[Satellite News 05-19-09] Tivu Sat, a new free-to-air (FTA) digital satellite TV platform, hopes to make a strong impact in Italy, with a population of close to 60 million people, Tivu CEO Alberto Sigismondi told Satellite News.
    Sigismondi said he would be happy if the company met its initial target of 300 – 400,000 households in the first year, said Sigismondi.
    “We think that around 5-6 percent of the population with insufficient coverage might be interested in having access to Tivu Sat. We believe there is a potential target market for Tivu Sat of 1.5 million households. It is also true that there are people who are obsessed with satellite and having a satellite dish on the roof. They might be interested in getting Tivu Sat. So, the number could grow to two million households by 2012,” said Sigismondi.
    Tivu, a joint venture between Italian broadcasters, RAI and Mediaset, as well as Telecom Italia Media, has similarities to the Freesat service launched in the U.K., as it is meant to offer households who cannot access Digital Terrestrial Television (DTT) a satellite alternative. Satellite already has a strong presence in the Italian digital TV market, with Sky Italia maintaining 4.8 million subscribers at the end of March this year and becoming one of the fastest growing DTH platforms in Europe’s major markets.
    Tivu’s service is also likely to see a dramatic increase in the number of channels on the platform after its June launch, according to Sigismondi. “Tivu Sat will have the same offering we have on DTT. There will be around 30 channels. We will be happy to add new channels. We will probably double that number of channels in a few months, I think,” he said.
    Sigismondi outlined the importance of having a satellite element to the DTT. “The satellite component enables us to reach people who were not covered by DTT. The shareholders of Tivu, which operates Tivu Sat, want to provide total coverage in Italy. It is strategic to widen the coverage of FTA channels. With satellite, we can reach areas not presently covered. And we don’t have to spend a fortune to do it,” he said.
    The expansion of HD services on Tivu may be launched on the platform as early as 2010, but will not be initially included, according to Sigismondi, who said the subject is still the center of an ongoing discussion. “We will start [the service] with MHP middleware in the box and an EPG. The box will cost less than 100 euros ($132.17). It will be an SD box. I think it will be at least nine months from now until you see any kind of HD Tivu Sat set-top box. But, this very much depends on the numbers of HD channels that come into the market. We have to see what their (broadcasters) plans are. But, I think you will see broadcasters start HD services next year on satellite. It could then become one of the features of the platform,” he said.
    The service will initially offer households a digital TV service without a monthly subscription charge. However, Sigismondi said there could be pay-TV services on the platform in the future and that a Conditional Access (CA) system, developed by Nagravision, featured on board makes that direction possible.  “It has been conceived as a FTA tool, but it also has a Conditional Access CA system to encrypt FTA content out of Italy, and a double smart card reader. So, it is up to players in the arena to start a pay-TV service or not. Our goal is FTA, but this would not prevent people who are present on the platform from having a pay-TV service. But, in the end, it is not Tivu Sat’s business to launch a pay-TV service itself,” said Sigismondi.
    However, while the launch of the service takes Italy’s move to digital even further, Sigismondi has modest ambitions for the service. “I don’t think Tivu Sat will move mountains in Italy, but I think it will be a very nice complement to DTT. This is what we want to do. Our main core platform is DTT. But, it is also true that we need more platforms to distribute FTA content. Satellite is a good means to do this. Tivu Sat is a way to reach customers that are just interested in FTA television. We could also gain interest from Sky Italia subscribers. I am hoping Tivu Sat will have a good impact on the market,” he said.