TELE-satellite News - Number 33/2004 - 15 August 2004
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A weekly roundup of global TV news sponsored by
TELE-satellite International
Editor: Branislav Pekic
* Issue 08-09/2004 of 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
RECORD TV VIEWERS FOR OLYMPICS
The International Olympic Committee expects that 3.9
billion people will watch this year's games on
television, with more than 300 channels set to
transmit about 35,000 hours of coverage. At the 2000
Games in Sydney, 29,600 hours were broadcast to 36.1
billion households. According to the IOC, more than 60
per cent of broadcasters have promised to enhance
their coverage compared with four years ago. NBC alone
is promising 1,210 hours, three times its Sydney
coverage, while Canada's CBC and TSN are to provide
440 hours, and CCTV will offer more than 600 hours. In
Germany, ZDF and ARD have tripled their coverage to
1,400 hours. And in South Africa, Supersport
International, SABC2 and SABC3 will provide 1,965
hours. This year's games also promise mobile phone and
online streaming video and highlight clips from
several broadcasters, as well as some
HD coverage.
T-SYSTEMS SUPPLIES OLYMPIC COVERAGE TO BROADCASTERS
T-Systems is to broadcasting video, sound and data
signals during the Olympic Summer Games in Athens for
the
European Broadcasting Union (EBU), the Canadian
Broadcasting Corporation and ARD and ZDF. T-Systems
will also send the video signals of the Olympic
football tournament in High Definition Television
(HDTV) to Tokyo for Japanese television and broadcast
programmes via satellite news gathering (SNG) for the
Greek Telecommunications Organization (OTE). The
Deutsche Telekom subsidiary is a partner for the EBU
during the Olympics. Together with the OTE, T-Systems
will send the signals and data via submarine cable
from the International Broadcasting Center in Athens
to T-Systems' PoP (Point of presence) in Milan as a
gateway to Deutsche Telekom's global network. This
network will be used to broadcast the data to Germany,
Canada and some 70 EBU members in Europe, North Africa
and the Middle East. Within Germany, signals will be
transmitted to the national broadcasting network of
the public service broadcasting organisations which
permanently connects state and regional broadcasting
studios with high bandwidths. T-Systems will be
providing ZDF Mainz, SWR Baden-Baden and RBB Potsdam
with sound and video signals, as well as
broadcasting-specific signals for reporting,
conference and data applications.
GERMANY
KIRCH AND UNIVERSAL STUDIOS CLOSE TO SETTLEMENT
Universal Studios is close to an out-of-court
settlement in its four-year-old lawsuit with bankrupt
German rights giant KirchMedia. Insiders at Universal
and KirchMedia said on August 9 the two sides have
agreed on a deal that would see the German group pay
Universal $80 million-$100 million in exchange for
dropping the suit. Universal first filed against
KirchMedia in 2000, alleging breach of contract
related to a 10-year output deal Kirch signed with the
Hollywood studio in 1996. Kirch allegedly reneged on
the deal in 1999, refusing to pay the agreed price for
Universal's films and television shows.
PROFITS UP AT PREMIERE
Pay-TV platform Premiere swung to a half-year
operational profit (before interest, tax, depreciation
and amortization) of ?18.1 million ($22.2 million)
from an $18.8 million loss the previous year, while
revenue grew 3.6% to $598 million. Net deficit of
$86.2 million was down from $135 million in the same
period last year. While Premiere's subscriber base has
grown 7.5% to 2.9 million since last year, it has
fallen 14.3% since January.
VIVA MEDIA REPORTS INCREASED PROFITS
German music TV group Viva Media on August 12
announced a profit of ?2 million for the second
quarter of this year. The figure is up from a ?424,000
profit over the same period in 2003. Sales at the
Cologne-based group slipped slightly, hitting ?27.4
million, a fall from ?29.2 million in second quarter
2003. Last month, Viacom acquired Viva, the main
competitor to the company's MTV network in Europe, for
around ?310 million.
2Q PROFITS DOUBLED AT PROSIEBENSAT1
Private broadcaster ProSiebenSat.1 Media said on
August 13 that second-quarter profit more than
doubled, helped by higher sales and cost cuts, while
net income rose to ?47.6 million from ?22.1 million a
year earlier. Sales in the second quarter rose 6 per
cent to ?496 million. The company reiterated its
forecast from last month that the TV advertising
market would grow 2 per cent this year. ProSiebenSat.1
forecast that EBITDA would rise to ?330 million this
year, helped by an increase in sales and lower costs.
Sales growth in the second half will be slower than in
the first six months, according to chief financial
officer, Lothar Lanz. The company said it expected to
raise its share of its German TV audience by 0.5-0.6
percentage points in 2004. ProSiebenSat.1 plans to
enter the pay-TV market to become more independent
from the advertising market, although it will not
invest in Premiere, de Posch said. ProSiebenSat.1
abandoned negotiations at the end of July over the
purchase of three of Premiere's channels after the
companies could not agree on the price. The Sat.1
channel posted a ?38.7 million pre-tax profit,
compared with ?8 million a year earlier. Pre-tax
profit at the ProSieben channel rose 33 per cent to
?63.1 million; N24 had a pre-tax profit of ?100,000
compared with a ?5.5 million loss; and Kabel 1 more
than doubled its profit to ?9.6 million.
