NEWS Monday 8th April-Monday 15th April2002

(There has been a change in the structure of advanced-television.com's archive. Instead of weekend news, we label the last news update on Friday as Monday news, and provide an update on Monday morning)

Scroll down page or click below for news - latest first

TV5 coming to Sky Digital
By Sotires Eleftheriou

After almost a year of negotiations (described as 'rather tough' according to the person we spoke to) French language channel TV5 is now coming to Sky Digital. The signal is currently under test on 11.856 MHz, V, 27.5, 2/3 but cannot currently be stored by Digiboxes, and should join the Sky EPG within a week or so, as part of the Familly Package. News that it is coming to Sky Digital is reported to be inciting some UK cable operators to also carry the channel.

Under the terms of the deal with Sky, Sky will bear the costs of transporting the signal and TV5 will undertake a number of marketing operations which will promote the package.

TV5 is a French language channel for an international audience - including French speakers world wide, expats, Francophiles, and French language teachers. It draws its programmes from the French language public sector broadcasters of France, Belgium, Switzerland, and Quebec, and is available world wide via 41 different satellites and 6,000 cable networks, in seven different programme streams, as well as a web site, referred to as a 'eighth stream'. Estimated reach is 120 million homes world-wide. 32,000 teachers use the 'TV5 method'. Subtitling is available in eight languages.

TV5's annual budget is E80 million, 79 per cent of which comes from the French Ministry of Foreign Affairs. The remainder comes from the other contributing countries and a small amount from advertising.

Some 40 per cent of its budget goes to 'technical costs' which include most of the satellite transponders and the video facilities to produce all the different programme streams. The programme budget is E33 million and E2.2. million is devoted to its ambitious subtitling programme. E12 million is allocated to marketing.

TV5 has been on the New York cable network for the last two weeks, scheduled for official launch in the next few days. Six months ago it took capacity on a second satellite (Echostar) to reach the West Coast, which increased the number of its US subscribers by 26 per cent in six months. Negotiations are near completion with the cable networks of 10 major US cities, including Seattle, Washington and Boston.

Other recent carriage agreements include China, where it is the first European channel to gain carriage on the new SARFT digital platform, as well as cable operators in Korea and India.
Back to top

Sweden's TV4 in iTV launch
By Goran Sellgren

TV4, Sweden's leading private TV station, is launching a new service next week. And it is not to be the expected new news service in partnership with Ted Turner's CNN, but a brand new creation: a digital interactive service, called Mediteve, with a youthful focus on live SMS chat and games. However, the budget will be minimal. In the initial stage Mediteve will have to live on an annual budget of SEK 5 million (E550,000)

The main reason for the kick-start of TV4's Mediteve is that only last week it was announced that TV4 would be allowed to take over the frequency in the Swedish DTT network which was recently vacated by digital e-learning and documentary service K-World. After over two years of fighting for financial backing and wider distribution K-World finally gave up and ceased broadcasting on March 31.

TV4 applied for and was given two new DTT licenses in 2000 in addition to its earlier two - one national licence and one for TV4's 16 regional services. At that time, the management of the station rapidly announced plans to use the licence for two new DTT services, one sports and games channel, and one news service in alliance with CNN.

Following the September 11 disaster, TV4 used its regional DTT licence to test the CNN concept, simply relaying the CNN signals. The plan is that it should increasingly add in more and more domestic news. It is believed that TV4 will soon get access to its two new 'official' DTT frequencies, intended for news and sports and games.

Meditv expects to lean heavily on the combination of television, computers and telephony. Also the SMS phenomenon has swept like a wildfire over Sweden's young population. Worldwide some 16 billion SMS messages are sent each month.

"All over the world a new global culture phenomenon, participation, has emerged", says Christopher Sandberg who developed the concept of Mediteve for TV4. "Now we can enjoy the most exciting meetings between individuals, with help from computers and telephony. We now want to add some television to that mixture."

"Mediteve is meant to be unpredictable. It is our audience which is in command, and the editorial staff will conform to the choices of the audience. But no one will be safe; suddenly there will be surprises among the chat. Presto, and you will chat with people you never dreamt of meeting, and it will be on TV," says Mats Beckman who developed TV4's highly successful web site www.tv4.se .

Mediteve will be developed together with Stockholm-based independent producer Namni. Distribution deals are already secured, apart from the fledgling DTT network, with Com.hem, the Telia-controlled market leader among Swedish cable operators, and Canal Digital, claiming the position as the biggest DTH digital operator in the Nordic territories.

"I hope that before summer most Swedes will be able to watch our new service", Beckman predicts.

"My hopes are that our new partnership with Com.hem will lead to a number of new joint ventures with both Com.hem and its mother, Telia", Jan Scherman, the new MD of TV4 adds.
Back to top

Via Digital buys Kirch 2006 soccer rights

Spanish pay-TV company Via Digital, controlled by the country's telco Telefonica, has bought the Spanish rights to televise 2006 World Cup matches from German media group Kirch.

Kirch, which put its core KirchMedia unit into insolvency on Monday (8/4/02).

Market estimates of the sum paid have ranged from E78 million to E100 million, but no figure been disclosed by Via Digital. However the company said it was, "in line with the conditions achieved by other European television companies recently."

Via Digital previously bought exclusive rights to broadcast 2002 World Cup matches in Spain from Kirch.

* Luis Abril President of Admira, formerly known as Telefonica Media, has been appointed president of subsidiary Via Digital.

Admira posted E347.3 million in losses in 2001, with Via Digital reporting losses of E162.6 million, a 31.7 per cent increase from the previous year's E123.4 million loss.
Back to top

Kirch loans under 'review'

German banking regulators have launched a special review - 'not yet an investigation' - of loans made to the E6.5 billion ($5.7 billion) indebted Kirch media group, whose core firm declared itself bankrupt earlier this week, to see whether banks set aside enough money to cover the loss if they weren't repaid.

"About three weeks ago we asked a third party to carry out a special audit of the larger Kirch banks," Uwe Traber, head of the major banks department at the Bundesaufsichtamt fur das Kreditwesen (BaKred), the federal banking watchdog, said. "The aim is to discover ... whether the banks need to make additional risk provisions."

BaKred said the regulator had mandated Ernst & Young, the auditor, three weeks ago to examine whether eight of Kirch's largest creditor banks had made adequate risk provisions to cover their loans to the group. An outside auditor was hired because of the difficulty of costing the film and TV rights that form a substantial part of the Kirch group's balance sheet, as their value can fluctuate according to public tastes.

