TELE SATELLITE NEWS - Number 05/2004 1 February 2004 -

[Sadoun]

TELE SATELLITE NEWS - Number 05/2004 1 February 2004 -
A weekly roundup of global TV news sponsored by TELE-satellite International
Editor: Branislav Pekic

* Issue 02-03/2004 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



EXTREME SPORTS SIGNS DISTRIBUTION DEALS
Pay-TV platforms across Central Europe have added the Extreme Sports
Channel to their basic packages, boosting the network's distribution by
some 1 million households. Extreme has inked carriage deals with the UPC
networks in the Czech Republic and Slovakia; RCS TerraSat, Romanian Cable
TV and Satline in Romania; and three cable operators in Bialystock/Poland.
The Extreme Sports Channel, which was launched in 1999, is now available in
52 countries in 10 different languages and reaches into a total of 17
million households.

REALITY TV EXPANDS FOOTPRINT
Tthe Zone Vision Group has secured a slew of carriage deals in Northern
Europe for its Reality TV channel, adding nearly half a million subscribers
to its overall distribution. Zone Vision has signed agreements with the
Netherlands Cai Westland, ONS Cai, Cai Harderwijk, Communikabel and
Mutikabel. They will all be adding the channel to their basic analogue
cable packages. In Europe/Middle East territories, Reality TV is a joint
venture between Zone Vision and chellomedia. Worldwide the factual channel
is aired in over 120 countries and is available to 35 million subscribers.

EUROPEAN TV RIGHTS FOR THE OLYMPICS UP FOR GRABS
The International Olympic Committee opened bidding for European television
rights for the 2010 Olympics and beyond, breaking with the tradition of
negotiating only with the European Broadcasting Union. The IOC is inviting
offers from broadcasters across the continent, following the same process
used last year in awarding the U.S. television rights. The EBU, a
consortium of networks including the BBC, has held European rights for
every Olympics since 1960. While the EBU is free to bid again, the
possibility exists that the rights could go to rival satellite companies
such as Rupert Murdoch's BSkyB. NBC and its parent company, General
Electric, beat out the other U.S. networks to secure exclusive coverage of
the 2010 and 2012 Games for a record $2.2 billion. The European bidding
process will proceed in February and March. The IOC panel will meet April
23 to receive formal bids in sealed envelopes. The IOC could announce a
winner the same day or decide to carry out further negotiations with the
companies. The IOC will consider all options - including pan-European
broadcasters, multi-territory alliances, individual country-by-country bids
and agents. The EBU - which represents 49 countries - paid a total of $578
million for rights to the 2006 Winter Games in Turin, Italy, and 2008
Summer Olympics in Beijing - $135 million and $443 million, respectively.
The 2010 Winter Games will be held in Vancouver, British Columbia. The site
for the 2012 Summer Olympics hasn't been decided yet, but six European
cities are among the nine candidates in the running. The IOC will keep to
the "core principle" that the Olympics should be available mostly on free
television, but does not rule out that parts of the European contract will
cover pay-per-view or other pay systems.

CROATIA

OIP OPTS FOR SCIENTIFIC ATLANTA
Scientific-Atlanta has announced that Croatian network operator Odasiljaci
i Veze (OiV) will upgrade its entire terrestrial distribution network using
its equipment. Having recently completed a thorough acceptance test
deployment of the equipment, OiV will begin immediately revolutionising the
country's TV and radio transmission infrastructure with the enhancements to
its new network. OiV controls a network of 21 main transmitter sites and
approximately 300 transposer sites in Croatia which are used for delivering
terrestrial television content to the country's 1.5 million television
households. The company has signed a contract for a complete DVB-compliant
digital platform from Scientific-Atlanta, providing TV and radio
distribution, studio-to-studio contribution, as well as a full system
management solution. While OiV currently transmits three national channels,
one of its key objectives is to include more contribution from regional
news providers in its existing national programming, all on the same
network. Thanks to the advanced Scientific-Atlanta encoders, OiV will be
capable of inserting local news in specific time-slots within national
programming for broadcast in six regional networks. The new
Scientific-Atlanta platform will also convert the digital transport signals
into traditional analogue for terrestrial transmission to the home. As part
of the overall system, OiV has bought Scientific-Atlanta's ROSA network
management system to give it complete control of network performance at all
times. The network will also have automatic redundancy switching which will
help to enable OiV to provide high-quality, reliable service at all times.
Scientific-Atlanta is committed to supporting OiV's network upgrade project
over the next 18 months and beyond.
Internet - http://www.scientificatlanta.com

FRANCE

PUBLIC CHANNELS IN ONE MULTIPLEX
The six French public service channels (France 2, France 3, France 5,
Festival * thematic channel, Arte and the Parliamentary Channel) will be
grouped on a single multiplex (on the R1 frequency network). This decision,
made by the French audiovisual regulatory body, the CSA (Conseil supérieur
de l'audiovisuel), will enable the public service channels to establish
their multiplex operator rapidly and to prepare for the launch of DTT under
optimal conditions. Five out of the six DTT multiplexes have now been
defined. Prior to issuing a new call for tenders for the remaining R5
frequency network and completing the selection of DTT channels, the CSA is
holding a public hearing to establish different candidates' expectations
and projects.

