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M7 Group buys CEE platform CS Link
February 16, 2011 M7 Group, owner of four satellite pay TV platforms covering the Benelux and Austrian markets, has acquired from media group GES a Czech-Slovak satellite TV player, CS Link. The price of deal remains unknown. M7 Group owns Canal Digitaal (the Netherlands), AustriaSat (Austria), TV Vlaaderen (Belgium) and TéléSAT (Belgium and Luxembourg) with a combined subscriber basis exceeding 900,000. Following the launch of AustriaSat in October 2010, M7 Group enters two more markets where satellite TV holds a dominant position (unlike Belgium and the Netherlands where cable remains by far the largest platform). CS Link's business model, as a pre-paid satellite TV service, is similar to AustriaSat's, although AustriaSat offers its pay TV package on top of subscription-free service from ORF Digital Sat, whereas CS Link sells its own cards, with alternative free-to-air encrypted channels, with pay TV as an optional add-on.
With relatively high free satellite penetration in Austria (about 40 per cent of homes) AustriaSat, which is the only satellite player there targeting the low-end market, may hope for a good growth. In Czech Republic and Slovakia, however, CS Link has to face strong competition from four other satellite players, three of which are also providing low-budget offerings and one (SkyLink) actually also offers a pre-paid business model. With the pay-TV experience of its new investor, CS Link may enhance its offerings, also trying to differentiate away from the other players. Interestingly, CS Link's main competitor, SkyLink, is cooperating with M7 Group's Canaal Digital, from which it sources some channels (e.g. HDTV Bravia, Discovery HD Showcase). It is likely that in result of the acquisition these channels will be available also for CS Link's subscribers, paving way to more HD channels in CS Link's offer in the future (currently there are no pay HD channels in its offer). Tags:
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