Monster Media 1994 #2/Monster Media No. 2 (Monster Media)(1994).ISO/ham/snews.zip/SNEWS130.TXT

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:---------------------Electronic Headlines----------------------:
:                                                               :
: Issue: 130 :-------:Published Biweekly:------: Date: 05/04/94 :
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:---------(C) Copyright 1991-94 M2 COMMUNICATIONS LTD ----------:
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: SATNEWS is published biweekly by M2       : HOW TO CONTACT US :
: Communications Limited and is Copyright(C):                   :
: 1991-94 M2 Communications Limited. This   :  INTERNET         :
: electronic version is a delayed, limited  :    satnews@cix.   :
: subset of the printed subscription edition:    compulink.co.uk:
: which is available from the publisher.    :  TELEPHONE        :
: This file may be freely distributed as    :   [phone] :
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: Editor/Publisher: Darren Ingram           : Contact Satnews   :
:---------------------------------------------------------------:


WESTERN MEDIA FIRMS SLAMMED FOR CHINA FRATERNISATION
The Governor of Hong Kong, Christopher Patten, has hit out at
Western media barons Rupert Murdoch and Ted Turner for bowing to
China and for threatening free speech for the sake of commercial
expediency. Patten made his outburst in a speech made in Dublin,
Ireland. "It would be the most seedy of betrayals for broadcasters
or journalists, editors or proprietors, to champion freedom of
speech in one country, but to curtail it elsewhere for reasons of
inevitably short-term commercial expediency.  Anyone who enjoys the
privilege of publishing and broadcasting in open societies should
demonstrate their unshakeable belief in the universality of free
speech should they ever seek to broadcast in societies that are
closed. Would they accept the censor's scissors in Europe or North
America? No. They should not accept them elsewhere either," said
Patten, carefully failing to name the two media tycoons who are
active in the region, but leaving commentators without a doubt over
to whom the references were being made.  Murdoch, owner of STAR TV
and worldwide media interests, has the base of STAR in Hong Kong --
soon to become under Chinese control -- and is keen for relations to
be improved; Turner also has interests in the region and is behind
the CNN global news channel.  Turner was taken ill during a meeting-
stop in China last week (see separate story in SN130).

JAPANESE COMPANY PLANS TO OFFER BBC NEWS BY SATELLITE
Nissho Iwai Corp. is planning to offer BBC Television news by
satellite through its Satellite News subsidiary to Japanese
customers, subject to approval granted by the Japanese Ministry of
Posts and Telecommunications.  The service, slated to start on 1
July, is likely to be offered on subscription, with fees around Y800
(GBP1=Y165). Nissho is to work with Fuji Television Network and BBC
World Service Television.  Satellite News plans to expand its
capitalised market value from Y10 million to Y1 billion by June,
with Nissho holding a 30 percent stake, Fuji holding 20 percent and
BBC World Service Television 20 percent. The remainder will be split
between minor companies and investors.

GATES AND MCCAW PLAN US$9 BILLION GLOBAL SATELLITE NETWORK
Bill Gates and Craig McCaw, heads of Microsoft Corp. and McCaw
Cellular Communications respectively, are planning to launch a US$9
billion global satellite communications system by the year 2001.
The two men, billionaires in their own right, will be funding the
project independently from their own companies, putting up a few
million dollars as seed capital. As many as 800 low-earth-orbiting
satellites could be launched to provide global video, data and voice
services. The ambitious venture, known as Teledisc, will be headed
by McCaw as chairman. Gates and McCaw will each hold a 30 percent
stake with the rest held by investors.  An application has been
filed to the Federal Communications Commission to begin constructing
the satellite system.  Industry observers have questioned whether
Teledisc will receive regulatory approval or funding for the
venture, especially with the planned surplus of satellite capacity
because of increased compression techniques and information
superhighways. Regulatory approval would also need to be sought in
every country where service would be provided, or at least, used.  A
range of alliances between companies is being viewed as a way of
reducing direct costs.

