Digital TV in Malta: The picture is getting better
While summer usually witnesses a drop in television audiences, viewers in the Maltese islands should be pleasantly surprised when they return from their holidays. Important developments in local digital TV right now will shape our experience for years...
While summer usually witnesses a drop in television audiences, viewers in the Maltese islands should be pleasantly surprised when they return from their holidays. Important developments in local digital TV right now will shape our experience for years to come.
Melita Cable is testing its high-definition (HD) service as from this month with an array of football games as the European football seasons kick off. High-definition TV (HDTV) offers images that are up to four times the number of pixels as conventional television, allowing near-cinematic picture quality, and incorporates richer stereo sound.
"HD is picking up all over Europe and is already well penetrated in the US market," explained Franco de Gabriele, marketing manager at Melita Cable. "HD TV requires consumers to have an HD-ready TV, the prices of which have started coming down since last year, and also an HD set-top box. Moreover, HD content is not readily available and many suppliers of content are only gearing up for HD now. This combination makes HD still unattractive for the mass market but we believe we have a great niche opportunity especially in sports content where Melita is the clear leader in Malta. The future of HD is certain and Melita wants to lead in this sector."
He added that the prices of HD TVs, whether Plasma or LCD, will continue to come down over the years and analysts say this could be by as much as 35 per cent per annum. This makes the penetration of HD content into homes more likely.
The cable company has also launched new sports packages to reflect the addition of exclusive Italian Serie A football matches to its sports content. Italian football for the previous two years was aired by Multiplus, recently acquired by Maltacom, today re-branded as GO.
Mr de Gabriele denied that this new sports content puts Melita in a new monopolistic position.
"Sports TV rights are bought after extensive negotiations with suppliers that chose to sell them on an exclusive basis. There are term contracts and conditions that must be respected. The premium content market in Malta is far from being a monopoly since companies have to fight tooth and nail to get the rights they think are valuable. There is more content available out there and this only makes it better for the subscriber."
The EU recommendation on relevant markets does not consider the retail TV market as being a relevant market that needs to be analysed. Hence the Malta Communications Authority does not exercise any regulatory control on Melita Cable with respect to the sports content. Asked whether the MCA discussed with Melita the launch of HD, an authority spokesman denied. "The topic was not discussed. Melita Cable own their own network and it is entirely possible for the company to transmit in an HD format. The MCA of course applauds efforts made to launch and roll out HD. As long as the company intending to transmit high definition content has the technical capability to do so, it is their decision. Should spectrum be required to achieve this, then there has to be a specific spectrum assignment process. This would require extra UHF (TV band) spectrum to be available. Currently, this extra spectrum is not available and negotiations have been underway to remedy the situation."
Indeed, the issue of frequencies strikes a chord with the other digital TV network provider, GO Plus, formerly know as Multiplus, which transmits through digital terrestrial (DTTV).
"We are currently going through an important phase of upgrades - both in terms of set-top box software as well as network coverage," revealed to i-Tech Franco Aloisio, head of corporate communications and public affairs at GO. "GO Plus is expanding its digital television network coverage and will be operating on a new set of frequencies as assigned by the Malta Communications Authority."
The MCA spokesman confirmed the changes in frequencies but declined to give details.
"Much of these discussions are of a sensitive commercial nature so it is not appropriate to disclose details. I can however confirm that there was a necessary change in local digital TV frequencies following the outcome of the Regional Radio Communications Conference held last year."
GO is expected to follow Melita and offer HD too.
"HD is on our cards too, and can be transmitted over DTTV. In due course we will be announcing our plans in this regards," said Mr Aloisio.
However, i-Tech is informed that to do so, GO would have to reorganise its channel line-up as HD is frequency-hungry and there is no extra spectrum available right now for HD channels to be added to its current channel line-up.
GO Plus is working closely with its newly-appointed strategic provider of multi-platform video-processing solutions, Tandberg Television, which forms part of the Ericsson Group.
"Tandberg's system is scaleable and can expand to support the introduction of new services including mobile TV and IPTV in the not-so-distant future," revealed GO's spokesman. GO said it is happy with the increasing number of DTTV subscribers even though it lost the Italian Serie A matches to its direct competitor.
At the end of last March, there were 110, 948 registered subscribers for analogue and DTTV, an increase of six per cent over the same month last year. A little more than one-third, 36.4 per cent, were digital subscribers, the rest being analogue. According to the MCA, since the introduction of digital television in 2005 and the concurrent entry of a new service provider, namely Multiplus, the subscriptions to analogue TV services are falling at a considerable rate while those for digital TV are climbing at an even more considerable rate.
Both Melita Cable and GO are not offering digital TV on its own but as part of bundles including other communication services.
