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NEWS Monday 9th - Monday 16th September 2002
Scroll down page or click below for news - latest first
| Tuesday | |||||
Friday 13th September 2002
France Telecom chief quits
Thomson could acquire Canal+ Technologies
Pace issues statement
Opposition grows to Telestra's dominance
Armenian TV owner missing
NDS secures Japan's Softbank
OpenTV and MIH in licence deal
Scientific-Atlanta's new Continuum DVP
TW Cable expands billing services
TV market a click away
Oftel wants better Broadband
France
Telecom chief quits
Debt-laden France Telecom is looking for agreement on plans for an emergency
refinancing of E15 billion of their E70 billion debt mountain after a
series of failed acquisitions. The move has cost Michel Bon (right)
his position as chairman after seven years. He resigned on Thursday night
(12/9/02). His replacement is tipped to be Thierry Breton, head of Thomson
Multimedia.
France Telecom is being backed by the French government - which still
owns 55 per cent of the company - and at least five banks, including ABN
Amro Rothschild, BNP Paribas and Societe Generale..
Mario Monti, a spokesman for EU competition commissioner suggested that,
as long as the French government acted as an ordinary investor, the financing
would not fall foul of Brussels' rules against state aid.
However this fundraising will give only a breathing space as France Telecom
struggles with the E70 billion of debts, built up by France Telecom on
a buying spree that included businesses such as mobile phone company Orange,
international telecoms network Equant and British internet service provider
Freeserve.
The company is expected to announce a series of asset sales alongside
its interim results.
Thomson
could acquire Canal+ Technologies
By Sotires Eleftheriou
According to a report in French daily Liberation, Thomson Multimedia is
about to acquire Canal+ Technologies for E200 million. Canal+ Technologies
handles all the group's activity concerned with decoders and conditional
access as well as the interactive motor for the Canal Plus premium channel,
for Canal Satellite, and for the international branches. The sale would
be part of the plan to reduce Vivendi Universal's massive debt. Neither
VU nor Thomson Multimedia would comment on the report.
Canal+ Technologies has had a difficult time selling its technology. The
Canal+ group is almost its only client. The launch of its second generation
PVR decoder has been long delayed and is still awaited.
Canal+ Technologies was put up for sale in July when Rupert Murdoch's,
NDS almost immediately expressed an interest. However, the price offered
for the combination of the Italian Canal+ subsidiary Telepiu, and the
share in the Spanish Canal + along with Canal+ Technologies was felt to
be way too low. In the meantime, the card swap out in Italy has done much
to stem the hemorrhage at Telepiu and other disposals by Vivendi have
taken some of the pressure off so there was no need to sell at a rock-bottom
price.
There had been another candidate for Canal+ Technologies, the Swiss company
Kudelski which is also involved in pay TV encryption. It seems that the
French company Thomson Multimedia has been chosen.
Back to top
Pace issues statement
UK set top technology company Pace Microtechnology, which has seen its shares slump from £12.50 to less than 30p, and cut costs and staff to meet reduced profits figures, has issued a statement from CEO Malcolm Miller confirming cuts and predicting an upturn for the second half of 2002:
"Trading conditions remain difficult, with uncertainty continuing in our major markets. We have taken steps to cut costs, and have recently completed most of the planned reduction in our headcount.
"The total savings from the restructuring are expected to amount to approximately E24 million in a full year, and will be effective from September 2002.
"We continue to invest in new products and technology so that Pace remains fully able to meet the needs of our customers and to retain a leadership position in our market.
"As I said in my July statement, we will be loss-making in the first half of this financial year. We still anticipate some pick-up of demand in the second half, and we remain confident about the longer-term prospects for digital television. However, the rate of deployment will depend on the willingness of the broadcasters and operators to fund the required levels of investment."
Back to top
Opposition grows to Telestra's dominance
By Owen Hughes
Rival telecoms providers have joined in the chorus of protest against dominant Australian player Telstra being allowed to bundle pay TV along with its fixed, mobile and Internet services to consumers.
AAPT, a subsidiary of Telecom New Zealand and Hutchison Telecommunications have both stated that if Telstra is allowed to bundle the Foxtel pay TV platform it owns half of along with its other products it will lead to a "substantial lessening of competition," according to AAPT director David Havyatt.
The Telstra bundling proposal is one of the by-products of a A$650 million content sharing deal planned by market leader Foxtel and third-placed Optus to stem the flow of red ink in the Australian pay TV industry.
Telstra wants to give consumers who take two or more services from the company, including Foxtel, a discount of between five to 10 per cent of their joint bill. But with around 80 per cent of Australia's telephony services, Telstra's suggestion has drawn criticism from its competitors that the move is mainly designed to marginalise their service offerings.
Optus has risen to the support of Telstra, and it says it will send a submission to Australia's regulators saying that it does not believe it will affect competition. Optus already bundles its pay TV service with its other offerings and more than 80 per cent of new customers who sign up to its hybrid fiber-coaxial network are taking more than one product.
Australian regulators are due to rule in October if the Foxtel and Optus content sharing agreement can go ahead.
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Armenian TV owner missing
Artashes Mehrabian, the owner of an independent Armenian television station Abovian TV, has disappeared and not been seen since September 6th.
Mehrabian's colleagues are reported to suspect that he may have been abducted by the same persons who assaulted him and Abovian TV Executive Director Azniv Chizmechian on August 24 in reprisal for airing reports critical of Abovian Mayor Karo Israelian.
Ms Chizmechian told the local news agency that Mehrabian called her two hours after leaving his home the previous day and asked her to suspend broadcasts until after his return. Police have been asked by relatives to launch a search for him.
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NDS secures Japan's Softbank
Japanese BB Cable TV is to launch in Autumn 2002 and it will be the first secure pay-TV service using IP over ADSL on a large scale. News Corporation's NDS Group plc will provide content protection to BB Cable TV.
NDS -provider of technology solutions for digital pay-TV- will provide BB Cable TV with its' Synamedia software suite at the head-end and NDS smart cards for use in subscriber set-top boxes (STB). Club iT will launch the BB Cable TV service through its wholly-owned subsidiary BB Cable Corporation in Autumn 2002 initially in 23 Wards of Tokyo then extending to Saitama-city, Chiba-city, and Yokohama later in 2002 and Sapporo, Nagoya, Kyoto, Osaka, Kobe and Fukuoka from Spring 2003.
