Fox signs four OTT deals in APAC

Fox International Channels (FIC) is all set to leverage over-the-top video market in Asia Pacific. FIC inks OTT deals with four players namely Avex in Japan, Tencent and its OTT partners in China, Astro in Malaysia and Cignal in the Philippines.

A slate of channels and content from FIC including Fox, Fox Sports and National Geographic will be available on SVOD, streaming and catch-up services from Avex, Tencent, Astro and Cignal.

“We are excited to be partnering with Avex, Tencent, Astro and Cignal. It is our mission to work with our platform partners to grow their subscriber base. The online, on-demand opportunity is the new frontier and we hope our innovative new products will help our partners tap into a new segment of consumers who do not have pay TV today,” said Zubin Gandevia, President of Fox International Channels Asia Pacific and Middle East.

“This deal enables us to reach out to new fans through over the top.  We are delighted to further strengthen our relationship with FIC,” said CK Lee, Vice President, Sports Business at Astro.

DTT funding crisis hits Russia

The distribution costs on Russia’s second DTT multiplex is proving to be an increasing financial burden for broadcasters.

As a result, reportsKommersant, they have asked the state to solve the problem by replacing a portion of their payments with budget subsidies from the Russian Television and Radio Broadcasting Network (RTRS).

Digital channels are required to pay R150 million (€2.7 million) a year, along with an advance of R840 million, for carriage on the second multiplex.

Distribution costs for channels on the first multiplex are paid for by the state.

Ideally, broadcasters using the second multiplex would like to see their costs reduced by around half.

The second multiplex is expected to reach 98.1% of the population by the end of 2018.

Boost for HD viewing in Russia

Russia’s Tricolor TV has seen a spectacular growth in the number of its subscribers watching HD services since the launch of the Express-AT1 satellite exactly a year ago.

The latter allowed the operator to launch full-scale broadcasting in Siberia, the Urals and Far East, the result of which has been a 70% increase, equivalent to 150,000 households, in the total in the region.

Express-AT1 has allowed Tricolor TV to broadcast almost four times as many channels as previously and now viewers in Siberia are offered 194, 30 of which are in HD.

In a separate development, the Russian Satellite Communications Company (RSCC) has announced that the Express-AM6 satellite, located at 53 degrees East, is now operational.

Turk Telekom loses TV customers

TivibuTurk Telekom ended the first quarter with 1.7 million Tivibu (IPTV and Tivibu Go) subscribers, or 7.6% fewer than at the start of the year.

The total number of Tivibu Home subscribers also fell during the same period, down by 2.8% q-o-q to 281,000.

The Tivibu Go figure encompasses web TV, mobile TV and smart TV subscribers.

The company as a whole had revenues of TL3,435 million (€1,185.7 million) in Q1, down 4.5% q-o-y but up 7.5% y-o-y. EBITDA, at TL1,329 million, was meanwhile up by 7.9% and 10.8% respectively.

Net profit, after minority interest, was meanwhile, at TL27 million, down by 94.7% and 93.1% respectively.

Despite the recent downturn, Turk Telekom’s TV business is expected to grow significantly in the near future, both in terms of subscriber additions and ARPU, as a result of TTNET having secured the media rights to the UEFA Champions League and Europa League for three years from 2015.

Separately, it has been reported that Turk Telekom has offered to buy the remaining stake in the mobile company Avea that it does not already own.

The stake is valued at $300 million.

Global 4K display market to reach $52 billion in 2020

Global 4K Display Market to Reach $52 Billion in 2020, IHS Says

• Once a feature mainly found in next-gen TVs, 4K resolution displays now being adopted in smartphones, PC monitors, OLED displays and notebook PCs

SANTA CLARA, Calif. — Strong promotion of 4K display resolutions from TV makers, display manufacturers and distribution channels has successfully increased consumer awareness and boosted 4K LCD TV penetration in 2014, according to a new report from IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. While 4K is best known as a feature in high-end LCD TVs, starting this year 4K displays will emerge in all major display applications, including desktop monitors, notebook PCs, OLED TVs, digital signage, smartphones and tablet PCs.

The latest Quarterly Worldwide FPD Shipment and Forecast Report from IHS reveals that the 4K display market reached $9.2 billion last year. 4K LCD TV contributed $8.8 billion to overall revenue; however, in 2015, 4K displays are coming to all major applications and will boost 4K revenue 94 percent year over year, reaching $18 billion in 2015. With the evolution of new display process technologies, to enhance the 4K display yield rate and lower costs, IHS forecasts that the 4K display market will be reach $52 billion in 2020.

“Since its market introduction in 2013, TV brands have recognized that 4K is a great way to enhance value, so they have strongly promoted 4K models,” said David Hsieh, senior director of display research for IHS. “4K content and broadcasting availability is also on the rise, which is helping more TV buyers recognize the value of this feature. Meanwhile, LCD TV panel makers have continuously improved 4K panel yield, which has reduced costs and facilitated even more consumer adoption.”

In 2015, LCD panel makers are targeting 40 million 4K LCD TV panel shipments, which represent 17 percent of all LCD TV panel shipments. In addition to TVs, consumers are starting to enjoy the benefits of ultra-high-resolution content in their smartphones and other mobile devices. Meanwhile, the “TV everywhere” concept is increasing consumer desire for higher resolution screens in their mobile devices. The professional-monitor and public-display market are also increasingly adopting 4K displays.

