Wednesday, 21st February 2007

HEADLINES OF THE DAY

Britannia Tiger Hungamathon Sprints Ahead in Delhi

The Britannia Tiger Hungamathon '06-07 in Delhi finally got up and running on 18 February at Jawahar Lal Nehru Stadium (Lodhi Road). Hungama TV 2007 Captain from Delhi Sakshi Singh flagged off the mini marathon at 8.30 am and also judged the children for 'The Most Crazily Dressed Kid' prize.

The Walt Disney Company (India) managing director Rajat Jain said, "In the second year of this event, we have toured to three cities in India with an overwhelming response of over 90,000 registrations. We at Hungama TV, celebrate this friendship and solidarity with our young fans. Being a brand in the kids and family space is one of immense responsibility. This run was a medium for us to communicate to the millions of children across the country to see the joy and freedom of being outdoors and having fun as a team."

This year the race was open to kids between 8-15 yrs, with two categories - Masters (age 8 - 12 yrs) to run 2 kms and Blasters (age 13 - 15 yrs) to run 3 kms. Hungama TV joined hands with the Delhi Athletic Association for Hungamathon 2007 to ensure appropriate adjudication for the entire event. Total Sports Asia was responsible for the planning, promotion and execution of the event, informs an official release.

Delhi Athletic Association secretary M. L. Dogra said, "One of the aims of Delhi Athletic Association is to promote sports in the state. Through this marathon, we want more children to take up sport and promote the spirit of running. The Delhi Athletic Association is extending its full support and we look forward to a successful event this Sunday."

Total Sports & Entertainment India Pvt Ltd. managing director Navneet Sharma said, "This is a truly unique event where kids get to showcase their talent and their skills. Kids are the future and by touching their lives through this run we are trying to make them enjoy every aspect of their childhood. The Hungamathon provides the ideal platform for kids to maintain the competitive spirit and also to have fun. We are very happy to partner with Hungama TV on this fantastic event." Source: Indian Television, 19th February 2007

South American World Cup Qualifying to Start in September

South American qualifying for the 2010 World Cup would start Sept. 8 under a schedule proposed to FIFA by the region's governing body. The opening slate of games would have Bolivia at Uruguay, Brazil at Colombia, Chile at Argentina, Paraguay at Peru and Venezuela at Ecuador, the governing body CONMEBOL said Thursday.

Most regions will start qualifying after the World Cup qualifying draw, scheduled for Nov. 23 in Durban, South Africa. African qualifying will start on Oct. 13. South America has four guaranteed berths spots, with the No. 5 team going to a playoff for another berth against the No. 4 nation in North and Central America and the Caribbean. Source: Yahoo! Sports, 16th February 2007

World Superbike Sale Could Create Merger with MotoGP

FG Group, the company that owns the rights to the World Superbike Championship, has put the championship up for sale in a move that could lead to its unification with the rival MotoGP series. Bridgepoint, the venture capital firm that acquired a controlling stake in MotoGP for about €500 million ($657 million) is considered the most likely buyer for the World Superbike Championship, which is valued at about £50 million ($97 million).

Paolo and Maurizio Flammini, the Italian brothers who founded the championship in 1989, took back control of it in 2003 after a period in which it was owned by Octagon, the international sports agency. MotoGP was sold to Bridgepoint last year by another venture capitalist CVC in response to regulatory requirements, after it acquired control of the rights for the Formula 1 motor racing championship for about $1 billion.

Superbikes, the road-going models that are considered technologically inferior to MotoGP machines, are popular in the UK, Australia and USA, while MotoGP’s strength lies in continental Europe. Source: Sportcal, Cycle News, Visor Down, 19th February 2007


WSB owners FG Sport are reported to have instructed American company Merrill Lynch to conduct an auction for the series with a price tag thought to be around £50million. Venture capital company, Bridgepoint is hotly-tipped to table a bid to acquire the series, although they might face scrutiny from the monopolies commission as they already have controlling stakes in MotoGP and BSB.

Bridgepoint paid around £350million to acquire Dorna last summer after previous owners CVC were forced to relinquish the Spanish-based company. That followed a directive made by the European Commission after they acquired the majority shareholding in the Formula One world championship.