A year ago Softbank Corporation's ADSL service, Yahoo! BB, was launched and it's the fastest growing broadband network in Japan. By the end of August 2002 the service achieved 885,000 subscribers (up 106,000 from the end of July). As an extension to this service, BB Cable TV will initially offer 13 channels through STBs and extend to Video on Demand (VOD) and Near Video on Demand (NVOD) services later.
Taro Hashimoto, CEO of SOFTBANK Broadmedia Corporation, Club iT Corporation and BB Cable Corporation, said, "We are confident that this service will change the way that viewers perceive the variety of converging medias, whether television or internet-based. We selected NDS because of their unprecedented record of protecting content revenues for platforms. BB Cable TV views this as a critical factor for a high value content provider. We are developing long-term solutions and believe that NDS will remain a valued partner in ensuring the success of our BB Cable TV service."
NDS's Synamedia solutions will provide content protection at each stage of the transmission process for broadcast and VOD services. NDS's StreamShaper enables broadcast content to be encrypted and encapsulated for distribution through the IP network. StreamShaper is the only solution of its type for broadcast. NDS's XTV Server and XTV Encryptor enables VOD content to be protected, encrypted and enhanced prior to release on to the broadband network, giving PVR functionality on the STB without the need for a hard-disk, thus reducing unit cost. Also, NDS will supply smart cards for subscriber use in STBs.
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OpenTV and MIH in licence deal
US-based interactive television company OpenTV, has signed a multi-platform licensing agreement with MIH Limited, for the deployment of OpenTV's advanced interactive television technologies and bundled content on MIH's pay TV platforms.
The agreement is worth in excess of $4 million (E4.09 million) and OpenTV will also receive fees for annual maintenance and support and fees for integration services as deployments of its interactive services occur on MIH systems.
The initial MIH system user to line-up these additional OpenTV-powered interactive television services is expected to be the South African network operator, MultiChoice Africa (MCA)
The agreement supplies interactive television content developed by OpenTV, including chat, news, sports, weather, horoscopes and the PlayJam games and entertainment channel. In addition, the agreement licenses to MIH OpenTV's enterprise solutions, including OpenTV Advertise, OpenTV Publisher and OpenTV Account.
Back to top
Scientific-Atlanta's new Continuum DVP
Scientific-Atlanta is expanding its digital capability for headends with its new Continuum DVP (TM) MPEG-2 encoders. The company has also developed the EyeQ, an end-to-end digital interactive system for cable operators outside North America (which use DVB and PAL markets) to increase the intelligence of their broadband networks.
The Continuum DVP encoders will combine low costs with high-performance capabilities for converting analogue feeds to compressed digital and for encoding local advertising for inclusion in the digital tier.
These encoders (Models D9030 and D9020) will support a wide range of global standards, including MPEG-2, DVB and ATSC audio for operation in headends around the world.
The Continuum DVP family also includes a Dense QAM Array specifically designed for use in other suppliers' digital systems. For these systems, it provides a cost- and space-efficient solution for cable operators' on-demand rollouts by combining several features, including transport stream processing, QAM modulation and up-conversion, in one product.
The EyeQ interactive DVB system for cable operators using DVB and PAL markets will enable the implementation of interactive services such as on demand applications, set-top- and network-based PVR, e-mail, Internet, and pay-for- play games, as well as supports digital broadcast services like EPG and IPPV.
The EyeQ system will include DVB headend equipment, a DVB-compliant conditional access system (CAS), interactive control computer, interactive DVB set-top boxes, middleware, and interactive program guide.
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TW Cable expands billing services
Integrated billing company Convergys Corporation, has expanded its billing services relationship with Time Warner Cable, a division of AOL Time Warner Inc.
Under the terms of the long-term agreement, Convergys will support Time Warner Cable subscribers with its ICOMS end-to-end billing and customer care product.
Together with its partners, Time Warner Cable is the second largest cable and broadband operator in the United States serving 12.8 million customers. Convergys supports 20 of Time Warner Cable's 39 divisions.
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TV market a click away
A new UK interactive digital television business, the Digital Interactive Television Group (DITG), has Peter Wilkinson, the architect of internet service provider Freeserve, as Chairman and main investor.
Wilkinson, has taken a 40 per cent stake in the DITG - valued at E80 million after an E16 million fundraising.
Companies setting up interactive channels can get packages of services from DITG which include software, studio and production facilities and digital expertise.
Wilkinson wants to launch an interactive 'infomercial' channel using DITG technology and sell it to retail and financial services brands which could launch their own channels for as little as E1.5 million per year.
"Digital interactive television is everything the internet wanted to be," he said. "It is a simplistic and trusted medium that is in 10 million homes and has huge potential to generate revenues."
Avago, DITG's first customer, is a digital gaming channel run by Debbie Mason, and it is operating at breakeven within three months of launching.
Revenues are expected to be made through a share of telephone call charges levied while viewers are online interacting with games and purchasing goods.
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Oftel
wants better Broadband
Oftel have finally announced new pricing for high-speed, always-on leased
line communications, with savings being backdated to 1 August 2001. Prices
for BT wholesale products, which enable other operators to offer leased
lines to UK business customers, will be significantly reduced under Oftel's
proposals. These savings will be backdated to 1 August 2001, when the
products were first introduced by BT.
Under the proposals - which are based on a detailed investigation of the
market - connection charges for PPCs will be reduced typically by 50 per
cent, and rental charges by 30 per cent. These reductions will ensure
that BT's charges are cost-orientated and will support Oftel's aim to
encourage greater choice and better deals in the provision of business-to-business
high-speed communications services.
BT Announce 2Mb High Speed ServiceTrials
BT have announced plans to trial a high speed service comprising of two
SDSL (symmetric digital subscriber line) products that will enable broadband
access speeds up to 2Mbit/s in both directions - upstream and downstream
- over a dedicated copper line. Widening the range of broadband solutions,
businesses will be able to take advantage of large file transfers, new
applications, videoconferencing and teleworking via the SDSL services
delivered through BT's broadband network.
Back
to top
MTG
Russian TV licence threatened
Bertelsmann eyes US
SMG
sells its papers
FCC
considers relaxing ownership
Australian
Regulators merge
AOL/TW
still interested in Europe
ITV
needs government money
MTG Russian TV licence threatened
By Goran Sellgren
Swedish-based media group Modern Times Group, MTG, is running into problems in Russia, a territory which, along with the whole of Eastern Europe, the company has shown an increasing interest in.
