By Jennie Matthew
CYPRUS is to join the age of digital television after the government gave the go ahead to Lumiere to provide the service, in a move set to spell massive growth for the private television company behind pay-TV channels LTV and Alpha.
“It’s a breakthrough for Cyprus. We’re not going to be left behind the rest of the world in technological development,” the company’s director general, Joseph Avraamides told Cyprus Mail yesterday.
Lumiere intend to market digital television all over Europe as well as Cyprus, in alliance with foreign broadcasting corporations.
Permanent Secretary at the Communications Ministry Vassos Pyrgos yesterday confirmed that a VSAT licence for the small antenna that zaps digital information across the globe had been granted to Lumiere. The decision was taken at the last Cabinet meeting.
Plans to go digital have been in the Lumiere pipeline for a couple of years, but work is still frantic and there is still no timetable for the product launch.
Digital television debuted in Europe as early as 1997 and appeared in Britain and the US in 1998. The Australian government has stipulated that all non-subscription TV must be transmitted in digital as of January 1, 2001.
“We still have a long way to go and we have to rush,” said Avraamides.
The company intends to spend September finalising planning and design, before making concrete commitments, but Avraamides promised more than the current two channels offered by Lumiere and a more international selection of programmes.
Lumiere is negotiating programme deals with foreign broadcasters, namely Greek, English and American companies, and hopes to forge an alliance with Multichoice Hellas, the Greek based television company, which already operates the Nova Digital Bouquet (NOVA).
Lumiere is this week issuing invitations to all Cypriot and Greek channels, including CyBC, asking them to participate in the plans, which could add at least 10 new channels to our screens.
Observers are divided over whether state-funded CyBC will enter into any kind of agreement with a pay-TV channel that poses such a serious market threat.
Digital television offers viewers clearer vision, improved sound quality and reception, alongside a wider range of programming and interactive services.
Lumiere digital viewers, for example, will be able to select their preferred language, making all programmes, regardless of language, accessible to all.
The digital launch, in the wake of success elsewhere in the world, looks poised to jettison Lumiere into considerable growth. The company joined the Cyprus Stock Exchange in July and has an annual turnover of £7 million.
Institutional investors have recently brought up large numbers of Multichoice shares, amid rumours that the digital deal would be clinched – over a million shares have been traded per day in recent weeks.
“We have a commitment to our shareholders and to increase the value of our company,” said Avraamides, fending off criticisms of bullish behaviour. About 50 new jobs will be created by the launch.
But consumers can only wait for more information. Prices remain vague, but Avraamides admitted that digital subscription would be more expensive than current rates for LTV and Alpha of £190 a year, or £16.61 a month, VAT included.
Decoders for these two-pay channels, which are incompatible with the new technology, cost £79, or £70 with a year’s subscription. The digital decoders will also be more expensive. “But I think it will be affordable,” he said. With 49,000 subscribers already, the company is confident about swelling the number well beyond the 50,000 bench mark.
Alpha and LTV will not be phased out by the new technology and subscribers will be able to carry on watching those channels.