MASS CONSOLIDATION OF UK CABLE INTERESTS
Bell Canada International, Jones Intercable, Jones Global Group and
Cable & Wireless are planning to consolidate their UK cable
television and telephony interests into a super company -- known as
BCETI Cable Ltd -- which would be floated on the stock market.
Initially Bell Canada would hold 80 percent of shares and C&W the
remaining 20 percent. As part of the transaction, Jones will
contribute its UK cable interests and Cable & Wireless will
contribute its equity interest in Jones Cable Group of Leeds Holding
plc, in exchange for shares in BCETI Cable. Market sources value the
new venture at GBP500 million upon flotation. Derek Burney, chairman
and chief executive officer of BCI said: "This transaction
underlines BCI's commitment to cable service in the UK. The liberal
regulatory environment permits cable providers to offer both
television and telephony services.  The consolidated strength of
BCI, Jones and Cable & Wireless will serve our U.K. customers and
our investors very well."  The whole deal is subject to regulatory
approval and the execution of internal definitive agreements. Alan
Bates, managing director of Jones Cable in the UK, is expected to
become chief executive of the joint company. Richard Woollam,
director general of the Cable Television Association, said the
planned public offering represented a long-awaited opportunity for
UK investors in the cable television industry. Around three million
homes will be in the coverage area of the super-company, with around
service possibly available to 250,000.  Around 46,000 homes have
already signed up for service.

CANADIAN GOVERNMENT URGED TO ACT OVER ROGERS TAKEOVER
The Canadian government is sitting on the sidelines instead of
acting in the interests of the consumer, says the Friends of
Canadian Broadcasting. In a letter to the Canadian prime minister,
action was urged by the FCB to ensure that Rogers Communications
does not become a media monopoly after it takes control of Maclean
Hunter's interests.  The consumer group has around 40,000 members
and has called for the standing committee on Canadian heritage to
examine the potential effects of the takeover on a national plan to
link communications networks into an electronic superhighway.

BRITISH HOUSEHOLDS SCARED OF HI-TECH DEVICES
According to the Economic and Social Research Council, one family
took to wrapping chicken wire round the television and locking the
stereo lid with a leather strap  in order to stop their children
playing with the new high-tech equipment. The revelation came in
National Science Week, and backs up ESRC's opinion that the
introduction of new technology into homes is confusing and
frightening people. "Our research has shown that households are very
conservative when it comes to technology. There is always a
hard-core that wants the latest gadgets, but most of us have very
basic demands. If the technology is too sophisticated and
impenetrable, we feel even more threatened than usual," said Roger
Silverstone, head of an ESRC research team.

VOX GOES UNDER DESPITE LAST-DITCH ATTEMPTS
VOX, the German private television channel, has entered into
liquidation just over a year after it first came onto German cable
and satellite screens.  Shareholders withdrew support and attempts
to find new investors failed. Bertelsmann, the largest shareholder,
refused to finance the channel any further and declined
opportunities to buy extra shares.  Around 300 staff will be laid
off.  The liquidator will examine any last-minute bids to take over
the channel, or part of its assets, to recoup any losses for
shareholders. Losses have been estimated at DM300 million
(GBP1=DM2.61). Westdeutscher Rundfunk (WDR) director Friedrich
Nowattny spoke on a Cologne local radio station and criticised
Bertelsmann, VOX and the regional government, that VOX had been
unprofessional from beginning to end and that WDR would do
everything it could to regain the frequency it had lost to VOX.
CanWest Global Communications Corp. had also planned to assist the
channel, but according to Leonard Asper, director of corporate
development, there were just too many complications involved to get
involved. Walt Disney Co. also held talks but pulled away for much
the same reasons. Bertelsmann will have to pay around 40 percent of
the losses, said the company.

LEBANON BANS NEWS BROADCASTS
The Lebanese government has imposed a blackout on unofficial news
broadcasts and there are fears that this could become a long-term
arrangement.  The ban was imposed after the government once again
delayed the introduction of a new media law, which has been proposed
since 1992. Presently unauthorised Lebanese radio and television
stations are prohibited to broadcast news, although in the future
they may be invited to 'collaborate' with state-run stations, report
local newspapers. Private radio and television stations have been
banned from broadcasting news and political programmes since 23
March. The government has restricted all news coverage to state-run
Tele-Liban and Radio Lebanon.

