Categories
Archive

NSD partners in bitter row over choice of satellite as Brussels deadline nears

DTH Scandinavia

By David South

Financial Times New Media Markets (London, UK), September 21, 1995

The controversial Nordic Satellite Distribution consortium is in danger of collapsing because of a row between two of its three big shareholders.

The row, between Swedish programmer Kinnevik and Norwegian telephone company Telenor, threatens the chances of the consortium coming up with a restructuring that will win acceptance from European Commission competition officials.

NSD has been trying to turn the 1 degree West orbital position – home to the Thor and TV Sat-2 satellites – into Scandinavia’s “hot bird” position. But Kinnevik also plans to take a substantial slice of capacity on the Swedish Space Corporation’s planned digital satellite Sirius-2, at 5 degrees East. Telenor is furious.

It is demanding that Kinnevik drop the plan and also give up its existing transponders at the 5 degrees East position, on the Tele-X and Sirius-1 satellites. Kinnevik already plans to give up its Astra transponders, to the relief of Telenor.

Kinnevik is buying capacity on the rival system simply as a way of hedging its bets. Sirius-2, with 16 transponders offering a mix of digital and analogue channels for the Scandinavian market, could become a powerful satellite and Kinnevik is worried that a strong rival service might be developed on it. The company is thought to be negotiating for six of the 16 transponders (another 16 transponders are aimed at the rest of Europe).

Per Bendix, chairman of the NSD, said that the group could continue without Kinnevik, although it would be difficult to find another company with such large pockets.

He downplayed the rows between the shareholders: “Of course, there are tensions between Kinnevik and Telenor. You can’t imagine a process like this, a complicated business deal, without some frictions which create some warmth. None of the partners can stop this initiative, it has gained too much momentum.”

TeleDanmark, the third member of NSD, has tried to play a mediating role between Telenor and Kinnevik.

One source close to the consortium said: “Kinnevik is definitely interested in investigating other satellite operators for the digital future. The company is known for doing exactly as it pleases, which clashes with Telenor which is trying to get 1 degree West into shape.”

Kinnevik and Telenor have clashed repeatedly over Kinnevik’s refusal to give up the 5 degrees East position, where it transmits five channels on Sirius. The issue has been exacerbated for Telenor by the fact that the mostly unencrypted Sirius/Tele-X package has achieved a better penetration than the encrypted Thor package.

The two companies have also been at loggerheads over the restructuring of the consortium, forced upon it by the European Commission.

Last July, competition commissioner Karel Van Miert ruled that NSD, which was planned as a vertically-integrated company providing programming, subscriber management and satellite capacity, was anti-competitive.

He ruled that NSD would “create or strengthen a permanent dominant position as a result of which effective competition would be significantly impeded” in the Nordic market for satellite broadcasting. It would dominate the provision of satellite transponders in Scandinavia, cable television in Denmark and direct-to-home pay-television distribution.

Bendix, with the backing of Telenor, has been trying to broaden the shareholder base by bringing in other Scandinavian programmers. But Kinnevik opposes the move because it does not think that it will meet Brussels’ concerns. It also does not want to play second fiddle to other programmers.

The shareholders have looked at other options, including one of splitting NSD into separate companies covering transponder-leasing, subscriber management and programming. The companies could have different ownership. Pele Tornberg, Kinnevik’s deputy managing director, would not say what alternative plan Kinnevik is proposing.

NSD has until next month to present Brussels with a revised shareholding structure.

Helsinki Media, the Finnish broadcaster, has rejected an approach to rejoin NSD, which it left in 1994 in a row over Kinnevik’s influence. President Tabio Kallioja said that the company maintained its view that NSD gave Kinnevik a stranglehold on the allocation of satellite capacity to other programmers. He added that Helsinki Media was interested in the plans for digital satellite television being developed by NetHold and by Telia Media, owned by the Swedish PTT, Telia.

More from New Media Markets and Screen Finance:

New Media Markets and Screen Finance

New Media Markets and Screen Finance were published by the Financial Times in the 1990s.

From Special Report: NMM (New Media Markets) Spotlight On The Emergence Of Satellite Porn Channels In The UK

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2022

Categories
Archive Blogroll

Playboy ‘is not for sad and lonely single men’

By David South

Financial Times New Media Markets (London, UK), October 26, 1995

The Playboy Channel, due to launch in the UK on November 1, is trying to position itself as being a cut above the existing sex channels with which it will compete for subscribers. 

The channel, which is running an advertising campaign costing more than £1.5 million, believes that its big budgets and slick production values will attract viewers who have hitherto been uninterested in so-called “adult” entertainment. It hopes to win an audience among women as well as men. 

Managing director Rita Lewis dismisses the other sex channels as being aimed at people who are “a bit sad and on their own”. The channels promote “deviant” behaviour. 

Playboy hopes to attract happy, heterosexual couples who will treat the channel as an aid to foreplay: “We hope Playboy will lead to couples’ making love,” said Lewis, who believes that women, as well as men “are happy to consume erotic imagery like pin-ups.”

In the USA, according to Lewis, 70 per cent of the audience for the channel comprises couples. 

She said that the UK Playboy will run programmes that have more in common with programmes like Channel Four’s The Good Sex Guide. “These days, a whole bunch of people are sampling erotic programming like The Good Sex Guide. It is very sexy programming with mass-market appeal.”  

Playboy’s movies would have a high standard of production, she said, very different from what she claims to be the cheap programming made for the other channels, often home videos and often shot with hand-held cameras. 

