TELE SATELLITE NEWS - Number 02/2004 - 11 January 2004 -
A weekly roundup of global TV news sponsored by TELE-satellite International
Editor: Branislav Pekic
* Issue 12-01/2003 of Tele Satellite International magazine is out now *
More details at
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E U R O P E
EURO1080 ON THE AIR
As of January 1, Euro1080 is the first
European satellite channel to
broadcast in the
high definition TV (HDTV) format, which has roughly double
the number of vertical lines and horizontal lines of traditional analogue
television. The satellite channel, set up by Belgian production company
Alfacam, will distribute language-independent content, including sports,
music, shows and cultural events, with best quality surround-sound. The
first programme aired was the New Year's Concert from Vienna. Other
highlights this year will be the European Football Championship in
Portugal, a summary of the Olympics and the Eurovision Song Contest. The
channel's name refers to the number of lines on the TV screen: 1920 pixels
x 1080 lines at 50 hertz interlaced. Anyone with a 60cm satellite antenna
will be able to receive the signal, but you need an additional set-top box
the watch the content. The HDTV signal is an 18Mbps stream, but mixed with
other services it will occupy at least 40Mbps in a single 7Mhz channel.
Euro1080 currently offers two channels: a Main Channel, with four hours of
material every day, and an Event Channel that distributes live or delayed
live programs to 'event cinemas' - theatres equipped with electronic
projection and 5.1 surround sound systems. There are already High
Definition Television (HDTV) broadcast channels in Asia (all Japanese TV
channels, Korean Broadcasting, CCTV China), Australia and in North and
South America (such as HD net, TV Azteca-Mexico, TV Globo-Brasil), but
Europe is lagging behind. In the 80s Europe tried to adopt the D2 Mac
standard, but that failed because the standard was analog and not digital.
This time around, consumer electronic giants Panasonic, Thomson and Pioneer
have put money in the satellite project as they hope to sell more
widescreen (plasma) screens.
FRANCE
TF1 MOST POPULAR WITH TV VIEWERS
The audience share of leading terrestrial channel TF1 fell by 1.2 points to
31.5 per cent, compared to 32.7 per cent in 2002. According to figures
published by Mediametrie on this week, the audience share of cable and
satellite channels in France reached 10.9 per cent in 2003, an increase of
1.4 percentage points, while that of the main terrestrial channels fell.
The audience share of leading terrestrial channel TF1 fell by 1.2 points to
31.5 per cent, compared to 32.7 per cent in 2002. The public sector
channels also lost audience share, although not to the same extent. France
2 audience share was 20.5 per cent, a drop of 0.3 points, while that of
France 3 was 16.1 per cent, also a drop of 0.3 points. M6 obtained 12.6 per
cent, a drop of 0.6 points on 2002, its best year ever. Daytime factual
channel France 5 increased its audience share, by 1.3 points to 6.4 per
cent, while the Franco-German cultural channel Arte saw its audience share
rise by 0.4 points to 3.4 per cent. Canal Plus clawed back some of its
audience loss, reaching 3.7 per cent, an increase of 0.2 points. Its
audience has grown even more since it remodeled its schedule in September
2003, to reach an average of 4.2 per cent. Mediametrie also reveals that
average daily viewing time in 2003 fell by two minutes, to three hours 22
minutes.
TF1 AND LAGARDERE TALK ON MERGING CHANNELS
French broadcast groups TF1 and Lagardere have signed a draft agreement to
merge their respective thematic channels, TV Breizh and Match TV. If
approved by the French regulatory body, the CSA, the merger would result in
a total subscriber base of 7 million households. With 3 million subscribers
on the CanalSatellite and various cable platforms, Lagardere-owned Match TV
currently airs programming with a strong celebrity bias. Meanwhile, TV
Breizh, majority owned by TF1, is based in Brittany and provides content
tailored for that region. The channel is available on cable, as well as on
the TPS and CanalSatellite platforms. As Lagardere is the second-largest
shareholder in the CanalSatellite with a 34% stake, rumours of a possible
merger with TF1's pay-TV bouquet, TPS, have been given new life.
GERMANY
INFRONT DECIDES NOT TO RENEW FOOTBALL TV DEAL
The Bundesliga will have to sell its TV rights for the second time in two
years after the Infront marketing company declined to pick up a two-year
option on January 1. Infront, a Swiss company headed by German football
legend Guenther Netzer, acquired the rights last year following the
bankruptcy of former holder KirchMedia. But Infront decided to let the
December 31 deadline pass to pick up the option for the 2004-2005 and
2005-2006 seasons after the Bundesliga refused to lower the price for the
broadcast rights. Infront cited new European Union
rules affecting mobile
phone companies in demanding that it pay €272.2 million instead of €295
million for 2004-2005. The following season it wanted to pay €277.5
million, down from €305 million in the existing contract. The Bundesliga
will be under pressure to sign a new rights holder, because the €300
million per year generated by TV revenue is the budget backbone of most of
Germany's 36 first and second division clubs. If the Bundesliga fails to
land a new TV contract, it will be forced to peddle the rights itself,
which would include secondary rights to a popular highlights program,
footage to news broadcasts, other shows, and foreign stations. Premiere
pay-TV, which broadcasts all matches live, has already agreed to a new
contract which will generate about half of all television revenues.
RTL TO INCREASE N-TV STAKE
German broadcast group RTL has been given the greenlight to increase its
stake in local news channel n-tv, making it an equal partner with the
networks's co-owner, Time Warner's CNN. The German anti-trust commission,
the Bundeskartellamt, on January 6 gave its approval to RTL and CNN's plans
to buy out the minority shareholder, Bonn-based publisher Norman Rentrop.
Bertelsmann-owned RTL already holds a 48.61% stake in n-tv, while CNN owns
49.79%. The redistribution of the additional 1.6% share held by Rentrop
would turn the joint-venture into a 50-50 partnership. RTL acquired a 47.3%
stake in n-tv in 2002 for close to €100 million.