Source: Quarterly Worldwide FPD Shipment and Forecast Report from IHS Inc. (NYSE: IHS)

4K LCD TVs continue to be the largest segment of the 4K display market, but smartphones and OLED TVs will experience the strongest growth this year. In order to compete with LCD TV in the high-end segment, OLED TV makers are including 4K resolutions. As display technology is improving fine-pitch pixel designs and brightness transmittance, 4K displays will become more affordable for mobile devices. In fact, panel makers like Sharp and JDI have recently announced and exhibited 4K smartphone panels. 4K tablet-PC displays, using oxide (IGZO) and low temperature poly-silicon (LTPS) processes, are also in panel makers’ plans.

On the other hand, sub-pixel rendering (SPR) technology will become an important way for panel makers to enhance 4K pixel design in their displays. For many years now, various versions of SPR have been used in the commercial production of AMOLED and LCD displays. Essentially they use two sub-pixels per white pixel, to offer a similar perceived resolution as conventional three-color red-green-blue (RGB) displays.

“The main benefits of SPR include fewer sub-pixels, higher transmission and lower power consumption,” Hsieh said. “SPR is an important element in the growth of the 4K display market.”

The IHS Quarterly Worldwide FPD Shipment and Forecast Report covers worldwide shipments and forecasts for all major flat panel display applications, including detail from over 140 flat-panel display (FPD) producers, covering more than 10 countries. The report analyzes historical shipments and forecast projections, which provide some of the most detailed information and insights available. For information about purchasing this report, contact the sales department at IHS in the Americas at (844) 301-7334 orAmericasLeads@ihs.com; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or technology_emea@ihs.com; or Asia-Pacific (APAC) at +604 291 3600 or technology_APAC@ihs.com.

Vodafone eyes Portugal’s Cabovisão

Vodafone has emerged as one of several parties interested in buying the Portuguese cable operator Cabovisão.

Quoting two people familiar with talks between the parties,Bloomberg reports that the company, which Altice has promised to divest as part of its acquisition of telecom assets in Portugal, is worth around €300 million.

It adds that talks about the possible sale of Cabovisão could go on for several months.

Vodafone is already active in Portugal, expanding its network to offer bundles of fixed and mobile services, including broadband and TV.

Significantly, its CEO Vittorio Colao said last year that the company was interested in acquiring cable assets in Portugal.

Under the terms of its €7.4 billion deal to buy the Portuguese assets of Portugal Telecom last year, Altice was required by the regulators to sell both Cabovisão and ONI.

Just this week, the European Commission gave the go-ahead to Altice/Portugal Telecom deal.

Cabovisão was acquired by Altice from Canada’s Cogeco Cable for €45 million in March 2012.

MTG: Record sales, but mixed pay-TV picture

Modern Times Group (MTG) ended the first quarter with 973,000 premium pay-TV subscribers in the Nordic region, down from the 982,000 and 978,000 posted three months and a year earlier respectively.

While the premium satellite figure continued to fall (514,000, versus 526,000 and 553,000 three months and a year respectively), those via third party networks increased to a total of 459,000 (from 456,000 and 425,000 respectively). Meanwhile, the basic satellite subscriber total continued to fall, with the number as of the end of Q1 at 31,000.

Premium satellite ARPU in Q1 was SEK5,220 (€560.1), compared to SEK5,044 in the corresponding quarter in 2014.

In emerging markets, the satellite subscriber total as of the end of Q1 was 290,000, compared to 358,000 a year earlier. This was in large part due to the closure of the DTH platform Raduga TV in Russia at the end of 2014. On the other hand, the number of mini-pay subscriptions rose from 94,837 to 136,969 in the year to March 31.

MTG notes that in the Nordics, sales growth at constant FX was driven by the expansion of Viaplay. In emerging markets, figures were boosted in the mini-pay channel business by the consolidation of Trace, which added 42 million subscriptions year-on-year and 6 million quarter-on-quarter.

MTG as a whole had net sales of SEK3,701 million in Q1, compared to SEK3,597 million in the corresponding quarter in 2014. Total EBIT was SEK415 million (SEK301 million) and net income SEK318 million (SEK159 million).

Commenting on the results, Jørgen Madsen Lindemann, president and CEO, said: “Record Q1 sales & stable underlying profits Sales were up in the quarter to record levels as enhanced efficiency levels in our traditional businesses continued to fuel the growth of our digital businesses, and even though last year’s performance was boosted by the Olympics. Profits were stable compared to last year when excluding the net positive effect of the restructuring in Sweden and a copyright settlement in Scandinavia, and this is despite significant FX headwinds and continued investments in our digital products. The growth in online viewing is more than compensating for lower linear channel viewing levels in the Nordic region, and our combined Nordic TV businesses grew their sales, and profits were stable despite the FX impacts and when excluding the abovementioned net positive effect. Our Emerging Market free-TV operations generated higher sales and improved profitability in seven out of eight markets as we took shares in generally stable or growing markets. Our Emerging Market pay-TV operations continue to be impacted by the geopolitical crisis and Russia’s ban on advertising on most pay-TV channels. Nice, MTG Radio and MTGx reported stable sales and lower losses on a combined basis”.

Looking to the future, he added: We have now almost finalized the annual upfront agreements for our free-TV businesses, with price increases in most markets reflecting TV’s unique reach and superior return on investment. Viaplay continues to grow its subscriber base and usage levels, while our channel packages are more broadly available than ever before. We have also added new programming content or extended valuable existing rights to ensure that we have the best possible entertainment offerings in each market. We continue to face adverse FX headwinds that are inflating our US dollar content costs in the Nordics particularly, and also reducing the results from our Russian ruble denominated operations. We are taking actions across the Group to offset these effects as much as possible”.