Internet -
http://www.prosiebensat1.com/
SPAIN
PRIVATE MEDIA REPORTS Q2 RESULTS
Private Media Group, a worldwide leader in
premium-quality adult content, announced on August 12
an increase in net income to ?1.2 million for the
three months ended June 30 compared to ?0.1 million
for the comparable period in 2003. For the three
months ended June 30, net sales were ?9.3 million
compared to ?10.1 million for the comparable period in
2003. Broadcasting sales increased 128% to ?1.3
million primarily as a result of the broadcasting
launch of the proprietary Pay-Per-View Satellite &
Cable Television Channel, the Private Fantasy Channel,
in the United States in February 2004.
UNITED KINGDOM
C4 PREPARES FOR MERGER WITH FIVE
Channel 4 has hired investment bank UBS to scope out a
strategic review of its long-term options, including
the possibility of a merger with either rival Five or
another broadcaster. The network is looking at a range
of options, and while the possibility of a merger with
RTL-owned Five fits the bill, it is by no means a
foregone conclusion. Channel 4 and Five are looking
for ways to consolidate in the U.K. market place,
where both face the possibility of being squeezed by
an enlarged ITV, since the merger of Carlton and
Granada last year. The two television channels have
admitted to holding informal merger talks, although C4
has also had discussions with other broadcasters,
including cable company Flextech. Channel 4 is
publicly owned but funded entirely by advertising and
profits are badly hit if viewing figures fall. The
channel made a small profit on revenues of £770
million last year, but had been in the red in 2002.
Five, controlled by German broadcaster RTL, is also
facing stiffer competition.
BSKYB WANTS TO USE FREESAT NAME
The BBC is in talks with BSkyB about allowing the
commercial broadcaster to use its "Freesat" trademark.
BSkyB, whose shares have collapsed after poor results,
announced last week that it was launching the
free-to-air satellite service, which has not yet been
named, in October. Commentators have already dubbed
the service, which offers 200 channels for a £150
one-off payment and no subscription charge, "freesat".
BSkyB's chief executive, James Murdoch, said that it
was still in talks with the BBC about what involvement
it could have in the Sky service. A BBC spokeswoman
confirmed that one option being discussed is to allow
BSkyB to make official use of the Freesat name, which
it has copyrighted. The BBC has been in talks for
months with broadcasters, including BSkyB, about
launching its own free-to-air, digital satellite
service.
TURNER TO TRANSMIT CHANNELS INHOUSE
Turner Broadcasting Systems Europe has confirmed plans
to bring the transmission of all its European
entertainment channels in-house from January 2006,
replacing the current play out deal with Ascent Media.
This decision will involve building a new tx facility
and hiring some 40 additional staff at the company's
Great Marlborough Street, London headquarters. Some
12,000 hours from channels Cartoon Network, Boomerang,
Toonami and TCM will also be digitized. The
digitization of content is all part of a plan to allow
the company to explore emerging revenue streams such
as video-on-demand and broadband. Cartoon Network,
TCM, Boomerang and Toonami are available in the region
from 17 feeds in 25 local-language versions.
BSKYB TO SUE EDS
BSkyB is preparing legal action against U.S. computer
services company Electronic Data Systems Corp. over a
disputed contract terminated almost two years ago, EDS
confirmed on August 9. The satellite TV company hired
EDS in November 2000 in a deal worth about £61 million
over two years to provide systems to help it handle
call center inquiries. EDS confirmed Sky has "asserted
a contractual claim over the deal." It said Sky took
back responsibility for system delivery in early 2002
and that it terminated its relationship with Sky at
the end of 2002. Sky said last week it "anticipates
issuing and serving a claim in the near future for a
material amount against an information technology
solutions provider."
AT THE RACES WANTS $93 MILLION FROM RACEHORSE OWNERS
BSkyB and outdoor entertainment group Arena Leisure
confirmed on August 10 that they have issued a £51
million writ against a group of Britain's leading
racecourse owners to recover unexploited media rights.
Under the banner of their joint-venture channel At the
Races, Sky and Arena have been engaged in a
long-running wrangle with racecourse owners after the
collapse of their previous media rights deal that also
involved Channel 4. The former deal was declared
invalid by antitrust regulator the Office of Fair
Trading in April because it involved collective
bargaining that was deemed anti-competitive. Arena-led
venture At the Races is arguing that it put cash
upfront to secure the media rights under the first
deal and that those rights should revert to At the
Races after the deal's collapse.
FIVE SIGNS OUTPUT DEAL WITH SONY PICTURES
Free-to-air channel Five is bidding to outdo pay-TV
rivals by inking a deal with Sony Pictures Television
International to air a number of Hollywood
blockbusters before the pay window. Five has secured a
film package comprising Terminator 3: Rise of the
Machines; Bruce Willis vehicle Tears of the Sun; and
Charlize Theron's Trapped. Terminator 3 is expected to
premiere later this year. "This is a huge coup for the
channel," said Five's managing editor and director of
acquisitions, Jeff Ford. "Five's viewers will get to
see some of 2003's biggest blockbusters only 15 months
after their cinema release." The deal also covers
terrestrial premieres of Charlie's Angels: Full
Throttle; Anger Management; Bad Boys II; Maid in
Manhattan and Daddy Day Care.