Now MTG is running the risk of losing the licence for its first Russian acquisition, DTV (formerly Darial TV), where it acquired 75 per cent of shares in the spring of 2001. MTG could loose its licence at the end of October for violating Russian marketing laws.
"We are not worried, as what DTV is accused of happened before we entered as owners. We were fully aware of this situation when we engaged ourselves in DTV, and we are also very conscious that the licence is about to be renewed in October, and that this might lead to a bidding process. So for us it is business as usual, until further notice, and of course we are going to apply for a renewal of the licence," Hans-Holger Albrecht, MD of MTG, comments.
Russian and Swedish press reports suggest MTG might have to compete with one of Russia's television giants, state-controlled ORT, which is distributed all over the continent, and is reported to be interested in the DTV licence, and its present potential 30 million viewers.
MTG already has a business relationship with ORT. Its major production arm, Strix Television, recently landed a contract with ORT to produce a local version of its successful docusoap concept, "Expedition: Robinson", originally based on the British-American format "Survivor". By producing it for Sweden's public service broadcaster SVT in 1996 and making it a smash hit, returning annually in SVT's schedules, "Robinson" has since then become an international success and a major cash cow for Strix.
In January this year MTG announced the acquisition of 36.3 per cent of Storyfirst Communications, a US-controlled group controlling CTC, Russia's third biggest television network, with a national penetration of some 60 per cent and a six per cent share of the total Russian audience. CTC runs TV stations in eight of Russia's biggest cities, inlcuding Moscow and St. Petersburg. StoryFirst also operates six radio stations in five of Russia's biggest cities.
Back to top
Bertelsmann eyes US
At Germany's biggest media company, Bertelsmann, newly appointed Chief Executive Gunter Thielen appears to have backtracked on earlier moves to cease expansion undertaken by his predecessor Thomas Middelhoff.
Now the group plans to expand its BMG music division, its European television business and its US magazine holdings. The aim is to increase growth and improve profits without major acquisitions.
Thielen's main aim is to get the company ready for a stock market flotation by 2005, with the group targeting a 10 per cent margin on Ebita (earnings before interest, taxes and amortisation).
Selling parts of the media group is not in Thielen's immediate plans, other than the recently announced intention to sell academic publisher BertelsmannSpringer and bol.com.
Thielen is now moving from exclusively looking at Germany for expansion, and is renewing the company's involvement in the US market. Thielen reportedly wants to expand aggressively in the US magazine and music markets. "The US remains our most important market without question," Thielen said.
Thielen's goals might seem a bit ambitious given that both BMG, the group's music division, and DirectGroup posted operating losses in the first half, and most of the other divisions are short of their margin target.
The Wall Street Journal reported that Thielen said BMG, the smallest of the world's major labels, should post Ebita of between E100 million ($97.9 million) and E120 million for the full year. DirectGroup should be at or near break-even by the end of next year.
Thielen also downplayed suggestions that the Mohn family, which owns the controlling interest in the company, would repurchase a 25.1 per cent stake in Bertelsmann held by Belgian investment group Groupe Bruxelles Lambert. "At the moment it's not an issue," he said, adding that the company currently didn't have enough money to fund such a purchase, which could total as much as E7 billion. "The Mohns are very happy with their partners."
In addition to scaling back its Internet operations, Thielen has made some fundamental changes in the company's structure since he took his position in July. The 60 year-old reshuffled the board, dismissing the head of DirectGroup, Bertelsmann's book club and Internet unit. He also reworked the structure of the board.
The positions of chief operating officer and head of mergers and acquisitions do not exist any more in the media group. What remains is the board's traditional structure with divisional chiefs, a chief financial officer and their "speaker," Thielen.
Back to top
SMG sells its papers
Scottish Media Group PLC is changing direction ahead of the new media ownership regulations, and now plans to sell its publishing business, including three regional newspapers and several magazines, putting its emphasis on non-print media aimed at growing nationwide.
The group, which already owns two television franchises in Scotland and Scottish Radio Holdings, will be focusing on a cross media approach with national positions in the faster growing media sectors. Consequently publishing is no longer core to the group explained Andrew Flanagan, SMG's Chief Executive.
"In an increasingly consolidated newspaper and magazines sector, it is clear that the ongoing success of these businesses is best assured as part of a larger publishing network," Flanagan said.
Callum Spreng SMG's spokesperson, without giving away any names, said that there are about 10 bidders for its publishing business. The division includes Glasgow-based newspapers The Herald, the Sunday Herald and the Evening Times, together with 11 magazines such as Scottish Farmer, Boxing News and Classic Record Collector. It also includes an online advertising business called s1.
Spreng said the company wanted to concentrate on radio, cinema and outdoor advertising businesses, in part because they attract greater interest from national advertisers than do the group's magazines and regional newspapers.
SMG's newspapers and magazines date back to 1996 when it paid E173 million. Now analyst estimates expect the assets to fetch around E320 million according to Spreng. SMG hopes to sell the business by the middle of next year, pending regulatory and shareholder approval.
With this move SMG hopes to increase its flexibility under new UK media regulations that will come into force in 2003. These are are expected to end current restrictions barring a company from owning a television franchise and a radio business in the same region.
However, Spreng said the new regulations would probably still block a company from co-ownership of newspapers and broadcast media in a specific region.
The company announced the planned sale as it released interim financial results showing a 43 per cent slide in pre tax profits.
SMG earned E20 million for the six months ending June 30, down from E31.8 million a year ago. Sales fell six per cent to E210 million from E223 million.
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FCC considers relaxing ownership
Today (Thursday 12/9/02), US Federal regulator The Federal Communications Commission begins considering relaxing rules limiting ownership of newspapers and television and radio stations, thereby potentially facilitating large mergers.
The FCC will look at rules which limit the number of television and radio stations a company can own in one market, and which prevent any of the four major television networks from merging with each other. Also up for consideration are restrictions on the national reach of companies that own multiple television stations and companies that want to own two television stations in the same market.
This combined study and any potential changes to the rules are expected to be completed by spring 2003 said Kenneth Ferree, head of the FCC's media bureau.
