NEWS Monday 23rd - Monday 30th September 2002

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Friday 27th September 2002

Premiere boosts subs
By Dieter Brockmeyer

"In total, (German TV channel) Premiere has won more than 100,000 new clients in its first two months after the re-launch," Premiere CEO Georg Kofler said in a newswire interview.

"We recovered from coma," he added and said that the operations would do much better than forecast. This would strengthen his position in talks with potential new investors. The new subscribers would mean that the figure of below 2.4 million subscribers, which had been stable for at least two years, would now sharply rise to approach the 2.5 million mark.

In addition, Premiere plans to launch a special offer in Austria. Starting October 26 there will be a new digital Austria exclusive offer, alongside the regular channel line up.

Premiere Austria is going to televise major Austrian soccer and ice hockey games along with Austrian cinema and TV productions. Also hardcore adult entertainment, which is still illegal in Germany, will be offered via pay per view in Austria. Via this strategy Premiere hopes to double its subscriber figures to 300,000 over the long term.

Currently, Premiere in Austria can be reached mainly via satellite. If cable distribution could be accomplished distribution is Austria would be doubled from about 750,000 now to 1.5 million.
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Liberate in Shaw VOD win

Canadian cableco Shaw Cable which has 2.1 million subscribers, has commercially deployed Liberate Technologies' Liberate TV Platform software to deliver video-on-demand (VOD) services to digital customers in Calgary, Alberta.

Shaw is using the Liberate TV Platform Compact software to integrate and deliver VOD services and the electronic program guide (EPG) on digital set-top boxes. The Shaw VOD service will initially be available to digital cable customers in Calgary.

"Liberate has clearly demonstrated the ability to integrate into our existing infrastructure enabling us to deploy a VOD platform on our existing DCT-2000 set-tops," said Michael D'Avella, Senior Vice President, Planning, Shaw Communications Inc. "This is an important component of our VOD services and we look forward to working with Liberate on future enhancements."

Shaw Internet customers with digital set-top terminals can make a selection from an on-line menu of available titles, then watch their choice through a digital set-top connected to their television. The Liberate TV Platform Compact software allows VOD users to control their programming through their remote control, with Fast Forward, Rewind, Pause and Play functionality.

"Shaw's deep understanding of technology and digital deployment set the bar very high for Liberate," said Coleman Sisson, President, Liberate Technologies. "We're proud to say that we've met the challenge, and provided Shaw with a solid and flexible software platform to complement their digital services."

The Liberate TV Platform Compact software is Java certified and supports the delivery of a full range of applications and services to the widely-deployed Motorola DCT-2000. The Liberate TV Platform Compact software consists of the Liberate TV NavigatorTM Compact client software and Liberate Connect server software.
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Thursday 26th September 2002

ECCA in BCE/ EBC merger

In a move long mooted within the industry, the European Cable Communications Association (ECCA) in Brussels and PBI Media, organisers of Broadband Communications Europe (BCE), have formed a partnership agreement between ECCA's annual conference, European Broadband Communications (EBC), and the annual UK BCE conference and exhibition.

BCE, is an independent stand alone event and not the official inheritor of the UK's defunct cable association show (bought by Reed), but it took the same venue (Olympia) and dates (October), thus was perceived in that way - hence it had sought to increase its European credentials, given the consolidation in the UK cable industry. Similarly, ECCA's annual meeting has always been an excellent high level conference, with its exhibition appearing an afterthought. Consequently the merger of the two is a logical step for both parties - except that ECCA is a travelling feast while BCE was a London event. Now it appears that the joint venture will be in different venues each year - but as this year's BCE at Olympia is a little disappointing in exhibitor numbers, this is no longer seen as such a drawback.

The partnership starts with EBC 2003, ECCA's 49th annual meeting, which will take place in Prague 9, 10 & 11 April 2003. PBI Media will assume the logistics and marketing of the event, while ECCA will coordinate the programme content. EBC 2003 will also feature an exhibition that will be managed by PBI Media. BCE/EBC exhibitors and sponsors will receive first choice of stand space immediately available for EBC 2003. Beginning in 2004, the two events will co-locate and merge into BCE/EBC 2004 - Featuring ECCA's 50th Annual Meeting.

