Following in the footsteps of Internet heavyweights like Skype, Amazon and iTunes, a dynamic new generation of TV-related companies is choosing to set up business in Luxembourg. There are many reasons why Luxembourg-based TV providers, such as M7 and UPC are finding success. By learning more about Edonys, a new channel for wine enthusiasts, we can get a complete picture of Luxembourg’s unique advantages for TV broadcasters.

Spotting a wide open market opportunity, Edonys launched a TV channel for wine lovers and industry professionals that takes the time to discover wine. Broadcasting in High Definition (HD), it is available to ADSL, CATV and satellite networks as well as Internet and mobile outlets. While wine is the focus of many websites, Edonys is the first TV channel to focus on it exclusively. To exploit this first-mover advantage, Edonys needed to establish its business in a country where the licensing and regulatory framework would react quickly and the technical infrastructure was in place to enable a turnkey launch. After a thorough evaluation of potential countries, Edonys chose Luxembourg.

Edonys CEO Julien Dumont explained, “Luxembourg has an important broadcast infrastructure, with high-performance connections to the European hubs used in television. We are able to connect to our target countries with an ideal signal distribution. Plus, we quickly formed partnerships with key Luxembourg media players, including local IPTV provider P&TLuxembourg.”

Starting with French-speaking countries Luxembourg, Belgium, France and Switzerland, Edonys plans to cover Western Europe within 3 years. Luxembourg’s central location in the heart of Europe and the high-bandwidth connectivity provided by P&TLuxembourg’s TERALINK unit will help make this strategy a reality. But Edonys doesn’t plan to stop there. In years 4 & 5 it plans to enter the Eastern European and North American markets. Soon thereafter, South America, South Africa and Russia will come online. Said Julien Dumont, “With its central location, powerful Internet backbone and state-of-the-art satellite capability, Luxembourg gives us the infrastructure we need to provide worldwide coverage.”

A fresh taste

Edonys generates revenue from distributors and operators that include it in program packages or offer it as a pay-for-channel. With 40 hours of fresh programming every month, audiences can participate in interactive wine tastings, get news and information or watch documentaries and films. Edonys works with well-known wine experts and opinion leaders, creating programs that feature lively debates, games, events and exclusive wine tips and advice. Wine lovers around the world recognize the value of this programming, and Edonys is already selling video content to TV channels in Asia and international websites about wine.

Producing quality TV programs requires creative talent. Edonys’ producers, writers, artists and editors work together to create a channel that is “passionate” about wine. Julien Dumont commented, “We promote wine culture and heritage, with open and honest discussions without taboos. We educate our viewers about responsible consumption while championing wine as a pleasure that is convivial and an indispensible part of gastronomy.” In Luxembourg, Edonys taps into a workforce with the talent and competencies it needs to develop exciting content, manage production and scheduling and, above all, create new program concepts that can be branded.

Intellectual property

Developing new brands (IP) in Luxembourg is important to Edonys’ bottom line. Luxembourg law states that 80% of income derived from IP rights acquired or created by a Luxembourg company and gains from the sale of these rights are exempt from income tax, which can reduce the income tax to less than 6%. Julien Dumont elaborated, “Each new program concept we create could have a specific brand which we can license, develop or sell. The favorable IP regime in Luxembourg and the fact that Pay-TV is subject to the very low VAT rate of 3% are key reasons why we established our business here.”

In addition, Luxembourg is part of the EU and supports the European Audiovisual Media Services Directive (also known as “Television without frontiers”). The objective of this directive is to create a level playing field by establishing a common legal framework for the free movement of audiovisual media services. It protects TV channels from local regulatory issues by ensuring freedom of access across European borders. This gives Edonys the stability it needs to do business confidently.

Luxembourg is one of the most international countries in Europe, with a multi-lingual workforce of native language speakers who are skilled in all the domains Edonys needs to run its business. As it expands, it will produce regional programs in local languages. “Since coming to Luxembourg,” says Julien Dumont, “I’ve been impressed by how many people speak multiple languages fluently. This is a big help, since we work with production partners throughout Europe and need to have clear, unambiguous communications.”

The perfect recipe

The full range of technical broadcasting facility services available in Luxembourg has met Edonys’ requirement for high quality and fast response. Head-end services including play-out services process video content for transport and the TERALINK high-bandwidth network moves it to distributors throughout Europe. Edonys uses P&TLuxembourg for all of these services. Julien Dumont said, “We were lucky to find an excellent technical partner that is also a major content distributor. An added benefit is that P&TLuxembourg provides over-the-top (OTT) broadcasting so we can stream our TV live over the Internet to reach our subscribers on computers and mobiles.”