Considerations include whether such a move would limit media diversity, with one organisation possibly having stakes in a town's newspaper, radio and TV station. Consumer groups have expressed fears that consolidation would lead to a handful of companies controlling all the information people receive as well as how they receive it.
A 1996 telecommunications law required the FCC to periodically review ownership rules in light of greater competition and other changes in the industry.
FCC Chairman Michael Powell, a Republican, has said he expects the new rules to be a bit more "liberalised". The FCC is split 3-2 in favour of the Republicans since they hold the White House.
*In Europe, the continent's biggest commercial broadcaster, Germany's RTL Group, objected to the UK lifting a ban on US ownership of UK television firms in the absence of reciprocal agreements.
Didier Bellens, the chief executive of RTL Group, which is controlled by German media giant Bertelsmann, said European lobbying might be necessary to push the U.S. government to open up its television market.
"We are certainly not against US investment in Europe but simply asking for the same treatment," said Bellens.
In May the UK announced its intention to lift a ban on non-European ownership of UK broadcasters by 2003. In the United States no foreign company can own more than 25 per cent of a broadcaster.
Back to top
Australian Regulators merge
By Owen Hughes
Australia's two broadcasting regulators are set to merge in a move designed to make supervision of the country's media sector more efficient and comprehensive.
Both the Australian Broadcasting Authority (ABA) and the Australian Communications Authority (ACA) have agreed to the proposal that was first mooted by Communications Minister Richard Alston earlier this year as he contemplated wide-ranging changes to the governance of the nation's broadcasting sector including an easing of cross-media ownership.
The ABA controls TV and radio licensing, planning and content, while the ACA regulates the industry and issues licences for mobile phone operations. The acting chair of the ABA, Lyn Maddock was quoted as saying in support of the merger, "A unified, multi-use spectrum and content regulator is the way forward to deal with the future demands of Australia's communications environment.
"While substantial policy and governance issues need to be addressed, a properly designed, converged regulator would integrate and enhance current capacities," Maddocks added.
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AOL/TW still interested in Europe
Europe is described as remaining a long-term growth engine for the US media giant AOL Time Warner Inc and Britain represents a crucial springboard to the continent, says AOL Time Warner CEO Richard Parsons - who added however, that he will not be rushing to agree deals at current prices.
"The UK is a very attractive market and any of us would like to be here and be more embedded in this market," Parsons told a Royal Television Society London television conference, adding that the prices currently were too high.
AOL Time Warner's outlook for results for its online unit was reported to have fallen below expectations due to the advertising slump.
Future growth opportunities include a revisit of Warner Music's failed merger with British music company EMI, the earlier deal falling through because, "The timing was not right ... the regulatory environment was not ready for five (music) majors to go to four."
AOL Time Warner would like 50 percent of revenues to come from non-US markets, up from around 20 per cent today.
Currently AOL Europe and AOL Latin America are lossmakers with slow customer growth and stagnant online advertising. Earlier in the week CFO Wayne Pace said the company would consider partnerships to hasten AOL Latin America's bid for profitability. In Europe, the company said it is on track to achieve its goal of halving losses while growing to more than E1 billion in revenues.
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ITV needs government money
Greg Dyke, Director General at UK pubcaster, the BBC has called the government to provide funding to his rivals, ITV and Channel 5, in the form of substantially reduced fees for their broadcasting licences.
"I have some sympathy for ITV," Dyke is reported as saying, noting how its revenue is now back to 1997 levels in real terms, with ITV no longer 'a licence to print money.' However, he was keen that the money released by spent on programming, to boost UK broadcasting.
Initially Carlton and GMTV each paid more than E80 million a year for their respective licences, already substantially reduced.
Dyke denied that the strength of the BBC was responsible for ITV's difficulties, attributing them to the growth and popularity of rival commercial broadcasters that had hit ITV's audience share. Indeed, the criticism now targeted at the BBC's 'tax-funded' strength is thought to be a main factor behind the suggestion.
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Swedish VOD first
Italy
rewrites media law
Foxtel
'bundling integral'
New
channels at GlobeCast
S-A
aids digital migration
Entry
level IPTV developed
Interactive
VOD for UK
Swedish VOD first
By Goran Sellgren
Next month Swedish SmarTV is launching a trial operation of video-on-demand via broadband in the Northern suburb of Stockholm, Sollentuna, initially involving some 12,000 households. SmarTVand its partner Infraconcepts Holding claim that October's roll-out is the first major trial operation in Europe to launch video-on-demand via broadband; earlier attempts have only been made in Taiwan.
Apart from VOD services SmarTV will offer ordinary ISP services, and new services, such as the options of ordering pizzas, getting access to personal banking services, telephony etc through the home television screen.
The new services have been developed in partnership with Sollentuna Energi, the local electricity provider, allowing access to its existing broadband network.
Digital set top boxes are to be supplied by Kreatel, a company based in Linkoeping (in central Sweden). Kreatel anticipates revenues of several hundred millions of Swedish krona (E1= SK9.2); the present Sollentuna trial operation could eventually achieve a nationwide reach. There are already plans to widen the Sollentuna experiment to several other parts of Sweden including central and Northern parts of the country, with a start early next year
Platform solutions are being developed by Infraconcepts in partnership with US-based SGI and Thirdspace.
Price levels of set top boxes have not yet been established, but according to Infraconcept MD in Sweden, Per-Olof Graveleij, prices are going to be around 3000-3500 krona (E325-380). And fees "are not going to exceed 400 krona (E43) a month."
Back to top
Italy
rewrites media law
A wide-ranging bill to rewrite rules on television and newspaper ownership
proposed by Italian Premier Silvio Berlusconi's government is seen by
the opposition as Berlusconi changing the country's laws for his own personal
benefit.
Under the new rules Berlusconi's Mediaset would no longer be required
to convert one of its three broadcast television stations into a satellite
operation. Mediaset controls the three main private TV channels, while
Berlosconi's government also has indirect influence on the only real competitor,
RAI.
In addition, the bill calls for cross ownership of broadcast and print
media to be permitted and for the state network RAI to gradually be privatised.
Proposals for privatisation of RAI, beginning in 2004, would prevent buyers
obtaining more than a one per cent share, likely to leave overall control
in the hands of the government.
The proposal to allow media companies to own both broadcast and print
media also affects Berlusconi as his interests include magazines, advertising
and film companies and he already controls the Milan newspaper Il Giornale,
while the daily is run by his brother Paolo Berlusconi. Mediaset stocks
closed up 6.57 per cent on Friday (6/09/02) when news of the bill leaked.
