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Austar boss: Pay-TV ‘a marathon not a sprint’
John Porter, CEO of Australian pay-TV platform Austar, said yesterday that 2009 would be “a challenging year for everyone” but added that the subscription TV business was “a marathon, not a sprint.”
In a statement accompanying Austar’s full year 2008 results, Porter said that “even if growth slows compared to 2008, we will continue to build our earnings for the years to come. One of our greatest opportunities is the depth of knowledge we hold about our market. We understand the challenges facing regional Australia, we understand the likes and dislikes of our customers. Through that deep understanding, we will continue to adjust our product, our promotions and our marketing to make sure that we still meet our earnings requirements but are as flexible as possible to meet the needs of existing and potential customers.”
Austar would still achieve double digit EBITDA growth in 2009, Porter asserted. EBITDA growth in 2008 stood at 20%, rising to A$209 million. That reflected, said the company, an 11% increase in revenue to A$632 million but only a 4% increase in poerating expenses to A$141 million. Profit was up 7% at A$114 million.
Porter said: “We believe that the key to success in this current environment is prudent investment in growth, while focusing on cost control and continual improvement in how we operate our business. EBITDA growth of 20 percent while keeping our operating cost increases to four percent is evidence of our ability to achieve operating leverage.”
Subscriber numbers rose by 51,484 to 720,270. Of these, 72,719 – 12% - take the MyStar PVR service which launched in February 2008, exceeding expectations.
© Rapid TV News 2009
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Hispasat hosts Euro HDTV Forum
Spain's satellite operator Hispasat has hosted in Madrid, over two days, more than fifty professionals from the main companies and organizations of the European audiovisual sector during the VIII European HDTV Meetng, supported by the European Commission.
Participants included SES Astra, the BBC, CARTV, EBU, Eutelsat, Impulsa TDT, Mediaset RAI, PT Comunicaçoes, Premiere, RTVE, Sky Italia, Sogecable, Telefónica Servicios Audiovisuales, SVT, TV3 and ZDF.
Executives debated the future both of high definition TV in the continent and of new technologies such as 3D and ultra definition TV (Super High Vision).
During these meetings the participants highlighted the importance of HDTV in the present economic situation since this technology maintains a "strong" appeal for European economic development. Numerous European operators also presented their own progresses in the HDTV field.
Since its beginning Hispasat has represented Spain's HDTV Forum in the corresponding European Forum. The satellite operator prides itself on the innovation and the quality services provided by HDTV and 3D TV as differentiating elements placing satellite solutions at the forefront.
Hispasat already transmits several HD channels on Sogecable's pay TV operator Digital+ and Portuguese operators ZON TV Cabo and Meo Sat. Also the company is working on other HD projects such as Proyecto Palco HD co-financed by the country's Ministry of Tourism, Commerce and Industry.
© Rapid TV News 2009
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Turkey’s Dogan creates political stir
Turkey’s leading media mogul is Aydin Dogan and he has heavily criticised the nation’s prime minister, Recep Tayyip Erdogan, accusing Mr Erdogan of muzzling negative comment and becoming increasingly intolerant of critical voices.
Dogan Holdings controls 3 mainstream TV channels, as well as partnering CNN in the CNN-Turk news station. Dogan also own 7 newspapers including Hurriyet and Milliyet, as well as 28 magazines.
Mr Dogan’s history with the ruling AK Party is strained, given that he was also hit with a massive $500m fine recently for alleged tax avoidance, which is denied and being contested. Dogan says the fine was out of all proportion to what was a minor and routine tax examination.
“Mr. Erdogan came to power using democracy. He is a product of democracy, but he can accept democracy only for himself," said Aydin Dogan, speaking to the Wall Street Journal yesterday. "He cannot accept side components of democracy such as free media."
Dogan said seven of his companies are being investigated by tax inspectors. Relations with the government, he told the WSJ, first "went haywire" early last year when his media outlets reported on the business dealings of Mr. Erdogan's son and family members. Dogan's newspapers started digging into a criminal case in Germany involving a Turkish charity accused of funneling funds to Mr. Erdogan's AK Party.
© Rapid TV News 2009
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Spain's cultural channel in April

Spain's national public broadcaster RTVE is working hard to set up the country's first cultural channel to be called Cultural.es. A DTT channel created by the country's Ministry of Culture and RTVE, the channel will start tests in April with official transmissions set to begin a year after, coinciding with national analogue switch off.
The new channel will offer all about Spain's cultural activity and it will not only be transmitted in Spanish but in the country's other official languages, Vasque, Catalan and Galician.
RTVE will manage the channel and it will include in its yearly budget the necessary amounts for its running either from its own activities or from other collborators such as cultural associations.
© Rapid TV News 2009
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New services key for pay-TV resilience
Foxtel CEO Kim Williams yesterday echoed words from his counterpart at Austar earlier in the week, saying that the months ahead “appear confronting for the country and Australian business generally and this will inevitably provide Foxtel with challenges to maintain its growth momentum.”
While subscriptions rose 7% last year to reach 1.449 million at the end of December, (1.591 million including wholesale customers), Williams said the platform would need to offer new services to respond to the current challenges. These would be added progressively during the year, he said.
“The services will include a range of new channels, enhanced ways to navigate the Foxtel universe of channels and the introduction of Foxtel by Broadband. Foxtel’s broadband offer will allow subscribers to watch Foxtel on-line, exclusive events as well as shows from Foxtel’s most popular channels.”
Financially, Foxtel remains strong with leverage of 1.8 times EBITDA, no debt falling due until mid-2012 and a strongly hedged position against the fall in the Australian dollar.
EBITDA for the half-year to the end of 2008 was A$196 million, an increase of 19% on the same period the previous year. Revenue was A$908 million, up 13%, with subscription revenue up 11% to A$762 million.
Foxtel said that despite the economic climate, new subscriber additions were in line with the same period in 2007 with churn 0.2% lower at 13.3%. Nearly 45% of subscribers take the top pack and over one-third now take Foxtel iQ, with two-thirds of new subs in the half-year taking an iQ subscription. However, Foxtel HD+ signed up only 85,000 subscribers in the half-year.
© Rapid TV News 2009
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Cyfrowy Polsat unveils HD/receiver strategy
Cyfrowy Polsat unveils HD/receiver strategy
By Chris Dziadul | February 27, 2009
The Polish DTH platform Cyfrowy Polsat has outlined its plans for this year.
Speaking to Wirtualne Media, its president Dominik Libicki said that the service would introduce a five-channel HD package in the next few months.
At present the HD channels Cyfrowy Polsat offers are found in SD packages.
Libicki added that the platform would also introduce a HD receiver with a hard disk this autumn.
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UPC hits Polish digital ton
UPC hits Polish digital ton
By Chris Dziadul | February 27, 2009
UPC’s digital cable rollout in Central and Eastern Europe has reached another milestone, with its Polish service reaching 100,000 subscribers.
Launched last May, it was reported only earlier this week to have ended 2008 with 79,100 subscribers.
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