TELE-satellite News - Number 19/2004 9 May 2004 - A weekly roundup of global TV news sponsored by TELE-satellite International
Editor: Branislav Pekic
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E U R O P E
MTG ROLLS OUT VIASAT HISTORY
Modern Times Group has launched a new pay-TV channel, Viasat History, in eight Eastern and Central
European markets, including Russia and Poland. The channel launched on May 4 on cable networks in Russia, the Ukraine, Belarus, Moldova, Hungary, Romania, Bulgaria and Poland. It airs for 18 hours a day, with shows on science, sports, music, business and military conflict, as they relate to events that changed the world. Viasat Broadcasting operates 26 channels in the region, including TV1000, a movie channel; and the documentary network Viasat Explorer.
CME POSTS FIRST QUARTER PROFIT
Central European Media Enterprises has swung into profit in its first quarter results, posting a net income of $5.2 million versus last year's loss of
$11.3 million, with net revenues up by 46 per cent to
$35.8 million. The company's Romanian operations-Pro TV, Acasa and Pro TV International-generated the most revenues, with $14.1 million; followed by Studio 1+1 in the Ukraine, with $12.1 million; Markiza TV in the Slovak Republic, with $11.9 million; and Slovenia's Pop TV and Kanal A, which brought in $9.67 million.
BROADCASTERS CHOOSE ATHENS BROADCAST BASE Athens Broadcast Services partners, represented by
GlobeCast, Gearhouse Broadcast and Stefi Productions, announced that leading international broadcasters have selected the Athens Broadcast Base 2004 for their Olympics coverage. These broadcasters include: Sky News, Sky Sports News, ITN (ITV3 News) and Reuters from the UK; 9 Network Australia; Italian group Mediaset and global news network CNN. The state-of-the-art Broadcast Base launched in May last year by GlobeCast, the global satellite transmissions provider, Gearhouse Broadcast, the equipment rental, sales & project solutions company, and Greek production company Stefi Productions offers non-rights holders a one-stop-shop for all of their production and broadcast requirements, including studios, work space, broadcast equipment, worldwide satellite transmissions, uplinking facilities, play out, conversion, encoding and mobile SNG facilities.
FIFA TURNS DOWN TV OFFER FOR WORLD CUP
Football's world governing body Fifa has turned down a
#1.56 billion offer for the TV and marketing rights to the World Cup in 2010 and 2014. The offer is significantly more than the estimated #1.23 billion the governing body will bring in for the 2002 and 2006 World Cups, in Japan and Germany, despite the fact that the first two tournaments of the next decade will be held in less commercially valuable markets. The Fifa president, Sepp Blatter, has already decreed that the 2010 tournament will be the first to be held in Africa, with Egypt, South Africa, Libya, Morocco and Tunisia all in the running to stage the event. The
2014 World Cup will be held in South America. The South America tournament will have less commercial value than the Germany World Cup because kick-off times will not suit the big European markets, although with a five-hour difference it won't play as much havoc with the schedules as the Japan World Cup two years ago. It is believed the unsuccessful bid came from International Sports and Entertainment, a Zurich-based sports marketing group in which French marketing giant Publicis and Japanese advertising group Dentsu are the major shareholders. Jerome Valcke, the head of Fifa's marketing and television division, told the Financial Times the offer was for a broad range of rights and had significantly undervalued them. He told the paper the proposal had come "too early" and covered "a range of commercial rights, which explains why we were not able to say yes or even discuss it". Unlike the TV-only deal for the
2002 and 2006 World Cups, the offer is believed to be for a broader range of rights, including the contracts to handle advertising, marketing and corporate entertainment.
BELARUS
STATE TV TO START SATELLITE BROADCASTS
Belarusian state TV on May 7 said it is to start satellite broadcasts. In an on-air report, the TV channels said digital distribution will improve the quality of reception of the Belarusian television's programmes. It will enable network TV operators to obtain high-quality signal for further redistribution.
Satellite broadcasting will allow the Belarusian television to exchange programmes with Ukrainian and Russian TV companies.
FRANCE
M6 REPORTS HIGHER INCOME
Commercial TV group M6 reported a net income of 293 million for the first quarter, up 1.9% over last year's figure, according to provisional results released on May 7. Advertising revenue from its free-to-air M6 channel rose 10.1% to 147.1 million, primarily driven by the food, press, health and beauty sectors. The channel's market share of viewers aged under 50 increased to 19.6% from 18% in the first quarter of 2003. Net income from other sources, which accounted for nearly half of the group's sales for the first quarter, fell to 145.9 million, a 5.2% drop from a year earlier.
CANAL PLUS BUYS VOD OPERATOR
Flm and pay-TV group Canal Plus said on May 3 that it has acquired video-on-demand operator MovieSystem in a deal which would allow the group "to enter the video-on-demand market as a major player and reinforce the group's presence in the field of content distribution." The deal, which insiders value at 10 million, will permit Canal Plus to provide premium film content from more than 70 major film producers across broadband networks. Subscribers to Canal Plus'
television-via-ADSL offer in France, through an association with France Telecom, would have access to MovieSystem's catalog of more than 1,500 films.