ECCA's Secretary General, Peter Kokken commented, "We look forward to working with PBI Media. Their existing brands, partnerships and industry knowledge will be perfect to complement EBC and will be to the benefit of the members of ECCA."

The theme chosen for EBC 2003 is "Broadband cable in an enlarged eEurope" and will focus on the enlargement of the EU. The programme will include several high level officials from European institutions, political representatives from the candidate countries and key industry leaders in the field of broadband.

"The synergies are perfect," said Tim Hermes, BCE Director. "ECCA's high-level strategic focus, combined with PBI Media's marketing expertise and market leading publications, will create a big opportunity for the European cable business."
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Murdoch's second chance with DirecTV

US Federal regulators want to block the proposed E16 billion acquisition of the satellite television provider DirecTV by its sole rival in the United States, EchoStar to avoid the country's satellite market becoming a monopoly.

A final decision is expected within weeks, but if the deal is not carried out it will give Murdoch's News Corporation the opportunity to step in.

Hughes Electronics, a unit of General Motors, owns DirectTV. News Corp was bidding for DirecTV but couldn't get hold of it after EchoStar placed an unsolicited bid in a hotly contested auction in October last year where.

When confronted with the fact that the merger will be anti-competitive, EchoStar said that the competition wasn't between satellite providers but between satellite and cable, the latter controling about 80 per cent of the pay television market in the US. But consumers in rural areas, who do not have access to cable will have no choice but to take the only remaining satellite service.

Murdoch could use DirecTV to deliver content already available on his Fox television network in the US. He had also intended to tie it together with Sky Global to forge an around-the-world satellite platform that he had then hoped to spin off into a separate company.

However GM said it had no reason to think the deal with EchoStar was dead. "As far as GM is aware the process is ongoing and not complete," spokesman Jerry Dubrowski said.

EchoStar Chief Executive Charles Ergen had plans to meet with Federal Communications Commission Chief Michael Powell this week to head off rising regulatory opposition to the deal. Charles James, Head of the US antitrust division, will make the ultimate decision.
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AOL, Disney in news merger

AOL Time Warner Inc and Walt Disney Co are discussing a merger of their news operations CNN and ABC to cut costs.

AOL Time Warner's CNN, has held merger discussions with both ABC and CBS. The idea is to form a single 'broadcast powerhouse' combining the resources of both global news divisions, according to US reports. CNN Chairman Walter Isaacson said CNN's newsgathering operation and international distribution complement a strong broadcast news unit.

"Models already exist that combine broadcast and cable news networks," Isaacson said. "So the idea is intriguing and we expect that these talks will pick up again from time to time. At this time, CNN is not close to making a deal, but we will always explore scenarios that can make our journalism and our business even stronger."

The two divisions would have a combined revenue of more than E1.9 billion, with more than E1 billion coming from CNN, reported the Independent.

There is an option to spin off ABC and CNN's news operations into a separate company. AOL Time Warner would own a majority stake, from two-thirds to three-quarters, with Disney owning the rest, according to the Times.

Michael Eisner, ABC Chief Executive is under pressure to cut costs and boost revenues at Disney after ABC slipped from number one to number three in the US TV market in just two years. It now lags behind both CBS and NBC.

Although no deal has been reached yet, these are talks that have been discussed for 18 months already. Both companies are more motivated to reach an agreement than ever because they are suffering through a prolonged downturn in advertising sales while under pressure from investors and credit-rating agencies to pay down their debts. The discussions also take place at a time when the top executives of both AOL Time Warner and Disney are under particular pressure from shareholders and directors to improve their results.
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Intertainer suits for VOD price fixing

US video on demand service provider, Intertainer, filed an antitrust lawsuit against AOL Time Warner Inc, Vivendi Universal, and Sony Corp, alleging price fixing in digital distribution of entertainment content.

Intertainer accused the media giants of trying to delay the growth of the broadband video on demand industry in order to give them time to launch their own rival Movielink service.

