TVP stays waiting while Canal+, Wizja come courting
"I am very happy that TVP will have at least three options to choose from," Robert Kwiatkowski, the public broadcaster's newly appointed president, said in an interview last week. "It can go with either one or the other, or go digital on its own."
When asked if TVP would choose a digital partner before the September launches of the two new platforms, Kwiatkowski said, "I don't think so."
He added that TVP would carefully consider offers from both Canal+ and @Entertainment's Wizja TV and would not rush a decision on which digital platform to join forces with.
"It's an incredibly important decision," Kwiatkowski said. "TVP's future on the market may depend on it."
The digital platform that wins the public broadcaster would have an advantage in what is sure to be a fierce battle for subscribers. TVP would add name recognition and access to extensive programming facilities. The public broadcaster, in turn, will receive new distribution outlets for its programming and new revenue streams. It would also give TVP access to more viewers at a time when its viewer share numbers for its primary channels are dropping.
In the race to woo TVP, Canal+, the country's largest, premium-TV channel, last week gave the public broadcaster an official invitation to begin negotiations over participation in its digital platform, said Lew Rywin, Canal+ Polska's president. Canal's digital platform will feature more than 10 Polish-language channels.
At the same time, @Entertainment's Wizja TV is hoping this week to hold its own meetings with TVP to discuss cooperation with its network, according to a Wizja official, who did not want to be named. Wizja will comprise 14 Polish-language channels.
Canal+ and @Entertainment had originally planned to launch separate digital platforms, but then decided to create a joint platform. Discussions fell apart June 1, however, and the two broadcasters are back to going it alone.
The choice of a digital platform will not be an easy one, Kwiatkowski said.
The strongest argument Wizja TV has to offer is that it has already successfully launched its 12 channels within @Entertainment's cable network, Polska Telewizja Kablowa (PTK), which currently has more than 800,000 subscribers.
"(Wizja) is launching right now and it has a major share of Poland's cable television market," Kwiatkowski said.
But France-based Canal+ has its pros as well. "Canal+ is the only station in Europe with experience in the successful launch of digital television," he added. "It's a very important hint for us."
Kwiatkowski is playing his cards close to his chest, refusing to say which platform may have even a slight advantage.
"Each of them will be given an opportunity to present their offers," he said.
But this ambiguous response may be good news for Wizja, which could find it easier to negotiate with Kwiatkowski and TVP's new managing board. Only a month ago, TVP's former management said the station did not see a real chance of joining with @Entertainment because the digital platform's channels would be broadcast from the U.K. on the basis of a British broadcasting license. TVP then asked the National Radio and Television Council (KRRiTV) for a legal opinion on the issue and it said the public broadcaster should not get engaged in broadcasting from abroad.
But Kwiatkowski, who came to the broadcaster from KRRiTV, said broadcasting from abroad did not bother him.
"Something is either legal or not," Kwiatkowski said last week. "(Wizja) is taking legal short-cuts, but it's still operating within the Transborder Television Convention."
But that doesn't mean that Wizja is in; nor does it mean Canal+ is out.
So far, the two seem to be in the same boat as far as TVP is concerned. But when looking to the public broadcaster, the two platforms also see it in a similar vein - they both want TVP on an exclusive basis.
Canal+'s Rywin said his company would be interested in having TVP assume a stake in its new platform, provided the public broadcaster does not go to Wizja. "We really want TVP as a partner, even if the equity we're talking about would be a minor one of 5-10%," he added.
But Canal+ isn't waiting to develop its digital offering until TVP makes up its mind about whom it will go with. Two weeks ago, the station started talking with Poland's largest commercial television station, Polsat (WBJ, July 6-12, 1998). While talks with Polsat are "more than satisfactory," Canal+ said it also wanted to welcome TVP, which is Polsat's largest competitor.
"The reason why we started to talk with Polsat first was because TVP was just changing its managing board," Rywin said.
He added that Canal+ would be willing to offer TVP everything from passive inclusion of programming into the platform to the public broadcaster assuming a stake in the new venture.
Similar talks are underway with Polsat and their results could be made public this Friday, Rywin added.
To make its offer more competitive than Wizja's, Canal+ is also negotiating with Poland's second largest cable operator after PTK, Aster City Cable, to expand distribution of the platform. If this is finalized, the deal with the Bresnan International Partners-owned network would give Canal+ access to about 760,000 subscribers. These cable viewers are customers of a newly created consortium of Aster and regional operators called Konsorcjum Programowe.
However, the recently created consortium still needs approval from the Competition and Consumer Protection Office (UOKiK).
Rywin said Canal+ sees the consortium not only as a potential carrier of its platform but also as an investor.
But distribution won't be the only area where the two digital platforms try to match each other. Both networks also want to help TVP launch more formatted programming.
Kwiatkowski said TVP may look to do more niche broadcasting, such as an all-news channel. But Canal+ may have one advantage in this regard - sports programming.
"Canal+ invested lots of money in (sports broadcasting rights), and it was a very smart move," he said. "Today it's virtually impossible to make a sports channel in Poland without Canal+'s participation."