If loans were found not to be properly secured, BaKred could order the banks to set aside more money on their balance sheets to cover them - which would eat into their earnings.

Manfred Wick, Munich state prosecutor, reported in the Financial Times that he was "observing the situation", focusing on the quality of the collateral pledged by Kirch to its creditor banks and any sign of assets moving within the group shortly before KirchMedia's insolvency filing this week. It is not known if this relates to the movement of sports rights (F1 and soccer) owned by the group and now put in a separate company. Wick said he was ready to act on a request by BaKred, the German banking regulator, KirchMedia's administrator, or a complaint by a third party.
Back to top

ITV Digital brink nears

UK digital terrestrial operator ITV Digital looks set to close when administrators Deloitte & Touche report back to the High Court on Monday (15/4/02).

UK utilities group Centrica has ruled out a late rescue bid while the country's soccer associations have turned up the heat on their demands for payment of ITV Digital's contract for lower league rights with the Football Association, suggesting that ITV Digital's parents, terrestrial broadcasters Cartlon and Granada could be excluded from future bidding for Premiership rights.

Centrica, which owns the AA, British Gas and telecoms firm One.Tel, had been suggested as a possible saviour for ITV Digital having previously held exploratory talks - but it reportedly the utility no longer considers ITV Digital a good investment.

The Premier League has a £178 million (E290 million) contract with Carlton and Granada to allow showing of football highlights on the ITV network on Saturday nights, and it is this which the football authorities are suggesting is being put in jeopardy. .To ward off such a loss - and avoid facing a £500 million plus (E800 million plus) legal battle - the league says Carlton and Granada now need only honour the next £89 million (E145 million) instalment in August of the £178 million (E290 million) still owed in its contract then tear up the contract , and let the rights revert to the Football League.
Back to top

Chinese cablecos resist consolidation
By Owen Hughes

China's broadcasting regulators admit that the country's cable TV operators are resisting plans to consolidate the fragmented sector because they fear they will lose revenue.

The State Administration of Radio, Film and Television (SARFT) said that it will spend E273.8 million ($242 million) to bring together the estimated 8,000 cable TV operators who serve anywhere from 80 million to 120 million households.

The body believes the move is necessary to raise standards to uniform levels as China faces overseas competition in its domestic markets with its newly-approved WTO membership. The push is also part of a concerted move by Beijing to bring all broadcasting and media providers under closer scrutiny by central government to curb dissent and regulate programme content. SARFT also feels that the operators focus too much on news and entertainment focused on their locality, at the expense of looking at national issues approved by the ruling Communist Party.

The operators don't want to come under the SARFT umbrella until the regulator comes up with a better revenue-sharing plan. "Because every cable TV network wants to preserve their interests, everyone wants to get the highest valuation of their assets so that they can enjoy bigger stake," SARFT department of law and regulations director-general Zhu Hong said.

The economic divide between the prosperous urbanised coastal strip and the depressed rural areas inland also means that cable operators in cities like Shanghai and Guangzhou enjoy significantly more income from subscribers and advertisers than those in less wealthy areas.

Talks to solve these valuation issues could take two to three years to complete, Zhu said. Although they would be conducted on commercial lines and not under the centrally-mandated economic imperatives that formally marked Chinese planning, Zhu warned "They have to link up with us no matter whether they are willing or not."
Back to top

US Hispanic media boost

Mexico-based Grupo Televisa and Clear Channel Entertainment in the US said on Wednesday (10/04/02) that they are extending their 50:50 joint enterprise into the US Hispanic market, through the purchase of the leading producer of Hispanic events in the United States and the Caribbean, Cardenas-Fernandez & Associates Inc.

The joint enterprise, formed in early 2001, is known as En Vivo and its plans for the new venture are to stage live events and concerts focusing primarily on Latino audiences.

Under the agreement, Televisa, the largest media outfit in the Spanish-speaking world, will acquire 50 per cent of C-F & Associates Inc. The remaining 50 per cent is owned by Clear Channel Entertainment, a subsidiary of Clear Channel World-wide.

Javier Prado, En Vivo CEO, will be the Chief Executive for the joint-venture operations on both countries. He expressed his satisfaction saying that the deal paves the way for new options in live entertainment. "We want to homogenise Latino events in the United States. With this agreement, we will be able to attract more artists to Mexico."

Brian Becker, Chairman and Chief Executive of Clear Channel Entertainment, was reported by Reuters as saying, "The US Hispanic audience is under served in terms of the number of live entertainment events presented each year."

"Under this new pact with Televisa, we have brought together all the components necessary to replicate our success in Mexico, including the resources of our US venue network, the promotional muscle provided by Televisa and the radio and outdoor divisions of Clear Channel Worldwide," he added.

Mexico City-based Reforma newspaper reported Televisa would have paid E6.22 million ($5.5 million) for the stake from founders Henry Cardenas and Ivan Fernandez, who will continue to work as senior executives in the company.
Back to top

Thursday 11th April 2002

QVC On ITV Digital

As the UK's pay-digital terrestrial (DTT) platform ITV Digital appears to be facing imminent collapse, DTT as a free-to-air offering was added to with the launch of home shopping channel QVC yesterday (10/4/02) at 9.0 am. QVC is now available 'free to view' on DTT receivers, including ITV Digital set-top boxes and the new digital TV adaptors from companies such as Pace Microtechnology.

QVC broadcasts 17 hours of live programming daily on the SDN digital terrestrial television (DTT) multiplex - Channel 19 - taking over the ITV Digital channel vacated three days ago by the Granada/Littlewoods venture Shop!

Emyr Byron Hughes, Managing Director of SDN, said, "This agreement between SDN and QVC is very significant. One of the most successful of multi-channel TV operators has decided to make a substantial commitment to 'free to view' DTT. That is very good news for digital terrestrial viewers and a boost for the DTT platform as a whole."

Commenting on the announcement, Mark Suckle, Chief Executive Officer of QVC UK, said, "QVC is already the most widely distributed television channel on cable and satellite. DTT distribution will increase our reach by 1.2 million homes - to nearly 11 million." All multi-channel homes in the UK should now be able to receive QVC's TV channel and service.
Back to top

French Shopping channel closes
By Sotires Eleftheriou

In France, home shopping channel Shopping Avenue, owned by terrestrial broadcaster TF1, is to cease. The decision was made very suddenly - the announcement was made to the staff just as they were about to record a programme. The channel will continue broadcasting until the end of the month using recorded programmes.

