TV related

3 Italia Buys TV Broadcaster: Now First Euro Hybrid Mobile TV Co
In a sure sign that TV to the mobile is the new European media battleground, 3G mobile operator 3 Italia have announced its plans to purchase the Italian national broadcaster, Canale 7. Reports have put the price of the acquisition at between €30-35m.
The addition of Canale 7, Italy’s fourth largest broadcaster, gives the company access to the country’s existing home TV business. Canale 7 currently broadcasts in analogue to around 40% of Italy, predominantly its north. More interestingly, it also has a terrestrial digital TV nationwide network operator’s license. This should provide coverage for over 70% of the country.
It is expected that 3 Italia will work to develop a Pay-TV and interactive services proposition for handhelds. We also understand their intention would be for Canale 7’s nationwide digital project to be integrated with 3 Italia’s UMTS mobile network to create a DVB-H network.
The company intends to offer a DVB-H mobile TV service from the second half of 2006. Indications are that there will be a minimum of 20 channels, although no line up has yet been decided. 3 Italia already carries Playboy adult entertainment and football via existing technology, and has worked with Mediaset and News Corp’s Sky Italia pay-TV operator.
Italy is already one of Europe’s leaders in mobile consumption and is considered to be a prime market for such services. Reports we’ve seen rather puzzlingly mention a “standard of video quality comparable to DVD” perhaps somewhat unlikely on the small screens that will be deployed for this sector – but we’re sure the picture will be absolutely bella.
3 Italia, which is owned by Hong Kong-based Hutchison Whampoa, has so far invested €9bn in its 3G network since obtaining a license from the Italian government in 2000. It currently has around 4.8 million Italian subscribers. Hutchison Whampoa also own 3G licenses in other countries including the UK.
3 Italia
Canale 7
29 November, 2005
Cisco and Scientific Atlanta Converge
Convergence took a step forward Friday past as Cisco announced the takeover of Scientific Atlanta (SA). The price? $6.9 billion cash.
SA shareholders don’t get a big premium (around 4%). The markets had already priced the shares to allow for a takeover talk, of which has been ongoing for some time – Sony being rumoured as one of the prospective suitors. Conversely, Cisco stockholders aren’t too enthused with the takeover, and see the cable business as riskier than the high margin routers that have been Cisco’s cash cows.
The acquisition looks a good fit though, Cisco are keen to push their IPTV proposition, SA’s strength in the US set-top-box market (they have around 40% market share) will allow them to capitalise on the access to the home that video brings. The companies’ combined news release majors on this, John Chambers, president and chief executive officer of Cisco Systems said “Video is emerging as the key strategic application in the service provider triple play bundle of consumer entertainment, communication and online services.”
The release also notes that the coming together of the two companies “creates a world class, end-to-end triple play solution for carrier networks and the digital home”
Formed in 1951, SA has long been a market leader in Cable TV, has a healthy balance sheet and already has one large IPTV customer in the shape of SBC Communications. The critical mass of SA as part of Cisco should help it win more.
Expect both Motorola (SA’s main US competitor) and Microsoft to consider how best to respond to this strategic move by the dominant Internet hardware backbone provider.
Cisco
Scientific Atlanta
21 November, 2005
Digital Dividend Review: Ofcom Look At Spectrum Use After Analog TV Switch Off
Now that the Government has hit the ‘go’ button for switchover there are plenty of people anxious to know how the released spectrum will be used – and thereby how we will realise the value of it for UK plc.
In an attempt to address this issue Ofcom announced today the beginning of the Digital Dividend Review (DDR) – the project which will examine the options arising from the release of spectrum afforded by the digital switchover programme.
Ofcom estimates that the digital switchover programme will release up to 112 MHz of spectrum in the UHF (Ultra High Frequency) band for new uses. The UHF band is prime spectrum, because it offers a technically valuable combination of capacity (bandwidth) and range.