M6 DIRECTORS APPROVE SUEZ SALE
French television group M6 has said on January 30 that its board of
directors has approved an almost complete withdrawal by French utilities
group Suez of the 37% stake it holds in the broadcaster. Suez will preserve
a 5% stake in M6. The M6 disposal will generate about €700 million in
capital gains for Suez this year and allow the group to reduce its €16
billion debt and refocus on its core activities of energy, water and waste
management. The board gave the go-ahead to M6 management to accept the
rules set by French broadcasting authority Conseil Superieur de
l'Audiovisuel, which had delayed the €1.2 billion disposal by Suez to
reduce its debt. The watchdog had imposed a 34% cap on the voting rights of
Germany's RTL Group, which owns 48.4% of M6. Suez received approval from
the CSA in November to sell its M6 shares but only on the basis that RTL
would agree to maintain the 34% cap. Under the current M6 rules, which the
board agreed to amend to facilitate the Suez disposal, RTL's voting rights
would automatically increase to 49% if Suez -- which had also agreed to the
34% cap to maintain a balance between the two main shareholders -- reduced
its stake to less than 33%.

TF1 ADVERTISING REVENUE UP
TF1 on January 29 reported 2003 revenue of €2.740 billion, up 4.5% from
€2.624 billion the previous year. The French television station said
advertising revenue on its main channel increased by 2.4%, boosted by
strong demand from telecommunications and leisure companies. Overall,
advertising revenue was up 2.4% at €1.54 billion. TF1 added it expects
advertising revenue will be further lifted this year from a relaxation in
France's tight television advertising rules, allowing newspaper and
magazine publishers to advertise for the first time on national television.
In its statement TF1 said revenue from its video business and 66%-owned
satellite television unit TPS also grew last year, offsetting lower income
from both its Eurosport channel and LCI 24-hour news station. TF1 will
published 2003 earnings on February. 24. The broadcaster's flagship
free-to-air channel by the same name retained its position as France's
most-watched channel, wresting 95 of the most-watched 100 programs, 60 of
which were co-produced by TF1.

TPS SELECTS UNIVERSAL ELECTRONICS REMOTE
Universal Electronics Inc. (UEI) has entered into an agreement to supply
its new Focus remote control platform to France's La Television Par
Satellite (TPS) to control TPS customers' set-top satellite television
receivers and other electronic devices. TPS is the first original equipment
manufacturer (OEM) to receive the Focus remote control, which is highly
customizable to meet the specific market requirements of electronics
equipment and service providers. As part of the ongoing relationship
between the two companies, UEI will manufacture and ship the new Focus
remote controls to TPS for distribution with its set-top receivers in the
first year. The agreement gives TPS, France's leading satellite TV provider
with more than 1.2 million subscribers, exclusive rights to distribute
Focus remote controls in the French market. The Focus line of digital TV
remote controls is capable of controlling any combination of a television,
digital TV set-top box, personal video recording (PVR) device, VCR, DVD and
audio components. Features include an ergonomic shape, intuitively designed
keypad and logical grouping of control buttons.
Internet - http://www.uei.com/

TELCAST SIGNS DEAL WITH TV5
France's TV5 will begin offering its viewers daily, live images from
locations around the world, courtesy of Germany's Telcast Media Group.
Telcast's earthTV live footage will be integrated into TV5's weather
reports. The deal covers five takes of 13 seconds each culled from
earthTV's network of 65 cameras on five continents. The agreement marks a
first for earthTV, which in the past has sold networks packages of
programming - ranging from 30 seconds to 3 minutes each - such as TimeLapse
and EarthQuiz.

GOVERNMENT TO FUND CORSICAN TV CHANNEL
France's home minister Nicolas Sarkozy on January 30 announced that the
government will finance a €900,000 project to launch a digital television
satellite channel for the Mediterranean island of Corsica, where a
separatist movement has raged for more than 25 years. Corse Mediterranee
will be run by public broadcaster France 3 and be available via satellite
to homes throughout Northern Europe and Africa, French culture minister
Jean-Jacques Aillagon said in a statement. At least three of its 17 hours
of programming will be devoted to Corsican news and events. Government
sources said the project is "an attempt to bring the Corsican people closer
to the mainstream." Aillagon added that France 3's 2004 budget will receive
6.2% more funding than it did last year, with more regional programming in
the cards.

GERMANY

N24 NOT FOR SALE
Executives at Haim Saban's ProSiebenSat 1 have denied rumors that it will
sell 24-hour news channel N24. Speculation that the group, which owns five
channels, would sell the money-losing N24 heated up after Saban acquired it
last year. N24's managing director Torsten Rossmann made it clear on
January 28 that ProSiebenSat 1 didn't want to sell the web or find
investment partners. He said the TV network would break even in 2005. N24
posted a pre-tax loss of €24 million in 2002. Among 14-49 year-old viewers,
Rossmann said N24 held a 0.5% market share in 2003, just 0.1% behind rival
N-TV, owned by RTL and Time Warner.

