TELE SATELLITE NEWS - Number 03/2004 - 18 January 2004 - A w

[Sadoun]

TELE SATELLITE NEWS - Number 03/2004 - 18 January 2004 - A weekly roundup of global TV news sponsored by TELE-satellite International
Editor: Branislav Pekic

* Issue 12-01 of Tele Satellite International magazine is out now * More details at http://sadoun.com/Sat/Products/Acces...-Satellite.htm

E U R O P E


HOLLYWOOD STUDIOS MUST REWRITE PAY-TV CONTRACTS Hollywood studios will be asked within weeks to rewrite their contracts with European pay-TV operations or face stinging fines, according to European Commission insiders. Sources within the EC - the European Union's antitrust authority - said on January 13 that the studios would be sent a formal "statement of objections" shortly, outlining how the contracts break EU law. Sources said the EC's statement will say the studios have colluded to set prices and terms for movie rights distributed in the EU. The studios are alleged to have insisted on a "most favored nation" clause in the contracts that require pay TV companies to offer the same preferential treatment to all movie studios. The likelihood of EU action against the studios follows a lengthy antitrust probe into Hollywood's licensing deals with Europe's $45.5 billion pay-TV operations.

CROATIA

NOVA TV UP FOR SALE
The country's only national private TV channel, Nova TV, has started sell off talks with several global media firms, its chief executive Ivan Blazicko said on January 14. "Talks have started with some of the world's leading media corporations," Blazicko told Reuters, declining to name any potential bidders or give possible deadlines or other details of the deal.
Rupert Murdoch's News Corp. and U.S. businessman Ronald Lauder's Central European Media Enterprises are widely believed to be among the parties interested in Nova TV. Both companies unsuccessfully ran in the race for state television's third channel, which was sold to Germany's RTL last September. Nova TV started in late 2000 and its ratings rose significantly last year after it launched a music contest for local "wannabe" singers.

FINLAND

CANAL DIGITAL SIGNS DTT AGREEMENT
The pay-TV company CANAL+ and the television distribution company Canal Digital have, together with their Finnish subsidiaries and the Finnish digital terrestrial network operator Digita OY, entered into an agreement which will give the viewers pay-TV content in Finland's digital terrestrial television network. CANAL+ will provide its three television channels:
CANAL+, CANAL+ Gul and CANAL+ Bla. Finland's digital terrestrial
CANAL+television
(DTT) was launched in the autumn of 2001. So far, only non-pay channels have been provided. Canal Digital will be responsible for the access control system and sales and marketing operations, among other things.
Today, around 300,000 Finnish households have obtained a decoder which gives access to the digital terrestrial network. It is expected that the Finnish digital terrestrial television will quickly become a major distribution channel for both television and other digital services. More than 2.6 million Nordic households receive, directly or indirectly, television signals from Canal Digital, which has annual sales of around NOK
3.5 billion. Canal Digital distributes 80 television channels and 20 music channels in addition to games and interactive services.

FRANCE

M6 CONSIDERS TIE-UP WITH NEWSPAPER
M6 Metropole Television is studying a possible partnership with the French free-distribution newspaper 20 Minutes in a move that would intensify rivalry with fellow broadcaster TF1. Tying up with 20 Minutes would extend M6's reach in the French distribution advertising market and help both the TV station and the newspaper pursue plans to expand into regional areas beyond Paris. Any move by M6 would come just four months after rival broadcaster TF1 said it would buy a 34.3% stake in Metro France, publisher of free newspaper Metro and 20 Minutes' closest competitor. If current talks are successful, M6 would take a stake in 20 Minutes via a new capital increase.

RFO TO BE BROUGHT UNDER WING OF FRANCE TELEVISIONS On January 7, the French government officially launched the process of integration of RFO (France Overseas Network) with the state-owned group France Televisions. The bill turning RFO into a fully-fledged component of France Televisions on the same footing with France 2, France 3 and France 5, will be submitted to the National Assembly in February, and Culture and Communications Minister Jean-Jacques Aillagon said that the process of integration should take place by the end of 2004. According to the government, RFO's integration in the state-owned group is aimed at sustaining its development. It should enable RFO to ensure greater observance of the territorial continuity of national broadcasts, and to produce more local programmes, while the other networks of the France Televisions group, both national and theme-based, would be able to give a picture of life in the overseas territories.

BROADCAST REGULATOR SETS DATE FOR DIGITAL TV LAUNCH French broadcast regulator CSA (Conseil superior de l'audiovisuel) has fixed the date for the launch of terrestrial digital television between 1 December 2004 and 31 March 2005. The precise date of start of transmissions will be announced six months in advance, with the Council deciding on a coverage target of approximately 60 per cent of the population by the end of 2005 and a final objective of reaching 85 per cent. Viewers will be able to receive about fifteen national television channels, as well as local programmes, with the possibility of another fifteen subscription stations.
The CSA has published a list of 88 planned transmitter sites on its web site at www.csa.fr/pdf/frequences_tnt_191203.pdf.

