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SAT-ITALY 14.11.1997

SAT-ITALY - EDITION 42/97 - November 14th 1997 -
Italian Satellite and Media news edited by Branislav Pekic


MEMORANDUM OF UNDERSTANDING SIGNED
A memorandum of understanding for the launch of a single Italian digital
platform was signed in Rome on November 6th. As we reported last week, the
new company which will be operate the platform will have the following
shareholder structure: Telecom Italia (40%), Canal Plus (30%), while RAI,
Mediaset and Cecchi Gori Group Media Holding will each have a 10% stake.  A
proper signing ceremony of the deal is expected by November 30th, but
before becoming operative, it will be under scrutiny by the Italian and
European anti-trust authorities.
Telecom Italia will have the honor to nominate the CEO of the new digital
platform and the eventual candidate will have to gain approval from a
majority of shareholders which equals 61% of the capital (for example
Telecom Italia and Canal Plus or Telecom Italia and all the Italian
shareholders). All the shareholders will have the right to at least one
post in the administrative council.
At the last moment, two small details of the agreement have been modified.
First of all, the digital receivers needed to receive the new digital
services will have an open "conditional access module", i.e. a common
interface. Secondly, Telecom Italia and RAI have been given the go-ahead to
buy and produce TV programs, even for pay-per-view, (through their
joint-venture NewCo in which RAI has an 80% and Telecom Italia a 20% stake)
and will also be in charge of program schedules and marketing of channels
in the digital platform. 
This same opportunity has also been offered to Telepiu, which will continue
to be controlled by the French company Canal Plus.  The principal Italian
media companies will have a minority stake in Telepiu - Telecom Italia
(10%), Fininvest/Mediaset (10%), RAI (5%) and Cecchi Gori (5%), while some
quotas will be reserved for eventual future investors, be they Italian or
foreign. Telepiu will continue to operate two analogue pay-TV channels
which are transmitted terrestrially throughout Italy, but will still
provide movies and sports events (including Italian league football and
Formula 1) for the single digital platform.
The president of Mediaset, Fedele Confalonieri expressed his hope that the
deal will create more jobs and bring Italy closer to other EU countries in
a technological sense.
- Il 6 novembre, è stato firmato il memorandum d'intesa preliminare per la
costituzione di una piattaforma digitale via satellite e cavo a maggioranza
italiana. Nella società che gestirà tale piattaforma, Telecom Italia avrà
una quota del 40%, Canal Plus del 30%, mentre Rai, Mediaset e Cecchi Gori
Group Media Holdings avranno una quota del 10% a testa. L'intesa dovrà
essere trasformata in un accordo vero e proprio entro novembre per poi
passare al vaglio dell'Antitrust nazionale e, forse, di quello europeo,
prima di diventare operativa. 
Sono state apportate all'ultimo momento due lievi modifiche: i ricevitori
della tv digitale dovrànno avere un interfaccia comune; mentre Telecom
Italia e Rai - tramite la società comune chiamata Newco (80% RAI e 20%
Telecom) - potranno acquisire diritti e produrre contenuti, curare i
palinsesti e il marketing dei canali della piattaforma digitale. 
L'accordo prevede la separazione della tv a pagamento trasmessa in
analogico da quella digitale per cui Tele+ continuerà ad offrire tutti i
suoi programmi, canali premium e prodotti pay per view. Inoltre è previsto
che Cecchi Gori, Rai e Telecom prenderanno una partecipazione finanziaria
in Tele+, che sarà del 10% per Telecom e del 5% ciascuno per i due network
televisivi mentre Mediaset, attraverso la Fininvest, continuerà a detenere
il 10% di Tele+. Rimarranno disponibili alcune quote per eventuali nuovi
soci.  "Speriamo che tutto questo - ha sottolineato il presidente di
Mediaset, Fedele Confalonieri - si traduca in un'attività che fa utili,
fatturato, che crea posti di lavoro e ci porti allo stesso livello di altri
Paesi". 


RAI YET TO RATIFY DIGITAL DEAL
The administrative council of the Italian public radio and television, RAI,
has yet to ratify the memorandum of understanding concerning the single
Italian digital platform. This does not mean a no, but the director
general, Franco Iseppi will now have to give more details of the project.
According to the memorandum, RAI will be in charge an 80% stake in the
company NewCo that will provide programming for the single digital
platform. Initial estimates of costs involved are around 400 million DM
over a three year period and the public broadcaster does not want to invest
such a large sum which needs to obtain the necessary ministerial
authorization if it is to play a marginal role within the platform.
The digital deal was also the main topic of discussion during a meeting
held in Rome on November 12th, between the Italian Prime Minister Romano
Prodi and RAI President Enzo Siciliano
- Il consiglio di amministrazione della Rai non ha ratificato il memorandum
d'intesa sulla piattaforma digitale. La Rai, che avrà la gestione ordinaria
e l'80% di tale società, ha chiesto un approfondimento per capire se tali
opportunità offerte dal memorandum d'intesa - riservate anche a Canal Plus,
Mediaset e Cecchi Gori, anche in partecipazione con terzi - saranno
effettivamente perseguibili e a quali condizioni. Tra l'altro una prima
stima dei costi dell'eventuale accordo preliminare per la Rai arriva a
diverse centinaia di miliardi (intorno ai 400 in tre anni) e il servizio
pubblico, che dovrà chiedere autorizzazione al ministero, non vuole
investirli senza assicurarsi un ruolo non marginale sulla piattaforma.


