In what is seen as a smart tactical move by industry observers, German media company Pro-Sieben Group has managed to gain valuable analogue capacity on the Astra satellite system (19.2 degrees East) for its 24-hour news channel N24, which is to be launched at the end of January 2000.

As no analogue transponder would have become vacant in time for the launch, Pro-Sieben has arranged an exchange deal with Teleclub. The Swiss pay-TV channel will hand over its analogue Astra transponder to N24 for the regular rent fee plus an additional fee amounting to an eight-figure DM sum. Teleclub will use the additional income to replace its subscribers’ analogue decoders with digital set-top-boxes in order to avoid losing viewers.

According to a report in a German newspaper, Pro Sieben’s chairman Georg Kofler originally intended to arrange a slightly different deal: He proposed to replace the 100,000 analogue decoders used by subscribers of the Swiss pay-TV channel with digital d-box receivers, developed by Munich-based media company Kirch Group. Kirch is the main shareholder in Teleclub. As part of the deal, Pro Sieben would have bought the 100,000 d-boxes for DM52 million (Pounds 17.7 million) from Kirch. Then the decoders would have been bought by Teleclub for only DM 22.5 million, to be paid in installments over five years. The new deal doesn’t directly involve the d-box, but it is expected Teleclub will opt for it in any case.