M6 TO EXERCISE REFUSAL RIGHT ON PARIS PREMIERE
M6 Metropole Television has told French water and energy conglomerate Suez it will buy the 89% stake it doesn't already own in cable TV channel Paris Premiere, Suez said on January 16. M6 has decided to exercise pre-emptive rights over the stake after Suez made an agreement to sell the shares to AB Group. M6, which already owns close to 11% in Paris Premiere, will pay €25 million for the Suez stake. In a statement, Suez said the sale of the cable TV channel "marks another stage" in the group's efforts to withdraw from the media sector and concentrate on its core energy and water businesses.
Paris Premiere had an operating loss of €7 million in 2002 on revenue of
€32 million. Suez - which also owns 37% of M6 - had originally sought around €100 million for the channel, but offers for Paris Premiere didn't exceed €40 million.

GERMANY

KABEL DEUTSCHLAND OPTS FOR PACE DIGITAL BOXES Pace Micro Technology was selected as the set-top box launch partner for Deutsche Kabel Service GmbH (DKS), a subsidiary company of Kabel Deutschland GmbH (KDG), Germany's largest cable network operator, as it prepares to roll-out digital cable TV services. The company will use Pace's DC210 with Nagravision Conditional Access (CA) and HTML browser to provide pay-TV programmes and enhanced digital TV services for the first time. KDG, which currently has over 10 million analogue subscribers will launch its first digital TV services in spring 2004.

KIRCH FILES SUIT AGAINS LIBERTY MEDIA AND DEUTSCHE BANK Bankrupt German mogul Leo Kirch filed a lawsuit against Liberty Media and Deutsche Bank in New York on January 14, accusing them of conspiring to destroy his vast media empire. Last month, a court in Munich upheld Kirch's lawsuit against Deutsche Bank for its role in the bankruptcy of Kirch Media in 2002. That decision could lead to damages of up to €6 billion for Kirch.
In the lawsuit, filed in New York's state Supreme Court, Kirch charges that Liberty and chief executive John Malone, plus Deutsche Bank and its chairman Rolf Breuer, conspired to derail Kirch's IPO plans. At the time, Liberty was seeking to buy Deutsche Telekom's cable holdings, with access to 10 million households, nearly 60% of all German cable homes. Kirch lawyers allege that Malone and Liberty Media conspired with Deutsche Bank in hopes that a collapse of the Kirch Group would help them gain control over the lucrative cable market. Breuer has denied meeting Malone or even speaking with him. Deutsche Bank sources dismissed Kirch's lawsuit as a maneuver to take his case against Deutsche Bank to U.S. courts.

HUNGARY

NO HUNGARIAN FOOTBALL ON MTV
The Hungarian National Television's (MTV) advisory board did not approve the contract between MTV's sport section, Telesport and the Hungarian Football League (MLL). The agreement would have secured the broadcasting rights of Hungarian championship football matches for HUF 450 million per year for MTV's Telesport. Now, MTV is only willing to pay for the rights if MLL announces a tender where the value broadcasting costs are determined by market competition.

NEW TV CHANNELS TO START BROADCASTING
Competition is stiffening on the Hungarian media market, as a number of new television channels have announced intentions to start broadcasting in Hungary. Although negotiations are still in progress between TV channels such as AXN, m+, f+ and major cable operators, it is almost certain that new programs will appear on screen in the near future. At the moment, for those not satisfied with MTV (Hungarian National Television), RTL Klub and
TV2 (the two biggest commercial TV stations in Hungary), available throughout the country, the most obvious choice is to access a local cable operator providing a wider range of television programs. This is usually between 25 and 50 channels depending on the technical capabilities of the local network. But there are two other possibilities for people who live in areas where cable programs are not available, or for others who want multi-channel access instead of cable programs: Antenna Hungária's microwave service (AM Micro), available in Budapest and a 20-kilometer zone around the city, or UPC Direct, the satellite service of one of Hungary's major cable operator, UPC. Hungary has 3.8 million households, of which 3.6 million have at least one TV set. Approximately 2 million of these homes have multi-channel access, but the number of non-cable reception is under 200,000, with AM Micro reporting 90,000 and UPC Direct with 85,000. Humor1, an entertainment channel owned by Sport1, is already on air as one of the UPC channels. The 16-hour daily program schedule includes such international hits as the Emmy award-winning Cheers, Taxi, Men Behaving Badly, It's a Man's World and Casa Vianello, as well as Hungarian evergreens and candid camera series. The greatest competitor to Humor1 could well be another newcomer to the market, namely m+, which, to a certain extent will rely on programs bought from and already shown on RTL Klub. Luxembourg-based Opticorp S.A owns IKO Romania, which is behind m+ and non-stop movie channel f+. Opticorp is also behind Hungarian IKO Production Kft, which has a 6% share in Magyar RTL. The f+ channel shows a wide range of programs including action films, sci-fi, thrillers and comedies, while m+ concentrates on fun and entertainment with Fawlty Towers, Mr. Bean and others. Sony Pictures Television International (SPTI) announced in October the official launch of its international adventure channel, AXN. Aired in 40 countries worldwide, the channel will be simultaneously introduced in six Central-European countries: Poland, the Czech Republic, Slovakia, Romania, Bulgaria and Hungary. With partners such as Warner Brothers, Disney and HBO, AXN intends to bring together all the essential elements of an adventure channel: action series, films, adventure programming, reality and alternative sports. Meanwhile, HBO has announced the introduction of a supplementary channel, called HBO2, which shows the same films as HBO, but in a different time schedule, functioning similarly to a multiplex movie.