MovieSystem, which registered a turnover of 5 million last year, also distributes NetCine, a packaged video-on-demand service through broadband access providers in Europe, which gives subscribers access to the latest titles on the rental video market.
CABLE SUBSCRIBER FIGURES UP
The number of cable subscribers in France went up to more than 3.7 million, as the first quarter of this year showed an increase of more than 50,000, a 5.7% increase over the same period last year, according to figures released on May 4 by the Association Francaise des Operateurs de Reseaux Multiservices (AFORM), an organization representing more than 93% of French cable suppliers. The figures include television, telephone and Internet cable subscribers. AFORM said the largest gains registered were for high-speed Internet via cable, which grew 33.3% to 416,838 subscribers in the 12-month period starting April 2003. The newly introduced service of television via high-speed ADSL lines was available to 50% of households subscribing to the Internet via cable, AFORM said. Digital cable television subscribers increased 13.6% over the past 12 months to 933,820, while the total number of digital television subscribers inched up 2.8% to more than 3.5 million for the same period.
DROP IN VIVENDI SALES
Media and telecoms firm Vivendi Universal on May 5 reported sales of 5.97 billion compared to 6.23 billion in the year-earlier quarter. Vivendi Universal Entertainment saw its sales rise 3 per cent to 1.49 billion, thanks to strong video sales and a good release schedule. The unit is in the process of being sold to U.S. television network NBC, a unit of conglomerate General Electric. Revenues at pay-TV arm Canal Plus fell 21 per cent to 923 million, mostly because of asset sales, while the games division posted turnover of 77 million, down 27 per cent.
GERMANY
PROSIEBENSAT1 RETURNS TO PROFIT
ProSiebenSAT1, Germany's biggest free-to-air broadcaster, said it was back in the black in the first three months of the current year thanks to continued cost-cutting and rising revenues.
ProSiebenSAT1 said it booked net profit of 25 million in the period from January to March, compared with a loss of 31 million a year earlier. Before taxes, the group also swung back into the black, turning in a pre-tax profit of 43 million from a year-earlier loss of 29 million. First-quarter revenues were up six per cent at 436 million. The group's four channels -- ProSieben, SAT1, N24 and Kabel 1 -- also booked positive results.
SABAN SETS EYES ON VIVA
Haim Saban is in advanced negotiations to acquire the German music broadcaster Viva Media, according to the International Herald Tribune. According to the report, Viva Media has a market value of about $320 million.
Time Warner holds a 31 per cent stake in the company, and Vivendi Universal has 15 per cent. Saban is not the only one considered as a potential bidder for the network-Viacom is also said to be interested, according to the report. Viva's most valuable assets are Germany's number two music channel, which is estimated at 267 million, and production company Brainpool Television. Last year Viva reported a net loss of 42.3 million, a massive drop from the previous year's profit of 859,000.
PROSIEBENSAT1 AGREES LOAN
ProSiebenSat.1 Media is completing its refinancing package with a 150 million bond it plans to sell in a private placement. ProSieben said on May 6 the bond would be due 2011 and would be used to help fund a buyback of its 338 million bond due 2006 that it expects to complete later in May. The debt sale comes on top of a 282 million share capital increase Saban launched to pay down debt at the station that had been hit by a three-year drought in German advertising.
ProSieben also said it agreed on a syndicated loan of
475 million to replace an existing loan facility. The loan could be reduced by 150 million if the bond placement is succesful, it said.
STRONG INCREASE IN SUBSCRIBERS FOR PREMIERE Figures released on May 6 by pay-TV group Premiere showed strong subscriber growth in the first quarter, adding 47,000 new customers. But, hit by goodwill write-offs linked to its majority takeover last year by investment group Permira, the group booked a pre-tax loss of 47.5 million, compared to a 37.1 million loss over the same period last year. Sales also slipped to 232.3 million from 236.9 million in the first quarter of 2003.
ITALY
OPPOSITION CRITISES TV LAW
A slightly modified version of the Italian TV reform law, approved in Parliament last week, violates the Italian Constitution by reinforcing the duopoly exercised by Italian pubcaster RAI and Silvio Berlusconi's commercial network Mediaset, the country's opposition party said. The country's left-of-center parties have said that they will appeal to the Supreme Court against the law and added that they will appeal to the European Court of Justice if Italy's Supreme Court fails to take action. An earlier version of it had been rejected in December by Italian president Carlo Azeglio Ciampi, who said it could hurt competition and information pluralism in violation of the country's constitution.
SKY ITALIA TO ABANDON SECA ENCRYPTION
SKY Italia on April 28 announced that it will cease using the SECA encryption system by the end of 2004.