Vincenzo Vita, a leader of the opposition Democrats is reported by the
ANSA news agency as saying, "It's a scandal. Beyond every pessimistic
prediction, the conflict-of-interest government is launching a shameful
communications bill. Mediaset remains without competition and RAI will
be put under the control of the government."
However, the bill does limit any company to 20 per cent of communications-market
revenue - though areas included in the definition are being extended.
European Affairs Minister Rocco Buttiglione claimed that the bill creates
"the conditions so that a third TV network could emerge, in addition to
RAI and Mediaset."
The bill requires approval in parliament, where Berlusconi's coalition
has a strong majority.
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Foxtel
'bundling integral'
By Owen Hughes
Dominant Australia telco Telstra must be allowed to bundle the Foxtel
platform with its telephony and broadband services to allow a proposed
pay TV alliance with Optus to succeed - despite warnings from the regulator
that Telstra's half-share of Foxtel was a conflict of interest.
Foxtel CEO Kim Williams insisted Telstra's bundling proposal was "integral"
to the Optus deal in response to Australian Competition and Consumer Commission
(ACCC) worries that the telco's leading position in the market and its
50 per cent stake in Foxtel gave it an unfair advantage.
Last week Foxtel and Optus released new proposals to meet concerns by
the ACCC about an earlier outline of their content-sharing deal that the
commission knocked back in June. Among the points raised was an undertaking
to allow all telcos to bundle Foxtel with their telephony offerings.
WIlliams refuted suggestions that Telstra should not be allowed to bundle
while its smaller national and regional rivals could not. But ACCC head
Professor Alun Fels said that as the owner of a network and a telecommunications
operation, Telstra had a different outlook on competition to that of its
Foxtel partners, News Ltd and PBL.
Fels said, "The Telstra role in Foxtel greatly complicates issues. For
example the media players, that is News and PBL, generally speaking they
would like to maximise the distribution of the content that they have
but Telstra has a bit of a conflict of interest because a lot of this
content is wanted by competitors or potential competitors of it.
"Telstra, by virtue of having 50 per cent of Foxtel, has an interest in
[competitors] not getting this content and the question is whether the
access proposals that have been put to us are sufficient to overcome these
problems," Fels added.
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New
channels at GlobeCast
TV Romania and Hindi-Language Channel SBC Television are being added to
US-based satellite provider GlobeCast WorldTV's Telstar 5 Direct-to-Home
platform service.
GlobeCast's WorldTV platform on Telstar 5 is America's third largest DTH
service, dedicated exclusively to delivering international programming,
and now offers 50 television and radio channels from Europe, the Middle
East and Asia.
TV Romania International is the public television channel of Romania which
provides a Romanian perspective on current cultural, social, economic
and political events. Dedicated to Romanian traditions and language, the
network broadcasts 24/7 and features a broad variety of news, entertainment,
cultural and political programming. TV Romania International, founded
in 1995, aims to provide a balanced, non-biased and independent information
service.
Broadcasting from Chicago, Hindi-language channel SBC Television delivers
24/7 a wide variety of programming originating from India as well as local
programming about the South Asian community in America. Programs include
family entertainment, movies, weekly series, documentaries, musical programs,
talk shows, and in-depth coverage of local community news and events,
as well as newscasts presented in Hindi with English subtitles.
To receive both TV Romania and SBC Television customers will need a GlobeCast
private-label Ku-band receiver and smart card.
Back to top
S-A
aids digital migration
A new version of Scientific-Atlanta's PowerVu Program Receiver (Model
9850) with DVB support is intended to provide a low cost digital solution,
designed to enable programmers to roll out digital service, and increase
the number of channels distributed over current transponders, reducing
bandwidth requirements and associated costs.
The PowerVu Program Receiver which debuts at IBC in Amsterdam (13/9/02)
is described as having a highly integrated design based on the latest
silicon, using fewer components, requiring a lower wattage power supply,
and ienclosed in a one-rack unit chassis. Digital and IP outputs on the
receiver also will enable enhanced or interactive services, including
ad insertion.
The first DVB receivers are scheduled for commercial availability in the
second calendar quarter of 2003.
SciCare Broadband Services, Scientific Atlanta's professional services
organisation, are able to manage the rapid deployment and authorisation
of receivers during new equipment rollout. SciCare offers a suite of end-to-end
PowerVu receiver deployment and management solutions.
The centerpiece of these solutions is PowerVu Connect, an integrated Web-
based system that automates the processes from shipping directly from
the Scientific-Atlanta factory, tracking, authorising and reporting on-line.
Programmers can also manage deployed PowerVu networks through PowerVu
Connect which simplifies the day to day management and tracking of receivers.
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Entry
level IPTV developed
Pace Micro Technology and Tandberg Television have cooperated to create
a low-cost entry-level television system for broadband IP operators.
Tandberg Television joined Pace's IPTV Partner Programme and developed
Internet Protocol Television (IPTV) head-end systems compatible with all
Pace's IPTV products including the DSL4000, IP500 and the new IP400 family
range being launched at IBC 2002. The combined Tandberg Television and
Pace solution is seen as suitable for operators seeking a cost effective
entry-level system for the rapid deployment of basic services.
Pace's range of IPTV products are IP-based digital home gateways designed
to allow telecom service providers and IP broadband network operators
to offer revenue generating interactive TV services to consumers.
An Electronic Programme Guide (EPG) is needed for viewers to see and change
TV channels on Pace's IPTV home gateways, and for the EPG to exist the
user interface graphics have to be created and defined. Tandberg, using
its entry-level portal (iTTV Portal) for fibre-to-the-home and xDSL systems,
extracts and presents EPG information into a format compatible with the
Pace IPTV gateway - HTML or JavaScript. The EPG is then displayed using
a browser built into the gateway. Pace's IPTV gateway and Tandberg Television's
iTTV Portal software combine to provide an end-to-end solution for broadband
operators to deliver IPTV services.
Tandberg Television's iTTV Portal features "fast zapping", the automatic
EPG with thumbnails and its support for multiple VOD servers. The portal
also supports a scalability path to larger middleware solutions such as
iMagic TV and Orca. The Tandberg Television iTTV Portal gives the head-end
administrator full control over all the home gateways in the network in
terms of subscriber management and programme line-up as well as other
services.
