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Cable television broadcasting industry

American Television Interests Eye European Expansion

Strategic Insights

— 2 min read

American television interests, led by ABC, are poised to capitalize on the burgeoning European TV market, which has transitioned from state-owned to commercial television. The ABC Cable President, Richard F. Spinner, announced plans to expand the network's presence in the region, citing the company's existing interests in production companies in four European countries. Capital Cities/ABC Inc. has a significant stake in European production companies, including Hamster Productions, and is eyeing further expansion through partnerships and acquisitions.

Key Takeaways:

  • American television companies, including ABC, NBC, Time Warner, and Viacom, are investing heavily in European TV expansion, with a focus on commercialization and cable television.
  • ABC has a significant presence in European production companies, including Hamster Productions, and is planning to expand its operations in the region.
  • Other American companies, such as NBC, Time Warner, and Viacom, have already established a foothold in European TV, with investments in networks like MTV Europe and the NBC Super Channel.
  • The European TV market is estimated to represent 350 million viewers, with a growing advertising market driven by cable TV viewers.
  • American companies are exploring potential investments in Chinese TV and television in other Asian areas, as well as expansion in Latin America.
  • The influx of American investment in European TV has attracted significant advertising interest, particularly from companies targeting the upscale market represented by cable TV viewers.

Statistics:

  • 350 million: the estimated number of viewers in the European TV market (east of Russia)
  • 60 million: the number of viewers for MTV Europe
  • 30 million: the number of homes that have access to the NBC Super Channel
  • $500 million: the amount invested by Tele-Communications in cable programming networks and systems in France, Britain, Ireland, Sweden, Norway, and Hungary
  • 25%: Disney's stake in the GMTV network in Britain
  • 75%: the percentage of ownership held by American investors in Czechoslovakia's first privately owned television station

Sources:

  • FREDERICK M. WINSHIP UPI Senior Editor NEW YORK, Oct. 19 American television interests are planning to cash in on European TV expansion into commercial television after years of state ownership and take the leading role in globalization of the TV industry.
  • ABC Cable President Richard F. Spinner: 'There will be a very full broadcasting business in Europe before too long and ABC, for one, intends to be part of it and hopefully a significant part of it.'
  • Capital Cities/ABC Inc.: own one-third of the stock of Hamster Productions and have a significant stake in three other production companies in Britain, Germany, and Spain.
  • Viacom: established MTV Europe several years ago and linked its Nickelodeon network to British Sky Broadcasting.
  • NBC: acquired a pan-European network last fall and calls it the NBC Super Channel, available in 30 million homes.
  • Thomas S. Rogers, president of NBC Cable and Business Development: 'Jay Leno is getting very good word of mouth in Germany.'
  • Time Warner: started a pay television service in Europe, invested in cable stations in Hungary, and is discussing development of a national broadcast network in Poland.
  • Tele-Communications: invested $500 million in cable programming networks and systems in France, Britain, Ireland, Sweden, Norway, and Hungary.
  • Disney: owns 25% of Britain's GMTV network and is producing children's programming for major broadcast networks in Germany, Italy, France, and Spain.

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