Internet -
http://www.rtlgroup.com
PROSIEBEN SIGNS OUTPUT DEAL WITH WARNER BROS
German broadcaster ProSiebenSat.1 said on January 7 that it has signed its
largest-ever package deal with Warner Bros. International Television
Distribution, picking up more than 30 Warner Bros. Pictures films as well
as six WB Television series. The package deal, announced by ProSiebenSat.1
CEO Urs Rohner, gives the broadcaster free-to-air rights in Germany to such
films as "The Matrix Reloaded," "The Matrix Revolutions," the Jack
Nicholson/Diane Keaton romantic comedy "Something's Gotta Give," Ridley
Scott's "Matchstick Men" and the Tom Cruise starrer "The Last Samurai." The
channel will also be adding six WBITV series, including Jerry Bruckheimer
crime series Cold Case, Charlie Sheen-led sitcom Two & A Half Men and teen
drama The OC, to their 2004 line-ups.
GOVERNMENT COMMISSION PROPOSES TV TAX INCREASE
A government commission on January 8 proposed increasing the television tax
German viewers pay to support their pubcasters by €1.09 a month to €17.24.
Such a hike would boost the €6.7 billion German pubcasters ARD and ZDF
received in TV tax last year. In its report, the commission said the hike
is needed to cover increased costs involved in production and rights
acquisition. But German commercial broadcasters condemn the tax as
anticompetitive, saying it allows public broadcasters to outbid commercial
networks for top film and sports rights. Last year, ARD and ZDF outbid
Berlin-based commercial channel Sat.1 for the rights to Germany's premier
football league, the Bundesliga. Any increase to the TV tax must be
approved at the state level by Germany's regional governments.
HUNGARY
EUROPA EUROPA SIGNS CARRIAGE DEAL
Zone Vision has inked two deals in Hungary for its Europa Europa channel,
adding 320,000 subscribers to its distribution base. The channel will now
be available on UPC and Fibernet, after having launched in the country in
2002 on Matav Kabel. Europa Europa, which now reaches 8 million homes
across Europe and Latin America, features European movies.
THE NETHERLANDS
PUBLIC BROADCASTERS FACED WITH FUNDING CUT
Dutch public broadcasters must slash 400 staffers as part of €64 million in
government funding cuts over the next four years, according to a report in
Variety. The news is the latest blow to the public system, which has come
under increasing criticism from the government and the media. The combined
budget for the pubcasters in 2003 was $1.1 billion, 75% from tax money and
25% from advertising. But critics say the programming is not distinct
enough from commercial channels' content to justify so much subsidies.
Additionally, the nine main pubcasters in the system historically represent
social, political and religious interest groups that are less relevant to
today's viewers. An interim evaluation of the pubcasting mandate by
parliament is expected in April. The cutbacks will force more synergies,
such as sharing use of studios among the fiercely independent broadcasters.
One study found the studios of TROS, VARA and VPRO, three of the main
pubcasters, were empty 60% of the time. The government's right-wing
libertarian party the VVD also wants to ban pubcasters from bidding for
expensive sports rights. The NOB, the technical facility for all
broadcasters in Holland, also is facing a reorganisation.
SCANDINAVIA
BROADCASTERS OPT FOR VIZRT
Vizrt Ltd. the world's leading real-time 3-d graphics system for TV,
announced on January 5 that it had received and delivered additional orders
from four major Scandinavian broadcasters. NRK in Norway has ordered
another play out and graphics system license for their news and sports
department located in Oslo, Norway. TV2 Denmark has placed an order for a
Viz|Trio (character generator) license for their operations in Odense and
Copenhagen. Additionally, TV2 Denmark also invests in further licenses of
Viz|Artist, the award winning graphics creation module. TV2 Norway commits
to another two-year period of using Vizrt's software as their only on-air
graphics system. The new deal ensures that TV2 will be the biggest user of
Vizrt software in Scandinavia. TV Norge is a new customer of Vizrt. By
purchasing Viz|Trio, they will elevate the use of graphics in their program
production. The latest deals show again the commitment that the
Scandinavian broadcasters have towards the software provided by Vizrt with
deals totalling $900,000 in 2003, and strengthens the presence of Vizrt in
this region.
Internet -
http://www.vizrt.com
EC SAYS YES TO SATELLITE TV DEAL
The European Union's antitrust authorities on January 5 approved a
satellite distribution deal between Norway's telecommunications group
Telenor and France's satellite television platform Canal Plus to offer
pay-TV channels in the Nordic region. The exclusive carriage deal unites
Telenor's satellite TV platform Canal Digital and Canal Plus Nordic for
satellite distribution of Canal Plus, a subsidiary of Vivendi Universal.
Canal Digital was originally created as a joint venture between Canal Plus
Nordic and Telenor as a direct-to-home satellite TV platform. In July 2001,
Canal Plus Nordic sold its 50% share in Canal Digital to Telenor for €290
million and concluded exclusive distribution agreements to guarantee the
continuity of the pay TV service. Vivendi sold Canal+ Nordic in September
2003 for €70 million to private equity firms Baker Capital and Nordic Capital.
SLOVAKIA
UPC SLOVAKIA ADDS TWO NEW CHANNELS
Cable company UPC Slovakia has added two more thematic channels to its
platform: the sports and lifestyle channel Extreme Sports Channel and the
women's channel Club. Both channels broadcast 24 hours, 7 days a week and
are offered within the basic package to UPC subscribers throughout the
country. Club Channel and Extreme Sports Channel will replace channels with
the lowest viewership.