Gary Stephenson, Head of Global Alliances for Pace's IPTV Division commented,
"The Tandberg Television system with the Pace home gateway provides a
perfect platform for those wishing to start in IPTV at minimum cost. We
are also pleased to welcome Tandberg Television to our IPTV Partner Programme
and look forward to the exciting results of our work."
Johnny Dolvik, Cable and Broadband Segment Director from Tandberg Television
added: "Pace is an ideal partner to work with on our iTTV Portal. Their
vast experience in IP home gateway technology make it possible for us
to provide an easy to administer and low cost solution for broadband operators."
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Interactive
VOD for UK
Interactive business and entertainment company, ETV Interactive Ltd (EI),
in the UK and US Video-On-Demand pioneer Concurrent Computer Corporation
are deploying true interactive Video and Music on Demand in what they
describe as a first for the UK.
EI's eTV will be integrated with Concurrent's MediaHawk VOD System in
a deployment at Scotland's newest luxury golf resort - the St Andrews
Bay Golf Resort and Spa.
Hotel guests have had access to eTV services such as high-speed Internet,
email, business facilities, and DVD/CD since the resort opened in 2001.
The addition of the MediaHawk Video Server will enable guests to view
true on-demand films and music at any time of the day.
St Andrews Bay Operations Director Jonathan Titterton comments, "We have
seen an excellent uptake on the movies and music, and it is evident from
the guests that they like the service. I believe that having movies available
to watch whenever they want as well as the opportunity to stop, start,
pause, rewind, etc. means that they can make the movies part of their
stay and fit it in with other activities; whereas before, the limitations
of scheduling meant that the guest had to fit in with the film times."
EI Ltd Managing Director, Steven Morris, said, "With EI's compelling eTV
interactive solution, not only is St Andrews Bay Golf Resort and Spa able
to significantly enhance their guests' travel experiences, they also now
have an additional per-room revenue generator. Concurrent's superior VOD
technology brings an exciting facet to this on-demand endeavor."
Del Kunert, Vice President, Marketing and Business Development, Concurrent,
stated, "Together, Concurrent and EI offer a comprehensive entertainment
and information package, providing a full array of interactive services†Leveraging
Concurrent's proven MediaHawk VOD Solution, this offering of true Video
and Music on Demand clearly illustrates the changing landscape and growing
demand for interactive TV."
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Tuesday 10th September 2002
TF1 half yearly profits fall
Telewest shareholders rebel
Sky unveils text service
RTL ups Channel 5 spend
Digitising Ausie networks
Phoenix HK delays
ME gets pre-pay
TF1
half yearly profits fall
By Sotires Eleftheriou
The French media company TF1 (part of the Bouygues construction group)
has reported consolidated net profit of E111.9 million for the first half
of this year, a 23.9 per cent fall over the same period last year, E147
million.
The progression in operating revenue during the first half was irregular,
resulting from a fall in the TF1 core channel's advertising revenue to
E817.2 million, but compensated for by revenue emanating from diversified
activities.
In the first half of 2002 programming costs without the Football World
Cup reached E388.1 million, up 3.1 per cent. Including the World Cup they
amounted to E456.8 per cent, a 21.4 per cent increase.
At the end of June 2002, the TPS platform (of which TF1 owns 66 per cent)
had 1.125 million subscribers to its direct satellite service and 260,000
connected to the TPS cinema channels via cable networks and overseas satellites.
TPS revenue was E250 million, an increase of 13 per cent on that of the
first half of 2001. TPS Ebitda was positive at E30 million. The net consolidated
result of the TPS group was a negative E16 million, compared to negative
E43 million for the same period the previous year.
|
TF1 fist half year figures
(millions of euros)
|
|||
|
2002 - 2001 change
|
|||
| 2002 | 2001 | % change | |
| TF1 channel ad revenues | 817.2 | 833.7 | -2 |
| Diversification revenue and divers | 547.9 | 505.3 | +8.4 |
| Total turnover | 1365.1 | 1339.0 | +1.9 |
| Operating profit | 202.0 | 249.9 | -19.2 |
| Net profit attributable to the group | 111.9 | 147.0 | -23.9 |
TF1 is also
reported to have issued conditions under which it would be willing to
buy Kirchmedia assets.
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Telewest shareholders rebel
Private shareholders at indebted UK cableco Telewest are reported by the Independent newspaper to preempting the loss of their stake's value by clubbing together to force the appointment of a new board director representing their interests.
The Telewest Action Group claims it already represents 2.5 per cent of shareholders and is seeking to sign up 10 per cent so it can force an extraordinary general meeting. It is recruiting members through its website, investoraction.co.uk.
Telewest has begun talks with its bondholders about restructuring of debts. Shareholders are concerned that a proposed E5.7 billion restructure results in a debt for equity swap with bondholders that destroys the value of their holding - as happened at NTL.
"If the company cold-shoulders us then we would be looking for an EGM to try to get our own director appointed," a shareholder representative was quoted as saying.
*Telewest is planning to download a new version of code to its set-top-boxes during late September/early October to resolve 'operational issues' following the network-wide upgrade to Liberate 1.2 earlier this year.
Problems with earlier software included the set-top-box taking too long to change channels and other faults, apparently solved with the new upgrade.
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Sky unveils text service
Tomorrow (11/9/02) Rupert Murdoch's UK satellite operation BSkyB will release a new version of its digital text service which will be powered by SysMedia's Plasma Magenta content management system, running on the OpenTV Publisher iTV system.
Previously users navigated the screen by selecting sections via the arrow keys or by dialling in pages directly. The new service will keep the navigation system and will add faster switching between Sky Text and television channels, and provide quick navigation to other Sky Active services. An important new feature will be that the viewer will be able to continue watching Sky channels in a quarter-screen while browsing text.
The Head of Sky Text, David Klein, said that each week there were over two million Sky digital viewers using Sky Text. "The 'text' key is synonymous with Sky Text and we are confident that the new service will further increase usage now that viewers can watch TV and browse simultaneously," he added.
Although Sky's chosen middleware is the OpenTV Publisher iTV system, the Plasma Magenta content management system is middleware-independent and thus content produced through the system will be used to maintain analogue Sky Text services on, for example, analogue cable.
