TV3 buys Channel 6 for undisclosed sum.

Mayo Exile

TV3 buys Channel 6 for undisclosed sum. Links to stories in Irish Times and Rte.ie/Business.

Irish times.com:

http://www.irishtimes.com/newspaper/finance/2008/0726/1217013246056.html

Rte.ie/Business:

http://www.rte.ie/business/2008/0725/tv3.html

Piece on Aertel, p. 134 is saying €10m though:

http://www.rte.ie/aertel/134-01.html

Good or bad for the Irish Market?

Elmo

This seems to just mean a rebranding of the channel to 3Xpose with extra programming from other TV3 shows.

I can also see them slowly move away from shows like Dawson's Creek, Charmed, Buffy, Party of Five etc.

I suppose the name change will happen with the relaunch of their website in the autumn.

I suppose Channel 6 will show "The Apprentice: You're Fired"

Will the news be on Channel 6 or will TV3 just move Xpose to Channel 6

I think Channel 6 haven't had much of an impact on the market so I cann't see it being either good or bad for the market. Nightshift might be axed which would be a pity.

weehamster

You see, this is the problems Irish companies have to face in the UK dominated Irish TV market. On paper Ch6 looks OK and actually own the rights to show in Ireland.

American Dad, Buffy, Charmed, CSI, ,CSI: Miami, Dawson's Creek, Degrassi: The Next Generation, Family Guy, Frasier, Friday Night Lights, Friends, Heroes, House, King of the Hill, L Word, Law & Order: SVU, Law and Order, Law and Order: CI, My name is Earl, NCIS, Night Shift, Nighty Night, Party of Five, Rachael Ray, Scrubs, Seinfeld, Sex and the City, Shark, That 70's Show, The Class, The Fashionista Diaries, The Fast Show, The Unit, The US Office, The Wire, Trailer Park Boys, What Not to Wear, Without a Trace.

Yet because may of these show are already on UK channels which have been broadcasting into to a void in Ireland as well as the their intended UK market for many years, people here see these UK channels as established (Irish) ones. I really do wonder if these UK channels actually have rights to show in Ireland. What chance does a business here have trying to legit have the Irish rights.

Then there is the availably. Very low Sky EPG number, Many on UPC analogue haven't even bothered tuning it in, not available a aerial and even Boxer didn't even include it in its DTT submission line up.

As for TV3 buying it up, well I'm not too happy but was there really any other option.

A sad day for choice.

Zaphod

Elmo wrote: »

This seems to just mean a rebranding of the channel to 3Xpose with extra programming from other TV3 shows.

I don't see any mention of rebranding Channel 6 to 3Xpose. Wasn't the launch of 3Xpose conditional on OneVision getting BCI approval?

Elmo

I don't see any mention of rebranding Channel 6 to 3Xpose. Wasn't the launch of 3Xpose conditional on OneVision getting BCI approval?

No TV3 still plans to be "a multichannel Irish content provider".

I didn't really see the point of 3Xpose and 3Today in their submission since it is their intention to have such channels in the future. EasyTV submission also suggested an extra TV3 channel they called it TV3 ABC1 (I presume because that is the market a new TV3 channel would go after).

TV3's news release:-
http://www.tv3.ie/media.php?action=news&id=164

Yet because may of these show are already on UK channels which have been broadcasting into to a void in Ireland as well as the their intended UK market for many years, people here see these UK channels as established (Irish) ones. I really do wonder if these UK channels actually have rights to show in Ireland. What chance does a business here have trying to legit have the Irish rights.

I don't think people do see the English channels as established Irish ones. Many of the shows you mention where never on English TV or wheren't on the established ones. American Dad (BBC 3), CSI(five), ,CSI: Miami, Degrassi: The Next Generation (Is it available in the UK?), Family Guy#(BBC 3, TV3), Friday Night Lights (Did it make it?), Heroes (Only after it success C6 got their 1st), House(five), Law & Order: SVU (TV3), Law and Order (RTE, SKY), Law and Order: CI (RTE), NCIS (not sure about this), Night Shift (This is there own show), Rachael Ray (Sky???), Shark (RTE), The Class (e4), The Fashionista Diaries (dONT KNOW), The Unit (Virgin 1), The US Office (Paramount???), The Wire (TG4, FX), Trailer Park Boys (Paramount), What Not to Wear (US Version)

I took out the ones on the main UK channel i.e. BBC 1, BBC 2, C4 and ITV. (Five isn't very available in Ireland).