Existing SKY SECA subscribers will be progressively converted to NDS transmission, commencing from May 2004. In some cases this will be done by SKY providing a new NDS smart card which will operate in existing SECA decoders, but for many subscribers SKY will be delivering an NDS decoder and smart card to the subscriber's home at no additional cost. At this time SKY subscribers using a SECA enabled decoder need to take no action: SKY will contact each subscriber directly during the next six months to advise if it will supply them with a new decoder or a new smart-card. This decision means from 13 June SKY will stop selling subscriptions that use the SECA card. To provide an opportunity for potential subscribers currently owning or wishing to purchase a SECA enabled decoder, SKY is making a special offer for "smart card only" subscriptions from April 28 until 13 June. The SECA encryption system was originally deployed in Italy in 1997 by Tele+, which then was a subsidiary of Canal Plus, whose subsidiary, Canal Plus Technologies, supplied the system. The initial version deployed by SECA was known as SECA I and in May 2002 this was replaced by SECA II. Presently, SKY has more than 2.5 million digital customers. Of these, 1.9 million utilise SECA decoders and the remainder use NDS decoders.
JUVENUTS SIGNS NEW DEAL WITH SKY ITALIA
Juventus Football Club said on April 30 that it had signed a two-year television deal with Italian pay-TV operator Sky Italia that will bring the Italian football team at least 184.5 million. Juventus said the contracts were worth 90 million for the 2005-06 season and 94.5 million for the successive year. The club said it will receive a 5 million bonus if it places first or second in Italy's premier Serie A league. Juventus already has a television contract with Sky Italia through 2005. The last year of that contract offers the club revenue of around 90 million.
AMSTRAD GETS SKY ITALIA CONTRACT
Consumer electronics firm Amstrad has secured an order to supply digital set-top boxes to Sky Italia. No value has been placed on the deal, but Amstrad said shipments were scheduled to commence in the next financial year. Sky Italia, which is 80.1 per cent owned by Rupert Murdoch's media conglomerate News Corp and 19.9 per cent owned by Telecom Italia, operates a digital television service with more than 100 TV and audio channels.
THE NETHERLANDS
PUBLIC BROADCASTERS TO END ANALOGUE TV IN 2006 According to Radio Netherlands, the Dutch public broadcasters have told the government that they want to close down analogue terrestrial transmissions of the three national TV networks in 2006, two years earlier than expected. The closure of the analogue transmitters will save 14 million per year. It's estimated that only between 65,000 and 100,000 people depend on these transmitters to receive Nederland 1, 2 and 3 on a daily basis, while the rest get their signals via cable or satellite.
SPAIN
ANTENA 3 ONCE AGAIN PROFITABLE
Antena 3, the country's second-largest commercial TV station, has managed to turnaround its unhealthy financial situation. In the first quarter of the year, the network returned to profitability making a profit of 15.5 million, against losses of 9 million in the same period last year. Total revenues reached 144 million, against 118.5 million the previous year, while EBITDA was 40.1 million up from 8.6 million in the first quarter in 2003.
TURKEY
LATENS WINS MILENYUM TV CONTRACT
Latens has been awarded a contract to provide a customised next generation Conditional Access (CA) system to MilenyumTV, a wholly owned subsidiary of Dogan Yayin Holding (DYH). MilenyumTV is the satellite broadcaster that launched in Turkey earlier this year under the FreeTV brand. Latens is to provide a custom built system to secure the broadcast and business systems designed by MilenyumTV. Thanks to its new design and next generation technology MilenyumTV will also offer a managed portfolio of broadcast, production and satellite transmission services to other content providers in Turkey. The Latens next generation Conditional Access (CA) technology approach has many advantages over existing CA systems, including; reduction in security costs by up to 50%, ensuring that an operator is much less likely to come under attack and increasing operators business flexibility. Dogan Yayin Holding (DYH), the parent company of MilenyumTV, is Turkeys leading media-entertainment conglomerate. DYH has extensive broadcasting assets, with two national stations, three cable stations and one international TV station and the largest production house in Turkey.
UNITED KINGDOM
TV RACES ROW
Britain's courses looked to be hopelessly divided over plans to bring daily televised racing back to the screens of satellite and cable viewers. There were signs too that the struggle between the Horse Racing Channel, a subscription-based plan, and New Attheraces, a free-to-air rival, could leave bitter scars. Just six of Britain's tracks had still to decide which project to support, with the remainder all but split down the middle. However, as New ATR's 25-course portfolio includes the three all-weather tracks it can claim to control 50% of the fixture list while the 28 tracks who have signed with HRC account for some 43%. New ATR intends to launch to Sky viewers on June 21 and HRC is expected to announce its launch date soon, probably within the next two months.
However, the split between the two is such that neither may have the "critical mass" necessary to attract viewers and, in the case of HRC, persuade them to pay a fee of #20 per month.
FOX KIDS EUROPE BECOMES JETIX
Fox Kids Europe said on May 4 that its pan-European consumer products division will now be called Jetix Consumer Products International. Fox Kids said the new name follows the recent launch of Jetix-branded program blocks in Europe and on ABC Cable Networks channels in the United States. All local consumer product offices in Europe will bear the new name, which is scheduled to be launched June 8 at the New York Licensing Show.
SES GLOBAL PLANS FOURTH SATELLITE FOR THE U.K.
Luxembourg-based satellite operator SES Global is planning to increase its capacity by adding a fourth satellite to those already beaming channels to the UK.
As a result the number of satellite TV channels available in Britain could rise by up to 50 per cent to more than 600. SES Global will offer the channel capacity to television companies such as the BBC and commercial broadcasters including ITV and Channel 4.
