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Thread: Daily Satellite TV News

Arthur D. Little urges media companies to consolidate Arthur D. Little urges media companies to consolidate and integrate content creation,

  1. #6171
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    Arthur D. Little urges media companies to consolidate

    Arthur D. Little urges media companies to consolidate and integrate content creation, as its new global report identifies squeeze on traditional value chain and increased competition online.

    The findings of its five-year forecast of the financial flows within the global media marketplace. It predicts that markets will continue to see a rush of consolidation and vertical integration among traditional media companies as offline advertising revenues and consumer spending stagnate while online advertising and consumer spend rises. The key to future profitability is to participate in this consolidation and aggressively diversify into near-core segments.

    In Consolidate, Diversify, or Perish, ADL’s Technology, Information, Media, and Electronics (TIME) Practice examines how markets around the world have responded to the digital transformation of the media industry. US companies have historically enjoyed higher profitability and revenue growth than their European peers due to greater investment in video – however, in order to offset the decline in traditional news & print, many European companies have diversified aggressively into online segments, and for some, online revenue now accounts for 50% of their total revenue. In the mid-term, ADL predicts stronger revenue growth for most European players compared with US companies.

    A major trend driving the media industry’s digitalization is the rise of the ‘hyper-connected’ consumer, who prefer to access content as a service via multiple screens rather than own it. These consumers are often also producers, editors and aggregators of content via platforms such as YouTube and Instagram. This increased engagement with online media has enabled companies to analyze consumer behavior and produce more targeted, and more profitable, content and advertising. ADL predicts that such personalized targeting will also begin to enter the offline advertising value chain.

    However, the report also identifies challenges for companies seeking to diversify online. Major positions have already been taken in video and music streaming by new players such as Netflix and Spotify. Content owners and producers are also in a strong position – with premium content becoming more expensive as competition increases, they become attractive acquisition targets.

    Clemens Schwaiger, Global Head of Media in Arthur D. Little’s TIME Practice, said: “As the digital market expands, traditional companies have an opportunity to redefine themselves as content creator, aggregator and distributor. However, those companies that fail to consolidate quickly enough face long-term competitive disadvantages.”

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    Education initiative would half illegal viewing

    Despite the high number of consumers around the globe watching pirated video content (52%), nearly half (48%) would stop or watch less illegal content after learning the damage that piracy causes the media industry.

    This willingness by nearly half of consumers to change their viewing habits speaks to the huge impact that education could have on reducing the number of people who pirate video content.
    This is the outcome of the Irdeto Global Consumer Piracy Survey of more than 25,000 adults across 30 countries.

    The positive outcome of an industry-wide education initiative could have the most impact in Latin America and APAC. 59% of consumers who watch pirated content in Latin America and 55% in APAC stated they would watch less or stop watching pirated video content after learning that piracy results in revenue loss from studios, affecting investments in future content creation.

    Conversely, only 45% in Europe and 38% of respondents from the US said that they would watch less or stop watching pirated content. This indicates that simply educating consumers in these regions about damages associated with revenue loss may not be enough. However, an education initiative focusing on piracy’s impact on the creative process of producing content, coupled with knowledge on how piracy is often linked to criminal organizations and that pirated content could include malware aimed at stealing consumer’s personal information, may resonate better in those markets.

    “A battle is being waged in the media & entertainment industry,” said Doug Lowther, CEO, Irdeto.

    “Legal content offerings are no longer only competing against each other. Pirates have undoubtedly grown into a formidable foe that should not be ignored. With more than half of consumers openly admitting to watching pirated content, it is crucial that the industry tackle piracy head-on. To do so will require technology and services to protect the legal content as well as a comprehensive education program to help change the behavior of consumers. Coupled with a 360-degree anti-piracy strategy, the market is fully prepared to take the battle against piracy to the next level.”

    “Education around the negative impact of piracy on both the industry and the consumers themselves is an important element of any anti-piracy strategy,” said Rory O’Connor, VP of services, Irdeto. “The results of this survey show that many countries are open to change. To elicit this change in consumer habits will take a concerted effort from all the industry players to not only educate consumers about the negative impact of piracy, but also continued innovation to address the three elements of consumer choice – content, value and convenience.”

    Irdeto has just published an e-book on piracy, called My Content is Being Pirated, which can be downloaded for free from our website.

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    Bert Habets to become new co-CEO of RTL Group

    Anke Schäferkordt has decided to focus on leading Mediengruppe RTL Deutschland. She will be replaced by Bert Habets as the new Co-CEO of RTL Group alongside Guillaume de Posch.

    Anke Schäferkordt, currently Co-CEO of RTL Group, will leave the Group’s Board of Directors and Executive Committee at her own request. She will continue to be the CEO of the Group’s largest business unit, Mediengruppe RTL Deutschland, which she has led since September 2005.

    Bert Habets, currently CEO of RTL Nederland, will become the new Co-CEO of RTL Group and will join the Group’s Executive Committee, alongside Co-CEO Guillaume de Posch and CFO Elmar Heggen. Bert Habets is also expected to join the RTL Group Board of Directors as Executive Director on 19 April 2017, and will remain CEO of RTL Nederland for the time being. RTL Group expects to announce a new CEO of RTL Nederland before the end of 2017.