THE NETHERLANDS

TV VIEWING ON THE INCREASE
The market share of the three public channels dipped from 35.9 % in 2002 to 34.4% in 2003. Three-channel commercial net RTL Nederland (formerly known as Holland Media Group) posted an overall market share of 26.2%, up from 25.3% a year earlier. SBS Broadcasting's three-channel commercial subsidiary in Holland pushed its 2002 market share from 16.3 % to 16.8% in 2003. Overall, viewers over 50 watched TV the most, some 233 minutes a day, while 13- to 19-year-olds also increased viewing slightly.

RUSSIA

CHANNEL ONE BUYS FROM BUENA VISTA
Russian state broadcaster Channel One has acquired a range of movies, dramas and kids' series as part of a package deal with Buena Vista International Television (BVITV). In feature films, Channel One has acquired, among others, Pirates of the Caribbean: The Curse of the Black Pearl, Calendar Girls, Bringing Down the House and Signs. And on the kids'
front, Channel One has picked up additional programming for the branded Disney Club block. The deal also includes live-action series and TV movies.

SWEDEN

MTG TO LAUNCH TWO SPORTS CHANNELS
Swedish-based international media company Modern Times Group is planning to launch two new sports channels on February 1 and rebrand its existing Viasat Sport Channel. MTG's broadcast arm, Viasat will air three dedicated sports channels - Viasat Sport 1, 2 and 3 - broadening the choice for viewers. Viasat has Scandinavia's most comprehensive portfolio of sports rights -- ranging from the Ice Hockey World Championships, the UEFA Champions League, the NFL, the World Cup in Ice Hockey and Handball, and the Wimbledon and US Open grand slam tennis championships, to comprehensive coverage of European Basketball, NASCAR motor racing, the Swedish Football Premier League, the English League Cup, and Golf's World Golf Championship, Ryder Cup, British Open, US Open and European and American PGA tours. MTG has operations in more than 30 countries and principal broadcasting businesses in Scandinavia, the Baltic States, Hungary and Russia. MTG's Viasat channels reach over 50 million people in 14 countries.

UNITED KINGDOM

GRANADA APPROVES MERGER WITH CARLTON
Shareholders of U.K. broadcasters Carlton and Granada voted on January 13 in separate meetings in London for the dissolution of both companies, the final official acts by the two TV networks before their reconstitution February 2 as ITV Plc. The meeting of Carlton shareholders saw the rubber-stamping of the £5.5 billion merger of the ITV giants.

LOW VIEWING FIGURES FOR BBC DIGITAL TV CHANNELS Some of the BBC's digital channels were so little-watched last year that 55 days' worth of programmes were officially viewed by no-one. New statistics show that 1,328 hours of television scored zero on the ratings scale. BBC News 24 came out worst, recording 472 hours of "unwatched" programming, although much of that was in the early hours of the morning. CBBC, aimed at school-age children, was next, with 314 hours. The figures are from the Broadcasters' Audience Research Board (BARB), which gives a zero rating when audiences are too low to be measured. The news comes despite the fact that more than two million people now have Freeview, which provides access to the BBC's digital channels for a one-off payment of less than £100.

HORSERACING DEAL AT RISK
Horseracing's £307 million deal with the AttheRaces consortium, which includes BSkyB, Channel 4 and Arena Leisure, is in doubt after a dispute over betting revenues that could trigger a financial collapse at small racecourses. The consortium can demand to renegotiate its deal because of contractual small print that allowed it to pay less if revenues failed to meet certain targets. AttheRaces is widely thought to have overpaid for the 10-year media rights deal it struck with the Racecourse Association, which represents 49 of the 59 racecourses around Britain, in summer 2001. The consortium uses the government-regulated Tote betting service for all its interactive gambling and gets a cut of its profit. But because the Tote has deliberately reduced its profit margin to encourage more people to bet, AttheRaces revenues have dropped below agreed levels. The contract states that if AttheRaces' share of Tote revenues drops below 20% for more than 90 consecutive days it has another 90 days to seek compensation from the 49 courses. The 90- day limit was reached on October 24, leaving a second deadline of January 22. Some within the racing industry believe AttheRaces will use the clause to try to substantially reduce the amount it pays the courses. The venture, which operates a interactive horseracing channel, a website and a daily racing show on Channel 4, is unlikely to break even until at least 2006 and analysts remain doubtful whether it will recoup its outlay over the course of its contract.