The company said it had been in contact with the BBC about its plans for free-to-air satellite services, which could pave the way for the end of analogue television transmissions over the next five to 10 years. Last week, the publicly funded broadcaster announced plans to augment its existing Freeview digital platform with a satellite offering.
BSKYB OPTS FOR PINNACLE SYSTEMS
Pinnacle Systems on May 6 announced that BSkyB has deployed DekoCast character generators at its main UK studio facility in Isleworth, London. The solution will be used to produce content for the new international feed of Sky News, which is currently the UK's leading 24-hour news channel. Deployed ahead of the service's launch later this year, the solution complements 12 FXDeko II systems and a DekoCast Authoring Station that are being used across the Sky News and Sky Sports channels. The new service will broadcast internationally providing a single feed global news service utilizing content from Sky News'
existing operations. In creating this new service BSkyB is
aiming to build on the continued success in the UK and Ireland of Sky News, which earlier this year was named the RTS News Channel of the Year for the third successive year.
Internet
http://www.sky.com/corporate
S4C SEEKS CHANGE IN BBC RELATIONSHIP
In its response to the Government's review of the BBC's Royal Charter, the S4C authority is calling for the Welsh language channel's unique relationship with the BBC to be revisited in the light of changes which have taken place since it was first established. Since S4C's launch in 1982, the BBC has provided ten hours a week of Welsh-language television programmes for the Channel, paid for from the licence fee. These programmes, which include a daily news programme and soap opera Pobol y Cwm, one of S4C's most consistently popular shows, play a crucial role at the heart of the channel's programme schedule. S4C's view is that the relationship should now be modernised, given that the stipulation that the BBC's contribution to the S4C service should be ten hours a week was made as part of the 1981/1982 Broadcasting Acts, when there were to be only four terrestrial channels operating in the UK.
N O R T H A M E R I C A
CANADA
BCE BOOSTS EARNINGS
Canadian phone giant BCE said on May 5 that TV ad sale revenue at its CTV national TV network rose 10% during its first quarter. Earnings at BCE came to CAN$488 million ($361 million), compared with a year-earlier
CAN$473 million. Revenue at Canada's biggest phone giant for the three months ending March 31 rose 2.1% to CAN$4.1 billion ($3 billion), compared with
CAN$4.08 billion in 2003. Video sales rose 17 per cent to C$207 million as the company signed up 16,000 subscribers for its Expressive satellite TV service, bringing the total to 1.4 million clients.
BROADCASTERS OFFERED MORE AD TIME
Canada's TV watchdog proposed allowing private broadcasters to increase their per-hour advertising minutes in return for licensing and airing more expensive homegrown English- language dramas. Looking to boost the number of Canadian dramas on primetime schedules here, the Canadian Radio-television and Telecommunications Commission (CRTC) said on May 6 that it will grant broadcasters more advertising hours if they increase total viewership for Canadian dramas on their conventional TV stations and specialty channels and boost spending by free, over-the-air TV stations on Canadian TV dramas.
UNITED STATES
DVR TAKES OFF
Consumer interest in Digital Video Recorders such as TiVo and ReplayTV is gaining momentum, especially as the cable industry catches up to its satellite TV rivals by offering DVR-equipped set-top boxes, reports the Assocated Press. According to a recent study conducted by Forrester Research, the number of U.S.
households with DVRs will grow from 3.5 million in
2003 to 6.5 million by the end of 2004.
VOD ADULT SERVICE FOR WOMEN
Trans Digital Media has announced the launch of Playgirl TV, the first network to offer adult television programming produced by and for women. For more than thirty years, Playgirl Magazine has enjoyed the reputation as the brand women know and trust most for adult entertainment. Now Playgirl TV will use that experience to produce innovative programming initially only on Video-On-Demand (VOD) and Pay-Per-View (PPV).
DISH NETWORK ADDS POLISH CHANNEL
EchoStars Dish Network is to add itvn, a Polish network channel, to its international programming schedule. The addition of itvn's new Polish-language channel created especially for Poles living abroad continues DISH Network's leadership role in broadcasting international programming and specifically Polish broadcast television. The programming on itvn includes shows for all viewers, including talk and reality shows, quizzes, sitcoms, series and soaps. It will also feature Polish films and serialized documentaries, as well as the most popular Polish cartoons for children and Polish First Division League football matches. Customers can order itvn in addition to the current DISH Network Polish TV channel line-up, which features Polish network channels TVN 24 and Polsat 2 International.
PANAMSAT HOME TO CABLE
HD FEEDS
PanAmSat Corporation on May 3 announced that every major cable movie programmer has introduced its HD feed on the PanAmSat hybrid satellite and fiber network. In addition, the company announced that its Galaxy 13/Horizons-1 neighborhood is the first and largest in the industry, enabling cable programming networks to bring high-quality HDTV content to over 11,000 cable headends throughout the United States.
PanAmSat's commitment to the future of high-definition television is evident in the roster of customers that has chosen the Galaxy fleet to deliver their programming. It is the HDTV home to some of the biggest names in cable television including: Bravo
HD+, Cinemax HD, ESPN HD, Encore HD, HBO HD, HDNet,
HDNet Movies, Showtime HD, STARZ! HD, TNT HD, WB HD and Wealth TV.