SPL SPORTS CHANNEL LAUNCHES
The new Scottish Premier League sports channel has
launched, allaying fears that fans could miss the kick
off of the new season. Setanta has had a difficult
summer with rumours persisting that the channel has
not generated an adequate number of subscribers to
meet the cost of paying what is due to the 12 SPL
clubs. The company has strongly maintained they are on
course and the first payment was made to clubs on the
first of this month. Insiders claim fewer than 20,000
fans have subscribed so far for the football package -
costing £119 for the season - below the break-even
target of 81,000. Setanta is paying Scottish
Television £50,000 a game to use its equipment and
production staff to provide live SPL coverage. And
cable giant Telewest is not offering Rangers TV or
Celtic TV to its 256,000 Scottish customers. Earlier
this week, the Evening Times reported how the
Irish-based channel was on the verge of clinching a
deal to screen live Scottish rugby matches.
SKY TO SELL FILMS VIA SATELLITE
Satellite TV viewers will be able to buy and download
films through their dishes under plans being drawn up
by BSkyB, according to a report in "The Times". The
broadcaster is understood to be in talks with
film-makers over securing the rights to distribute
film via satellite. Viewers would load the films onto
a personal video recorder with enough electronic
storage space to hold a library of programmes. The
service would challenge the video-on-demand services
already provided by cable-television companies. Sky
will take its first step towards the service at
Christmas, when it launches a new version of its Sky+
personal video-recorder service. The new version will
have much greater memory capacity, and will retail for
£399.
N O R T H A M E R I C A
CANADA
EUROCHANNEL TO LAUNCH IN OCTOBER
With approval granted from the Canadian
Radio-television and Telecommunications Commission,
the pay-TV network Eurochannel is expecting to roll
out in Canada this October, following a launch in Peru
this September. Featuring films, series, documentaries
and other genres from Europe, the network first
launched in Brazil in 1994 and has since expanded its
carriage across Latin America, including Mexico,
Colombia, Chile, Venezuela, Panama and Argentina. On
September 1 it will be available on Peruvian cable
operator Telefonica Multimedia, adding 150,000
subscribers to its distribution base. The channel is
also targeting the U.S. Hispanic market with
Eurochannel Hispanic subtitled in Spanish, and
Eurochannel USA, Eurochannel High Definition and
Eurochannel On Demand, all subtitled in English.
BELL EXPRESSVU EXPANDING ITV SERVICE
The country's largest satellite TV company is
expanding its iTV offerings after launching a new
portal that allows users to play arcade, trivia and
educational games with their television remote. Bell
ExpressVu, with a customer base upwards of 1.4
million, has launched GameGalaxy, which will offer
Canadian customers with iTV-ready receivers more than
25 free and subscription-based games, all played by
using a
remote control. Content is being sourced from
multiple providers and features game titles such as
Bob the Baloney Frog, Dudes, Jade Trade, Moonbase
Mayhem, Stubby the Sock Gnome, Thrust II, and Sumo
Tsunami. Games will be rotated on a regular basis to
give subscribers a new gaming experience each week.
ExpressVu will continue to introduce additional iTV
services, including enhanced content for the 2004
Summer Olympics in Athens, and special coverage of the
Bell Canadian Open PGA golf tournament September 6-12,
2004.
UNITED STATES
INCREASED LOSSES FOR PLAYBOY ENTERPRISES
Playboy Enterprises has posted a loss of $8.3 million
in the second quarter of this year, versus the net
loss of $900,000 at the same time last year. Revenues,
however, did grow by $2.7 million to $78.7 million.
The company attributed the loss partly to $6 million
in charges related to the company's recent debt
reduction activities. In the entertainment segment,
revenues remained flat at $33.8 million. While
domestic TV revenues fell $1.4 million to $22.5
million, international TV revenues were up 16 per cent
to $9.9 million, primarily from the company's U.K.
networks. Profit, however, fell from $6.5 million to
$2.3 million.
FOX COLLEGE SPORTS ON AIR IN SEPTEMBER
The new Fox College Sports will go live September 4
with college football on its 50-yard line. The three
regional college sports networks -- Fox College Sports
Pacific, Central and Atlantic -- had been scheduled to
go on the air later in the fall. But, Fox Sports
Networks president Bob Thompson now says the schedule
has been moved up. It's a combination of quick work by
the networks' behind-the-scenes personnel and a
realization that the channels are best served by
starting the same time as the college football season.
CROWN MEDIA NARROWS LOSSES
With revenues for the second quarter up 23 per cent to
$55.8 million, Crown Media Holdings has narrowed its
loss from $49.4 million to $40.6 million. Highlights
for the quarter include a 33-per cent gain in ad
revenues to $31.5 million, and a 9 per cent increase
in subscribers worldwide to 117.9 million as at June
30. The channel has 60.6 million subscribers in the
U.S., a growth of 17 per cent. Internationally,
meanwhile, the company notched up just a 1 per cent
growth, to 57.3 million. Crown Media is looking to
offload the international Hallmark channels. Former
Five chief executive David Elstein is considered by
many as the likely buyer of the international
operations, although Liberty Media has reportedly
expressed interest in the European business, while HBO
is said to have its eye on the Latin American venture.
