Euromedia November December 2013 | Page 8

euro news_news 28/11/2013 18:09 Page 2 Education, innovation key to end movie piracy ducating current and prospective movie fans and innovating with accessible, affordable business models are key to combating online movie piracy, according to panellists at a debate on the topic organised by procopyright consumer education body the Industry Trust for IP Awareness as part of the BFI London Film Festival. Noting that the Trust had been set up some 10 years previously, Liz Bales, director general, said that piracy had “hugely changed, and with that, the way that we talk to audiences and the way that we engage with audiences, that changes as well. Education is one of the things the Trust does, and it’s important to put the whole picture together.” Referring to previous initiatives regarding rights and protecting intellectual property, Bales said this continued to be an important part of what the industry did in terms of curbing the impact of piracy. “The other most E important thing the industry does around reducing the impact of piracy is about innovation; ensuring that there are fantastic services out there that offer state-of the-art cinema experiences, fantastic quality on discs and that the product, increasingly so in terms of digital offering, is out there. That’s where we’ve seen real growth and real change over the last 18 months. There’s a whole load of ways consumers can engage in content.” She said the message should not be negative in terms of the detrimental effects of piracy, but should be on the basis that “film is fantastic. It’s about inspiring people and directing them where to go.” Mark de Quervain at FindAnyFilm produced research which suggested that the cinema industry was highlyreliant on a small number of cinephiles for its revenues, also accepting that among that number were a percentage of illegal downloaders. Orlando Parfitt, of Yahoo! UK noted the prevalence of illegal sites when carrying out simple movie title searches on leading search engines. “There was nothing on any of those front pages from iTunes, or LOVEFiLM or Netflix, which are the obvious three legal ways to watch those films. It’s something we all have to look at. It’s a huge battle. A huge amount of traffic is being sucked up by pirate sites,” he admitted, adding that it was the responsibility of legal providers of movie content to get their house in order in terms of optimising websites so that the first option in such searches should be a legal option. AMC buys Chellomedia channels for $1bn iberty Global International (LGI) is selling its international content division Chellomedia to AMC Networks for approximately $1 billion. The assets being sold include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and the broadcast solutions unit Chello DMC. In addition, Chellomedia’s stakes in its joint ventures with CBS International, A+E Networks, Zon Optimus and certain other partners are also part of the deal. Liberty Global will retain its Dutch premium channel business, L 8 EUROMEDIA which consists of its Film1 and Sport1 channels. Mike Fries, president and CEO of Liberty Global, described the deal as “a great transaction for all parties”, noting that Chellomedia was one of the largest international channel groups with distribution to more than 390m households in 138 countries. “I have no doubt that the management team will continue to build tremendous value as part of AMC. For Liberty Global, this transaction is attractive from both a valuation and liquidity perspective. It also simplifies our business and allows us to focus on our core markets and more strategic programming opportunities.” “Chellomedia has developed a remarkable portfolio of popular channels that reach hundreds of millions around the world. As AMC Networks has expanded internationally, we have had a great desire to do something we consider fundamentally strategic, which is to take our content and put it on channels we own. This acquisition allows us to secure a large, global platform on which to distribute our increasingly successful original programming through a collection of strong, wellestablished and wellmanaged assets worldwide,” said Josh Sapan, president and CEO of AMC Networks. “Together, we can grow these assets and make them even more popular and valuable around the world.” The agreement includes the acquisition of Chellomedia’s operating businesses including: Chello Central Europe, Chello Latin America, Chello Multicanal, Chello Zone, the ad sales unit Atmedia and. The transaction is expected to close in the first quarter of 2014 and is subject to limited closing conditions. The transaction is not co nditioned on any regulatory approvals. The assets were put up for sale in May 2013 and it is understood that other interested bidders included Scripps Networks Interactive, Turner Broadcasting System and Discovery Communications.