The Morning Briefing

INTELLIGENCE FROM THE TMT SECTOR                                             From PA Business

TUESDAY, OCTOBER 30, 2007

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TODAY'S HEADLINES:

+ Scottish borders get digital switchover date (Broadcast)

+ BSkyB broadband's 1m subscriber milestone (Internet)

+ BBC Worldwide 'planning 30 new channels' (Broadcast)

+ BBC Trust set to speed up complaints process? (Policy)

+ Verizon Q3 net income falls 34% to $1.27bn (Telecoms)

Good morning!

WHAT'S BREAKING NOW...

 

+ Internet gaming company 888 Holdings announces Q3 net revenues up 37% on a year earlier to $52.5m, adding that Q4 trading has so far been around 11% higher than in Q3, so full-year results should be in line with expectations.

 

+ Edinburgh-based chipmaker Wolfson Microelectronics announces third-quarter pre-tax profit of $14.7m, up from $10.7m a year earlier, on revenues up 21% from $58m to $70.4m.

 

+ Online betting firm 32Red reports interim first-half pre-tax profit of £791,278, down from £645,505 a year earlier, on revenues up 47.2% to £9.1m.

 

+ Media Corp announces appointment of Nilesh Jagatia to its board as group finance director.

I N T E R N E T

 

BSkyB said its broadband service has passed the 1m subscriber mark just over a year after launch, making it the sixth largest high-speed internet provider in the UK. Sky said figures for the year to July also showed it was the fastest-growing provider in the country, adding 259,000 customers over the period.
Source:
http://www.totaltele.com/View.aspx?ID=96162&t=2
http://www.guardian.co.uk/media/2007/oct/29/bskyb.digitalmedia


The Times reported that Google Q3 headline advertising revenues of £327m surpassed ITV1's £317m, the first quarter in which the search giant's ad revenues have beaten the UK's top commercial broadcaster.
Source:
http://business.timesonline.co.uk/tol/business/industry_sectors/media/article2767087.ece

Yahoo! founder Jerry Yang defended his company amid criticism that it has performed poorly compared to its rivals, saying: "If you look at Yahoo! over the past few years, we have been generating revenues north of $5bn and operating cash flow of over $1.9bn, so people shouldn't look at companies with that kind of profile and ask what went wrong. Yahoo! today is a great consumer brand, one of the strongest brands on the internet." But he admitted people had "probably overplayed" Yahoo's ability to keep pace with arch competitor Google.

Source:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/30/ccyang130.xml

 

Online video service Hulu, which has begun beta testing, has agreed content deals with Sony Pictures and MGM.
Source:
http://www.reuters.com/article/technologyNews/idUSN2854415820071029

Facebook's chief revenue officer Owen Van Natta has conceded that Microsoft's $240m investment in the site, valuing it at $15bn, may make staff recruitment more difficult as an expected rise in stock options could deter the most sought-after applicants.
Source:
http://online.wsj.com/article/SB119361242157474303.html?mod=mm_media_marketing_hs_left

NBC Universal CEO Jeff Zucker warned that Apple's iTunes service is undermining the ability of traditional media companies to sell online content at a profitable rate, saying: "We know that Apple has destroyed the music business - in terms of pricing - and if we don't take control, they'll do the same thing on the video side." NBC said a month ago it would not renew its contract with iTunes after its request to have Apple charge $2.99 for programme downloads as opposed to the current $1.99m was rebuffed.
Source:
http://www.ft.com/cms/s/0/8f799be2-865a-11dc-b00e-0000779fd2ac.html

French broadband operator Iliad posted a 29.4% rise in Q3 revenue of €307m, after adding 141,000 customers over the period to take its total to 2.767m. The group also said it expects a decision on its bid for the final domestic 3G licence to be made soon.
Source:
http://www.reuters.com/article/technology-media-telco-SP/idUSL2916466620071029

Ask.com has added a white-label version of price comparison site PriceRunner.co.uk to its search service.
Source:
http://www.nma.co.uk/Articles/35505/Askcom+to+launch+shopping+portal+with+PriceRunner.html

 

B R O A D C A S T

 

November 6 next year will be the next key date in the great digital switchover when the Scottish borders becomes the second region to lose its analogue signal. Whitehaven's switch began with the loss of analogue BBC Two on October 17. Digital UK has launched a marketing campaign to highlight the change, with its national manager for Scotland, Paul Hughes saying: "Around 80% of Scots already have some form of digital television, but only around half of all TVs in the home are converted. So it's a huge challenge to complete switchover in Scotland between 2008 and 2011. Some people will find the process easier than others, and there will be special help for those who need it most."
Source:
http://www.guardian.co.uk/media/2007/oct/29/digitaltvradio


