Nagravision, a Kudelski Group company, will work with Korean DTH pay-TV provider SkyLife to expand SkyLife’s 3-D TV offerings, the companies announced.

SkyLife launched the Sky 3D channel in January and recently announced an investment of 5 billion won ($4.4 million) to extend its 3-D activities. SkyLife plans to begin producing a variety of 3-D content beginning in May, focusing on live sports and concerts. SkyLife also wants to add two more 3-D channels by 2012.

As part of its 3-D initiative, Nagravision has developed a content sourcing and distribution operation and is licensing original content, including full features, sponsored and short form programming to SkyLife. Nagravision also will provide SkyLife with a full push-video-on-demand solution, enabling SkyLife to offer a new service called 3D MRS (Movie Rental Service), which is expected to be available in 2010.

"We are more than aware that our only path to continued success lies in providing customer satisfaction through quality content and quality service. To that end, we continue to partner with companies like Nagravision that can enhance our services and help us remain competitive in the digital media industry," said Lee Mongryong, CEO of SkyLife. "Nagravision has proven to be an exceptional partner. With their a unique expertise in the 3-D end-to-end production chain as well as on the 3-D technology made available to us, our subscribers will benefit from the expanded relationship of our two companies."

The 3-D deal follows a February agreement for Nagravision to provide its Nagra Media Access conditional access system to SkyLife. "SkyLife is the most innovative pay TV operator in the field of 3-D services. They’ve become a trendsetter in the market by providing their subscribers with new content choices and exceptional service quality," said André Kudelski, Chairman and CEO of Kudelski Group.

SkyLife has 2.5 million subscribers, and according to Lee, more than 70 percent of those subscribers have expressed interest in 3-D content, and more than 10,000 3-D-capable TV sets have been sold in Korea in the past month, in part due to excitement over the World Cup, which begins in June in South Africa. TV manufacturers LG and Samsung are jointly promoting the 3-D channels with SkyLife, Lee said.

While there will be 3-D opportunities around the globe, “Korea is a real laboratory to make [the 3-D market] happen,” Kudelski said. Nagravision also will provide services for converting 2-D content into 3-D, he said.