euro news_news 12/07/2013 17:22 Page 4
Ericsson captures Red Bee Media
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n a move that further broadens its broadcast services portfolio and capabilities in the TV industry, Ericsson has announced its intention to acquire media services company Red Bee Media, from an entity controlled by Macquarie Advanced Investment Partners. The acquisition, which is subject to regulatory approval, supports Ericsson’s strategy to grow in the broadcast services market and takes advantage of its technology and services leadership to help broadcasters and content owners address the convergence of video and mobility. It will bring 1,500 highly-skilled employees, as well as media services and operations facilities
in the UK, France, Germany, Spain and Australia. This will further strengthen Ericsson’s broadcast services business, which was started in 2007 and expanded in 2012 with the acquisition of Technicolor’s Broadcast Services Division in a €19m deal. With 1,240 of Red Bee Media employees being based in the UK, Ericsson’s UK business would grow to around 4,000 employees and with more than one-third working in the media services business, the UK will become a global media hub for Ericsson. Since its foundation in 2005, Red Bee Media has established itself as a strong and diverse business with a growing number of customers around the world. It provides a range of media services; from media asset management to playout and digital video publishing, metadata services, multilingual access services and creative services to major broadcasters and broadband platforms. Red Bee Media, which is known for its high quality playout services, is also the largest editorial metadata
provider in Europe, and delivers more than 100,000 hours of subtitling per year for leading broadcasters. Red Bee Media was formerly BBC Broadcast Limited. BBC Broadcast was created by the
The UK will become a global media hub for Ericsson.
BBC in 2002, by placing a range of BBC channel creation and channel management services under one roof. It was part of an agreement with the British Government to create a commercial division that could supplement the BBC’s income from the television licence, thus keeping the licence fee increases down in the future. In 2005, BBC Broadcast, together with its subsidiaries, was sold for £166m to Creative Broadcast Services Limited, a company set up specifically for the purchase and jointly owned by Australia’s Macquarie Bank. The company was renamed Red Bee Media in October 2005.
Shortly before the sale, BBC Broadcast bought Broadcasting Dataservices from BBC Worldwide thus strengthening the EPG and programme metadata offering. “Ericsson is making a step change to our business, cementing our commitment to TV and broadcast services and continuing a journey we started in 2007,” noted Magnus Mandersson, EVP and head of business unit global services, Ericsson. “We can create value for broadcasters by making digital content more accessible, enabling monetisation of TV content more efficiently. Video traffic shows very strong uptake in the mobile networks and Ericsson can address the need of both broadcasters and telecom operators through our technology expertise and services capabilities.” The closing of the acquisition is subject to approval from relevant regulatory authorities and other contractual conditions. After completion, Red Bee Media will be incorporated into Ericsson’s Business Unit Global Services.
Anti-piracy success in Greece and Cyprus
Continued efforts by the police electronic crime prosecution departments in Greece and Cyprus have resulted in twelve more cases involving piracy of pay-TV satellite services. Since 2010, when the first cases were brought for the piracy of pay TV signal in Greece, there have been 17 sentences in total. Sentences range from imprisonment of six months to nine years and with corresponding fines of up to €32,000. The case in June was significant, involving one of the largest criminal networks in Greece and with much heavier penalties being imposed. The
defendant, who was distributing keys to decode pay TV services, was sentenced to six years’ imprisonment, a fine of €20,000, deprivation of civil rights for three years, confiscation and destruction of the seized material and forfeiture of a guarantee of €5,000. The court also ruled an appeal will not be permitted in this case. The growing number of arrests demonstrates the seriousness with which the authorities now deal with the problem of the piracy of payTV signal. It signifies also important developments in the legislative approach;
specifically, piracy of the pay-TV signal now constitutes a felonious act, resulting in criminal prosecutions. Consumers who purchase pay-TV from suppliers who have obtained the pay TV signal illegally risk losing significant sums of money, either because the pirates may be detected and criminally prosecuted, resulting in the interruption of their illegitimate service, or because, as in many cases, their ‘suppliers’ may just disappear. There is no guarantee or security that those who chose to obtain pay TV serv-
ices in this way. Sheila Cassells, executive director of the Audiovisual Anti-Piracy Alliance AAPA, said the body congratulated the police and authorities in Greece and Cyprus for their continued successes with regard to the fight against piracy. “The Greek courts are sending a very clear signal that piracy will not be tolerated, and, importantly, is a criminal offence likely to incur serious penalties. Consumers who resort to illegal sources for pay TV services should also understand the implications. AAPA and its members will continue to support the police authorities in their efforts to fight piracy,” she declared.
10 EUROMEDIA