    “On behalf of the wholeBoard, I would like to thank Anke Schäferkordt for her outstanding entrepreneurial
    performance at the head of RTL Group. Together with her colleagues on the Executive Committee, she has succeeded in making RTL Group more digital, more international and faster growing. At the same time, she and her management team in Germany have continued the success story of Mediengruppe RTL Deutschland. While I regret her decision, I fully respect her reasons and I’m very happy that she will continue to lead and advance our largest business unit – and that she will continue to contribute her unique experience
    and expertise to the digital transformation of our Group,” said Thomas Rabe, Chairman of the RTL Group Board of Directors.

    “To a large extent, RTL Group’s Iong-lasting success is based on the quality, continuity and experience of its management team. I am delighted that we have found, in Bert Habets, a strong leader and digitally savvy media entrepreneur from within the Group as new Co-CEO of RTL Group. Since Bert Habets joined our Group in 1999, he has proven his outstanding leadership and creative skills. He transformed RTL Nederland
    from a traditional broadcaster into a media company which entertains its audience across all digital platforms. Bert Habets embodies RTL Group’s total video strategy. I look forward to working with him, and wish him every success in his new position.”

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    Guatemala gets back on track with DTT

    After years without progressing its DTT plan, Guatemala is ready to get back on track towards a switch-off that will happen in 2022 at the earliest.

    The country’s telecom authority, Superintendencia de Telecomunicaciones (SIT), has drafted a document with regulatory guidelines for DTT implementation, which now has to be sanctioned by the Government.

    The document aims to harmonise the new frequencies and spectrum bands which are already being used, in particular those for new mobile technologies, which will be awarded this year.

    The move is the first step forward since Guatemala established an initial roadmap in 2012, deciding it would use the ISDB-T broadcasting standard, as most of Latin America has done. But the country is still at the very beginning of its DTT switchover.

    “We are talking five years at best,” said José Raúl Solares Chíu, head of SIT, referring to how soon Guatemala will be able to switch off analogue TV. According to Solares, speaking during the Seminario de Seguimiento para la Implementación de la Televisión Digital Terrestre en Guatemala, the process won’t be complete before 2022, and that is if there are no delays.

    No Central American country has completed the digital TV switchover so far, but most territories are ahead of Guatemala in terms of implementation. In fact, Costa Rica plans to complete its switch off by December 2017, becoming the second LATAM country to do so.

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    AMC Networks expands Ultra HD footprint in Spain

    AMC Networks International Iberia will start broadcasting Canal Cocina and Canal Decasa in 4K resolution from June 2017 in Spain.

    Both pay-TV networks will be joining documentary channel Odisea 4K, the first signal owned by AMC Network International Iberia to be available in 4K UHD resolution.

    Committed to creating original content, Canal Cocina, the only television channel in Spain which specialises in gastronomy, and Canal Decasa will premiere their first programmes filmed in Ultra HD throughout 2017. Some of the best international gastronomic and lifestyle shows being produced in 4K UHD quality will also be added to both channels’ schedules at the same time.

    “Gastronomical and lifestyle content takes on a new perspective with 4K UHD. The user experience will be fantastic for fans,” said Eduardo Zulueta, president of AMC Networks International Iberia and Latin America.

    On top of this, AMC Networks International Iberia will start producing branded content in 4K UHD, making it the first television network to enable advertisers to generate content with this technology.

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    Brazilian Carnival boosts Globo’s digital audience

    Over 3.3 million unique viewers followed the Brazilian Carnival in Rio through Globo’s streaming and online video platforms.

    According to figures released by Convergecom’s TelaViva, Globo’s G1 and Globo Play registered 6.8 million videos watched during the Carnival, averaging over two videos played by each unique user.

    In addition, the Globo Play app doubled its average downloads during the main week of the Carnival, which was also the first edition to be broadcast through the new HD DTT signals.

    As to screens, most viewers chose computers to stream the live content, being selected as main device by 55% of users, with smartphones (39%) the second most used screen.

    As for video-on-demand (VOD) content, smartphones were the preferred devices for almost seven in ten viewers.

    Through both G1 and Globo Play, the Brazilian media giant delivered live broadcasts of the parades in Rio de Janeiro, Sao Paulo, Salvador and Recife, which were available nationwide for free.

    The Brazilian broadcaster has lately been focusing on over-the-top (OTT) content distribution, both by launching new platforms and by adding latest video technologies, such as 4K.

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    Revenue growth remains solid across all cable services

    There is a lot of life yet in the European cable industry, with IHS statistics released by the industry’s trade association, Cable Europe, showing total revenues up 4.6% year-on-year.

    The figures show that revenue growth remains solid across all cable services, with broadband Internet the star performer, rising 7.5% annually, followed by TV (3.7%) and then telephony (2.1%). More than 2.7 million revenue-generating units (RGUs) - the industry metric for the total sum of TV, Internet and telephony subscriptions - were added in 2016, and the total across Europe is now 118.24 million.

