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Disney to launch a terrestrial channel in Russia
November 01, 2011 Disney is to buy 49 per cent of Russian terrestrial channel 7TV from broadcaster UTV for $300m, following a meeting between Russian Prime Minister Vladimir Putin and Disney's CEO Robert Iger. The deal has been already approved by the competition office. Following the acquisition, 7TV will be replaced by a Disney family channel broadcasting in Russian language under the Disney brand. The launch is expected in the first quarter 2012. It is planned that by the time of launch the channel will be available in 54 major cities in Russia, reaching about 75 per cent of the population. Although the official reason given by the regulator in February 2009 seemed just a formality (that there was no formal agreement from 'other shareholders' allowing Disney to make decisions for the whole holding), Disney hasn't tried again with the market until now. Meanwhile, in summer 2009 the major shareholder of previous acquisition target Media-1, Ivan Tavrin, decided to merge Media-1 with AF Media Holding, comprising channels Muz TV and 7TV, to form UTV. AF Media holding was owned by Russian oligarch Alisher Usmanov - co-owner of one of Russia's largest mining-metal holdings Metalloinvest. In the media sector, in addition to shares in UTV, Usmanov also owns publishing house Kommersant, holds a stake in Digital Sky Technologies and Internet portal mail.ru. He also holds over 20 per cent of shares in Arsenal football club (via Red and White Holding, of which he owns in 50 per cent). From the merger of Media-1 and AF Media, UTV resulted, consisting of 75 per cent of Muz TV, 100 per cent of 7TV and all the 33 regional stations from Media-1. The deal was approved by the competition watchdog in February 2010. For its second attempt at launching a channel in Russia, Disney has brought out the big guns, and after the competition office's approval, its plans are now very close to realization. Interestingly, this time Disney wants to launch a family channel, as opposed to a children's channel (as in 2008). In 2010 it actually launched its main children's channel on Russian pay TV. There is already a Russian children's channel, the newly launched Karusel, a product of joint-venture between public broadcaster VGTRK and Pyervyi, available on DTT and via some pay networks. If the launch of Disney's proposed children's channel had been agreed, it would have competed directly with Karusel, and as a consequence has led to some suggestions that the authorities were trying to protect the nascent children's channel from competition from Disney. Tags:
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