Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (28086)	1/14/1998 4:19:00 PM
From: John Rieman	Read Replies (2) \| Respond to of 50808

Digital TV in France not for peacemakers.................................. ijumpstart.com CO-OPERATION NOT THE WORD IN FRENCH DIGITAL <Picture><Picture><Picture> The French market is looking as though it will buck the European trend of having one digital system, as the competing digital platforms reported high subscriber levels and denied reports that talks are underway for future co-operation. Executives from the competing platforms Canal Satellite and Television Par Satellite (TPS) have spent the past fortnight denying reports in the French press that they were about to kiss and make up. The rumours had TPS Chief Patrick Le Lay meeting at Canal Satellite offices about potential co-operation. However, Canal Satellite's Bruno Delecour told the French newspaper Le Figaro that co-operation with TPS would "only benefit the weak one." Figaro maintained Canal Satellite would be interested only in an outright merger, something from which TPS has tried to steer clear. From the looks of things, it appears both systems are prepared to make a go of it for the foreseeable future, having announced year-end subscriber figures that exceeded their optimistic expectations. Canal Satellite reported 750,000 subscribers at the end of the year, with plans to pass the 1 million subscriber level sometime in 1998. At its April 1996 launch, Canal Satellite executives had expected to sign up half a million subscribers by this time. Canal Satellite reported Ffr1 billion ($163 million) in 1997 sales, with projections for $326 million this year. Company executives expect the service to break even in 1999. Meanwhile, TPS has signed up 320,000 subscribers in its first year - also ahead of its projections. At its December 1996 launch, execs from TPS - owned by TF1, France Television, France Telecom and CLT-UFA - said they would be happy with 175,000 after its first year. By comparison, the country's third satellite operator, AB Sat, counts about 30,000 subscribers, and the country's cable industry's latest figures show 2.3 million subscribers out of 6.8 million homes passed, pushing the penetration rate to 23.2 per cent. About 1.6 million subscribe to at least the basic service (15 channels). Despite the denials, TPS would benefit from a closer association with Canal Satellite. The platform's parent - Canal+ - has remained the darling of the financial markets despite recent market troubles. In the autumn, investment banker Merrill Lynch rated Canal Plus an enthusiastic 'buy' while complaining that media misrepresentations regarding its digital battle have hurt Canal Plus in the financial markets. One of the reasons Canal Plus is well regarded is because it has slowly become a dominant player in all aspects of the French media industry. Just three months after it took controlling interest in the country's biggest cable operator Compagnie Generale de Videocommunication (CGV), a subsidiary of Compagnie Generale des Eaux (CGE), Canal Plus is rumoured to be dealing with CGE again. The French press is reporting that the CGE-owned Havas are talking about setting up a new media company. The September CGV deal saw Canal+ raise its 20 per cent stake to 76.6 per cent, with CGV taking 15 per cent and French bank Societe Generale making up the final 8.4 per cent. CGV, which was created in 1984, had sales of Ffr86.8 million ($14.1 million) in 1996, operating 33 cable sites covering 221 communities. Canal Plus purchased CGV to safeguard the distribution of its thematic channels on a major portion of French cable. It pipped France Telecom, the third largest cable operator and shareholder in rival DTH package TPS, which had already said it was interested in acquiring CGV, which posted losses of Ffr300 million ($48.9 million) in 1996. The bickering between the Canal Satellite and TPS platforms was legendary last year, and looks set to continue into the new year. First, Canal+ complained that TPS is keeping two terrestrial stations run by its shareholders (France 2 and France 3) from appearing on the Canal Satellite platform. Canal Plus also charged that TF1, M6 and France Television will not carry Canal+ advertising on their terrestrial nets. TPS responded to Canal Plus' complaint with a lawsuit of its own alleging that Canal Plus is the one operating as a monopoly. The TPS suit claims that Canal Plus is preventing TPS from obtaining film rights for local productions by exerting undue influence over the local producers. TPS complained that Canal Plus used its position as the French film industry's biggest investor to bully local French producers into not selling their rights to TPS. This has caused the TPS movie channels, such as Multivision, to be unable to meet French broadcast quotas, which are among the strictest in Europe.