HUNGARY

RECORD PROFITS FOR RTL KLUB
Hungary's ratings war between RTL Media-controlled broadcaster RTL Klub and
SBS-controlled TV2 is bringing record profits to RTL's network, which just
announced ad revenue for 2003 of 2.6 billion Hungarian forint ($12.8
million). According to Hungarian RTL Television CEO Dirk Gerkens, this
amount is almost 10% higher than the net's ad revenue for 2002 and
represents the best financial year for the terrestrial network since going
to air in 1997. Despite the sluggish international economy, RTL's revenues
have been on the rise for years. Revenues in 2002, the previous
record-breaking year, were 20% higher than the previous year. SBS' Magyar
flagship TV2 has not posted its 2003 results, but analysts estimate its
revenue may not surpass $9.6 million for 2003, but could better 2002's
results by as much as 20%. Both networks can look forward to a good year.
Hungary's broadcast ad industry is expected to expand as much as 10% in 2004.

ITALY

FININVEST DENIES MEDIASET SALE
Italy's Fininvest, the unlisted holding company that controls Mediaset,
denied a press report on January 27 that it plans to sell a 15% to 17%
stake in Mediaset. Finanza Mercati reported that Italian Prime Minister
Silvio Berlusconi, who owns Fininvest, is studying a way to sell 15% to 17%
of Italy's leading broadcaster to an investment bank which would then place
the shares - worth around €2 billion at current prices - on the market. The
newspaper cited unnamed political sources and people described as close to
Fininvest. Fininvest owns 51% of Mediaset. Berlusconi has been criticized
by center-left opposition lawmakers in Italy for not resolving his conflict
of interest in controlling the nation's only large private broadcaster as
well as controlling indirectly, through his parliamentary majority, state
broadcaster RAI.

MILAN CHANNEL HITS TARGET
The TV channel of Italian football giants AC Milan has reached its
subscriber goal after chalking after 1500 days of programming. After
reaching the landmark, it has already surpassed its target of 45,000
subscribers and in doing so making it the most successful channel for an
Italian club. Following hot on its heels are similar channels for Inter
Milan and Roman both of which launched in 2000. The Milan Channel,
produced by Italian rights agency Media Partners, was first transmitted on
the Tele+ Digital platform in 1999. According to Media Partners, the weekly
viewer profile is 69.5 per cent male and 30.5 per cent female, with the
primary age group between 14-34 years. Now the channel has launched a new
project Milan Channel Community allowing fans to discuss key topics via
email, SMS, telephone and fax.

MEDIA BILL BACK IN PARLIAMENT
Italy's controversial media bill, which critics say favours the business
empire of Prime Minister Silvio Berlusconi, went back to parliament on
January 29 after its rejection late last year by the president. The bill
relaxes limits on media ownership meaning the Berlusconi family's holding
company Fininvest could expand from television, publishing and film into
radio and ultimately print. With seven amendments, including one that would
squeeze advertising revenue limits and thus market share, Berlusconi's
centre-right government hopes it has addressed the criticisms. So far, the
remodelled bill has not pacified the left-wing opposition, which says it
still benefits the media tycoon-turned-prime minister and will seek to
stall it. The draft law won a parliamentary vote in December but it was
blocked by President Carlo Azeglio Ciampi who refused to sign it into law
saying it failed to guarantee greater plurality in the media and sent it
back for revisions. With initial discussions starting on January 29, voting
on the changes is due on February 3. If the bill is approved for a second
time by parliament, as expected, Ciampi would be obliged to sign it into law.

RUSSIA

NO FIXED SCHEDULE FOR DIGITAL TV SWITCHOVER
Russia does not have a fixed schedule for its transition to digital TV
broadcasting and has been focusing on upgrading infrastructure, according
to the minister of communications an information technology, Leonid Reyman.
"We are not setting ourselves a strict deadline," Reyman said in Davos,
Switzerland. "We believe that the main point is to modernize
infrastructure, including the Ekspress satellites which are currently being
launched and are fully digital-compatible." Acknowledging that the future
belonged to digital broadcasting, Reyman noted that the issue of the
transition to digital technologies was "largely an economic one. For
example, there are some 30 million television sets in Russia." "The
transition to digital TV broadcasting means their replacement with more
modern sets. Where do we find the money for this?" he asked.

SWEDEN

DIGITAL TV LICENSES AWARDED
Sweden's ministry of culture announced on January 29 that the government
had awarded digital terrestrial broadcasting licences to seven new
television channels. The licences were received by BBC World, Discovery
Travel & Adventure, Disney Channel, NonStop Film, TV 3, TV 8 and ZTV, the
ministry said in a statement. A total of some 30 channels have now been
licensed to broadcast in the digital terrestrial network. The owner of the
TV3, ZTV and TV8 channels, Modern Times Group, said the decision will
increase the penetration for the channels by around 5 per cent of Swedish
households. TV3 will consequently grow its penetration by almost 5 per cent
to around 67 per cent, making it the second largest commercial channel in
Sweden, in terms of penetration. TV3 and ZTV have been awarded licenses
with 90 per cent coverage while TV8 will be broadcast with 50 per cent
coverage of Swedish households. The agreement runs over a year and all
three channels will be broadcast without encryption. MTG has decided not to
broadcast commercials directed towards children when broadcasting in the
terrestrial network.