Plasma Magenta will be offered to all BSkyB's retailed channels as the enabling technology in the speedy launch of digital text services across the Sky Digital platform. Sky Digital's text service includes also BBCi and UKTV.
Mickey Kalifa, OpenTV's General Manager for the UK said, "Since its inception, Sky Text digital has used the OpenTV Publisher iTV publishing solution to enable automatic, real-time content updates. The new version of the world's first digital text service leverages additional features of OpenTV's middleware - such as video resizing - to provide an even better user experience."
The service will be available on Sky News, Sky Movies Sky One, Sky Sports and Sky Travel.
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RTL ups Channel 5 spend
UK terrestrial Channel 5's programme budget has been upped by E14.3 million a year to E250.8 million in 2003 as 65 per cent owner RTL strives to keep Chief Executive Dawn Airey away from the lure of ITV's top slot.
Half-yearly results show Channel 5 is nearing break-even, with revenues up 15.2 per cent to E121.3 million for the first six months of the year, while losses at the channel were down to E2.8 million - and 83 pe cent cut in losses for the first six months of 2002. In the first half of 2001, the channel recorded a E82.5 million pre-tax loss.
Advertising market share at Channel 5 was up to 7.3 per cent from 6.1 per cent. A drop in advertising sales in RTL's core German market pushed first-half television revenues down 2.8 per cent to E1,397 million.
Overall RTL first half Ebitda was down 23 per cent over the same period last year, to E181 million.
RTL Chief Executive Didier Bellens continued the company's cost cutting saying that the company has scrapped its UK stock market listing and would not be buying in to ITV in the UK.
"Proven long-term strategy of focusing on free to air television and radio plus content has continued to be successful and has helped us to weather the difficult current market conditions," Bellens was quoted as saying in the Guardian newspaper.
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Digitising Ausie networks
By Owen Hughes
Australia's pay TV sector has unveiled its plans to digitise the network and allow third parties access to a vastly-increased number of channels in exchange for a content sharing agreement designed to stem an unbroken series of losses in the industry since it began operating in 1995.
Market leader Foxtel has presented to regulators a 12-point pledge that it believes will address the concerns voiced by the government earlier this year that led the pay TV provider to scrap an earlier version of the plan.
Under the new proposals Foxtel's shareholders will spend E306 million on digitising the network and allow third parties access to up to 160 of the estimated 400 channels the upgraded system will support. CEO Kim Williams added that Foxtel will seek to recover only E141 million of the E438 million it spend on building its network to lower access costs.
The undertakings are designed to meet concerns by Australia's competition and consumer commission that the orginal plan to reduce perennial losses by Foxtel and rival Optus by the two companies creating a channel-sharing agreement as well as Foxtel taking on the latter's programme acquisition contracts would reduce competition in the sector.
First announced in February, the plans were rejected by the commission in June amid objections from almost all of the country's media groups that it would reduce competition in the sector. Another major concern was that Telstra, the dominant national telecom that owns 50 per cent of Foxtel, would restrict access by third parties to the cable network it owns.
As the commission digests the pledges before deciding whether they are acceptable, media organisations that have consistently opposed the Foxtel/Optus alliance have warned that they are meaningless unless they can be legally enforced.
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Phoenix HK delays
By Owen Hughes
A meeting in November of the main Chinese Communist Party will further delay the rollout of Phoenix Satellite Holding's news channel with regulators unwilling to upset the status quo before the gathering in Beijing.
Phoenix, 38 per cent - owned by News Corp's STAR TV - said that it was continuing to meet with Chinese regulators about launching the InfoNews channel, but that there had been no progress on the issue over the last six months in the run up to the 16th Party Congress due to start November 8. The event had originally been set to start in September before President Jiang Zemin ordered a delay in the proceedings.
Phoenix's Deputy CEO Leung Noong-kong said that overall his company was in the same position as other foreign broadcasters seeking landing rights into the Chinese market because they were being held up by conservative elements. Leung believed that the rumoured removal of the current head of propanganda, Ding Guangen, later this year may change the situation.
The delay has been partly blamed for Phoenix's worse than expected results for the year to June 30 which saw a loss of E26 million.
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ME gets pre-pay
Home Cinema has launched a pre-paid card for Middle East television viewers to access to the latest Arabic and international pay-TV movies.
Available in three denominations of 1, 5 and 10 Home Cinema credits - the card simplifies ordering Home Cinema pay-per-view movies from Showtime.
Cliff Nelson, Showtime SVP, marketing and sales, said, "While the Home Cinema service has proved a tremendous success since it was launched in March, viewers who pay by cash have had to carefully plan their viewing schedule.
"The pre-paid card gives viewers who pay by cash greater freedom to choose the film they wish to watch at the time they find most convenient. It's their passport to the very best movies available on television."
The cards are now available from Showtime, with subscribers who purchase a 10 credit Home Cinema card receiving a free extra credit.
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Monday 9th September 2002
NTL restructure approved
NTV sale in 2003?
iTV unsuitable for e-government?
Brazillian media disposal
Foxtel/Optus comments sought
Rapid iTV growth expected
Intelsat supplies forces
2003 Edinburgh Chair appointed
NTL restructure approved
UK lead cableco NTL has won backing from a US court last Friday (6/9/02) for the E10.77 billion (£6.8 billion) refinancing package it needed to escape Chapter 11 bankruptcy protection, allowing a debt for equity swap by bondholders.
NTL will be split in two and E11.48 billion - worth of the group's E19 billion debt will be converted into shares, handing total control of the group's UK and Irish operations to bondholders. Bondholders will receive 100 per cent equity in NTL UK and Ireland and 86.5 per cent equity in NTL Euroco.
Barclay Knapp, the Chief Executive of the group, and NTL's Finance Director, John Gregg, had been expected to leave following the restructure, but it now appears that the main bondholders have said they want Knapp to stay while Gregg is moving to become CFO of Euroco.
But NTL chairman, George Blumenthal with whom Knapp co-founded the company 10 years ago, will be dropped from the board by the company's new owners and take on a lesser role, leaving three seats on the board vacant. Former Channel 5 Chief Executive, David Elstein, is being appointed as a Director of NTL UK and Ireland. Jeffrey Brodsky taking over as Chief Executive of NTL Euroco, which is then expected to be sold.
