The Broadcasting Strategy

BUSINESS PLANNING: DISTRIBUTION A SUCCESSFUL PLATFORM FOR AN ISLAMIC TELEVSION CHANNEL
The Broadcasting Strategy
ISLAMIC TELEVISION PROJECT
COPYRIGHT 2003
THE INFRASTRUCTURE .....................................................................................................................1 UK CARRIAGE DEALS........................................................................................................................3 EUROPEAN SATELLITES.....................................................................................................................3 EUROPEAN PLATFORMS.....................................................................................................................4 CARRIAGE CRITERIA...................................................................................................................5 THE PROCESS.....................................................................................................................................5 KEY PLAYERS IN BROADCAST SERVICES.............................................................................6 PLAYOUT........................................................................................................................................8 ADVERTISING INSERTS..............................................................................................................9 FOREIGN FEEDS............................................................................................................................9 SKY CONDITIONAL ACCESS.............................................................................................................10 IN CONCLUSION...............................................................................................................................1
The Infrastructure
istri!"tion is #"nda$enta%& The content can !e !ri%%iant' !"t (itho"t distri!"tion it cannot generate re)en"es& The #orces o# s"**%y and de$and ha)e $o)ed in #a)o"r
Is%a$ic Te%e)ision Pro+ect

Registration N"$!er /0.12-/
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o# the distri!"tors (ith greater co$*etition a$ongst channe%s #or carriage and conso%idation a$ongst the *%at#or$s& The econo$ics o# ca!%e and sate%%ite channe%s has not there#ore rea%%y i$*ro)ed as a res"%t o# the digita% age& istri!"tion costs are signi#icant%y %o(er than they (ere in ana%og"e and the costs genera%%y o# *rod"cing a channe% are $"ch %o(er& B"t this red"ction in the cost o# entry has %ed to a $ore co$*etiti)e $ar3et& In the U4' BS3yB achie)ed #ast gro(th in digita% s"!scri!er n"$!ers !y gi)ing a(ay set5to* !o6es' a strategy that e##ecti)e%y (i*ed o"t its *ro#its& At the sa$e ti$e ca!%e in Britain has !een !"rdened !y h"ge de!ts and !oth NTL and Te%e(est ha)e !een #orced to restr"ct"re& They ha)e !een "nder se)ere *ress"re to c"t their costs as they ha)e *i%ed "* de!ts in the *rocess o# !"i%ding their net(or3s and conso%idating their !"sinesses& There are no( on%y t(o ca!%e o*erators %e#t in Britain a#ter se)era% years o# conso%idation' NTL and Te%e(est' !"t the cost has !een de!ts o# 708 !i%%ion and 78 !i%%ion res*ecti)e%y& The third *%at#or$' ITV igita%' (ent !an3r"*t !eca"se it o)er*aid #or secondary %eag"e #oot!a%% rights that #ai%ed to !oost s"!scri!er gro(th& It has !eco$e a !"yers $ar3et and this has ca"sed the carriage #ees o##ered !y the distri!"tors to dro* to(ards 9ero' #"nda$enta%%y changing the econo$ics #or the channe% s"**%iers& So$e ne( entrants $ay e)en #ace ha)ing to *ay #or carriage& The gro(th in the n"$!er o# *ay5TV s"!scri!ers has not !een eno"gh to co$*ensate #or the dro* in carriage #ees& Any ser)ice that can g"arantee distri!"tors a !oost in s"!scri!ers (o"%d sti%% !e in a strong *osition' !"t it is no( )ery di##ic"%t to co$e "* (ith an entire%y ne( and essentia% ser)ice& The )icio"s circ%e #or the content *ro)iders is %i3e%y to contin"e "nti% there is conso%idation a$ongst the channe%s and *o(er shi#ts !ac3 in their direction& :ood content a%%ied to strong distri!"tion is 3ing' not content on its o(n& ;itho"t distri!"tion' te%e)ision channe%s are not on%y de*ri)ed o# *otentia% s"!scri*tion re)en"es' they cannot !"i%d "* a share o# the a"dience to se%% to ad)ertisers& ;hen BS3yB %a"nched its digita% *ac3age in 0221 it (as 3een to get as $any ne( channe%s and strong !rands as *ossi!%e to *ers"ade its ana%og"e s"!scri!ers to s(itch and to attract ne( c"sto$ers& They (ere there#ore *re*ared to *ay high carriage #ees& B"t once the digita% *%at#or$ had esta!%ished itse%# and the s"**%y o# channe%s increased' the tide re)ersed and #ees dro**ed s"!stantia%%y& This change o# c%i$ate has $ade it )ery di##ic"%t #or the channe% s"**%iers' *artic"%ar%y the s$a%% inde*endent s"**%iers that %ac3 econo$ies o# sca%e& Ne( inde*endent channe%s cannot o!tain $"ch re)en"e' i# any' #ro$ s"!scri*tion and there is a need #or a%% channe%s to red"ce !ac3 o##ice costs& At the sa$e ti$e they $"st in)est $ore in content' *"tting $oney on screen' and in $ar3eting in order to !oost ratings& Any channe% that can esta!%ish itse%# and *ro)e itse%# *o*"%ar (ith )ie(ers (i%% !e in a $"ch stronger *osition (hen the ti$e co$es to rene( carriage contracts& According to U4 o!ser)ers there are carriage #ees a)ai%a!%e at BS3yB #or the right channe%s as the sate%%ite o*erator sti%% has $oney to *ay #or content' a%tho"gh i# it