OPENTV AND QVC LAUNCH TWO-WAY INTERACTIVE TV SHOPPING OpenTV and QVC on May 3 announced an agreement to develop, integrate and launch a real-time interactive television shopping service. The QVC interactive application will enable viewers to use their
remote control to make purchases in a real-time environment, just as the product is being showcased on QVC, and effectively extends the current means by which QVC customers can purchase goods from just the telephone and the Internet. The interactive shopping service will use OpenTV ProSync, a product enabling pro-synchronous enhanced TV, commerce and interactive advertising. With pro-synchronous enhanced TV, viewers can interact with their television without leaving the action onscreen. The service is expected to launch initially in the summer of 2004 and is expected to be available over time to 1.3 million digital homes on both the Motorola DCT 2000 and the Scientific Atlanta Explorer set-top boxes.
OUTDOOR CHANNEL PLANS HD NETWORK
Management of The Outdoor Channel announced on May 3 plans to launch a new and separate network offering its popular outdoor programming entirely in high-definition. Outdoor Channel 2 HD is set to debut in July 2005 and will offer programming both shared and independent of the existing Outdoor Channel. The Outdoor Channel is a national television network dedicated to providing the best in traditional outdoor programming to America's 82 million anglers, hunters and outdoor enthusiasts. The network features hunting, fishing, rodeo, shooting sports, motor sports, and related lifestyle programming. The Outdoor Channel reaches approximately 26 million homes through a combination of cable and satellite viewers.
VOOM ADDS ESPN CABLE CHANNELS
High definition TV service VOOM announced on May 3 that it is significantly enhancing its sports programming offerings with the addition of both HD and standard-definition (SD) ESPN Cable Channels including ESPN, ESPN HD, ESPN2, ESPN
Classic and ESPNEWS. In addition, VOOM customers can now enjoy in-depth, 24-hour golf coverage on The Golf Channel or turn to top news coverage from the leading cable news channel, FOX News Channel. VOOM's HD package includes more then
35 HD favorites such as HBO HDTV, Cinemax HDTV, Showtime HD, STARZ! HD, Playboy HOT HD, The Movie Channel HD, Bravo HD+ and Discovery HD Theater. In addition, VOOM features an all- inclusive package of
21 commercial-free channels created by Rainbow Media, available exclusively to subscribers of VOOM. The service also includes popular cable channels in standard definition such as TNT, Nickelodeon, Disney, TBS, CNN, A&E and AMC, as well as over-the-air digital local broadcast channels delivered in HD where available.
Internet
http://www.voom.com
NEXTEL TO PAY BROADCASTERS TO VACATE AIRWAVES Nextel Communications Inc. on May 3 proposed paying about $512 million to move the electronic news gathering operations of television broadcasters from airwaves Nextel wants to use. The proposal, part of a larger plan to resolve interference with public safety communications, would free up airwaves Nextel has been seeking access to from the Federal Communications Commission. Broadcast auxiliary services are used to send signals, like video footage, between two points, like from a remote truck to a studio. The services are used by local television stations across the country.
The National Association of Broadcasters and the Association for Maximum Service Television joined Nextel in proposing the plan for moving their broadcast news gathering operations from the 1.9 Ghz band to 2025-2110 Mhz band. The FCC is contemplating a plan to reorganize the 800 megahertz band where Nextel operates to resolve interference with emergency services communications. The agency is considering moving Nextel to either the 1.9 gigahertz or 2.1 Ghz band, sources familiar with the matter have said. NAB and MSTV have estimated that the cost to move their electronic news gathering operations would be roughly
$512 million. If the costs ran more, Nextel would pay for additional costs, according to the company. The plan calls for moving the broadcast services over 30 months and is dependent on the FCC approving the whole Nextel relocation plan.
GORE BUYS NEWS CHANNEL
INdTV Holdings, a newly formed media company led by former Vice President Al Gore and successful entrepreneur Joel Hyatt on May 4 acquired Newsworld International (NWI) from Vivendi Universal Entertainment for an undisclosed sum. NWI will be developed by its new owners into a network offering innovative and compelling programming created by and for a target audience of 18-34 year-olds. NWI, a 24-hour channel dedicated to global news produced by The Canadian Broadcasting Corporation, has earned a reputation for journalistic excellence and a comprehensive perspective on daily world happenings.
Following its acquisition by INdTV, NWI's programming will continue to be provided by CBC. NWI is currently distributed to appx. 17 million subscriber households across the U.S. through DirecTV's most popular "Total Choice" tier, Time Warner Cable's most widely distributed digital tier, as well as Comcast systems in key markets and other cable operators.