Melita's marketing manager is certain: "We are the first company to create 'true' bundles and believe that our offering is very compelling. Mobile is a totally different market as it is owned by the person and not the household. One day we will offer mobile as well, however."
Melita Cable is testing its high-definition (HD) service as from this month with an array of football games as the European football seasons kick off. High-definition TV (HDTV) offers images that are up to four times the number of pixels as conventional television, allowing near-cinematic picture quality, and incorporates richer stereo sound.
"HD is picking up all over Europe and is already well penetrated in the US market," explained Franco de Gabriele, marketing manager at Melita Cable. "HD TV requires consumers to have an HD-ready TV, the prices of which have started coming down since last year, and also an HD set-top box. Moreover, HD content is not readily available and many suppliers of content are only gearing up for HD now. This combination makes HD still unattractive for the mass market but we believe we have a great niche opportunity especially in sports content where Melita is the clear leader in Malta. The future of HD is certain and Melita wants to lead in this sector."
He added that the prices of HD TVs, whether Plasma or LCD, will continue to come down over the years and analysts say this could be by as much as 35 per cent per annum. This makes the penetration of HD content into homes more likely.
The cable company has also launched new sports packages to reflect the addition of exclusive Italian Serie A football matches to its sports content. Italian football for the previous two years was aired by Multiplus, recently acquired by Maltacom, today re-branded as GO.
Mr de Gabriele denied that this new sports content puts Melita in a new monopolistic position.
"Sports TV rights are bought after extensive negotiations with suppliers that chose to sell them on an exclusive basis. There are term contracts and conditions that must be respected. The premium content market in Malta is far from being a monopoly since companies have to fight tooth and nail to get the rights they think are valuable. There is more content available out there and this only makes it better for the subscriber."
The EU recommendation on relevant markets does not consider the retail TV market as being a relevant market that needs to be analysed. Hence the Malta Communications Authority does not exercise any regulatory control on Melita Cable with respect to the sports content. Asked whether the MCA discussed with Melita the launch of HD, an authority spokesman denied. "The topic was not discussed. Melita Cable own their own network and it is entirely possible for the company to transmit in an HD format. The MCA of course applauds efforts made to launch and roll out HD. As long as the company intending to transmit high definition content has the technical capability to do so, it is their decision. Should spectrum be required to achieve this, then there has to be a specific spectrum assignment process. This would require extra UHF (TV band) spectrum to be available. Currently, this extra spectrum is not available and negotiations have been underway to remedy the situation."
Indeed, the issue of frequencies strikes a chord with the other digital TV network provider, GO Plus, formerly know as Multiplus, which transmits through digital terrestrial (DTTV).
"We are currently going through an important phase of upgrades - both in terms of set-top box software as well as network coverage," revealed to i-Tech Franco Aloisio, head of corporate communications and public affairs at GO. "GO Plus is expanding its digital television network coverage and will be operating on a new set of frequencies as assigned by the Malta Communications Authority."
The MCA spokesman confirmed the changes in frequencies but declined to give details.
"Much of these discussions are of a sensitive commercial nature so it is not appropriate to disclose details. I can however confirm that there was a necessary change in local digital TV frequencies following the outcome of the Regional Radio Communications Conference held last year."
GO is expected to follow Melita and offer HD too.
"HD is on our cards too, and can be transmitted over DTTV. In due course we will be announcing our plans in this regards," said Mr Aloisio.
However, i-Tech is informed that to do so, GO would have to reorganise its channel line-up as HD is frequency-hungry and there is no extra spectrum available right now for HD channels to be added to its current channel line-up.
GO Plus is working closely with its newly-appointed strategic provider of multi-platform video-processing solutions, Tandberg Television, which forms part of the Ericsson Group.
"Tandberg's system is scaleable and can expand to support the introduction of new services including mobile TV and IPTV in the not-so-distant future," revealed GO's spokesman. GO said it is happy with the increasing number of DTTV subscribers even though it lost the Italian Serie A matches to its direct competitor.
At the end of last March, there were 110, 948 registered subscribers for analogue and DTTV, an increase of six per cent over the same month last year. A little more than one-third, 36.4 per cent, were digital subscribers, the rest being analogue. According to the MCA, since the introduction of digital television in 2005 and the concurrent entry of a new service provider, namely Multiplus, the subscriptions to analogue TV services are falling at a considerable rate while those for digital TV are climbing at an even more considerable rate.
Both Melita Cable and GO are not offering digital TV on its own but as part of bundles including other communication services.
Melita's marketing manager is certain: "We are the first company to create 'true' bundles and believe that our offering is very compelling. Mobile is a totally different market as it is owned by the person and not the household. One day we will offer mobile as well, however."