German media giant the Kirch Gruppe is threatening to shut down its digital television service, DF1, if the European Union blocks its proposed merger with Bertelsmann AG’s Pay-TV channel, Premiere (CI No 3,335). Kirch’s MD, Dieter Hahn, was quoted in the Wall Street Journal as saying that the service, has no hope of staying alive on its own. He also intimated that Kirch saw no benefit in fighting the EU’s decision if the ruling, which is due by June 2, goes against the company. The Union’s competition commissioner, Karel Van Miert, has demanded changes to proposals for the Pay TV alliance, which will have to be submitted by the end of this month, if the entire venture is not to be vetoed by the directorate. Under the terms of the original deal Kirch would have transferred the assets of DF1 and its sports channel, DFS, into Premiere, which would have then become the sole Pay TV provider. The service would have been distributed by Deutsche Telecom. However, the EU has never hidden its hostility to the alliance, and after the current round of machinations, it seems highly unlikely that the merger, at least in its present form, will ever come to pass.