UNITED KINGDOM

OFCOM ANNOUNCES NEW ITV LICENCE PROCEDURE
Ofcom, the U.K.'s media and telecommunications regulator, announced a
review on January 26 of the licensing process for the ITV commercial
broadcasters, with a view to lowering the regulatory costs and simplifying
the license renewal process. ITV spends £475 million a year to comply with
regulatory requirements, a cost that should be reduced by "millions of
pounds" once the renewal process is aligned, according to Ofcom. At the
moment, the 16 ITV licenses have three different expiration dates,
resulting in three different renewal periods. Ofcom proposes that all ITV
broadcasters could apply in December to have their licenses renewed and
that the regulator would price all the ITV (which operates as Channel 3)
licenses simultaneously. Carlton and Granada, which will officially become
ITV Plc on Feb. 2, hold 13 of the16 ITV licenses. A streamlining of the
licensing process would help their bottom line.
Internet - http://www.ofcom.org.uk

BBC TECHNOLOGY FOR THE BBC
BBC Technology on January 27 announced that its Colledia Control product
will be used to monitor and control the playout infrastructure at the BBC's
new Broadcast Centre. Opened in October 2003, the Broadcast Centre is
Europe's most advanced broadcast facility. Colledia Control will collect,
log, filter and present on-screen status information from playout equipment
and systems at the Broadcast Centre, enabling operational staff to rapidly
assess the nature of any reported faults and identify necessary remedial
action. The monitoring system will be configurable to allow flexibility for
future changes in equipment and operational process and is designed to
scale with BBC Broadcast's future plans for expansion. The BBC's Broadcast
Centre will house the playout, channel management and creative teams for
international channels, BBC channels and other broadcasters. It is at the
heart of BBC Broadcast's vision to lead a major shift in broadcast media
management from traditional tape-based formats to digital media,
transforming their capability to playout, present, manage and repurpose
rich media content for any platform and any broadcaster.

ATTHERACES ENDS RIGHTS DEAL
Racecourse operator Arena Leisure said its affiliate Attheraces, the horse
racing broadcaster, has given notice to the Racecourse Association to
terminate a media rights deal covering 49 UK racecourses that was
negotiated in 2001. Under the terms of the deal, the contract will
terminate on March 29. The move is a response to an Office of Fair Trading
ruling made in April last year. Arena, which is a 33 per cent shareholder
in Attheraces, said the affiliate now plans to negotiate individual deals
with racecourses rather than with the association. "Attheraces is hopeful
that new deals with the racecourses can be agreed prior to 29 March 2004,"
Arena said. Separately, Attheraces said if new deals cannot be agreed
before termination of the media rights deal, then rebate provisions are
contained in the deal that enable the recovery by Attheraces of "a
significant proportion of the monies" given to racecourses since the start
of the contract in 2001.

ITV CHANNEL 3 TO LAUNCH BY YEAR’S END
The third mainstream ITV channel will be launched before the end of this
year, its chief executive designate Charles Allen said. Allen, who becomes
chief executive of the £5.5 billion merged ITV Plc on January 26, said that
following the huge success of ITV2 as a young viewers' entertainment
channel he wants ITV3 to aim at an older and more affluent audience with an
appetite for drama. He said: 'The third channel will give us the chance to
do things like whole nights or weekends of, say, Prime Suspect or to get
viewers switching from one episode of a drama on ITV1 straight to the next
episode on ITV3.' He said that the final decision on whether ITV3 will be a
free-to-air or a subscription channel had not yet been taken. ITV is also
in negotiations with Sky over their joint venture which operates the
Granada Plus and Granada Men and Motors channels on the digital
broadcaster's satellite platform. ITV would like to take back the rights to
Granada's extensive programme library. Some industry experts have already
dubbed the new channel ITV Gold - showing such classics as Brideshead
Revisited, The Jewel in the Crown and Sherlock Holmes. Allen said that it
was ITV's intention to continue creating new channels. The next most likely
project is a channel aimed at children, and eventually he wants 'a whole
family of ITV branded channels'.

BBC AND ITV AGREE ON EURO 2004 MATCHES
The BBC and ITV have agreed an 'amicable division' of televised matches for
the Euro 2004 football tournament. ITV will show the first two of three
England group matches, but the BBC will have the pick of quarter-final
matches * guaranteeing it shows the England match if the team qualifies.
Both semi-finals and the final will be shown on both networks.