N O R T H A M E R I C A


UNITED STATES

PLAYJAM ON DISH NETWORK
OpenTV on January 12 announced that its interactive games channel, PlayJam, has launched on EchoStar's Dish Network and is available to over 7 million OpenTV enabled Dish Network subscribers. With the completion of this launch, PlayJam, one of the world's most popular interactive television games channels, is now available to 20 million households worldwide and on over eight cable and satellite networks. Viewers access the PlayJam Channel, along with a wide range of interactive services, from the DISH Home portal. Dish Network subscribers can select from a channel menu of popular games and are able to play and preview the first level of each of the games. If the viewer wishes to access additional game levels, they may subscribe to the service through the Dish Network, for which EchoStar currently charges its subscribers $4.99 a month. A dynamic menu application allows the games on the channel to be updated frequently. As part of its working relationship with EchoStar, OpenTV has also created several other interactive applications for EchoStar subscribers over the past four years,
including: Instant Weather, Bloomberg, News by Reuters, Horoscope, Fantasy Sports, My Scores, Pro Football, College Football, Soccer, College Hoops, and Big League TV (Baseball).

WEALTH NETWORK TO LAUNCH THIS SUMMER
Wealth TV, the first completely high definition broadcast studio in San Diego, is installing an array of Sony high-definition equipment in its new studios. Scheduled to launch in summer 2004, Wealth TV is an entertainment and lifestyle network operated by Herring Broadcasting. The Sony equipment to be used by Wealth TV includes more than $3 million of HD broadcast technology, such as cameras, VTRs, and switchers. Wealth TV is a lifestyles and entertainment network designed to appeal to a broad market demographics, providing a behind the scenes look into how the wealthy achieved, live, and enjoy their success.
Internet - http://www.wealthtv.net

GAME SHOW NETWORK TO BECOME GSN
Game Show Network is changing its name to GSN to reflect its expanded programming slate, which now includes reality shows such as the recently acquired The Mole and Spy TV*and documentaries, including one that explores the history of video games. "As the leading network for interactive game shows, it is natural for us to expand to a variety of game-related programming," said GSN's president and CEO, Rich Cronin. "Since we were already using the name 'GSN' on-air and at gsn.com, and our viewers and the industry also frequently used it, we decided to make GSN our official name, adding the tagline 'The Network for Games.' Our vision is to become the global leader in interactive television games."

IMAGINASIAN TV TO TARGET ASIAN AMERICANS ImaginAsian TV (iaTV), a network catered to the Asian-American population, is set to begin its rollout in August. The channel, geared to the more than
14 million Asian Americans in the U.S., will schedule both acquisitions from Asia as well as original programming, ranging from feature films and drama series to news, game shows, kids' series, sports, documentaries and more. Volume deals have been signed with Japan's TV Asahi, the Vietnam Media Corp., India's Asian News International and Balaji Telefilms; and the China Movie Channel, among others. Negotiations are underway with MSOs across the country, and the network has inked an affiliation agreement with Equity Broadcasting Corp., a broadcast station group, giving it access to more than 1.6 million households in Las Vegas, Ventura and Denver. In addition, ImaginAsian TV has signed a deal with broadband provider Silk Road, and plans are in the works to rollout video-on-demand content.

MTV REBRANDS COLLEGE TELEVISION NETWORK
MTV: Music Television's college network will officially relaunch with a new name - mtvU - on January 20. The channel, formally CTN: College Television Network, was acquired by MTV in October 2002. mtvU is dedicated to every aspect of college life and will focus on content including music programming, news, student life features, events, pro-social initiatives and more. In addition to playing university students' favorite artists, mtvU is also committed to playing the videos of up and coming artists who are resonating on the college level, but might not have garnered national exposure yet. Since MTV's acquisition of the college network in October 2002, 20 schools have been added to the family. Broadcasting to over 720 colleges across the country, with a combined enrollment of 5.5 million, mtvU is the largest, most comprehensive television network just for college students. 24hrs a day, 7days a week, mtvU can be seen in the dining areas, fitness centers, student lounges and dorm rooms of campuses throughout the U.S.
Internet - http://www.mtvu.com

NBC PREPARES FOR ATHENS OLYMPICS
Eager for payback on its nearly $800 million 2004 Olympic investment, NBC kicked off its local ad sales campaign last week, touting some 860 hours of blanket coverage of the Athens Games. NBC network is planning to offer up some 225 hours of coverage, including 70 in prime time. But the bulk of coverage will be available on cable, with some 450 total hours, nearly 200 of which will be aired on Bravo and 250 hours on MSNBC. Telemundo will broadcast between 13:00 and 20:00 daily with mostly live coverage and an emphasis on Hispanic sports favorites like football and baseball. Events such as sailing, water polo, equestrian events, archery and tennis will be aired on Bravo. Business news network CNBC, broadcasting 17:00 to 20:00, will cater to a predominantly male audience, featuring sports such as boxing, Greco-Roman wrestling and extensive live coverage of team sports.