Shopping Avenue is carried on the TPS platform and had agreed carriage on Canal Satellite from June. It had also filed for a licence on the forthcoming French DTT platform. Its permanent staff are to be moved to posts within TF1, but the same cannot be said of the free-lancers.

The number of applicants for DTT licences is dropping at quite a rate. Last week TVST, the channel for the hard of hearing on Canal Satellite, closed down. It has also been disclosed that two applications, by Cimax and Infoturf, were rejected at French regulator the CSA's plenary session. A fifth application, by ageing games show host Guy Lux, was also rejected because it was submitted two days after the closing date. The number of DTT licence applications the CSA has to consider is now down to 65.
Back to top

OpenTV iTV ad solution launched

Interactive television company OpenTV has launched OpenTV Advertise, an advertising management solution which enables the delivery of advertising content into interactive television (iTV) applications such as electronic program guides (EPGs), news, weather and games.

The first customer to use OpenTV Advertise is Wow Digital TV, a digital terrestrial operator based in Salt Lake City, USA.

OpenTV Advertise is designed to give broadcasters, network and channel operators and content service providers an opportunity to increase and generate additional advertising revenues by delivering advertising, marketing and promotions to OpenTV middleware based interactive applications. OpenTV's middleware is deployed in more than 23.5 million set-tops worldwide.

Developed jointly with Predictive Networks, OpenTV Advertise uses a comprehensive web-based interface to streamline the advertising process from sales to billing, manages iTV banner campaigns from plans, schedules to delivery, and tracks consumer response to campaigns with precise measured reports in real time.

This complete ad management, delivery and insertion software solution is designed to enable network operators, content providers and advertisers to learn more about their target audiences and tailor campaigns accordingly. Michael Collette, Senior Vice President Marketing and business development of OpenTV comment, "We believe OpenTV Advertise can provide a better focused interactive advertising campaign that ultimately translates to a more personalised interactive viewing experience for the consumer and a better return on advertising dollars."

Steve Lindley, CEO of WOW Digital TV adds, "We see tremendous potential in the OpenTV platform and its suite of interactive TV products. Our partnership with OpenTV enables us to provide broadcasters with the tools and technology to build a direct-to-home relationship with viewers and to generate new revenue streams."

Wow Digital TV also plans to use OpenTV's interactivity-enabling middleware, OpenTV Streamer, OpenTV Publisher, OpenTV Gateway, OpenTV Account as well as its development tools to create interactive applications and professional services, to provide free-to-air digital interactive television content and services to terrestrial broadcasters in the US.

*Jadebird to use OpenTV

In a separate development at OpenTV, the company has made further inroads into the 100 million TV home Chinese market via an agreement with Beida Jadebird Huaguang (Jadebird), to deploy the company's iTV solutions in Chinese provincial cable TV networks.

Jadebird, an investment company that provides digital TV products and services, holds an exclusive contract with many of these networks to build and operate digital TV (DTV) services, including interactive television. Jadebird has invested in nearly a dozen provincial CATV networks throughout China representing approximately 30 million CATV subscribers. The company currently distributes broadcasting technology, programming content and digital STB's to the Chinese CATV industry.

In mainland China, OpenTV has previously provided its technology to Shanghai CATV, Henan CATV and CBSat. OpenTV's technology has been localised to meet specific market requirements including full support for Chinese characters, character entry, local set-top box (STB) manufacturers, and all approved conditional access vendors throughout China.

"We believe the combination of OpenTV's localised, broadband interactive TV technology and Jadebird's hardware, content and strategic presence with provincial CATV networks will act as a catalyst for the deployment of some of the most advanced interactive content and applications available throughout China," said Jeff Brown, OpenTV Managing Director for the Asia Pacific region. "We are excited to be working with such a dynamic partner who shares our vision for high-quality, mass-media interactive TV services in China."

Zhang Honggang, President of Jadebird comments, "This agreement allows Jadebird to offer its advanced digital TV technology combined with OpenTV's proven interactive technology in the Chinese market. It's really the best of both worlds: the most advanced technology with the least amount of risk to deploy. Cable networks are ideally suited for delivering the most exciting, two-way interactive television experience. Jadebird, supported by OpenTV, is committed to providing the best digital TV solution to provincial Chinese CATV networks."
Back to top

Invitation from TVXML Forum:

Dear advanced-television.com readers,

It is our pleasure to introduce a new initiative, "TVXML Forum", and invite you to join the Forum as a member.

The current CATV (Cable TV) and DBS (Digital Broadcasting Satellite) iTV infrastructure, systems and their combinations, are proprietary and vary from one operator to the next. This situation introduces major entry barriers for the vendors of 3rd party iTV applications (Enhanced TV, Messaging, TV-Telephony, Enhanced Advertising, Multi-user games, Betting, TV-Commerce, Shopping, Banking, Paying Bills) and is also responsible for slowing down the growth in the iTV applications market, since it complicates and prolongs the development of universal and standard-based iTV applications. This results in costly and time-consuming integration processes whenever CATV/DBS operators wish to offer new 3rd party iTV applications to their TV subscribers and consequently questioning the economics of the TV operator's business model.

The solution herewith presented is based on TVXML, a TV-specific markup language based on XML, that specifies a standard for the interface between an iTV 2-way Communications Gateway and 3rd part applications. An iTV 2-way Communications Gateway will become one of the key components in the proposed iTV 2-way Communications Architecture that is depicted in the attached preliminary draft named "TVXML Position Paper".

TVXML, an extensible Markup Language for interactive TV applications, is based on the XML standard and describes screen components, including content. TVXML uses the http protocol to establish communication between the iTV 2-way Communications Gateway and 3rd party applications.

TVXML will be promoted from a de-facto standard to become an official standard through the TVXML Forum. The TVXML Forum will be formally launched and publicly announced on May 7, 2002 at the founding conference during the Cable 2002 show in New Orleans.

We are looking for members to join this initiative aimed at founding the TVXML Forum and will be happy to welcome you on board.

The following players in iTV are invited to participate and join the Forum:

1) CATV, DBS and Terrestrial Operators 2) Broadcasters and Content Providers 3) Companies developing interactive and enhanced TV services and applications (iTV-Messaging, 4) TV-Telephony, TV-Commerce, Enhanced Advertising, multi TV subscribers games, and much more) 5) Middleware vendors 6) Conditional Access System vendors 7) Set-Top Box vendors

Presently, forum membership is free of charge an without obligations and will include free subscription to the TVXML Forum's periodical newsletters, white papers, and participation in TVXML Forum's conferences including the Founding conference -see attached "TVXML Forum Objective and Terms" paper. Free invitations to the conference will be sent separately.


