Diana, a long answer your question, but I too am awaiting malloy's input on how a tv network is started... I believe that by using Intelsat's satellite Qtv can make their programming available in BOTH markets- via paid subscription and also via 3rd party cable carriers. the problem is they would need to control the scope of their signal. Read below for how I think they could achieve that.
Paid Subscription is like a market test for Gay TV. If Frank is smart, he's already agreed to sell Q's original programming to Logo once the Qtv launch is successful. Logo did state that they would initially be running "acquired programming" and, if that deal was made, it would mean dual revenue sources for Qtv.
I think all Gay TV pioneers realize that they are moving mountains and will only succeed thru teamwork. In this particular market competition will be healthy.
Q doesn't have the big guns to get noticed, so Viacom breaks ground for them, allowing Q to take the initial heat (not tv advertisers, as it would certainly turn them away quickly). They both know that activist groups can't stop/censor a paid subscription channel, so it paves the way for gay tv in everybody's interest.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
I have my own hypothesis, complete guesswork based on my DD, that I eluded to earlier. I still believe that Pridevison, a network that was sold to an unnamed party and whose operations were purchased for $2.6 mil by a guy who holds the patent on iWall technology, has a silent part in Qtv's operations. The iWall technology would allow Q to broadcast specific content via satellite to specific cable carriers and subscribers. It would also allow for broadcasting via the Internet. I can't think of any other reason someone developing iWall would be intersted in a gay tv venture.
As far as Intelsat being for sale, any company wishing to acquire gay tv programming (such as Viacom has stated they plan to do for their Feb 2005 launch) could simply acqure the satellite and take control of all contracts and programming being broadcast (they wouldn't need to purchase all of Intelsat). A business transaction of this nature would allow for Qtv to continue operations as a paid subscription channel while maintaining any contracts they have in place with cable networks. And it would found an International Broadcasting Satellite exclusively for gay television programming.
My guesses are all based on the following facts, which I posted in previous threads:
From the Headline Media Group website, of which Pridevision is a subsidiary:
--> In December, 2003, PrideVision Inc. entered into an agreement to sell the Canadian operations of PrideVision TV. As part of the transaction, which is subject to approval by the CRTC, PrideVision Inc. will retain the rights to develop PrideVision TV outside of Canada, and a 9.9% interest in PrideVision TV’s Canadian operations.
And Annual and Special meeting of Shareholders report 2003 (dated Feb 26, 2004):
--> objectives: Find a partner for Pridevision USA: No partner yet.. still working on this objective.
--> Pridevision's SALE should generate a gain, projected for 2004
--> ...In addition, we continue to be excited about U.S. and international growth prospects for PrideVision TV, as we look to secure a strategic alliance to facilitate a launch of the service in the United States."
--> "... Patrick Michaud, Executive Vice President and Chief Financial Officer. "During the past year, we completed two equity financings, improved EBITDA by $29.4 million, and --> successfully <-- found a partner for the Canadian operations of PrideVision TV.
--> On Friday, April 09, 2004, in a PR, John Levy, Pres of Headline Media Group, stated: Pridevision signed a contract with cable distributor Time Warner in early 2003 that grants access to its cable systems in the U.S., but Pridevision does not plan to “launch in all of the markets simultaneously,” Levy said.
Instead, the gay station would most likely start off as a premium channel in which subscribers pay $7 to $10 per month, or have it packaged with other offerings like HBO or Showtime, Levy said.
Because Time Warner distributors do not cover every market in the U.S., Pridevision is now negotiating for a contract with both Direct TV and EchoStar, parent company for DISH Network, Levy said.
“We’ve had talks with both, but we’re further down the road with EchoStar,” he said.
If Pridevision secured a SATELLITE DISTRIBUTION DEAL, “it would give us availability in all markets in the continental U.S.,” he said.
--> CONCERNING iWALL and Pridevision:
Bill Craig, via a company he controls, bought Pridevision's operations- not rights to their program development- for $2.6 mil in December 2003. As stated, Pridevision retained their rights to develop programming outside of Canada & a 10% interest in Canadian operations.
Bill Craig started an unsuccessful television network broadcast on broadband around 2000. It had issues with copyrights, namely that they were redirecting television broadcast signals without paying the original broadcaster.
*** He developed software called iWall which can control the broadcast area of a signal and determine the coutry of origin.***
Stated in the NY Times (June 2, 2000 - Toronto):
--> The iWall system uses "third party" techniques similar to those used by satellite television transmissions that can be received in the United States but not in Canada, Mr. Craig said. The software will be able to identify where a viewer is located and block those computer users in the United States. He said he would not discuss the software in more detail while the copyright was pending.
We've all questioned the reaction of anti-Q people and guessed that by making Qtv a subscription channel they can avoid the FCC censorship.
I question if this iWall software can be used to control the signal broadcast of Qtv (I know nothing about how tv signals work) and can, PERHAPS, also determine the country of origin where the person is watching?
