Telecom Italia to strengthen its pursuit of TV rights

The comapny is in talks to sell its 19.9% stake in pay-TV broadcaster Sky Italia to majority owner News Corporation Ltd, in a bid to strengthen its pursuit of Italy's TV soccer rights. The deal, if successfully completed, would give the Rupert Murdoch-owned company 100% ownership, although no price has yet been agreed. Telecom Italia wants to relinquish all its ties with Sky Italia, so it can form effective opposition to the News Corporation-owned network. Telecom Italia has recently launched live coverage of Serie A and Serie B games on the internet, and wants to take advantage of European Union legislation that includes the provision of discounted football coverage from Sky Italia to alternative video providers until 2011. Sky Italia is also facing competition from Italy's largest commercial broadcaster Mediaset SpA, which bought satellite digital rights for three Serie A clubs (Juventus, Internazionale and AC Milan) last June with the intention of launching a pay-as-you-watch digital TV system in 2005.