NEW MARTIN MARIETTA IS BETTER THAN EXPECTED
One year after Martin Marietta Corp. merged the aerospace activities
of GE Aerospace, business from the new super-company has exceeded
all expectations, said Norman Augustine, chairman and CEO of Martin
Marietta, and the company has not even been affected by fraud probes
at NASA over alleged contract wrong-doings. "At the time of the
merger, we forecasted substantial long-term benefits to our
shareowners, employees and customers.  Primarily due to the
exemplary teamwork of all our employees, I'm strongly convinced we
are realizing those benefits," said Augustine.  Over the year sales
reached an all time high of US$9.44 billion, up 58 percent over 1992
figures, with earnings of US$450.3 million before charges. Total
year-end order backlog was US$16.7 billion, almost double the US$8.9
billion backlog at the end of 1992, and this failed to count sales
of US$11.7 billion associated with management and operations
contracts with the US Department of Energy or US$3.7 billion in
unexercised contract options.  A major restructuring exercise is
credited with helping matters. "By maximizing our collective
strengths, we're more competitive and able to better serve
customers, benefit shareholders, create new business opportunities
and preserve jobs," said Augustine.

MURDOCH REPLACES BBC WITH CHINESE MOVIES
STAR TV has signed a contract to replace BBC World Service
Television with a range of Chinese-language movies. A decision to
remove BBC WSTV from STAR's North Asia beam was taken on 'commercial
decisions' and the BBC will make its last broadcast on 17 April.
After that time a pay-TV Chinese channel will be launched.  Gary
Davey, chief executive of STAR, said: "Last week we announced that
STAR must change, that it must provide locally produced local
language programming. We are proud to announce this significant step
in delivering our Asian audience with the type of premium
entertainment that they want."  STAR is also to invest in more than
50 Chinese movies in the next three years.  Films will be supplied
by Media Asia Films, who are to make a lot of local movies for the
channel.

124 CHANNEL CTV SYSTEM TO BE TRIALED IN USA
Tele-Communications Inc. of Illinois  is to conduct a trial of a
124-channel cable TV market test this month. Interactive service
will be trialed in the 'Intelligent Television' service.  Around
8,000 TCI customers will take part in the trial. "With on-screen
menus that help viewers locate their favourite programmes,
electronic ordering through TV remote control units, and four
exciting new services, Intelligent Television will bring more
choice, control and freedom to television viewers than ever before
possible.," said a statement issued by TCI. The local TCI system
already has 62 channels of television on offer.  Major Hollywood
studios, including Disney, Fox, HBO, MGM, Universal, NewLine Cinema,
Paramount Pictures, Orion Pictures and Showtime Event Television,
have agreed to participate in the Mt. Prospect test.  Mark Hess,
TCI's manager of digital compression, said that "Intelligent
Television helps people use television -- not just watch it. Mt.
Prospect is intended primarily to be a market test to determine what
customers will want when digital compression technology -- the
information superhighway -- is a reality and hundreds of channels
will be available." The trial will last one year.

TURNER ILL, CANCELS INDIAN VISIT
Ted Turner, the ebullient boss of CNN has cancelled a planned
business trip to India because of Illness. It is understood that
Turner was planning to hold talks with bosses at Doordarshan, the
Indian state television company, over regional collaborative
ventures and carriage of CNN on Indian cable television networks.
Turner fell ill during a scheduled stop in Canton, China before he
could get to India.  The Indian government is ever-increasingly keen
to form ventures with western companies. Recently Rupert Murdoch
held talks with the Indian government about expansion of his STAR
Television network and carriage of its programming on Indian
television networks.

BBC'S INVOLVEMENT IN UK GOLD BREAKS EU LAW --CLAIM
The BBC is breaking European Law and its own royal charter with its
commercial involvement with UK Gold and the re-sale of BBC
programming, claims a confidential report produced on behalf of
rivals ITV. The report alleges that BBC Enterprises distorts
international competition through the use of state subsidies with
its trading.  The report's main findings concentrate on the market
for secondary programme sales.  BBC Enterprises has been very
successful selling archive programming to stations such as UK Gold -
- which it has a shareholding -- and on video and audio cassette. As
the programmes were originally financed by state funds for
broadcast, the report contends that some form of equity repayment
should be made.  The BBC is expected to address much of the findings
in the unpublished report through its own market reappraisal in the
coming weeks.