NEW PAY TV SERVICE VIA MICROWAVE
A new competitor to cable and satellite television systems takes its first halting steps this week when the Federal Communications Commission starts accepting bids for licenses to beam video and high-speed Internet connections into the nation's homes using a ground-based wireless system similar to cell phones, according to CNN/Money. Experts in the field say that the new system could provide a lower-cost way to bring hundreds of channels of programming, including interactive and high definition television, as well as high speed Internet connections, into homes. That in turn could provide competition needed to put downward pressure on cable and satellite television rates. The common name is terrestrial microwave service or Multichannel Video Distribution and Data Service (MVDDS). It is already in use in some countries without cable or satellite service, such as the United Arab Emirates. The system will use towers, such as television antennas and cell phone towers, to send and receive signals with homes in about a 10-mile radius. Its close proximity eliminates the fraction of a second delay in Internet connections, video on demand or voice communication, which its advocates say make it superior to satellite services. It will use the same part of the spectrum used by satellite television. The FCC insists the system will not interfere with the service of satellite television customers, but the proposal has sparked complaints and a legal challenge from satellite television operators. However, satellite TV operator, EchoStar Communications Corp. is among the leading bidders for the new licenses. The cost to build the systems would be relatively modest - about $500 million to provide national coverage, according to Kirk Kirkpatrick, CEO of MDS America, one of the bidders for licenses. Kirkpatrick says that compares to about $7 billion in equipment costs spent by the two major satellite television operators - News Corp.'s DirecTV and EchoStar's Dish Network.

ECHOSTAR-VIACOM DISPUTE UPDATE
A federal judge on January 16 granted EchoStar a temporary restraining order that will allow its satellite customers in major cities to continue receiving CBS, MTV and other Viacom channels. In a federal lawsuit filed last week, EchoStar Satellite alleged Viacom was illegally trying to force EchoStar to buy its MTV, Nickelodeon and other cable channels at unfair prices in exchange for the right to carry 18 CBS-owned stations in 15 big-city markets. The dispute potentially affects 1.6 million Dish Network customers and could deprive them of the February 1 Super Bowl broadcast, according to the suit. Viacom has called the lawsuit an attempt to strong-arm it in negotiations. The TV markets involved are New York, Los Angeles, Chicago, Philadelphia, San Francisco, Boston, Dallas-Fort Worth, Detroit, Minneapolis, Miami, Denver, Pittsburgh, Baltimore, Salt Lake City and Austin, Texas. Echostar, which owns Dish Network, said in a news release that it was pleased with the judge's order.

TV ONE TARGETS AFRO AMERICANS
Featuring a compelling mix of original and classic entertainment covering a wide array of television genres, TV One, the new network targeting African American adults, will launch on January 19, the Dr. Martin Luther King, Jr.
holiday, to 2.2 million Comcast subscribers. TV One's investors include Radio One, the nation's seventh largest radio broadcasting company and the largest company that primarily targets African American and urban listeners; Comcast Corporation, Constellation Ventures; Syndicated Communications; Pacesetter Capital Group; and Opportunity Capital Partners.
Internet - www.tv-one.tv




L A T I N A M E R I C A


DISNEY CHANNEL BACK ON DIRECTV LATIN AMERICA As of January 15, Disney Channel has rejoined the programming line-up on DirecTV Latin America's basic distribution. Disney Channel will become immediately available to 1.3 million subscribers in the region excluding Puerto Rico and the U.S. Virgin Islands, where the U.S. version of the Disney Channel is already available. Launched in July 2000 for Spanish-speaking Latin America and in 2001 for the Brazilian territory, Disney Channel presents a variety of original and acquired programming, airing 24 hours a day, for kids 2 to 14 years-old and their families.
DirecTV currently reaches approximately 1.5 million customers in the region, in a total of 28 markets. DIRECTV is currently available in:
Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago, Uruguay, Venezuela and several Caribbean island nations.
Internet - http://www.disneylatino.com
http://www.disney.com.br
http://www.disneychannelpack.com
http://www.disneychannelpack.com.br

ARGENTINA

PRAMER AND CANAL 9 REVIEW AGREEMENT
Pramer, a fully-owned subsidiary of Liberty Media that produces and
distributes Spanish- and Portuguese-language content, has renewed its
distribution agreement with Argentinean broadcaster Canal 9 for three more
years. Pramer will be distributing Canal 9 around the world. Pramer
distributes 24 channels in more than 24 countries, reaching a market of
more than 12 million households.