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



CANADA

CRAIG MEDIA UP FOR SALE
Canadian broadcaster Craig Media Inc., which operates domestic digital
channels in partnership with Viacom's MTV, has put itself up for sale,
according to media reports. The Globe and Mail newspaper on January 27 said
Calgary, Alberta-based Craig Media had recruited Toronto investment banker
RBC Dominion Securities Inc. to sell part or all of the privately owned
broadcaster. Craig Media owns and operates four TV stations in western
Canada -- A-Channel Calgary, A-Channel Edmonton, A-Channel Manitoba and
CKX-TV Brandon -- and a southern Ontario TV station, Toronto One. The
broadcaster, in which the Craig family of Brandon, Manitoba, retains an
80.1% controlling stake, also operates digital channels in partnership with
Viacom.

UNITED STATES

VOOM ADDS NFL AND PLAYBOY IN HD
Rainbow DBS, Cablevision Systems Corporation’s satellite division announced
four additions to VOOM’s HDTV line-up which include the NFL Network,
Playboy TV, STARZ! HD East, and STARZ! HD West in the coming months. This
brings VOOM’s total channels in high-definition to 30 HD channels. In
addition, Rainbow DBS introduces the VOOM HD Home Media Network, a whole
house solution designed specifically for HD programming, which is expected
to roll out this summer. In addition to its existing HD channels, which
includes Discovery HD Theater, Showtime East and West, and The Movie
Channel. 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 service will feature an HD DVR that can record and playback HD
video programming in its intended format. Rainbow DBS will be using
embedded software from Ucentric Systems, a leading provider of home media
networking software and service for the new digital home, in the
development of this product.
Internet http://www.voom.com
http://www.ucentric.com

CABLE OPERATORS QUESTION DIGITAL TV RULES
To most TV viewers, digital television means more TV channels. However,
cable companies, which have room for only a limited number of channels, say
a federal mandate could force them to drop cable services to make room for
extra broadcast channels. Those channels might carry nothing but
infomercials or home shopping shows, they say. The cable industry, which
serves more than two-thirds of the 108.4 million U.S. households with
television, insists that it, not the government, should decide which
channels find homes on their systems. The issue is before the Federal
Communications Commission, which is expected to decide by spring whether
cable companies must carry the extra broadcast channels. The fight is due
to the transition to digital broadcasting, which will be standard in most
areas by 2006. While some stations may use their digital signals for larger
and sharper high-definition broadcasts, others may use the spectrum to air
to up to six channels. Broadcasters said the newer networks - Fox, the WB,
UPN and Pax - became viable only because cable companies were forced to
carry the UHF channels with that programming. Requiring cable to carry the
digital broadcast channels will offer even more alternatives, they said.
The cable TV industry said those extra broadcast channels may eventually
wind up on cable systems, but the First Amendment gives operators, not the
government, the power to make that decision. Consumer advocates worry the
extra channels would give the largest broadcasting companies even more
control over what people see and hear. Instead of four network-controlled
channels in a market, viewers could see up to 24 if each of the four major
networks - ABC, CBS, NBC and Fox - opts for the maximum six channels.

HIGH DEFINITION AND WIDESCREEN TO PROMOTE DIGITAL TV
A staff working paper circulated by the Commission services says that
wide-screen and High- definition TV (HDTV) could help accelerate the
transition to digital broadcasting. The paper argues that wide-screen and
HDTV could help broadcasters "to differentiate the quality of digital
television from analogue TV". It says the current consumer appeal for
products such as DVDs, flat panel displays and home cinemas could be
exploited to support the roll-out of digital TV by using wide-screen and
increased image quality. Broadcasters are now facing a "quality challenge",
the paper goes on, because consumers with large-screen TVs will
increasingly expect DVD and wide-screen quality. By issuing this paper, the
Commission proposes to co-ordinate between broadcasters and manufacturers
to ensure a critical mass of services and programming. It says it is
willing to promote equipment standards and benchmarking as well as to
launch a debate on the spectrum aspects of digital broadcasting. The paper
comes as a follow-up to the Commission's September 2003 Communication on
'digital switchover' which calls for a progressive transition from analogue
to digital broadcasting.

VOOM OPTS FOR NDS
NDS announced on January 28 that it is providing VOOM with a number of
advanced technologies for its subscribers. Building on their current
relationship, NDS and Rainbow DBS, the Cablevision company offering VOOM,
have launched a first-of-its-kind Electronic Programming Guide (EPG) built
specifically for high-definition programming. Further, within a few months,
VOOM will transition its conditional access over to NDS's VideoGuard
protection. With the full integration of VideoGuard conditional access, all
content delivered by VOOM over satellite will be protected and enhanced
through VideoGuard's wide ranging feature set. Additionally, the
collaboration will bring to market the first HDTV solution using a Motorola
set-top box integrated with NDS conditional access technology. The new
agreement also builds upon an existing relationship with Cablevision
whereby NDS provides conditional access solutions to many of its digital
cable customers.