They do seem to be aligning themselves for International broadcasting.
And if Bill Craig still (he must) have the 2.6 mil ownership of Pridevision's operations,, this could bring his business endeavors together.
-> As a matter of fact, Bill Craig states in an interview:
--> Q: Are there pay-per-view or subscription models possible with this?
A: Oh yeah, if we pull this off, it's going to dramatically alter program distribution on the Internet. Now the conventional programming is going to get on because the problem even Jack Valenti's people had was, as soon as you go over the Internet, it's all over the world. So they're being dumped into a market, they don't want to be dumped into. So they want to have some level of control, so we are proposing to give them that control. With that control they will have an amazing ability to start exploiting the distribution of their service to certain countries. So in other words, a CBS can go on ICAN and distribute their programming to just inside the U.S. Because in the past, the rights holders say "No no no, you can't put it on, because it'll be up in Hong Kong." Well this system will get rid of all of that.
--> AND THE SATELLITE INFO:
--> Q "will broadcast its signal on Intelsat America's 7 at 129°W on channel 1."
--> Loral Space & Communications went bankrupt and was acquired by Intelsat. They just finished their reorganization and Intelsat was about to have an IPO, which they abruptly cancelled on May 21st.
Now Intelsat is for sale and looking for a merger.
--> Here's the latest Intelsat PR:
Reuters
UPDATE - Intelsat pulls IPO, starts merger talks
Friday May 21, 3:13 pm ET
NEW YORK, May 21 (Reuters) - Intelsat Ltd., the No. 2 satellite operator, on Friday said it withdrew its planned initial public offering and said it would resume talks with potential buyers.
Bermuda-based Intelsat said it hired Morgan Stanley (NYSE:MWD - News) and Merrill Lynch & Co. (NYSE:MER - News) -- the same banks that were to lead the IPO -- to explore a sale of the company, which would come amid a spate of consolidation activity in the satellite sector.
Industry watchers said Intelsat could fetch up to $1 billion in a sale with likely buyers including leveraged buyout firms that have recently been active in acquiring satellite assets. While the industry is hampered by overcapacity and sluggish growth, it produces steady cash flow that can be borrowed against to finance LBO deals, they say.
"Private equity firms will look at buying Intelsat but the capital markets will have a significant influence on what price they are prepared to pay," said William Collatos, general partner of Spectrum Equity Investors, a buyout firm that specializes in media and telecom investing.
The market for high-yield financing that underpins most large deals, he noted, "is getting tougher" and Intelsat is already carrying a large debt load.
Intelsat, whose 27 satellites carry voice, video and data traffic, generated sales of $953 million and net income of $181 million in 2003. Lockheed Martin (NYSE:LMT - News) holds a 24 percent stake, while France Telecom and India's Tata Industries each hold 5 percent.
But Intelsat faces challenges from landline transmission and must service debt of $2.3 billion at the end of 2003, of which $1.1 billion came with the acquisition of North American satellite assets of bankrupt Loral Space & Communications (OTC BB:LRLSE.OB - News), which closed in March.
NEW OWNERS IN SATELLITE SECTOR
Among others in the sector, Inmarsat, which handles marine, aviation and military communications, last year was bought by LBO firms Apax Partners and Permira, while PanAmSat (NasdaqNM:SPOT - News) recently agreed to be bought by Kohlberg Kravis Roberts & Co. And New Skies Satellites (NYSE:NSK - News) recently put itself on the block and is attracting private-equity buyer interest.
Intelsat said previously it had been in talks with potential buyers, but said in recent weeks that it canceled the talks to hold an IPO as required under the so-called Orbit Act. The law requires formerly government-owned enterprises like Intelsat and Inmarsat to broaden their shareholder base.
However, Intelsat said on Friday that it won an extension to the Orbit Act to as late as December 2005, allowing it to resume merger talks.
Intelsat said it is awaiting a ruling by the Federal Communications Commission in an action brought by Inmarsat that would decide the issue of whether a sale of the company constitutes broadening its shareholder base and complies with the Orbit Act.
MY INTERPRETATION:
Pridevision clearly states in Dec 2003 that they are looking to sell their network. In Feb 2004 they confirm that they have entered into an agreement to sell to a partner. They never name the programming partner but confirm the sale of operations to the iWall software inventor.
Frank Olsen gave his first PR on Feb 19th. He began production of the gay marriage documentary Feb 25th. He climbs out of the woodwork and starts spending money, obviously knowing he has some kind of prospect for broadcasting.
Pridevison's programming was aired on Qtv's signal test.
This could answer a big question as to how Qtv plans to come up with a lot of quality programming really fast.
This could be the "acquired programming" that is licensed to launch Logo.
Links: http://www.headlinemediagroup.com http://www.pridevisiontv.com/
--> Pure speculation, but I like to try to get the pieces to fit. And coincidentally, Intelsat's pps is climbing at the very time it is downgraded by investor's services <--
~BB