LOSSES DOWN ALSO AT LIBERTY MEDIA
Second quarter loss at the Liberty Media Corporation
is down to $398 million from the $730 million posted
at the same time in 2003, on consolidated revenues of
$1.85 billion, thanks to gains at Discovery and Starz
Encore. At the Networks Group, which includes Starz
Encore and Discovery-in which Liberty holds a 50 per
cent stake-revenues were up 15 per cent to $956
million. At Starz Encore alone, revenues were up 6 per
cent to $238 million thanks to an increase in the
subscriber base, with an operating profit of $48
million. At Discovery, meanwhile, second quarter
revenues were up 20 per cent, to $588 million.
Domestic earnings were up 20 per cent, to $423
million, while the international networks saw 24 per
cent growth in revenues, to $123 million.
PROFITS DOWN, REVENUES UP FOR ECHOSTAR
EchoStar Communications Corp. said on August 9 its
second-quarter profit fell from a year ago as costs
increased but revenue rose. The company added 340,000
new satellite television customers in the quarter.
EchoStar said it had a net profit of $85.3 million,
compared to $129 million in the year-earlier period.
Service revenue rose to $1.66 billion from $1.34
billion a year earlier and total revenue, including
equipment sales rose to $1.78 billion from $1.4
billion a year earlier. EchoStar said that for every
new subscriber it signed up it spent about $431 in the
second quarter compared to $408 in the same quarter a
year earlier. Monthly revenue per subscriber rose to
$55.59 from $51.69 in the same quarter a year ago.
EchoStar said it ended the quarter with 10.1 million
customers.
JPMORGAN INVESTS $25 MILLION IN CSTV
College Sports Television has gotten a $37 million
boost from investors. CSTV announced on August 11 it
had secured $25 million from JPMorgan Partners, a
private equity firm owned by JPMorgan Chase & Co,
along with another $12 million from the private New
York City Investment Fund and other investors. The
company owns a cable TV channel of the same name and
Web site. The funds will be used for marketing,
programming and possibly acquisition. The New York
City Investment Fund, along with several existing CSTV
investors, has contributed an additional $12 million
to the round. CSTV investors include Constellation
Ventures, Allen & Co. and The Coca-Cola Company.
Internet -
http://www.collegesports.com
JEWISH TELEVISION TO LAUNCH IN 2005
A 24-hour cable and satellite channel targeted at a
Jewish demographic is planning to launch in the U.S.
in early 2005 with a slate of news and reality driven
shows. The channel's CEO, John Odoner, noted that
Jewish Television's programming would feature "a
distinctive slant on current events and cultural
trends." According to him, "JTV can target adults
18-49 with a mix of news, comedy, reality shows,
business, sports, movies, music, religion, health and
Hollywood. Certain programs naturally will carry a
unique Jewish perspective, which happens to be
entertaining to a much broader audience." The network
will be funded by advertising, a home shopping
component and license fees, but JTV is waiving those
fees initially in order to secure carriage deals.
Programming in development includes news throughout
the day; a debate-show entitled Two Jews, Three
Opinions; a comedic political commentary show called
Jewishly Incorrect; Genesis 9:0, a Bible-based game
show; and a series featuring music videos. In
addition, JTV is working with Sal Anthony, the CEO of
Forever Films International, to develop reality-based
shows. And the network has picked up a range of
biographies and documentaries from two programming
suppliers in Israel.
Internet -
http://www.jtelevision.com
CABLEVISION AND TW CABLE OVERCOME DIFFERENCES
Cablevision and Time Warner Cable have overcome their
differences, at least temporarily, returning two
regional sports channels to New York viewers while
they iron out an agreement. MSG Network and Fox Sports
New York, both owned by a division of Cablevision,
returned to millions of Time Warner Cable viewers in
New York and upstate on August 11 after New York
Attorney General Elliot Spitzer brought the two sides
together. Details of the agreement, including how long
it will last, weren't immediately available. The
channels had been dark to Time Warner Cable
subscribers since August 1, when the two companies
couldn't come to an agreement over carriage fees for
MSG and Fox Sports New York.
MORE NFL GAMES IN HDTV
Broadcast networks are putting high-definition TV
front and center with an expanded lineup of HD games.
CBS announced on August 10 that it would broadcast
three NFL games in HD in the 2004 season. Fox last
week said it would increase its commitment to
high-definition football with as many as six games per
week during the regular season. ABC's Monday Night
Football" games are in high-definition also. Football
is part of the broadcast networks' push toward digital
programming, with HD service as a way to heighten the
viewing experience. The networks also offer other
sports programming in high definition, including Major
League Baseball on Fox and CBS's Masters and NCAA
Final Four and Championship. Sony will sponsor the
high-definition coverage on CBS, with 1,080 lines of
picture resolution and 5.1 digital sound. The
partnership will stretch all the way through the AFC
championship Jan. 23, 2005. Fox, which announced it
would offer primetime programming in HD by fall 2004,
is using the 720p format that sends 60 complete
pictures per second to TV screens.
