Satellite News

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Digital television in Austria is making headway via satellite and terrestrially, but continues to show low acceptance amongst cable households, according to a digitalisation report presented to the Parliament.
The report predicts that in two years’ time virtually no more households will receive analogue television terrestrially or via satellite. By mid-2008 47% of the 3.4 million TV homes were already receiving digital television – 17% more than at the end of 2006. The remaining 53% still relied on analogue reception.

The main increase was in the number of digital-satellite households. This was followed closely by digital-terrestrial television (DTT). By June 30 2008, at total of 535,000 DTT receivers had been sold. DTT coverage, which stood at 90% of households in mid 2008, should rise to 95% by the time the last analogue transmitters are switched off in early 2011.

Cable remains the problem child with 39% of TV households being analogue cable households while only 3% have opted for digital cable television. Media authorities KommAustria and RTR say this is due to the attractive offer available in analogue and the fact that digital value-added services such as video-on-demand and pay-per-view seem to provide insufficient incentives for viewers to make the switch – either because they don’t know enough about them or because of their additional costs. The media watchdogs see high-definition television as a possible driving force for the digitalisation of cable networks.

Cable operators face increasing competition from IPTV packages distributed by telecommunications companies on their ADSL broadband networks. AonTV, operated by Telekom Austria, was already reaching 50,000 households by mid 2008.

Meanwhile, mobile television signals via DVB-H cover more than 50% of the Austrian population – a leading figure Europe-wide – but the report did not contain data pertaining to what extent the offer was actually used.

© Rapid TV News 2009

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Nagravision, as expected, has confirmed it will provide conditional access to Italy’s new Tivu-sat system. It is somewhat strange that a self-proclaimed ‘free-to-view’ bouquet of Italian public broadcast networks needs to encrypt its programming, and will certainly disappoint Italian expats living outside the country, who – until now – had enjoyed unfettered access to their programming from home for years past.
Tivu-sat goes live in June, and will contain Italy’s publicly-supported networks from national broadcaster RAI as well as channels from Mediaset, the commercial operator ultimately owned by the Berlusconi family.

A statement from Nagra said: “Channels available on the new Tivu Sat set-top box are the same as the ones viewed free today on DTT set-top boxes. Channels include RAI 1, RAI 2, RAI 3, RAI 4, CANALE 5, ITALIA 1, RETE 4, LA7, BOING, IRIS, along with many others., The Tivu Sat channels will be scrambled with Nagravision and decoded with smartcards to enforce the rights of sports and movies suppliers, thus ensuring that content shall not be viewed outside of the Italian territory.”

It is estimated that up to two million families may require the Tivù Sat set-top boxes as a consequence of the upcoming analog switch off. The retail price of the smartcard, though not currently defined, is expected to remain low, while covering the cost of the cards. No subscription fees will be charged to the consumer and there is no expiration date on the smartcard.

"The analog switch off is coming, and yet, millions of households will require support and services to keep their analog sets receiving signals," said Carlo Stramaglia, Head of Nagravision Italy. "It's an honour to be selected for this ambitious project and to play a key role in keeping services available to these families."

Tivu is a joint venture between Mediaset (48%), RAI (48%) and Telecom Italia Media (4%). The main focus of this JV is to be the entity that will drive the transition from the terrestrial analog broadcast system to the digital one. Tivu will act as the "umbrella" brand for all the analogue national and regional broadcasters that are currently migrating to the new digital terrestrial transmission (DTT) system. Tivu will also provide the satellite service called "Tivu Sat" that will allow users, living in the Italian territory that will not be covered by the DTT signal, to enjoy the DTT TV channels using a satellite set-top box.

© Rapid TV News 2009

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German pay-TV operator Premiere will buy back satellite platform Premiere Star. An agreement has been made with all fellow shareholders, who hold a total of 40.2%, for the gradual buyback of their shares.
Premiere wants to make the payments over the next four years from July 2009 until July 2013 with the largest amounts being paid in 2012 and 2013. Financial details were not revealed.

“The Premiere Star channels are an important building block in our programming strategy as well as a valuable part of our content offer and are therefore part of Premiere’s core business,” CEO Mark Williams said in Munich.

Premiere Star was launched as a 100% subsidiary of Premiere in September 2007. Since then nine further shareholders have come on board: HypoVereinsbank (10 per cent%), Turner Broadcasting System (8.5%), Avenue Capital Group (6.5%), EM.Sport Media (5%), Medienengagement East (3.6%), tmc Content Group (3%), Atlas Ventures (1.1%) and Wellington Partners (1.1%). The platform’s managing director Wolfram Winter holds 1.4%.

Premiere Star currently distributes 18 thematic channels for a monthly fee of €19.99 via Astra (19.2° East) for DTH households in Germany, Austria, Switzerland and Liechtenstein. In contrast to Premiere, which has been focussing on exclusive channels and content, Premiere Star bundles channels which are also available in competing pay-TV packages, for example Unitymedia’s arenaSAT or Kabel Deutschland’s Kabel Digital Home.