Ezra.Mizrahi@comverse.com
Also see objectives and position paper, Thursday PR.

UK DTT support provided

The UK Government and the Independent Television Commision are reported to be endeavouring to stop the collapse of digital terrestrial provider ITV Digital which went into administration a week ago - and there are also unconfirmed reports that the BBC and BSkyB are in talks to announce on Monday (15/4/02) a package of DTT channels to be available via ITV Digital.

No financial aid is expected from the Government, but in its bid to meet a 2006 to 2010 deadline for the switch off of analogue broadcasts - which requires 95 per cent of the population to have digital television - the government is reported to supported talks with satellite operator BSkyB. BSkyB's dominance and practices in the UK pay-TV market had been cited by ITV Digital's parent companies Carlton and Granada as contributing to the demise of the platform.

Despite the rumours of BBC/BSkyB cooperation, it could simply be that BSkyB is acting in a consultative capacity to maintain future potential entry into the DTT arena, provide ancilliary services, and maintaining an outlet for its £64 million (E104 million) per year programming sold to the platform - rather than seeking its own DTT licence. However, BSkyB representatives are reported by the Guardian newspaper to have already approached existing partners of ITV Digital, including 7C and Manpower, the operators of its Pembroke call centre. Also, if ITV Digital were to go bust it is expected that the regulators would then monitor BSkyB's alleged anti-competitive behaviour more closely.

*In another initiative to boost digital television in the UK, users can now access government services, such as health service advice on quitting smoking and plans for the golden jubilee, through their set-top boxes.

Andrew Pinder, the e-envoy charged with making all government services available electronically by 2005, described the availability of services on television as a breakthrough.

"There is a hard core of people who will never use government services over the Internet, so it is incumbent on us to look at other means of reaching them. And there are an awful lot of digital TV sets."

The pilot service, called UK Online Interactive, goes live this week, rolled out first on BSkyB and ITV Active, part of the ITV Digital network, and then to cable operators Telewest and NTL over the next few months.

The operators are reported to be offering the service at a discount to their usual commercial rate, but will benefit from the government publicising the service.

Only seven per cent of the poorest homes have Internet access, according to the National Audit Office, compared to BSkyB's 5.5 million subscribing homes.

Initially interactive TV services will comprise simple information such as tips on avoiding car crime from the police and Foreign Office advice on how to travel to the World Cup games. Future services will offer greater interactivity, such as the ability to fill in forms.
Back to top

No saviour for Kirch

Bavarian Prime Minister Edmund Stoiber retaliated against criticism by political rival German Chancellor Gerhard Schroder who condemned his support of E1.9m in loans from the local Bayerische Landesbank to the Kirch Gruppe.

Stoiber in turn blamed Schroder's economic policy for contributing to Kirch's collapse. Schroder was blamed for precipitating the collapse of KirchMedia by alienating international investors in a failed attempt to engineer a 'German solution' to the crisis.

Meanwhile Kirch's loss-making pay-TV unit Premiere sees its management remain in talks with minority shareholders, including Rupert Murdoch's BSkyB, about a joint takeover of the unit.

Murdoch has a E1.7bn ($1.5bn) option to force TaurusHolding, the group's holding company, to buy his 22 per cent Premiere stake in October - if there is a company to buy it. The option could be swapped for equity in Premiere - which is due to file for insolvency - but BSkyB says it will not inject new funds into the unit.

KirchPayTV was only saved from having to follow the core KirchMedia division into insolvency on Monday because last-minute talks had been requested by an identified investor.
Back to top

Vivendi to sell stake of United Cinemas

French media group Vivendi Universal is rearranging its assets to lower its debt levels. One of the options that Vivendi's CEO Jean-Marie Messier is considering is to sell out of United Cinemas International, one of the world's leading multiplex cinema groups outside the US.

UCI is jointly owned by Vivendi Universal and Paramount Pictures, a division of Viacom. It is one of the largest operators of multiplex cinemas world-wide having 1,091 screens in 120 cinemas in 12 countries, including the UK, Germany, Italy, Spain, Argentina, Brazil, Japan and Taiwan.

Comparable transactions suggest a value per screen of around E1million, implying UCI could be worth close to E1 billion ($880 million), according to the FT. It was also reported that at least one rival cinema operator is already discussing buying Vivendi's stake in UCI.

Messier is particularly interested in reducing the company's E19.1 billion debt - this year his own annual bonus is to be linked to how successfully he accomplishes this task. Last month Vivendi announced the largest loss in French corporate history after exceptional write-offs pushed it E13.6 billion into the red.

Since the start of the year the shares of the French media and environmental services group have fallen 37 per cent, making the company the worst performing stock in France's CAC-40 index. For this reason some analysts even speculated about a possible change of senior management at Vivendi.

A media analyst at Credit Lyonnais, who believes there are chances of Messier being replaced or given less responsibility was reported by the FT as saying, "The financial community is continuing to debate Vivendi Universal with the same level of passion with which it praised Enron in 2001."

In a separate move, Messier, 45, is understood to be considering stepping down as Vivendi Environment supervisory board Chairman, the 63 per cent-owned water and waste utility floated in July 2000.
Back to top

NAB slams satellite merger

The $26 billion EchoStar and DirecTV merger was a focus of criticism at this week's opening of the National Association of Broadcasters annual exhibition in Las Vegas, USA.

NAB President and CEO, Eddie Fritts, said that its association supports the idea of the carriage of all local stations for all TV markets via satellite - an argument put forward by EchoStar and DirecTV in an effort to win support in Washington DC, and elsewhere for their merger. But Fritts told NAB attendees that "Given the track record of EchoStar, however, we have to believe that our best hope of achieving total carriage is through competition in satellite, and not through an EchoStar monopoly."

Fritts pointed out that EchoStar and DirecTV went to Congress in March and made its local TV promise dependent upon the merger winning approval. "And yet two days later, EchoStar went to court challenging its own pledge," Fritts said. Soon after the March Congressional hearings on the merger, EchoStar went to the Supreme Court to challenge must-carry rules for satellite TV.

Fritts speech described EchoStar's challenge of the ban on distant network signals as attacking, "the fundamental bedrock of our local television system."

Last week, EchoStar asked the US Supreme Court to review the distant network stations rule, which prohibits viewers from watching TV stations originating from other parts of the country, according to Sky Report.