Really the English channels have suffered in Ireland with Digital according to the Audience Figures with Irish Channels making up 51% of all viewing (1, 2, 3, 4, Setanta and 6). BBC 1, 2, UTV and C4 have all suffered in Ireland, UTV is at 7% in comparision to 13% 5 years ago.

I think its the mix of shows on C6 and the endless repeats of many of their shows on other channels including the Irish ones, why did they buy Friends?

Zaphod

Sorry, maybe I'm obtuse, but I still don't see anything about rebranding Channel 6 as 3Xpose.

Elmo

Sorry, maybe I'm obtuse, but I still don't see anything about rebranding Channel 6 as 3Xpose.

Sorry IMO they will change the name of C6 to 3Xpose or a brand of TV3, so that they can link it into TV3 programming. I.e. end credits rolling on Xpose, starting over on 3expose Hollyoaks, Emmerdale is on at 7 here on TV3 but up next its How Clean is Your House.

Taking bets on the name change.

icdg

weehamster wrote: »

Yet because may of these show are already on UK channels which have been broadcasting into to a void in Ireland as well as the their intended UK market for many years, people here see these UK channels as established (Irish) ones. I really do wonder if these UK channels actually have rights to show in Ireland. What chance does a business here have trying to legit have the Irish rights.

Then there is the availably. Very low Sky EPG number, Many on UPC analogue haven't even bothered tuning it in, not available a aerial and even Boxer didn't even include it in its DTT submission line up.

Before one slaughters the UK channels:

* Channel 4 have been legitmately buying the Irish rights to any programmes they have commissioned over the past few years and are at the stage now where apart from some US imports they own the rights to most things commissioned.
* The BBC produce or commission the vast majority of the programmes they broadcast and so in most cases have no problems showing these in ROI. The number of imports broadcast by the BBC is now rather low and limited really to films and certain imports like Heroes and and some sitcoms on BBC Two.

Also remember that until the passage of the 2001 Act there was no legal way for a commercial television channel, other than TV3, to set up in Ireland without getting an Ofcom licence in the UK and uplinking from there. The law provided for ONE commercial television station and all other television broadcasting was to be provided by RTÉ.

As for Channel 6 - I found its claim to be an "Irish" channel dubious. Yes it was Irish owned, but the vast majority of its programmes were American. I don't see it making the investment in the Irish market the BBC has: BBC programmes down through the years like Ballykissangel and The Ambassador, both of which were set and produced in the Republic and had budgets for single episodes which were probably greater than Channel 6's entire expenses on Irish programming since it began, other BBC Northern Ireland co-productions with RTÉ, coverage of the GAA, political coverage etc. The BBC has applied for and got Irish licence fee money through "Sound and Vision". What has Channel 6 made? Some cheap studio presentation for music videos and a movie show. Channel 6 is Irish in name, but American in programming and I don't see what gave it any god-given right to the EPG 106 slot. At least TV3 has public service requirements (such as they are) but Channel 6 had none and had no more claim to EPG 106 than any other cable or satellite channel IMO.

Elmo

I have to agree with you on that C6 really had no claim to be on 106, but then can UPC claim that BuzzTV an "Irish channel" should reside on 121 while DCTV is put to the end of the line up on 802????????

BBC programmes down through the years like Ballykissangel and The Ambassador, both of which were set and produced in the Republic

That's a bit of problem for me. I really don't see these so called "Irish shows" as being Irish. I would have let you away with it if you suggested Family, Eureka Street or Season 1 of Batchelor's Walk. But BallyK and the Ambassador where really just Monarch of the Glen or Heartbeat set in Ireland AFAIK the majority of the episode where written, produced and directed by English people. Ditto Rough Diamond.

But BBC NI and UTV are more Irish then C6.