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does *ay a ne( entrant there is %ess in the *ot #or other channe%s& As s"!scri!er n"$!ers gro(' higher re)en"es are generated not +"st #ro$ carriage #ees !"t #ro$ ad)ertising& Content sti%% )ery i$*ortant& The *%at#or$s need good content to 3ee* their c"sto$ers ha**y to red"ce ch"rn' and to attract ne( s"!scri!ers& The distri!"tors (o"%d !egin to (orry i# %arge n"$!ers o# channe%s started #ai%ing and they 3no( that it is in their interest to *ay eno"gh to a%%o( the$ to *rod"ce the <"a%ity and 3inds o# *rogra$$ing that their s"!scri!ers (ant& They cannot there#ore a##ord to !e too aggressi)e in dri)ing do(n #ees as then they (i%% de*ri)e the$se%)es o# the content they need to satis#y their c"sto$ers& The e6*%osion o# digita% channe%s has %ed to a co$$oditisation o# so$e genres in *artic"%ar' (ith $"sic and ne(s !eing *erha*s the !est e6a$*%es& MTV is #acing strong co$*etition in the U4 #ro$ E$a*=s $"sic channe%s (hich ha)e !een a!%e to ta3e ad)antage o# the %o(er entry !arriers as (e%% as #ree content *ro)ided !y the record *rod"cers to %a"nch channe%s on the !ac3 o# their *"!%ishing !rands&
UK carriage deals
Recent U4 carriage dea%s i%%"strate that e)en the !igger *%ayers a$ong the channe% s"**%iers ha)e #o"nd the going to"gh& At the end o# ,--0' MTV (as #orced to acce*t %o(er #ees a#ter a to"gh negotiation (ith Te%e(est& The rene(ed carriage contract inc%"ded a c"t in #ees !"t added MTV ance to the Te%e(est %ine5"*& F%e6tech (as #orced to acce*t a c"t in its rate *er s"!scri!er #ro$ BS3yB o# at %east 0-> in ,--,' according to Press re*orts& This (as *art o# a ne( #i)e5year carriage dea% #or a%% its 0. (ho%%y5o(ned and +oint )ent"re U4TV channe%s& Pre)io"s #ees ranged #ro$ aro"nd 08 *ence *er s"!scri!er *er $onth #or U4 :o%d to aro"nd eight *ence #or Bra)o and Tro"!%e' according to the re*orts& These #ees (ere a%ready signi#icant%y %o(er than those o!tained on S3y=s ana%og"e *%at#or$& F%e6tech noted that any %oss o# re)en"es *er s"!scri!er (o"%d !e o##set !y an increase in the n"$!er o# s"!scri!ers& S"!scri*tion re)en"es sho"%d not !e serio"s%y "nder$ined o)er the %onger ter$ as %ong as the *ay5TV $ar3et contin"es to gro(& A #i)e5year dea% (as regarded as i$*ortant !y the co$*any as it *ro)ided sec"re %ong5 ter$ s"!scri*tion inco$e and a%%o(ed it to *%an ahead& At the end o# ,--0' isco)ery reached agree$ent (ith NTL co)ering its 0- (ho%%y5 o(ned or +oint )ent"re channe%s #ro$ 0 ?an"ary ,--,& This a%so in)o%)ed a red"ction in carriage #ees in ret"rn #or a %ong5ter$ distri!"tion dea% o# #i)e and ha%# years& NTL and Te%e(est ha)e a%so !een negotiating ne( dea%s #or carriage o# BS3yB=s channe%s& The O##ice o# Fair Trading re+ected a dea% !et(een NTL and S3y in Se*te$!er ,--0 that set a *ricing str"ct"re o)er #i)e years #o%%o(ing its in)estigation o# an a%%eged a!"sed o# a do$inant *osition !y the sate%%ite o*erator o)er the s"**%y o# its *re$i"$ #i%$ and s*orts channe%s& In ece$!er ,--,' the OFT #ina%%y c%eared BS3yB o# !reaching co$*etition r"%es a#ter a three5year in)estigation&
Eur !ean Satellites

