SUBSCRIBER channel LTV yesterday terminated its transmission to the Nova Cyprus platform.
The move affects some 25,000 subscribers to the digital satellite platform. The channel will still be available to subscribers of Multichoice Cyprus.
The LTV channel offers the most popular content on pay-TV, featuring movies and sports programs, including live Champions League football games.
According to LTV, the termination “became imperative as a result of the unreasonable refusal by Multichoice Hellas SA, owners of Nova Cyprus, to pay to LTV fees due for the months of April and May.
“LTV has formally requested payment of these fees – in excess of £500,000 – with no success with the result that LTV has been forced to cancel the Agreement for the Supply of Audiovisual Content with Multichoice Hellas SA.
“It is…illogical for LTV to continue providing at a huge cost its quality programme and maintain its payment schedules, while Multichoice Hellas SA collects subscriptions without paying LTV its agreed fees.
“For the above reasons LTV asks its subscribers, despite their inconvenience, for their understanding and support. LTV will very shortly announce plans that will relieve the problem created by Multichoice Hellas SA and that will satisfy the thousands of its subscribers that constitute its drawing force.
“Despite the fact that the termination of the transmission of the LTV channel from Nova Cyprus is totally due to Multichoice Hellas SA, LTV feels obliged to apologise to the thousands of its subscribers for their inconvenience. Especially since the affected subscribers have already paid their subscription to Multichoice Hellas SA and are now inconvenienced as a result of Multichoice Hellas SA not paying fees to LTV out of the already collected amounts.”
Despite the setback, LTV pledged to take corrective measures:
“Fully aware of the problem created by the above action of Multichoice Hellas SA, LTV is now proceeding to enter into appropriate agreements with other Cypriot companies that operate platforms of television content distribution in order to distribute the LTV channel via these platforms.”
The channel will also be taking legal action against the Greek company:
“Following the cancellation of the above agreement LTV has instructed its legal advisors in Greece to file a suit against Multichoice Hellas SA, for all due amounts exceeding £900,000 that arise from subscriptions collected by Multichoice Hellas SA and not paid to LTV, as well as for damages arising from the above violations by Multichoice Hellas SA.”
Multichoice Hellas SA yesterday released a statement describing LTV’s actions as ‘regrettable’ and ‘illegal’, citing ‘financial differences’ as the reason for withholding payment.
It was the latest development in the television corporate wars that flared back in February, when news emerged of a deal between LTV and the Cyprus Telecommunications Authority (CyTA). Except that now subscribers are beginning to feel the heat.
Under the agreement, LTV and ALFA would remain on Multichoice’s platform until 2010, while at the same time LTV and Alfa will supply miVision, CyTA’s digital television platform, with entertainment content.
But the arrangement was put on ice when it came under scrutiny from the competition watchdog, after private telecom providers warned of the creation of a super-cartel in the industry.
That set in motion a chain of events, culminating in last month’s decision by the Competition Commission (CC) which found that both Multichoice and LTV were at fault for the exclusive distribution of the latter’s content and due to the long duration of their agreement.
LTV was consequently fined £275,000 and Multichoice £130,000. The move to split had been initiated by LTV. Observers suggested that Multichoice’s withholding of payments was a form of ‘pay back’ for the split.
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