operator, is
to roll out the country's first broadband interactive TV service - which
will include multichannel TV and Internet access - using DSL technology.
Content will be provided by Maxisat, Finland's leading digital broadband
TV services company, and the UK's Pace Microtechnology is to supply its
DSL4000 home gateway (set-top box) for the service.
Elisa's network covers the Helsinki Metropolitan Area and several other
bigger cities in Finland, covering a quarter of Finland's population.
The service will deliver its service using copper and fibre telephone
lines, offering an alternative to cable and satellite platforms.
Subscribers will initially receive 12 Finnish channels (delivered using
MPEG 2 over IP) and Internet access, either via their TV sets or via PCs.
Future plans include more channels plus PVR functionality, video-on-demand
(VOD) and games.
The DSL4000 is Pace's fourth generation IPTV home gateway and the company
says that the latest version enables telecom service providers and IP
broadband network operators to deliver highly interactive services in
cost effective volume deployments.
Pace has tailored its product with Maxisat especially for the Finnish
market. The DSL4000's multiple language support functionality will enable
delivery of subtitles and teletext in Finnish, Swedish and English.
Andrew Clifforth, Managing Director of Pace's IPTV Division commented,
"This is an important step for Pace, increasing its penetration of the
Scandinavian market. There are over 10 million TV households, high wealth
but only 16 per cent Digital TV penetration. This region has so far been
under-served by the digital TV operators and is currently dominated by
satellite. There is a great future for TV over IP as the national telephony
infrastructure is highly developed.
"In the Finnish market alone several telecommunications players are reviewing
their strategy for IP deployment. Elisa Communications and Maxisat are
the first partnership in Finland to realise the potential of TV over IP,
others will follow. We are delighted to have been selected as the CPE
provider in this rollout and will continue to work closely with both companies
to provide innovative IP solutions as the service expands."
Timo Simula, head of new generation services, Elisa Communications added,
"This is a very exciting rollout for Elisa. We are using Pace's DSL4000
as it represents the most solid, standards-based, highly featured home
gateway
available today."
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Irdeto
in Chinese box win
Conditional access provider Irdeto Access, a subsidiary of MIH Limited,
has signed a licence agreement with China's Beida Jade Bird Huaguang Sci-Tech
Co, Ltd, a holding corporation of Beida Jade Bird Group, to integrate
Irdeto Access' Conditional Access into their cable set top boxes. The
set top boxes (STB) will be offered to the Chinese market by mid June.
Jade Bird Huaguang will integrate Irdeto Access' Conditional Access technology
into its cable STB with OpenTV EN2 middleware. These cable STBs enable
operators to provide their subscribers new value-added services through
interactive digital television.
The deal with Beida Jade Bird Group, which was originally active in developing
computer software, is particularly significant as the company is one of
the four backbone industries of Beijing University. In 1999, Beida Jade
Bird moved into the broadcast TV Industry and currently has shares in
11 provincial CATV Network Corporations throughout the country. Jade Bird
Huaguang is a listed company on the Shanghai Stock Exchange and its primary
services focus on investing in building and the operation of CATV networks;
and on development and production of broadcast TV products. These products
include digital TV Telecast Systems, Broadband Internet communication
equipment and STBs.
Irdeto Access has been active in licensing local STB manufacturers since
entering the Chinese market in 1998.
Irdeto Access currently has conditional access integration agreements
with 18 different local STB partners.
"The localisation progress of Irdeto Access keeps equal pace with the
development of the digital TV industry in China. Jade Bird Huaguang can
play a role in connecting these developments. The co-operation between
Irdeto Access and Jade Bird Huaguang will add value and new business prospects
to both companies." stated Zhang Honggang, president of Beida Jade Bird.
"Irdeto Access is pleased to license Beida Jade Bird as one of its STB
partners. At Irdeto Access we understand that STBs are of critical importance
to the success of Chinese pay-TV operations and that they are one of the
most valuable assets of the total digital pay-TV system. Yet China is
a market that demands not only high quality, but also a keen price. Irdeto
Access is committed to working with Chinese STB design houses and manufacturers
to provide operators a wide selection of Chinese STBs at an attractive
price and of reliable quality." says Graham Kill, CEO of Irdeto Access.