This would not be the first time that WSB has changed hands. The series was the brainchild of former AMA Superbike racer Steve McLaughlin and ran for the first time in 1988 under the guidance New Zealand-based Sports Marketing Company. When they hit financial problems it was sold to the Flammini brothers, Maurizio and Paolo, in 1990.

Investment by Indonesian Tommy Suharto helped re-finance the series in 1996. Octagon then bought WSB from the Flammini brothers in 1998 but sold it back to them in 2003, the brothers continuing to run the series throughout the period. Source: Motorcycle News, Times Online, 19th February 2007


INFO DIGEST

Info Box – Worldwide DTH Pay-TV Subs (in ‘000)
* North America - 2003: 23,836, 2006: 31,645, 2010: 35,984
* Latin America - 2003: 3,303, 2006: 4,197, 2010: 5,355
* Western Europe - 2003: 19,255, 2006: 24,470, 2010: 31,709
* Eastern Europe - 2003: 1,458, 2006: 3,129, 2010: 5,296
* Japan - 2003: 5,526, 2006: 8,150, 2010: 12,606
* Asia-Pacific - 2003: 4,075, 2006: 9,283, 2010: 23,002
* Mid-East/Africa - 2003: 2,955, 2006: 4,864, 2010: 6,796
* TOTAL - 2003: 60,407, 2006: 85,738, 2010: 120,748
Source: In-Stat published on Rapid TV News, 20th February 2007


SPORTS SHORTS

* World Wrestling Entertainment® announced today that WrestleMania 23 at Ford Field in Detroit, Mich., on April 1, 2007, has topped $5 million in ticket sales, making it the highest grossing one-day event in World Wresting Entertainment history. All available seats for WWE’s annual pop culture extravaganza, more than 63,000 tickets, are now in the hands of fans from 22 countries and all 50 states. Source: Business Wire, 15th February 2007

* Indian news channels are offering former cricketers big money for special shows and match analysis in view of the Cricket World Cup. TV Today has signed former Indian cricket captain Kapil Dev for an estimated Rs2.5 crore for Aaj Tak. Global Broadcast News (GBN), is close to signing up Navjot Singh Sidhu for a whopping Rs 1.5 crore. Contracts make the cricketers available to the broadcasters for between 150 and 200 days in a year. The less popular ex-players manage to earn between Rs 25 lakh and Rs 50 lakh from similar deals. Source: Agencyfaqs, 21st February 2007

* The mobile telecoms industry focused on India at this year's 3GSM, after years of talking about China's potential third generation licenses and market. Vodafone's $11 billion deal to buy India's fourth-biggest firm, Hutchison Essar, announced on the eve of fair, set the tone. With 150 million subscribers but market penetration of only 15%, India is the fourth-biggest mobile market behind China, the United States and Russia. It is also the fastest-growing major market and is expected to overtake Russia this year. At its current growth rate, there will be half a billion mobile subscribers in India by 2010. Source: Ken Radio, 19th February 2007

* The Thai government said it is considering a plan to buy back the country's only satellite operator, which came under the control of the Singapore government's investment arm as part of a sale of the country's biggest communications company early last year. Information & Communications Technology Minister Sittichai Pokaiudom said on Monday that the ministry will set up a committee chaired by himself to study the buyback option, which could cost about THB10 billion ($300 million). Source: Total Content + Media, 19th February 2007

* Jordan will get its first-ever commercial TV station later this year. ATV is being established by Mohamed Al Ayyan, a 33-year-old entrepreneur and son of a wealthy Amman family which is sinking US$20 million into ATV. All other TV stations in Jordan are state-backed. ATV will launch later this year terrestrially, and on satellite over the entire Middle East, transmitting a mix of current affairs, talk and variety programming, movies and sports. Source: Rapid TV News, 20th February 2007

* Bids for the broadcast rights to France’s top-tier rugby union competition are currently under consideration by the Ligue Nationale de Rugby (LNR), with Canal Plus still remaining the favourite. The rights on offer apply to the Top 14 and the second-tier Pro D2 for four years starting with the 2007-08 season and cover television, the internet and mobile phones. Estimates put the winning bid at between €30 million ($39.4 million) and €35 million a year for the two packages. Canal Plus’ existing €19-million-a-season deal expires in June. Source: Sportcal, 20th February 2007

