Showing posts with label Zesko. Show all posts
Showing posts with label Zesko. Show all posts

Sunday, March 16, 2008

BPN 1039 Zesko largest Dutch digital TV operator

The total number of Dutch TV connections grew by 10,100 to 7.73 million on 31 December 2007, with the digital TV growth only just off-setting the drop in analogue TV connections. The number of digital TV connections grew by 5.4 percent or 169,200 net additions during the quarter to 3.32 million on 31 December 2007, according to the quarterly update about the Dutch television subscribers market, by Telecompaper, an independent Dutch telecom market research bureau..

Both terrestrial and IPTV saw their market share grow on the Dutch digital TV market to 14.5 percent and 5.1 percent respectively, while cable and satellite continued to lose market share. The penetration of digital TV on the Dutch cable networks continued to grow, ending 2007 at 26.3 percent compared with 14.6 percent at the end of 2006.

The Dutch digital TV market's quarterly growth is expected to reach 7 percent during the first two quarters of 2008. The growth will be driven by KPN's continued effort to win as many as Digitenne customers as possible, and a steady increase of analogue cable TV customers changing over to digital TV via their cable network operator. Telecompaper estimates that the Dutch digital TV market will reach the 4 million user-milestone in the beginning of the third quarter of 2008.

On the digital TV market, Zesko became the largest provider by winning 87,000 customers during the fourth quarter, to end 2007 with 834,000 digital TV customers. Satellite TV operator Canal Digitaal lost its position as largest digital TV operator but continued its quarterly growth of around 3 percent to end the year with almost 800,000 customers. UPC saw its the number of digital TV customers grow by 18,900 to 550,300 on 31 December 2007, while KPN reported the highest growth of 20 percent to reach 497,000 subscribers on 31 December 2007.

The battle for the Dutch digital TV market has now four main players: the cable operators Zesko and UPC and IPTV operators KPN and Tele2. Zesko is the holding in which the cable operators Casema and Multikabel have been united.

Blog Posting Number: 1039

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Friday, January 18, 2008

Cross-channel rights to Dutch soccer premier division

The Dutch soccer world is in a stage of excitement, as the tender to the broadcast rights of the premier division has been closed. For the Dutch soccer team the rights mean revenues, while for the viewer/user it means access to the summaries and games.

The soccer games have become a cross-channel rights circus. Besides the rights to the premier league games of men, the rights are also sold to the games of women. The cross-channel rights concern television and radio over cable, IPTV and mobile. A complicating factor is the formats: previews, live games, summaries and archived games.

The participants in this tender have not been announced, but there were six major candidates for the all over rights. The Dutch public broadcast NOS lost two years ago the summaries to the new broadcast station Talpa/Ten. Versatel, now Tele2 had the rights to the full games and shared the rights amongst others with the telecom incumbent KPN. But after two years the scene has changed dramatically. Talpa/Ten has terminated broadcasting and the rights went to RTL.nl. Versatel hoped to pick up 100.000 IPTV/ADSL clients with the premier league soccer, but this did not work out at all.

Now the potential bidders limited themselves to six candidates: NOS, Tele2, KPN, RTL and SBS. RTL and SBS have not tendered, but a novice surprised everyone: Zesko, a combination of cable operators (Casema, @Home and Multikabel). This conglomerate does not cover the entire country with its cable infrastructure, but to fill some gaps they went into a deal with Canal Digitaal, a satellite distributor of movies, sports and digital channels. It is taken for granted that no foreign media party has turned in a bid for the rights.

The rights have been eagerly fought over the years. When the public broadcast company lost the rights to Talpa, Talpa paid 35 million euro for it. Yet the broadcast station lost at least a half million viewers due to the change in format and the commercials during the broadcasts. This round of bids might top the 100 million euro, which novice Zesko is said to be prepared to pay. Just twenty years ago the rights were worth 1,4 million euro.

The Premier League combination, which is selling the rights, will take its time for a decision. They have had two bad experiences in the past years. The telecom company Versatel/Tele2 wanted to use soccer to draw in new clients and when this did not work it started to sell out its rights to the digital channel of KPN. And the Talpa/Ten transfer of the rights to RTL has not brought the premier league more exposure; in fact due to the change of stations people have lost track of the premier league. So the question for the premier league combination is now, whether they will accept the high bid of the cable operators’ consortium or whether they will cut the package up and offer it to separate companies, who in turn can make their own distribution combines.

From the content point of view this bidding is interesting. We are talking about highly appreciated sports content. There was a day that on Sunday night at 7 o’clock no less than 4 million sat ready on the couch for the summaries; now only 3 million find the proper broadcast station. So why should the price go up, when the number of viewers is going down. On the other hand live games will be able to be viewed with a set-top box or by IPTV subscription. So there is certainty about part of the revenues.

So far soccer content has been a cross-channel commodity for the Premier League combination and the bidders. No cross-media potential has been seen yet in soccer content. The stress of soccer content has been on distribution; only the larger clubs have been able to form a community and have their virtual club house.

Blog Posting Number: 981

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