Objectives
Telenet is the leading Cable TV operator in Belgium with around 750,000 digital TV subscribers. In 2005, Telenet launched its digital TV service. A critical part of the service was introducing a strong Video on Demand (VOD) offer with blockbuster movies from the Hollywood studios and the rebranding of the premium Pay TV service Canal+ to Prime.

Telenet approached 3Vision to lead negotiations with the Hollywood studios to secure VOD rights and where necessary Pay TV rights.

3Vision Approach
3Vision has extensive experience in VOD and Pay TV negotiations, and strong relationships with all the studios, so was in an ideal position to support Telenet with this project. The initial preparation phase included:

• Creating a business model to drive the financial aspects of the negotiation
• Preparing a presentation to present and sell the opportunity
• Completing studio “new business questionnaires”
• Drafting term sheets to propose key deal points

3Vision then met with all the Hollywood studios to present the opportunity and commence negotiations. To successfully conclude the negotiations 3Vision leveraged its relationships and contacts with the studios at multiple levels and locations - including London and Los Angeles. Throughout the process 3Vision negotiated all commercial and contractual deal points, liaising closely with Telenet to ensure that the agreements met their specific requirements.

Results
The Telenet VOD service launched successfully with Studio VOD movies to the STB and to the PC. Telenet obtained favourable deal terms with respect to key commercial terms such as minimum guarantees, license periods etc. In additional Canal+ was successfully re-launched as Prime offering an enhanced line up of Pay TV movie channels.

3Vision has continued to support Telenet with its VOD and Pay TV acquisition:

• Negotiating VOD and Pay TV agreements with all the Hollywood studios
• Negotiating key amendments, for example SVOD rights for the launch of Prime a la Carte – a subscription VOD service aligned to Telenet’s premium movie channel service Prime
• Constantly looking for and achieving ways to improve deals for Telenet

“3Vision have strong relationships with all the Hollywood studios and are experts at Pay TV and Video on Demand.” Paul Israel, VP Media Partnerships, Telenet

September 2009