* The NBA All-Star Game in Vegas will reach 215 countries in 43 languages through a record 110 broadcast partners. 52 international television & radio networks and websites will be on-site for NBA All-Star 2007. 20 television and radio networks will broadcast during All-Star live with on-site commentary. Among the 12 Chinese media outlets on site is CCTV who celebrates its 20th anniversary as an NBA partner throughout All-Star. For the second year running, NBAE and CCTV will produce a customized feed for the All-Star Game. Source: Sport Business, 16th February 2007

* Chelsea has become the first club to launch a football branded channel on YouTube. YouTube.com/ChelseaFC, will include club content, daily news and archive video footage as well as other material including feedback and contributions from fans. The channel will have the same look and feel as the redesigned Chelsea website, representing the latest landmark in Chelsea's multi-media platform strategy. Content will be provided by Chelsea Digital Media, which runs Chelsea TV and the club’s official website. Source: Football Insider, Sport Business, EUFootball.biz, 19th February 2007

* World soccer governing body FIFA’s president has finally admitted how much he gets paid – and last year it was a cool US$1m. Sepp Blatter has traditionally kept his salary a tightly-guarded secret, but admitted the seven figure payment for 2006 during an interview with Swiss newspaper Sonntags Zeitung. Source: Sport Business, 19th February 2007


MORE NEWS

Traffic: Predicting Huge US Figures for Copa America

The Copa America is expected to draw in 800 million viewers in the United States when it takes place in Venezuela this summer. Traffic Sports, the company in charge of selling the television rights for the oldest national team competition in the world, is expecting a big pay-day after sharing the rights between a number of television stations for the first time.

Vice-president Aaron Davidson said: “With the United States taking part in the tournament and the possible coverage in that country, we can talk about an audience of about 800 million people. We expect to collect about US$12 trillion, not only because of the increasing importance of the tournament but also because in 2004, the quarter-final between Mexico and Brazil and the final between Brazil and Argentina were the sporting events with the top audiences among Hispanic people in the United States.”

Univision/Telefutura and Fox Sports will show the competition in Spanish, while Traffic Sports are also negotiating to televise matches in English and Portuguese in the United States. Meanwhile, Empresas Polar, one of the largest drinks companies in Venezuela, has become the official sponsor of the tournament. Beer brand Maltin Polar, which also sponsors the domestic leagues, has also declared its intention to sponsor the Copa America, which will run from June 26 to July 15. Source: Football Insider, 19th February 2007

Hong Kong/Rights: PCCW wins more soccer

PCCW’s Now Broadband TV IPTV platform has further strengthened its grip on football coverage in Hong Kong, signing a deal to broadcast Italian Serie A soccer for three years from the start of next season. Under the terms of the deal with Media Partners & Silva/Dentsu, Now TV has television, broadband, IPTV and mobile TV rights for not less than 130 live matches including most of the home games of major clubs AC and Inter Milan, Juventus and Roma.

Now Broadband TV will add Serie A to its HK$218 Mega Sports Pack which includes UEFA Champions’ League and the English FA Cup football competitions, international swimming, diving and volleyball tournaments as well as the IAAF Grand Prix Athletics in 2007. In December, the company also won the rights to UEFA’s 2008 European Championships. It is also in negotiations with the English Premier League over both television and mobile rights to that football league. Source: Rapid TV News, Indian Television, 19th February 2007

Japan/Broadcast: HD: not just for boys

Japanese cable MSO Jupiter Communications (J:Com) has launched its service’s fifth high-definition channel, offering an HD version of its female-focused channel, LaLa TV. Star Channel High Definition was J:Com’s first HD channel, launched way back in November 2004. In December 2005, Discovery HD and Fox Life HD launched, followed in August 2006 by Movie Plus HD.

