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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

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Research Reviews | 2001 – 2002

2001

Research Review 2001: A Year of Excellence and Innovation 

Britain’s best-loved children’s hospital and charity, Great Ormond Street Hospital for Children NHS Trust (GOSH), contracted me to lead a two-year project to modernise the hospital’s web presence and take its brand into the 21st century.

2002

Research Review 2002: Building on Success 

In 2003, the UK’s Guardian newspaper called the Children First website one of the “three most admired websites in the UK public and voluntary sectors,” and a UK government assessment called the overall GOSH child health web portal a role model for the NHS.
“A highly attractive website written by and with children at Britain’s biggest specialist hospital for children. The site is carefully segmented for different age groups and provides a powerful platform on which children can reach out from the confines of their hospital wards, share their experiences and learn about a range of medical issues as well as have access to fun interactive resources.”

This work is licensed under a Creative Commons Attribution 4.0 International License.

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© David South Consulting 2021

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Channel Regulation: Swedes Will Fight Children’s Advertising All The Way

By David South

Financial Times New Media Markets (NMM) (London, UK), November 30, 1995

The Swedish government is set to clamp down on satellite channels which carry advertising aimed at children and will tell channels to drop such advertising or face legal action.

The centre-left government’s threat of tough action follows Sweden’s winning extra powers last week through an amendment to the European directive on transfrontier broadcasting agreed by European culture ministers (NMM 13:42). 

The main focus of the Swedish government’s wrath is the TV3 channel, owned by Kinnevik, which uplinks to the Astra 1a and Sirius satellites from the UK. TV3 based itself in the UK in order to benefit from the Independent Television Commission’s more liberal rules on advertising. 

TV3’s main commercial television rival, TV4, has long protested to the government about what it sees as unfair competition from TV3 and other foreign-based channels. 

The government will initially go after TV3 and the Luxembourg-based cable and satellite channel Femmen. The Ministry of Cultural Affairs said that pro-European satellite channels such as TNT/Cartoon Network and the Children’s Channel were lesser priorities, but could face action in the future. 

TNT/Cartoon Network has a Swedish soundtrack and many Children’s Channel programmes are subtitled in Swedish on cable systems.

The Ministry of Cultural Affairs plans a two-pronged attack to remove the advertising it finds offensive and which is banned under Swedish broadcasting law: advertising aimed at children under 12 and carried in breaks around children’s programming. 

First, the consumer-protection agency the Konsument Ombudsmanen will take action against advertising agencies which produce children’s advertising. Monica Bengtsson, a legal adviser to the Ministry of Culture, said that agencies will be warned once and then fined if they violate the rules a second time. 

If this fails – and some observers believe that it will, because advertisers could move their accounts to non-Swedish agencies – the Ombudsmanen would then try the riskier move of taking channels to court to stop the ads. 

The Ombudsmanen is not expected to act until it hears the results of the case it has already taken to the European Court of Justice against Italian children’s magazine publishers De Agostini for allegedly placing commercials targetting children under the age of 12 on both TV4 and TV3. Judgement is expected in mid-1996. 

The Swedish government is also banking on public opinion to help pressure satellite channels to stop showing children’s advertising. The political climate in Sweden is strongly in favour of strict controls on advertising aimed at children. Swedish prime minister, Ingvar Carlsson, made cracking down on such advertising a key part of his opening speech to the present session of the Swedish parliament. 

The amended directive (which still needs the approval of the European Parliament) allows a member state to ban children’s advertisements under its own rules even if the channel satisfies the rules of the country from which it is broadcast. 

The Swedish government believes that the combination of the amended directive provisions and its ban on children’s advertising is all it needs to prevent the adverts. 

Per Bystedt, vice-president of TV3, insisted this week that the channel is UK-licensed and therefore does not fall under Swedish law: “We are following the Independent Television Commission’s rules.”

New definitions on which countries are responsible for regulating channels, adopted by the European culture ministers last week, could lead to TV3 being regulated in Sweden rather than the more liberal UK if it is deemed that the channel is really established there. However, the Swedish government has investigated the extent to which TV3 is based in the UK and, according to Bystedt, has declared that it is satisfied that the company is British. 

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© David South Consulting 2021

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Do TV porn channels degrade and humiliate?

By David South

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

Susan Sontag, the renowned American essayist, described pornography as a “crutch for the pyschologically deformed and brutalisation of the morally innocent.” The Campaign Against Pornography in the UK believes that pornography exploits women and children “in a degrading and humiliating way, often with the message that we enjoy this and want to be abused.”

The campaign encourages its supporters to take direct action against any distributor of pornographic material as part of its wider campaign to put the industry out of business.

The porn channels dismiss arguments that they degrade women and encourage male violence against women. Playboy managing director Rita Lewis argues that “women are happy to consume erotic imagery like pin-ups. Women are not hung-up by this anymore, they are not threatened by the fantasy women we show in our programming. We hope Playboy will lead to couples’ making love together.”

Andrew Wren, financial director of the Adult Channel, also dismisses the link between pornographic programming and sexual violence. “I don’t think there is anything in programmes that would encourage men to go and rape. Women are interested in sex as men are.”

Television X’s (Deric) Botham says that porn programmes are “a bit of titilation” in the fine, upstanding tradition of the British Carry On films. None the less, he admits that “I wouldn’t want my daughter to get involved in pornography.”

He says that the women involved in the programmes, some of them housewives, are willing participants and enjoy the opportunity. “I don’t produce anything that is against the law. We speak to the individuals concerned. If you have a reluctant model, it doesn’t work – I just won’t buy the video.”

The Campaign Against Pornography sees it all rather differently. Ann Mayne, a member of the campaign’s management committee, was particularly critical of two programmes on Television X – Shag Nasty and Mutley and Fly on the Wall.

She said that Shag Nasty and Mutley, in which a presenter approaches women in the street or in supermarkets and offers them £25 to look at their knickers, or £50 to be filmed having sex with him, gave the message that women were simply objects and that it was acceptable to harass them.

“It is complete prostitution of female sexuality,” she said. “Botham wants full-on, across-the-board prostitution of women. In his view, every woman must have a price.”

Mayne said that Fly on the Wall, in which real-life couples are shown having sex, was an open invitation for men to coerce their partners into being filmed, possibly to the point of abuse.


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