Murdoch Makes Gains in Italian Media Market

MURDOCH MAKES GAINS IN ITALIAN MEDIA MARKET
[SOURCE: New York Times, AUTHOR: Peter Kieffer]
A proposed new media law in Italy could weaken Silvio Berlusconi's long-held lock on Italian television, and in the process help Rupert Murdoch, the chairman and chief executive of the News Corporation, which owns Sky Italia, Italy’s sole satellite provider. Last month, the government floated a new conflict of interest law (explicitly targeting Mr. Berlusconi) and the new media law, which would put a 45 percent ceiling on advertising for any one broadcaster. The media law would also force the state-run broadcaster, RAI, and Mediaset, the media division of Fininvest, to transfer one of their analog channels to digital within fifteen months, freeing up two channels for new investors. A recent analysis by IT Media predicted that Sky Italia was positioned to benefit most by the new law. The report said Sky could earn an additional 28 million euros ($37 million) a year from its implementation. Mediaset, meanwhile, could lose up to 103 million euros ($135 million) a year in earnings, the report said.
http://www.nytimes.com/2006/11/27/business/worldbusiness/27skyitalia.html
(requires registration)