GlobeCast, which provides content management and worldwide transmission services, announced during IBC that it was acquiring French software company Netia, which offers software solutions for audiovisual content management. IBC e-Daily spoke with GlobeCast Chairman and CEO Christian Pinon about the acquisition and its expected impact on GlobeCast.

IBC E-daily: What will the Netia acquisition allow GlobeCast to provide to its customers?

Pinon: They develop software solutions exclusively for broadcasters and new media companies. This move for us is to bring more business to our value-added layer. Being more global is one thing. Obviously, we are a transporter of TV, but we also need to bring solutions that are innovative, and this deal enlarges our toolbox in that area. Eighty percent of our revenues come from distributing TV channels. It is a permanent business. However, it is a low value-added service — simply using fiber, satellites and teleports to distribute content.
The remaining 20 percent of our revenues come from the contribution business. This means taking some TV content from one location and bringing it to another location. As for that, we have to be more innovative and provide a full set of solutions from providing full live HD solutions using fiber and satellite to low-end solutions using IP distribution. We need to also ingest and store the content, generate metadata, etc. Buying Netia was the best way to develop innovative solutions for new contribution services.

IBC E-daily: What are GlobeCast’s main growth opportunities over the next 12 months?

Pinon: Last July, we closed an acquisition for a company in Hong Kong called Pacific Century Matrix, which is now called GlobeCast Hong Kong. That for us is a key move towards being more global. We have traditionally derived 90 percent of our revenues from the United States, the United Kingdom and France, but we want to be more present in Asia. This is a key priority. The growth of GlobeCast Asia is now more significant for us. We hope next year to get to the $50 million dollar mark in terms of revenues coming from Asia.

IBC E-daily: How is World TV, GlobeCast’s DTH bouquet of ethnic content, developing in Europe?

Pinon: World TV in Europe is growing but not up to our expectations. So we are considering options to bring more content from Asia and the Indian subcontinent to consolidate the ethnic content available in Europe. This would be a significant move. We are working out some options.

IBC E-daily: Why has it not performed as you expected?

Pinon: It is always difficult to have a new orbital slot recognized as a DTH source. It takes time. People are conservative. There are plenty of reasons to have a slower start than expected. In Europe, you have Hot Bird, Astra, as well as other orbital slots. It means that there are at least six or seven orbital positions over Western Europe from where you can broadcast content. It will be a step-by-step process in terms of orbital slots. We were very innovative in terms of choosing the orbital slot with Eutelsat, but it will take time to develop. Hopefully, we will be in a position to announce changes to World TV in Europe by the end of the year.

IBC E-daily: What is the significance of recent Verizon Fios deal and the launch of 14 of your international channels on this platform?

Pinon: It demonstrates that GlobeCast is evolving. It means that tomorrow, not only will we operate the distribution of content using a satellite platform, but we will also be the go-between — the gateway — to distribute content. We can negotiate with telcos. Our role, which used to be exclusively a technical one, will expand to become more commercial. We will bring the content from one location, say Asia, to another location like the United States Then we will select the most relevant channels for each platform. It can be IPTV, cable, satellite. For us, the Verizon deal is a symbol of our transformation. Not only can we physically distribute content, but we can tell our broadcasters in Asia or Eastern Europe, “Come with us, and we can introduce you to some major players in other territories who will take your content and increase your audience.”

IBC E-daily: What do you expect to announce more deals with telcos for World TV channels?

Pinon: The only one worth mentioning today is Verizon. For us, to launch with Verizon is to achieve a dream. This deal took time for commercial and technical reasons, but finally, we are on air. It is a marvellous reference going forward. I would say it is a matter of months before we sign a second deal with another reference telco. You have to understand that operators have constraints in terms of bringing certain types of content to subscribers. The access to the pipes is not always open. Verizon, for example, is cherry picking content from us. They are taking the ones they want. They are selecting the channels. They know their own demographics and where there might be demand for ethnic content. It can be a long process.