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Adelphia
sale expected
Off-balance sheet financing deals and a subsequent share crash have forced
the US's Adelphia Communications Corp founders to resign and the company
to put assets up for sale in a bid to avoid bankruptcy court. It is believed
to be negotiating to sell its Los Angeles cable systems to Microsoft Co-Founder,
Paul G Allen, either on his own account or through Charter Communications,
according to SkyReport, citing 'various industry sources'.
The E4.26 billion deal for 1.2 million subscribers gives a 'per subscriber'
cost of E3,500 for the network. Cox Cable, the Blackstone Group and Apollo
Advisers, are also seen as potential buyers.
Earlier this week Adelphia shares fell 28 per cent in a day to $2 (E2.2)
per share.
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Kingston
inmedia appointment
UK-based broadband solutions provider Kingston inmedia, part of Kingston
Communications, has appointed Paul Cook as its new Sales Director.
Paul Cook joins Kingston inmedia from Gilat Europe, where he was Sales
Director for the past three years, responsible for building the company's
UK presence across both Enterprise and Wholesale markets. Cook previously
worked for GE Capital group and IBM.
"We are delighted to have attracted a senior sales professional like Paul
to join us at an exciting time in our market development. Paul is a highly
experienced and successful international sales and business development
manager and he brings an excellent track record across satellite, telecommunications
and IT industries. His broad perspective matches the breadth of our solutions
offering to the broadcast, enterprise and telecoms markets and he brings
the vision that will help us to further grow our business across these
areas," said Nick Thompson, Managing Director,
Kingston inmedia.
"I believe my experience will enable me to drive the continued and sustained
growth of Kingston inmedia's unique value proposition and expand its business
into new markets with innovative end-to-end products and services," commented
Cook.
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NBC
closes its upfront sales
US major broadcaster NBC has signalled an upturn in the TV advetising
market, having finished its primetime upfront selling for the 2002-2003
TV Season with a record E2.86 billion for 83 per cent of its commercial
inventory. Cost-per-thousand increases are reported to average seven to
nine per cent.
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2-way
broadband sat launched |
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2-way broadband sat launched
Luxemburg-based SES Global and Israel's Gilat Satellite Networks Ltd are forming a new company, Satlynx, to provide two-way satellite broadband communications services to enterprises, consumers and small office/home offices (SOHO) throughout Europe. Following definitive agreements and regulatory approval, Alcatel Space and SkyBridge, subsidiaries of Alcatel will join Satlynx as a 20 per cent shareholder.
Satlynx is already fully operational and has incorporated Gilat's existing European operations and enterprise customer base. Satlynx also services the wholesale contracts with BT Openworld and with Tiscali for the provision of broadband satellite connectivity to SOHO and consumer subscribers in Europe. Consumer broadband services are offered via Gilat's 360 platform. Corporate customers will use Gilat's Skystar Advantage VSAT platform, as well as SES Global's high speed BBI technology, which is based on the DVB-RCS standard.
Founding shareholders SES Global and Gilat have appointed a six member Board of Directors for Satlynx. The three board members from SES Global are: Romain Bausch, President and CEO of SES Global; Robert Bednarek, Executive Vice President, Corporate Development of SES Global; and Ferdinand Kayser, President and CEO of SES Astra. The three Board members from Gilat are: Yoel Gat, Chairman and CEO of Gilat Satellite Networks; Amiram Levinberg, President and COO of Gilat Satellite Networks; and Joshua Levinberg, Senior Vice President Business Development of Gilat Satellite Networks. Joshua Levinberg will serve as the Chairman of Satlynx.
Alcatel Space and Skybridge will appoint two additional members upon closing of definitive agreements and regulatory approval. Satlynx will be managed by an Executive Committee consisting of:
Yves Elsen, President and Chief Executive Officer
Niki Bassat, COO
Ami Samuels, CFO and SVP Corporate Development
Joshua Levinberg, Chairman of the Board of Satlynx, said, "Each person has more than a decade of experience in his respective fields. Together with the existing, highly experienced management, they form a very well rounded team, with vast experience and capabilities. I have no doubt that the infrastructure provided by the founding partners, combined with the strength of the enhanced management team, will serve as a powerful foundation for propelling Satlynx to become Europe's premier provider of broadband services via satellite."
Yves Elsen, President and CEO of Satlynx, commented, "Multimedia and two-way -broadband access will be emerging as priorities for the future evolution of the satellite communications business. By combining leading technology, expertise and marketing know-how - along with existing European operations and a substantial customer base in b2b and b2c - the new company is well positioned to become Europe's leading provider of two-way satellite broadband services."