AOL TW, Vivendi and Sony control some 56 per cent of the film market and 63 per cent of the music market leaving small space for competitors to manoeuvre.

Intertainer Chief Executive Officer Jonathan Taplin said, "The actions taken by these leading studios will, in effect, eliminate consumer choice, produce higher prices, reduce output and lower quality services that would prevail in a competitive market."
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Airey to leave C5 on Friday

RTL Luxembourg boss, Didier Bellens, will let go Channel 5's Director Dawn Airey this Friday despite her being on a year's notice, after she announced she was defecting to Sky TV at the weekend.

Bellens flew to London for urgent talks about succession. The fact Channel 5 has allowed Airey to assume her new position at Sky so swiftly has encouraged suggestions that RTL wants to have good relations with BSkyB with a view to a possible merger or takeover.

It is not clear when Airey is going to start at Sky and the length of her paid leave - if any - is expected to be decided by RTL board members by the end of the week.
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Antena 3 to broadcast UEFA matches

Spanish TV broadcaster Antena 3, owned by Telefonica, has said it intends to bid for rights to broadcast Spanish league football matches and UEFA games for the 2003 to 4 season.

Currently, the national broadcaster TVE has exclusive first rights to the UEFA matches and various Spanish regional broadcasters show the Spanish matches.

In addition to Antena 3's aim to have exclusive rights to broadcast the matches, Telefonica's media arm, Telefonica Contenidos, wants exclusive rights to their distribution through other media platforms, including the Internet.

The Spanish government is keen to reduce the debt of TVE, which may not be able to bid as aggressively to extend its exclusive hold on showing these popular football matches for the next three years.
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Poles seek Italian investment

Cash-hungry Polish channel TV Puls is reportedly in investment talks with Italian Prime Minister Silvio Berlusconi's Mediaset - and discussing an alternative 'cooperative arrangement' with Italy's Fincast which owns Polish cable and satellite TV station Tele 5.

TV Puls is near bankruptcy, has a legal claim against it for E7.8 million for outstanding share transactions, and requires E47 million investment over the next two years - in addition to advertising revenues - to ensure its survival.
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Wednesday 25th September 2002

BBC looses soccer bid

UK public broadcaster the BBC, was seeking the rights to European Champions League soccer, has lost out to satellite broadcaster BSkyB and terrestrial ITV despite outbidding both by some £10 million.

ITV is believed to be paying £40 million and Sky paying £43 million compared to a BBC bid of £50 million for the rights to screen the matchs two nights a week - a boost in valuation compared to the £65 million ITV paid last time around, suggesting sports rights have passed their deflationary stage.

The move is a blow to the BBC's sport's ambitions which led it to make proposal to show advertisements carrying the names of Champions League sponsors. After months investigating how it might deal with the heavy advertising that accompanies the games without breaking its strict charter rules on advertising and the showing of sponsors' logos it came up with what it considered a compromise solution. It was proposed that the names of the sponsors would roll across the bottom of the screen before and after matches and also during half-time. The sponsors' logos would also be shown on the screen before kick-off but their names would not be announced.

However, this did not satisfy rival broadcasters who suggest that it might still infringe restrictions in the BBC's charter. ITV wrote to the IK secretary of culture, media and sport, Tessa Jowell, asking her to examine the BBC's bid.
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Tuesday 24th September 2002

Liberty Media sells Multithematiques

US media giant Liberty Media has sold its 27.42 per cent stake in the French company Multithematiques to Light France Acquisition 1, a subsidiary of Vivendi Universal.

Vivendi was already involved in Multithematiques - which develops content for dedicated cable and satellite channels in several countries - via the participation of Canal Plus. The third main shareholder in the company is Lagardere.
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FreeView to launch next month

The BBC's multi-channel digital terrestrial television service, Freeview, will launch in the UK late October or early November said Andy Duncan, BBC Head of Marketing, dismissing reports that the service may be delayed due to technical problems.

The publicly funded BBC will offer free-to-air DTT services.

