TPS undercuts rival Canal Plus

net1

TPS, France's number two satellite platform and a subsidiary of TF1 and M6, is to introduce two low-priced packages this autumn, at just E11 a month. A decoder may be rented for an additional E8 a month, or a sell-through decoder may be used.

Even with a decoder, the deal is far better than the cheapest package on the rival Canal Satellite platform (E17.99 a month plus E8 for the decoder). The aim is to increase market penetration as much as possible, reaching people who have been reluctant to take up pay TV.

One of the new packages comprises the TPS Star channel, a premium channel TPS introduced two years ago. The other consists of a selection of seven TPS thematic channels.

TPS is particularly strong in rural areas, where reception of the national channels is difficult terrestrially.

Although some of the channels are still available free of charge via analogue satellite, TPS is the only way of receiving them all digitally. TPS CEO Emanuel Florent said that he expects the offer to attract new subscribers, but that comparatively few will opt for the low level package. All new subscribers will get all of the TPS channels for the first three months and then have to select their options. The new packages should also help to reduce churn, as they provide a subscriber facing temporary financial problems with a way of reducing expenditure while remaining a subscriber.

TPS also announced that it is to introduce a number of new channels in the coming weeks and is to restructure its film channels around genres, including "TPS Home Cinema", in DVD quality and "TPS Cinextreme". It also plans to double its number of exclusive films.

TPS had 1,192 million individual subscribers as of 31 July 2003. Turnover in 2002 was E500.3 million, with a loss of E36.8 million. TPS made a profit of E7.7 million in the first half of 2003, with sales of E 261.8 million.