Ofcom say,
“The cleared spectrum – the Digital Dividend – offers real opportunities for wireless innovation.”
The Digital Dividend could enable the launch of a wide range of different services. Ofcom’s examples include:
- New mobile services, with high quality video and interactive media delivered to handheld devices
- Wireless broadband services, with high-speed data and voice services
- Wider coverage for advanced services in remote and rural areas. This spectrum is particularly suitable for low cost, wider-area coverage
- Advanced business and broadcasting services, such as those used to support major sporting events
- Additional television channels including possible High Definition (HD) channels carried on Freeview
Ofcom point out that this is not an exhaustive list – which will please HM Treasury since the greater the potential uses and users the higher the value likely to be realised from auctioning it.
On this point, Ofcom have a tricky job since they will have to ensure that there is enough incentive to investing the development of a particular wireless technology with no guarantee of it actually securing an allocation of the spectrum required – however it should be noted that Ofcom have stated that they will also begin work on a new auction design, with a view to ensuring that the spectrum is acquired by users who are likely to make best use of it – (i.e. best use = greatest value) – not sure how HMT will view this.
This approach means Ofcom will:
- Consider the potential uses for the available spectrum
- Set out the technical limits on spectrum use to prevent potential interference
- Draw up packages of frequencies that give flexibility to the market
- Design an efficient auction/allocation process
The proposed timetable for DDR is:
- Digital Dividend Review (DDR) begins – November 2005
- Programme team and consultants in place – end 2005
- Stakeholder meetings begin – Jan-Feb 2006
- Outcome of RRC – June 2006
- Digital Dividend Review completed – Q3 2006
- Ofcom publishes final proposals – Q4 2006
- Digital switchover programme begins – 2008
- Digital switchover programme completed – 2012
Luke Gibbs writes regularly for Ofcomwatch.
Ofcom Digital Dividend Review
17 November, 2005
Will ADSL2+ deliver in the UK?
The rollout of ADSL2+ in the UK appears to be going through a reverse-hype process, with people saying it’s not going to deliver high speeds to most people. That may be partially true, but in urban areas where people are within 1.5Km of the exchange they should get 20Mb/s+.
These speeds are enough for multi-channel HDTV. At the extreme end (extremely optimistic end?), we’ve seen Microsoft demonstrate what they call near-HDTV running at 1.5Mbps. A more ‘normal’ size for HD will be running at 2.5-4Mbps.
We can see that the delivery to the home isn’t a problem, but the back-haul (speaking between the exchange and the content provider) is another matter. Unless intelligent delivery and caching is used, shipping that amount of content to all of your customers gets very expensive.
Most people do seem to be ignoring QoS though, as having 20Mb/s downstream and 1.3Mb/s upstream is still useless for VoIP unless some of that bandwidth can be guaranteed so the voice traffic doesn’t get mixed in with everything else.
Using traditional CoDecs and then packetising them uses more bandwidth than over traditional telephony links. VoIP bandwidth can be squeezed to much lower levels, but then the calls are not what’s called toll-grade.
Broadband providers moving into VoIP are going to need to look long and hard how they actually implement services such that they are competitive (in terms of call quality) with existing analogue lines.
15 November, 2005
UK Digital Switchover Costs: Ofcom Report Questioned Again
Matthew Wall of the Sunday Times Doors section hammers Ofcom over the regulator’s recent report on digital switchover cost and power consumption issues. Wall labels Ofcom’s report a ‘dubious attempt to play down the true costs of switching…’
Read for yourself folks, but basically Wall claims that The Times / Doors estimates the digital switchover costs at about one billion GBP, while Ofcom’s report claims a ‘pie in the sky’ figure of 572 million GBP. The tone of Matthew Wall’s piece is aggressive and he suggests Ofcom is deliberately playing down the true costs of digital switchover.
