International News 29th October

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CASBAA: Asian broadcasters lose $1.3 billion to piracy

The pay television industry in Asia is set to lose around $1.3 billion in potential revenues this year because of pay-TV piracy. Losses are set to grow by more than 10 per cent a year, according to an industry study released at Cable and Satellite Broadcasting Association of Asia (CASBAA). The study, issued by CASBAA and CLSA Asia Pacific Markets yesterday, highlights the impact of unlicensed operators and pirate cable subscribers on regional economies including those of Hong Kong, India, Indonesia, Philippines, Taiwan and Thailand. "This is an alarming cost and it continues to escalate at a rapid pace. There have been too few efforts to regulate the issue," said Simon Twiston Davies, CEO, CASBAA. Under-declaration of pay TV subscribers in India dominates regional piracy numbers, contributing 72 per cent of revenue leakage. The combination of unlicensed operators and pirated analogue set-top boxes in Thailand, Taiwan and the Philippines contributes a further 23 per cent of the total. Hong Kong stands out in comparison with other developed regional cities such as Singapore, Seoul and Kuala Lumpur, reporting a gross loss of $28 million from pirated cable and satellite subscribers.

"This analysis underlines the importance that must be placed on efforts to deploy conditional access, by carrot or by stick, in India. Digital infrastructure upgrade provides a clear roadmap for operators in Thailand, Taiwan, the Philippines and Hong Kong," commented Simon Dewhurst, Head of Media Investment Banking, CLSA.

"Notwithstanding the fact that the regional pay TV industry has an estimated annual turnover of some $13 billion this year, piracy is undermining growth. It almost singularly explains why new capital that should have been allocated to improving services has not been invested as of today," said Twiston Davies.

"Combating piracy has long been the No. 1 priority for CASBAA. We are committed to working with governments, companies and law enforcement agencies around the region to enact laws and develop educational programmes that promote a vibrant, safe and legal broadcasting environment."

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New World, China Aerospace partner on DTV

Hong Kong media and technology group New World Infrastructure is teaming up with China Aerospace International Holdings to provide an interactive digital television service in China.

New World Infrastructure said it would form a joint venture with the China information-technology equipment maker and target "a business of some HK$4 billion and 2 million cable television subscribers within two years."

New World Infrastructure will own a 51 per cent stake in the joint venture, to be named China Aerospace New World Technology.


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Canal Plus to sell 85% of Demain!


The Canal Plus group has announced its intention to sell off 85 per cent of the thematic channel 'Demain!'. The channel is currently owned 100 per cent by Canal Plus.

Canal Plus has considered closing the channel in the past. It has also indicated that it is prepared to inject additional capital into the channel in order to "give it a real chance of succeeding". The channel will be turned into a "SCIC", a form of partnership between private and public sectors, which will enable public sector bodies to take part in the channel. Companies that have indicated an interest include Le Monde (newspaper) and Media CD. From the public sector, the regional council of Limoges, will take part.

'Demain!', which is distributed on cable and satellite, is a channel about employment and changing lifestyles.


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Ofcom consults on regulating adverts

Ofcom, the UK's new super-regulator for the media and communications industries, launched a public consultation on the future regulation of broadcast advertising. Ofcom said it was seeking views on its proposal to delegate the regulation of advertising on television and radio to a new industry co-regulatory body.

This would form part of Ofcom's requirement to promote more self-regulation after it is formally incorporated next year. The new body would have responsibility for drawing up, reviewing and enforcing codes, approved by Ofcom, setting standards for the presentation and content of broadcast advertisements.

The consultation document, 'The Future Regulation of Broadcast Advertising', together with a Summary, is available online at www.ofcom.org.uk.