Carlyle Group buys Kingston Inmedia

Global private equity firm The Carlyle Group today acquired Kingston Inmedia, the satellite service provider from Kingston Communications (Hull) plc, the UK alternative carrier, in an all-cash deal of £34 million. Kingston Inmedia delivers enterprise, broadcast and internet solutions to business customers using satellite-based technologies. 2003 revenues were £33.4 million with EBITDA of £5.7 million. Kingston Inmedia has 165 employees.

“Kingston Inmedia is led by an excellent and committed management supported by a high quality asset base, strong customer service and a competitive offering. We believe the company will flourish as a private company and we look forward to working with the team,” said Bruno Mourgue d’Algue, Associate Director, The Carlyle Group.

Nick Thompson, CEO of Kingston Inmedia, commented, “This is a great opportunity for Kingston Inmedia. Carlyle’s significant international interests will enable us to capitalise on a number of expansion opportunities that were too divergent for our previous owner. With the strong support of Carlyle we hope to grow the company significantly over the next years.”

Malcolm Fallen, CEO of Kingston Communications said, “I am confident that Kingston Inmedia will thrive under its new ownership and wish the dedicated, talented team who work in the business every success for the future.”

The company will continue to trade under the name of Kingston Inmedia in the immediate future.

Mobile telephone news for Russia from the BBC

The BBC has teamed up with hardware-software provider Solvo International to launch a mobile telephone news service in Russia. BBC Dial-Up News provides mobile phone subscribers in the Moscow region with access to international news, in Russian and English. They simply dial 0613 for instant news updates. Solvo International makes BBC Dial-Up News service available to the users of BeeLine network in the Moscow region.

The deal will also be extended to the subscribers of another major Russian mobile operator, MTS, and if the service proves successful in the Moscow region, both BeeLine and MTS plan to expand it throughout Russia.

The BBC’s news bulletins are updated from London every 30 minutes providing subscribers to the service with the latest information on world events. The BBC Dial-Up News service costs the equivalent of US $0.50 plus VAT per minute.

The Head of BBC Russian Service, Sara Beck, said: “Russia is a very important market for BBC World Service, and we are constantly seeking new ways to serve our Russian-speaking audience better. BBC Dial-Up News is a new service for the community which is rapidly integrating into the world’s socio-economic system, as mobile phones have become an essential tool to many Russians.”

Leonid Arbatman, the President of Solvo International, added: “Listening to the BBC news is a time-tested habit for Russian news seekers. Through Solvo International’s cutting edge technology and market leadership in innovative products and services in Russia, the partnership with the BBC will provide mobile phone subscribers in Russia with a way of keeping abreast with the world events which is unique for this market.”

In addition to the bulletins in Russian and English, BBC Dial-Up News service also offers its Russian-speaking subscribers business news and short English language lessons, A Phrase a Day.

TV ÓÈKO free-to-air via Astra

SES ASTRA and Stanice O, a media company based in Prague, Czech Republic, have teamed up for the free-to-air digital distribution of Czech channel TV Óèko. TV Óèko is Czech Republic’s first dedicated music and lifestyle channel with a strong emphasis on Czech and Slovak music.

Starting May 1st 2004, TV Óèko will be broadcasting free-to-air via the ASTRA Satellite
System at 19.2 degrees East (ASTRA 2C, transponder 57, 10832.25 MHz, Horizontal, 22
Msymb/s, FEC 5/6), currently reaching over 28 millions Direct-To-Home households in 30
European countries.

Alexander Oudendijk, SVP Sales & Marketing at SES ASTRA comments: “We are very
pleased to have TV Óèko on board as our first Czech free-to-air TV channel. TV Óèko is
an attractive addition to our existing line-up of over 100 digital Free-to-Air TV channels.
Furthermore, the agreement with TV Óèko represents a further strengthening of ASTRA’s
attractiveness and position in the Central and Eastern European market.”

TV Óèko´s CEO, Jiri Balvin says: “We decided to enter into an agreement with ASTRA
because of its high quality of service and optimal market reach in both the Czech and
Slovak Republics. Furthermore, the signing with SES ASTRA will enable our Czech and
Slovak artists to showcase their talents across Europe. In this respect, the start of TV
Óèko on ASTRA and the Czech and Slovak Republics entering the European Union on
the same date is a nice symbolic coincidence.”

DW-RADIO expands programming for the U.S.

