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Microsoft Eyes UK Digital TV Provider

xiox writes: "This story by the BBC claims that Microsoft are planning to "rescue" the failed digital TV provider in the UK, ITV Digital. This would enable them to get a large share of the British TV market, as the British Government has decided that all TVs will have to switch over to digital by 2010."

22 of 189 comments (clear)

  1. rumours by 56ker · · Score: 3, Informative

    There are all sorts of rumours spreading about ITV Digital at the moment - rumours they've struck a deal with clubs over lowering the amount of cash they'll pay them - rumours as to whether they'll go bankrupt or find a buyer first - how much cash they have left - the list goes on - but they're all that so far - just rumours!

  2. Consortium? by seizer · · Score: 3, Interesting

    The software giant is one of several firms trying to assemble a consortium to take over the wreckage

    Why on earth do they need a consortium? ITV Digital's debts are in the region of a few hundred million pounds, as far as I know, but Microsoft is sitting on an actual cash pile of tens of billions. If they truly want it, then the only reason not to buy it outright is surely a political one, not problem of means!

  3. Boost X-Box Sales? by bildstorm · · Score: 5, Funny

    So will Microsoft be giving away a new version of the X-Box as a digital tv receiver? That'd be about the only way to boost sales of X-Box games there.

    --
    The power of accurate observation is commonly called cynicism by those who have not got it. - G.B. Shaw
  4. Microsoft buys UK by nyjx · · Score: 5, Interesting
    Seems to tie in nicely with the The Register's long running set of services of Microsoft tying up the UK government's on-line and internal services.

    If this happens we may need to float the british iles off into the mid atlantic and quietly sink them.

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    .sig
  5. Great by Ezubaric · · Score: 3, Funny

    I wonder if Ballmer will get his own workout show. It'd be even worse than flashy animation from Japan: siezures and vomiting.

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    ----------
    I am an expert in electricity. My father held the chair of applied electricity at the state prision.
  6. Oh great by greg2000 · · Score: 5, Informative

    So Now anyone in the UK who wants Digital TV is going to have to chose between Rupert Murdoch or Bill Gates. Fantastic ;-)


    For those Americans Not in the Know obout our state of affairs accross the pond, ITV digital has Over bidded to get the TV rights to most Football (Soccar) games over here and as a result has gone bust. It's parent companies (both established broadcasters "Carlton" and "Granada" are using Legagal technicalities to get out of paying the Football clubs the money they were promised. This has left a lot of smaller, less well off clubs facing financial ruin, unless a buyer can be found. Whilst it is true that I think Microsoft is Vile, if it saves all of the threatened clubs my opinion of them will increase dramatically.

    1. Re:Oh great by Cally · · Score: 3, Informative

      It's parent companies (both established broadcasters "Carlton" and "Granada" are using Legagal technicalities to get out of paying the Football clubs the money they were promised.


      Not at all. Carlton and Granada are limited liability companies; this is what limited liability means - they are not liable for ITV Digital's debt just because they own a majority of the shares ('stock'). How would you like it if a compnay went bankrupt and you found yourself liable for their debt because you owned some shares in them?

      The F.A. were greedy. Football players were greedy. ITV Digital were greedy. You may have noticed, there's been a lot of this in the last few years....

      --
      "None are more hopelessly enslaved than those who falsely believe they are free." -- Goethe
  7. Microsoft and ITV by aaronsb · · Score: 5, Interesting

    About a week ago, Microsoft laid off about 65 employees in their TV division due a "re-organization". (including me)

    Almost all of the people who were cut were developers and technical people.

    Since the restructure, they're attempting to target the low-end middleware platform. For example the software that runs on a Motorola DCT-2000 cable box, and gives you the channel listings, and in the future VOD and purchase control.

    It makes me wonder what they're trying to accomplish by purchasing yet another small itv company in the UK when they don't make enough money to support their own engineering efforts.

    Aaron

  8. I've been looking... by Tsugumi · · Score: 5, Funny

    ...but I can't seem to find Ctrl-Alt-Del on my remote.

    1. Re:I've been looking... by dackroyd · · Score: 5, Informative

      Ironically they could have used one on the remote - one of the reasons why ITV Digital has gone under is the pathetic quality of their set top boxes.

      I used to have one and the top list of annoyances has to be:
      1) The channel refusing to change at all, despite having new batteries in the remote

      2) The channel change refusing to take the second digit of a channel change - "No goddamnit I said channel 26 not channel 2"

      3) Flipping through channels takes ages as it takes almost two seconds to buffer enough data to display a new channel, so scrolling from Sky 1(26) to MTV(33) would take 15 seconds...annoying if you're just checking to see if JackAss has come on yet.