LaLa HD will be available as part of the J:Com TV Digital basic package. The HD channel will be a simulcast of the standard-def channel. J:Com had 1.152 million digital cable TV subs from a total 2.196 million TV subs at the end of January but the company provides no figures on the number of homes accessing its HD channels. Source: Rapid TV News, 20th February 2007

India/Broadcast: Star Re-Looking Nimbus Deal

Star India is reportedly looking at renegotiating its contract to carry the pay Neo Sports channels, after government intervention in sports broadcasting as well as regulatory intervention in the pricing of the bouquet. Last month, India’s government ordered Nimbus to share its feed of certain sports events that are “in the national interest” with the country’s public broadcaster, Doordashan. The list is still being compiled, but foremost on the list is likely to be international cricket matches, the rights to which Nimbus now holds.

With Nimbus’s most valuable properties likely then to be also available free-to-air, its channels Neo Sports and Neo Sports Plus stand to lose key subscription drivers, a situation Star, which offers the channels as part of its package, is reportedly not happy with. Star has a minimum guarantee agreement with Nimbus, under which it will reportedly pay at least Rs6 billion (US$136 million) over four years until 2010.

Also likely to be an issue is the case currently before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) under which Nimbus was ordered by the telecom Regulatory Authority of India (TRAI) to lower the price it charges subscribers for its bouquet. Nimbus has also filed a petition in the Supreme Court challenging a Delhi High Court order fixing the price of the bouquet at Rs37.25 a month. Star and Nimbus had priced the bouquet at Rs58.50 a month. Source: Rapid TV News, 21st February 2007

Singapore/Broadcast: HDTV needs five years to take off

High-Definition TV (HDTV) services may take at least five years to take off in Singapore, Chief Information Officer of Media Development Authority (MDA), Yeo Chun Cheng has said. He said that was the amount of time that may be needed to convince half the homes here to junk their old TV sets for new ones that tune in to sharper HDTV images.

He based his estimate on the take-up rate overseas, the Straits Times newspaper has reported. The United States, for example, has between 40 and 50 percent of homes on HDTV, after more than five years since the launch of HDTV services.

Singapore's first commercial HDTV channels went live last month, with StarHub broadcasting the National Geographic Channel and Discovery over its cable-TV network. Mr Yeo also said that lack of content has also been preventing HDTV from taking off faster. He said it still costs 10 to 20 percent more for production houses to shoot TV programmes in HDTV format. Source: Asia-Pacific Broadcasting Union, 12th February 2007

Japan/Broadcast: DPA to Prepare for DTV Transition

Japan has set-up a new organisation to help market 30 million digital TVs in the country by March 2008. The Association for Promotion of Digital Broadcasting (DPA), to be launched on 1 April, is supported by Japanese TV broadcasters, TV set manufacturers and mobile phone carriers. Its mission is to promote the transition from analogue to digital broadcasting. Analogue broadcasts are scheduled to end in Japan on 24 July 2011, making way for all-digital broadcasts.

DPA's first goal is to boost digital tuner penetration to about 30 million units in Japan from an estimated 20 million units projected by March, EE Times reports. Japan has yet to establish rules for its DTV transition. Previously, two separate organisations were promoting DTV broadcasting in Japan, one for satellite broadcasts and the other for terrestrial broadcasting. Source: Asia-Pacific Broadcasting Union, 15th February 2007

Korea/New Media: Echostar Buys into Asian Mobile TV

US satellite broadcaster Echostar has become the second-largest shareholder in South Korea’s TU Media, operator of a satellite digital mobile broadcasting (S-DMB) service. TU Media raised WON69.8 billion (US$74.5 million) through a share issue to Echostar and existing shareholder SK Teleom. Echostar accounted for WON37.4 billion for which the company will hold a 9.9% stake. SK Telecom increased its stake from 29.6% to 32.7%.

With over one million subscribers since launch in May 2005, TU Media’s 15-channel subscription S-DMB service has had some success. But the company also hopes to transport its service overseas. Bringing Echostar in as a shareholder could provide inroads into the massive US market. Source: Rapid TV News, 19th February 2007

Asia/General: UEFA Champions League Trophy Tour

The UEFA Champions League trophy will visit five Asian countries in the next six weeks as part of a tour to celebrate Europe’s premier club competition. Europe’s most prized club trophy will be touring Asia for the first time when the UEFA Champions League Trophy Tour – presented by sponsor Heineken - kicks off in Tokyo on February 23. It will then go to Jakarta, Hong Kong, Kuala Lumpur, Bangkok and Pattaya.

