International News 3rd December

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Italy: media law to pass despite Berlusconi interests

Italy's government is set to pass a controversial bill that it portrays as a boost to competition in the media sector but which its critics say will benefit the business empire of Silvio Berlusconi, prime minister.

The bill has been the focus of opposition discontent because it offers an opportunity for Fininvest, the Berlusconi holding company, to increase its share of the national advertising market. It eases restrictions on the cross-ownership of broadcasting and print media, giving Mediaset, Berlusconi's media company, the chance to expand in the Italian newspaper market.

In addition to his control of Mediaset, which is Italy's dominant commercial television company, Berlusconi wields indirect control over Rai, Italy's state-run broadcaster. The three Mediaset channels and three Rai channels attract about 90 per cent of Italy's television audiences. Lucia Annunziata, chairwoman of Rai, said that she intended to resign as soon as the bill was passed by parliament.

But Maurizio Gasparri, communications minister, says one of the bill's main purposes is to regulate Italy's emerging digital terrestrial television market, giving an opportunity for more companies to compete.


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France cable: latest figures


As of 30 September 2003, a total of 3,664,444 homes in France subscribe to at least one service from a cable operator, according to AFORM, the association of cable and multimedia service operators.

The growth is not massive, just 2.4% in one year. The number taking a pay TV service via cable stands at 3.48 million, about the same as the two satellite platforms combined, but growth has been only 1.8%, considerably less than the growth in subscribers to the satellite platforms. Around a quarter of the cable subscribers receive their TV in digital form.

Broadband Internet via cable, on the other hand, grew strongly, by 39.3% to reach 348,295. AFORM points out that while the pay TV market is in a relatively stagnant phase, the year end is looking very hopeful for cable: new TV subscribers in October (i.e. after the end of the period concerned by the figures just announced) were 25% up on October 2002, and broadband sales were 45% up.

The leading operator is Noos, with 1.1 million subscribers, followed by France Telecom Cable (847,682 subscribers) and NC Numericable (Canal Plus group) with 798,488 subscribers. NC Numericable had the largest growth in subscribers, 6.1% over the year.

The full breakdown of figures for each operator and each type of service is available on the Aform web site, www.aform.org


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Viacom considers Blockbuster sale

Viacom is said to be considering a sale of its Blockbuster subsidiary as the video rental chain continues to struggle with declining demand and the growth of DVDs.

Viacom is considering selling its 86 per cent shareholding in Blockbuster to a consortium of private equity investors which includes Thomas H Lee, Blackstone and Quadrangle say US press reports. Although it is not certain a deal will be agreed, the talks suggest Viacom executives are ready to part with a business which, despite its long-term decline, still accounts for a significant part of its cash flow.

In the 1980s, Blockbuster transformed the video-rental business through its strategy of stocking numerous copies of the latest hit films. However, the rapid penetration of DVD players, and consumers' willingness to buy rather than rent movies on DVDs has led to a decline in the company's business. The recent arrival of video-on-demand services from cable providers is expected to further erode its market.

The deal would require a significant cash investment. By midday in New York yesterday Blockbuster shares were down 13 cents at $17.10, valuing the company at more than $3bn. Back to top



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Gemstar licenses DirecTV for IPGs

Gemstar-TV Guide International, Inc. and DIRECTV announced a licensing and distribution agreement for DIRECTV to utilize Gemstar-TV Guide's intellectual property and technology, as well as its TV Guide brand, in interactive program guides across its subscriber base.

The agreement DIRECTV can use Gemstar-TV Guide intellectual property and technology in its own IPG or in alternative IPG products supplied to it by its vendors, beginning in January 2004. Under the agreement, Gemstar-TV Guide will receive fees from DIRECTV rather than continuing to receive fees from DIRECTV's set-top box suppliers.

"Partnering with Gemstar-TV Guide is a natural step for DIRECTV to take, because our customers are accustomed to having access to the most advanced and compelling television technology, coupled with the widest array of entertainment programming available," said Roxanne Austin, president and COO, DIRECTV, Inc.

In the first quarter of 2004, DIRECTV will launch the TV Guide Channel on its "Total Choice" tier, which is its most widely distributed programming package. TV Guide Channel combines entertaining and informative television guidance and original programming. With its vast library of interviews and exclusive behind-the-scenes access, TV Guide Channel provides viewers with a rich array of program information and recommendations to help them make the most of their television experience.

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Robinson quits Disney

Paul Robinson, the managing director of Disney's television channels in the UK and worldwide head of strategy for its ABC cable network, has resigned after five years with the company. He has overseen the expansion of Disney's satellite and cable portfolio from one channel to four and also brokered a deal with Capital Radio to launch joint-venture radio station Capital Disney. Most recently Robinson planned the launch of ÔDaytimeÕ on Freeview, a general entertainment channel, widely seen as Disney's first attempt to branch out into the mainstream outside the US. RobinsonÕs departure coincides with the arrival of Andy Bird, the well-respected former head of Turner Broadcasting International as president of Walt Disney International.



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Humax: OpenCable Set Top Boxes

Humax has developed a complete product line of OpenCable compliant products.
Wind River Systems, Inc. the embedded software specialist announced that Humax has used its platform for developing its first products for the OpenCable standard.

The OpenCable initiative from Cable Television Laboratories, Inc. drives the goal of helping the cable industry deploy interactive TV services to consumers, through the use of a standard hardware and software platform specification. These next generation set tops are the foundation for cable television service providers to provide advanced interactive television, embedded Internet Protocol data connectivity, as well as a retail channel for set top hardware availability. OpenCable based set top boxes are expected to be deployed beginning next year by service providers in Korea and North America.

Humax has developed a complete product line of OpenCable compliant products. The OC-1000 is a cost-effective basic digital set-top for entry-level buyers. The OC-2000 enables 2-way return channel connectivity enabling service providers to deploy more advanced interactive television applications. Finally, for consumers looking for both data networking and interactive television, the OC-2500 embeds a fully functional DOCSIS 1.1 cable modem. This broad line up of cable set tops allows service providers to deploy interactive TV and data services in stages, while allowing consumers to choose the set top based on their feature and functionality needs.

Wind River is a leader in embedded software and services. It provides market-specific embedded platforms that integrate real-time operating systems, development tools and technologies.