      4) Having to walk over to the box to reboot it (by pulling the power cable out)about once a week, as the box refuses any input from the remote (including on/off)

      5)Super low picture quality. I don't know what codec they were using, but from the banding it looked like they were converting the image to 16-bit before converting it into a mpeg-type stream. This is okay for normal shots such as people in a room, but for Star Trek it sucked as any subtle colourations in the background would be displayed as three bands across the screen.

      But at least they weren't owned by Rupert "Pay no taxes" Murdoch. I suspect M$ won't buy them as their tech is so bad and they are direct competitors to R.Murdochs Sky One in the UK, and it would probably be a mistake for Microsoft to make him a strategic opponent.

      --
      "Free software as in beer, copy protection as in racket" - Telsa Gwynne
  9. Re:is it me? by grung0r · · Score: 3, Insightful
    I don't fear corporations at all. Because the great thing about corporations is that participation is voluntary. I fear government, because participation is mandatory.

    Particapation is not voluntary, you just have a choice as to who you chose to particapte with(Unless you want to live in a cave and hunt your food). As corporate consolidation continues, your choice will disapear as well.

    I disagree. I think its about, you know, making money. "Control" is a lot of work. It is much easier to just make money by making a product and then selling it for money.

    Microsoft may just want to make money, but they need to exert control over the consumer and the market to make more. To do that they need to goverment on their side. Thinking otherwise is just naive.

  10. <mumble> Sensationalist <mutter> by Anonymous+Brave+Guy · · Score: 5, Informative
    This would enable them to get a large share of the British TV market, as the British Government has decided that all TVs will have to switch over to digital by 2010.

    ITV Digital? "Large share"? Don't make me laugh. Many of us can't even get channel 5 properly, yet, in spite of being in a major city. Those who have satellite and/or cable forget that there are still many, many people in the UK who don't.

    This whole story is one big sensationalist rumour. I've heard so many "possibler buyer" stories about ITV Digital in the past couple of weeks that I've lost track. Why is this one any more likely?

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  11. No Surprise by Thenomain · · Score: 3, Interesting

    Even if the rumors aren't true, this is no surprise. Even before WebTV and MSN (and MSNBC, and so on), Microsoft has planned to get into the telecom business. Don't believe me? Pick up a pre-revised copy of _The Road Ahead_ at your local used bookstore. There is at least one chapter about the future of Microsoft.

    At one point there was a rumor that MS wanted to have a controlling investment in a communications satellite. I don't know what happened with that.

    --
    This now concludes our broadcast day.
  12. Whatever keeps them out of the software biz... by crovira · · Score: 3, Interesting

    Hey! Let 'em go into content production for a change.

    We know TV's already full of crap. M$ can't do any harm there. Its already down to the lowest common denominator. Let M$ go broke trying to get into HDTV. Its just a mirage as far as I can tell.

    There are still no real standards.

    The competition is already there and its dog-eat-dog.

    The margins are razor thin.

    It'd be something else they'd give up on eventually. (I haven't seen any plans for X-Box][ or X-Box ]|[. Have you? :-)

    And they'd be at the whim of their advertisers. It'd be great to see M$ pandering instead of patronizing. M$s share holders will watch the share values drop like a stone but since Bill's still richer than Creosus, he won't care and he still holds the majority so their opinion counts for squat.

    I can see it now:

    "Debby Does Redmond!"
    "M$ Where more that you system goes down!"
    "Digitized 'Chech & Chong' in:
    'Gotta Crash' "
    "MSNBC and CNet television in HDTV.
    Boredom with a 9x16 aspect ratio."

    I gave up on TV years ago. Don't even own one anymore. Waste of time. When I found yourself flipping through 50+ channels trying to see if there's anything on that caught my attention for more that a second, it was time to abandon it (I just didn't pack it a couple of ago,) and get a life.

    Maybe the world'd get usable software instead of Win-doze.

    --
    MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
  13. Another article by cca93014 · · Score: 3, Informative

    from the UK Sunday The Observer can be found here

  14. Don't get too excited by Rogerborg · · Score: 3, Insightful

    This is probably a non-story. There's a $250 million poisoned chalice attached to buying ITV Digital as a going concern, let alone the fact that it makes a loss ever second it's on air. That's not pocket change, even for Microsoft, and bearing in mind their internal beaurocracy, they probably won't be able to commit to taking it on in time to buy the business outright.