Following the collapse of pay-TV DTT provider ITV Digital last spring, the BBC, Rupert Murdoch's satellite service BSkyB and transmitter operator Crown Castle International combined to form FreeView.

*Despite the launch of FreeView, the UK TV regulator, the Independent Television Commission said it will allow Digital Three & Four, and SDN, to continue transmitting their services in the 64-QAM transmission mode for an interim period.

Meanwhile a rapidly commissioned independent study will look into the viability of operating a dual-mode digital terrestrial television platform.

The ITC has amended its technical standards from its original mandate that 16-QAM should be the chosen mode of operation across all multiplexes, to allow the BBC and Crown Castle under the FreeView umbrella to press ahead with their launch plans.

The ITC will conduct field trials when both 16-QAM (FreeView) and 64-QAM (Digital 3 & 4, SDN) transmissions are being broadcast. The ITC said, "The most critical issue to assess will be the potential for differential performance between the public service channels carried at '64-QAM', and those at '16-QAM', in poor reception areas and in the presence of impulse interference (eg from thermostats, car ignitions, refrigerators etc)."

After these trials, the ITC should make up its mind about which mode is the most convenient. The Commission still wants to choose the 16-QAM mode for all multiplexes, but will come to a decision in the New Year based on the trials.
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Soundtrack Channel's European launch

US-based, soundtrack channel (STC) is due to launch its European music channel (STC Europe) in the UK on October 1 on Sky Digital.

STC will play "all the latest movie music video hits from Moulin Rouge, Blade II, and Vanilla Sky to contemporary classic movies like Titanic, Out of Africa, Star Wars and Ghost," according to the company. It will not be a strictly video clips channel, as it will also feature gossip in its 'up-close' celebrity programmes, some movie news and behind-the-scenes specials.

STC Europe will also be available in Germany, Holland and Scandinavia. "We expect STC Europe will roll out in France and Spain later this year," said Bill Lee, STC founder and President.
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Call for Digital delay
By Owen Hughes

The Managing Director of the government-funded Australian Broadcasting Corporation (ABC) has called on officials to delay the replacement in full of analogue TV in favour of digital TV by up to five years saying that the newer medium's potential had not been explored.

Russell Balding said that, "digital TV had gone nowhere" since it was introduced in January 2001and that the continuing government ruling to rollout a high definition TV (HDTV) regime was inhibiting digital's acceptance by consumers, as well as not making full use of the available spectrum.

The ABC has introduced two channels on digital TV, ABC Kids and the Fly channel for youth, but few consumers have the equipment to watch the channels, unless they subscribe to the digitised Austar or Optus pay TV platforms. Viewers outside of these cachment zones have been reluctant to invest in the TV sets or the set top boxes capable of picking up digital TV signals because of a belief that there is a lack of compelling programming.

The government has a programme that will mean a gradual introduction of digital TV between now and 2009 as analogue signals are wound up.

Balding commented, "The current 20-hour HDTV quota will inhibit the ABC in determining the range of content and the appropriate picture quality of its services. A delay in introduction of the quota would allow the ABC to assess audience demand and provide a balanced package of services."
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Cable invests E21m in MetaTV

Interactive TV software company MetaTV has received investments of E21 million in its Series D round of financing the company announced yesterday (23/9/02).

Major US cablecos Comcast Corporation and Cox Communications Inc led the investment, with new investor Comcast having previously invested in Comcast Interactive Capital, a venture capital fund affiliated with Comcast Corporation. Cox Communications' investment follows on from its participation in the previous round of funding. Other new investors include Hearst Interactive Media, a unit of The Hearst Corporation, Atrium Venture Partners, LP, Liberate Technologies Redpoint Ventures and Rosewood Venture Group LLC.

MetaTV says it will use the funds to further development of its technology that allows network operators to deploy and manage advanced digital services and applications such as video on demand (VOD), virtual channels, information services, advertising and commerce. MetaTV's technology is flexible and scalable, leveraging existing infrastructure to provide a common operational model for deploying, validating, provisioning, reporting, and managing services for optimised distribution in any environment. Instead of working with a collection of disparate applications, MetaTV enables network operators, advertisers, and TV programmers to simplify the distribution of new digital applications, services, and content. The result says MetaTV is increased revenue through new business models and accelerated time to market coupled with significantly reduced deployment and management costs.