However, Wizja is hoping to counter this advantage by offering financing for planned TVP thematic channels if the broadcaster goes with its platform, Wizja sources said.
When asked if TVP would choose a digital partner before the September launches of the two new platforms, Kwiatkowski said, "I don't think so."
He added that TVP would carefully consider offers from both Canal+ and @Entertainment's Wizja TV and would not rush a decision on which digital platform to join forces with.
"It's an incredibly important decision," Kwiatkowski said. "TVP's future on the market may depend on it."
The digital platform that wins the public broadcaster would have an advantage in what is sure to be a fierce battle for subscribers. TVP would add name recognition and access to extensive programming facilities. The public broadcaster, in turn, will receive new distribution outlets for its programming and new revenue streams. It would also give TVP access to more viewers at a time when its viewer share numbers for its primary channels are dropping.
In the race to woo TVP, Canal+, the country's largest, premium-TV channel, last week gave the public broadcaster an official invitation to begin negotiations over participation in its digital platform, said Lew Rywin, Canal+ Polska's president. Canal's digital platform will feature more than 10 Polish-language channels.
At the same time, @Entertainment's Wizja TV is hoping this week to hold its own meetings with TVP to discuss cooperation with its network, according to a Wizja official, who did not want to be named. Wizja will comprise 14 Polish-language channels.
Canal+ and @Entertainment had originally planned to launch separate digital platforms, but then decided to create a joint platform. Discussions fell apart June 1, however, and the two broadcasters are back to going it alone.
The choice of a digital platform will not be an easy one, Kwiatkowski said.
The strongest argument Wizja TV has to offer is that it has already successfully launched its 12 channels within @Entertainment's cable network, Polska Telewizja Kablowa (PTK), which currently has more than 800,000 subscribers.
"(Wizja) is launching right now and it has a major share of Poland's cable television market," Kwiatkowski said.
But France-based Canal+ has its pros as well. "Canal+ is the only station in Europe with experience in the successful launch of digital television," he added. "It's a very important hint for us."
Kwiatkowski is playing his cards close to his chest, refusing to say which platform may have even a slight advantage.
"Each of them will be given an opportunity to present their offers," he said.
But this ambiguous response may be good news for Wizja, which could find it easier to negotiate with Kwiatkowski and TVP's new managing board. Only a month ago, TVP's former management said the station did not see a real chance of joining with @Entertainment because the digital platform's channels would be broadcast from the U.K. on the basis of a British broadcasting license. TVP then asked the National Radio and Television Council (KRRiTV) for a legal opinion on the issue and it said the public broadcaster should not get engaged in broadcasting from abroad.
But Kwiatkowski, who came to the broadcaster from KRRiTV, said broadcasting from abroad did not bother him.
"Something is either legal or not," Kwiatkowski said last week. "(Wizja) is taking legal short-cuts, but it's still operating within the Transborder Television Convention."
But that doesn't mean that Wizja is in; nor does it mean Canal+ is out.
So far, the two seem to be in the same boat as far as TVP is concerned. But when looking to the public broadcaster, the two platforms also see it in a similar vein - they both want TVP on an exclusive basis.
Canal+'s Rywin said his company would be interested in having TVP assume a stake in its new platform, provided the public broadcaster does not go to Wizja. "We really want TVP as a partner, even if the equity we're talking about would be a minor one of 5-10%," he added.
But Canal+ isn't waiting to develop its digital offering until TVP makes up its mind about whom it will go with. Two weeks ago, the station started talking with Poland's largest commercial television station, Polsat (WBJ, July 6-12, 1998). While talks with Polsat are "more than satisfactory," Canal+ said it also wanted to welcome TVP, which is Polsat's largest competitor.
"The reason why we started to talk with Polsat first was because TVP was just changing its managing board," Rywin said.
He added that Canal+ would be willing to offer TVP everything from passive inclusion of programming into the platform to the public broadcaster assuming a stake in the new venture.
Similar talks are underway with Polsat and their results could be made public this Friday, Rywin added.
To make its offer more competitive than Wizja's, Canal+ is also negotiating with Poland's second largest cable operator after PTK, Aster City Cable, to expand distribution of the platform. If this is finalized, the deal with the Bresnan International Partners-owned network would give Canal+ access to about 760,000 subscribers. These cable viewers are customers of a newly created consortium of Aster and regional operators called Konsorcjum Programowe.
However, the recently created consortium still needs approval from the Competition and Consumer Protection Office (UOKiK).
Rywin said Canal+ sees the consortium not only as a potential carrier of its platform but also as an investor.
But distribution won't be the only area where the two digital platforms try to match each other. Both networks also want to help TVP launch more formatted programming.
Kwiatkowski said TVP may look to do more niche broadcasting, such as an all-news channel. But Canal+ may have one advantage in this regard - sports programming.
"Canal+ invested lots of money in (sports broadcasting rights), and it was a very smart move," he said. "Today it's virtually impossible to make a sports channel in Poland without Canal+'s participation."
However, Wizja is hoping to counter this advantage by offering financing for planned TVP thematic channels if the broadcaster goes with its platform, Wizja sources said.