TELECEI
The Italian Bishops Conference (CEI) has confirmed that they plan to launch
a new religious satellite channel on November 30th. The channel, which is
provisionally called TeleCEI, will initially broadcast three hours a day,
in digital MPEG-2 via the EUTELSAT HOT BIRD 2 satellite. Transponder space
has been leased from the Italian pay-TV network Telepiu. Around 20 million
DM has been invested for the start of the new channel. 
The program schedule will be made up of religious and cultural programs
with a special emphasis on the family and teenagers as well as of reports
from dioceses throughout Italy. The programs will be offered to local
religious TV stations for re-transmission. There are currently 90 such
stations throughout Italy.
- La TV satellitare della Conferenza Episcopale Italiana (CEI) dovrebbe
cominciare a trasmettere dal 30 novembre, con tre ore di programmazione
giornaliera. Per la diffusione via satellite sarà affitatto un canale in
chiaro, e quindi gratuito della piattaforma digitale di Telepiu. Il
palinsesto di avvio punterà su programmi di contenuto religioso e culturale
con un ampio spazio dedicato ai temi della famiglia e del mondo giovanile e
con interviste ai vescovi sulle attività delle diocesi.


NEW CHANNELS TO JOIN TELEPIU PACKAGE
Two new satellite TV channels are set to join Telepiu's D+ digital package.
It has been announced that the Italian version of the popular French
thematic channel Canal Jimmy is set to launch officially on November 15th.
The channel is aimed at a younger audience and will broadcast mainly "cult"
programs from the 60's and 70's. The program schedule will include programs
on automobiles, rock concerts, old TV series such as "The Avengers" and
"Batman" as well as animated series. Another channel whose arrival is
imminent is Eurosport, which will transmit some of its programs in Italian. 
- La versione italiana del canale tematico francese Canal Jimmy dovrà
cominicare a trasmettere il 15 di novembre. Punta su un pubblico giovane
con programmi "cult" degli anni 60 e 70. Si va dagli vecchi telefilm come
"The Avengers" e "Batman" agli concerti rock. E' imminente l'arrivo di
Eurosport, versione italiana.


NEWS IN BRIEF
- News for Italian football fans - regular feeds of Italian league football
have been noticed on Sundays on the INTELSAT (18 degrees West), frequency
4,166 GHz/RH. Other satellites have also occasionally been used - INTELSAT
(62 degrees East), frequency 4,188 GHz/LH and INTELSAT (18 degrees West),
frequency 4,166 GHz/LH.
- The specialised business channel Bloomberg TV has opened a studio in
Milan, in co-operation with the Italian news agency Ansa. The studio will
be used for interviews and reports from the fashion world.
- According to the monthly publication "Virtual", there are 1,100,000 cable
households in Italy. Originally projections were that by the end of 1998,
there would be 10 million cabled households, but this goal now seems
unreachable. 



PROGRAM HIGHLIGHTS ON RAI TV CHANNELS FOR WEEK NOVEMBER 16-22
(All times Central European)

MOVIES
16.XI
RAI DUE, 20:50h - Nessuno escluso - Part I (Italy), starring: Giancarlo
Giannini, Ennio Fantastichini
17.XI
RAI UNO, 20:50h - La scuola (Italy-1995), starring: Silvio Orlando
18.XI
RAI DUE, 20:50h - Nessuno escluso - Part II (Italy), starring: Giancarlo
Giannini, Enio Fantastichini
RAI DUE, 00:35h - Gioco pericoloso (USA-1991), starring: Dennis Hopper,
Robert Carradine
19.XI
RAI UNO, 20:50h - Hidden in America (USA-1996), starring: Beau Bridges,
Bruce Davison
RAI DUE, 20:50h - Blackwater trial (USA-1996), starring: Judd Nelson
RAI DUE, 00:35h - Jakarta (USA-1988), starring; Christopher North, Sue
Francis Pai
20.XI
RAI TRE, 20:50h - Sniper (USA-1992), starring: Tom Berenger, Billy Zane
21.XI
RAI UNO, 22:50h - Asja e la gallina dalla uova d'oro (France-1994),
starring: Inna Churikova, Alexander Surin
22.XI
RAI DUE, 20:50h - Ed McBain's 87th precinct: Heatwave (USA-1996), starring:
Erika Eleniak, Dale Midkiff
RAI UNO, 00:35h - La frattura del miocardio (France-1991), starring;
Jacques Bonnaffe, Dominique Lavanant

Note:	All movies transmitted in the prime time slot are subtitled on RAI's
teletext pages 777 (Italian) and 778 (English)

SPORT
16.XI
RAI DUE, 19:00h - Basketball (men): Italian league
17.XI
RAI TRE, 22:55h - Boxing: World title fight (WBU) in the welter category,
Alessandro Duran-Peter Malinga
20.XI
RAI TRE, 16:20h - Basketball (women): Italian league, Del Verde
Chieti-Sacmaplast Reggio Emilia
21.XI
RAI TRE, 16:30h - Volleyball (women): Italian league


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