DISNEY PROFITS UP 20%
Third quarter revenues at The Walt Disney Company hit
$604 million for the period ending June 30, 2004, 20
per cent up on net income, while total revenues were
$7.5 billion, versus the $6.3 billion generated in the
third quarter of 2003, posting a 17 per cent increase.
At the media networks, revenues were up just 8 per
cent, to $2.9 billion, but operating income grew by 15
per cent to $673 million. This growth came from the
cable segment, thanks to higher affiliate and
advertising revenue at ESPN, higher affiliate revenue
at the domestic and international Disney Channels, and
higher advertising revenue at ABC Family. These gains
offset the increased programming costs at ESPN and
Disney Channel. The broadcast segment, meanwhile, saw
operating income fall, due to higher programming and
production costs.
BETTER RESULTS FOR NEWS CORP
Rupert Murdoch's media conglomerate News Corp. on
August 11 reported an 8 per cent increase in earnings
for its fiscal fourth quarter, thanks in part to
growth in its cable TV business and the Fox broadcast
network. The company earned $399 million in the
quarter ending June 30, up from $370 million in the
comparable period a year ago. Revenues grew 20 per
cent in the quarter to $5.52 billion from $4.59
billion. The company reported that operating income at
its cable networks rose 60 per cent in the quarter
over the same period a year ago. Operating income at
News Corp.'s broadcast TV unit rose 21 per cent versus
a year ago, as advertising revenues at Fox grew. For
its full fiscal year, News Corp. reported net earnings
of $1.65 billion, versus $1.05 billion in the prior
fiscal year. Full-year revenues grew 20 per cent to
$20.96 billion from $17.47 billion.
GREEN LIGHT FOR PANAMSAT SALE
The DirecTV Group has been given regulatory clearance
by the FCC to offload its satellite division PanAmSat.
The company has reached a deal with equity firms
Kohlberg Kravis Roberts & Co., Carlyle Group and
Providence Equity Partners for about $2.6 billion, a
$200 million reduction on the initially agreed price
as a result of the failure of the Galaxy 10R satellite
last week. The deal should be complete by August 20.
FOOTBALL CHANNEL MORE SUCCESFULL THAN EXPECTED
Nearly two years and 5 million viewers after launch,
GolTV has become one of the most popular channels on
the Dish Network satellite system. The Miami-based
channel airs its own soccer news updates and reports
from soccer matches around the world. Programming is
in Spanish, but GolTV provides real-time English
translation through the SAP option on most television
sets. In addition to the Dish Network, GolTV is
available on Comcast, Adelphia and several independent
cable systems. Constantino Voulgaris, GolTV director
of business development and information technology,
says they expect to sign a deal with other systems,
such as DirecTV, by the end of the year. "We expect to
have 8 million viewers by the end of the year," said
Voulgaris. For millions of Hispanic soccer fans
frustrated with U.S. sports channels that focus mostly
on European leagues, GolTV provides matches and news
updates on Latin American as well as European leagues.
Uruguayan parent company Tenfield Corp. has invested
between $40 million and $50 million in GolTV. Although
the original business plan called for the channel to
break even within five years, Voulgaris expects the
channel will start making money in the third or fourth
year.
CABLEVISION GAINS NEW SUBSCRIBERS
Cablevision Systems Corp. reported that it gained
nearly 7,500 cable TV subscribers in the second
quarter. But its Voom nationwide satellite TV venture
posted an $81.5-million loss in the quarter ended June
30, contributing to a $187-million overall loss for
the company, compared with a $158-million profit in
the second quarter of last year. Revenue jumped 25 per
cent to $1.2 billion. Voom, which launched in October,
had only 25,000 subscribers nationwide as of June 30
and has been losing one in five new customers as it
struggles with various technical and marketing
hurdles. Its second-quarter loss was bigger than its
$55-million loss in the first quarter. Recently, Voom
raised prices to cut back on its losses. As part of an
effort to gain new financing, it promised to cap
future investments in the service at $150 million a
year and $600 million total.
NBC OLYMPIC COVERAGE SETS RECORD
U.S. viewers are able to access to an average of 70
hours of Olympics programming per day. "This is the
first time ever in U.S. television history that all 28
Olympic sports will receive some coverage," says David
Neal, NBC vice president for the Olympics. "Nobody's
come close or even attempted to come close to that in
the past. This is a huge advantage, especially since
we're doing it without an increase in manpower and
equipment." Through six NBC Universal-owned networks
-- NBC, CNBC, MSNBC, Bravo, USA and Telemundo -- plus
the NBC high-definition platform, that is more
coverage than what was produced in total for each
Olympics until ABC delivered 76.5 hours for the
Montreal Summer Games in 1976. The round-the-clock
programming adding up to more than 1,200 hours
surpasses the total offered by the past five Summer
Games combined -- Sydney, Atlanta, Barcelona, Spain,
Seoul, South Korea, and Los Angeles. NBC will present
selected events of the Athens Olympic Games in Dolby
Digital 5.1 to its customers with high-definition
television service. For viewers watching the analogue
NTSC broadcast, the NBC presentation of the Games will
include Dolby Pro Logic II. The Opening and Closing
Ceremonies will be presented in Dolby Digital 5.1,
along with many of the most popular events, including
track and field, gymnastics, and swimming. To receive
Dolby Digital 5.1 audio in their home, viewers will
need an over-the-air HDTV receiver, an HD cable, or HD
satellite set-top box. For viewers who are not able to
receive high-definition broadcasts, Dolby Pro Logic II
will provide a five-channel surround sound experience
over their existing setups.