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L"6e$!o"rg5!ased SES Astra is the %eading sate%%ite *ro)ider' and (ith the ac<"isition o# :E A$erico$ its *arent co$*any SES :%o!a% is a %eading s"**%ier o# TV ser)ices in the United States& SES Astra sate%%ites at 02&, degrees East *ro)ide digita% trans*onders #or France=s Cana%Sate%%ite' :er$any=s Pre$iere ;or%d' S*ain=s Cana% Sate%ite' (hi%e its sate%%ites at ,1&8 degrees East *ro)ide trans*onders #or S3y igita%& Astra has 0. sate%%ites (ith #oot*rints that *ro)ide co)erage across the (ho%e o# E"ro*e& It trans$its $ore than 0'--- digita% and ana%og"e TV and radio channe%s' reaching o)er 2- $i%%ion ho$es' o)er .- $i%%ion o# (hich are )ia TH and near%y @$i%%ion )ia ca!%e& E"te%sat=s E"ro!ird a%so has sate%%ites at ,1&8 degrees East (here c%ients inc%"de BS3yB and :%o!ecast& In addition its sate%%ites at 0. degrees East *ro)ide trans*onders #or France=s TPS and AB Sat' Ita%y=s Te%eA and Strea$ and Po%and=s Cy#raA& E"te%sat has ,. sate%%ites reaching into #o"r continents enco$*assing E"ro*e' the Midd%e East' A#rica' Asia' eastern North A$erica' and So"th A$erica& E"te%sat trans$its $ore than 0',8- te%e)ision channe%s and @8- radio stations to a tota% a"dience that e6ceeds 0-- $i%%ion ho$es connected to ca!%e or e<"i**ed #or direct5 to5ho$e rece*tion&
Eur !ean Platf r"s

A ne( channe% $"st ai$ #or the (idest *ossi!%e distri!"tion& E6c%"si)e distri!"tion on one *%at#or$' #or e6a$*%e' does not $a3e a %ot o# sense "n%ess it can get $"ch higher carriage #ees as a res"%t& E)en then it $ay *ro)e cost%y o)er the %onger ter$& ;here there are t(o co$*eting sate%%ite *%at#or$s' in France' #or e6a$*%e' an e6c%"si)e TH contract (ith one nor$a%' !"t then it $a3es sense to try to get distri!"tion on the *%at#or$ (ith the $ost s"!scri!ers' "n%ess carriage ter$s are signi#icant%y !etter on the other& In the U4' distri!"tion on BS3yB $"st !e the *riority as (ith o)er si6 $i%%ion s"!scri!ers to *ay TV o# a tota% near%y 0- $i%%ion' it do$inates the $ar3et& Sate%%ite distri!"tion' ho(e)er' tends to !e $ore e6*ensi)e than distri!"tion #or ca!%e on%y as the channe% needs to !e on a TH sate%%ite trans*onder that can !e *ic3ed "* !y indi)id"a% ho"seho%ds& It costs $ore to %ease s*ace on s"ch a sate%%ite than on one that on%y needs to !e *ic3ed "* !y ca!%e headends& B"t in a co"ntry %i3e Britain' a channe% (i%% !e %osing access to the $a+ority o# s"!scri*tion ho$es i# it is e6c%"si)e%y on ca!%e& Not on%y does this $ean no TH carriage #ees #or these s"!scri!ers' !"t a%so a s"!stantia% %oss o# *otentia% ad)ertising re)en"e& In addition' carriage on S3y in the U4 is %i3e%y to i$*ro)e the chances o# getting carriage on ca!%e& The ca!%e co$*anies no %onger see their *ay5TV *ac3ages as a $eans o# di##erentiating #ro$ S3y' rather the te%e*hony and !road!and ser)ices they o##er is regarded as the di##erentiating #actor& And (hi%e it $ay !e )ery di##ic"%t to get *aid carriage #ro$ S3y' it is not i$*ossi!%e i# the *rod"ct is right& The *%at#or$ has a !"dget to s*end on content (hich $ay not !e increasing' !"t there is $oney there #or ne( channe%s' a%tho"gh any #ees to ne( channe%s (i%% co$e o"t o# those *aid to c"rrent inc"$!ents&