As for satellite radio, Fritts said local radio is OK with the new competition. "What we can't accept is a competitor that plays fast and loose with the rules," he said and added that while XM Satellite Radio and Sirius Satellite Radio claim to be national services, they are, "quietly trying to move into local service through their massive local repeater networks."

He remarked, "The FCC intended for those repeaters to supplement satellite service - not to enable a totally different business. And I call upon the FCC to repeal any special temporary authority for local repeaters that goes beyond the purpose of supplementing satellite coverage."

EchoStar said it has held substantive meetings with dozens of broadcast groups and individual broadcasters at the NAB convention.

Echostar, which wanted to meet with broadcasters about carriage deals during the convention, commented, "The meetings and ensuing carriage agreement negotiations have been very positive. Broadcasters have said that they appreciate our commitment to carry all 210 local television markets."
Back to top

C4 CEO boss to lecture at TV Festival


Mark Thompson Channel 4's new Chief Executive is to deliver the 2002 Guardian Edinburgh International Television Festival's MacTaggart Lecture in Scotland this summer. Thompson's speech is expected to outline his personal strategy and vision for Channel 4 and the broadcasting landscape as a whole.

Mark Thompson said he was delighted to be delivering the celebrated James MacTaggart Memorial Lecture. He said, "This year Channel 4 is twenty and so is the independent sector. We have big plans for the future and I can't think of a better platform from which to share this with the industry than the MacTaggart Lecture."

Mark Thompson joined Channel 4 in March 2002 after nearly twenty years at the BBC. Beginning his career in news, Thompson has been Editor of the Nine O'clock News (1988-90), Editor of Panorama (90-92), Head of Features (92-94), Head of Factual Programmes (94-96), Controller of BBC2 (96-98), Head of Nations and Regions (99-2000) and most latterly Director of Television (2000-2001). He also masterminded the BBC's digital television strategy, including the recent launch of BBC4.

The MacTaggart Lecture was inaugurated in 1976 in memory of the acclaimed writer and director James MacTaggart. The lecture consistently attracts major names in UK and international broadcasting and is known for producing controversial and agenda-setting speeches. Past MacTaggarts have been delivered by Dennis Potter, Jeremy Isaacs, Rupert Murdoch, Janet Street-Porter, Ted Turner, Peter Bazalgette, Greg Dyke and last year David Liddiment.

GEITF 2002 takes place from Friday 23 to Sunday August 25. Mark Thompson will give his MacTaggart at 6:30pm on August 23 and will take questions in the Post MacTaggart session on Saturday 24 August.

Festival registration opens at the end of May and can be done via the Festival website at www.geitf.co.uk.
Back to top

Wednesday 10th April 2002

Messier's future questioned

According to a report in yesterday's (Tuesday 9/4/02) French daily Liberation, two financial analysts with Credit Lyonnais, have put a question mark over Jean-Marie Messier remaining at the helm of Vivendi Universal through this year. The reason cited is that the market appears to be losing confidence in Messier.

Despite of his performance in speaking the truth when presenting the annual accounts at the beginning of March, the market is no longer able to understand Messier's strategy. Vivendi Unversal share price has dropped 38.2 per cent since the beginning of the year to E38, its level at the end of 1967 when the company was still Generale des Eaux.

Bad news has continued and last Friday the VU share price lost four per cent and another 3.8 per cent on Monday. The market is so wary that the slightest rumour (generally unfounded) can trigger a sell-off. Messier is criticised for announcing deals before they have been concluded (such as the sale of the professional publishing arm), and the impression of buying into media before completing the sale of non-strategic elements.

Consequently he is seen by some as giving the impression of buying in haste, paying excessively, and selling in haste for a poor price. Another criticism is his insisting on investing in the Internet, and the loss making Vizzavi.

Messier is declining meetings with the financial press and analysts until the publication of the half yearly results, towards the end of April.
Back to top

Return of the ITV Digital licence

Stephen Grabiner, founding chief executive of On Digital - now ITV Digital - is reported to be considering forming a consortium to bid for the ITV Digital licence if the company goes into receivership according to an FT report. The Football League is threatening a £500 million (E816 million) lawsuit unless ITV Digital meets its contractual obligation and pays the £89.25 million (E146 million) due in August - a sum which ITV Digital says it is unable to pay.

If ITV Digital is unable to agree a new deal with the Football League and is liquidated, then its spectrum licences would revert to the Independent Television Commission and be re-advertised by the broadcast regulator, which would open a new auction.

It is expected that ITV Digital would collapse by Monday (15/4/02) if no deal with the League is agreed. This assessment is based on ITV Digital documents which the football league secured via the high court which show ITV Digital parents Carlton and Granada had committed only £20 million (E33 million) in further funding to the business when calling in the administrator on March 27 - and the business is loosing £1 million (E1.6 million) per day.

Grabiner is reported to support a venture capital-backed bid in which customers pay for the set-top boxes - currently subsidised by some £150 (E245) a subscriber and given away free.

Among other possible bidders for a re-advertised licence is UK terrestrial Channel 4, while Granada and Carlton's possible involvement in any bidding consortium is not known.

Carlton and Granada could agree to a reduced level of funding to keep ITV Digital as a going concern - thus facilitating the switch from analogue to digital broadcasting. A buyer could then be sought for all or parts of the business with buyers - potentially including Carlton and Granada - getting a pay-TV business free of liabilities.

Nick Dargan of Deloitte & Touche, ITV Digital's administrator, is due back in the high court on Monday to state whether there is a viable financial future for the company, or if it should be liquidated or broken up and sold.

Merrill Lynch analysts suggest that satellite platform BSkyB could pick up 150,000 extra customers if ITV Digital collapses which would eventually make up for a lost £64 million (E104 million) in channel sales.
Back to top

Kirch Hollywood debts revealed

The insolvency filing of Leo Kirch's core rights trading and free TV business, KirchMedia, has revealed far greater liabilities and debts to the big Hollywood studios than previously than expected - totalling some E500 million ($440 million). Some US sources however had estimated the figure at nearer E1 billion - though several studios had already made provision for the non-delivery of these revenues.

Founder Leo Kirch resigned as head of main subsidiary KirchMedia on Monday (8/4/02).