WHITE HOUSE BACKS ANTI-SMUT BILL
The push to approve legislation that would increase fines for indecent
broadcasts tenfold gained momentum on January 28 as the Bush administration
told lawmakers it supports the measure and congressional leaders vowed to
put it on a fast track. In a letter to lawmakers, Commerce Secretary Donald
Evans said the unprecedented increase in fines "will help make broadcast
television more suitable for children." Evans told lawmakers that "recent
events demonstrate (that) some broadcasters have failed to meet (their)
public trust by airing increasingly coarse and at times indecent
broadcasts." Evans' letter marks the first time the administration has
taken a position on the issue.

TIME POSTS FINANCIAL RESULTS
Time Warner moved into the black in its fourth-quarter and year-end
results, thanks to strong performances in its network and filmed
entertainment divisions. Profit for the year was $3.1 billion, compared to
last year's net loss of $43.4 billion. Revenues for the year and fourth
quarter were up 6 per cent to $39.6 billion and $10.9 billion respectively.
Time Warner's net debt at the end of 2003 was $22.7 billion, down from
$25.8 billion the year before. Year-end revenues in the cable division rose
by 9 per cent to $7.7 billion, with subscription revenues up 13 per cent
thanks to high-speed data and digital services, and higher cable rates.
Advertising revenue, however, fell 30 per cent. In the networks segment,
revenues were up to $8.4 billion, with subscription, advertising and
content revenues all posting increases.

SATELLITE TV COMPANIES RAISE PRICES AGAIN
For the second consecutive year, the two largest satellite TV providers are
planning to increase the prices for many of their popular packages,
according to the San Francisco Chronicle. Hughes Electronics' DirecTV is
raising the rates of its main packages by $1 to $3 per month in March, or 3
to 9 per cent. Echostar Communications' Dish Network is keeping some prices
steady, raising others by a few cents and increasing others by $3 per month
starting February 1. On average, a spokesman said the increase works out to
1.7 per cent. Both companies said they were forced to raise rates because
of higher programming costs for channels like ESPN and Fox Sports. In
addition, the satellite TV providers maintain rates haven't risen as much
as cable prices over the past few years.

GLOBECAST DISTRIBUTES PINK PLUS
Globecast has added Serbian television channel Pink Plus and radio station
Radio Pink to the line-up of international programming on its GlobeCast
WorldTV Direct-to-Home satellite television platform on Telstar 5 in
America. Pink Plus and Radio Pink are owned and operated by RTV Pink, the
largest private broadcaster in Serbia. The full-time 24-hour channel is
geared towards the former Yugoslavian communities living in the United
States. GlobeCast also manages the delivery of these two channels to its
European distribution platform on Hot Bird.

SUPER BOWL IN 147 MARKETS
ESPN International is set to provide live coverage of the Super Bowl this
weekend to 147 markets in Latin America, the Middle East, Africa, Asia and
the Pacific Rim. The game, which takes place February 1 in Houston, Texas,
will be televised with commentary in English, Spanish, Portuguese and
Mandarin. ESPN International is also airing various related shows in
advance of the event, including Road to the Super Bowl and NFL's Greatest
Games. ESPN International will also air the event on the new Queen Mary 2
cruise line.





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



MEXICO

MEXICO MIGHT MISS THE SUPER BOWL
Sunday's Super Bowl is highly unlikely to air on terrestrial TV in Mexico
after negotiations among Televisa and TV Azteca and the National Football
League broke down. According to Variety, the three have been wrangling over
broadcast rights since late summer, but have been unable to reach a deal,
possibly preventing the league's games from airing in the country. The NFL
abandoned hopes of securing a regular-season deal in September and began
discussions for the playoffs. Those also failed and in recent weeks talks
with Televisa and Azteca for Super Bowl XXXVIII got nowhere, according to
the league's Mexican offices. It's the first time in 36 years that the
regular season wasn't shown on terrestrial TV in Mexico. Insiders at both
networks claimed the league's asking price is too high and said it is
demanding the broadcast of many more regular-season games than it had in
other years. On Sunday, Mexican football fans will have to watch the
Patriots battle the Panthers via cable, on Fox Sports or ESPN feeds.





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



U.S. PREPARES ARABIC TV CHANNEL
The U.S. government will begin broadcasting the Alhurra satellite
television network to the Middle East in the coming weeks. Alhurra will
broadcast its 24/7 Arabic language news and information service over the
Arabsat and Nilesat with what the network's creators hope will set a new
standard for satellite news in the region. Many critics of the station
maintain that the network will have a difficult time establishing
independent credibility as it is being established with $32 million in
funding from the U.S. Congress and is expected to receive an additional $30
million in congressional appropriations for its first year of operation.
According to a fact sheet released by the BBG, the station will feature
news and information on a variety of subjects including health, personal
fitness, entertainment, sports, fashion and science and technology.
Programming will include talk shows, current affairs magazines and
roundtables. The base for the station's production and broadcasting will be
in the United States, but the network will have bureaus in Dubai, Amman and
Baghdad. In addition, it will use stringers and correspondents from all
over the Middle East, Europe and the United States. The BBG fact sheet
notes that more than 75 per cent of households in the Gulf States have
satellite access as do 30 per cent of residents in Gaza and the West Bank
and 10 to 20 per cent of homes in Egypt. The station will be available over
terrestrial transmitters in Iraq.