I agree C6 fail because it failed to invest in strong Irish programming and the BCI gave them a licence suggesting that they 25% of Irish programming which was unrealistic for a start up TV channel. TV3 also fail on this point but lucky for them Corronation Street and Emmerdale aren't on any domestic competitors.

sgall

It will be completely ridiculous if the deal is allowed to pass. There are more than enough wealthy individuals and corporations in Ireland who should be given preference for C6. TV3 has been a compete cultural failure- not one hour of indigenous drama has been commissioned in almost a decade. The BCI and Comreg need to stop acting like lazy impotent quangos and start asserting the powers they have been invested with.

byte

Maybe, when TV3's licence comes up for renewal soon, the terms and conditions are a bit mroe strict with regards to home programming.

rlogue

I doubt it - going on past form I expect the BCI will simply rubber stamp TV3's new licence and let them carry on rebroadcasting most of UTV's prime time output.

A great opportunity for a genuine competitor to RTÉ is lost, yet again.

watty

Why?

No compelling content that TV3 couldn't do on a 2nd TV3 channel
Hardly any viewers
Not a valuable brand name

I hope they got it at a knock down price

Before TV3 could compare themsleves to RTE2 and boast of being 1% ahead. Now they can point to being 11% behind RTE1 (on TV3) and 13% behind RTE2 (on C6).

MattEmulsion

icdg wrote: »

As for Channel 6 - I found its claim to be an "Irish" channel dubious. Yes it was Irish owned, but the vast majority of its programmes were American. I don't see it making the investment in the Irish market the BBC has: BBC programmes down through the years like Ballykissangel and The Ambassador, both of which were set and produced in the Republic and had budgets for single episodes which were probably greater than Channel 6's entire expenses on Irish programming since it began, other BBC Northern Ireland co-productions with RTÉ, coverage of the GAA, political coverage etc. The BBC has applied for and got Irish licence fee money through "Sound and Vision". What has Channel 6 made? Some cheap studio presentation for music videos and a movie show. Channel 6 is Irish in name, but American in programming and I don't see what gave it any god-given right to the EPG 106 slot. At least TV3 has public service requirements (such as they are) but Channel 6 had none and had no more claim to EPG 106 than any other cable or satellite channel IMO.

To be fair the BBC is funded by the British licence fee payer to the tune of 1.5 BILLION GBP ber annum and C6 had €14m to do them for 3 years so comparing the two is a bit facetious, also the BBC have been doing their thing for 80 years and C6 were up for 2.5, perhaps with better funding and a bit more time they would have made more Irish shows. Don't forget it took TV3 8 years to turn a profit and they were bollocksed until they got itv shows - but would you call them a UK station?

As C6 wasn't free-to-air (i.e. you had to have sky or ntl/chorus) they couldn't apply for the sound and vision fund under the way the legislation was framed. Which considering UK publically funded moneybags like the BBC and Channel 4 can take Irish licence payers money and an indigeneous newbie station can't is disgraceful IMO.

rlogue

BBC and Channel 4 (or least the production companies who sold Irish made programmes to them) can take the money because they are free to air. Channel 6 has always effectively been a pay broadcaster and therefore can't.

Elmo

To be fair the BBC is funded by the British licence fee payer to the tune of 1.5 BILLION GBP ber annum and C6 had €14m to do them for 3 years so comparing the two is a bit facetious, also the BBC have been doing their thing for 80 years and C6 were up for 2.5, perhaps with better funding and a bit more time they would have made more Irish shows. Don't forget it took TV3 8 years to turn a profit and they were bollocksed until they got itv shows - but would you call them a UK station?

TV3 where IMO earning a profit by the end of year 3 just before ITV bought 45% of TV3. By year 3 they had a 7% share of the audience. Unlike TV3 C6 do not have to produce a news service as they are an "Entertainment" channel. Creative accounting is what suggested Losses in TV3, CanWest basically took as much money out of TV3 as they could get (1 year before they pull out TV3 announces a profit mmmmm), put in as dividends or load repayments or some other such accounting system caused it to look like TV3 where loss making when in actual fact their shareholders where just retaining the money. (I point out that this is an opinion based on figures, reports and other such items that I have read over the years.)

C6 on the other hand are loss making and that is down bad management of the service. No offence to C6. While C6 did buy some excellent shows House, The Closer etc that had not been shown on Irish or UK TV before they failed to see that constant repeats of Teeny Boober dramas Dawson's Creek, Buffy, Party of Five don't really impress an audience. Higher end programming would have been a better option.