Though the company has filed for bancruptcy, the German Chancellor Gerhard Schroder has said his government would be prepared to step in to save jobs as losses - which could be as high as 3,000 to 4,000 out of a total 10,000 employees. Schroeder also used the collapse to criticise political opponent Bavarian Premier Edmund Stoiber - who is running against Schroeder in elections later this year - as partially responsible for Kirch's plight, noting that the state-run bank BayernLB helped finance Kirch's money-losing pay TV venture to the tune of E2 billion of 'questionable' loans.

The German judicial process now requires the court to examine whether there is a reason for insolvency, and if there is then an administrator will be appointed to take over day-to-day running of the company. The company's assets will be secured, protected against creditors, and arrangements made to pay employees' salaries for three months. The administrator has three months to draft a report for creditors who must then decide if the company is to be restructured or broken up.

Should the creditors opt for restructuring, either the company or the administrator draws up a restructuring plan, which must be approved by creditors. If creditors opt for a break-up, unsecured creditors are paid on a proportional basis. KirchMedia's four lending banks have formulated a restructuring plan putting the business under 'self-administration' a 1999 legal provision allowing new management to run the company under limited supervision from a court-appointed administrator.

The "new KirchMedia" will be managed by Wolfgang van Betteray and Hans-Joachim Ziems, two insolvency lawyers and Kirch advisers who will use the court's protection to run the company's day-to-day activities and restructure its operations. (See also advanced-television news archive 9/4/02). It is thought that a thorough restructuring of KirchMedia could take up to six months due to the unit's complex structure.

Commerzbank, DZ Bank, HypoVereinsbank, and Bayerische Landesbank - with E1.4 billion of KirchMedia loans on their books - will temporarily take over the new company through a debt-for-equity swap and a capital increase. In the absence of potential investors the banks said Monday that they might be willing to assume a majority in the company, but not for the long term.

The new management has severed ties between KirchMedia and KirchPayTV and said any new deals with Hollywood would be for free TV rights only, with KirchPayTV now forced to fend for itself.

Further bankruptcies are expected soon for the group's loss-making KirchPayTV and TaurusHolding, the umbrella company that contains the three main divisions (KirchMedia, KirchPayTV and KirchBeteiligung).

An insolvency filing by KirchPayTV was halted at the last minute Monday afternoon after an unnamed shareholder intervened. Bankruptcy of TaurusHolding or KirchPayTV would nullify a large proportion E1.6 billion 22 per cent stake held by News Corp chief Rupert Murdoch.

Subsidiaries seen as most at risk include Kirch Media's loss-making sports broadcaster DSF and broadcast service provider Plazamedia as well as KirchBeteiligung's regional weblets TV Munchen, TV Berlin and TV Hamburg. ProSiebenSat 1, which is 53 per cent owned by KirchMedia, said Sunday it would not be affected by a KirchMedia bankruptcy as it is financed independently from the Kirch Group.
Back to top

Tuesday 9th April 2002

NTL trials mobile digital TV

UK cableco NTL's Broadcast division has completed technical trials of mobile Digital Terrestrial Television (DTT) in the Oxford area, with results which NTL says prove the viability of high-quality video and data on the move using existing frequency spectrum. The work follows NTL's building of the world's first commercial mobile digital TV network in Singapore last year, which provides a service to video screens installed on public transport. Of the three digital TV platforms only terrestrial offers mobile reception.

Using a robust form of the established DVB-T transmission format, digital terrestrial television has the potential to offer perfect pictures on the move. This allows applications which can increase the scope of the digital terrestrial platform for both broadcasters and viewers.

In the UK trials, which took place in the Oxford area over the last few months, a multi-channel service was broadcast over a single-frequency network. This was received in a vehicle equipped with seat-back TV screens, demonstrating what were described by NTL as excellent picture quality and signal robustness. Different transmission modes were evaluated and the performance of various demodulator chips was assessed to identify those most suitable for use in mobile receivers.

The trials are reported to confirm that lower data rates delivered the most robust signals. However experiments also showed that reliable reception could be maintained at higher data rates with increased transmitter power.

Steve Holebrook, Business Director for media solutions at NTL Broadcast, said, "This initiative opens the way for development of the DTT platform. It's important that we explore this developing technology to show what can be achieved in mobile TV with relatively little frequency spectrum. There is considerable interest world-wide. The mobile audience is an untapped market for TV delivery and one which only digital terrestrial broadcasts can readily fill."

Technical Specifications:
Both QPSK and 16QAM were used.

Forward error correction (FEC): 1/2 rate
Guard Interval: 1/4 (equivalent to 56 microseconds in a 2k FFT system)
Single Frequency Network transmission on Channel 55 (centre frequency 746 MHz); MPEG-2 multiple programme transport stream containing two live services:

Service 1: ITN video news (requiring no audio content).
Service 2: SIX TV - the Oxford Channel (video and audio content).

Transport Stream total bit rate: 5 Mbps (QPSK), 10 Mbps (16QAM).
Back to top

Germany's largest insolvency

As expected, yesterday (Monday 8/4/02) Kirch Media filed for insolvency, creating the biggest case in Germanyªs post war history, putting almost 10,000 jobs at risk. Later the same day it was reported that Kirch Pay TV, the parent company of the biggest loss maker in the group - Premiere World - had also filed for insolvency. This was later denied by Premiere. The profitable commercial TV holding ProSiebenSat.1 Media AG is not directly involved.

Yesterday's move is also the first time that a German company has made use of a new tool introduced in 1999 in the country's insolvency legislation - a mechanism very similar to the 'chapter 11' in the US. "We aim at keeping Kirch Media in one piece and with the least possible cuts," said Wolfgang van Betteray, one of the new General Managers who is an expert in regeneration.

"We have had the experience, that once the loss-makers are eliminated it is easy to find new investors," van Betteray adds. Wolfgang Hartmann, board member of Commerzbank, added that they had tried to avoid the official restructuring by finding new investors. But the existing minor share-holders (he did not name them but obviously was talking about Murdoch and Berlusconi) were not willing to take a share in the investments necessary leaving all the risks to the banks.

"We were not able to accept that," Hartmann said. He added, "It seems that potential investors are queuing to take a share in Kirch. It would be necessary to find an investor who would be willing to partner to the "new" Kirch Media and not those who are quarreling among each other (again refering to Murdoch and Berlusconi)."

Betteray said the focus now would be to re-negotiate existing program deals especially with the Hollywood majors. "Kirch bought too expensive," he said. Talks to one of the studios is already in a very advanced state. Parts of the company that don't belong to the core business, such as the stake in the Springer publishing house, in the Spanish TV channel Telecinco or in the Formula1 marketing body SLEC and others will be sold.

