Developments on the Latvian TV market

For most Latvians, television is a service that comes over the net, so it rightly belongs in a telecoms blog. And anyway, what is telecoms? More and more, it is using a computer with a voice/video chat function. I am not only talking about Skype and its clones, but also those computers with voice functions that we call smartphones, such as the iPhone4s.

There has been a big hoo-hah about television in Latvia, mainly because of a big merger between a subsidiary of Sweden's Modern Times Group (MTG), TV3 and another privately owned TV company Latvijas Neatkarīgā televīzija (LNT). TV3 and LNT were both loss makers in a drastically reduced advertising market and it was a matter of time before LNT would go down first, taking a pretty talented crew and substantial audience down with the ship. So the move was necessary, and, even if it established a kind of Swedish monopoly on commercial television (with lots of restrictions imposed on the deal by Latvia's Competition Council) it was still better than the alternative of LNT going down or being sold to some murky Russian media group.
Up to now, both channels have been paying customers of Lattelecom, both for its terrestrial digital broadcast services (with the digital signal also going out over Lattelecom's interactive IPTV service). Oddly, Lattelecom's CEO Juris Gulbis spent quite a few tweets criticizing the merger, even though both were his customers and it really didn't matter who owned them as long as they pay their bills. In 2013, if amendments to the Electronic Media Law are passed, it will put an end to something called “must carry” and both commercial channels, hitherto broadcast over cable and internet networks for free, will be able to charge cable operators and, eventually, viewers, for watching them. Kaspars Ozoliņš, the CEO of MTG Baltics says the extra revenue will allow him to expand locally produced programming on both “national” commercial channels, thereby retaining and increasing his audience and the base for future advertising.
It may, however, be too little and perhaps too late. A lot of cable operators are saying they will relegate both national commercial channels to premium packages with fewer viewers, defeating the purpose of increasing the number of viewers. Others will pay but won't pass on their costs to their viewers (the head of a small cable TV operation in the town of Kuldiga told me this). Still others may use their cable networks as “common antennas” and feed the terrestrial digital signal (still for free for all of 2013) to their viewers. Those who have modern television sets with built in digital decoders will see the feed effortlessly, others may have to rig their Lattelecom terrestrial decoders to the cable network. So it looks like lifting “must carry” will not exactly free the Golden Goose to go flying into the coffers of MTG.
An interesting and still struggling free internet TV operation is draugiem.tv, launched by the social network of the same name. Its assortment of channels is still limited, but still includes BBC World. It seems that the commercial Latvian networks see it as an upstart and have blocked draugiem from using their signal. Look for a proliferation of internet TV and TV aggregators in Latvia as entrepreneurs discover how relatively easy this is to do.
On another note, I tested the new random videochat application Airtime.com. The jury is still out. I ended up talking to an internet entrepreneur in The Hague, told him about TechHub Riga. Before him, some murky faces appeared (bad lighting, bad cameras), not eager to talk. So it could be another Chatroullette, which by many accounts degenerated into a series of exhibitionists looking for random “viewers” of their attributes.

TV3 in Latvia may be cut off from terrestrial broadcasting

TV3, the television channel owned by Sweden's Modern Times Group will be cut off from both analog and digital terrestrial broadcasting on June 1, it was confirmed.

Ieva Līne, public relations manager of the Latvian State Radio and Television Center (LVRTC), which provides terrestrial broadcasting services, said TV3 would be taken off the air on June 1, when Latvian completes a nationwide digital switchover.

At the same time, Lattelecom CEO Juris Gulbis said TV3 hadn't signed any agreement to be broadcast on the digital terrestrial network that is operated jointly by Lattelecom (as content aggregator) and the LVRTC.

Minister of Transport Kaspars Gerhards also said there was no turning back from the digital switchover.

Baiba Zūzena, director-general of  TV 3 Latvia  said she was shocked and surprised by the statements, as TV3 was in talks with both the LVRTC and Lattelecom about signing broadcast agreements.

NOTE: This post was erroneously uploaded to my Free Speech Latvia blog.

Latvia officially launches digital terrestrial TV

After broadcasting under test conditions since late December (in Riga since last summer), digital terrestrial TV was launched as a commercial-quality service in Latvia. Free-to-air and pay channels are being packaged by fixed-network telco Lattelecom, while the new digital network has been set up and operated by the Latvian State Radio and Television Center (LVRTC). Latvia's analog broadcast network will be shut down in two steps -- in Riga and environs (a roughly 70 km radius) on April 1, and on June 1 in the rest of the country.

At a press conference, Lattelecom CEO Juris Gulbis also announced that digital terrestrial paid channels would be available as a pre-paid service that could be filled up at Narvesen or Plus Punkts kiosks, on the internet and later, at large supermarket chains (negotiations are still in progress). To watch pre-paid digital broadcast TV, customers can buy a starter kit for LVL 44.50, which includes a decoder and smart card to be activated by a code purchased by buying credit for the length of time and program packet one wants to watch. The model is similar to that for prepaid mobile services, where once the customer has a SIM card (in this case, the decoder smart card), all that is needed is to top-off the available credit.

Gulbis said that he estimates more than 50 000 households are already watching digital terrestrial TV, of which 21 000 have subscribed to paid services. Public television Latvijas televizija's two channels, and commercial broadcasters LNT and TV 5 will be part of the free-to-air offering. Swedish Modern Times Group (MTG) owned TV3 has been a hold-out, saying it intends to continue broadcasting on the analog network at least until the end of this year. The LVRTC has indicated it will simply cut off service to TV3, since it is unreasonable to expect the company to pay the full cost of the entire analog network, which is estimated around LVL 2 million.

Kaspars Ozoliņš, who heads MTG's television operations in the Baltics, says the Lattelecom-LVRTC project's costs for broadcasters are excessive compared to neighboring Estonia and Lithuania, where digitalization is further advanced. There have been hints that the stand-off could end in litigation, though Ozoliņš insists he is defending the interests of low-income viewers and trying to save money for program production, rather than paying broadcasting costs.