In addition Mark Hess, Vice President of Digital Television at Comcast Cable Communications, Inc, the cable division of Comcast Corporation and the country's third largest cable company, has been appointed to MetaTV's Board of Directors. Hess joins Chairman and CEO of Sprint Corporation, William Esrey; Managing Director, Comcast Interactive Capital, Samuel Schwartz; Senior Vice President of strategy and development for Cox Communications, Inc, Dallas Clement; Broderbund Co-Founder, Doug Carlston; Partner of Redpoint Ventures, Allen Beasley; and MetaTV President and CEO, Andrew Lev on the MetaTV Board of Directors.

"MetaTV's technology expertise provides a powerful, unified solution that enables interactive TV services and applications to be easily deployed and managed across multiple markets and environments," said Steve Burke, President of Comcast Cable. "This complements our goal of offering customers the products and services that connect them to what's important in their lives, and we're pleased to continue our working relationship with MetaTV."

"These strategic investments will enable us to further the development of our technology enabling network operators to deploy and manage advanced digital services. We are delighted to receive continued strong endorsement from premier cable companies Comcast and Cox and also welcome Hearst Interactive Media to our group of strategic investors," said Andrew Lev, President and CEO of MetaTV. "We continue to execute on our vision to offer the most robust technology for on-demand interactive television applications and services."
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Kirch must pay back debts

Last Friday (20/9/02) the Munich state court ruled that German media mogul Leo Kirch must hand over his 40 per cent stake in the publisher of Germany's top-selling Bild newspaper to Deutsche Bank as loan collateral.

The founder of bankrupt German media giant Kirch Group was expecting to get an extension until the end of September that would have given him time to sell his stake in Axel Springer Verlag, which publishes the mass-circulation Bild along with other titles that include the daily Die Welt.

Under the original agreement Kirch had until September 1st to sell the stake to pay back a E714 million loan from Deutsche Bank that was secured on the shares. The court ruled there was no reason to grant an extension.

Meanwhile, it has been said that Springer continued negotiations to take over Swiss publisher Ringier AG. If he succeeds, buying out Zurich-based Ringier, -publisher of mass-circulation Swiss daily Blick, and Switzerland's largest publisher - he would probably use the money to purchase Kirch's stake in Springer, sources said, adding that differences remain over the value of Ringier.

Kirch Group declared itself bankrupt earlier this year and is now being overseen by bankruptcy administrators working with creditors.

The banks say they are trying to find new investors to restructure the parts of the group that are still commercially viable.

These include KirchMedia's film and sports rights and its profitable ProSiebenSat.1 group of four national television stations, since they no longer have to subsidise KirchPayTV.
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Monday 23rd September 2002

KirchMedia to be sold in parts
Low expectations for Norwegian DTT
ARD supports members
News Corporation in DirecTV lawsuit
New bids for Cegetel stake
Pace release IPTV set-top-box
Case keeps AOL Time Warner chair

Low expectations for Norwegian DTT

"For us to survive as a company it will only require some 10 per cent of the total Norwegian population," comments Tor Fuglevik, MD of Norway's projected leading DTT operator Norges Televisjon (Norway's Television), revealing surprisingly low ambitions for the project.

Norges Televisjon is a project, solidly backed by the country's two leading television operators, Norway's public service broadcaster NRK, and its private rival, TV2, in which Schibsted, Norway's leading media group, its Danish rival Egmont and A-Pressen - a media group with roots in Norway's Labour press - control one third each.

Fuglevik, who has an NRK background, bases his calculations on the fact that today between 85 and 90 per cent of all Norwegian households are able to receive either cable or satellite DTH television. For the remaining 10 to 15 per cent Norges Televisjon will have a form of monopoly. Other potential DTT operators seem to have noticed this difficulty: licences for the Norwegian DTT project have been open for tender since spring, but so far Norges Televisjon is the only official contender. On the other hand applications do not expire until October 1.