My comments: Wall needs to be careful in his accusations. Ofcom did not author the report at issue. Instead it was authored by Scientific Generics. While I don’t know if this is the case with this particular report, in the past Ofcom has published third-party research without endorsing the conclusions contained therein. In particular, Ofcom’s recent third-party produced report on the Television Without Frontiers Directive proposed revisions was merely put on the internet as an interesting report for public viewing and comment. The regulator informed me that the TVWF report was useful third-party data but did not contain Ofcom’s views, per se.
That being said, Ofcom need to do a better job at handling third-party research. Some suggestions:
1. These types of reports should be tendered in a public manner. How do these research projects get sourced? I’d like to know…
2. Ofcom should publish how much it pays for these types of reports. I’ve mentioned this before and the reasons Ofcom gives for not reporting how much this research costs are not convincing.
3. The significance (or lack thereof) of these reports should be plainly stated. Similarly, if Ofcom is not necessarily endorsing a particular report’s conclusions, it should plainly state that fact. An ‘evidence-based’ regulator should be very clear as to how it treats these findings made by third parties. If the Scientific Generics report is not endorsed by the Ofcom Board, but it is merely one of many research inputs on the issue of digital switchover costs, then Walls’ claims are clearly overstated. However, it’s hard to blame the press when reports like these are published on the Ofcom website with no disclaimers, giving them the imprimatur of Ofcom approval.
On the merits, I think people should stop bellyaching about the cost of digital switchover. No expert can seriously claim to accurately predict the true cost: Qui numerare incipit errare incipit (He who begins to count, begins to err). Anyway, the cost is not the real problem – the real problem is that Freeview stinks as a platform and Wall is correct when he observes that the U.K. government tends to assume it is the standard of the future. But that’s just my opinion.
Russ Taylor writes for OfcomWatch
14 November, 2005
BT Results Analysis: Stuck Between Rock And Hard Place
Poor old BT. Now that it’s reached a settlement with OfCom that allows it to keep retail and wholesale arms under one, some would say, severely stretched umbrella, commentators emerge from cover and say it might be better if it’d spit into two (or more) parts. The cost of Openreach has been put at £70m so far and in terms of efficiency in the UK telecoms market this could well be an ongoing sore.
BT has announced an IPTV offer for the retail market that some say offers too little too late. Early adopters of Digital TV are, in the main, already committed to Sky, who will look to rapidly integrate an Easynet download capability in an attempt to beat off the challenges from BT and a combined resurgent UK cable monolith formed by Telewest and NTL. The remnants of the consumer markets’ move to digital TV that BT will attract, are likely to be those less inclined to convert to a pay TV proposition, and they’re likely to be operating with tighter disposable incomes than those who have already left analogue TV behind.
Sky’s upcoming purchase of Easynet adds considerably to the pressure on BT.
Major Telcos in Europe have, by and large, a coherent mobile strategy and BT’s deal with Vodaphone is viewed as little more than a stop gap.
Where does this leave BT?
Interestingly enough, Telefonica’s bid valuation of O2 put the value of the former Cellnet constituent of BT above that of the remainder of the UK’s juggernaut Telco- perhaps BT Group could be of interest to another global suitor?
At present there’s a danger that not only will wholesale be delivering utility-style performance but that retail may be moving into a period of decline and could it be that the future of BT is again up for a re-evaluation by it’s major stakeholders?
14 November, 2005
HD, Or The Lack Of It, Could Hit UK Commercial Broadcasters
Following the BBC confirmation of High Definition Television (HD) trials for 2006, all of a sudden it feels like there’s a plethora of High Definition services and trials in the UK next year.
At an event held in London earlier in the week, under the auspices of the Royal Television Society, Pat Younge from Discovery USA provided news of his experiences. The bad news for commercial UK broadcasters is it costs more; doesn’t bring any extra revenue from advertisers; and it doesn’t increase viewing hours … but if you don’t have it, viewers will seek it out and they’ll end up watching you competitors.
