Astra Plans Flotation

The company behind the Astra satellite television system, Societe Europeene des Satellites, a Luxembourg company, is planning a flotation which is believed will value it at more than £1bn. The company broadcasts 50 channels across Europe.

The company would be floated on the London Stock Exchange as well as other European exchanges, probably before the end of next year. A final decision on the flotation will depend upon the successful launch of the fourth Astra satellite, due in September, and the marketing of channels on the fifth and sixth satellites, which will carry digital television services.

MOVIE CHANNEL TO CHALLENGE BSKYB

A group of cable companies are aiming to launch Britain’s first pay per view movie channel. London InterConnect, a consortium of six companies including TeleWest and Videotron are planning to launch the channel shortly; details are not confirmed yet but it is believed that the group is about to sign a deal with some of the biggest Hollywood studios which would enable it to screen recently released films, putting it in a direct challenge with BSkyB’s movie channels. Details of the channel, Home Cinema, are expected to be finalised in the next few weeks.

The move could seriously affect BSkyB because screening rights are usually granted to pay per view stations 9 months after cinema release; pay channels such as BSkyB usually obtain rights after about 18 months.

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