SPAIN
RTVE DOCUMENTARY CHANNEL ENJOYS SUCCESS
Spanish public broadcaster Radio Television Espanola (RTVE) is enjoying a
Mexican revolution, according to Variety. Over this year, its documentary
channel Grandes Documentales has increased pay-TV subscribers south of the
Rio Grande from 130,000 to 1.24 million; news channel 24 Horas has gone
from 100,000 Mexican subscribers to 1.24 million; and golden-oldie Canal
Nostalgia climbed from 8,000 to 350,000. Launched in 1956, RTVE owns the
second largest back catalog of Spanish language programming in the world,
after Televisa's library. RTVE has signed deals for Grandes Documentales
with Sky Mexico and seven Mexican cable operators, and many of these cable
networks also carry 24 Horas and Canal Nostalgia. RTVE's general
entertainment channel, TVE Internacional., has just signed a deal with UK
satellite broadcaster BSkyB, and RTVE is negotiating mini-premium bouquets
for Switzerland and Romania.
GOVERNMENT TO FREEZE SOGECABLE TARIFFS
Spanish Finance Minister Rodrigo Rato on January 8 said his ministry will
freeze the 2004 tariffs charged by pay-TV broadcaster Sogecable's
satellite-TV business. When it cleared Sogecable's takeover of rival
satellite-TV service Via Digital in 2002, the Spanish government stipulated
Sogecable couldn't raise tariffs in 2003, and that price hikes couldn't
exceed euro-zone inflation forecasts for each year through 2006. In
addition, the government reserved the right to decide by exactly how much -
under forecast euro-zone inflation - Sogecable could raise prices over the
next three years.
UNITED KINGDOM
CHRISTMAS CHEER FOR FREEVIEW
Sales of Freeview decoder boxes boomed over the Christmas period, with more
than 200,000 sets sold last month. The Christmas sales of the boxes - which
cost as little as £60 - have pushed the number of viewers of the digital
terrestrial TV service towards the 2.5 million mark. Since its launch in
October 2002 by a consortium backed by the BBC and BSkyB, Freeview has
attracted over 2 million customers, including former subscribers to ITV
Digital. The December sales figures for Freeview, which gives access to 30
channels without any subscription costs, come as a boost for the
government's drive to get viewers to switch to digital TV. It is hoping the
whole country will have gone digital by the end of the decade, when it
wants to switch off existing analogue signals. While more than half of
British households have digital TV - through Freeview, BSkyB's 7
million-plus satellite subscribers and 2 million cable TV customers -
market forces alone may not be enough to get to full coverage. The
government wants to wait until 90% of the country has digital TV before
switching off analogue and paying for the rest of the population to go
digital. But at present a quarter of viewers are unable to receive the
Freeview signal because they live outside the reception area. And there are
concerns the government has not taken into account households that have
digital TV but other analogue TV sets as well, and the need for video
recorders to be retuned for recording digital programmes.
FX UK TO LAUNCH ON MONDAY
With an ambition to be the channel of cult hits and targeted to adult men,
the upcoming FX channel set to launch January 12 in the United Kingdom on
Sky is determined to cut out a new niche in a crowded channel universe. Fox
International Channels U.K., has landed on cult hits like "The Shield,"
which has attracted sizable audiences on Five as the unique selling point
for FX UK, which has a "high-seven-figure" launch budget and will be the
first FX channel to be launched outside of the United States.
FOREIGN TV RIGHTS FOR PREMIER LEAGUE UP FOR GRABS
The Premier League on January 7 closed bids for its overseas television
rights, with media giants including Rupert Murdoch's News Corp and Disney
jostling for the opportunity to broadcast games in Asia, Australia and the
United States. For the first time the league is considering striking deals
with individual broadcasters rather than dealing with consortiums of sports
agencies, which resell the rights. Three years ago the league raised £178
million by selling the overseas rights to a consortium comprising Canal
Plus, News Corp and the sports agencies TWI and Octagon CSI. This time,
given the rising popularity of Premiership clubs abroad, it is hoping to
instigate a bidding war for the rights. The spread of mobile phone
ownership and high-speed Internet access in the Far East is also expected
to increase the number of bids. Analysts believe the total raised may top
£220 million but warn that the increased desirability of the rights will be
offset by the decline in sports rights payments. The Premier League will
now start talks with interested parties, with an announcement expected by
the end of February. Individual bidders include Star TV, owned by News
Corp, and ESPN, owned by Disney. To date the league has raised more than
£1.3 billion for the three years from the start of next season and hopes
that overseas TV and radio rights deals will enable it to come close to
matching the £1.6 billion raised last time.
ADVENTIST CHURCH LAUNCHES HOPE CHANNEL
In the first week of January, the Seventh-day Adventist Church launched its
new 24/7 satellite channel for Europe. The "Hope Channel" began test
transmissions from the Eutelsat Hotbird 6 satellite on December 18, 2003.
Up to 30 million homes across Europe now have the potential to receive the
channel, with receiving dishes as small as 60 cm in diameter in the
South-East of England. At present the programmes being broadcast on the
Hope Channel are mainly traditional Adventist programmes such as Amazing
Facts, It Is Written, Breath of Life, and Faith Alive. Although there are
already a handful of religious channels being transmitted to the UK and
Ireland by satellite, it is unusual for a channel to be operated by a
single Christian denomination. It will cost the church about £190,000 a
year to run the channel.
Internet -
http://www.adventist.org.uk
http://www.hopetv.org
N O R T H A M E R I C A
UNITED STATES
PANAMSAT OFFERS HDTV TO AMERICAN VIEWERS
On January 1, PanAmSat, a satellite operator that beams programming to
local cable operators for transmission to their customers, switched many of
its HDTV channels to a new satellite that the company is positioning into
something it calls an HDTV neighborhood. The company, which is owned
primarily by Hughes Electronics, says it thinks that cable operators will
be more likely to offer HDTV programming if they, like shoppers who go to a
mall, can find the good things all in one place. PanAmSat operates a
worldwide network of 30 satellites, which it uses to transmit programming
to cable operators and broadcasters, and directly to consumers. The
company's newest satellite, Galaxy XIII, has started to carry the HDTV
feeds of popular networks like HBO, Cinemax, Starz Encore and HDNet.
