BRUSSELS -- European broadcasters say the European Commission's opposition to a merger between Germany's two digital television broadcasters may be a mistake because it's not certain whether there'll be enough room for more than one operator.
"What is wrong about having one group only in Germany during a transitory phase?" said Daniel Zimmermann, director general of the Association of Commercial Television in Europe, adding that this may be the only way to get an expensive business like digital TV off the ground.
Zimmermann also suggested that Europe should phase in digital TV rather than make a big-bang switch from analog as is currently planned in the United States.
Zimmermann's comments today came as German media giant Bertelsmann and former rival Kirch struggle to have their planned digital TV merger approved by the European Commission's competition authority.
Kirch's managing director, Dieter Hahn, warned Wednesday that unless the European Commission approved the merger of its ailing digital TV company DF1 with Bertelsmann's Premiere, Germany's successful pay-TV channel, it would be the end of DF1.
European competition chief Karel Van Miert has objected to the alliance, which also involves telecommunications operator Deutsche Telekom, saying it would create a lasting monopoly.
Van Miert has also frowned at the courting of France's digital platform Television Par Satellite by rival firm CanalSatellite on the same grounds.
But Zimmermann said that while experience had proved that France could probably accommodate two operators, it should not necessarily be taken as an example for the rest of the 15-nation bloc.
Too much competition could also have an adverse impact, he said, noting that the price of US film catalogs had skyrocketed with many digital and pay-TV projects in the launch phase. US films and broadcasting rights to big sports events are the two key ingredients to successful pay TV. Zimmermann said the commission's call for two operators "plays into the hands of the Americans."
As for establishing a switch-off date for existing analog TV, Zimmermann said that while it was important for the industry to have a clear signal, there should be great caution when setting any dates.
"Rather than a deadline, we could have different phases," he said, stressing that the European market was very fragmented and contrasted in terms of cable and satellite penetration.
EU culture ministers have advocated a quick switch to digital TV, but there has been no decision yet.
Zimmermann also suggested that national governments, in order to ensure the success of digital television, would be well advised to subsidize new TV sets or set-top boxes -- possibly through the sale of broadcasting frequencies -- or risk dividing society between the "haves and the have-nots."