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#ARRIAGE #RITERIA
There are at %east #i)e $a+or criteria that a distri!"tor (i%% !e %oo3ing #or in a ne( channe% %a"nch& It (i%% (ant to 3no( that the channe% has eno"gh #inance to s"r)i)e ear%y years o# %osses' *artic"%ar%y i# it is not getting $"ch in ter$s o# carriage re)en"es& It (i%% need to !e a!%e to generate other re)en"e strea$s to co$*ensate #or %o(er or non5e6istent carriage #ees' and i# it is a sho**ing or an ad"%t channe% it (i%% *ro!a!%y ha)e to o##er si9a!%e $ini$"$ g"arantees "* #ront& The distri!"tor (i%% on%y !e interested i# the channe% is %i3e%y to a**ea% in re%ation to other co$*etiti)e o##erings& It $"st a%so #i%% a (e%%5de#ined niche B not necessari%y (ith a !ig a"dience' !"t one that co"%d sti%% !e attracti)e i# addressing an a"dience that the *%at#or$ is not reaching& It $"st a%so !e a (e%%5tho"ght thro"gh *ro*osition' and it $"st !e #"t"re #acing in the sense that there $ight !e interesting technica% a**%ications (hich co"%d #i%% the interacti)e s*ace& This is *artic"%ar%y i$*ortant #or ca!%e o*erators' as they need to e6*%oit (hat they *ercei)e as their "ni<"e se%%ing *oints B their ca*acity and their t(o (ay #aci%ity that a%%o(s #or $"ch greater "se o# interacti)ity' *%"s the a!i%ity to o##er %oca%ised co$$"nity ser)ices& CI Interacti)e (o"%d attract the de$ands o# the Ca!%e' S4C and FreeVie( o*erators' as it #"%#i%s their %ong5ter$ strategy
The Pr cess
First a channe% needs to get distri!"tion in *%ace and %ease ca*acity on a trans*onder (ith "*%in3& It then has to arrange encry*tionD conditiona% access and *%ayo"t dea%s& Negotiations can !e si$"%taneo"s' !"t e)erything o!)io"s%y hinges on carriage& The *%ayo"t contract sho"%d not !e signed "nti% the %ast $in"te as the other dea%s need to !e in *%ace #or re)en"e to !e generated& It $ay !e *ossi!%e to co$!ine the distri!"tion dea% (ith encry*tion and conditiona% access i#' #or e6a$*%e' a channe% does a dea% (ith BS3yB in the U4 (hich inc%"des %easing trans*onder s*ace as (e%% as encry*tion and conditiona% access& Other(ise' trans*onder s*ace can !e %eased #ro$ BT or NTL in the U4' (hi%e co$*anies %i3e Pearson or Mo%inaire s"**%y *%ayo"t ser)ices& It is a%(ays *ossi!%e to go #ree to air' in (hich case it $ay not !e necessary to encry*t& A channe% $ight do this i# it cannot negotiate carriage #ees or i# it (ants to !"i%d its !rand #or a *eriod !y o##ering it #ree& I# it #o%%o(s this strategy' the channe% does ha)e to c%ear the rights across the sate%%ite=s #oot*rint or it has to so#t encry*t so that' a%tho"gh #ree to air' a card is sti%% needed #ro$ the *%at#or$ to recei)e it& In either case' the channe% (i%% sti%% need to do a dea% (ith the *%at#or$ to !e on the E%ectronic Progra$$e :"ide' a%tho"gh in the U4 on BS3yB this is not a *ro!%e$ as S3y is o!%iged !y reg"%ation to *ro)ide access& The rights iss"e is $ore *ro!%e$atic& I# the channe% does o(n its o(n content' going #ree to air (i%% $a3e it di##ic"%t to se%% the rights to its *rogra$$ing in territories (here it is not distri!"ted direct%y as a %oca%ised )ersion& U* "nti% ,--.' the U4=s terrestria% !roadcasters the BBC and ITV had !een *aying BS3yB 78 $i%%ion and 70E $i%%ion res*ecti)e%y #or conditiona% access #or their digita% channe%s& Faced (ith a hi3e in its rate to the sa$e %e)e% as ITV' the BBC decided in