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BBC to keep licence fee
Despite heavy criticism from the UK parliamentary opposition, UK pubcaster the BBC looks set to continue receiving funding via the TV licence fee for at least 15 years. The licence fee currently raises E3.57 billion a year.
In an interview with the FT Culture Secretary Tessa Jowell prempted any decision regarding the £109 (E170) annual licence fee in the official review of the BBC's future in 2004, two years before the Corporation's Royal Charter expires, by saying that any change to the system was "somewhere between the improbable and the impossible."
Officially the Government is supposed to be committed to looking at other forms of financing, ranging from charging subscriptions to outright privatisation.
Shadow Culture Secretary Tim Yeo attacked the announcement saying, "In the 10 years since the last charter renewal, the whole television and broadcasting sector has changed radically. To simply dismiss the alternative possibilities not only shows a closed mind but may also work against the interests of viewers and broadcasters."
It appears that if the current government remains in power, it will seek to renew the BBC's charter for a further ten years without significant change.
Jowell confirmed that the government would run a major advertising campaign to push digital television.
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BSkyB numbers up
BSkyB reported last week that it had signed up 171,000 new UK subscribers in the first three months of the year to reach a total of around six million subscribers. The company is also on course to reach its target average revenue per user (ARPU) of E620 having reached E534 in Q1, an increase of 11 per cent from the same quarter last year.
The failure of ITV Digital, the UK digital terrestrial platform, is believed to have been at least partially repsonsible for the growth at BSkyB.
Pilar Manzanaro, a media equity analyst at Banque Paribas, has been reported in the trade press as saying, "BSkyB just hit the 5.9 million subscriber mark and management reaffirmed their target of seven million subscribers by December 2003. They have lost the wholesale subscribers from ITV Digital, but we expect BSkyB to get a good share of ITV Digital's 1.2million subscribers."
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Internet TV opposed
In the US a coalition movie studios, TV broadcast networks and electronics manufacturers - the Broadcast Protection Discussion Group (BPDG), has formed to combat illegal digital TV programme distribution on the Internet.
The BPDG opposes digitised content being swapped freely online, bringing it into conflict with consumers groups promoting 'fair use' of content.
The BPDG proposes that all digital TV set manufacturers include a demodulator to distinguish between analogue and digital TV signals. Digital broadcasts would have a watermark, called a "broadcast flag," embedded into their transmissions. Once the signal reaches the set, the demodulator would encrypt it, allowing the content to be recorded onto other home entertainment components such as a TiVo, set-top boxes, DVD recorders and home-networking systems.
As a result such digital recordings would not be able to be distributed over the Internet on a file-sharing service or as clips of digital TV programs.
"To limit the consumer's ability to redistribute content outside of the home, we thought it was necessary to get a mandate from government," Andrew Setos, President of Engineering at News Corp's Fox Group and BPDG co-chair, was reported as saying.
US consumer electronics companies could be compelled by legislation to implement technologies to encrypt the digital transmission when it hits the TV set.
The next step is expected to include seeking support from the US Congress and the regulator, the FCC.
"Digital TV standards are a matter of public policy; airwaves are public resource. It is a public policy matter by which the process that these proposals were made was behind closed doors," Joe Kraus, co-founder of Excite.com and head of public advocacy group DigitalConsumer.org is reported as saying.
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Soccer rights devolved
The European Union antitrust authorities have sanctioned EU soccer clubs the sell of live rights to some of their Champion's League games.
Previoulsy the European soccer's governing body, Uefa, sold rights to one broadcaster in each country for four years - a policy now ruled as anti-competitive. The E520 million market has a new structure starting in the 2003-2004 season whereby the top four of 16 weekly matches will be sold to two broadcasters in each country. Other broadcasters will be able to bid for the other matches in two separate blocks. Matches not sold by Uefa can then be sold individually by the clubs. The clubs will also cooperate with Uefa on the sale of Internet, radio and 3G phone rights.
It is intended that the new system should gnenerate at least as much revenue as now, while also enabling them to develop some rights themselves.
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ITV merger critics
The oft mooted merger of UK ITV terrestrials Granada and Carlton is being opposed by major advertising industry player Proctor and Gamble saying that the new entity would have too much control over airtime charges if they combined. The two account for 55 per cent of TV advertising in the UK.