Additional HDTV programming will migrate to it and to PanAmSat's next
HD-oriented satellites, Galaxy XIV and XV, when they launch in 2004 and
2005. The satellites use the company's Power of Five marketing approach,
created for analogue program transmission in the early 1990's. Under this
system, cable operators will be able to receive programming from all three
satellites with only one dish, eliminating the costs involved with multiple
receiving equipment. Each of Galaxy XIII's 24 transponders can carry two
HDTV feeds, or 48 high-definition programming channels per satellite. Some
transponders will be used to transmit standard-definition programming. The
satellite's signal can reach cable operators serving 80 per cent of the
nation's subscribers. Because a large amount of HDTV programming is carried
on one satellite, it is possible that economies of scale will eventually
reduce transmission fees.
HMG PLANS TO LAUNCH AMERICAN VERSION OF PRIDEVISION
Despite having sold gay digital TV channel Pridevision to Bill Craig last
month, Canada's Headline Media Group is intent on rolling out an American
version of the channel within a year. Though it sold the Canadian 24/7
gay/lesbian channel in December 2003, Headline has retained international
rights and has not given up on plans to expand the service internationally.
With financial resources freed up by the sale, plans are now underway for
the roll-out of a Pridevision channel in the US within a year. Headline has
signed a distribution agreement for Pridevision with "one of the top two US
cable distributors" and is in discussions with one of the major satellite
carriers in the US.
TIVO FILES SUIT AGAINST ECHOSTAR
TiVo Inc. filed a patent infringement lawsuit against EchoStar
Communications Corp. on January 5, claiming its Time Warp patent was
violated. The suit was filed in federal district court in Texas. In a press
release TiVo, which offers television services for digital video recorders,
said inventions protected by the Time Warp patent include a method for
recording one program while playing back another and watching a program as
it is recording. A spokesman for EchoStar, which provides satellite
television services, said the company hasn't received the lawsuit and
therefore couldn't comment on it. The Time Warp patent was issued to TiVo
in May 2001. TiVo filed the patent with the U.S. Patent and Trademark
Office in July 1998.
Internet -
http://www.tivo.com
TiVo Inc. on January 5 filed a patent infringement suit against EchoStar
Communications Corporation in federal district court in Texas alleging the
satellite television service provider is violating claims of U.S. Patent
No. 6,233,389 issued to TiVo in May 2001, known as the "Time Warp" patent.
Key TiVo inventions protected by the Time Warp patent include a method for
recording one program while playing back another, watching a program as it
is recording, and a storage format that supports advanced TrickPlay(TM)
capabilities (i.e. pausing live television broadcast, fast-forwarding,
rewinding, instant replays, and slow motion). TiVo filed the patent
involved in this litigation with the U.S. Patent and Trademark Office in
July 1998.
TURNER TO LAUNCH HD VERSION OF TNT
Turner Broadcasting System has announced plans to launch a high-definition
version of its cable channel Turner Network Television (TNT) in May of this
year. Mark Lazarus, the president of Turner Entertainment Group, said that
the channel's programming mix of drama, like Law & Order, and sports
coverage, such as NBA matches, was "ideally suited to the HDTV format. TNT
first began experimenting with high-definition broadcasts in February 2003,
providing coverage of the NBA All-Star Game in HDTV. TNT will do the same
this February. TNT-HD's high definition offerings will include the upcoming
dramatic series The Grid, a co-production with the BBC, Fox Television
Studios and Carnival Films. The series is set to premiere this summer.
VIACOM AND DIRECTV SIGN CARRIAGE DEAL
Viacom Inc. and DirecTV on January 7 announced a comprehensive agreement
that secures continued carriage of all of MTV Networks' program services
currently carried by DirecTV, and BET. The deal also provides for CBS
analogue broadcasts, as well as high-definition broadcasts for CBS's
coverage of Super Bowl XXXVIII and its industry-leading HDTV lineup in
owned-and-operated markets. DirecTV will also continue to carry UPN analog
broadcasts. Additionally, MTV Networks' Nicktoons will be launched to
customers who subscribe to DirecTV's Total Choice Plus package. Nicktoons
will be available on DirecTV channel 302. Under the terms of the
affiliation agreement, Viacom's MTV Networks services (including MTV,
Nickelodeon, VH1, TV Land, Spike TV, CMT, Noggin, VH1
Classic, MTV2 and
Comedy Central) and BET will continue to be available to DirecTV
subscribers nationwide.
DIRECTV FILES REQUEST TO SHARE SPECTRUM WITH TELESAT CANADA
DirecTV, Inc. on January 7 announced it has filed with the Federal
Communications Commission (FCC) for authority to move the DirecTV 5
spacecraft into an orbital slot controlled by Telesat Canada. The DirecTV 5
satellite would be moved into the Telesat-controlled orbital location of
72.5 degrees, allowing DirecTV to expand local-into-local channel service
to a minimum of 130 U.S. markets by year-end - a commitment made to the FCC
as a part of the News Corp. transaction completed in December of last year.
DirecTV's goal is to begin the rollout of local-into-local service to these
additional markets by early April 2004. The relocation of this in-orbit
satellite will enable services to be made available immediately. DIRECTV 5
would remain at the 72.5 degree orbital position until the launch of
Telesat's new DBS satellite. Telesat's new DBS satellite will provide the
ability to ensure continuity of service at the 72.5 degree location. The
arrangement with regard to DIRECTV 5 is contingent on the successful launch
of the DIRECTV 7S satellite later this quarter. DIRECTV 7S will replace
DIRECTV 5 at 119 degrees, freeing up the latter satellite for its move to
72.5 degrees, assuming FCC approval is granted for the relocation. DIRECTV
5 will use the capacity at 72.5 degrees through 2008, which will enhance
its local channel service offerings in the United States. Customers will
access local channel service from 72.5 degrees with the addition of a
second 18-inch
satellite dish at their home or service location. Telesat
Canada will assume telemetry, tacking and control (TT&C) of DIRECTV 5 after
an interim period. Upon moving DIRECTV 5 to 72.5 degrees and the successful
launch of the DIRECTV 7S spot-beam satellite later this quarter to the
119-degree West Longitude orbital slot, DIRECTV will have sufficient
capacity to offer local broadcast channels in a minimum of 130 markets by
year-end.
