In a controversial move, German media company Kirch Group has decided to cancel all contracts with third party channels that have been using its digital DF1 platform with effect from September 30, 1999 (as initially reported in Interspace 672).

Only some of the channels are expected to become part of the new Premiere World package that launches on October 1 incorporating both DF1 and Premiere. Sources familiar with the situation described the decision as an aim by the Hamburg-based platform operator to "sharpen its profile" and "focus on additional value". Thus, there will no longer be a space for channels that are available elsewhere as free-to-air services. The comments refer to channels such as MTV Germany, VH-1 Germany, NBC/Giga TV and CNBC which are currently part of DF1 despite being available as unencrypted services on other platforms such as the Astra satellite system or Deutsche Telekom’s cable network. In contrast with DF1, its successor Premiere World wants to offer mostly exclusive content, the source added.

It remains unclear what will happen to pay-radio service Music Choice which has been offering 30 non-stop music channels on the DF1 platform. A spokesperson confirmed that the contract was cancelled – just like the contract of BBC Prime. A spokeswoman explained that it has received a "notice of termination" from DF1, but she affirmed that BBC Prime was confident that "a solution" will be found. Sources at Premiere however revealed that the chances of the UK-based entertainment channel becoming part of the new platform are very low. Discovery Channel Germany will most probably remain within the bouquet, as it is half owned by Kirch Group itself.

Interspace’s sister publication Cable Europe obtained a preliminary working paper which indicates the structure of Premiere World’s bouquet (a Premiere source said the final allocation still has to be fixed). The source confirmed that there will be three package options: Premiere Family World, Premiere Movie World and Premiere Sports World. The family package which offers entertainment channels including the new German Disney Channel, according to the paper, will cost around DM35 (Pounds 11.69) monthly including rental for the d-box receiver/decoder. The Movie package will cost an additional DM25. It will include Studio Universal, the movie channel which Universal Studios Networks Germany launches on September 1. The sports package, which offers Formula One, Tennis and Bundesliga live coverage, costs DM5 more, meaning that subscribers to all three packages will have to pay around DM65 monthly.

Kirch Group will get support from Deutsche Telekom to extend the subscriber base of Premiere World. According to industry sources, Telekom will market the new service package to its 18 million cable subscribers and in its T-Punkt consumer shops which are present in all larger German cities. In return, the Bonn-based company is to receive a fixed part of the subscription revenue of each subscriber it managed to acquire, possibly as much as 25 per cent. The final contract between Telekom and Kirch Group is expected to be signed soon. The marketing will be handled by Telekom’s sister company Media Service GmbH which was founded last year for the marketing of pay-TV channels and other services using Telekom’s cable network. A Telekom spokesman confirmed talks with Kirch Group, but declined to give further details. He said that no contract has been signed so far and that Telekom is also negotiating with other content providers.