L A T I N A M E R I C A
BRAZIL
MTV BRASIL TO LAUNCH SECOND CHANNEL
MTV Brasil, the local Portuguese-language version of
the global music network, will launch a second channel
in Brazil in May 2005, said the company's programming
director, Zico Goes. While the existing channel airs
talk shows, series and several other kinds of
programs, MTV2 will focus on music programming only,
such as videos, live concerts and docs. The emphasis
will be on Brazilian and international pop/rock music.
MTV2 will target adults 20-40, while the existing
channel focuses on teens and young adults up to 29.
A S I A & P A C I F I C
AUSTRALIA
ABC WANTS MORE MONEY
The chairman of the Australian Broadcasting
Corporation, Donald McDonald, has warned unless
government gives the public broadcaster more money, it
may have to cut back some services. Mc Donald told a
forum organised by the Australian Industry Group, the
ABC can no longer keep up with the growth of new media
platforms and struggles to meet the expectations of
its traditional media commitments. He has also
indicated the government may have to re-examine the
ABC's charter, which is more than 20 years old and
does not take account of changes to the media
industry.
SUPPORT FOR FOURTH FREE TV NETWORK
The Australian Consumers Association has joined the
call for a fourth free-to-air TV network, while also
proposing greater relaxation of digital TV regulation
in the first of the reviews into Australian TV. The
federal Government announced four statutory reviews of
its digital TV legislation in May, and initial
comments have been received. The first review covers
issues such as whether networks Seven, Nine and Ten
should be able to multi-channel - or offer extra TV
channels on their digital TV spectrum. The ACA
disagreed with the Government's move to segment the
digital TV debate into four, saying it was "essential
to contemplate the bigger picture of how the digital
TV change should be reshaped as a whole". In that
regard, it said there should be a fourth digital-only
TV network. Then regulation should be relaxed so
existing TV networks could "use their spectrum as they
see fit". That would enable them to multi-channel,
provide high-definition TV channels, new data services
and enhancements but they should not be allowed to
offer pay-TV services through free-TV aerials, the ACA
said. The ACA joins John Singleton's Macquarie Media
and Sony Pictures TV in the call for a new TV network,
although new Communications Minister Helen Coonan
recently said she was against the idea. For its part,
the Australian advertising industry has called on the
Federal Government to allow the free-to-air networks
to broadcast extra channels, arguing there is "no
technical, economic or public interest reason" not to
do so.
NETWORKS UNHAPPY WITH OLYMPIC TV COVERAGE
The Nine Network, Network Ten and the Australian
Broadcasting Corp. have sent a legal letter to the
International Olympic Committee regarding restrictions
on their coverage of the Athens Games imposed by local
Olympics rights-holder the Seven Network. Australia's
fourth free-to-air broadcaster, the multicultural SBS
is not a signatory to the letter as it has an
agreement with Seven as a complementary broadcaster.
The three networks said they received notice from
Seven on Tuesday of "supplementary news access
rules"
that they claim are unfair. These rules say that
non-rights-holders cannot put to air their own
material obtained in a designated precinct area in the
same 24 hours in which it is shot.
ABC WANTS FEWER CONSTRAINTS ON DIGITAL TV SERVICES
The Australian Broadcasting Corporation (ABC) has
argued in a submission to the federal government that
unless there is an increase in the choices offered to
consumers, there is little prospect for digital
television taking over the current analogue television
signal by the government's deadline of 2009. ABC
Managing Director Russell Balding said that the ABC
should be permitted to offer additional services,
through digital multichannelling, without artificial
constraints. "If the ABC is allowed to broadcast a
full range of programmes, such as news, drama, comedy,
on digital multichannels, it would encourage more
people to make an investment in digital television.
This is certainly the experience in other markets such
as the United Kingdom," Balding said.
ASA SIGNS PAY-TV DEAL
The Australian Soccer Association (ASA) has signed an
agreement with a pay-TV company to provide "live"
coverage of the new national competition from next
year. In a three-season deal, Fox Sports will show up
to all four competition matches live each round, with
live coverage of all finals games. Fox Sports says it
will also screen a weekly highlights program, along
with pre-game and post-game coverage.
BOULOS ATTEMPTS TO LAUNCH NEW PAY-TV SERVICE
Failed ethnic pay-TV businessman Mike Boulos is
attempting to launch a new pay-TV service as his
Television & Radio Broadcasting Service remains mired
in receivership. Boulos's wife, Regina, registered a
new business, called United Broadcasting
International, in mid-July just two weeks after TARBS
was pulled off the air. TARBS's main creditor,
satellite company PanAmSat, called in receivers
Price-waterhouseCoopers in early July after TARBS
failed to make an estimated $40 million payment. Apart
from PanAmSat, TARBS's main creditor is CityWest, a
company owned by Boulos which owns the property which
was TARBS's headquarters. PWC has advertised the
business for sale - its main asset is the estimated
60,000 subscribers - but no other details of the
receivership have been released. Boulos is understood
to be in discussions with satellite provider Optus for
access to transponders on its B3 satellite. As the
owner of the former TARBS headquarters and a creditor,
Boulos is arguing the satellite uplink facility on the
building's roof belongs to him. Boulos is also
believed to own some programming rights himself, and
has been trying to re-sign ethnic channels previously
on the TARBS platform. Last month, Boulos said he had
invested $200 million in TARBS, which had been close
to break-even when the receivers were appointed.