As C6 wasn't free-to-air (i.e. you had to have sky or ntl/chorus) they couldn't apply for the sound and vision fund under the way the legislation was framed. Which considering UK publically funded moneybags like the BBC and Channel 4 can take Irish licence payers money and an indigeneous newbie station can't is disgraceful IMO.

Incorrect C6 produced Cois Farraige with aid from the sound and vision fund. City Channel, DCTV, setanta etc have access to the fund.

watty

BBC & C4 don't get any Irish Licence Fee money for UK.

sofasogood

I do know that TV3 have bought all of channel 6's programmes too. There is no talk of a rebrand but I'll bet there'll be a lot of programme swapping between the stations. But what are TV3 going to do? They only have crap programmes to bring to the table and they barely fill their own schedule nevermind a second stations!!!!!!!!!!!!!!!

Elmo

I do know that TV3 have bought all of channel 6's programmes too. There is no talk of a rebrand but I'll bet there'll be a lot of programme swapping between the stations. But what are TV3 going to do? They only have crap programmes to bring to the table and they barely fill their own schedule nevermind a second stations!!!!!!!!!!!!!!!

TV3 have plenty of money to spend on Imports. RTÉ buy 11,000 hours of imports each year costing 25,000,000 their is no reason why TV3 cann't buy this amount of TV hours from abroad.

The problem lies with Irish Programming. TV3 are reported to be spending 10,000,000 on this deal with more money going to the orginal investors of C6 should it make a profit anytime over the next 3 or so year. IMO TV3 should not be allowed spend 10,000,000 on C6 and should be forced to spend this money on Irish programming with particular focus on Drama. Or they should be forced to spend this type of money on Drama with the sucessful buyout of C6. (I can only see this as benificial to C6, access to TV3 news, access to Xpose and access to spin off TV3 shows such as The Apprentice: You're Fired.) Over all across the two channels it will mean more investment into non prime time shows, e.g. 6 gets a hip morning show with hip news from 3, it will be well hip !!!!)

As for not rebrand C6 into a TV3 channel: I find this unlike unless TV3 plan to sell C6 in the future. I will give the C6 brand a year before a full rebrand. In september it will carry the offical TV3 ident on all C6 idents. (e.g. Network Two in 1995, note the RTÉ logo on screen)

I also suggest that they start each day on 6 with a Schoolhouse Rock song called I Got Six.

http://www.youtube.com/watch?v=cwkgNf69ihY

Elmo

http://www.independent.ie/business/irish/tv3s-836410m-takeover-move-for-channel-6-clears-first-hurdle-1445268.html


So they are moving C6 to Ballymount. I wouldn't see an need to keep the brand.

Elmo

C6 A TV3 Company

byte

TV3's logo sucks. Looks even worse when beside the better looking 6 logo.

BowWow

[/B]
Sunday Business Post

3rd. August 2008

‘Trip-over’ Channel 6 gets a second chance[/B]

Channel 6’s youth formula failed to win viewers, so can its new owners TV3 do any better, asks Samantha McCaughren Business Correspondent.

