Video Age International October 2007

Carlo Sartori: RAI’s New Tsar It is officially known as the “RAI Worldwide Project,” but the awkward title is a temporary one, created by officials at Rome-based RAI, Italy’s state broadcast organization. According to RAI’s Carlo Sartori, the “project” serves to better define the role and tasks of the newly consolidated RAI division under which RAI will operate worldwide. This “new” division, called NewCo RAI International (and shortened to RAI NewCo), was originally created in 2003, but remained dormant until Sartori was appointed its president last August. Prior to this appointment, Sartori was president of RaiSat, a bouquet of RAI channels distributed via satellite on the SkyItalia platform. Within NewCo, RAI International — the radio and TV channel for expatriated Italians outside Europe — will have the most prominent role, as its flagship channel. The plan or “project” envisions the integration within NewCo of several RAI divisions currently operating in the international sector — such as RaiTrade (content sales), New York-based Rai Corp. (services), Rai Cinema (film production and distribution), in addition to RAI International and other channels, such as RaiNews24 and events such as PrixItalia (the oldest TV festival in the world). The RAI Worldwide concept is modeled after England’s BBC Worldwide, and could include other RAI entities such as RaiSat, RaiClick and RaiNet (computer-based Internet services). The most interesting part of the project (at least for North American audiences) is that it calls for monetizing all RAI broadcast channels currently broadcast in Europe (Rai1, Rai2, Rai3) through Eutelsat’s Hot Bird satellites. These channels (with the exclusion of RAI International) are now available in Europe via satellite, cable and IPTV (Internet protocol for traditional TV set viewing). The RAI Worldwide project also aims to make RAI International available in Europe (Italy included), and other RAI channels available outside Europe. DR’s Headquarters Spell Trouble Amidst an increase in foreign investments in the Danish media and the upcoming digitalization of airwaves, the Danish Broadcasting Corporation (known as DR) could be facing a crisis. But the source of the company’s financial woes is neither foreign investments nor the planned 2009 digitalization, but rather the building of a flashy new headquarters and symphony hall, which is turning out to be more expensive than originally intended. Cost overruns and construction delays at the Oersted, Copenhagen-based facility have accounted for more than 220 million euro (U.S.$245 million) and resulted in 300 job cuts (representing 10 percent of the total payroll). Experts fear that DR is now ill-prepared for the competition that will inevitably come with digitalization. Additionally, this financial nightmare will likely lead to programming cuts that will affect award-winning radio reportage programs, live concert transmissions, and even 2008 Olympics coverage. When the plan to build the new headquarters (and the 1,600 seat symphonic hall) was first conceived in 1999 it enjoyed political backing. The idea of consolidating radio, television and online staff as well as the upgrade in technology was welcomed. The government was eager to convince highprofile companies to make Oersted their base. But things began to go awry in 2004, when DR first appealed to the government for loans to cover its exploding budget. OC T O B E R 2 0 0 7 (Continued on Page 6) Carlo Sartori withVideoAge’s Dom Serafini

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