Deutsche Welle’s broadcast Newslink Plus, available worldwide on shortwave, now brings a full hour of news and sound-rich features from its studios in Bonn, Germany. The programme is taken down live via satellite by Chicago-based distributor WFMT Networks at 9:00pm EDT and is immediately transmitted on the public radio satellite as a live programme. Stations have the option of using the programme live or time shifting it for later broadcast in the evening, and of broadcasting the first 30 minutes of the programme.

Greg Fitzgerald, DW-Radio’s marketing and distribution coordinator in the US, said the programme is being produced specifically to meet the format needs of public radio. Said Fitzgerald, “Newslink Plus will be produced with the format features most public radio stations request, including the ability to begin the hour with an NPR newscast”.

Why another international news broadcast for the US? One thing public radio listeners were clear on during the war in Iraq was the importance of a variety of viewpoints from around the globe. Says DW-Radio´s editor-in-chief, Uta Thofern: “Even if not censured, the media everywhere in the world cover events from their national perspective, a trend that is enhanced during crises. The more strained international relations are, the more important becomes international news coverage.”

Fitzgerald adds “there is no better way to get a new perspective on a major international issue than from correspondents and producers working in a radio system far removed from the Washington beltway”. Fitzgerald continued, “Newslink editors and producers don’t rely on the New York Times and Washington Post as their primary guideposts. Most of the editors in US newsrooms don’t have access to the European news resources available to Deutsche Welle’s news team, because most don’t speak the language and the news agenda in Europe is very different.”

Deutsche Welle distributes a wide range of multimedia worldwide in 31 languages. It relies on a multinational-multilingual team of 1500 people from more than 60 nations at its Radio, TV and Online divisions.

BBC report on digital switchover published

The BBC has today published its first report on digital switchover, Progress Towards Achieving Digital Switchover, following its submission to the Secretary of State for Culture, Media and Sport. The report states that digital switchover is challenging but achievable within the Government’s timetable, given continued consumer enthusiasm and the right policy framework. The report sets out key recommendations that the Corporation believes are essential if the UK is to achieve switchover from analogue to digital television.

Foremost, switchover can be achieved within the Government’s timetable if it makes a clear commitment including establishing an appropriate regional switchover sequence. Once this has been achieved, the BBC is also proposing the creation of a dedicated and properly staffed organisation to manage the switchover programme. Additionally, significant investment must be secured to support the marketing and communications campaigns that will be key to ensuring that the audience is able to make the transition to the fully digital world.

The final part of the digital jigsaw identified in the report is the development of a viewer-friendly, non-subscription digital satellite option. On this, the Corporation welcomes the opportunity to work with other organisations as quickly as possible to begin to make a non-subscription digital satellite option a reality.

Growth of the UK’s digital market has been a great success to date, with digital television available in over 54% of homes with a significant contribution from Freeview. The BBC’s investment in its digital channels and subsequent promotions has also played a pivotal role in exciting consumer interest in digital, tackling their initial confusion and assuaging their fears.

Moving forward however, the BBC said that there was a need for the Government to recognise the risks of switchover for the industry and work to underwrite the costs of any delays. Carolyn Fairbairn, Director of Strategy and Distribution, BBC, added: “The BBC has been making a vital contribution to bringing public service broadcasting into the digital age. “On the final stage of the journey towards a fully digital Britain we want to see our services available to all licence fee payers as quickly as possible and ensure that there are no pockets of people who are digitally disenfranchised. Therefore as we move closer towards this common final goal, the BBC will continue to play an important role in partnership with both Government and other organisations to realise a fully digital Britain.”

The BBC’s report is available online.

ABA commences investigation into adult satellite services

The Australian Broadcasting Authority has released terms of reference for an investigation into ‘adult services’ being broadcast into Australia from overseas via satellite. The ABA has received complaints concerning the apparent availability of ‘pornography’ on these adult services.

‘The broadcasting of program material that has been refused classification, or has been classified as ‘X’ by the Office of Film and Literature Classification is prohibited,’ said Professor David Flint, ABA Chairman. ‘A formal investigation will enable the ABA to consider all relevant material and reach a view on whether there has been a breach of the Broadcasting Services Act.’

The ‘adult services’ being investigated include: Free-XTV and Backroom, Sexz.TV and BlueKiss.

The investigation will be conducted into the following matters:
• Into which category of broadcasting service, listed in section 11 of the Broadcasting Services Act, do these adult services fall?
• What person or persons provide these adult services?
• Do these services comply with the Broadcasting Services Act and any applicable licence conditions and codes of practice, or any international cooperative agreements, particularly with regard to program content?
• What action, if any, should the ABA take in relation to its findings on the matters listed in paragraphs (a) to (c) above?

The ABA will seek further information from service providers before finalising a report. The terms of reference are available on the ABA website.