Internet -
http://www.telesat.com
MURDOCH COULD GIVE AWAY SET-TOP BOXES
News Corp. chairman Rupert Murdoch said he might give away some digital
video recorder set-top boxes to lure cable subscribers to News Corp.'s
newly acquired satellite TV provider DirecTV, according to an interview in
Business Week magazine. Last month, the Federal Communications Commission
and antitrust enforcers approved the $6.78 billion plan by News Corp. to
gain control of DirecTV, the No. 1 U.S. satellite television provider with
12 million subscribers. In an interview in the latest issue of Business
Week magazine, Murdoch was asked whether he would give away set-top boxes
to lure cable subscribers. "(EchoStar Communications CEO) Charlie Ergen is
already giving away some of his boxes," the magazine quoted Murdoch as
saying. "We will be matching him. We can't have him out there with a
financially superior offering." DirecTV currently offers the boxes for $99. A
ECHOSTAR AND VIACOM TALKING OVER CBS CARRIAGE
Entertainment giant Viacom Inc. and satellite TV firm EchoStar
Communications said on January 8 that they have extended difficult talks
about a new network carriage agreement until the middle of next week amid
apparent differences on price and the channels that should be included in
the deal. EchoStar also said that while negotiations continued, it has
asked the U.S. District Court in San Francisco to hold in abeyance a
lawsuit it filed a day earlier. EchoStar's suit seeks to block Viacom from
withdrawing rebroadcast rights for its CBS-owned stations. The suit says
Viacom has insisted that any deal for rights to its CBS affiliates must
include arrangements for Viacom-owned cable networks such as a new
offering, Nicktoons. By making that link, Viacom's actions amounted to an
illegal restraint on trade, the lawsuit said. A spokeswoman for Viacom
dismissed that claim. "The suit is baseless and nothing more than an
attempt to strong-arm us in the negotiations," said Susan Duffy of Viacom.
The two sides have been negotiating since September to renew a three-year
deal that expired on December 31. In its lawsuit, EchoStar said it had
opposed Viacom's demands that it carry the new Nicktoons channel and extend
contracts for three other cable networks -- country music channel CMT,
TVLand and Spike TV -- from 2005 to 2008. Viacom also wanted to include the
children's channel Noggin in one of EchoStar's most popular programming
packages, the satellite broadcaster said. EchoStar has argued that it would
suffer an "irreparable loss" if 1.6 million of its subscribers in cities
such as San Francisco lost access to popular CBS programming because of the
contract dispute.
DIRECTV ADDS 405,000 NEW SUBSCRIBERS
DirecTV, Inc., a unit of Hughes Electronics Corporation, announced on
January 8 that its DirecTV digital multichannel television service had its
best quarterly performance in company history, adding 861,000
owned-and-operated customers in the fourth quarter of 2003. After
accounting for quarterly churn, which was a monthly average of 1.45 per
cent, DirecTV added 405,000 new owned-and-operated customers in the quarter
- a 39 per cent increase over the fourth quarter of 2002. For the full
year, DirecTV added a record 3,006,000 gross owned-and-operated customers,
and after accounting for full-year churn of a monthly average of 1.5 per
cent, 1,187,000 new customers activated DirecTV service in 2003. As of
December 31, 2003, DIRECTV had more than 12.2 million customers, including
customers in National Rural Telecommunications Cooperative territories.
Complete DIRECTV full-year and fourth-quarter financial results will be
provided when HUGHES announces its fourth-quarter and full-year earnings
next month.
FOX KIDS TO BECOME JETIX
Three years on from Disney Corp's takeover of the Fox Family group, Fox
Kids channels worldwide are on the road to a new identity under the new
Jetix brand. The new identity brings together the ABC Cable networks and
Fox Kids Europe and Latin America in a joint programming alliance and will
see the roll-out of Jetix branded blocks on kids channels in the US,
Europe, Middle East and Latin America. The blocks will be phased in from
next month, starting with a morning slot on ABC Family and a primetime
window on Toon Disney in the US. Jetix blocks will reach Fox Kids channels
in Europe and the Middle East in April, with a full switch over to the
Jetix identity from autumn this year. Fox Kids channels in Latin America
will undergo the name change in mid-2004. It is anticipated that the Jetix
content will reach into 137 million households in 77 countries. The Jetix
library will include original, acquired and library action-adventure
series, such as Power Rangers. Fox Kids was added to Disney's portfolio in
July 2001, after a $5.3 billion deal with News Corp and Saban
Entertainment. The agreement saw the Walt Disney Company take 100% of Fox
Family, 75.7% of Fox Kids Europe, along with Fox Kids' Lat-Am networks
which totalled 10 million subscribers at the time.
PBS GETS GRANT FOR PUBLIC AFFAIRS CHANNEL
PBS said on January 8 it had received a grant to plan a new cable network
for public affairs programming, which it hopes to start early in 2005.
Tentatively called PBS Public Square, it will mostly air reruns of PBS
programs such as "NewsHour with Jim Lehrer," "NOW with Bill Moyers" and
talk shows with Charlie Rose and Tavis Smiley. A $200,000 grant from the
journalism-oriented John S. and James L. Knight Foundation has set the plan
in motion. PBS President Pat Mitchell said the Public Broadcasting Service
will probably need more than $25 million to get PBS Public Square
operating. PBS already operates two offshoots seen on satellite systems or
digital cable: PBS Kids offers children's programming and the lesser-seen
PBS You provides adult education programs.
Internet -
http://www.pbs.org
ESPN LAUNCHES SPANISH LANGUAGE CABLE NETWORK
ESPN Inc. launched its Spanish-language cable network on January 7, a
project it hopes will help it capture a larger share of one of the nation's
fastest-growing populations. ESPN Deportes, a 24-hour sports network, will
focus on events and personalities of interest to Latin Americans. It kicked
off on January 7 with a special program introducing the network followed by
live coverage of a Dallas Mavericks National Basketball Association game.