FROG HARMING CHILDREN'S CHANNEL AD RAPPED
The Advertising Standards Authority has upheld a complaint about an
advertisement in the Cable Guide for The Children's Channel, which
took the form of a ransom note, saying: "Mum, if I can't watch
Superquest on The Children's Channel, Kevin gets the Frog."  The
text was accompanied by a picture of a wide-eyed boy with a large
frog stuffed into his mouth. The complaints said that the advert was
frightening to children and offensive.  In its adjudication, the ASA
said that while the advertisers and publishers considered that
children were likely to find the presentation humorous rather than
frightening and that the magazine was unlikely to be read by under
eight year olds and that they had received no direct written
complaints, the ASA considered that the picture could cause distress
to adults and children, especially at a time of heightened public
sensitivity to child abuse. The campaign had ended before the ruling
was made.

TIGHTER TV SPONSORSHIP URGED BY UK ADVERTISERS
According to the advertising trade newspaper Campaign, advertisers
are calling for stringent rules to prevent the sponsorship of ITV
(terrestrial television) programmes being hi-jacked by rivals in
advertising breaks.  The article cites a number of sponsored
programmes being hi-jacked by cheeky rivals half-way through during
conventional ad breaks.  Andrew Kitching, group promotions director
of News International, one of the key offenders and victims at the
same time, is quoted as saying: "It would be sensible for TV
companies not to sell centre breaks to rival products. Sponsors pay
good money to back a programme and it is no good for a main
competitor to be allowed in the middle of it. The stations should
tighten up the controls."

ROGERS GETS MACLEAN, BUT PROBLEMS STILL NOT SETTLED
Even though Rogers Communications Inc. has got a majority stake in
Maclean Hunter Ltd. the battle for overall control is far from over.
The deadline for acceptance of its offer has once-again been
extended to 15 April, and some regulatory approval is not even
slated until early 1995. Rogers now has a 93 percent shareholding in
MH, and it has only chosen to extend the offer deadline so that
shareholders who did not vote either way. Shares purchased have to
be paid by 7 April.  Ted Rogers, president and CEO of Rogers
Communications, said that getting shareholder approval about the
takeover was important as it would help smooth along regulatory
approval from the US Federal Communications Commission, various
municipal authorities,  Canada's competition tribunal and the
Canadian Radio-Television and Telecommunications Commission.  The
CRTC has already said that it plans to hold a series of public
hearings on the merger as it will give Rogers even greater dominance
in the Canadian cable market.  Rogers has already signed a cable and
radio asset swap deal with western Canada-based Shaw Communications
Inc and plans to look at other areas as part of its bid to create
clusters of cable responsibility.

GREAT DEMAND FORECAST FOR TURKISH CABLE
The Turkish Postal and Telecommunications agency estimates that
demand for cable television services is set to greatly rise in the
future as networks become established. A major expansion programme
has been initiated and over 150,000 homes in ten provinces have been
connected, bringing the total number of connections to just under a
million.  Six major consortiums plan to offer service up to three
million homes.  Customers pay a Lira1.58 million  connection fee
(GBP1=Lira22,530) followed by a basic Lira40,000 fee.  Over US$100
million has, according to the government, been invested on building
networks since 1991. Up to 40 Turkish and foreign-language channels
are presently on offer.

NEW MALAYSIAN TELECOM GROUP LOOKS TO SATELLITE
The son of Hong Kong tycoon Li Ka-shing, Richard LI, has formed a
US$400 million telecommunications company and is reported to be
exploring investment opportunities in Malaysia, including a stake in
the new satellite which Kuala Lumpur is planning to launch from
Kourou in French Guyana  called the Malaysian East Asian Satellite.
Li is understood to have set up the Pacific Century Group with
profits made from the US$525 million sale of a controlling stake in
the Star TV station to Rupert Murdoch last year. Under an agreement
with Murdoch, Li is barred from getting back into satellite TV
broadcasting but is free to pursue other  satellite
telecommunications projects. Pacific Telecom Group has recruited
Frances Wong, former chief executive of Hutchvision.