FOXTEL STILL MAKING A LOSS
Dominant Australian pay-TV player Foxtel posted a net
loss of A$109 million for the 12 months to June 30,
much worse than the A$61 million loss the previous
year. The figures reveal that the cost of converting
Foxtel's service to digital in time for the March 2004
launch are to the blame for the company's failure to
improve its bottom line - and for debt climbing to
A$323 million from last year's A$60 million, although
revenues actually improved by 18% to A$767 million. By
June 30, 310,000 orders had been taken for the digital
service, 91,000 of which are new subscribers. Foxtel
has about 1.1 million subscribers in total, including
those managed by other pay-TV players such as Optus.
It hopes to have all customers using the digital
service in 2006 - and to break even by then.
PREMIER LEAGUE IN DOUBT FOR SBS
Australian fans will have to pay $48.95-a-month a
season if all coverage of English Premier League
action moves to pay-TV channel Foxtel. SBS has had the
free-to-air rights for the Premiership for several
years through a deal it struck with Foxtel, which owns
all the Australian broadcast rights to the
competition. SBS has shown a live match from the
world's most popular league once a week for the past
few years as well as a high-rating highlights package
for close to a decade. Soccer fans greeted the
prospect with outrage, claiming ordinary supporters
would be marginalized and that the Federal Government
should amend its current anti-siphoning laws, which
virtually ignore soccer. While SBS may lose the
English game, it will still carry coverage of the
Italian Serie A, is negotiating for a highlights
package from Spain's Primera Liga, and will increase
its coverage of the UEFA Champions League.
BRUNEI
PLAYHOUSE DISNEY EXPANDS COVERAGE
>From this month, preschool network Playhouse Disney
adds the Asian state of Brunei to its footprint,
adding to recent carriage deals in Hong Kong,
Singapore, South Korea, Malaysia and Indonesia.
Brunei's pay-TV operator Kristal Astro will air the
channel 24/7, in a move that "underscores the huge
potential of the under-served preschool audience,"
said Raymund Miranda, managing director of Walt Disney
Television International (Southeast Asia/Korea).
Kristal Astro already carries the Disney Channel among
its 40+ channels.
CHINA - HONG KONG
TVB NEARS TO RECEIVE GUANGDONG LANDING RIGHTS
Hong Kong's Television Broadcasts expects to receive
landing rights in Guangdong province and sign a
revenue-sharing agreement with mainland media
authorities by the end of next month, the South China
Morning post has reported. Under the arrangement, TVB
will establish an advertising sales joint venture with
Guangdong's Southern Broadcasting Media Group (SBMG),
allowing it to distribute - and collect advertising
revenues from - its Cantonese Jade and English Pearl
channels on 10 networks in nine Pearl River Delta
cities. SBMG will also give TVB a profit guarantee,
according to TVB Director and Group General Manager Ho
Ting-kwan. Final approval will be needed from various
government units including the State Administration of
Radio, Film and Television in Beijing, its provincial
arm in Guangdong and the Ministry of Commerce.
HIGHER PROFITS FOR I-CABLE
Hong Kong's dominant pay-TV operator, i-Cable
Communications, reported better-than- expected 55 per
cent profit growth in the first half. Net profit rose
to HK$147 million for the first six months, from
HK$95.3 million a year ago, while turnover rose 11 per
cent to HK$1.15 billion. Despite competition from
multi-channel providers PCCW's NOW Broadband TV and
Television Broadcasts' Galaxy Satellite Broadcasting,
i-Cable added 57,000 subscribers bringing total as
never been a bigger commitment to the domestic league
from a broadcaster. The performance contributed HK$235
million to the company's operating profit. i-Cable
secured the exclusive broadcast rights for English
Premier League, Italian Serie A, Spanish Primera Liga,
Italian Serie A and German Bundesliga games, which
will bring higher advertising income at the expense of
high costs. In the first half, programming costs rose
15 per cent to HK$367 million.
FIJI
PAY-TV PLANS ENCOUNTER PROBLEMS
Fiji Television Limiteds planned foray into pay-TV has
met its fair share of turbulence before it started. It
has spent $US3.5million in capital expenditure but the
project is expected to cost the company more in court
cost. Early this year Fiji TV made a commitment to
provide free-to-air and Sky signals. It originally
opted to use the NSS-5 satellite to provide 12 TV
channels including an expanded pay-TV service called
Sky Pacific. However, New Skies Satellite has denied
they have signed any contract with Fiji TV for the
provision of that service. Meanwhile, Fiji TV is
already in discussion with Intelsat for the use of
their transponder on Intelsat 701. According to Chief
executive Ken Clark, the package of signals is on
schedule for September, and maybe by the end of
August. The new service is expected to include
free-to-air Fiji One, movie and sports channels, a
childrens entertainment channel, news and information
services, Hindi language programmes and documentary
and natural history channels. Some channels being
considered are the Discovery Channel for natural
history and documentaries, Nickelodeon for children,
and MTV for music entertainment. The company's
shareholders are Yasana Holdings a company owned by
Fijis 14 provinces (51 per cent), TV New Zealand (5
per cent), Telecom Fiji (14 per cent); and the
remaining 30 per cent held by individuals. A rival
television service Pacific Broadcasting Services will
also use the Intelsat 701 satellite to provide a new
pay-TV service in Fiji soon.