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March ,--. to go #ree to air (hen its contract e6*ires' $o)ing its channe%s to Astra , (hich has a tighter #oot*rint& This $ay !e th"s an o*tion #or those channe%s that (ish to !e #ree to air' !"t (ant to a)oid !eing easi%y (atched in E"ro*e& A channe% needs to %ease sate%%ite ca*acity' (hether #or irect to Ho$e F THG !roadcast or to de%i)er to ca!%e headends& Sate%%ite ca*acity is s"**%ied )ia trans*onders and there (o"%d nor$a%%y !e aro"nd ten digita% channe%s on each trans*onder& In the U4 s"**%iers o# sate%%ite ca*acity inc%"de co$*anies %i3e NTL' BT' 4ingston TLI and :%o!ecast& Another o*tion is to #ind o"t i# one o# the $a+or channe% s"**%iers has any s*are ca*acity& :ro"*s %i3e T"rner' Viaco$' F%e6tech and isco)ery ha)e their o(n trans*onders and it is a%(ays *ossi!%e that they ha)e so$ething s*are' a%tho"gh i# they do they (i%% "s"a%%y gi)e !ro3erage rights to a co$*any %i3e NTL (hich then acts as a c%earing ho"se& Other co$*anies %i3e the London Sate%%ite E6change act as a (ho%esa%e !ro3er #or s*are sate%%ite ca*acity& Another a%ternati)e is to go direct%y to the sate%%ite co$*anies the$se%)es' Astra and E"te%sat #or TH in E"ro*e& E"te%sat has $ore ca*acity and is ty*ica%%y aro"nd ,8> chea*er than Astra& There is a%so the *ossi!i%ity o# co$!ining a distri!"tion dea% (ith a trans*onder& This can !e *ossi!%e (ith BS3yB' !"t it is on%y %i3e%y !e to !e interested i# the channe% is s*ecia% and it $ay (ant an e<"ity share in the )ent"re& S3y $ight e)en o##er a #ree trans*onder' !"t this (i%% then !e re#%ected in the %o(er carriage #ees& In addition a channe% (i%% need an "n*%in3 dea% and it (i%% ha)e to choose (hether to ta3e a *ac3age dea% (here "*%in3 and trans*onder are co$!ined or to do each dea% se*arate%y& It is easier to do a sing%e dea% #or !oth& The "*%in3ing ind"stry is a high%y co$*etiti)e !"siness (ith do9ens o# o*erators& These inc%"de BT Broadcast Ser)ices' NTL' 4ingston' :%o!ecast' and NSS&
KE$ PLA$ERS IN BROAD#AST SER%I#ES

BT Broadcast Ser)ices' *art o# U4=s British Te%eco$' is a %eading *%ayer in !roadcast ser)ices& It is a $a+or shareho%der in )ario"s sate%%ite o*erators %i3e E"te%sat' Inte%sat and In$arsat& It reser)es ca*acity on sate%%ites s"ch as E"te%satHs Hot Bird and E"ro!ird and se%%s it on to !roadcasters& BS3yB ta3es se)era% o# E"te%satHs E"ro!ird trans*onders #ro$ BT& The co$*any is a%so !"i%ding "* its c"sto$er ser)ices di)ision' o##ering ca%% centre $anage$ent' s"!scri!er $anage$ent' !i%%ing' and conditiona% access syste$s to (o"%d5!e !roadcasters& The ser)ices o##ered !y BT Broadcast Ser)ices th"s co)er a%% the $ain e%e$ents o# s"!scri!er $anage$ent ser)ices as (e%% as sate%%ite ca*acity and "*%in3' inc%"ding on5site "*%in3ing&

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CHART 0I BTHS SERVICES FOR BROA CASTERS
JSo"rceI BT Broadcast Ser)icesK
CHART ,I BTHS MULTIPLEL SERVICE
Its sate%%ite ser)ices s"**%ies !roadcasters re<"iring sate%%ite so%"tions either #or TH or to ca!%e o*erators' as (e%% as !ac3ha"% #or redistri!"tion& For TH' BT he%*s to identi#y a**ro*riate sate%%ite ca*acity' as (e%% as *ro)iding "*%in3 #aci%ities i# re<"ired& NTL is the U4=s %eading ca!%e o*erator' (ith interests across E"ro*e& In addition to this' NTL is a%so the distri!"tor o# the U4 co$$ercia% terrestria% net(or3' ITV' as (e%% as other channe%s' and it *ro)ides sate%%ite "*%in3ing ser)ices&