HD-PRIME CABLE NEIGHBORHOOD STARTS BROADCASTING Three months after the launch of its AMC-10 satellite, SES AMERICOM announced that inaugural program distribution aboard the spacecraft began on May 4. The turn-up of service marks the in-orbit ribbon-cutting for HD-PRIME, America's premier cable neighborhood that reaches over 80 million homes. AMC-10 resides in its operating orbital position at 135 degrees West longitude, where it replaces Satcom C-4 and distributes half of the HD and standard definition programming delivered by HD-PRIME. The other half is currently distributed by Satcom C-3 at 131 degrees West, which is scheduled to be replaced by AMC-11 later this year. AMC-11 is an identical twin to AMC-10 and is being readied for launch from Cape Canaveral on May 19. A growing list of leading cable programmers are already signed up to use HD-PRIME to distribute dozens of standard and high definition channels, including Viacom, A&E Television Networks, C-SPAN, Court TV, Hallmark Channel, Discovery Communications, E! Networks, iN DEMAND, Lifetime Entertainment, NBC, QVC, Scripps Networks, and The Weather Channel.
TELEVISA COULD RAISE UNIVISION STAKE
Mexico's leading broadcaster Televisa said on May 3 it was continuing to look at ways to expand in the United States, including possibly raising its stake in U.S.
media firm Univision. Televisa, the biggest producer of Spanish-language media content in the world, already owns 11% in Univision, the leading U.S.
Hispanic channel, and is eyeing a bigger share in the growing U.S.-based Spanish language market.
NEW HORROR TV CHANNEL TO LAUNCH IN JANUARY Movie producer Joel Silver and his company Silver Pictures is teaming with Orchid Ventures to launch a television network for horror, thriller and suspense fans. Scream is expected to launch in January 2005 on U.S. digital platforms as a 24-hour service. Silver will oversee the creation and development of original content for the network through his entity with Robert Zemeckis, Dark Castle Entertainment. In addition, the network will feature branded Dark Castle Presents nights with films from the company, such as Gothika, Thirteen Ghosts and House on Haunted Hill. Scream is also in negotiations with two studios to license library film titles.
LOSSES UP AT DIRECTV
The DirecTV Group said its first-quarter loss broadened to $639 million from $51 million a year earlier. The results included several charges, including a $479 million charge from PanAmSat and a
$311 million charge for a change in accounting for the costs of acquiring, keeping and upgrading subscribers.
The losses were partially offset by a pretax gain of
$387 million from the sale of 19 million shares of XM Satellite Radio Holdings Inc. DirectTV's first-quarter revenue grew to $2.51 billion from $2.06 billion a year earlier, driven by an 8 per cent increase in average monthly subscriber revenue. DirecTV's first-quarter income from continuing operations, excluding the accounting change, was $177.8 million. A year earlier, DirecTV posted a loss excluding items of
$72 million, or 5 cents a share. At the company's U.S.
broadcast operations, first-quarter revenue grew to
$2.08 billion from $1.71 billion a year earlier. The unit's average monthly churn rate, referring to loss of customers, improved to 1.4 per cent from 1.5 per cent a year earlier. DirecTV U.S.'s net subscriber additions were 460,000 for the quarter, compared with 275,000 additions a year earlier. At the end of the quarter, DirecTV had 11.1 million subscribers, up 14 per cent from a year earlier. Despite the revenue growth, DirecTV's U.S. operating profit dropped to $21 million from $106 million a year earlier.
ECHOSTAR TO PHASE OUT NEED FOR SECOND DISH EchoStar Communications Corp. hopes to move within four years to a single dish that will include local television channels, Chief Executive Charlie Ergen said on May 4. Customers in 38 markets out of 119 where EchoStar offers local channels must currently use a second
satellite dish, EchoStar says, because of capacity constraints. Satellite providers that offer a single local station in a market are required by federal law to offer to carry all local channels that want to be aired, often straining capacity. Some local channels, such as Spanish language and religious broadcasters, have complained they have been marginalized by being on a second dish that consumers may not know they need if they want to get all the available local channels. Ergen told reporters that by the end of 2004 the company will offer local channels in 150 markets and 30 will likely still require two dishes but that they hope to be phased out by 2008.
ECHOSTAR POSTS LOSS
EchoStar Communications Corp. on May 6 posted a quarterly net loss of $43 million compared with a net profit of $58 million a year earlier. Revenue grew 16 per cent to $1.58 billion. EchoStar added 360,000 new subscribers in the quarter compared with 350,000 in the same quarter last year, bringing its total subscribers to 9.8 million. About 40,000 new subscribers were added through a partnership with SBC Communications, which is bundling Dish Network service with its telephone service in certain markets.
HOUSE INCREASES SATELLITE TV ROYALTIES
Legislation that could increase the money Hollywood earns from satellite TV broadcasts cleared a key House panel on May 6 as the House copyright subcommittee unanimously approved legislation renewing the nation's premier satellite law. Under the legislation approved by the subcommittee, the copyright fee agreed to in
1999 for movies and other content would rise by about the same amount as the cost of living has since the original legislation was approved. The change means that the copyright royalty fee paid by satellite TV companies would increase somewhere in the 10%-12% range at the beginning of 2005. The bill also includes language that would give the cable and satellite TV industry the same copyright payment regime.