Plans are now to introduce DTT in Norway area by area. Norges Televisjon advocates a rapid migration, so that the old analogue transmitter network can be switched off as soon as possible; the management of Norges Televisjon is even pressing for a fixed date for an analogue switch-off, in order to avoid costs for 'double illumination.'

Fuglevik and his colleagues are now working on a system of distribution of set-top boxes to most Norwegian households. Figures mentioned are between 600,000 and 800,000. Fuglevik does not promise boxes free of charge, as is now the position in Sweden, but envisions heavy subsidies, so that boxes could be offered at 500 Norwegian krone (E48) per year over a three year period.

Fuglevik and his colleagues have already worked out a specification of requirements for its future set-top boxes. Several public tenders have already been made public:

"We have addressed a broad variety of manufacturers, and we have already had significant reaction. There is now a short-list, but which companies are on it remains a business secret," Fuglevik comments.
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ARD supports members
By Dieter Brockmeyer

The General Directors of Germany's ARD's public member networks decided at a meeting this week to give a one time financial support to its smallest members RB, the regional Bremen network an SR, the one from the federal state of Saarland. RB will receive E64 million and SR E34 million to help finance the restructuring and streamlining of the networks that has become necessary after the former internal finance order was altered by the network group last year. Up until then the bigger networks had to pay some part of their fees to the weaker members. Now, every network has to operate only with those fees actually generated in its specific geographic region.

At the same directors meeting it was decided to expand the air time of the public children's channel KiKa into prime time. The channel which ends its programming every day at 7 p.m. will soon be able to be seen until 9 p.m. This means a bigger distribution requirement for public services in Germany's already packed analogue TV cable which serves the majority of German TV homes, as all public services come under the German 'must carry' rule. Previously KiKa was on the same cable channel with the German French cultural service Arte which now intends to starts its daily programming at 2 pm.
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News Corporation in DirecTV lawsuit

Rupert Murdoch's News Corporation has found itself in a new lawsuit from US satellite television provider DirecTV, alleging breach of contract, fraud, breach of warranty and misappropriation of trade secrets.

Earlier this year, in March Vivendi Universal's Canal Plus Technologies (CTP) filed a lawsuit in California against News Corporation's NDS which could cost Murdoch's company up to E3.2 billion. The action alleges that NDS, which supplies smart cards to prevent pirating, devoted substantial resources to cracking the subscription code on Vivendi subsidiary Canal Plus' smart cards and then posted the results on the DR7.com website in March 1999, helping to fund hackers (see News Archive).

DirecTV is seeking damages for the delivery of software which it claims is required by contract and an injunction to prevent any further breaches.

NDS, dismisses these allegations as it did CPT's insisting on the lack of merit of these charges.

Only last year Murdoch tried to buy DirecTV and was very disappointed when News Corp lost to General Motors. DirecTV has worked alongside NDS to develop conditional access for its satellite network since the service was launched in 1994. Three years ago they signed an agreement to transfer the technology to DirecTV, effectively ending the relationship. The lawsuit is partly to ensure that transfer still takes place.
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New bids for Cegetel stake

British Telecom's 26 per cent stake in French telecom Cegetel is up for sale and both Vodafone and media group Vivendi Universal have declared an interest in buying it.

BT has voiced no preferences about the bidders for its Cegetel stake. "It looks better now we have two big companies that have declared interest. We don't want to disclose our expectations . . . but it is trending in a positive direction," said BT Retail Chief Executive Pierre Danon as he launched BT's broadband advertising campaign.

Cegetel, with three million subscribers and a further 14 million SFR mobile customers, is France's second biggest telecoms operator. Vivendi had already registered its intentions to increase its controlling 44 per cent stake in the telecom company which could leave Vodafone out of the race for control.

The only hope for Vodafone, which owns 15 per cent of Cegetel, is that debt-laden Vivendi will decide to sell out of Cegetel so that it can strike an agreed deal to buy out the remaining 75 per cent. It is rumoured to have offered E12.6 billion.