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CHART .I EUROBIR FOOTPRINT
NTL ser)ices inc%"de *%ayo"t as (e%% as "*%in3& It o##ers an a"to$ated ser)er5!ased $"%ti5channe% *%ayo"t #or !oth %i)e and *re5*ac3aged $"%ti$edia *rogra$$ing& NTL has igita% Media Centre at Lang%ey' Ber3shire' *ro)iding *%ayo"t and *rod"ction ser)ices #or ITN' British E"ros*ort' S N and Front Ro(& Other channe%s that it "*%in3s inc%"de the sho**ing channe% MVC as *art o# a three year dea% (orth $ore than 70 $i%%ion& The channe% is *%ayed o"t #ro$ MVCHs st"dio in London and sent to NTLHs te%e*ort at Cra(%ey Co"rt in Ha$*shire #or on(ard distri!"tion& Fro$ there NTL "*%in3s to Siri"s :E0E' as (e%% as *ro)iding an a%ternati)e ana%og"e ro"te #or MVC& NTL "*%in3s Cartoon Net(or3' Bid5U* TV and TV ?o! Sho* #ro$ Cra(%ey Co"rt' a%tho"gh it is de)e%o*ing a ne( ,- acre "*%in3 site near ;inchester' gi)ing e6tra access to E"te%sat and AstraHs #%eet o# sate%%ites& Conditiona% access and encry*tion is %i3e%y to !e *art o# the dea% (ith S3y and there is an ann"a% #ee charged #or this' as (e%% as inc%"sion in the EP:& BS3yB charges (ere aro"nd 7.-'--- #or the EP:' !"t rose to "* to 7E8'--- #ro$ ?an"ary ,--.& Once the carriage' trans*onder and "*%in3 ha)e !een *"t together' the channe% (i%% need a trans$ission #aci%ity& They (i%% ta3e a sched"%e and a%% *rogra$$e $ateria%' *re*are it #or trans$ission and then trans$it it& The signa% (i%% !e distri!"ted' *ro!a!%y !y %ine F#i!reG' to the "*%in3 #aci%ity that (i%% then send it "* to sate%%ite& UPC Media in A$sterda$ *ro)ides a (ide range o# !roadcast ser)ices' *artic"%ar%y s"ita!%e #or *an5E"ro*ean and Centra% E"ro*e #eeds' #ro$ its igita% Media Centre& This inc%"des channe% $anage$ent and %ang"age )ersioning as (e%% as "*%in3ing and *%ayo"t&
PLA$OUT

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e%i)ery o# the $ateria% sti%% tends to !e !y ta*e& The 8- or so ta*es that *ro)ide the content #or the channe% need to !e de%i)ered and they (i%% then !e *%ayed o"t& The *rice #or the ser)ice (i%% de*end on the sched"%e $ode%& One $ode%' #or e6a$*%e' $ight !e si6 ho"rs o# *rogra$$ing that ro%%s #o"r ti$es to $a3e ,/ ho"rs& A #"%% channe% (ith di##erent )oice5o)ers (i%% cost $ore' !"t a ne( channe% is %i3e%y to ha)e a high re*eat #actor initia%%y' *%ayed o## a ser)er& In the U4' co$*anies *ro)iding this ser)ice inc%"de Pearson' Ad)anced Sate%%ite F(hich does a %ot o# the Asian !"siness )ery cost e##ecti)e%yG' Mo%inaire' Corinthian Te%e)ision' 4ingston TLI' NTL' and Chrysa%is& Nor$a%%y' the *rogra$$ing is s"**%ied "* to si6 (ee3s in ad)ance' a%tho"gh they co"%d *ro!a!%y (or3 "* to so$ething aro"nd t(o (ee3s i# the content is a%% Eng%ish %ang"age& In ter$s o# act"a%%y doing trans$ission' B so$e o# the #aci%ities ho"ses ha)e channe%s on the she%#' (hich $eans that they can get a ne( channe% "* and r"nning )ery <"ic3%y' (ithin (ee3s& Pre)io"s%y' there (as a 0@5(ee3 %ead5ti$e i# a channe% started #ro$ scratch& ;hi%e there is a %ot o# e6tra ca*acity aro"nd as a res"%t o# channe% c%os"res' they can do things <"ite chea*%y as they need to "ti%ise their e<"i*$ent&
AD%ERTISING INSERTS
The ad)ertising goes in at the %ast $in"te& The *%ayo"t co$*anies (i%% ha)e e)ery ad)ertise$ent on their ser)er that has !een a**ro)ed in the U4& These are there#ore ready #or insertion& They (i%% nor$a%%y get centra% *%ayo"ts #ro$ BACC three or #o"r ti$es a (ee3 and they can insert any o# the$ into the channe%& It is a%so *ossi!%e to get the$ to hand%e <"a%ity contro% so that a%% the channe%=s $ateria% is in co$*%iance (ith ITC standards and that it is !oth technica%%y s"ita!%e and does not ha)e anything shoc3ing in it editoria%%y& The channe% on%y needs to send the *%ayo"t #aci%ity the %ist (ith the ads so%d and they (i%% !e inserted #ro$ the ser)er& I# there is a #oreign #eed (ith #oreign ads' then these (o"%d ha)e to !e tra##ic3ed in #ro$ the agency in the traditiona% (ay and shi**ed to the *%ayo"t centre& U4 ads sho"%d not !e !roadcast in E"ro*e and it is there#ore necessary to ha)e a second channe%' Channe% B' (ith identica% *rogra$$ing' !"t in (hich the ad !rea3s are #i%%ed in or re*%aced (ith *ro$os or so$ething that (i%% #i%% the s*ace i# the channe% is to !e a)ai%a!%e o"tside the U4& The a%ternati)e to #i%%ing the ga*s (ith *ro$os or short *rogra$$es (o"%d !e to sand(ich a%% the *rogra$$es c%ose%y together %ea)ing no ga*s' !"t this $eans a second dea% (ith *%ayo"t centre' *%"s an a!i%ity to do di##erent %ang"ages& It (i%% there#ore cost $ore than Channe% A as e6tra e<"i*$ent is needed to de%i)er the #eed&
&OREIGN &EEDS
istri!"tion across E"ro*e can generate ne( re)en"e strea$s and this can a%(ays !e an o*tion #or a channe% once it has esta!%ished itse%# in one territory& These days it is not ad)isa!%e to *"t o"t an identica% channe% across se)era% territories (itho"t %oca%ising it #or the di##erent $ar3ets' !"t (ith digita% techno%ogy this has !eco$e

