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January 3, 2008

IN THIS ISSUE

This newsletter is a biweekly rundown of global (Europe, Asia, Latin America) multichannel television developments in cable, DBS, advanced services (high-speed Internet, VOD, VoIP, interactive TV, IPTV) and program sales.


EASTERN EUROPE

CME Inks Licensing Deal for MTV Romania

Central European Media has concluded a licensing deal with MTV Networks International that will give CME operational control of MTV Romania.
Read More...

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ON DEMAND

MGM and Orange in VOD Deal

France Telecom’s Orange has licensed a package of new features and classic movies from MGM. The deal will make MGM films available on demand on Orange’s 24/24 Video Service.
Read More...

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GLOBAL BRIEFING

J:COM Battles Telcos With Advanced Services

Japan’s largest MSO, J:COM, is increasing the speed of its Internet product to 160 Mpbs and deploying advanced VOD system with an HTML Web browser. Read More...

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Around the World
 
In what is usually a slow news period, dealmakers remained busy during the holiday season.

Spain’s largest media company Prisa announced it would like to take complete control of pay TV operator Sogecable and acquire the 50% it doesn’t already own. The proposed deal values Sogecable at about $5.7 billion.

Mobile operator SFR plans to pay $6.6 billion for the 60% France’s second largest broadband operator Neuf Cegetel. SFR already has a 40% stake.

Carlyle will pay $1.5 billion for a 35% stake in French cable operator Numericable from Civen, which will retain 35% of the MSO.

In Russia, mobile operator VimpelCom is planning to pay about $4.3 billion for Golden Telecom, which owns IPTV provider Corbina Telecom.

Also in Russia, broadcaster CTC Media is buying two production companies Costafilm and Soho Media for about $50 million.

To strengthen its TV and IPTV business, Ericsson acquired TV consultant and systems integration company HyC Group in Spain.

But, Bertelsmann has reversed an early December announcement and said it has no immediate plans to buy the 10% of RTL Group that it doesn’t own.

Regulators were also surprisingly busy in the run-up to the New Year.

As expected, British regulators ruled that BSkyB must either sell its 17.9% stake in ITV or cut it to less than 7.5% and agree not to take a seat on the ITV board. Thanks to ITV’s slumping stock price, a forced sale could produce a significant loss for BSkyB.

In the ongoing premium phone scandal in the U.K., regulators slapped Channel 4 with a $2.2 million fine for cheating viewers of Richard & Judy and the Deal or No Deal program who called premium lines.

German TV pioneer Leo Kirch continues his comeback. After winning rights to German soccer in 2007, Kirch now appears close to settling his $2.4 billion lawsuit against Deutsche Bank. Kirch has long blamed comments about his poor credit standing by Deutsche Bank’s chairman for the collapse of his media holdings in 2002.

Australian regulators are now proposing that analogue broadcast signals be cut off in all major cities by 2009, with the final transition to digital occurring by 2013.

In Canada, regulators have finally approved CanWest’s takeover of Alliance Atlantis.

But Canada’s public broadcaster CBC is getting out of the international program sales business and has inked a deal for Fireworks International to handle its library and new product.

In the increasingly competitive Russian pay TV landscape, National Telecommunications announced plans to launch an IPTV service in Moscow sometime in early 2008 and a new Russian DTH service Russian TV Time has begun trials.

Also in the booming Russian market, Disney has concluded a major deal for its films and TV programs with Channel One in Russia. The studio calls the deal its largest to date in the market and notes that their revenues from Russia have increased by 400% in the last three years.

In the on-demand sector, Telefónica has launched Terra TV in Spain; the free ad-supported VOD service allows users to access TV programs over the internet.

BSkyB has inked deals with Paramount and Warner Bros. that will make their films available on its PC download service, Sky Anytime. The recently relaunched service now has content from all six major U.S. studios.

In Germany, the country’s largest cable operator Kabel Deutschland has started a trial of a 100 Mbps high-speed Internet service in Hamburg.

