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Sat-ND, 14.12.97





Sat-ND, 14.12.97



The Return of the Amazing Dr Sarmaz and...

RUPERT WATCH !




Welcome once again to the newsletter solely dedicated to the activities of the world's only global media mogul. Watch Rupert Murdoch adding country by country to his empire on his exciting, apparently never-ending journey around the globe!

(This issue also includes a gratuitous copy of a rather useless publication called "Sat-ND.")




Today's Rupertoids

BUSINESS
Lachlan to take over
LATIN AMERICA
Sky 2, Galaxy 1
TED TURNER
True Love?
Ted Turner on Mr Murdoch
Mr Murdoch on Ted Turner
UNITED KINGDOM
Brussels against digital BSkyB monopoly
CHINA
WSJ: Phoenix on the rise
USA
EchoStar alledges cable conspiracy
More football for Fox?

MCI to sell News stake?






BUSINESS

Lachlan to take over

Media magnate Rupert Murdoch expects his son Lachlan to become head of News Corp Ltd.

Mr Murdoch was quoted as saying that "when mortality asserts itself, my four children will be the inheritors of the shares and it's their decision, but currently I thought there was a consensus between them that Lachlan would be the one."

He added that he had no plans to step down or even die, and that Lachlan was "doing a brilliant job in Australia running our operations there." Lachlan, 26, is currently executive chairman of News Corp's Australian subsidiary News Ltd.

Top




LATIN AMERICA

Sky 2, Galaxy 1

Mr Murdoch has inaugurated Sky Latin America's new US$140 million international satellite broadcast centre.

Mr Murdoch said he saw Sky Latin America breaking even by the end of 1999. He claimed the venture was outselling rival Galaxy Latin America, which is headed by DirecTV International, "about two-to-one."

Sky Latin America is a US$1-billion, direct-to-home satellite TV venture owned by News Corp, Mexico's Grupo Televisa, Brazil's Organizacoes Globo and Tele-Communications International Inc.

Top




TED TURNER

True Love?

Mr Murdoch in an interview admitted he always has admired his arch rival, Time Warner vice president Ted Turner.

"I've never abused him, never attacked him. In fact, I've always rather admired him. I don't know what got into him," he told a news agency. Asked for a response to Turner's proposal to fight out their differences in a boxing ring, Mr Murdoch however remarked "That is a silly question. I don't want to respond."



Ted Turner on Mr Murdoch



Mr Murdoch on Ted Turner

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UNITED KINGDOM

Brussels against digital BSkyB monopoly

European Competition Commissioner Karel Van Miert vowed to prevent Rupert Murdoch's BSkyB from dominating the digital TV market.

Van Miert said it was his duty to prevent monopoly positions from being created even though, in this case, it may appear as though the EU Commission wanted to hamper the development of digital television in general.

As usual, it's unclear whether the UK government will listen to what Brussels says – even though the government is a new one. Some of Mr Murdoch's newspapers that earlier supported the former (conservative) government are meanwhile supporting the current (Labour) government.

As an analyst was even quoted as saying, "the government has a love affair with Murdoch."

Top




CHINA

WSJ: Phoenix on the rise

According to the Wall Street Journal, Mr Murdoch is back in favour in China. The trick is that his joint venture with some Chinese companies, Phoenix, is downplaying its links to Mr Murdoch who once remarked satellite TV would help undermine dictatorial regimes.

Whosoever Mr Murdoch wished to please with such a silly remark, it did not please the Chinese. Nonetheless, Phoenix is 45%-owned by Mr Murdoch's Asian venture Star TV. The balance is held by Today's Asia Ltd., a media company with ties to mainland China (45%) and China Wise International Ltd., an international sales and advertising agent for China's TV stations (10%.)

As the cable networks that were set up in China over the past few years are in desperate need of some programming, Phoenix now reaches about 36 million of the country TV households.

What's more important: advertising revenues are on the rise. On a recent sales presentation in Beijing, advertisers booked air-time worth US$34 million – twice as much as the year before.

Top




USA

EchoStar alledges cable conspiracy

Remember the former strategic alliance of EchoStar and News Corp? The deal was announced in February and fell apart in May. It's due for trial next June as EchoStar claims up to $5 billion in damages from News Corp.'s alleged breach of contract.

Meanwhile, lawyers for opposing sides met in the courtroom of a federal judge to determine the scope of discovery in the case. EchoStar attorneys will allege a conspiracy in which the major cable-TV companies pressured Mr Rupert Murdoch to cancel the planned US$1-billion satellite merger or risk losing cable carriage for his many Fox channels.

Attorneys for News Corp. will instead focus on a disputed satellite encryption system that it claims led to Sky's demise. However, News Corp. has indeed teamed up with the "cable guys" and their satellite service PrimeStar after the deal with EchoStar had crumbled.