According to industry sources, the new Premiere management wants to concentrate on a broad offer rather than a line-up of exclusive channels which, with regards to carriage feeds, is more costly for the broadcaster. It is speculated that the buyback of Premiere Star, as part of the revised strategy, could pave the way for the platform’s channels to be integrated into Premiere’s main package.

Premiere spokesman Torsten Fricke declined to comment: “Today’s announcement only means that Premiere Star’s shareholding structure will change – not more and not less.” He added that this was not a statement regarding strategic development or other changes.

© Rapid TV News 2009

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Peter Chernin is leaving News Corp and the Fox Studio. Chernin had been in post for 12 years, and had worked for Murdoch for some 20 years. His contract expires on June 30. Here’s Rupert’s response memo to News Corp staff in which he outlines his future, and stresses that News Corp now has more than $5bn in cash in the bank. Murdoch says nothing as to Mr Chernin’s successor.


“Dear Colleagues:

“Today, we are announcing that Peter Chernin, our President and COO, will not be renewing his employment contract. Peter will be taking up the opportunity to start a new motion picture and television production venture with Fox. Many of us who have worked with Peter over his 20 years with the company can attest to his leadership, his diligence, and his wisdom. I can also testify to Peter’s friendship, dedication, and honesty. He has been a close colleague and an ally to me for many years.

“While Peter has distinguished himself at News Corp, he has also, increasingly and tirelessly, circled the globe in support of Malaria No More, which has achieved nothing short of remarkable results. Let us all wish him the best of luck, and the greatest success, as he embarks on this new chapter of his career, both as a professional and as a role model for an executive who gives back.

“As you all know the downturn we are operating in is more severe and global than anything we have seen before. No company is immune to its effects. I want to take this opportunity, today, to write to you about how we will manage such an important leadership transition, and why I am convinced that today our company is not only well-positioned financially and competitively, but is on the cusp of a new phase of growth. Remember, we began priming ourselves for a weakening economy over a year ago. We have managed expenses and capital expenditure prudently, and strengthened our balance sheet. Following the partial sale of NDS, we will have over five billion dollars in cash, and this year we should exceed $3.5 billion in adjusted operating income.

“In the past, we have met downturns with vigor, often departing from the herd. We have emerged much stronger.

“Achieving our ambitions will require change and renewal. So throughout 2009, I will continue to work closely with all of our companies to make sure that we are organized and resourced in the best20way to take advantage of this extraordinary point in time. We will press our advantages and invest in our great franchises. And, of course, we will keep our eyes on big prizes, some of which may arise only once in a generation.

“Across News Corp. we have a broad and deep reservoir of extremely able executives. Over the years we have accomplished great things. People understand, and have acknowledged, our entrepreneurial spirit as well as our doggedness; our willingness to take risks, our contrarian investment style; and our commitment to long-term development and shareholder value.

“Many of you have told me how hungry you are to work more closely across our companies. Many of us have been frustrated by the things that can get in the way of that. From systems that don’t talk to each other to incentives that struggle to capture the opportunity and aspiration of our total group. These obstacles are obvious to us all. There will be a streamlined management structure between our Los Angeles-based business units and the rest of the company. Peter and I will be communicating more on this over the next few months. For the time being, of course, the talented executive team at the Fox Group will continue to report to Peter.

“Now is also an ideal opportunity to streamline and enhance many of the corporate and administrative functions of the business. There will be cost savings as a result, but the more important aim is to be leaner so that we can better leverage our collective talent and expertise. For instance, and beginning immediately, H.R. functions throughout all our units will report to Beryl Cook in New York as well as their division heads. Beryl reports directly to me.

“We have worked hard to develop and advance the best among us. The renewal of great companies begins within themselves. Pursuing an edge through superior talent is a priority. This will be a key focus for us in 2009.

“In the coming months, I will be reaching out to you with new questions, and with new plans.

“We are in the midst of a phase of history in which nations will be redefined and their futures fundamentally altered. Many people will be under extreme pressure and many companies mortally wounded. Our competitors will be sorely tempted to take the easy beat, to reduce quality in the search for immediate dividends.

“Let me be very clear about our company: where others might step back from their commitment to their viewers, their users, readers and customers -– we will renew ours.

“The direction of the business now and over the next few years will define the character of our company for decades.

“We have always thrived on change and challenge. This was true when we began building a newspaper business in Australia. Just as it was when we created BSkyB and developed a fourth U.S. network, the Fox Network, when conventional wisdom dictated that there was room for only three players. It was true when we launched Star, now the leading network in India, and the Fox News Network and Sky Italia.

“The best things we have done, and there are many examples, have defied conventional wisdom, often in the teeth of fierce opposition and near universal disbelief in our capabilities.

