Simon Bazelgette, CEO of Music Choice Europe (MCE), has said he is in advanced discussions with Kirch Group’s Premiere World bouquet. MCE was dropped from DF1 earlier this year.

"It is not contractually finalised yet but we are 95 per cent certain we will be back with them early next year in extended basic," said Bazelgette. "We have just hit two million subscribers across Europe, indeed probably 2.5-2.75 million based on sales figures, but we are on platforms that reach around four million digital homes." MCE had hoped to be able to use the operator’s customer service agents to tele-market MCE but the demands on their own installations have meant postponing those promotion plans. "Overall we have doubled subscribers in the past six to eight months," said Bazelgette.

He said MCE has around three to four per cent of Sky Digital subscribers taking the full MCE offering. "While the income from premium subscribers is less than we would have hoped for at this stage, effectively the higher numbers coming from basic services have helped boost the overall figure," he said.

Bazelgette said MCE’s 2000 plans included offering basic-tier channels in France and added coverage in Germany. France’s TPS currently only takes a premium service but MCE is in discussion with the platform to add a basic selection of channels to the bouquet. On this basis Bazelgette said MCE’s breakeven will occur late next year or in early 2001. "Finding new channels to add to the service is easy, but for most people they are still coming to terms with our 50 channels, so to upgrade to 80 or 100, which will happen over time, is not for next year."

MCE is about to add interactivity and retailing (via Open…) to its on-screen options. "Three or four years from now the way people will look at us will be completely different. Interactivity will be such an important part of the service…which gives us a powerful brand opening up e-commerce and advertising opportunities," said Bazelgette. He added that one view suggests that over the next three to four years subscription income "will become a minority of our revenue."