Playboy’s programming will comprise sex films, interviews with “centrefold” models, documentaries on the sex industry and general-entertainment programming such as quiz shows. 

The rival channels claim that Playboy will not be a big threat to them. The Adult Channel’s Wren says that all the new channels “hype the market, which helps us.” In any case, adult entertainment consumers have already been weaned on a harder mix of programming and do not want something that offers little more than what Channel Four shows. 

The UK Playboy Channel, which is owned by UK programmer Flextech (51 per cent), British Sky Broadcasting (30 per cent) and Playboy Enterprises (19 per cent), will transmit from between midnight and 4am on the Bravo transponder on Astra 1c. 

From Special Report: NMM (New Media Markets) Spotlight On The Emergence Of Satellite Porn Channels In The UK

Read more on the 1990s sex economy here: From Special Report: Sexual Dealing: Today’s Sex Toys Are Credit Cards & Cash: A Report On The Sex-For-Money Revolution

Update: It is over 20 years since this Special Report was published. The Internet now plays a significant role in the growth of sex content and the sex industry and vice versa. Here is an interesting overview of the situation in 2020. The Internet is for Porn – It always was, it always will be.

“One of the biggest and most interesting things happening in the consumer web right now is running almost completely under the radar. It has virtually zero Silicon Valley involvement. There are no boastful VCs getting rich. It is utterly absent from tech’s plethora of twitters, fora and media (at least, as they say, “on main”). Indeed, the true extent of its incredible success has gone almost completely unnoticed, even by its many, many, many customers.

I’m talking, of course, about OnlyFans.” 

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

Categories
Archive Blogroll

UK laws on satellite porn among toughest in Europe

By David South

Financial Times New Media Markets (London, UK), October 26, 1995

UK regulations on what can be shown on sex channels are tougher than in most countries of the European Union. Channels such as the hard-core Swedish TV Erotica and the recently-launched French Rendezvous are licensed in their respective countries and transmit explicit scenes of sexual intercourse, straight and gay, featuring close-up shots of copulating genitals. 

Graff Pay-Per-View, the experienced US sex channel operator, consciously decided to exclude the UK as a market for its hard-core Eurotica channel which is licensed in Denmark and, like the other hard-core channels, transmits via a Eutelsat satellite. But pirate smart cards for the channel, as for the other channels, are available in the UK in specialist satellite shops. 

Graff’s seeming respect for the UK regulations may not be unconnected with the fact that it owns the Adult Channel and would be wary of upsetting the ITC. Broadcasting unacceptable material into the UK could provoke the ITC into seeing Graff as a body unfit to hold a licence, thereby threatening the Adult Channel. 

The ITC’s guidelines on sexually explicit material state that representations of sexual intercourse can be shown only after 9pm and that “the portrayal of sexual behaviour, and of nudity, needs to be defensible in context and presented with tact and discretion.”

There has been some relaxation of the rule. The ITC will, on an experimental basis, allow the watershed to be broken by a ppv or video-on-demand service. It is not, however, prepared to give this freedom to a porn channel, at least not in the early days, because it does not want to be seen to be licensing pornography. The relaxation will affect only general services. 

The ITC will also monitor any ppv service to ensure that there are no cases of children accessing the programming before deciding if the programme code should be revised. 

The transmission pf 18-rated films on terrestrial or new-media channels is not permitted before 10pm. Films with a 15-rating are not allowed before 9pm on terrestrial channels such as BSkyB’s Sky Movies or the Movie Channel. These are minimum requirements. Some 15-rated films, for instance those which show scenes of sexual intercourse or drug-taking, would not be deemed suitable for transmission even on an encrypted channel at 8pm. 

In practice, the ITC does not permit depictions of erect penises, anal intercourse, close-ups of genitalia or ejaculation. 

Where channels have overstepped the mark and gone abroad to get licences from less strict authorities – the late Red Hot Dutch and TV Erotica – the ITC has recommended that the channels be proscribed, action which has subsequently been taken by the Department of National Heritage. The ITC is now monitoring the Rendezvous channel, which shows a mix of gay and heterosexual hard-core pornography with graphic scenes of sexual intercourse. 

The DNH issues proscription orders under Sections 177 and 178 of the Broadcasting Act. The orders make it a criminal offence to supply equipment to receive the channels or to market and advertise them. 

The European Union directive on transfrontier broadcasting lays down that one country cannot prevent the reception of channels licensed by other European Union countries. However, it allows individual governments to take action against any broadcast which could damage the physical, mental or moral development of minors. 

From Special Report: NMM (New Media Markets) Spotlight On The Emergence Of Satellite Porn Channels In The UK

Read more on the 1990s sex economy here: From Special Report: Sexual Dealing: Today’s Sex Toys Are Credit Cards & Cash: A Report On The Sex-For-Money Revolution

Update: It is over 20 years since this Special Report was published. The Internet now plays a significant role in the growth of sex content and the sex industry and vice versa. Here is an interesting overview of the situation in 2020. The Internet is for Porn – It always was, it always will be.

“One of the biggest and most interesting things happening in the consumer web right now is running almost completely under the radar. It has virtually zero Silicon Valley involvement. There are no boastful VCs getting rich. It is utterly absent from tech’s plethora of twitters, fora and media (at least, as they say, “on main”). Indeed, the true extent of its incredible success has gone almost completely unnoticed, even by its many, many, many customers.

I’m talking, of course, about OnlyFans.”

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021