The television business may conjure up glamourous images but in reality it is competitive, expensive and dependent on an often fickle audience.
The backers of Irish station Channel 6 were confident they had a wining formula when they launched in March 2006, but it failed to clock up enough viewers and revenues to make its model work. As losses at the youth station continued to mount, TV3 has stepped in with the aim of turning around its fortunes.
Informed sources say Channel 6 investors are unlikely to make back the €13 million to €14 million invested so far, but theTV3 deal gives them hope of reducing losses. Channel 6 had hoped to get 3 per cent of the 15 to 34-year-old audience but, in the first six months of this year, its audience was just 1.2 per cent. It has improved on last year, but not enough.
Channel 6 was backed by Pat Donnelly, former boss of ad agency All Ireland Media, now known as Carat. Donnelly believed that a niche Irish television station aimed at under35s could make for a profitable business.
A number of other investors from outside the media world backed the station, including several venture capitalists. ACT Venture Capital took around 30 per cent of the company, while Delta Partners took a 19 per cent stake. Domhnal Slattery’s Claret Capital took a stake of around 12 per cent.
The Gowan Group car distributors and Barry’s Tea family each took less than 10 per cent. Donnelly and co-founder Michael Murphy were the other shareholders.
In March 2006, the station’s investors were expecting revenues of €4 million to €5 million a year. However, Adspend figures from advertisers’ body IAPI indicate that in the first nine months on air, the station had revenue of €986,000. In 2007, it was €2.12 million. In the six months to last June, it was €1.36 million, an increase on the same period last year.
In 2006, the broadcasting minnow had losses of €5.5 million which have increased since then.
Media buyers are quick to explain the shortcomings of Channel 6. ‘‘It’s not unique enough,” said one. ‘‘The programmes it tended to have uniquely were D-list. Anything that was A-list was available elsewhere and usually years ahead elsewhere. Sex and the City and Friends are examples of this.”
It had shows such as Heroes and The Wire ahead of the market but failed to capitalise on these, one senior media buyer said.
‘‘They’re in a very competitive market place and they turned into ‘trip over TV’ rather than a destination TV channel,” he commented. One of the reasons Channel 6 struggled to get viewer numbers up to target was the launch of Living TV on cable around the same time as Channel 6.
‘‘Living was providing fresher shows and bigger shows such as Top Model,” said one advertising insider.
In the past year, Channel 6 was linked with new equity investors and a possible deal with UPC parent company Liberty Global. Theses deals never happened. Meanwhile, the station’s initial investment has been running low and a new injection of cash was needed if the station was ever to meet targets.
Now it falls toTV3 to bring Channel 6 up to speed. Looking at the deal from the TV3 perspective, owners Doughty Hanson need to bump up their portfolio in order to make the acquisition of TV3 bring returns.
TV3 was bought at the top of the market, costing Doughty €265 million. It needs other media assets to bolster this investment and sell it, as planned, over the next three or four years. TV3’s attempts to buy radio stations such as Today FM and FM104 failed as rival bidders were willing to stump up more. This deal, which is a TV3 deal financed by Anglo Irish Bank, gives TV3 instant access to a new station for a modest investment.
Media insiders believe little money has changed hands in theTV3/Channel 6 deal given the smaller station’s low recognition levels and loss-making status. However, its backers will get a better return on their investment if TV3 and the Channel 6 staff can bring the company into the black.
TV3 chief executive David McRedmond made a strong case for TV3’s interest in Channel 6. ‘‘We decided when we were looking at strategy for TV3 it was very clear that we would need to be multi-channel. We have to be, with the growth of digital television,” he said.
This multi-channel approach has worked for Channel 4 and ITV in Britain.
‘‘We have a very large audience, but that audience will leave us at various times after programmes, and will go to digital channels, whereas previously they might have gone to RTE or a UK channel. So, we need a digital channel,” he added. ‘‘Channel 6 is an accelerated route to achieving that.”
To set up a new station,TV3 would have to acquire rights and secure distribution on UPC and other platforms. However, that would take time and this way, TV3 gets a new station instantly.
‘‘This is quicker route and we believe economically, commercially a better route,” said McRedmond.
A long-standing issue for Channel 6 has been its low placing on Sky’s digital numbering system. While RTE and TV3 are the top stations on Irish electronic programming guides, Channel 6 is lost among the digital clutter due to its low number. McRedmond said he would like to improve this position with Sky.
‘‘One of the problems with Channel 6 is that people simply don’t know it’s there. We can cross promote on TV3 would take time to secure.
Other benefits from TV3’s point of view is the fact that Channel 6 has listings in the national press, which is something a newTV3 station could expect to achieve, although this could take time.
Although Channel 6’s audience is small, they do still have up to almost 1 per cent of share ‘‘which is probably half way towards where we want to get to,” added McRedmond. ‘‘If we can get something that’s already half way there rather than starting from scratch, that always helps’’.
McRedmond then wants to make a number of changes to bring Channel 6 under the TV3umbrella,themost important of which is ‘complementary scheduling’.
At the moment TV3 will show Coronation Street and then a sports programme. This means that the female audience captured by the soap is lost to other channels.TV3 can flag that a female-friendly show is due on Channel 6, directing some viewers to another station in the fold.
A name change for Channel 6 is possible but at the moment all McRedmond will say is that he wants to make sure the brands are ‘‘slightly more closely aligned.”
‘‘We will keep the identity of the two separate but we will make sure it’s obvious to viewers and advertisers that it’s the one company,” he said.
TV3 will increase the level of Irish programming on Channel 6 and that will mean usingTV3 studios and news facilities. Programmes TV3 gets under its deal with ITV such as XFactor Xtra may be shown on Channel 6.
McRedmond would not comment on financial dimensions of the deal butTV3 is understood to want Channel 6 revenues to increase to around €5 million over the next two to three years, in line with the station’s original targets. There is little cost-cutting which can be done although moving the Channel 6 operation toTV3’s location is likely.
TV3’s gamble will be that it can increase audience numbers - but in an increasingly competitive TV market, all viewers will be hard won.

