Cable & Wireless, cable companies and Channel One agreement

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Friday 5 December 1997

Cable & Wireless Communications, the three London cable companies* and Channel One TV Ltd today reached an agreement which marks a significant step forward in the relationship between cable operators and programme providers.

In return for greater retail flexibility, the cable operators will provide Channel One with a guaranteed revenue, in line with their current contract. In addition, Cable &Wireless Communications and Channel One will jointly run 'upgrade' promotions to encourage customers to subscribe to programme packages which include Channel One.

Managing Director of Channel One, Julian Aston, today said:

"This agreement confirms Channel One's position in the cable channel line up. Since its launch, Channel One has pioneered new television techniques, many of which have been adopted by competitors. Channel One has recently introduced to British television innovative 24-hour presentation of news and information.

"We shall be working closely with the cable operators to promote Channel One's unique news, weather, travel and entertainment services. With the support of our parent company, Harmsworth Media, Channel One enters its fourth year with a guaranteed income, looking forward to developing our business by increasing viewers and revenue."

Cable & Wireless Communications' Director of Programming & Content, Peter Howard, commented:

"This is a win-win deal. We get greater retail flexibility. Channel One gets a revenue guarantee.

"As the pay-TV market matures, we will be seeking similar relationships with other programmers. Cable operators want greater retail flexibility to meet customer demands and drive penetration. We also want to nurture a broad range of programme services to meet our customers' demands for choice and value for money. The agreement is an important step to showing how all of this can be achieved, to the benefit of both cable operators and programme providers."

Notes to editors

*The four London cable companies are Cable & Wireless Communications, Telewest, The Cable Corporation and Cable London.

Cable company press enquiries to:

Roy Payne or Andy Rogers 0171-528 2539 or 2556
Cable & Wireless Communications

Channel One press enquiries to:

Julian Aston 0171-927 8400
Channel One TV Ltd