Also in Germany, pay TV operator Premiere has shut down its international DTH bouquets Premiere Turkish-XL and Premiere Turkish.

In Israel, cable operator Hot and DTH provider Yes have launched HDTV packages.

In Japan, Google will provide search and e-mail service for mobile phone customers of NTT DoCoMo.

Several new research studies provide good news for vendors as they move into 2008. Worldwide sales of IPTV equipment grew 23% in the third quarter to $682.5 million, according to Infonetics Research. A new study from In-Stat predicts that global sales of headend equipment to telcos will hit $732 million by 2011.

But a new report from iSuppli Corp. indicates that IPTV in China is progressing slower than expected. Operators signed up about 846,000 subscribers at the end of 2007, lower than the 1.3 million they had projected.

A separate study by Chinese regulators has found that the market now has 23.65 million digital cable subscribers at the end of the November 2007, an 81.3% increase in the last year.

On the tech front, Ecuador TV Cable has deployed Volicon Observer system to scan and monitor its channel lineup.

In Taiwan, Markwell announced that it will use UTStarcom’s RollingStream solution for its IPTV offering.

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ONE ON ONE
Bhavneet Singh
Managing director and senior VP, Emerging Markets
MTVNI

In the last two years, MTV Networks International has made a major push into emerging markets, making its Emerging Markets division the fastest growing part of the company. Bhavneet Singh, the head of those efforts, talked to Multichannel News International about the company’s strategies for expanding its presence in rapidly growing but often extremely challenging territories.Read More...

 

Around the Net

U.K. Continues to Dominate the Formats Business
In a wrap-up of the global format business, Variety reported that formats from the U.K. remain the most popular but mainland Europe and the U.S. are gaining ground. “The U.K.’s share of the market was 33% for the first nine months of 2007, according to research by FremantleMedia, whose international bestsellers include the Idols franchise. The U.S. and the Netherlands were the next biggest players in the format sales biz -- each responsible for a 21% share of the market.”
For More…

New Berlusconi Investigation
Italian authorities are investigating new allegations against former prime minister and media mogul Silvio Berlusconi, “this time for allegedly trying to bully state broadcaster RAI into casting two unknown actresses for roles in a popular soap opera as a way to curry favor with the male parliamentarians” who were having affairs with the women, The Hollywood Reporter noted. “According to a seven-minute wiretap transcript of a conversation between Berlusconi and the head of RAI's drama division, Agostino Sacca, Berlusconi promised favors and then became aggressive in trying to persuade Sacca to put the two actresses on the air” in the hopes of convincing the two politicians to vote his way on an upcoming bill.
For More…

A 2008 Forecast Central and Eastern Europe
Consumer take-up of digital TV services and the pace of deals in the pay TV industry should speed up in Central and Eastern Europe in 2008, Chris Dziadul predicted in his annual prognosis for the region. But he offers a mixed forecast for IPTV. “The take-up of IPTV services in [Central and Eastern Europe] has been mixed to date, and this is unlikely to change much next year,” he writes. “Operations such as Russia’s Stream TV and the Czech Republic’s O2 TV that are already doing well will probably continue to do so, while those that have yet to take off (Hungary’s T-Home TV, for instance) may still find the going tough. The real change could be in the number of players, with several alternative telcos likely to launch services.”
For More…

Saving the U.K. Kids’ TV Industry
As many kids were unwrapping their Christmas presents, Save Kids TV, an industry and lobbying group that represents kid’s TV producers in the U.K., provided a wrap-up of the most significant regulatory developments in the children’s TV business in 2007. While U.K. industry continues to be buffeted by economic woes and onerous regulations, the association argues that it made some headway in 2007 in changing public opinion and marshaling support for more government support.
For More…

 
 
 
 

EDITOR:
George Winslow
503-295-3725
gpwin@comcast.net

Steve Donohue
Editor, Digital News
646-746-6540
Sdonohue@reedbusiness.com




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