The new network will only be available in a limited number of markets at
first, including Los Angeles, Miami, San Antonio and Austin, Texas, and a
handful of communities in New Mexico and Pennsylvania, ESPN spokesman Chris
Bellitti said, adding he expects the network to be available in much of the
nation within six weeks. Local cable companies will be the ones deciding
whether to offer the new network, and on which cable packages. Negotiations
are still pending with the nation's two satellite TV providers, he said.
ESPN Deportes plans to air more than 200 live events in 2004, including
NBA, National Football League and Major League Baseball games. It will also
showcase minor league baseball from Mexico's Pacific League, UEFA Champions
League football matches and a regular diet of professional boxing telecasts.
DIRECTV TO ADD HD PROGRAMMING
DirecTV, Inc. announced on January 8 that it plans to offer CBS-HD
programming - including hit primetime series "CSI: Crime Scene
Investigation" and "Everybody Loves Raymond," as well as the February 1
broadcast of Super Bowl XXXVIII - in the coming weeks. A similar agreement
with FOX is expected to be reached in the next several weeks. The CBS-HD
programming, from WCBS in New York and KCBS in Los Angeles, will be
available to eligible DirecTV customers in markets where CBS owns and
operates stations. Similarly, FOX programming is also expected to be
offered to customers in FOX O&O markets. Customers who subscribe to the
DirecTV local channels package in CBS and/or FOX O&O markets will receive
this programming free of charge. Customers in the Pacific and Mountain time
zones will receive the west coast feeds and those in the Central and
Eastern times zones will receive the east coast feeds. DIRECTV currently
offers seven HD channels including its HD package, which features ESPN HD,
Discovery HD Theater, HDNet and HDNet Movies for $10.99 per month. DIRECTV
HD customers are also receiving HBO® HDTV and SHOWTIME HDTV as part of
their premium packages, as well as HD Pay Per View movies.
VOOM OFFERS MORE HD THAN OTHER PROVIDERS
Rainbow DBS, Cablevision Systems Corporation's satellite division, on
January 8 announced four additions to VOOM's HD lineup - NFL Network,
Playboy TV, STARZ! HD East and STARZ! HD West - bringing its total to 30 HD
channels. In addition, Rainbow DBS introduces the VOOM HD Home Media
Network, a groundbreaking whole house solution designed specifically for HD
programming, which is expected to roll out this summer. In addition to its
existing HD channels - which include Discovery HD Theater, Showtime East
and West and The Movie Channel - VOOM is continuing to team up with leading
HD programmers. The following HD offerings will be added throughout the
coming months: NFL Network, Playboy TV, STARZ! HD East and STARZ! HD West,
as well as HD Cinema 10 - ten different film channels from Rainbow Media
that will offer the largest selection of HD movies. The latest advancement
from Rainbow DBS will be the rollout of its VOOM HD Home Media Network,
expected this summer. Built specifically for VOOM this groundbreaking
service will feature an HD digital video recorder (DVR) that can record and
playback HD video programming in its intended format.
L A T I N A M E R I C A
COURT APPROVES DIRECTV LATIN AMERICA DISCLOSURE STATEMENT
DirecTV Latin America on January 9 announced that the U.S. Bankruptcy Court
in Wilmington, Delaware has approved the Disclosure Statement filed in
connection with the Company's proposed Plan of Reorganization. With this
approval, DirecTV Latin America remains on schedule to emerge from the
Chapter 11 process by the end of February 2004. As previously reported, the
Company filed for Chapter 11 in March 2003 in order to aggressively address
its financial and operational challenges. The filing applied only to the
U.S. entity and did not include any of the operating companies in Latin
America and the Caribbean, which have continued regular operations.
A S I A & P A C I F I C
AUSTRALIA
PERRINS JOINS GLOBAL TV IN RACING BID
The former managing director of surfwear retailer Billabong, Matthew
Perrin, and his brothers are rumoured to have joined forces with Global
Television in their attempt to launch a rival broadcaster of thoroughbred
racing. Rights to broadcast racing have been held by TAB Ltd's Sky Channel
for almost 20 years. Global Television, which is owned by Television and
Media Services, is a sub-contractor telecasting sports and special events
to free-to-air television stations and pay TV channels, including Foxtel
and OptusTV. The Perrins are believed to be one of four parties interested
in bidding for the NSW and Victorian racing industries' media rights. The
others include Sky Channel, English television production house Ten Ten
Digital and Telstra. Rival bidders for the rights to broadcast Australian
racing surfaced after the Australian Jockey Club and Sydney Turf Club
agreed to pool their media rights with Racing Victoria. The racing clubs
hope this will strengthen their bargaining power with Sky Channel. Sky
Channel's distribution agreement with the AJC and STC expires in early
March, while its contract with Racing Victoria still has 12 months to run.
CHINA - HONG KONG
SHANGAI CITIZENS IGNORE SATELLITE DISH BAN
Although most residential buildings in Shanghai have been banned from
installing satellite dishes since 1993, the dishes continue to pop up all
over the city, according to a report by the Xinhua news agency. Local
residents often receive flyers in their mailboxes, advertising
installation
of the dishes with prices ranging from 3,000 yuan (US$361) to 20,000 yuan
(US$2,419.26). The fliers guarantee users will have access to more than 100
overseas TV channels. The State Council issued a decree in 1993 saying only
hotels, media outlets, and apartment buildings housing foreigners are
allowed to use satellite dishes. Producing, selling or installing satellite
television-receiving equipment without a permit is banned, and violators
will face a fine of up to 5,000 yuan (US$604.81).