BBC Worldwide, the Corporation's commercial arm, reportedly plans to launch an extra 30 channels internationally - on top of the 21 already scheduled before the end of the current financial year - as well as an on-demand service and a HD channel in the US. The newly-announced launches will be made under four brands - BBC Entertainment, BBC Knowledge, BBC Lifestyle and CBeebies.
Source:
http://www.paidcontent.co.uk/entry/419-bbc-worldwide-to-launch-30-channel-internationally-on-demand-online-as-/
http://www.guardian.co.uk/media/2007/oct/29/uknews.bbc


GCap Media
has won the national airtime sales contracts for GMG's nine Real, Rock and Smooth stations. GCap's MD London Fru Hazlitt said: "By adding these stations to our own family of well known radio brands including Classic FM, Capital 95.8 and Xfm, we will be able to offer our clients a powerful and unrivalled radio opportunity across the UK."
Source:
http://www.radiotoday.co.uk/news.php?extend.2628

Channel 4
has regained UK terrestrial rights to MTV's Europe Music Awards from Five. The one-year deal for Thursday's event will see a 75-minute show broadcast on November 11, and returns the awards to C4 where it was broadcast between 2000 and 2004.
Source:
http://www.guardian.co.uk/media/2007/oct/29/channel4.television

NBC Nightly News in the US said it has run successful trials of an ad-sales model under which single companies buy up every slot for a particular edition before returning most of the airtime to the broadcaster to carry additional editorial content.
Source:
http://adage.com/mediaworks/article?article_id=121546

Writers' Guild of America-affiliated screenwriters have only two days of talks left with the Alliance of Motion Picture & Television Producers before their current deal expires. The US body has backed strike action unless a deal is reached over additional payments for digital distribution, and a federal mediator has been called up in a bid to end the impasse.
Source:
http://www.marketwatch.com/news/story/screenwriters-move-closer-strike/story.aspx?guid=%7BC6CF4CEA%2D1CC5%2D4596%2DB8F5%2DEA36944E2BCB%7D http://online.wsj.com/article/SB119345760952773821.html?mod=mm_media_marketing_hs_left&apl=y&r=779595
 

P R I N T

 

Dennis Publishing reported full-year pre-tax profits of £2.06m, up from £361,000 a year earlier, on turnover down from £61.7m to £60.2m, hailing the performance of news digest magazine The Week, whose cover price has been cut, further boosting sales, continuing 18 quarters of circulation growth.

Source:

http://www.ft.com/cms/s/0/ece080b4-867a-11dc-b00e-0000779fd2ac.html

 

The Sun is rolling out a payment scheme in the North West, which will allow 4,000 retailers to scan discount vouchers via readers' mobile phones.

Source:

http://www.guardian.co.uk/media/2007/oct/29/sun.pressandpublishing

 

The Welsh Assembly is almost certain to provide financial support to planned Welsh-language daily Y Byd, due to launch next March, with the annual running subsidy possibly exceeding £1m.

Source:

http://www.pressgazette.co.uk/story.asp?sectioncode=1&storycode=39225&c=1

 

G E N E R A L   M E D I A

 

Granada Ventures' ITV DVD division has teamed up with online retailer Coolroom to offer downloadable movies via Microsoft Media Center, with prices starting at 99p. Publishing director Steve Gallant said: "This deal marks the further development of our digital distribution plans, part of our ongoing strategy to maximize distribution of our diverse range of content." ITV DVD has more than 3,000 titles comprising both modern and classic films.

Source:
http://www.worldscreen.com/newscurrent.php?filename=itv102907.htm

 

Digital radio group UBC Media has signed a deal with Sony BMG to include its catalogue in its Cliq downloads system, which launches on December 3.

Source:

http://www.nma.co.uk/Articles/35504/Radio+giant+UBC+signs+Cliq+deal+with+Sony+BMG.html

 

M E D I A   P O L I C Y

 

Broadcast reported that the BBC Trust will tomorrow announce plans to speed up how editorial complaints are dealt with when it publishes new proposals for how the Corporation handles complaints. The aim, the article said, is for issues to be responded to as soon after broadcast as possible, ending the current situation which can see complaints over editorial matters taking more than a year before reaching the Trust. Heralding the changes, Trust vice chair Chitra Bharucha said: "The BBC is owned by the people who pay for it and the Trust wants to ensure that complaints are received via a system which is open to everyone, consistent in its fairness to all, and simple to follow. For any complaints system to be effective, it must have the confidence of those who might choose to use it and the Trust wants to hear from the public and the rest of the industry about the changes we propose to speed up and simplify the BBC's complaints systems."
Source:
http://www.broadcastnow.co.uk/news/bbc_to_speed_up_complaints_process.html

Labour's Rhondda MP Chris Bryant has made a series of recommendations for S4C ahead of the Welsh-language broadcaster's 25th anniversary later this week. Bryant warned digital switchover could prompt a migration of viewers to Channel 4, and called on the broadcaster to include more English-language programming and have its budget devolved to the Welsh Assembly to safeguard its future.
Source:
http://www.guardian.co.uk/media/2007/oct/29/television.welshassembly

 

T E L E C O M S

 

US telco Verizon Communications posted third-quarter net income of $1.27bn, down 34% on the same period 12 months ago due to a combination of charges and year-earlier earnings from discontinued operations. The telco added 202,000 subscribers to its FiOS fibre optic video, phone and internet service over the period to 717,000.