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easier and chea*er& M"ch de*ends on the genre o# *rogra$$ing as to ho( $"ch it needs to !e ada*ted as (e%% as the de$ands o# the $ar3ets the$se%)es& oc"$entaries tra)e% easi%y across #rontiers and need %itt%e %oca%isation !eyond s"!5 tit%ing or )oice5o)ers' (hi%e chi%dren=s te%e)ision' aside #ro$ ani$ation' genera%%y needs $"ch $ore& So$e territories' France' #or e6a$*%e' re<"ire $ore #oc"s on the$ than others' s"ch as the Scandina)ian co"ntries (here U45!ased channe%s need )ery %itt%e ada*tation& So$e co"ntries de$and d"!!ing or )oice5o)er' (hi%e others *re#er #oreign *rogra$$ing to !e s"!5tit%ed& Scandina)ia' #or e6a$*%e' *re#ers s"!tit%ing' (hi%e :er$any and France *re#er d"!!ing& Nor$a%%y i# a channe% is to !e !roadcast on a *%at#or$ in another territory' the #eed has to !e !ac3ha"%ed )ia sate%%ite to that territory (here it is then do(n%in3ed and "*%in3ed again to the sate%%ite "sed !y that *%at#or$& For Scandina)ia s"!5tit%es go (ith the *ict"re' (hi%e integra% to each sate%%ite #eed is a *otentia% #or #o"r di##erent a"dio trac3s that can !e sent o"t as *art o# that strea$& The Astra ,a or E"te%sat #eed can !e "sed #or !ac3ha"%' !"t it sti%% re<"ires the *%at#or$ at the other end to redistri!"te it& In Scandina)ia' #or e6a$*%e' a channe% $ay do a distri!"tion dea% (ith Cana% igita%' or it co"%d !"y ca*acity on the Thor sate%%ite or so$e other sate%%ite !ea$ing into Scandina)ia and then do a dea% (ith ca!%e o*erators& I# the necessary #eeds are on E"te%sat' then the ca!%e o*erators can +"st do(n%in3 #ro$ there and there is no need to !ac3ha"%& I# %oca%isation is %arge%y con#ined to *ro)iding di##erent %ang"ages or s"!5tit%es' there are s*ecia%ists (ho can do this& S I FS"!titi%ing N "!!ing Internationa%G' #or e6a$*%e' acts as a c%earing ho"se #or Scandina)ian and #or Midd%e Eastern %ang"ages in *artic"%ar' (hi%e Oone)ision does the sa$e #or the Centra% E"ro*ean %ang"ages& It is *ossi!%e to go direct%y to s"**%iers' !"t it is $"ch easier to go to S I or Oone)ision' at %east initia%%y& There is a !ott%enec3 (ith a"dio on the ta*e rather than on the sate%%ite& Most *rogra$$ing "ses igi!eta ta*e that has a %i$it o# #o"r a"dio channe%s' a%tho"gh UPC=s igita% Media Centre o)erco$es this *ro!%e$ thro"gh its digita% asset $anage$ent syste$s& It $ay !e *ossi!%e to generate adsa%es #oc"sed on so$e o# these $ar3ets as (e%% as s"!scri*tion re)en"e& ;hen a $ar3et gets to a critica% *oint' the costs #or e6tra sate%%ite trans$ission re<"ired are (eighed against the ne( re)en"es #ro$ adsa%es& It $ay then !e (orth(hi%e *ro)iding *ro$otions that are $ore dedicated to the $ar3et and %oca%ising the *rogra$$ing or *ro)iding *rogra$$ing $ore re%e)ant to that $ar3et&
Sky Conditional access etai%s on BS3yB=s conditiona% access conditions and charges are in A**endi6 and at (((0&s3y&co$Dcor*orateDsss%&ht$& In ,--0' the U4 te%eco$$"nications reg"%ator O#te% anno"nced that it (as to re)ie( access charges #or TV channe% carriage on sate%%ites' and (o"%d consider (hether