The BBC is, as usual, unwilling to be left behind in new developments. With the expectation of World Cup Soccer in High Def on D-Sat (Digital Satellite) next year, the UK commercial broadcasters, ITV; Channel Four; and Five need to be on HD, but will try and ride on the BBC’s coat tails.
Speaking at the same event, Richard Freudenstein, CEO, BSkyB, was careful not to mention what the monthly subscription will be for HD on Sky when it launches. He spent his time talking up the platforms’ HD bouquet that will include Sky One, sports and movies with an HD Sky Plus box and plenty of storage capacity.
DTT (Digital Terrestrial TV) in France (quaintly abbreviated in French as ‘TNT’) will be MPEG 4 capable and is HD-ready from go, but finding capacity on the MPEG 2 Freeview platform in the UK is going to be more of a challenge. The BBC’s Jana Bennett, Director of Television is tasked with making the UK trials a success and wants to see the offering across all platforms. She hopes that, as well as cable and satellite, broadband will be a route into the home.
Confusion still reigns
Although the industry know they must go to HD, it’s clear that they’re far from having a strong hold over it. From listen to the snippets of conversation in the halls before and after the main event, it’s clear that there also remains broadcast industry confusion over the strengths of the various picture standards. This was given away with phrases like “I think 1080 refers to the number of lines” coming from the lips of one ‘expert.’
The equipment people have to buy for their homes is still an area of confusion, not helped by the next-gen DVD industry not agreeing their standard (Blu-ray, HD-DVD).
Once they do and this combines with the widely-predicted, continuing reduction in price, those exciting big displays labeled ‘HD-ready’ will really start to fly off the shelves.
Until then it’s a case of buyer beware – if you can resist the fantastic picture.
10 November, 2005
Wharfedale DV832B Review: Digital TV Box
After several years of battling with the clunky interface and weird quirks of our museum-ready OnDigital digital terrestrial television box, we decided it was time to replace it with something a little more contemporary.
With digital broadcast delivery technology moving so fast, we weren’t minded to shell out too much for something that may be rendered obsolete by some funky new feature in a few years, so we went looking for a cheap’n’cheerful option.
A quick visit to box-shifting supremos Argos saw our eyes fixing on an ideal candidate: the Wharfedale DV832B digibox.
Sure, it’s not much to look at and the plastic case – with its cheap, old-school red LCDs – is unlikely to woo the neighbours, but the feature list was far more than what we expected at the price level.
For the princely sum of just £35 (~$62, €52), the Wharfedale offers a digi box with a 7 day electronic programme guide (EPG), digital text, digital interactive services, DVB subtitles, auto scan and setup and 2 SCART sockets.
Suitably impressed, we shelled out the readies and plugged the unit into our home entertainment system.
Once powered up, the unit asks if we want it to automatically scan for stations and after saying “Yes please Mr DigiBox”, we were presented with a long list of available digital TV and radio stations.
Onscreen menus
As with most digital boxes, you need the remote control to access the key functions with the front of the unit only offering controls for on/off and program up/down.
The onscreen interface was simple, crisply designed and easy to navigate, and proved fairly intuitive in operation.
Using the onscreen menus we were given options to delete channels, rename channels, select favourites, set up to five timers, add a parental lock, choose TV type and set up Over-Air software downloads.
Within minutes of getting the DV832B out if its box, we were skipping channels with glee, pausing momentarily to wonder who on earth watches those dire Bid TV programs.
Picture quality
Picture quality was good with no nasty outbreaks of the jaggies to be seen (although we do live within eyeshot of the Crystal Palace transmitter so we can’t say how it might perform in areas with weaker coverage), and we found the overall performance to be perfectly satisfactory.
The slimline silver unit (4.8 x 30 x 20.6cm) comes with a simple and straightforward 24-page manual, a SCART lead and a run-of-the-mill remote control (there’s no Top Up TV compatibility on board, but we’re not complaining at this price!).
Our conclusion
The Wharfedale DV832B provides outstanding value for money, is a thoroughly capable performer and we have no hesitation in giving it five stars.
