Business Services Industry
RTL, RTL II, Super RTL, VOX, RTL NEWMEDIA and PrimaCom In Digital TV Cooperation
Business Wire, Feb 1, 2001
Business/Technology Editors
MAINZ, GERMANY--(BUSINESS WIRE)--Feb. 1, 2001
The channels RTL, RTL II, Super RTL, VOX and RTL NEWMEDIA have concluded a preliminary agreement with the broadband network operator, PrimaCom AG (Neuer Markt Frankfurt, "PRC"/ID No. 625910; Nasdaq: PCAG), covering a wide range of initiatives, including digital TV and other new media. The pending legal cases in Leipzig concerning the digital distribution of RTL II, Super RTL and VOX exclusively in digital format on PrimaCom's networks will not now proceed.
PrimaCom customers who have digital connections will be able to enjoy the full interactive digital range of RTL WORLD in addition to existing offers such as Digital TV, Pay-per-View, High Speed Internet and, in the future, telephony.
Ingrid M. Haas, company spokeswoman for RTL: "Networking of TV and the Internet will become increasingly important for the success of programme formats because nowadays the viewer has come to expect a greater number of interactive elements. We have a proven track record in this area which enables us to offer the cable network companies - and not least the customer - highly attractive and innovative media packages."
Alexander M. Hoffmann, company spokesman for PrimaCom: "We are pleased that through the collaboration with RTL we have come a little closer to our shared vision of an interactive media world. We are on the right track. The symbiosis of an innovative broadband cable network provider and a professional content provider further optimises the interactive package available to our customers."
Initially, PrimaCom will simulcast in the programmes of RTL, RTL II, Super RTL and VOX into their broadband networks in both analogue and digital formats up to 31st March 2002. These programmes will be available to PrimaCom customers within the basic TV package "primaTV" as part of the RTL palette, which also includes RTL NEWMEDIA services. PrimaCom and RTL will swiftly negotiate a final carriage agreement.
About PRIMACOM (Neuer Markt, Frankfurt, PRC ID No. 625910 and
Nasdaq PCAG)
PrimaCom currently passes more than 1.8 million households and has approximately 1.3 million customers in Europe. In Germany, PrimaCom has approximately 1 million customers, making it the fourth largest private network provider. Of the 1 million subscribers approximately 11 percent have been upgraded and are two way capable. A further 320,000 households are connected in the Netherlands; serving around 300,000 customers via an already fully upgraded cable network. PrimaCom provides customers with multi-media services via its own broadband cable network. In all, approximately one third of the PrimaCom networks have been fully upgraded to the latest broadband technology. In Leipzig, Chemnitz , Magdeburg, Aschersleben, and Naumburg PrimaCom already offers 109,000 households attractive high speed Internet access at a flat rate via its own PrimaCom portal. Leipzig and the Netherlands are being served with approximately 80 digital TV programmes and other interactive services such as Pay-per-View TV, and this is soon to be extended to other German cities. With the introduction of digital television PrimaCom has introduced a range of interactive services that use a set-top box as a platform. PrimaCom continues to develop as a multi-media communications company.
About RTL
Last year RTL was the number-one-channel for German viewers, especially for the 14 to 49 age group. RTL has held this position for eight years in a row, ensuring that it remains a prime target for advertisers. RTL has also retained pole position with viewers overall - a position shared in 2000 with the public broadcaster ARD.
RTL is Germany's largest advertising medium. In 1999 the company saw record pre-tax revenue of DEM 368 million. RTL's success is built on an exceptionally broad offering that covers a wide range of programmes from news, magazine shows, sports, daily series and in-house film productions to feature films, variety shows and comedies.
In keeping with the spirit of the company motto "RTL - A World of Entertainment", through its promotional strength and the high-profile programs RTL has become the leader in German- language Internet services (www.rtl.de).
RTL Television is a wholly owned subsidiary of the RTL Group, Luxembourg, Europe's leading Broadcast and Content Powerhouse.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including PrimaCom's absence of an operating history for its merged operations, its possible future need for additional financing, competitive factors and restrictions imposed by existing and possible future debt instruments.
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