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*"!%ic !roadcasters sho"%d *ay at a%% or recei)e a s"!stantia% disco"nt& The BBC had !een %o!!ying O#te% to a%%o( chea*er or #ree access to British S3y BroadcastingHs sate%%ite net(or3& P"!%ic ser)ice !roadcasters c"rrent%y *ay the sa$e as co$$ercia% channe%s carried !y BS3yB #o%%o(ing an ear%ier O#te% r"%ing& Conditiona% access charges gi)e an incenti)e #or S3y to carry #ree5to5air channe%s and $a3e the$ "ni)ersa%%y a)ai%a!%e to )ie(ers (ith a S3y dish (ho do not ta3e S3yHs *rogra$$e *ac3ages& In Octo!er ,--,' O#te% r"%ed that BS3yB=s conditiona% access charges #or carrying ITV' (hich *ays 70E $i%%ion to !e on S3y igita%' (ere P#air' reasona!%e and non5 discri$inatory=& ITV res*onded !y %a"nching a ca$*aign #or P$"st carry= r"%es to !e inc%"ded in the ne( Co$$"nications Bi%% !"t the go)ern$ent (o"%d on%y acce*t an a$end$ent that ga)e it reser)e *o(ers to ens"re *"!%ic !roadcasters (ere carried on a%% digita% *%at#or$s' (ith O#co$ ta3ing o)er O#te%=s ro%e to ens"re the P#air' reasona!%e and non5discri$inatory= r"%es& The BBC a%so arg"ed that S3y sho"%d !e s"!+ect to P$"st carry= r"%es& A%tho"gh it is on%y *aying a!o"t 78 $i%%ion a year #or the carriage o# its channe%s on S3y igita%' it (as c%ear%y (orried the #ees (o"%d rise to !e $ore in %ine (ith ITV once the c"rrent contract had e6*ired& In the e)ent' the BBC decided to go #ree to air and a)oid the conditiona% access charges and ITV co"%d (e%% #o%%o( (hen its contract e6*ires' as (e%% as Channe% Fo"r and Fi)e&

Co*yright,--.

In c nclusi n
e)e%o*ing an Is%a$ic te%e)ision channe% and e)ent"a%%y a s"ccess#"% net(or3 is $ore that +"st ac<"isition o# good content' !"t It is a%so a!o"t esta!%ishing a s"staina!%e in#rastr"ct"re in order to distri!"te the channe% e##ecti)e%y and e##icient%y& This is not on%y critica% to the channe%=s s"r)i)a% !"t a%so 3ey to the channe%=s gro(th too& A strategy o# s"staina!i%ity sho"%d a%(ays !e and re$ain #easi!%e and *ractica%' (itho"t (hich the $anage$ent' i$*%e$entation and de%i)ery o# it (i%% !e di##ic"%t and cost%y& There are 3ey iss"es to tac3%e' a%% o# (hich ha)e short5ter$ and %ong5ter$ i$*%ications #or the channe%& The di##erence is !et(een s"ccess and #ai%"re& These iss"es inc%"de the choice o# !roadcasting *%at#or$ B sate%%ite' ca!%e' FreeVie( or e)en the !road!and $edia& Second%y' the Conditiona% access Fs"!scri*tionG or #ree5to5)ie( access& Third%y' the de%i)ery $edi"$ o# digita% te%e)ision' radio the (e! and e)en *rint $edia needs to !e considered& Fina%%y' %ocation' %ocation' %ocation is critica%& Location deter$ines accessi!i%ityQ accessi!i%ity is a%so %i$ited !y %ang"age too& In !roadcasting' %ocation is reso%"te thro"gh sate%%ite "sage' The E"ro!ird #or #oot*rint o# E"ro*e' Hot!ird $ay!e "sed to !ea$ into A#rica and $idd%e5east' Te%Star #or North A$erica and AsiaSat #or Asia and A"stra%ia& Ho(e)er' this in)o%)es either a "*%in3 or re%ay syste$' idea%%y a co$!ination o# !oth& COST is the *ri$ary #actor to the decision $a3ing o# the !roadcasting set5"*& Channe% ISLAM has de)e%o*ed a !roadcasting $ode% (hich a%%o(s $a6i$"$ trans$ission (hi%st ens"ring the $ini$"$ cost' to a%$ost #i)e #o%ds do(n& e)e%o*ing in#rastr"ct"re #or an Is%a$ic te%e)ision channe%' that is #easi!%e' *ractica% and s"staina!%e&0
P%ease re#er to the PBroadcasting Scenario Re*ort= #or #"rther reading

Co*yright,--.

The Broadcasting Strategy

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The Broadcasting Strategy

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BUSINESS PLANNING: DISTRIBUTION A SUCCESSFUL PLATFORM FOR AN ISLAMIC TELEVSION CHANNEL