Digital platforms Cyfra Plus and Wizja TV join forces

Cyfra Plus and Wizja TV, Poland's two largest digital TV platforms, officially announced their long-awaited merger on Friday. According to the merger agreement, United Pan-European Communications (UPC), which owns Wizja TV, will bring Wizja into Cyfra Plus in return for a 25% stake in the joint TV platform, as well as euros 150 million cash. The French Canal Plus group, a Vivendi Universal subsidiary, will hold 49%, with the remaining 26% held by Polcom, a company controlled by Poland's leading film producer, Lew Rywin. It is not yet certain what channels will be offered in the united platform and which satellite will broadcast them. Analysts had always argued that the market was insufficient for two rival platforms to be profitable. According to estimates, the profitability threshold for a digital TV platform in Poland is 500,000 subscribers, whereas both Wizja and Cyfra are yet to attract 400,000 and are both losing millions of euro. Now analysts say the joint platform should break even fairly quickly. (Rzeczpospolita, Aug. 11-12, p.B3) T.J.