I-CABLE TO LAUNCH DIGITAL TV AHEAD OF SCHEDULE
Hong Kong's dominant pay-TV operator, i-Cable Communications, will complete
the digitalisation of its network in May, one year ahead of schedule,
according to a report by the South China Morning Post. The early completion
- due to a reduction in the cost of set-top boxes from $800 to $600 - would
help the pay-TV operator cut its estimated expenditure of $450 million for
the network upgrade, cable subscription services executive director Eric Lo
said. But he did not disclose how much i-Cable would save with the early
completion. Digitalisation supports the compression of frequencies, thus
increasing the capacity of channels per frequency band from one to six or
more. With the allocation of 20 frequency bands by the government, i-Cable
can now provide up to 120 television channels. I-Cable has doubled the
number of its channels to more than 70 over the past year. I-Cable will
switch off most of its analogue broadcasting network from June 1, and on
January 13 will relaunch its programme line-up by grouping channels under
eight blocks in accordance with their genre. It also plans to provide data
services such as football betting, stock information and interactive gaming
on the new platform.
GLOBAL CHANNELS FOR PAY-TV PLATFORM
Viewers of Hong Kong's new direct-to-home pay-TV operation, exTV, will
benefit from international channels including BBC World, Bloomberg, CNBC
Asia and Nickelodeon Asia. exTV is due on the air in February, joining
another five pay-TV platforms available in the SAR of
Hong Kong.
TAIWANESE TV CHANNELS SWITCHED OFF CABLE
China is continuing to shut down Taiwanese TV channels carried on cable
systems as tensions between Beijing and Taipei continue to simmer over
political differences. Dongsen TV, owned by Taiwan's powerful media company
Eastern Multimedia Group, has been pulled off a number of housing complexes
serviced by cable TV systems and satellite master antenna TV in and around
Beijing by state security officials in the last three months. Other foreign
channels that have been switched off during the raids have since returned
to the air while Dongsen remains blacked out. China has issued licences to
more than 30 foreign TV channel providers to distribute their channels,
although all are limited to specified cable TV systems, or operators
serving housing compounds for foreigners or hotels. Taiwan-originated
channels are among those in the so-called grey market that have managed to
slip on air because of lax policing. But during the periodic crackdowns on
unlicensed channel reception, Taiwanese channels have been particularly
targeted. Eastern Multimedia had two applications to distribute its
channels to Chinese cable systems rejected in September 2003, although it
continues to supply programmes to Chinese terrestrials and also claims to
have 200,000 subscribers in China.
INDIA
ZEE TV TO LAUNCH RELIGIOUS CHANNEL
The Subhash Chandra-promoted Zee Telefilms wants to add a religious channel
to the stable. The proposed religious channel, to be called Jaagaran, is
slated for a launch some time this month via Asiasat 3S and INSAT
satellites. The stable already boasts of about 15 channel brands, including
the ones that are part of the DTH [direct to home] package.
STAR NEWS GETS INDIAN RIGHTS
Star News has been given permission to uplink from India, bringing the
channel to viewers of cable systems and direct-to-home installations across
the sub-continent. The Indian government had initially refused to give
permission for the channel to be broadcast but has now relented, apparently
changing the rules to allow the News Corporation-owned service to begin
operations.
CABLE OPERATORS WON'T RELAY NEWS CHANNELS
Cable TV operators have turned down the request of the state government to
relay news channels as well as other channels for which they do not have to
pay any charge, according to The Times of India. PRD secretary A K Biswas
is reported to have assured a delegation of the Patna Cable TV Operators'
Association that he has written to the Union ministry of information and
broadcasting about the blackout by cable TV operators due to the hike in
the rates of pay channels. However, a government pressnote said Biswas told
the delegation that not showing the three national channels of Doordarshan
was a violation of the Cable Television Network Regulation Act. Association
president Amit Prakash said they were forced to effect a blackout on TV
screens in the state capital to protest against the hike in the
subscription rates of pay channels and the imposition of an entertainment
tax of Rs 50 per month by the Bihar government.
IRAQ
HARRIS GETS IRAQI MEDIA NETWORK CONTRACT
Harris Corporation on January 9 announced that it has been awarded a
one-year, $96 million contract by The Defense Contracting
Command-Washington (DCC-W), on behalf of the Coalition Provisional
Authority (CPA) currently governing Iraq, for developing an existing but
antiquated media network into a modern media organization for the Iraqi
people. The Iraqi Media Network (IMN) program includes equipment,
operation, training, and provisioning of programming for national radio and
television networks and a national newspaper with operating locations in
Baghdad and more than 30 other locations throughout the country. Two
additional six-month contract options could increase the total value of the
program to nearly $165 million. The goal of the IMN contract is to create
from the existing organization a first class, integrated media network that
will include two national radio channels, two national television channels,
and a national newspaper, "Al Sabah." Harris will lead this project and
provide all of the necessary transmitters, integration and automation
broadcast equipment with support from two very important local teammates:
The Lebanese Broadcasting Corporation International (LBCI), a premier
Middle Eastern media network, and Al Fawares, a Kuwaiti company with Iraqi
ownership. LBCI is responsible for training and content programming for the
two radio channels and two television channels-one for news and one for
entertainment. All four channels will be terrestrial and the all-news
television channel will additionally be available by satellite. Al Fawares
will assist in expanding the newspaper into national status based on the
company's experience with Al Watan in Kuwait, and also will provide
security, logistics and construction services.
Internet -
http://www.harris.com
ISRAEL
YES HAS 415,000 SUBSCRIBERS
The Yes satellite company signed up 7,000 subscribers in the fourth quarter
of 2003 to end the year with 415,000. The multi-channel television sector
has for quite some time been one of fierce competition, although
technically it's a duopoly with Yes, half-owned by the domestic phone
monopoly Bezeq, competing against the long-established cable companies,
Matav, Tevel and Golden Channels (Arutzei Zahav), each of which are
regional monopolies. Former Yes CEO Shlomo Liran believes Yes will balance
its books only when it has reached 500,000-550,000 subscribers. YES's
fourth quarter was NIS 233 million, 7% more than in the preceding quarter,
according to YES CEO Ofer Bloch. The company's revenue grew 5% in the
second quarter. Bloch said that the cable companies' capacity to provide a
service package including TV, high-speed Internet, and telephony in the
near future constituted "a real threat to YES, which will have to find ways
of dealing with it."