A S I A & P A C I F I C


RAPID EXPANSION FOR DIGITAL TV SERVICES
Tiered services and digital penetration in Asia Pacific are set to expand
rapidly in the next decade, a new research report said on January 13. The
Asia Pacific Cable & Satellite Market (ACSM) 2004 report, released by the
Hong Kong-based research company Media Partners Asia (MPA), projects that
digital cable and satellite subscribers could reach 29.5 million by 2008
and over 54 million by 2015 in the region. MPA estimates total cable and
satellite industry revenues in the region to rise 17% from US$15.9 billion
in 2003 to US$26.8 billion by 2008 and US$37.2 billion by 2015. Japan,
China and India in 2003 were the top contributing markets based on
revenues. It also forecasts tiered service subscribers to grow from last
year's (2003) 9.2 million to 25.3 million by 2008 and 47.8 million by 2015.
Growth in Asia Pacific pay-TV subscribers slowed to 9 per cent last year
and is forecast to slow further as the market matures. The Asia Pacific
region had 178.8 million subscribers for basic cable and satellite
television at the end of last year, but the survey forecast growth to 234
million pay-TV subscribers in the region by 2008 with annual revenue of
US$26.8 billion, for a penetration rate of about 37 per cent of households
with televisions. At the end of 2003, pay-TV had reached about 32 per cent
of households with televisions across the region. Taiwan led with 83 per
cent, followed by South Korea with 73 per cent and India with 54 per cent.
Ranked by subscribers, China led the region with 100 million pay TV
subscribers at the end of last year, followed by India with 47.7 million,
South Korea with 11.9 million and Japan with 8.1 million.

ASIAVISION CELEBRATES 20TH BIRTHDAY
Asiavision, the ABU's daily news exchange, marks its 20th anniversary on
January 16. It was launched on January 16, 1984. The news exchange began
with five members, and several more joined in the course of 1984. Today it
has 13 members, all national broadcasters, who exchange news material by
satellite every day. The newest member is the Mass Communication
Organization of Thailand, MCOT, which joined on January 1 this year. The
Asiavision centre in Kuala Lumpur, a part of the ABU Secretariat,
coordinates the news exchange.
Internet - http://www.abu.org.my/asiavision/asiavision.htm

AUSTRALIA

NO WAGERING SERVICES ON FOXTEL
Pay-TV operator Foxtel said on January 13 that it won't provide digital
interactive wagering services when it launches its new digital television
platform later this year. Responding to a media report, Foxtel said it has
no agreements with Tab Ltd.'s Sky Racing channel or Two Way TV Australia in
relation to interactive wagering services. Neither are talks underway on
the subject with either of those two businesses, it said. Foxtel, which is
50%-owned by Telstra Corp., plans to release more details about its new
digital service January 21. Foxtel's statement undermines comments made
Monday by Two Way TV, an interactive television technology concern. Two Way
TV predicted that its interactive racing system would become available on
pay-TV in Australia "as soon as the pay-TV industry has rolled out
sufficient digital set top boxes and negotiations (in progress) with the
pay-TV operators have been completed." The company said its technology
could be used by account holders with wagering group Tab, who also have pay
TV subscriptions, to place bets using their remote control. Meanwhile,
Foxtel confirmed it had secured a debt facility of AUS$550 million ($427
million) to fund its rollout of digital services, due later this year. The
deal, struck with ABN Amro and the Commonwealth Bank, means the company's
shareholders - News Ltd., the Australian arm of News Corp., Publishing and
Broadcasting Ltd., and telco Telstra - will no longer have to use their own
funds to bankroll the move into digital, which is expected to initially
provide more than 100 channels.

TENDIGITAL TO REVOLUTIONISE TV RACING
THE racing industry would have complete ownership of a personality and
entertainment-driven channel if Ten Tendigital wins one of Australian
television broadcasting's most intriguing battles. The UK-based operation
was one of four suitors to court ThoroughVisioN - representing the Sydney
and Melbourne race clubs - and promised to revolutionise racing as we know
it. Ten Tendigital's proposal includes a financial investment option which
would see the company own a stake in the channel. The program model
presented was similar to the UK's attheraces which varies markedly from Sky
Channel's current product, which broadcasts an estimated 5000 races a year.

AZERBAIJAN

NEW LAW ON PUBLIC TV PASSED
The Milli Mejlis passed the controversial bill establishing a public
television broadcaster in its third and final reading on January 9. The new
public broadcaster will be administered by a nine-member Broadcast Council,
whose members may not be members of any political party. The board selects
the broadcaster's general director, who serves for a five year term and
whose candidacy must be approved by the president of Azerbaijan.

CHINA - HONG KONG

CIRMAKER PROVIDES DIGITAL TV BOXES FOR HICOM
Cirmaker Technology Corp., which manufactures set top boxes for the digital
TV market, on January 13 announced that it has formed a strategic
relationship with Hicom Industrial Co., a leading supplier to the Chinese
television broadcasting industry, to market its set top boxes for digital
TV reception in 12 provinces of China and the city of Shanghai. Hicom has
already started testing sample set top boxes in the major cities in five
provinces and Cirmaker is expecting feedback from these tests in the first
quarter of 2004. Cirmaker Technology manufactures 3G MHP (3rd generation
multimedia home platform) digital set top boxes for television sets. The
system also receives, processes, stores and broadcasts analogue, digital
and streaming media signals, and supports pay-per-view and video-on-demand
functions.