"We are convinced that there is a good chance for Kirch Media to survive," both bank managers and new management said. The banks also said they will secure the finance needed during the restructuring process with figures between E100 and E999 million) cited. However, the group founder Leo Kirch's declared crown prince Dieter Hahn who was meant to become CEO after the Kirch Media /Pro Sieben Sat.1 merger, lost all his influence while Kirch himself is said to be willing to step back from all his operational control, said van Betteray.
Back to top

TVB's Galaxy contracts in DTH launch
By Owen Hughes

Hong Kong's prospective pay TV player, Galaxy Satellite Broadcasting Ltd, is set to launch a truncated version of its direct to home service as owner Television Broadcasts (TVB) approaches a June 30 deadline to sell half its stake.

TVB was mandated by the Hong Kong government to sell half its interest in the pay TV platform because of its position as the dominant terrestrial TV provider in the Special Administrative Region (SAR) of China before it can go on air.

That deadline will be reached by June 30, but TVB has seen several would-be buyers walk away from a deal, and the company is acutely aware that the price of the half share falls as the cut-off date gets nearer.

Reports from Hong Kong suggest that Galaxy will start with 50 staff members instead of the 400 planned when TVB unveiled the idea two years ago. That was when Galaxy was one of five successful bidders to run pay TV in Hong Kong - albeit with the condition that it shed half of its holding.

Since then Malaysian DTH platform Astro has been one of several companies that appeared interested in investing in Galaxy, only to walk away. At the same time two of the licence holders dropped out of contention, while the remainder have had to delay their rollout.

Galaxy General Manager Stanley Tang said that Galaxy was close to securing E14.8 million in funding from what he said was more than one investor.
Back to top

World cup timings unattractive

Not only is the broadcast value of sports rights plummeting, so is its sponsorship value - though there are special factors at work causing UK commercial network ITV to reduce the price of its soccer World Cup broadcasts by E1.6 million.

UK newspaper News of the World reported ITV has dropped the price for its Japan/Korea World cup package to E4.09 million in a bid to sell it before the May kick-off.

Potential bidders have apparently been put off by the timing of games being out of sync with European prime time - ie, in the morning in Europe. Negotiations with the tournament's 15 official backers - who ITV had to give first refusal - have failed and talks with multinationals including McDonald's and Coca-Cola were equally unfruitful.

ITV's rights sales for the World Cup are reportedly down to E6.5 million - and could fall further than the current 10 per cent of the price reputedly paid for the rights to screen the championships. ITV and the BBC jointly paid E261.7 million for the rights to both the 2002 and 2006 World Cups.

The rights package currently being offered includes live televised matches and highlights, webcasts and interactive coverage. However, it may now be necessary to break up the rights package into customised elements for individual investors.

Among options is the sale of sponsorship rights for matches taking place in the morning for E1,227,000-E1,293,000; and that of afternoon and evening fixtures for E3.2 million.
Back to top

Monday 8th April 2002

NTL restructure this week
(UPDATE 10.30 AM 8/4/11)

The UK's largest cableco, the E19.3 billion indebted NTL, may announce its financial structure as early as this week - months ahead of expectations. Despite some disagreement, the majority of bondholders are reported to be near to agreeing a E9.8 billion debt for equity swap, resulting in bondholders getting a 95 per cent share in the company - while shareholders loose 97 per cent of their stake - and the bank creditors get paid their E6.83 billion in full.

Bond holders will also stump up an additional E567 million 'debtor in possesion' loan to fund development of the business. An additional E2.27 billion in bonds issued to NTL operating companies Diamond and Triangle are not included in the restructure, and the debt will be taken on by the restructured company.

The agreement being negotiated between NTL and the 'unofficial bondholders committee' representing almost half the bondholders, could be blocked by the remaining bondholders, many of whom are also seeking a change in management at NTL.

Once a deal is agreed, US-listed NTL expects to file for Chapter 11 bankruptcy protection to protect itself from creditors who did not agree to the restructure.
Back to top

Six new UPC Sweden channels

Just months after the delayed launch of its digital TV services, UPC Sweden is announcing an extension of its programme menu with six new services for its digital subscribers. Two of the newcomers are from neighbouring Denmark and Norway, the two leading public service stations DR1 and NRK1, while Germany will be represented by one of its leading pubcasters, ZDF. Pan-European news service EuroNews will be available, with seven different language versions chosen via the UPC EPG.

Nature-loving Swedes will certainly be happy to have another wild-life and geography service, National Geographic, to indulge in. Reality TV, a theme channel built around police and fire-brigade action, will now for the first time be available on another operator than its creator, MTG's Viasat, which launched Reality TV earlier this winter.

In addition UPC digital customers taking the three channel Canal+ packages will now also get automatic access to Canal+'s latest invention, Canal + Zap, a 'bonus service' featuring top level football and ice-hockey, mainly Premier League and National Hockey League matches. Those 'bonuses' will be offered on weekends, broadcast in parallel with the ordinary sports transmission on the three other Canal+ services currently available in Sweden.

UPC Sweden's digital launch was planned as early as 1999, ie when the operator was still named Stjaern-TV and then owned by Sweden's most influential financial group, Investor (controlled by the powerful Wallenberg family) and Investor's affiliate EQT. In August 1999 EQT then suddenly sold the company to UPC and the digital TV launch - helped by massive Investor investments in technical upgrading of the Stjaern-TV network - saw one postponement after the other.

A major reason for the delay of UPC's digital TV launch was problems with the development of set-top boxes at UPC's European headquarters in Amsterdam. Finally Microsoft, a UPC investor and intended supplier of the software for the UPC boxes, was ousted and instead the Liberate system is reported to have been chosen, including for UPC Sweden. In the very last months of last year UPC Sweden could finally offer 'real' digital television to its 260,000 customers (mainly in greater Stockholm area). But set top box problems still seem to prevail; many new digital customers still have problems getting their boxes to operate properly.

How many of UPC's 260,000 connected households have actually signed up for digital TV reception is still a well kept secret by the UPC management, "for business and competition reasons."

Meanwhile, since the beginning of 2000 UPC has also offered broadband Internet services through cable modems to its customers, under the name of Chello. Standard users are offered a 512/128 kbps connection, Chello Plus offers a 768/128 kbps solution. When introduced Chello was sold at 200 Swedish krona (£14) per month; during 2001 a number of price 'adjustments' have been made and today a standard connection costs 299 krona per month.
Back to top

Digital TV push in US

In a bid to hasten adoption of digital TV in the US, the country's top regulator, Michael Powell, Chairman of the Federal Communications Commission, last week proposed the September start of a series of deadlines to be met by cablecos, broadcasters and television makers.The deadlines are, "intended to provide an immediate spur to the transition by giving consumers a reason to invest in digital technology today," said Powell in a letter to the Senate.