NEWS CORP PLANS NEW PAY-TV CHANNEL
Rupert Murdoch's News Corporation is planning to launch at least one new US television channel before the end of the year. Possible formats include a business channel to challenge CNBC, the financial news network controlled by NBC, as well as one aimed at Hispanic viewers. The proposed launch would be the most visible example of the benefits to News Corp of its acquisition last year of a 34 per cent stake in DirecTV. Meanwhile, the company reported third quarter net income of $465 million up from $275 million a year earlier. Revenue rose 18.5% to $5.2 billion during the quarter ended March 31. Broadcast TV increased operating income 25% to $259 million as a result of a better performance by the Fox network and TV station group. The TV results were also boosted by higher profits from Star TV service in Asia.
NBC-VIVENDI UNIVERSAL DEAL IMMINENT
Vivendi Universal CEO Jean-Rene Fourtou said on May 6 that the deal to merge its Vivendi Universal Entertainment business with General Electric's NBC should be completed before the end of May. "The finalization of the NBC-VUE merger is a priority and needs some additional talks and the approval of Washington," Fourtou told shareholders at the company's annual general meeting. "But the conditions for the closing of the deal are fulfilled, and it should happen in the coming days, in any case in May."
The deal, signed in October, will result in a new entity, NBC Universal, owned 80% by NBC and 20% by Vivendi Uni.
A S I A & P A C I F I C
ARMENIA
VOA LAUNCHES ARMENIAN TV SERVICE
Voice of America launched a daily Armenian-language TV feed on May 3, aimed at providing daily TV stories to viewers in Armenia and the extensive Armenian diaspora throughout the Middle East and Europe. For this venture, VOA has partnered with Armenia TV, which will air the feeds during its weekday newscasts and present a 30-minute block of VOA television material every Saturday. A recent survey showed that 97 per cent of Armenians use television each week as a source of news about current events. Armenia TV reaches 52 per cent of viewers between the ages of 25 and 50 in Armenia alone and is one of the first private TV-companies in Armenia to have such an extensive reach via satellite.
Armenia TV is also available via satellite subscription in Western Europe and the Middle East, including the United Kingdom, France, Germany, Switzerland, Holland, Bulgaria, Romania, Spain, Portugal, Cyprus, Greece, Lebanon, Syria and Israel.
Amerikai Dzain Herustahandes (VOA TV Magazine) is included in each weekday news programme, broadcast at 3:00 p.m. and 6:30 p.m. local time (1000 and 1330 UTC) to audiences in Armenia. A compilation of each week's reports will air Saturdays at 11:00 p.m. local time (1800 UTC).
Internet
http://www.VOANews.com/Armenian
AUSTRALIA
HIGHER REVENUES FOR COMMERCIAL BROADCASTERS The Australian Broadcasting Authority (ABA) has released the 2002-03 Broadcasting Financial Results for commercial radio and television broadcasters. The
48 reporting television licensees achieved revenue of
US$2,521.7 million, a 6.7 per cent increase over the previous year. Of the US$2,471 million in revenue generated by the three major television networks, the Nine Network and its affiliate licensees accounted for
43.7 per cent, the Seven Network and its affiliate licensees for 30.1 per cent and the Ten Network and its affiliate licensees for 26.2 per cent.
BAHRAIN
BBC WORLD SIGNS DEAL WITH GULF AIR
Gulf Air has unveiled a deal with BBC World to carry the biggest block of BBC programming on any Middle East carrier. Passengers will have the daily updated BBC World News from June 1, and the choice of programmes such as Talking Movies, Click Online, Hard Talk and Top Gear. The News will be live from next year as satellite technology advances.
CHINA HONG KONG
HK CABLE GETS PREMIER LEAGUE RIGHTS
Hong Kong Cable Television, a subsidiary of i-Cable Communications (ICAB), said it has secured exclusive rights to broadcast England's FA Premier League games in Hong Kong for the next three football seasons starting August this year. i-Cable is the media and communications arm of blue chip Wharf (Holdings). Hong Kong Cable, also known as Cable TV, said on May 4 "no less than" 370 FAPL matches will be broadcast in their full length for the coming season, compared with the maximum 270 matches it aired in Hong Kong in each of the previous three seasons. Cable TV had 656,000 subscribers at the end of 2003.
CETV TO TERMINATE ANALOGUE TRANSMISSIONS Multimedia company Chinese Entertainment Television
(CETV) has decided to end its analogue contract with AsiaSat. The company will be paying more than $12.5 million for the termination of contract, as the network switches from an analogue to a digital format.
Though CETV will pay AsiaSat a one-time penalty for ending its analogue contract, the broadcaster will continue to use AsiaSat-3S for digital transmission.
YES TV TO REPRESENT PLAYBOY
Playboy TV International (PTVI) has appointed Yes Television in Hong Kong to represent it in key markets in the region. As part of the arrangement, Yes Television's president, Lanny Huang, will work with PTVI's business development team to identify cable and satellite opportunities in Hong Kong, China, Korea and Taiwan for both PTVI programming and for the international channel.
INDIA
ANIME CHANNEL PREPARES FOR LAUNCH
On July 5, SPE Networks will launch its dedicated anime channel, Animax, in India, on The One Alliance, a platform operated by Sony Entertainment Television India (SET India) and Discovery Networks India. The 24-hour Animax South Asia is the anime network's fifth operation in the region, following launches in Japan, Taiwan, Hong Kong and Southeast Asia. The channel currently reaches about 5.5 million homes in Asia.