Elmo

TV3's logo sucks. Looks even worse when beside the better looking 6 logo.

I think C6's is a typical Channel 6 logo.

http://images.google.ie/images?gbv=2&ndsp=20&hl=en&q=Channel+6+logo&start=0&sa=N

Elmo

At the moment TV3 will show Coronation Street and then a sports programme. This means that the female audience captured by the soap is lost to other channels.TV3 can flag that a female-friendly show is due on Channel 6, directing some viewers to another station in the fold.

This doesn't happen TV3 doesn't show sport after coronation street. Maybe with the new champions league.

It will be a pity to see C6 become ITV2.

scath

How about 3's logo changed for the stair step look to the blue dot in the middle of the 3 and the top and bottom curls in green meeting at the blue centre dot and xpose in red writing after 3? or simply dump the 6 logo and over a month morph the 6 into three expose then after a month 6 disappears?

Elmo wrote: »

I think C6's is a typical Channel 6 logo.

http://images.google.ie/images?gbv=2&ndsp=20&hl=en&q=Channel+6+logo&start=0&sa=N

Elmo

Like TV3 NZ's old logo?

http://www.brandsoftheworld.com/brands/0002/2105/brand.gif

MattEmulsion

watty wrote: »

BBC & C4 don't get any Irish Licence Fee money for UK.

Yes they do - look at the allocations of BCI Sound and Vision funding on their website www.bci.ie

MattEmulsion

Elmo wrote: »

Incorrect C6 produced Cois Farraige with aid from the sound and vision fund. City Channel, DCTV, setanta etc have access to the fund.

A single exception that the BCI allowed through on a technicality, but since then they have not been allowed to apply. DCTV and City qualify under the Community TV scheme and Setanta have the ability to unscramble their signal on satellite (qualifing as free to air - a bit like the uncensored previews for the adult channels on Sky!) So if you realy want to see a Sound and Vision funded programme on Setanta and dont have cable or satellite, you can go buy and install one of the dishes from lidl and wait for them to unscramble the signal and this in the BCI's book counts as free to air!

Therefore C6 still are the only indigeneous broadcaster (or BBC/Channel 4) blocked from the scheme, which doesn't make sense in my book. Instead of the government forcing channels to make programmes of certain genres why not make the funding of programming easier - maybe we'd get more channels as well as programmes that way as well!

Elmo

I beleive watty means that that BBC NI produce programmes of interest for the Island of Ireland rather then programming for the UK i.e. Britian and Northern Ireland.

I didn't think C4 had applied for the scheme. I could be wrong. I am.

Blast Films received money for a film called "Hunger", which I am sure comes under the terms of the fund, it was accompanied by a letter from Film Four.

Channel 4 and BBC have over the year produced many co-productions with RTE.
For example Echoes, Family and The Irish RM. The have also produced many programmes which are quiet twee and made for a british audience e.g. Rough Diamond, BallyK and the Ambassidor. Both C4 and BBC are semistate bodies.

watty

C6's youth Formula?

Youths don't watch TV anymore.

Elmo

C6's youth Formula?

Youths don't watch TV anymore.

Well at least they know, since they have a fairly good website with forms and stuff. I must become a member. And start giving out about TV3.

The sad thing is TV3 are only now get around to produce a website.

www.tv3.ie v www.channel6.ie