    Chances are, nobody else will either, and the company will fold, default on its debts, and then have its assets (i.e. its license and equipment) bought by a new bidder. Most likely (wait for it) is the current owners, who are chuckling all the way to the bank at the thought of being able to effectively just wipe all the debts and start clean. Microsoft doesn't like to get involved in bidding; they like deals to be done behind closed doors and controlled entirely by then. Actually bidding on an open market would be... unseemly.

    I think we can sleep easy. But then, I'm already a UK Telewest customer, and Microsoft's already got their finger in that pie, so I may be suffering the first signs of Infestation. Make up your own minds. ;-)

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  15. Re:Microsoft vs. AOL Time warner - the saga contin by darien · · Score: 4, Insightful

    Well, we had ITV Digital vs. Sky Digital, owned by Rupert Murdoch's News International. It was never a remotely equal battle. In fact MS is probably one of the few companies big enough to take on Murdoch. And just think - two vast cross-media companies, each with billions of pounds to spend, slugging it out in cut-throat competition for market share. Sounds like heaven for the happy consumer caught in the crossfire. As long as one of the companies doesn't actually win, of course.

  16. Actually I think it'd be great - No more football by Moderation+abuser · · Score: 3, Troll

    Just think, a world without all the dull dull dull football matches on TV. The more football clubs going bust, the better.

    In fact. it'd be good if Sky bought all the football matches forever then we wouldn't have to have it on every channel every saturday.

    --
    Government of the people, by corporate executives, for corporate profits.
  17. Re:not control here by Chris+Johnson · · Score: 3, Interesting

    There's a limit to how much they can keep themselves going, though, because they aren't based on being a sustainable business. They're based on being a rapidly expanding business, their whole earnings structure and valuation is based on that. It is IMPOSSIBLE for them to go forever on that basis. So you might ask, at what point would it be good to stop them and ride out the crash, given that it's gotta happen at some point?

  18. Re:Oh, wonderful... by purrpurrpussy · · Score: 3, Insightful

    I AGREE!

    Personally I think the digital transmission system should be handed over to the BBC (as they used to own and run the analogue system) - I suspect they're the only organisation that could actually get people to watch it AND utilise the possibility of data display as well as video.

    They have a long history of stuff like this - they "sponsored" the BBC model computers - they transmitted computer programs over the airwaves years ago - They still seem to like teletext which is rapidly becoming obsolete AND they have a pretty good website setup too. I seem to remember multiformat computer casettes as well.

    In 2010 it could be sold off with the government keeping a "golden share". AFAIK it still has this in the analogue system.

    All you need now is a good receiver/decoder (set top box) - I'm not sure this is ready yet. Some of the STBs in the UK are DIRE!!! The Telewest Digital box should be studied by EVERYBODY doing HCI as a example of how NOT to build a user interface!!!! Slow, clunky, confusing and the remote was not designed - they simply took a load of buttons and stuck the to a brick! I'd far rather have a Gamecube than more TV.....

    L8rs!

    --
    "None of this shit works" -W.Shatner
  19. Re:Will it affect Corrie? by Tony+Hoyle · · Score: 3, Informative

    ITV Digital != ITV.

    They just share a similar name (Granada are/were a large shareholder to ITV digital but that's as far as it went).

  20. No Money To be Made From Grimsby vs. Gillingham by Dan-DAFC · · Score: 3, Informative

    ITV Digital shot themselves in the foot by paying nearly £400 million for the television rights for the three divisions of the Football League (lots of people said at the time it was a ridiculous price).

    The number one reason for Murdoch's success with Sky was that he managed to get rights for the Premiership football, which meant anyone who wanted to watch the matches (which is a lot of people in the UK) had to get Sky.

    ITV tried the same trick with the Football League rights but somehow didn't understand that very few people would subscribe just to be able to watch Football League matches.

    Premiership football has (inter)national appeal, people all over the country (and indeed the World) will watch it because it is one of the top three domestic leagues in the World (along with the La Liga in Spain and Serie A in Italy), the quality is good and many of the World's top players play in the Premiership. In contrast, the lower levels of football have only regional appeal. When Grimsby play Gillingham the only people interested are those in Grimsby and Gillingham (and many of these will actually go to the game rather than watching it on TV) the rest of the country doesn't care.

    However, I think (though I may be wrong) that the rights have already reverted back to the Football League so that they can resell them to the highest bidder (which is bound to be much lower than the original deal), so Microsoft acquiring ITV Digital would not necessarily mean Microsoft acquiring the broadcasting rights for the Football League.

    --
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