Programming will be dubbed in Hindi and English and scheduled into four blocks. Kids' Hour, on weekdays from 3 p.m. to 7 p.m., will target younger children and will air in Hindi. Youth Hour, from 7 p.m. to 9 p.m., will target tweens and teens, with English-language programming. Mega Zone, from 9 p.m.
to 11 p.m., will feature English-language programs for a slightly older demographic. The Weekend Anime block will also be dubbed into English.
MAX TO LAUNCH AROUND THE WORLD
MAX, the hybrid channel from Sony India stable, will soon be launched in international markets across the direct-to-home (DTH) and cable TV platforms, but without its cricket content. MAX is being positioned as a movie and events channel overseas and the launch is slated for mid-June. In India, MAX has a mix of live cricket, movies and events programming. MAX channel can't show cricket in countries like the US, UK and Australia. Acquisition of cricket properties by Sony Entertainment Television (SET) including live telecast of the World Cup is limited to India and, in some cases, to a few neighbouring countries. Even for live telecast of ICC cricket tournaments till 2007, including the two World Cups, SET India has acquired exclusive cable and satellite TV rights only across India, Pakistan, Sri Lanka, Bangladesh, Singapore and Malaysia. For movies and events, SET India's acquisition involves worldwide rights. This is because movies and events are shown on Sony TV, the Hindi general entertainment channel of SET India, which already has a presence in countries like the UK, US, Australia and South Africa. With Hindi movies being extremely popular in many countries, MAX decided to take the channel to the international market, without its strong live cricket programming.
NEW ZEALAND
TVNZ PLANS THIRD TV CHANNEL
Television New Zealand Limited (TVNZ) has announced its plans for a third channel, the Sunday Star Times has reported. TVNZ Chief Executive Officer Ian Fraser said the channel was set to be a mix of re-runs of current affairs, local shows, minority programmes and live broadcasts from parliament. He said it could be go to air by the end of the year if given the go-ahead. Critics have suggested the channel's main purpose is to block competitors and pump up the broadcaster's local content hours. Frazier has denied this, saying the new channel, still in the early stages of development, would allow TVNZ "to extend its charter commitment, not to replace it". He said plans would include live broadcasts of parliament's question time and a reasonable amount of parliamentary debate.
The channel would also allow some current affairs programmes and other successful local shows to get a second airing.
SINGAPORE
DISNEY LAUNCHES PLAYHOUSE
The next phase in Disney's expansion into Asia takes place on May 15, when its preschool educational Playhouse Disney Channel launches on Singapore's StarHub CableTV platform. Having started life as a branded block on the Disney Channel on the same platform, the full Playhouse service will be commercial-free and will be aimed at kids 2-5, broadcasting in English with a Chinese option.
Following the launch of the new premium service, the Disney Channel will in June drop from StarHub's enhanced tier into the basic tier. Playhouse Disney launched in Hong Kong and Indonesia last month and Disney plans to roll the network further into Asia this year.
TAIWAN
GIO SAYS FUNDS LACK FOR PUBLIC TV
The Government Information Office (GIO) said on May 3 that a second public television station would require an extraordinary amount of funding. "The annual proposed budget for two public television stations would be NT$9 billion, which the GIO doesn't have,"
GIO Deputy Director-General Hung Chiang-chuan told the legislature's Education and Culture Committee. "If there is going to be another public television station, the funding needs to come from other government sources." The question of whether to privatize Taiwan Television (TTV) and China Television System (CTS) is still being reviewed by the Executive Yuan. In recent years, the proliferation of cable television stations has caused ratings for TTV and CTS to drop. Facing fierce competition, these stations have had trouble staying afloat.
A F R I C A
NIGERIA
NEW SKIES AND FSTV LAUNCH DTH SERVICE
New Skies Satellites on May 3 announced that Nigeria's first indigenous pay-TV operator, Frontage Satellite Television (FSTV), has selected New Skies' powerful
NSS-7 satellite to launch a new direct-to-home (DTH) television service. The service will launch commercially this month, initially broadcasting 20 channels of premium news, sports and entertainment programming from Africa, Asia, Europe and America.
Content will be aggregated by Kingston inmedia in the United Kingdom, which will uplink the programming to
NSS-7 for deliver direct to more than 20,000 current subscribers via a 54 MHz transponder on the satellite's high-powered West Africa Ku-band beam.
FSTV's channel line-up includes programming from BBC World, Big Screen Africa, CNBC, CNN, Discovery Civilization, E Entertainment, EWTN, Fox News, FS Africa, FS Entertainment, FS Miracle Channel, FS Movies, FS Sports 1, God Channel, HGTV, MTA, MTV Base, Nickelodeon and Sony AXN. FSTV is the brainchild of Reuben Famuyibo, chief executive of FSTV, and a leading figure in Nigerian business and politics. The initial launch of the service will comprise 20 channels, of which four will be dedicated FSTV productions - news, sports and general entertainment - with the remainder being premium-quality pass-through channels. The service will initially be supported by subscription, using a novel pay-as-you-go scratch card system, with limited advertiser support planned as the service penetration grows. Ultimately, up to 30 channels are planned to complete the service.
Linear Mode