MALAYSIA
TV3 AND 8TV BUY BUENA VISTA PROGRAMMING
Malaysian free-to-air networks TV3 and 8TV have signed a multi-year
programme and feature film deal with Buena Vista International
Television*Asia Pacific, which brings reality show The Family to local
audiences for the first time. The deal, signed by TV3 Malaysia's holding
company Media Prima Berhad, includes features such as Pearl Harbor and
Unbreakable, along with TV series Alias, Scrubs, Extreme Makeover, My Wife
& Kids and Hope & Faith. Under the new agreement, TV3 viewers will also be
able to tune into reality format The Family, which follows one family's
attempts to win a million dollar prize. Younger viewers will be able to
watch an additional weekend half-hour animation block titled Disney Time.
This new window joins a weekly Disney club and two existing branded blocks.
8TV STARTS BROADCASTING
Malaysia's newest free-to-air terrestrial television station, 8TV, started
transmitting on January 8. The channel will be seen initially on the west
coast of peninsular Malaysia, the country's main population belt. 8TV is
owned by Media Prima Berhad, which also owns another terrestrial station,
TV3, and the New Straits Times newspaper. The new station's chief operating
officer, Ahmad Izham Omar, said its target audience would be mainly young
urban people and the Chinese community. 8TV's programmes will include music
shows, Chinese-language variety programmes and an English-language prime
time news bulletin aimed at younger viewers. 8TV is Malaysia's fourth
private free-to-air station.
PILAT GLOBAL MEDIA GETS ASTRO CONTRACT
Pilat Global Media, which provides business management software to has
announced a new contract for the supply of IBMS (Integrated Broadcast
Management System) to Measat Broadcast Network Systems of Malaysia, known
by its trade name "Astro". The contract, which includes licenses and
implementation and support services, is worth $1.7 million. Work on the
project began in October 2003, under an interim consultancy agreement, to
enable go-live in the first quarter of 2004. Pilat said that Astro was the
seventh pay-TV platform to join its client-base. IBMS is intended to
streamline content acquisition, program scheduling and media preparations
for over 40 subscription channels as well as on demand and interactive
services and emerging advertising sales operations. As part of the
implementation, it will be integrated with the conditional access system of
Canal+. According to Pilat, Astro, a wholly owned subsidiary of Astro All
Asia Networks, is the largest multi-channel TV platform outside Japan in
Asia, and has one million subscribers
NEW ZEALAND
MTS TO START BROADCASTING IN MARCH
The Minister of Maori Affairs, Parekura Horomia, is promising that the
Maori Television Service will begin its full broadcasting schedule in
March. Last month the channel began broadcasting a promotional trailer that
repeats every half hour. The Maori Television Service says it expects to
announce the date it will officially start full broadcasts shortly. The
publicly-funded service was founded under an Act of parliament last year
with the aim of helping revitalise the Maori language and culture.
THE PHILIPINES
ABS-CBN EXPECTS GOOD YEAR
ABS-CBN Broadcasting Corp. is optimistic that 2004 will be another banner
year for the company in terms of profitability and market share. ABS-CBN
officials said profits this year would be in line with revenue growth, with
international operations and advertising revenues as the main drivers of
growth. For 2003, the company expects profits to hit the P1-billion mark.
International operations currently account for 15 per cent of the company's
total revenues. ABS-CBN Global, whose subscribers grew to 176,830 worldwide
as of end-September last year, is expected to post another double-digit
growth, ABS-CBN senior vice-president for international operations Rene
Encarnacion said. With a strong operating income and a decline in interest
expense, ABS-CBN posted a net profit of P888.83 million in the first nine
months of 2003, compared with only P65 million the same period a year
earlier. ABS-CBN Global's net sales, which accounted for 70 per cent of
total net sales and services, increased by 38 per cent to P1.92 billion due
to an increase in direct-to-home fees from $20 to $23 per month with the
addition of PinoyCentral TV to its channel line-up. Set to be launched this
year is The Filipino Channel (TFC) in Milan, Italy, which is the base of
operations of ABS-CBN in Europe. TFC will be commercially available via
direct-to-home (DTH) satellite service.
SOUTH KOREA
GOVERNMENT PUSHES AHEAD WITH US DIGITAL TV STANDARD
Putting an end to mounting disputes over the government's preferred digital
TV transmission format, the top information official reaffirmed the
government's determination to use the U.S. standard instead of the European
one. Speaking on January 9, Information-Communication Minister, Chin Dae-je
said: "For the sake of policy consistency, we will maintain the U.S.
standard. We must consider the huge cost in of switching over to the
European system." Chin added the government cannot ignore a number of
consumers who snapped up digital TVs, customized to the U.S. standard, and
local digital TV makers, which invested large amounts of money following
the U.S. technology in line with government's policy. South Korea selected
the U.S. system in 1997 and pushed for the commercial launch of digital
broadcasting four year later in Seoul. The services were supposed to expand
to the provincial cities starting this year. However, the government put it
off indefinitely under the pressure of local broadcasters, which favor the
European standard.
THAILAND
MCOT JOINS ASIAVISION
The Mass Communication Organization of Thailand, MCOT, has joined the ABU's
daily news exchange, Asiavision. The move brings AVN's membership to 13. It
is the first time a
Thai broadcaster has joined the news exchange. MCOT
operates Thailand's TV Channel 9, two radio networks and the Thai News
Agency. Its membership of Asiavision took effect on January 1. Asiavision
now has members in Bangladesh, Brunei, the People's Republic of China,
India, Indonesia, the Islamic Republic of Iran, Japan, Malaysia, Nepal,
Pakistan, Singapore, Sri Lanka and Thailand. Members exchange news material
by satellite every day.
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