15 Mar 10
Weekly Broadcast News - 12th March 2010
12th March 2010
Legal battle looms as Ofcom prepares to force Sky to sell channels
Ofcom is likely to force satellite broadcaster BSkyB to sell its sports and film channels at a wholesale fixed price to its rivals within the month. Industry sources expect the satellite broadcaster to receive a ‘wholesale must-offer’ obligation that would force it to make its premium content available to all interested parties, including Virgin Media and BT Vision. If passed, the cost of watching live football, rugby, boxing and cricket on TV is set to fall in the UK, as it would bring an end to Sky’s dominant position, built since 1989 under Rupert Murdoch. At present, most operators are unable to agree terms with Sky over its premium content, and those that have, most notably Virgin Media, have complained that they are charged rates which make it impossible for them to compete effectively. The media regulator confirmed it does intend to publish the findings of its pay-TV investigation in March, but refused to be drawn on any speculation. Any decision has come too late for Setanta, whose British business collapsed last June following a six-month struggle to raise cash. However, any ruling this month could still fail to provide any immediate action. Alex Haffner, senior associate at competition law firm Denton Wilde Sapte, warns a resolution could still be some two years away.
RTL '100% committed' to Channel Five, says Zeiler
Gerhard Zeiler, the chief executive of Channel Five's parent company RTL, this week said that the group remained "100%" committed to the broadcaster despite last year's loss, noting that it will be a "valuable asset" in the expected consolidation of the UK TV market. Zeiler earlier reported an overall loss of €41m (£37m) at Five last year, and an operating loss of £8m, added that backing the UK subsidiary remained in the best interests of RTL shareholders. Five made savings of 19% or £65m last year through job cuts and reducing its programming budget. Five's programming budget was thought to be in the low £200m region at the start of 2009. This was cut by about a third during the course of the downturn and is thought to stand somewhere around £135m. Five's main channel share of viewing dropped from 9.6% to 8.4% over 2009 following several years of steady growth.
Profits dive 56% at Johnston Press
Johnston Press has reported that its pre-tax profits fell 56% last year to £43m, with ad revenues plummeting almost 27% year on year as the recession took hold. The regional newspaper group, which owns the Scotsman and Yorkshire Post, said that like-for-like ad revenue fell by 26.5%. Total group revenues plunged by almost 20% to £428m for the 53 weeks to 2nd January. The company said that despite difficult trading conditions the advertising slump hit its nadir in the first half of 2009, with the first quarter ad revenues down 34% year on year compared with just 11% by the final quarter last year. The group's net debt was down by £55.3m to £422.1m as at 2nd January. The company confirmed that Freddie Johnston, the last family member on the board, would leave on 30 April, meaning Johnston Press board would be missing a family member for the first time in 243 years. Directors Peter Cawdron and Martina King will also leave.
FTC to look into Google's AdMob acquisition
The US Federal Trade Commission has started gathering evidence for a possible challenge to Google's $750m acquisition of mobile advertising specialist AdMob, according to reports. Bloomberg and the Financial Times claim the FTC has contacted advertisers about the deal, which was agreed in November. The development does not mean the FTC will necessarily challenge the acquisition, but does indicate there is a chance it will do so. The FTC declined to comment. Google has previously said it is "confident the FTC will conclude that the rapidly growing mobile advertising space will remain highly competitive after this deal closes". Google and AdMob's combined share of the US mobile advertising market in 2009 was 21%, according to researcher IDC. Another researcher, Ground Truth, estimates that AdMob accounts for 61% of US mobile display advertising. Recent acquisitions in the mobile advertising space include Apple's $275m deal for Quattro Wireless in January and Amobee Media Systems' estimated £12m swoop on the UK's Ring Ring Media in the same month. Orange, O2 and BlackBerry have also launched mobile advertising offerings.
UK pay-TV market earned £4.6bn in 2009
Spending on subscription television services in the UK stood at £4.6bn at the end of 2009, representing a 6.4% year-on-year growth. According to figures compiled by FutureSource Consulting, the UK spent £19.7bn on purchasing media products and services last year, with pay-TV accounting for 23% of the total market. The UK showed the biggest demand for packaged entertainment content in Europe, with £6.2bn being spent on DVDs, CDs, video games and box office cinema tickets, accounting for 31% of total expenditure. TV advertising suffered a difficult 12 months to reach £3.5bn, down 4% year-on-year and significantly behind the £3.7bn spent on internet advertising. Radio advertising suffered a 6% drop to £400m, while 18% of total media spending, £3.6bn, was on the licence fee for funding the BBC. The total worldwide market for media products and services stood at $598bn (£399bn) in 2009, with the US accounting for half of that expenditure. Pay-TV services around the world reached $165bn, or 28% of the total market, while television advertising hit $209bn, up 1.7% year-on-year.