Knapp commented, "We believe we have taken the steps needed to solidify NTL's financial position for the future," vindicating a prediction earlier this year when he said, "We are optimistic that we will be able to complete the recapitalisation in an expeditious manner, with a final consummation to end by the third quarter of this year."
Once again talk is on about a merger with UK number two cableco Telewest, currently undergoing its own debt for equity swap to reduce its E8.3 billion debt. In the words of the new Director, Elstein, "†John Malone of Liberty Media, the most far-sighted cable executive in the US, has been active in the negotiations to rescue the heavily over-extended cable company NTL, no doubt with a view to eventually merging it with the other large UK cable operator, Telewest, in which he holds a 25 per cent stake† keep one eye on Mr Malone..."
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NTV sale in 2003?
Russian utility company Gazprom intends to ask a court to lift the freeze on the shares of Media-MOST that it acquired from exiled media magnate Vladimir Gusinski (See News Archive).
The move is apparently an attempt to speed up the sell-off of Gazprom-Media's holdings.
NTV General Director, Boris Jordan is reported in gazeta.ru. as saying that the company's main task is "to rationalise and consolidate all its shares." Jordan added, "At
present, all these shares are on the balance sheets of different [Gazprom] subsidiaries and we need to consolidate all these packets so that the holding has direct control of 100 per cent of NTV, 100 per cent of NTV+, etc."
Jordan says that he hopes the process can be completed and that NTV and other Gazprom-Media companies can be sold during 2003.
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iTV unsuitable for e-government?
Interactive TV (iTV) will not be a suitable medium for delivery of most public services due to bandwidth restrictions suggests Datamonitor analysts, criticising the UK Government's investment in digital television.
The Government aims to launch its UK Online citizens' portal on all available iTV platforms as part of its aim to have all public services available online by 2005. It has launched on Sky's satellite service and is about to roll out on cable channels NTL and Telewest. But Freeview, the BBC led digital terrestrial service, does not have the bandwidth to deliver UK Online at launch
"I do not think iTV is a suitable medium for the vast majority of government services," Chris Tant, managing analyst at research firm Datamonitor, was reported as saying in Computer Weekly. "Firstly, there are a number of technical limitations, such as the extremely limited bandwidth of DTT, and secondly, iTV is all about leisure and entertainment, not factual, dry public service programming."
A government spokesperson countered that it is appropriate for UK Online to be delivered on a range of platforms and devices, and said there had already been a very positive response from members of the public now able access government services where they might not have been able to do so online.
Suprisingly, Tant seemed to think that those without Internet access at home would get online in public libraries or Internet cafes, and thus those that did not, would not really use Internet access at all, including via iTV.
However Datamonitor does not rule out iTV being used, with its latest iTV report predicting that consumer spend on iTV retail in Western Europe will exceed E6.33 billion in 2006, equivalent to almost E95 per digital TV-using household.
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Brazillian media disposal
Brazilian media giant Organizacoes Globo SA will sell its controlling stake in three of its television affiliates, in a bid to reduce its debt.
Globopar, Organizacoes Globo's holding company and financial arm said that the Marinho family, the controlling shareholder of Globo, will sell its 90 per cent stake in the three affiliates, all located in Sao Paulo state.
The transaction is part of Globopar's efforts to increase its capital by E137 million. In April, Globopar said it hoped to raise between E152 million and E202 million from asset sales to cut its large debt load, estimated at about E838 million.
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Foxtel/Optus comments sought
The Australian Competition and Consumer Commission (ACCC) is seeking comment on the draft undertaking offered by Foxtel, Optus, Telstra Corp Ltd and Austar United Communications Ltd in relation to the proposed Foxtel/Optus pay-TV alliance.
Foxtel has made undertakings that it will digitise the network and provide open access to competitors as part of the measures made overcome competition concerns raised by the ACCC about the proposed alliance.
"The release of the draft undertakings for public comment should not be seen as an indication that the ACCC has formed the view that the undertakings alleviate all competition concerns raised by the Foxtel/Optus content supply agreement and associated arrangements," said ACCC chairman Alan Fels.
In June the ACCC said the proposed arrangements between Foxtel and Optus were likely to breach the Trade Practices Act as they would likely substantially lessen competition.
Foxtel is owned 50 per cent by Telstra, 25 per cent by Publishing and Broadcasting Ltd, and 25 per cent by News Corp.
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Rapid iTV growth expected
Consumers are adapting more rapidly to new computer-based technology, which will dramatically increase the demand for electronic information services through the TV set according to a new report from PBI Media Ltd, "Digital Television Broadcasting - drivers for growth and pattern of uptake to 2010."
The report also sets out to answer the questions, what does this mean for broadcasters, platform providers, content providers, manufacturers and other interested parties? When will the dramatic increase start? What will the consumer want? Who and how can best service this need?
The report also gives country by country forecasts on the penetration of digital television to 2010.
The report is written by independent industry experts, Barry Flynn and Chris Forrester and costs E1000.
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Intelsat supplies forces
Intelsat is delivering satellite TV services to US armed forces personnel living in more than 15,000 households in Korea and Japan according to SkyReport.
Intelsat, working through business solutions provider Artel Inc, will deliver services on six TV channels as well as a program guide and 11 radio programming services through the American Forces Network (AFN), a worldwide radio and broadcast network.
The television channels include a wide selection of the network and cable programming that is seen daily in the United States.
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2003 Edinburgh Chair appointed
Sara Ramsden, UK Channel 4's Head of Events and Factual Entertainment, has been announced as the Advisory Chair for Scotland's Guardian Edinburgh International Television Festival 2003.
Ramsden has been at the Channel since 1994 and in 1999 was made Head of Education and Science. At the beginning of August 2002 as part of the restructuring of Channel 4's commissioning department, Ramsden took on the newly created role of Head of Events and Factual Entertainment. She is also chairing the Contemporary Factual Group, which encompasses the Factual Entertainment, Documentaries and Nations and Regions departments and includes Cross Platform Events.
The Advisory Chair is responsible each year for giving the editorial direction of the TV Festival's programme - from commissioning session ideas to overseeing final production.
Festival Executive Director and Channel 5 Chief Executive Dawn Airey said: "Sara is a very talented executive with a great programming track record. I'm sure as GEITF Advisory Chair she'll deliver a Festival full of vim and vigour".
The Edinburgh International Television Festival 2003 will take place 22-24th August 2003. www.geitf.co.uk
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