AZERBAIJAN

FOREIGN TV CHANNELS OWE MONEY
Two Russian television channels are indebted to the Ministry of
Communication of Azerbaijan for
using Azerbaijani broadcasting space, Olaylar News Agency reported. NTV,
one of the channels, owes $171,000 to the Ministry. ORT, another Russian TV
channel needs paying $326,000 for broadcasting. Turkish channels as well as
the RTR, the another Russian TV channel are not on the list of debtors,
according to the agency.

CHINA HONG KONG

GALAXY TO REACH ONLY 25% OF HOMES
Only a quarter of Hong Kong's 2.2 million households will be in the
broadcast area of exTV, a new pay-TV service, when it debuts next month,
the South China Morning Post has reported. Rivals Hong Kong Cable TV and
PCCW's NOW Broadband TV, which offers pay-television content on an Internet
platform, already boast coverage across 90 per cent of households. However,
the limited coverage of exTV, run by Galaxy Satellite Broadcasting, is in
line with the company's expectations, according to Chief Executive Jim
Blomfield. The newspaper said that the 25 per cent coverage would be across
the city, including government and private housing estates, old buildings
and village houses. Building owners need to install a satellite dish which
costs about US$ 380. The new service has already started a full trial
broadcast. The company said it would announce pricing details on February
2. Industry watchers expect the monthly charge will be between US$19 and
US$26. The service will be formally launched on February 18. The rollout of
23 channels will include five provided by Television Broadcasts Limited
(TVB), a part owner of Galaxy. Blomfield said exTV targeted a market
penetration of 20 per cent, but declined to give a timetable. Hong Kong
Cable TV dominates the pay-TV scene and secures a 30 per cent market share
with a monthly fee of US$ 38.40.

INDIA

CONSUMER COUNCIL WANTS NO ADS ON PAY-TV CHANNELS
The Consumer Coordination Council, an all-India association of some leading
consumer organisations, has already made a representation before the new
regulator Telecom Regulatory Authority of India (TRAI) against airing of
commercials on pay television channels. According to research firm Media
Partners Asia, India's DTH satellite market could grow to 1.8 million
subscribers by 2008, compared with a forecast 68 million on cable. The
analysts feel that there would be two distinct markets: the rural areas,
which lack cable and satellite infrastructure, and premium urban households
which desire specialist content. The service costs about $2.25/ per month
with equipment costing $87. Average monthly revenue per satellite user
would rise to $7 as people sign up for more premium channels, from the
current $3.

IRAQ

AL-ARABIYA BAN LIFTED
Iraq's U.S.-appointed government has lifted a ban against an Arab
television network, two months after it ordered to cease broadcasting from
Iraq for allegedly inciting violence, an official said on January 28. In a
letter sent to the station, the Iraqi Governing Council said that the
station would be allowed to resume broadcasting from Iraq "freely, like the
other Arab and international media outlets." The Dubai-based Al-Arabiya had
sent a letter to the council asking it to lift the ban, and vowing to
"remain committed to our journalistic integrity and objectivity ... and
look forward to opening a new chapter of cooperation between the station
and the council." In November, the Iraqi security forces raided the offices
of Al-Arabiya, banned its broadcasts from Iraq and threatened to imprison
its journalists following airing of the tape, in which Saddam urged his
followers to continue their resistance. Al-Arabiya has clashed with
authorities before for its coverage of Iraq. In July, U.S. Deputy Secretary
of Defense Paul Wolfowitz said Al-Arabiya and another Arab news channel,
Al- Jazeera, incited violence against American forces with slanted reports.
Al-Arabiya was launched shortly before the U.S.-led invasion of Iraq. The
channel was started as a new venture of Middle East News, a Dubai-based
production company that also runs the Middle East Broadcasting Center. It
is owned by the brother-in-law of Saudi Arabia's King Fahd.

SATELLITE TV A HIT IN IRAQ
Since the overthrow of the Saddam Hussein regime last April, sales of
digital satellite decoders to Iraq have been explosive. The
once-information-starved populace now has access to signals from dozens of
satellite channels in the Middle East, including Al Iraqiyah and
Al-Jazeera. There are no official statistics, but STMicroelectronics says
it sold more than 2.5 million chips between April and December to
distributors that said they were building digital satellite decoders for
shipment to Iraq. Based on interviews with digital set-top box
manufacturers and pay-TV operators, IMS Research estimates that 7.4 million
households in the Middle East and Africa received free-to-air analog and
digital broadcasts in 2003 and predicts the figure will grow to more than
7.7 million in 2004. Michelle Abraham, senior analyst with research firm
In-Stat/MDR, named almost a score of companies from China and South Korea
that actively market their products in the Middle East. Satellite dishes
were banned under Saddam Hussein, and surging demand for satellite TVs is
said to be driving down the price of home digital receivers. Elimination of
the 75 per cent import tax imposed under the former regime has further made
electronics products more affordable, In-Stat's Abraham said.