In 1997, Congress mandated that most broadcasters convert to digital signals by 2006 and granted an estimated $70 billion worth of new television spectrum to do so, but to date the pace of the changeover has been tardy.

Broadcasters blame manufacturers for low roll out of digital TV sets, while television manufacturers blame broadcasters for a lack of digital programming.

Conseqently Powell is urging both ompanies and industry groups to commit themselves to meeting the deadlines, with the aim of creating more digital programming, and technically enabling stations in the 100 biggest cities can broadcast in digital format by January 1 2003. The National Association of Broadcasters estimates it will cost the each of the US' 1,600 television stations $10 million to convert to digital.

The four major US networks - ABC, CBS, NBC and Fox - as well as the HBO and Showtime cable channels, are being urged by Powell to digitally broadcast at least half of their prime-time schedules for this Autumn's season.

Powell also wants cable providers and satellite companies, such as Comcast, Echostar and DirecTV, to carry some digital programs by January 1 2003 at no additional cost to subscribers.

Television manufacturers are being called upon to step up production of sets that include digital tuners, as well as set-top boxes for older TVs that process the digital signal. Powell proposed that over-the-air DTV tuners be included in TV sets 36 inches or bigger by 2005, TVs over 25 inches by 2006 and TVs larger than 13 inches by 2007.

"The plan is purely voluntary but, as you can see, contemplates that each relevant industry will play a significant role. I intend to seek commitments along these lines in the near future," said Powell. Although the proposals received a generally favourable response, there was some doubt that a voluntary route would achieve the results desired.

The FCC also issued its annual report on cable prices which showed that the overall monthly rate for cable and equipment increased by 7.5 per cent, from $34.42 to $36.99, for the 12-month period ending July 1, 2001. The average monthly charge for equipment increased by 9.1 percent, from $2.97 to $3.24, and the charge for basic and expanded basic programming services increased by 7.3 percent, from $31.45 to $33.75, during the same period.
Back to top

UK soccer dispute continues
(UPDATE 10.30 AM 8/4/11)

Talks are continuing between the UK's Football League and terrestrial broadcastes Carlton and Granada, the co-owners of digital terrestrial service ITV Digital which was put into administration last week. Today (Monday 8/4/02) the League is asking the High court to release ITV Digital documents which administrator Deloitte & Touch has withheld as being too 'price sensitive.'

David Burns, the chief executive of the League, has said that he expects a reasonable settlement, but the definition of reasonable is changing, and Adam Crozier, the FA's Chief Executive has said that there is now a lack of trust in ITV, and that the onus in on Carlton and Granada to come up with a workable solution for the Football League - with the current contract as the starting point. Granada in particular is reported to be concerned at the damage the dispute is causing to its relationship with the football authorities.

Last week Burns met Nick Dragon, of accountants Deloitte Touche, the administrators of ITV Digital, who have until April 15 to report back to court as to whether ITV Digital can be saved. Burns said he could only do a deal if he were offered money by Carlton and Granada. He then cast doubt on the March 14 offer of £50 million in place of the £178 million still owing on the £315 million, three-year contract, being reported as saying, "They (Carlton and Granada) told us we could have £25 million for next season and if they held on to the Champions League [which is due for renewal in 2003] then we could have another £25 million for the last year. This has been described as a £50 million offer. It was nothing of the sort. The second £25 million was hedged by conditions."

The league is now calling for a second administrator to be appointed to ITV Digital alongside Deloitte & Touche to avoid a conflict of interest as the accountants also act as auditor and adviser to numerous soccer clubs and publishes an important annual review of football finance.

The League is on the record as demanding at least the £89.25 million due in August, after which it would tear up the third year of the contract and settle for whatever it could get for the rights elsewhere. It says that if no deal is agreed, ITV Digital's parents - will be sued for £500 million, which includes consequential loss such as cancellation of sponsorship and advertising contracts - with legal action also being taken against individual directors of Carlton and Granada.

ITV Digital's collapse has also been paritially blamed on its failure to do a deal with Sky who it says was for asking too much money.
Back to top

Soccer impact of Kirch bankruptcy
(UPDATE 10.30 AM 8/4/11)

The German government is considering offering German soccer clubs a six month E200 million credit guarantee to protect them from the possible insolvency of KirchMedia, the rights holding unit of Germany's Kirch Gruppe which has filed for bankruptcy today (8/4/02), while World Cup rights are being transferred to new company.

On Friday four of KirchMedia's largest creditor banks were drawing up plans for an insolvency filing due to take place today - amid weekend rumours of banks and invetors drawing up a German rescue plan that would exclude Murdoch and Berlosconi. Overnight talks (Thursday 4/4/02) between investors and banks in Los Angeles and Munich did not produce a viable rescue package, although the group did not go into administration on Friday as had been forecast. Prior to its filing for banruptcy this morning, in an agreement with soccer governing body FIFA, Kirch Media transferred its rights to the 2002 and 2006 world cup soccer tournaments - valued at E1.9 billion - to KirchSport AG based in Zug, Switzerland.

The worries about Kirch had earlier led the Deutsche Fussball Liga to question KirchMedia's ability to honour its broadcasting rights which it holds until 2004; the Liga is now considering approaching other potential buyers.

Government officials in the UK said they would not be following the German lead to save UK clubs in dispute with ITV Digital, and even questioned the legality of the German move under European Commission state-aid rules.

*Collapse of the Kirch group, which employs about 9,000 to 11,000 people, could put 3,000 to 4,000 out of work - adding to political pressures on national and regional government which is not keen to see foreign ownership of Germany's leading media organisation and its six channels. Julian Nida-Rumelin, a junior minister in Chancellor Gerhard Schroder's office responsible for media affairs, specifically stated as much when he asked, "How much globalisation we can allow in the media sector and what dangers are posed by the growing domination of the media sector by just a few big concerns, interested exclusively in profit? We must take care that in no circumstances are the public service broadcasters marginalised."

However, an insolvency filing is still seen by many creditors as a favourable option as it would place the company in the hands of a trustworthy independent administrator who would seek to keep it going as a viable concern prior to the sale of any or all assets of the business.
Back to top

For the very latest news go to Home Page ............