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UK satellite broadcaster BSkyB will give up most of its stake in terrestrial television broadcaster ITV, reports UK media. The UK Competition Authority ruled against BSkyB’s 17% stake in ITV. BSkyB, controlled by News Corporation, decided not to prolong the inevitable with further appeals. (See background here)
“Sky will not pursue a further appeal in relation to its investment in ITV plc,” said the BSkyB statement. “We have entered into undertakings with BIS and we can confirm that Morgan Stanley is acting as sole book runner on the placement of approximately 10.4% of ITV.”
BSkyB CEO James Murdoch spent, roughly, €1 billion acquiring the ITV stake to prevent a takeover by Richard Branson in 2006. The company has taken write-downs on the ITV shares over the last three years. James’ job is not in jeopardy. (JMH)
The Spanish government is cutting by one-eighth its institutional advertising and communications budget, reported El Mundo (February 5). The Advertising and Communication Plan, approved last week, will cut to informational campaigns to 114. The total budget is now €130.9 million.
Many governments – most, in fact – spend substantial amounts for campaigns promoting culture, citizenship, environmental awareness and healthy habits. In some countries, government is a top 5 major advertiser. (JMH)
More often than not, television channels without Olympic Games rights fall back on inexpensive programming during those weeks. Viewers just aren’t there, right?
Sweden’s TV4, without Winter Olympic Games rights, is selling itself with new station promos reminding viewers that some Olympic sports have few thrilling moments. The three rotating promos focus on biathlon, cross-country skiing and, yes, curling. (See them via Dagensmedia.se)
The on-air promos are supported with print ads. The tag line, roughly translated, is “the real excitement is on TV4.” Public broadcaster SVT has rights to the Vancouver Winter Olympics. (JMH)
Television ad spending – gross bookings, at least – rose in January 23% over the same month last year for Poland’s four top channels, reports AGB Nielsen Media, quoted in Gazeta Prawna (February 5).
According to the data released, TVN led with PZL 131.7 million, up 17.5%, followed by Polsat – 121.6 million, up 19%. Polish public channels booked the biggest increases; 118.6 million (up 35%) for TVP1 and 73 million (up 20%) for TVP2. (See Poland market data here)
“Congestion for our advertisers grows from week to week,” complained a media buyer at Starlink, quoted in the article. “Ad prices have risen.”
“The market revived,” said another ad buyer. (JMH)
From Last Weeks ftm Tickle File
UK Reviewing Libel Laws
The UK Justice Secretary has appointed a panel mostly made up of lawyers and
editors to review the UK’s libel laws. Journalists claim that current law has a “chilling effect” on freedom of expression. Not surprisingly the lawyers disagree. Their discussions should make for lively debate – too bad they won’t be televised.
Among the libel lawyers are two of the UK’s most prominent. Andrew Stephenson, a partner at the feared Carter-Ruck just last week complained loudly when the government announced proposals that would limit lawyer fees against the defendant in a “no win no pay” action. Lawyers, if they won, had been able to charge the losers 100% of their fees (in addition to what they got from their own clients) and newspapers said the fear of such costs means they settle or don’t print a story in the first place. The government said the 100% bonus should be reduced to 10%. Also on the committee is Rod Christie-Miller, partner and chief executive at also-feared Schillings. He, too, came out against the government’s plan to reduce the bonus.
Among the media representatives on the panel are Robin Esser, executive managing editor at the Daily Mail (The Mail has been particularly vocal against current libel law), Sarah Jones, head of litigation and intellectual property at the BBC, Marcus Partington, chairman of the Media Lawyers Association and legal director of Mirror Group Newspapers; Gill Phillips, director of editorial legal services at Guardian News and Media and Sunday Times editor John Witherow.
The group is expected to report next month. UK general elections probably will be held in May.
Yahoo And AP Sign – But Where’s Google
The AP is desperate for increased online funds since its core newspaper client base, suffering dramatic advertising revenue losses, has wrung millions of dollars of concessions from the American news agency. So no doubt it has been engaged in some real hardball renegotiations with Yahoo and Google. Yahoo has now re-signed, but AP material has not been updated on Google for more than a month -- probably Google showing the AP (and perhaps the media in general) what really happens to page views if Google isn’t there to push readers their way.
Yahoo has had a very long relationship with news agencies – indeed one of its primary investors in the early days was none other than Reuters and ftm partner Phil Stone still remembers the day in Silicon Valley when Jerry Yang came to talk to an assembled group of Reuters media executives and he gave each his card which announced his title as “chief yahoo”. Now, that was culture shock.
The financial arrangements for the Yahoo-AP renegotiations were not announced. While AP has licensed its news for Yahoo use since 1998, the formal business relationship with Google didn’t get off the ground until 2006.
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The Perils of Constantly Rethinking
EU Commission to Facebook: Grow Up!
Odds Still Good on Product Placement
The candidate taking Ukraine’s presidency will face a changed country. Before the 2004 Orange Revolution Ukraine’s media reflected the country’s dull, post-Soviet persona. That has changed.