JAPAN

SONY PROFITS DOWN 26%
Profits at the Sony Corporation dropped 26 per cent in the third quarter
ended December 31, 2003, to $866 million, as a result of losses in the
movie and video game divisions, and restructuring costs. Sony did however
experience a small increase in sales and operating revenue, which rose 0.7
per cent to $21.7 billion, setting a new quarterly record for the company.
At Sony Pictures Entertainment, revenues were down almost 30 per cent, to
$1.7 billion. The quarter's results were attributed to lower home
entertainment revenues.

MALAYSIA

MEDIA PRIMA POSTS PROFITS
Malaysian media company Media Prima Berhad reported a net profit of US$43.6
million on revenue of US$ 94 million for the 15-month period ended Nov 30,
2003, the Business Times has reported. In a statement released on January
27, Media Prima attributed the strong performance to improved operational
results at its wholly-owned subsidiary Sistem Televisyen Malaysia Bhd
(TV3), arising from strong growth in advertising revenue and lower overhead
costs due to stringent cost-control measures. Last November, Media Prima
completed its acquisition of an 80 percent stake in Merit Idea Sdn Bhd,
which owns 99.5 per cent of Metropolitan TV Sdn Bhd, owner and operator of
Malaysia’s newly launched TV station, 8TV. Media Prima owns 100 per cent of
TV3, 80 per cent interest in Metropolitan TV and a 43 per cent stake in
NSTP, one of Malaysia’s largest publishing groups.

NEW ZEALAND

NZ TELEVISION AD REVENUE ON THE INCREASE
New Zealand television advertising revenue totalled NZ$ 592 million in
calendar 2003, up 14.7% from a year earlier, according to the Television
Broadcasters' Council. The council's executive director, Bruce Wallace,
said in a statement on January 27 that 2003's result is a record for
television advertising in New Zealand. The council's members are the New
Zealand unit of Canada's Canwest Global Communications Corp., the New
Zealand unit of Australia's Prime Television, pay-TV operator Sky Network
Television, and government-owned Television New Zealand. In the fourth
quarter of 2003, television advertising revenue was NZ$176 million, up
16.5% from a year earlier.

THE PHILIPINES

ABS-CBN INTERNATIONAL SEEK GROWTH IN 2004
The international unit of ABS-CBN Broadcasting Corp. is aiming for about
8,000 new subscribers of The Filipino Channel, or TFC, in Europe by year
end to meet its 30% net profit growth target for the year. ABS-CBN is the
largest media broadcast network in the Philippines. ABS-CBN Global Ltd.
Managing Director Rene Encarnacion said on January 30 he expects an
increase in subscription sales due to strong demand from Filipino
communities in Europe, where it signed 400 new subscribers in December when
it launched operations in Milan, Italy. There are about 100,000 Filipino
households in Italy. Encarnacion said ABS-CBN Global registered a net
profit growth of more than 20% in 2003 "primarily driven by the expansion
in subscriber base." "We also had a nominal increase of subscription price
in our U.S. market last year," he added. The estimated total sales for 2003
is more than $50 million, while subscription earnings reached more than $25
million, and advertising revenue stood at $3 million, said Encarnacion. The
TFC is a 24-hour channel carrying all-Filipino programs through direct-to-
home satellite services in the U.S., Asia and the Middle East. ABS-CBN said
it expects TFC to be a significant revenue driver in 2004. North America
remains the major market of TFC with at least 130,000 subscribers in the
U.S. and its territories. TFC also has operations in Australia, Japan,
Indonesia and other countries in the Asia Pacific. The company plans to
expand its Asian operations to Hong Kong, Singapore, Taiwan, and Canada.





A F R I C A



SOUTH AFRICA

ICASA INVITES COMMENTS ON REGIONAL TV
The Independent Communications Authority of South Africa (ICASA) has
invited comments on an application from the South African Broadcasting
Corporation (SABC) for two regional television services, namely SABC 4 and
SABC 5. SABC 4 will broadcast in the Limpopo, North West, Gauteng, Free
State and Northern Cape Provinces in Setswana, Sesotho, Sepedi, Xitsonga,
Tshivenda, Afrikaans and English. SABC 5 will broadcast in Mpumalanga,
Limpopo (eastern border), Gauteng, KwaZulu Natal, Eastern Cape and the
Western Cape in isiZulu, isiXhosa, isiNdebele, isiSwati, Afrikaans and
English. ICASA requested interested persons to lodge written
representations by 9 February 2004.

SUPERSPORT LAUNCHES CHANNEL FOR EXPATRIATES
SuperSport, the pay-TV station, is trying to entice expatriate sports fans
in the US to subscribe to its new broadband service in a bid to develop new
revenue streams. The station covers major sporting events such as cricket
and rugby. SuperSport-On-Demand is a broadband service run by KuduClub, a
network of internet services provided by M-Web. Entriq, a US-based company
that develops and manages pay media infrastructure, will provide content
protection, end-user authorisation and billing for SuperSport. Entriq is a
division of MIH, which is a wholly owned subsidiary of Naspers.

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