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Premiere pay TV unveils €450-million capital increase

The German pay-TV channel Premiere will proceed with a capital increase of €450 million ($630 million) to obtain credits essential for its survival, the group said on Tuesday.

Published: 23 December 2008 11:38 CET
Premiere pay TV unveils €450-million capital increase
Photo: DPA

The increase, to be backed by Premiere’s main shareholder, US media group News Corp, is a condition for renegotiated credit of €525 million, and thus “a prerequisite to the survival of the company,” a statement said.

The Italian company Fininvest, which is controlled by Prime Minister Silvio Berlusconi, owns more than three percent of Premiere, while News Corp has a dominant stake of 25.01 percent. News Corp is owned by press baron Rupert Murdoch.

Premiere said it had “to make considerable investments in programming, customer facing technology, marketing and customer service to enhance the offer and attract new subscribers.”

The TV channel has suffered three years of turmoil since it lost exclusive rights to the transmission of German football matches, its most popular programme.

Next year, Premiere said it expected “negative cash flow in a range of €250 million to €275 million and a significant loss” in core earnings.

BUSINESS

Google News to return to Spain after seven-year spat

Google announced Wednesday the reopening of its news service in Spain next year after the country amended a law that imposed fees on aggregators such as the US tech giant for using publishers’ content.

Published: 4 November 2021 10:15 CET
Google News to return to Spain after seven-year spat
Google argues its news site drives readers to Spanish newspaper and magazine websites and thus helps them generate advertising revenue.Photo: Kenzo TRIBOUILLARD / AFP

The service closed in Spain in December 2014 after legislation passed requiring web platforms such as Google and Facebook to pay publishers to reproduce content from other websites, including links to their articles that describe a story’s content.

But on Tuesday the Spanish government approved a European Union copyright law that allows third-party online news platforms to negotiate directly with content providers regarding fees.

This means Google no longer has to pay a fee to Spain’s entire media industry and can instead negotiate fees with individual publishers.

Writing in a company blog post on Wednesday, Google Spain country manager Fuencisla Clemares welcomed the government move and announced that as a result “Google News will soon be available once again in Spain”.

“The new copyright law allows Spanish media outlets — big and small — to make their own decisions about how their content can be discovered and how they want to make money with that content,” she added.

“Over the coming months, we will be working with publishers to reach agreements which cover their rights under the new law.”

News outlets struggling with dwindling print subscriptions have long seethed at the failure of Google particularly to pay them a cut of the millions it makes from ads displayed alongside news stories.

Google argues its news site drives readers to newspaper and magazine websites and thus helps them generate advertising revenue and find new subscribers.

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