But Vivendi, which is to reveal a strategy review later this week (25/9/02), wants to increase its current 44 per cent stake in Cegetel, which generates more cash than any of its other businesses.

Meanwhile Philippe Germond, Deputy Chief Operating Officer of Vivendi Universal and Chairman and CEO of Groupe Cegetel, has accepted a proposal from Alcatel to become that company's Chief Operating Officer from January 1, 2003. Until that date, he will continue to head Vivendi Universal's telecommunications division and the senior management team that has lead Groupe Cegetel for several years. Germond's work has contributed to developing the technical, commercial and financial performance of Groupe Cegetel, which is one of Europe's leading non-incumbent operators.
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Pace release IPTV set-top-box

Pace Micro Technology has introduced an innovative new range of IPTV set-top boxes for telcos and broadband IP operators worldwide seeking to launch advanced television and multimedia services.

The new IP400 family is a flexible platform and incorporates the latest in compression technologies and multimedia services. Gateways in the IP400 range have been developed to address the challenges facing broadband IP operators as they launch new services including bandwidth utilisation, investment issues and future-proofing.

Pace's IP440 and IP442 set-top-boxes in its IP400 family support all of the popular low-bit rate codec. New low bit rate codecs such as MPEG-4 and Windows Media 9 improves the available content which operators can utilise to deliver more content to more consumers at a higher quality over their networks.

The open architecture on which the IP400 family is based will enable operators to stage the rollout of their services and launch tiered services without having to re-invest in new equipment at each stage of their business plan. The open architecture will also enable operators to update all software programmes. All set-top-boxes in the IP400 family, as well as Pace's other IP products (the DSL4000 and IP500) can operate on the same network and can be upgraded remotely over the network.

Operators can also use the Pace IP442 set-top-box to connect a second TV for wider distribution of services within the home. Offering different services to two TVs from a single home gateway will provide more viewing options for consumers while increasing the revenue potential of each household, without increasing customer equipment costs.

Andrew Clifforth, Managing Director of Pace's IPTV Division commented, "Never before have telcos and broadband IP operators been in such a strong position to launch television-led services. A critical point has been achieved: cost barriers have been crossed and new technology developments have opened up the latent potential in networks (Also see IBC review to be posted on site next week).
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Case keeps AOL Time Warner chair

After much debate about Steve Case's 'suggested' departure, the AOL Time Warner Chairman has its 'chair assured'. Some shareholders were expecting his resignation at last Thursday's (19/9/02) board meeting in New York but it didn't happen.

Case and Gerald Levin conceived the failed AOL Time Warner merger. Case is the last former AOL official to hold a top job. Some shareholders - including a small faction of the board - have questioned whether he should remain with the company given the subsequent collapse in share price of the new venture.

The board was understood to have discussed a nascent strategy to revive the ailing AOL Internet service. Case's status was not a topic that was discussed at Thursday's board meeting. "Steve Case is the company's Chairman and will remain so," a spokeswoman said.
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Austar seeks subs boost
By Owen Hughes

Australia's second-ranked pay TV provider Austar United Communications (Austar) has signalled that it will renew its chase for subscribers in the new year, after a hibernation period spent cutting operating costs. Austar CEO John Porter said that the company will start a new campaign to boost subscriber numbers once it starts transmitting its platform on the Optus C1 satellite in February. Porter added that the company had been keeping its plans under wraps as it waits to see if Australian regulators will allow market leader Foxtel to share content with third-placed pay TV provider Optus.

Although nominally in competition, Austar's satellite and microwave delivered platform serves rural and regional Australians, outside of the urban areas in which Foxtel and Optus are active. Austar and Porter have endorsed the content sharing plans currently under review by the government. Porter was quoted as saying that Austar's subscriber push will not be affected if the Foxtel/ Optus agreement is not sanctioned. "There is no real downside to Austar if the deal doesn't go through, but there is some real upside if it does go ahead." Porter said that once the Optus satellite starts to transmit Austar it will allow the service to be seen in far north Queensland, central Australia and Tasmania, a potential 250,000 homes to add to the 470,000 existing subscriber base.
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