INDIA
DAWOOD INVESTING IN TV NETWORK
Tightening its noose on Dawood Ibrahim, India has
asked Nepal to probe his association with a
Kathmandu-based TV network company in accordance with
UN Resolution 1526 that calls for freezing of assets
of listed terrorists. This is perhaps New Delhi's
first formal request for action against the firm named
Space Time Network that it earlier held largely
responsible for provoking anti-Indian riots in Nepal
in December 2000. Owned by Jemim Shah, a Nepalese of
Kashmiri origin, the network runs Channel Nepal (a
satellite infotainment channel covering 52 countries),
Space Time Network (Nepal's largest cable TV) and
Dainik Space Time (a Kathmandu-based Nepalese language
daily). The Nepal government has asked Space Time to
submit its accounts. In April 2001, keeping in mind
India's opposition to the company, Nepal had tried to
stop Space Time from launching Channel Nepal.
Undeterred, the channel began its telecast a few
months later, setting up its up-linking facilities in
Thailand.
STAR TAKES OVER AT VIJAY TELEVISION
Star India has taken sole ownership of the
Tamil-language Indian channel Vijay, acquiring a
44-per cent stake from UTV Software Communications for
Rs. 310 million ($6.7 million). The move is in line
with UTV's strategy to focus on its kids' channel
Hungama TV, which is set to be launched in October of
this year. The network will be exclusively distributed
by STAR.
ESPN STAR SIGNS DEAL WITH DD
ESPN-Star on August 13 signed a pre-bid agreement with
Doordarshan on telecast rights for matches to be
played in India over the next four years. BCCI
president Jagmohan Dalmiya had indicated that they
were expecting to raise the stakes to close to Rs 1000
crore, after getting Rs 240 crore five years ago. The
entire process, however, nose-dived with the
government making it mandatory to show India's matches
in India on Doordarshan.
MALAYSIA
MITV LOW FEES TO ATTRACT 100,000 SUBSCRIBERS
MiTV Corporation expects the low flat-fee structure of
its pay-TV service to attract 100,000 subscribers
within a year of its launch this December. Chief
operating officer Jonathan Chan said MiTV expected its
subscriber base to grow by 150% to 250,000 in 2006 and
a further 40% to 350,000 in 2007. He said a flat
subscription fee would be charged for the initial 50
channels that the company planned to launch before
year-end. MiTV's entry into the pay-TV market would
pose direct competition to Astro All-Asia Networks.
Astro TV offers 48 channels and has penetrated an
estimated 20%-25% of the country's 5.5 million
households. Astro is expected to offer better content
once its new satellite Measat-3 is launched in the
first half of 2005.
KOREA
OLYMPICS AIRED IN BOTH KOREAS
North Koreans will be able to enjoy the Athens Olympic
Games on TV, including the broadcast of North Korean
games and the joint North-South entrance of Olympic
teams at the opening and closing ceremonies of the
games, with the help of Korean Broadcasting Commission
(KBC) of South Korea. In the past, the North has
usually pirated the broadcasting of international
sporting events, without buying the legitimate
broadcasting rights. The deal became possible with the
Asia-Pacific Broadcasting Union (ABU)'s permission to
let North receive free broadcasts and South Korea's
KBC's agreement to provide
technical support to the
North. The KBC plans to receive broadcasts from Athens
through a submarine cable for South Korean viewers and
hook it up to a Thailand's Thaicom satellite for the
North. Thaicom is the satellite the North has been
using for broadcasting. According to an official with
the South Korean government, the cost for the
satellite service will reportedly be between 300
million South Korea Won [$259,450] and 400 million
Won. The KBC will pay about 150 million Won, while the
government plans to fund the rest through the
inter-Korean cooperation fund. South Korean
broadcaster Sky TV is carrying 24-hour-a-day coverage
of the Athens games on one of their HDTV satellite
channels. The Korean Broadcasting System said it would
broadcast an hour or two per day of Athens coverage
using high-definition signals; its over-the-air
broadcasts cannot be seen everywhere in the
metropolitan area.
THE PHILIPPINES
ABS-CBN PROFITS UP BY 10%
ABS-CBN Broadcasting Corp. on August 10 reported that
its net profit rose 10 per cent in the first six
months of the year. ABS-CBN Vice President and Chief
Financial Officer Randolph Estrellado said the media
giant posted a net income of US$10 million as of
end-June, compared with US$9.1 million in the same
period last year. Estrellado said the company may
still be able to meet its 10-per cent growth in income
and revenues for the full year, although it is more
likely to post a "high single-digit growth" rate.
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