The advertiser's organisation, the ISBA's Bob Wootton is reported in the FT as raising concerns about ITV consolidation. He commented that a Carlton/Granada merger would give one company, "Ümore than half of UK commercial airtme. We would absolutely oppose any consolidationthat led to a single ITV airtime sales operation."
Supporters of the merger say that the two companies could keep their advertising teams separate after a merger - but as their combination would achieve some E77 million savings, it is thought unlikely this would happen, or if it did, that it would not be sustained.
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Telewest
bondholders seek restructure
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Telewest bondholders seek restructure
Eyeing financial restructures at fellow cablecos UPC and NTL, bondholder representatives at UK number two cableco Telewest are now calling on the company to restructure its E9 billion debt.
A committee has been set up that claims to represent holders of around 50 per cent of the £4 billion (E6.2 billion) of bonds issued by the cable company, and it is understood to have written to Telewest Chief Executive Adam Singer to request a meeting to discuss the issue.
But the company is reported to be seeking clarification that the insolvency lawyers who sent the request - Cadwalader Wickersham & Taft with advice from the investment bank UBS Warburg - do indeed represent 50 per cent of bondholders.
The company's shares could be diluted or even wiped out by a restructure, as happended at NTL. Telewest's interest charges of £400 million (E620 million) are reported to be 13 times its earnings (EBITDA) which was £91million (E140 million) in the first quarter. The company also has £700 million (E1,087 million) credit available - if it meets its targets.
Telwest is undergoing cost cutting, with 1,500 redundancies made earlier this year and the company "exploring options to address its funding requirements", including cutting channels (see end of story).
Assets such as Flextech, its TV content arm, could be sold - as could its satellite broadcast operation - and its transmission tower business. Liberty Media, which has a 25 per cent stake in Telewest, could mount a takeover bid - or far less likely given recent TV set backs, so too could 22 per cent shareholde Microsoft.
Telewest's share price is currently 5p, compared to a high of 563p during the technology boom. It is now valued at £143 million (E222 million).
*The History Channel was removed from Telewest's cable TV networks at the end of last week after a last-minute attempt to agree distribution terms failed. The loss of the Telewest deal cuts the History Channel's seven million subscriber base by about 500,000 - some eight per cent of its audience.
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SVT
launches kids service
The new duo leading Sveriges Television (SVT), Director General Christina
Jutterstroem, and her Director of Programming, Leif Jakobsson, have given
the green-light for the launch of another digital channel. The platform's
twenty-four hour news service, SVT24, was launched simultaneously with
the inauguration of the Swedish national DTT project in April of 1999.
Then came the newly opened SVT Extra - a very 'general store' channel
whose content of which covers everything from extended sports and music
events, instant 'follow-ups' etc. Now Jutterstroem and Jakobsson have
now decided to give the Swedish children and their parents an extra Christmas
present, a children's and youth service:
"SVT has a very important role when it comes to shaping the future of
the new digital television landscape," Jutterstroem comments. "We see
our mission as a double one: not only to offer channels for a very broad
audience, as we have done in the past, but also to present more exclusive
theme channels, focussing on more limited audience groups. In addition
we are also aiming at a vanguard position on the Internet; our address,
www.svt.se, is already one of the leading Swedish sites, and we are certainly
going to work on making this strong position even stronger."
The new children's and youth service has been given priority over other
projects including a documentary and an arts & culture service, with the
intention to present a "distinct alternative to the national and international
commercial channels." The new, still unnamed service is to have a high
level of interactivity, ie giving many children throughout Sweden a chance
actively participate in future programming. A mobile OB unit will tour
Sweden on a regular basis.
SVTs plans may also be coordinated with the joint Nordic plans by all
the area's public service broadcasters to join forces in the area of children's
programming under the Nordmagi project (as earlier reported in Advanced
Television).
In addition, SVT24 will soon become a daily operation: so far the service
has only been transmitting Monday through Friday. Sports will become a
major attraction, particularly over the weekends.
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Thomson
to buy Grundig decoders
Thomson Multimedia is to acquire Digital Intermedia Systems, Grundig's
decoder production facility based in Cardiff, along with its product and
software development software units. DIS has a strong position in the
UK market since it is one of the suppliers for Sky Digital.
The cost of the transaction was not disclosed. The deal will also result
in TMM supplying decoders into the established Grundig consumer distribution
network.