DVN SIGNS DEAL WITH HUNAN NETWORK
DVN (Holdings) Limited, China's leading provider of digital cable TV
services, on January 16 announced that it has entered into a contract for
the sale of digital TV broadcasting platform to Hunan Network, valued at
more than HK$10 million. This represents the second major contract won by
DVN in 2004. In early January, DVN announced a 600,000 set top box contract
with Qingdao Broadcasting Bureau. In the Hunan contract, DVN will supply
200,000 digital TV receivers to Hunan Network. Pilot testing of the
front-end particulars of digital broadcasting in Hunan was completed
earlier this month. With the progressive installation of set top boxes, it
is expected that digital TV broadcasting will be extended to the majority
of the province within this year. There are 14 major cities in Hunan with a
population of 3 million Cable TV users. With digitalization, the number of
digital TV channels available to subscribers will increase to about 80
channels. Changsha, the provincial capital of Hunan, has taken the lead,
launching advanced digital broadcasting in mid-2003. Shaoyang, another
major city, launched digital services on January 9. Altogether there are
approximately 10,000 digital TV users in both cities, with the number of
subscribers growing rapidly.
Internet - http://www.dvnholdings.com

VIEWERS WANT MORE DIGITAL TV CONTENT
The mainland had just 201,000 subscribers to digital cable-television
services last year, far short of its goal of one million, largely due to
lack of appealing content, according to the South China Morning Post. Cable
and satellite TV operators added just five million new customers last year,
compared with a net gain of 15 million to 20 million previously, according
to Media Partners Asia (MPI). China had a cable audience of about 100
million last year, the highest in Asia. In the region, subscriber numbers
jumped 9 per cent to 178.8 million, compared with growth of 11 to 12 per
cent previously. The State Administration of Radio, Film and Television
hopes the mainland will have 30 million digital-cable or pay-TV subscribers
by next year. It also wants TV stations to switch to digital networks from
analogue. So far, Shanghai Cable has signed up just 10,000 customers since
launching digital services in 2002, while China Central Television has
delayed its commercial roll-out of cable TV services. Other media
conglomerates such as Shanghai Media Group and Beijing Media Group are
exploring introducing pay channels as a way to reduce dependence on
advertising.

GUANDONG MEDIA GROUP WITHOUT STATE FUNDING
Southern China's first broadcasting group will soon begin operations as
Guangdong weans its media outlets off state funding and prepares them for a
new era of nationwide competition and, eventually, a stock-market listing.
According to the South China Morning Post, the Southern Broadcasting Media
Group (SBMG) will encompass six channels run by Southern Television
Guangdong, four terrestrial channels operated by Guangdong Television,
Guangdong People's Radio Station, Guangdong Cable Network, a satellite
broadcaster, and other media-related businesses including advertising and
home video companies. The group will be operated by Guangdong
Administration of Radio, Film and Television. The formation of SBMG will be
followed by the establishment of similar groupings at the city level in
Shenzhen and Guangzhou Now, just Beijing and Shanghai have media
conglomerates operating in the same manner envisaged for Guangdong. They
are the Beijing Media Group and Shanghai Media Group.

INDIA

NO HOLLYWOOD MOVIES FOR DELHI CABLE OPERATORS
The Delhi High Court has restrained some cable operators from showing films
of eight leading Hollywood studios because of allegations that the movies
were aired by using the pirated VCDs. In a joint suit filed by Time Warner
Entertainment Company, Columbia Pictures Industries, Disney Enterprises,
Metro-Goldwyn-Mayer Studios Inc, Paramount Pictures Corp, Tristar Pictures
Inc, Twentieth Century Fox Film Corp and Universal City Studios, it was
alleged that the cable operators, some rental libraries and video shops
were illegally airing, distributing and selling the films.

DOORDARSHAN NEWS CHANNEL TO EXPAND FOOTPRING
India's state-owned broadcaster Doordarshan is to expand the footprint of
its 24-hour news channel to make it accessible to viewers abroad, the India
News has reported. The newspaper quoted India's Information and
Broadcasting Minister, Ravi Shankar Prasad, as saying a decision would be
taken soon for the availability of the Doordarshan news channel in major
cities of the world. Prasad said the airing of Doordarshan's news channel
overseas would increase awareness about India and direct more investment to
the country.

ISRAEL

YES TO GET MORE CASH FROM BEZEQ
The Yes satellite broadcasting company will get a further NIS 200 million
in the next two years from national phone company Bezeq, its controlling
shareholder. The cash will fund the gap between the station's business
plan, presented and approved in the middle of 2003, and its actual
financial results. The request will be put before Bezeq's board of
directors in two weeks. Yes has failed to meet its financial targets, in
part due to a slower than expected rate of signing on new subscribers - it
ended 2003 with 215,000 subscribers, compared to its forecast 250,000.
Neither has Yes met expectations for revenues per subscriber - NIS 178 per
subscriber instead of its predicted NIS 183. The gap between the company's
plans and its actual revenues is NIS 2 million a month. Tough competition
from the cable companies Yes is the main reason for Yes failing to meet its
goals. The cable operators have used special deals and the fast Internet
service to entice new subscribers and keep old ones. Other shareholders in
Yes are expected to dilute their holdings in the broadcaster instead of
investing more money in it. Yes said it had reached a positive operating
cash flow in the third quarter of 2003, with NIS 17 million in earnings
before taxes, depreciation and amortization. Yes started paying rental fees
of $1.5 million a month for the new Amos 2 satellite, even though new
compression technologies for broadcast signals that were developed after it
had signed the contract would have allowed it to remain with the Amos 1
satellite instead.