    Even though broadband represents an increasing share of revenue at 32.8%, and the number of broadband subscribers rose 5.9%, the TV sector continues to be the largest source of profit for the industry, accounting for 46.5% of the €23.45 billion of revenue. Cable Europe said that digital transition continues to be an important driver for TV services, with revenue growth for TV driven by a strong appetite for digital subscriptions and video-on-demand (VOD). Digital TV subscribers rose 6.3%, accounting for 66.3% of all TV subscriptions and generating four-fifths of TV revenue.

    The effect of many of the continent’s leading cablcos bundling Netflix within their EPG also began to show, with overall digital VOD revenue increasing by 14.1% year-on-year.

    Commenting on the results, Cable Europe executive chairman Matthias Kurth said: “Continued investment in infrastructure and content shows cable is providing consumers with the content they want in a digital age. As cable continues to convert analogue homes to digital, giving consumers more choice and content will result in them taking up more services. This trend should continue with the digital revolution across cable.”

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    HBO ramps up Brazilian production


    HBO Latin America has unveiled 14 original Brazilian productions to add to the network’s line-up in the country.


    hbo brasil contenidoThe content slot consists of seven non-fiction series, two documentaries, four fiction series, and HBO’s first Brazilian late-night talk show. This is the largest number of Latin American productions for a single year in the history of HBO.

    “HBO already produces more original local content than any other premium subscription entertainment service in the region and we have never had a portfolio of exclusive productions with the volume and breadth of what we are presenting today,” said Roberto Rios, corporate VP, original productions, HBO Latin America.

    Among the new productions, Projecto Gregorio Duvivier will become HBO’s first late-night show in Brazil, a weekly, 30-minute programme featuring comedian and actor Gregorio Duvivier.

    HBO’s production line-up also comprises four dramas: Santos-Dumont, a mini-series based on the life and times of the Brazilian aviation pioneer; season three of the Emmy-nominated psychological drama Psi; season two of O Hipnotizador; and A Vida Secreta dos Casais.

    The seven original non-fiction series set to premiere on HBO Brazil are A Grande Luta’s second season; the docu-series Fora do Armário; Milton – Pelo Mundo, about the artist Milton Nascimento; the biographical series O Nome dela é Gal; Outros Tempos – Velhos, Trabalho Escravo, and Transamazônica – Uma Estrada para o Passado.

    HBO’s production line-up also includes two feature-length documentaries set to air exclusively on HBO/MAX channels: Fernando Meirelles’ Opera Aberta – Os Pescadores de Pérolas and Primeiro Bailarino.
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    Hulu live service won’t have Viacom, but A+E is in


    Inching closer to launching its anticipated live TV service, Hulu has announced more programming details.


    most watched cable netsThe over-the-top (OTT) pioneer said that it will offer content from the A&E Network channel, but won't include networks from Viacom. That leaves out some struggling but still key properties like MTV, Comedy Central and Nickelodeon.

    Hulu, which is co-owned by Comcast, Disney, Fox and Time Warner, couldn't come to terms with Viacom, according to Bloomberg. But it is not alone in not having a deal with Viacom. As part of moves to shore up relations with traditional pay-TV distributors, Viacom has removed its programmes from Amazon Prime, as well as Hulu’s on-demand streaming service, and has never been present on PlayStation Vue or YouTube TV. It does have streaming distribution deals with both DirecTV Now and Sling TV, skinny TV competitors to Hulu’s upcoming service, which are owned by traditional pay-TV giants AT&T and DISH Network, respectively.

    Viacom is “engaged in ongoing conversations with a spectrum of new, emerging digital distributors as we execute against our recently announced strategy,” the company said in a statement.

    As for Hulu’s new A&E content, it will carry not only the flagship network, but also History, Lifetime and Viceland, and others.

    “Having our top six networks available on their core package speaks to the power of our entertainment portfolio in reaching men, women, adults and millennials,” A+E CEO Nancy Dubuc said.

    Hulu’s service will have more than 40 live channels for less than $40 a month, to launch within the next couple of months. It will have a slew of competition, mentioned above: DirecTV Now, Sling TV, PlayStation Vue and YouTube’s upcoming service.

    On the broadcast front, Hulu has secured ABC, CBS and Fox, but is still negotiating with Comcast over NBC. Also, three other major media companies - AMC Networks, Scripps Networks Interactive and Discovery Communications – are still in talks with Hulu for carriage.
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    4K-UHD Summit moves to Málaga


    The third edition of the 4K-UHD Summit - Spain's flagship 4K industry event - is to be held this year in Malaga instead of Seville.


    4k summit 2016The move is the result of an agreement between Medina Media and ProMálaga to have the capital of the Costa del Sol as host of the summit, which will be held in November.

    This follows the commitment by ProMálaga to turn the city into a leading technological hub.

    The 4K-UHD Summit will also extend its duration to three days (8, 9 and 10 November) and offer more conferences and roundtables, as well as more networking opportunities and practical workshops.
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