TMM's President Thierry Breton was known to be interested in making further
acquisitions following that of US company Vidfilm. Grundig is currently
in financial difficulties and needs to find a financial partner in the
coming weeks.
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E5.7bn
profit for NTL?
UK cableco NTL could report a net profit of E5.7 billion this year, despite
filing for bankruptcy protection last month, reports Bloomberg.com, citing
US regulatory filing.
Net profits follow a gain of E6.8 billion as a result of discharging debt.
In contrast NTL recorded a loss of E13.6 billion last year.
"Given the aggressive nature of the projections, we view the likelihood
that they must be revised lower as high, "Kurt Klimenko, an analyst for
Barclays Capital was reported as saying.
Last month when a group of major NTL creditors agreed to swap E11.63 billion
of its E18.63 billion debt for a controlling stake in the company. Its
subsequent bankruptcy filing is designed to protect the company from its
remaining creditors while it restructures.
Negotiations over NTL's restructuring after filing for Chapter 11 bankruptcy
protection in the US, is expected to have finished by the third quarter.
Judges in the bankruptcy courts will hear evidence in July. NTL is proposing
that the court allows the company to split into two operations, the UK
cable assets and the continental European assets, while bondholders owed
E11.3 billion swaped their debt in return for control of the businesses.
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UPC
postpones interest
Europe's biggest, and most indebted cableco, UPC has been allowed by its
bank lenders and majority shareholder UnitedGlobalCom (UGC) to postpone
interest payments of E113 million in senior notes until June 17.
The move follows progress in negotiations on UPC's proposed recapitalisation.
The financially troubled cable operator is aiming for a E7.5 billion debt-equity
swap with debt holders.
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eTV
to close down
Swedish eTV, 'the world's first digital television e-commerce service'
according to the station itself, is to close down, effective immediately,
atttributed to its 'high distribution costs and a lack of investors.'
eTV was awarded a licence within the Swedish DTT project in November 1998,
but it took until February 2000 until the service became properly operational,
then mainly offering CD shopping and weather services. Since then eTV
has expanded its services into travel tickets (in cooperation with SAS
airlines), theatre and concert tickets, books, games, VHS and DVD films
etc.
After the Swedish DTT launch eTV has also secured distribution on pan-Nordic
Canal Digital's DTH platform (which has almost half a million subscribing
households), and also on Danish TDC's digital cable networks and on Sweden's
Bredbandsbolaget (the Broadband Company). In all eTV has recently been
reaching some two million Scandinavian households.
But obviously this has not been enough: in its press releases eTV has
enthusiastically claimed a potential of 1.5 million Nordic viewers, but
building castles in the sand is one thing, reality another.
"It has been a rather long process for us to reach this decision," Bo
Blaaeldh, MD of eTV Solutions comments. Blaaeldh is a veteran in Swedish
media, with an earlier background at FilmNet, then taken over by CanalPlus.
"But the present negative economic situation in Scandinavia has created
problems in attracting necessary risk capital, which combined with too
high distribution costs have forced us to make the decision to close the
service down."
But the brand eTV will not die altogether. The group will continue to
develop interactive TV services, but now focusing on the general business
market instead of television.
A staff of some ten people will be directly affected.
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Asian
pay TV at critical mass
The Cable & Satellite Broadcasting Association of Asia (CASBAA) believes
that the viewer numbers for cable and satellite TV has reached a "critical
mass" and that it is having an impact on the numbers tuning into the terrestrial
sector.
"After a decade of growth from an almost standing start to today's 150
million Asian pay-TV subscribers, we have now reached a large enough viewing
share to make pay TV a mandatory advertising buy," claimed Robert Wilson,
CASBAA's media and research director.
In Hong Kong, Wilson said that subscription TV penetration rates had reached
30 per cent, with estimates suggesting that will reach 50 per cent in
three years. He added that by 2010 pay TV in Asia will reach 280 million
compared to the 150 million the association calculates it currently covers.
With that increase in penetration came a rise in the amount of time cable
homes spend watching non-terrestrial channels.
Research by ACNielsen in Hong Kong and Australia showed that cable and
satellite TV subscribers were now spending half their viewing time tuned
into non-terrestrial channels.
"Advertisers and their agencies cannot ignore the new realities that the
pay-TV audience is more affluent, younger and better educated than those
who generally view the terrestrial channels; these are the new facts of
life. This is a business on the upswing when other businesses are suffering,"
Wilson added.
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