Posted: Thurs., May 29, 2008, 7:57am PT

Mediaset nabs Disney Channel

Pay TV operation given boost

Silvio Berlusconi’s Mediaset broadcast group is upping competition with Rupert Murdoch-owned rival Sky Italia by adding Disney Channel and a premium sports station to its Premium Gallery pay TV package.

Mediaset VP Piersilvio Berlusconi announced Thursday the Disney Channel has broken its exclusive deal with Sky Italia and will start airing on Premium Gallery in July.

In January, Mediaset broke Murdoch’s Italo pay TV monopoly by launching digital terrestrial TV platform Premium Gallery.

Although it has only three channels, each is packed with a mix of Hollywood pics and serials thanks to four-year deals with Warner Bros. and Universal. Male-skewed Steel was launched in tandem with NBC Universal and features blocks of NBC U’s Sci Fi channel.

With Disney Channel now in the mix, the price is being raised from e8 ($12) a month to a still low $15.50. “We think we fit in well with the Mediaset premium offer and want to guarantee the success of this platform,” said Disney Channel Italy director Giorgio Stock.

A premium all-news sports station also will kick off in July, enhancing its ample Serie A soccer fare.

How heated the competitive climate has become between Mediaset and Sky Italia became clear earlier this month when Sky effectively evicted the Studio Universal channel from its platform after NBC U pacted with Mediaset to produce the Steel channel. This tactic is not an option for Sky Italia when it comes to the Disney Channel.

Berlusconi fils said Premium Gallery had revenues of $170 million in the first quarter and more than 6 million subs.


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