DOWNMARKET SCOTLAND TOPS MEDIA ACCESS
Scottish people have an insatiable appetite for all things media,
reports Marketing magazine, and figures show that Scottish people
watch more television, read more newspapers and constantly tune into
the radio. Commentators wonder whether it is because the Scottish
are a very nationalistic race, and as such local media tends to play
onto this fact, even though in terms of socio-economic profiling
Scotland is considered rather downmarket when compared to the rest
of the UK.  Scottish media titles tends to outsell and outperform
its English counterparts, causing major headaches for the London
controllers.

BSKYB PHONES THE BAR TO CATCH PUB-CASTERS
British Sky Broadcasting (BSkyB) has taken to phoning around public
houses and hotels to see whether subscribers are showing
subscription-only sports and movie programmes to a public audience.
BSkyB charges a premium for its public viewing licences.  As far as
the publican is concerned they are just answering a question from a
member of the public -- but once they admit that a screening is
planned the caller reveals who they are from and suddenly the
monthly subscription fee is raised to GBP40. BSkyB defended its
move, saying that it is just one way of checking the use of its
programming, and says that it is its equivalent of the detector vans
used by the BBC to capture licence dodgers.

AMSTRAD OFFERS FUTURE-PROOF SATELLITE SERVICES, UPGRADE PLANS
Amstrad has announced a range of future-proof satellite receivers
and generous upgrade plans for existing satellite users.  The
company has also claimed a first with its range of 'Enhanced
Wideband' receivers. They are said to be the only receivers capable
of receiving signals from the new Astra 1D satellite using
customers' existing dishes with Standard LNBs - without modifying
the equipment already installed for receiving the existing Astra
satellites. Customers can also take advantage of a GBP49.95 system
upgrade to have the latest facilities and services. "As the Astra
satellite 1D launch approaches, manufacturers of satellite products
are gearing up to provide the ability to receive all channels from
all four satellites in the Astra family. To do this, other
manufacturers' products have extended the IF bandwidth from 950 to
2050 MHz. These are becoming the norm. However, these Enhanced 2GHz
products must be coupled with a new Enhanced LNB capable of
receiving Astra 1D frequencies, and this will involve calling in an
installation engineer to make the necessary LNB swap on the dish.
Only Amstrad is able to provide 'future ready' products with the new
Enhanced Wideband technology which will be compatible with all four
Astra satellites, without the need to replace the Standard
LNB/dish," said Alan Sugar, chairman of Amstrad. Amstrad will either
upgrade existing satellite receivers to a new model for GBP149.99 or
modify existing equipment for GBP49.99 on-site.

CNN CORRESPONDENT SUES FOR SEXUAL ABUSE CLAIMS
Patti Paniccia, a former CNN news correspondent, claims that she was
fired for having children and has filed a law suit against the
company claiming discrimination and breach of contract. Unspecified
actual and punitive damages are being sought against the company and
senior personnel. Until being fired in May 1993, Paniccia was a
weekend correspondent in CNN's Los Angeles bureau. Paniccia claims
that the LA office constantly discriminated against women and
treated them as second-class employees.  After returning to work
after maternity leave Paniccia claimed that she receive constant
harassment in verbal and written forms. CNN said that the lawsuit
was without merit.

24-HOUR CABLE FASHION TV STATION TO OFFER COVERAGE
Fashion and Design Television -- FAD TV -- is a newly-launched
channel providing a 24-hour news and entertainment service focusing
solely on the entertainment industry. Next week it will be
continually broadcasting from the New York 7th on 6th fashion show,
acting as a trial for the major launch. FAD TV is scheduled to
launch in the US during the fourth quarter of 1994 in an initial 2-3
million cable homes, in addition to simultaneously launching
syndicated blocks of programming in several European countries.
Programming is to be hosted by F-Jays -- Fashion Jockeys -- and D-
Jays -- Design Jockeys.