“Over the past 12 months I have spent time with you in India and China, in Italy and the UK and many other countries. We have brought Dow Jones into the fold, extended our influence in Europe, and been at the center of reporting the arrival of a new American president and the impact of the global financial crisis. We’ve told extraordinary stories, in theaters around the world and on page and screen from Mumbai to Malibu.

“Our own international reach is a profound strength. We have intelligent, creative and highly motivated colleagues around the world who are ambitious for themselves, for their countries, for our customers and for our company. The result is that where others simply seek distribution, we are building durable businesses at scale. We are also creating large franchises in marketplaces that will grow at a faster pace in the coming years and, increasingly, our businesses are based on direct customer relationships.

“We must always be acutely aware of our responsibility to shareholders, and to create real value for them. This is entirely consistent with, and in many cases inseparable from, the enormous social value we have created over the decades. We provide information and entertainment to billions, enabling them to improve their lives and those of their families. There is genuine value in the values of our company – these are values that are even more important in a world confronting so much today.

“We believe in communities. The very idea of community is broad, and encompasses interests that cross national, ethnic and demographic borders. We are all members of many different communities, whether it be of people who are passionate about Hollywood films, or care about living in a healthy environment, or use a local jobs website, or trade commodities in Chicago and London, relish soccer whether in China or Nigeria. These communities are our communities, as they read, evaluate and create everyday.

“That is why, most of all, I believe in the community that is our company.

Rupert Murdoch”

© Rapid TV News 2009

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EUTELSAT DOUBLES ITS BROADCASTING RESOURCES AT 9 DEGREES EAST WITH


DEPLOYMENT OF THE EUROBIRD™ 9A SATELLITE

Paris, 24 February 2009
Eutelsat Communications (Euronext Paris: ETL) today announces the entry into commercial service of its EUROBIRD™ 9A satellite at 9 degrees East. Redeployment of the satellite was made possible with last week’s entry into service at 13 degrees East of HOT BIRD™ 9, which released EUROBIRD™ 9A (formerly HOT BIRD™ 7A) for its new commercial mission to support the rapid pace of growth at Eutelsat’s 9 degrees East broadcast neighbourhood. It will replace EUROBIRD™ 9 at this position, doubling operational resources from 20 to 38 transponders.


The smooth transfer of 175 television channels and 25 radio stations onto EUROBIRD™ 9A was completed at 01.00 GMT this morning by Eutelsat’s control centre, working closely with broadcast clients and providers of uplink services.


Opened in May 2007, Eutelsat’s 9 degrees East neighbourhood has, over a period of one year, seen a two-fold increase in the number of programmes it broadcasts with the launch of new TV-programme bouquets such as Hello HD from Hungary, Platforma DV from Russia, and Roots Global, which is aimed at Indian communities across Europe. With its close proximity to Eutelsat’s premium HOT BIRD™ neighbourhood, it is possible to watch channels from both neighbourhoods with a single DTH dish equipped for dual-feed reception.
The 9 degrees East neighbourhood is also developing into a key location for delivering channels to cable operators via the KabelKiosk service operated by Eutelsat’s German subsidiary.

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Following an action initiated by competitors Free and SFR, Paris’ Court of Commerce has ordered France Télécom, Orange’s mother company, to “stop tying the subscription to Orange Sport to the sale of a triple-play offer.” In clear terms, Orange must make its premium channel available to all French TV platforms, unexclusively.


Saying such a practice was leading consumers away from competitors, the Court pronounced a three-month €50,000 constraint for each day of delay if the decision is not implemented during the coming month. Orange is expected to appeal the decision.

Orange Foot, now called Orange Sport, was launched last August after Orange won the rights for three lots of the French football League One for which it paid €203 million. Only Orange triple-play subs can watch the matches.

France’s leading telco group is currently experiencing bad times. Besides the loss of iPhone exclusivity at the beginning of this month, the group is also under investigation from the Conseil de la concurrence about its exclusive content offers.

Recently, Canal+ CEO Bertrand Meheut denounced the fact that Orange was tying sales of sport and cinema channels to its broadband service. Finally all Orange premium channels are under scrutiny as they worry both IPTV rivals and Pay-TV group Canal+.

© Rapid TV News 2009

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French network M6 has decided to postpone the launch of its new 8pm news bulletin to September 7. The French private channel, whose investment in this programme would amount €5 million, said this decision is led by the current economic situation.


According to reports, ad revenues linked to this news edition would not have meet the network’s forecasts. M6 prefers remaining cautious in the light of the January and February results. Over the first two months of 2009, ad revenues decreased 9%.

Last week, TF1 group also announced record ad revenue losses. France’s leading private network reported total revenue of €2,595 million, down 5.3 % in 2008. This includes a 4.1 % fall in advertising revenues, with a 6.1% peak reduction in Q4. That was the worst advertising result since 2001.

TF1 CEO Nonce Paolini has already announced a €60M cost reduction plan, that includes drastic cuts in programming costs.

© Rapid TV News 2009