27 October, 2005
Sony VAIO XL1 Digital Living System
Sony are keen for us to ‘redefine’ our living rooms with the release of their new VAIO XL1 Digital Living System, a twin box offering combining a high-end multimedia PC with a 200-disc media changer/recorder.
Clad in natty silver and black casings, the combo runs on Microsoft Windows XP Media Center Edition 2005 and connects to a television via an HDMI cable, outputting high-definition video and multi-channel digital audio in a single connection.
Boasting unique functionality as the result of a “close collaboration with Microsoft”, discs inserted into the changer are automatically detected by the PC which connects to the Web (via wired or wireless network) to download any available metadata, including jewel case covers and artist information.
A similar process takes place for movies, where an in-depth synopsis and star, cast, director and producer details etc are automatically downloaded and made accessible onscreen through the included wireless keyboard or remote control.
Sony has innovated once again by introducing a product that is a monumental step forward in defining the way consumers enjoy digital entertainment,” insisted Mike Abary, vice president of VAIO product marketing for Sony Electronics in the US.
“With the XL1, users can still manage all their meaningful entertainment content such as downloaded music, home movies and personal photos. But the really groundbreaking functionality is the additional ability to easily organize, sort, and access packaged content – all of the DVD movies and audio CDs that have been traditionally relegated to a bookshelf,” he added.
There’s no denying that the recording functionality seems mighty impressive to us, with the XL1 able to automatically and sequentially record up to 200 audio CDs from the media changer to the hard drive.
Users can also record a series of television show episodes to the hard drive, and transfer them to blank DVDs stored in the changer
Beating in the heart of the XL1 A/V system is a powerful PC boasting an Intel Pentium D dual-core processor, half a gig of DDR2 memory, PCI-E graphics and space for up to three SATA hard drives (RAID ready).
To ensure that your late night listening pleasure isn’t spoilt by the sound of a mass of Boeing 747-like fans starting up, the XL1 system uses liquid-cooled components for quiet operation.
The Digital Living System will be sold as a package and will be available next month for about US$2,300 (~£1,300, ~€1,930).
Sony VAIO XL1
19 October, 2005
Paramount To Offer HD-DVD and Blu-ray Disc Movies
As the next-generation DVD wars between HD-DVD and Blu-ray Disc grind on, Paramount Home Entertainment has employed a time-honoured fudge and announced that it will be offering movies in both formats.
High-definition versions of Paramount’s movies will be released in both HD-DVD and Blu-ray Disc, the company said yesterday.
Viacom subsidiary Paramount is the first major content provider to announce support for both high-definition video-disc formats, and follows a similar line of thinking as Samsung’s dual HD-DVD/Blu-Ray Player which we reported on last month.
Both formats serve up far more storage capacity than current DVD discs, with HD-DVD offering 15GB or 30GB and Blu-ray Disc 25GB or 50GB, depending on the disc.
Unfortunately, the two formats remain incompatible with each other, something that’s sure to hold back consumers with less than fond memories of the VHS vs Betamax battles of the past.
Paramount was one of the first major content players to back the Toshiba/NEC-developed HD-DVD format, with other major backers including Warner Home Video, HBO, New Line Cinema, Universal Pictures and Sanyo Electric, followed by Intel and Microsoft last week.
Blu-ray enjoys far greater support from electronics companies like Sony, Matsushita (Panasonic), Samsung, Dell, Hewlett-Packard, Apple and Philips, with an impressive line up of Blu-ray supporting content providers including Sony Pictures, Twentieth Century Fox, Walt Disney Pictures, Lions Gate Home Entertainment and Universal Music Group.
Influential in Paramount’s decision was the PlayStation 3’s support for Blu-ray Disc.
“After a detailed assessment and new data on cost, manufacturability and copy-protection solutions, we have now made the decision to move ahead with the Blu-ray format,” Paramount said.
Paramount
3 October, 2005