FCC LETS OFF SMALL CABLE OPERATORS FROM RATE CHANGE
The Federal Communications Commission has decided to let off cable
television network operators who have less than 15,000 customers and
who are not affiliated with larger organisations from a 17 percent
cumulative rate cut.  All cable television networks will have to
slash charges on 15 May once new FCC regulations come into effect.
Until the FCC is able to review the smaller cable networks, they
have been given special dispensation to cap rates which were
applicable at 31 March.  Operators which also offer 'budget plan'
viewing are also be examined and until that takes place they are
able to hold-fire on price cuts. The FCC has not given any
indication as to when the hearing could be expected. Comcast
Cablevision of Tallahassee Inc. has filed a request with the FCC
asking for expedited consideration in order to prevent the City of
Tallahassee from implementing its rate order -- an order requiring
Comcast to reduce some of its rates and provide refunds to the
City's cable subscribers by 15 April.

EC URGES ACTION TO HELP PROGRAMMERS
A confidential report produced for the European Union says that the
EU should develop an ambitious industrial policy to help its
loss-making film and television programme industries restructure
themselves.  Tighter controls over the quota of EU-sourced
programmes is also urged through the Green Paper on Audiovisual
Policy, set to be laid for approval in the near future.

LBC GOES INTO RECEIVERSHIP, TRANSMISSIONS CONTINUE
The UK's oldest commercial radio station -- LBC -- has been placed
into receivership. This is the second time in 18 months that
financial problems have forced such a move for the 21-year-old
channel, set to lose its broadcasting licences for London in
October. LBC is to be replaced by London News Radio (LNR) in the
future and it will use the same frequencies. LNR is likely to buy
some of the LBC businesses so that it can stay on air until October,
keeping listeners on its frequencies. Receivers from Arthur Andersen
were called in by the Royal Bank of Scotland.  Each week nearly 1.8
million listeners tune into the channel, and listening figures are
increasing.

CANADA PLANS DIGITAL DBS BROADCAST SYSTEM
Tee-Comm Electronics Inc. and Telesat Canada are planning to launch
a direct broadcast satellite service using Tee-Comm's digital video
compression equipment and Telesat's ANIK E1 satellite. Ted Boyle,
vice-president of corporate development at Tee-Comm Electronics Inc.
said that the new service would be crucial to the successful future
of both DTH and small- and medium-sized cable systems in Canada.
"With the Telesat/Tee-Comm plan, the cable industry is put on the
right side of technology and CRTC policy. Canadian DTH will be a
lesser threat to cable, and it will satisfy a clamouring crowd of
under-served Canadians who would deeply resent a cable technology
that excludes them," said Boyle. MPEG-2 digital video compression
would be central to the system, enabling cheaper satellite
distribution and greater viewer choice.  Boyle's speech comes at a
time when the CRTC is requesting comments from the public on its
published proposed exemption criteria for Canadian DTH providers,
thus allowing Canadian companies to compete with the giant US "Death
Stars." Tee-Comm Electronics is Canada's largest manufacturer of
home satellite systems and its TCI Home Entertainment division
currently offers Direct To Home (DTH) programming packages to more
than 34,000 subscribers across Canada.

CNN CITES INNOCENT PLEA IN COURT CONTEMPT ACTION
Cable News Network says that it is innocent in charges that claim it
has disobeyed a judge's order not to broadcast tape recordings of
Manuel Noriega's telephone conversations in jail. A court hearing
has been set for 11 July by a special prosecutor for the case. CNN
acquired the tape recording of the former dictator talking to
lawyers, relatives, colleagues and associates. It stopped broadcasts
after airing excerpts for two days while vigorously fighting a First
Amendment court case over attempts to restrict its coverage.  CNN
has claimed all along that it had First Amendment rights to
broadcast the tape and a statement issued last week said that it
welcomed the chance for the court to vindicate its actions.

BBC, BSKYB SIGN EXCLUSIVE RUGBY DEALS
The BBC and British Sky Broadcasting (BSkyB) have signed a deal
which will see the channels exclusively broadcast rugby union
matches over a three-year period. Under the GBP34 million deal,
split between the two companies, the channels will be the exclusive
and official  broadcasters of the Five Nations Championship --
involving England, Ireland, Scotland, Wales and France.

Darren Ingram
Telecomworldwire, M2 Communications Limited
Reptile House, 2nd Fl, 20 Heathfield Rd, Coventry CV5 8BT, UK
Tel: [phone], Fax: [phone], Mobile: [phone]