JAPAN

DISNEY CHANNEL EXPANDS COVERAGE
Walt Disney Television International has inked a deal to expand the reach
of the Disney Channel in Japan, signing an agreement with multichannel
broadcasting and video-on-delivery service Hikari Plus TV. The service,
launched in 2003 by Japanese telecommunications company KDDI, provides
subscribers with 25 television channels as well as VOD programming. The
Disney Channel-currently available in the country on satellite platform
SkyPerfecTV and via cable operators-will be part of Hikari's basic package.
In addition, Buena Vista International Television (Japan) has concluded a
licensing agreement with Hikari to provide it with a range of feature
films, such as Pearl Harbor and Signs.

PAKISTAN

NO DECISION YET TO INDIAN TV CHANNEL BAN
Information Minister Sheikh Rashid Ahmed has again ruled out lifting of ban
on Indian TV channels in the near future. Talking to reporters, the
minister said while Pakistan was engaged in normalisation of relations with
India, no decision on the issue of ban on TV channels had been taken as
yet. "If the talks between the two countries reached a logical conclusion,
only then the government would consider this matter," said the minister.
Sheikh Rashid has maintained in the past that Pakistan slammed the ban in
retaliation to the Indian government's decision in early2002 to black out
Pakistan Television. However, the latest wave of confidence building
measures between the two countries and intensification of people-to-people
contacts have build up a pressure on both governments to allow free
movement of artists, films and TV programmes.

THE PHILIPINES

PLAYBOY TV SIGNS DISTRIBUTION DEAL
Playboy TV International (PTVI) has teamed with Philippines-based Solar
Entertainment to launch a branded Playboy network in the territory. The
channel is now available to some 1 million homes in the country under the
Big Boy Entertainment banner, which includes the premium services Super
Channel and NBA League Pass. Big Boy is carried on Destiny Cable, Global
Cable, Cable Link and Sun Cable, among others.

QATAR

AL JAZEERA PREPARES CHILDRENS' CHANNEL
Qatar-based television channel Al-Jazeera has tied with French media group
Lagardere Images International to launch the first-ever pan-Arabic
children's "edutainment" satellite service, Lagardere Images CEO Jean
Rouilly said on January 12. The new channel, scheduled to be launched by
the end of the year, will be broadcast via satellite in the Arabic language
from Doha, Qatar. The service will initially be available throughout the
Arab world and in Europe and will be rolled out across the globe at a later
date, Rouilly said.

SAUDI ARABIA

NEWS CHANNEL ON AIR
Saudi Arabia has launched its first all-news satellite television channel.
Al-Ikhbariya went on air on January 11 and will broadcast in Arabic for 12
hours a day before moving to round-the-clock rolling news. The aim of Saudi
Arabia's fourth state-owned TV channel would be to present a new image of
the Gulf Arab state, al-Ikhbariya's director said. Local media analysts say
the new channel - with its rolling news format and slicker presentation -
will attempt to win over Saudi viewers who often complain that the
country's television news is bland and boring. Analysts say al-Ikhbariya
will also compete for the satellite market that is dominated by the
Qatar-based al-Jazeera TV channel. Al-Ikhbariya has about 45 correspondents
in Saudi Arabia and abroad, and plans to broadcast live debates with
politicians and public figures in Europe and the United States. Although
aimed at Saudi Arabia and the Arab world, it hopes to include
English-language programmes when it moves to 24-hour broadcasting. Saudi
Arabia already has three state-owned channels: Saudi One, the
English-speaking Saudi Two, and a sports channel. Al-Ikhbariya joins a
growing number of regional Arab news channels, including al-Jazeera and
Dubai-based al-Arabiya. A US-funded channel targeting the Arabic-speaking
world is also planned.




A F R I C A


SOUTH AFRICA

MEDIA SECTOR SET FOR SHAKE-UP
The Independent Communications Authority's (Icasa) proposed new ownership
and control rules for South African broadcasters is set to have a major
influence on the structure and growth of the local media industry. Over the
past few years a number of media deals have either fallen through or were
not contemplated, largely because of a failure to comply with statutory
limitations on ownership. Icasa is now proposing increasing the threshold
for foreign ownership of broadcasting companies. It believes one foreign
person should not own more than 25% of a South African company that has a
commercial broadcasting licence, and that one or more foreign persons
should not own more than 35%. Interested parties have until February 13 to
submit their comments on Icasa's proposals.

UGANDA

AUTHORITIES START SHUTTING DOWN BROADCASTERS
The Ugandan authorities have started shutting down dozens of
privately-owned media outlets that have not paid for their operating
permits. Officials are targeting about 50 broadcasters throughout the
country. According to Broadcasting Council spokesman Dennis Lukaaya, almost
half of the approximate 100 radio stations and three television stations
operating in the country had not paid their operating permits.