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Sunday 19.11.2017 | Name days: Liza, Līze, Elizabete, Betija

Kiršteins doubts Lattelecom could lose many of its customers

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe rise of costs that has forced Lattelecom to refuse the broadcasting of TV3 in interactive television was most likely caused by Media Times Group’s lack of understanding of interactive television as a form of content supply, believes Baltcom TV Board member Gints Kiršteins.

There have been complications in talks with MTG. Proper communication was made even more complicated by the fact that all decisions are made in the company’s homeland – Sweden. Kiršteins believes that MTG is limited in its understanding in regard to modern interactive television, which can be accessed from different tablets and smartphones. This is why there have been complications with TV3 broadcasting for Lattelecom customers.

Recalling his experience in Baltcom TV, Kiršteins mentioned that in his work on the company’s interactive television system, he did not really understand the requirement from MTG in regard to the inclusion of advertisement archive broadcasts. This requirement is incomprehensible because the company already pays an additional amount for the rights to keep its broadcast contents in an archive for a fixed period of time.

The growing proportion of interactive television may affect the requirements of advertisers. As it is known, interactive television allows viewers to watch their favourite shows with a slight delay, which allows them to skip all the ads. Archive broadcasts provide similar functionality – viewers have complete control over playback.

Baltcom TV public relations specialist Gunta Līne confirmed that no new contract has been signed with MTG. Instead, it was decided to extend the current one for two more months.

Even though Baltcom TV has already developed its own interactive television system, it is unlikely that it will be implemented within the next couple of months. Kiršteins allows for the possibility that by introducing interactive TV, Baltcom may end up in a situation similar to that of Lattelecom.

The degree of tension between Lattelecom and MTG depends on two possible scenarios, he said.

One possibility is that customers may leave Lattelecom due to the cancellation of TV3. This may force the company to accept strict conditions of the contract. Kiršteins doubts that this scenario is possible. He adds by mentioning 2009, when TV3 was absent from Lattelecom’s interactive TV package. This did not cause a massive outflow of customers.

The second scenario does not imply Lattelecom may lose many of its customers. However, MTG will likely lose a large portion of its audience and be forced to back away.

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