News Corp. attorney William Leone admitted that the company ended up in a worse competitive position as a passive investor in Primestar compared to its 50-50 partnership proposal with EchoStar.

Top



More football for Fox?

Buying the TV rights to the U.S. National Football League were important for Mr Murdoch to boost the public interest in his Fox Network. It wasn't exactly cheap, though: in December 1993, he agreed to pay US$1.38 billion.

Mr Murdoch now said he was "certainly very hopeful of retaining our rights and that negotiations will be concluded, I'm fairly certain, perhaps before the New Year but certainly not later than the end of January."

Top



MCI to sell News stake?

There is another problem for News Corp., and once more it's one of those strategic alliances. MCI Communications Corp, owns a stake in the company that is currently worth US$1 billion.

The problem lies with MCI which is likely to be taken over by WorldCom. The resulting company is expected to sell parts of its business, and that may include the stake in News Corp.

"If they called today and said here's the shares at a discount we'd look at it, but we've not made any decision," said Mr Murdoch – adding that "we've got the cash to do it two or three times over."

News Corp. besides has no tangible plans to buy back shares apart from the A$1.3-billion plan recently announced. "I would say that in the long term as our profits rise our policy will be certainly to continue with that, but we've not made that commitment and we'll be looking at that again in a couple of years," Mr Murdoch was quoted as saying.

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Sat-ND, 14.12.1997 – Turn the ugly light off, God

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Today's Headlines

READING
Florida in space
CORRECTION
Super Karel strikes again (Sat-ND, 14.12.97)
FEEDBACK

New Zealand (Sat-ND, 9.12.97)






READING

Florida in space

Florida Today has posted an interesting special story, which comes in eleven parts, about the future of rocket launches in general and from Florida in particular.

There's even an article about new launch sites all over the world. I can't tell you what's in there because the server was extremely slow tonight (and no, it was not my provider's fault; I did have ISDN-speed connections to other sites at the same time.)

Related Links

USELESS FACT: First novel ever written on a typewriter was Tom Sawyer.




CORRECTION

Super Karel strikes again (Sat-ND, 14.12.97)

Well, did I write that "The EU commission had recently warned Premiere, which teamed up with former competitor KirchGruppe, to market the Nokia-manufactured d-box"? True.

The next paragraph starts "Both groups reportedly agreed to stop selling the d-box..." Well, before any complaints arrive: It means that Premiere will not sell the d-box to its customers for the time being. Unfortunately, there is no general stop in selling the device.

USELESS FACT: Armadillos are the only animals besides humans that can get leprosy.




FEEDBACK

New Zealand (Sat-ND, 9.12.97)

Somebody by the name of Philip, who admits that he is quite pissed off by all that, sent in an interesting comment about the closure of New Zealand's MAX music channel. I think I'll just reprint it!

Closing MAX is a clear indication of what happens when TV is driven entirely by the money people and bugger anyone else. Things that may not have been apparent from the bare bones reports:

  1. In New Zealand, frequencies are like real estate. The State doesn't own them -- the person that has bought them does. That's where the value lay in MAX. Failing broadcasters sell the frequency. The two MAX founders walked away with a couple of millions of dollars for their trouble. The MAX staff got two weeks pay a couple of days before the sale went through, and won't get anything else. The company wasn't a real disaster -- they just wanted (and got) their capital back. That's the free market...

  2. Broadcast Communications Ltd is a wholly owned subsidiary of TV NZ Ltd, a state owned company, paid for by advertising (14 minutes every hour, the worst high limit in the world), which already has two national tv channels, mostly full of imported cheap crap.

  3. The other two national free-to-air channels belong to CanWest. It runs one as a national entertainment channel, and has leased out most of the other one to MTV. Yes, that MTV, with all the video clips and so on. Your starter question for ten points: name any New Zealand performer or group that has been given significant exposure on MTV, anywhere that you can see, ever.

  4. MAX was based on its local shows, local production of music and anarchy aimed to the Auckland (pop 1.1 million) audience. Many of them liked it. Artists depended on it for exposure.

  5. MTV targeted the same audience.

  6. Your bonus for twenty points: who in TVNZ or CanWest talked to which people about what deal was to be done to boost ratings on which internationally owned (=Viacom USA) channel in which small South Pacific nation?

Oh yes, and for the Rupertwatch. Which international megacorp with Sky in its name is trying to get control of the NZ pay TV company co-incidentally called Sky, which offers five UHF pay channels and is just starting to get into satellite DBS?

Is there no beginning to these people's modesty and restraint?

Top

USELESS FACT: New Zealand is the only country that contains every type of climate in the world.




Copyright 1997 by Peter C. Klanowski, pck@LyNet.De. All rights reserved.

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