More on Kirch. Let them have d-boxes...........................
techserver.com
German network to mull European digital TV block
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Copyright c 1997 Nando.net
Copyright c 1997 Reuters
COLOGNE, Germany (December 1, 1997 12:41 p.m. EST nando.net) - German public network ARD said on Monday it would carefully weigh the fallout from a European Commission decision provisionally blocking aspects of a deal on German digital television marketing.
"We want unimpeachable conditions for the start of digital television," said Fritz Pleitgen, director of ARD's board for broadcasting and telecommunications.
Kirch and CLT-Ufa, controlled by Bertelsmann, confirmed at the weekend that the European Commission had asked them both to provisionally stop marketing the d-box (decoder) with the pay-TV service Premiere.
The European Commission announced on Monday it had received several complaints about the planned alliance between Kirch and Bertelsmann, which it would now also consider in ruling on the digital TV deal.
CLT-Ufa and Kirch intend to merge Premiere and DF1, Kirch's digital pay TV service.
ARD agreed with Kirch and Bertelsmann at the beginning of November to use the d-box, putting aside months of disagreement on the technical standard for the decoder.
Reacting to the EU's objections, Pleitgen said it was the responsibility of Kirch, CLT-Ufa and Deutsche Telekom, which has also invested in the d-box, to ensure that the deal on the d-box complied with European broadcasting and cartel regulations.
The directors of ARD are expected to discuss the consequences of the European Commission's objection at a routine meeting in Cologne on Tuesday and Wednesday.
Addressing another potential setback for digital television -- the weekend announcement from world soccer federation FIFA that it could dictate conditions for the broadcast rights of World Cup finals in 2002 and 2006 -- Pleitgen said ARD was interested in buying the rights.
Leo Kirch and his Swiss partner ISL bought the worldwide broadcasting rights for World Cup matches in 2002 and 2006, with the exception of the United States, for $1.9 billion.
But FIFA's general secretary Joseph Blatter warned at the weekend that FIFA could attempt to introduce a veto right over the broadcast of games in World Cup finals if Kirch opted to show key matches exclusively on pay TV.
He added that if Kirch or ISL were unsatisfied with those conditions they could step out of the deal.
Pleitgen said ARD together with the European broadcasting organisation EBU could afford to buy the rights from Kirch to show the finals on so-called "free TV."
"If the rights stay with Kirch, we will apply for the direct and free broadcast of World Cup matches," Pleitgen said.
Kirch has heavily invested in pay TV and has gambled that the money he has invested in programming rights will help fuel the development of German pay TV channels, including digital services.
Pleitgen is also the director general of WDR, one of the biggest regional public broadcasters in the ARD network. |