IPA launches online archive of Effectiveness Awards data
The IPA has launched a free online data archive of submissions to IPA Effectiveness Awards for the past thirty years. The IPA data bank online (IDOL) reveals analyses of more than 900 case histories in the IPA data bank. Features include a data search on categories including marketing objectives, creative strategy and communications channels and instant charting to inform PowerPoint presentations. It is free for members to use, and non-members for a limited trial period.
Sky launches 3D demo to promote new channel
BSkyB is set to show 3D demos in shopping centres across the UK to promote its new Sky 3D channel. Sky will show 3D content to shoppers, including footage from last month's London Fashion Week and the Arsenal v Man United match, ahead of its new channel launch next month. Shoppers at London's Westfield centre will be given 3D glasses to view the content this Friday, which will also include 3D tennis, golf, boxing, film and music footage, according to reports. The satellite broadcaster plans to complete more than 100 3D demonstrations in shopping centres over the next 12 months to promote its 3D film, sport, entertainment and arts content. BSkyB will roll out Sky 3D in pubs in April, broadcasting a live Premier League match in 3D every week. 25 matches from the upcoming World Cup finals in South Africa will also be produced for the channel. Sky 3D will be made available to all Sky HD customers once 3D-ready televisions sets are on the market. Models are expected from LG, Panasonic, Samsung and Sony.
Film4 and E4 HD channels to launch on Virgin Media
Film4 HD and E4 HD will launch on Virgin Media's digital TV platform this summer. Film4's HD channel, which is launching exclusively on Virgin, is set to offer a daily line-up of films including Slumdog Millionaire, Mike Leigh's Happy Go Lucky and Ken Loach's Looking for Eric as well as Hollywood blockbusters, US independent films and foreign films. E4 HD will offer Virgin customers a chance to see programmes including Glee, Skins, Hollyoaks, Desperate Housewives and Ugly Betty in high definition from April. Virgin Media's catch-up TV platform already hosts C4HD, BBC HD, ESPN HD, FX HD, MTVN HD, National Geographic HD, LIVING HD and the forthcoming Discovery HD and Eurosport HD channels.
Samsung 3D TVs in your living room by the end of the month
Samsung has confirmed that it will launch a range of 3D TV sets and home entertainment products in the UK by the end of this month. During a press conference today, the Korean firm said that its 3D TVs and Blu-ray devices will be bundled with two pairs of 3D glasses and a Blu-ray copy of Monsters vs Aliens following a tie-up with the DreamWorks studio. Speaking at the event, DreamWorks chief executive Jeffrey Katzenberg said that 3D is the "entertainment revolution of our time", which will be "as important as the introduction of sound or colour". Samsung's president of visual display products Boo Keun Yoon said, "I believe 2010 will be the year of the 3D television revolution. Probably by the end of this year, we'll see an explosive growth in demand." Later in the week, rival manufacturer Panasonic will start selling its first 3D TV at a BestBuy outlet in Manhattan, New York, while Sony intends to launch its new 3D models in Japan by June. Pricing for 3D TVs at British stores has not yet been finalised, but Sony's 3D sets will cost around £2,000 for a 40-inch set and Samsung is preparing to charge between $2,000 (£1,350) and $4,000 for its products in US stores. John Lewis vision buyer David Kempner expressed his belief that Samsung's 3D sets will have an opening price point of around £2,000, while demand is expected to be a "slow burn". The World Cup could be a big driver for 3D TV sales as Sony recently reached an agreement with FIFA to film 25 games using the technology. Over 20 films are also scheduled for release in 3D this year, including Tim Burton's Alice in Wonderland, which topped the UK box office over the weekend.
Planet Rock hopes to sign up Bruce Dickinson
Planet Rock owner Malcolm Bluemel wants to hire outgoing BBC 6 Music DJ Bruce Dickinson – and hopes his loss-making digital station will break even by the end of this year. He has held talks with the Iron Maiden frontman, who will present his last 6 Music show in April after eight years on the BBC digital station. 6 Music is set to close at the end of 2011 under controversial proposals put forward by BBC director general Mark Thompson. Bluemel, who rescued Planet Rock after its former owner GCap Media said it was going to close the station, said he was "disappointed" at the prospect of 6 Music's demise.
'Skins' renewed for two more series
E4 has commissioned two more series of its award-winning teen drama Skins, which will hire an entirely new cast for the second time in its short history. Auditions for series five and six will be held in London and Bristol in April.
The entire current cast - including Kaya Scodelario and Luke Pasqualino - will leave the show when series four concludes next Thursday. Series five, made by Company Pictures and Stormdog Films, will be made up of eight episodes.
Snippets usually taken from the following sources: MediaGuardian.co.uk / BBC / MediaTel / WARC / Digital Spy / brandrepublic.com / nma.co.uk / broadcastnow.co.uk / Ofcom / T3