Source:

http://online.wsj.com/article/SB119365734254474785.html?mod=us_business_whats_news
http://www.ft.com/cms/s/0/bd901c06-861c-11dc-b00e-0000779fd2ac.html


Vodafone is said to be in informal discussions about a €400m deal to acquire the remaining 27% of its German fixed-line business Arcor. A Times report said the telecoms giant had contacted minority shareholders, including Deutsche Bank, about selling their shares.
Source:
http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article2766921.ece


Skype and 3's newly-launched handset has gone on sale priced £49.99, or free to 3 contract customers. 3 parent
Hutchison's finance director Frank Sixt said this move could bring millions of new mobile customers to the businesses.

Source:

http://today.reuters.co.uk/news/articlebusiness.aspx?type=businessNews&storyID=2007-10-29T085144Z_01_L29196328_RTRUKOC_0_UK-SKYPE-PHONE.xml
http://news.bbc.co.uk/go/em/-/1/hi/business/7066271.stm

http://www.ft.com/cms/s/0/690a010e-8646-11dc-b00e-0000779fd2ac.html

 

3G wireless network association GSM said mobile operators including MTN look set to invest $50bn in sub-Saharan Africa over the next five years in a bid to provide access to 90% of the area's population, adding the industry has invested $35bn since 2000.

Source:
http://www.bloomberg.com/apps/news?pid=20601116&sid=aeSOzIvoDZdY&refer=africa

 

Bahrain Telecommunications has announced plans to expand abroad, with CEO Peter Kaliaropoulos saying the group would use its $4bn war chest to acquire operators rather than bid for licences.
Source:
http://www.reuters.com/article/ousiv/idUSL2918418320071029
 

T E C H N O L O G Y

 

Satellite operator SES reported Q3 Ebitda 12.6% down year-on-year at €283.2m on revenue 15.5% lower at €406.9m. The figures beat forecasts, and the group raised its full-year Ebitda target to €1.097bn.

Source:

http://www.reuters.com/article/technology-media-telco-SP/idUSL293298320071029?pageNumber=2

 

Japanese electronics equipment maker Toshiba reported second-quarter net profit of  $218m, down 28% on a year earlier, with operating profit up 38% to $534m, citing a reversal of losses in its computer business and strong demand for chips from music player and mobile phone makers. The firm raised its operating profit forecast for the full year to $2.53bn.
Source:

http://www.bloomberg.com/apps/news?pid=20601101&sid=a0FTV86Zzd_k&refer=japan

http://www.ft.com/cms/s/0/cc7bdc36-868b-11dc-b00e-0000779fd2ac.html?nclick_check=1

 

Figures from the European Information Technology Observatory show Britons are the EU's biggest technology addicts, with the UK expected to spend €15.5bn on equipment such as MP3 players and digital TV in 2007. Germany is second with a predicted spend of €13.3bn.

Source:

http://www.ft.com/cms/s/0/71cb770e-85b1-11dc-8170-0000779fd2ac.html

 

Activist investor Carl Icahn criticised the BEA Systems board for its handling of Oracle's lapsed $6.7bn takeover bid, claiming the issue should be decided by shareholders. (Monday's briefing wrongly called the takeover target BAE Systems - we apologise for this error.)

Source:

http://www.marketwatch.com/news/story/icahn-tells-bea-bring-oracle/story.aspx?guid=%7B7EDE2D19%2D768B%2D4A92%2D8405%2D52B3CD8FE93D%7D

 

Computer-maker Acer has forecast it will ship 25% more PCs in 2008 - taking its global market share to 11%-12% - with last week's acquisition of Gateway expected to allow it to almost double its market share in the US.

Source:

http://news.zdnet.co.uk/hardware/0,1000000091,39290418,00.htm

 

Skinkers has secured £8m in second-round funding to fund development of its LiveStation P2P broadcasting system.

Source:

http://www.guardian.co.uk/media/2007/oct/29/mediabusiness.digitalmedia

 

Microsoft is working on a version of its Windows XP operating system that can be run on the XO machines being distributed in developing countries by the One Laptop per Child Foundation.

Source:

http://www.reuters.com/article/technologyNews/idUSN2514082920071026

 

Notebook computer maker Quanta reported third-quarter net profits of $161.6m, up 36% on a year earlier, on revenues up from $3.39bn to $6.49bn, ahead of the company's forecasts.

Source:
http://www.bloomberg.com/apps/news?pid=20601080&sid=aZmrNnjwgVZo&refer=asia

 

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