In each country, the UEFA Champions League Trophy Tour will be launched with a press conference involving local footballers and celebrities. The trophy will then be the centre piece of a display in the city centre giving local fans the opportunity to find out more about the tournament and be pictured with the trophy. According to recent research, interest in football is actually higher on average in Asia (62%) than in any other continent, including Europe (55%)*. The 2006/07 season has seen 72 nationalities represented in the UEFA Champions League.

The UEFA Champions League Trophy Tour visits Jakarta, Indonesia, March 1 – 4; Hong Kong March 16 – 18; Kuala Lumpur, Malaysia, March 22 – 25; Bangkok, Thailand, March 30 – April 1 and Pattaya, Thailand April 6 – 8. Source: Sports e-Media, 19th February 2007

Asia/General: Most Rapid DTH Growth to Come from Asia

Western Europe and North America continue to lead the digital satellite pay-TV market in subscribers and revenue. However the fastest growth over the next several years will come from other areas, especially Asia, reports market research firm In-Stat. Key satellite market trends include consolidation in established markets, interactivity, HD, launches, and bundling, the high-tech market research firm says.

Research by In-Stat found the following:
* Total DTH pay-TV subscribers are expected to reach over 117 million in 2010.
* Global DTH-TV revenues will exceed $88 billion by 2010.
* Consolidation occurred in 2006 with service providers like TPS and CanalSatellite and conditional access providers (Irdeto/Cryptoworks).
Source: Indian Television, Rapid TV News, 17th February 2007

Malaysia/General: Maradona Keen to Play in Malaysia

Diego Maradona, regarded to be one of the world’s greatest footballers, may get to display some of his magic here again. The Argentine World Cup hero will be embarking on a World Tour 2007 programme with the focus on Asia, and wants to play in Malaysia. His agents from Buenos Aires were here recently to tie up a deal with interested parties, and also brief Argentine Ambassador Alfredo Morelli.

The 47-year-old Maradona, who led Argentina to the 1986 World Cup title in Mexico, is now actively promoting his own brand of football called “showbol,” a mix between futsal and soccer, played seven-a-side over two 25-minute periods on a 22m by 42m artificial pitch surrounded by an acrylic wall. Luis Lestani, general manager of Elemco Overseas Corp which promotes the Maradona brand of products, said the former soccer great was keen to return to Malaysia, where he had captained his then club Boca Juniors against Selangor in 1982.

Maradona captains his showbol squad, which includes former Argentine players Matias Almeida, Sergio Goicoechea, Alejandro Mancuso, Patricio Campos, Sergio Zarate, Sebastian Rambert, Jose Borreli, Fernando Gamboa and Mackalisster. Lestani said Maradona, capped 90 times for Argentina, had also spoken to him of his interest in establishing a Maradona Football Academy here. Morelli said Argentina was one of the world’s top football nations and Maradona remained its sporting icon. Source: The Star Malaysia, 21st February 2007

China/General: TV Behind China Ad Boom

TV accounted for over 80% of China’s total 387 billion yuan (US$50 billion) advertising revenue in 2006, according to Nielsen Media Research. Spending on TV ads was up a massive 26% on the previous year and that trend is set to continue. Nielsen’s is predicting that China will become the world’s second-largest advertising market by 2010, with double-digit growth likely each year. Spend should get a boost during the 2008 Beijing Olympic Games but even without, the country is set for a massive advertising boom.

Fastest growth is coming from second-tier cities such as Nanjing, although half of all advertising was done in the country’s top 10 cities in 2006. Nielsen’s plans to expand its ratings measurements from the current 3,300 homes in 11 cities it surveys to around 25,000 homes in many more cities during the next two years. Source: Rapid TV News, 20th February 2007


ARTICLES, COMMENTS & OPINIONS

Insight: An Interview with Harish

Ads appearing at the wrong time, run-ins with the I&B ministry, poor commentary–no, it wasn’t a perfect beginning for Neo Sports, sister company of Nimbus Communications, which bagged the rights to telecast both the West Indies and Sri Lanka cricket series at home in the run-up to the World Cup. But Harish Thawani, CEO of Nimbus Communications, insists that March and April will be a time for consolidation.

Last year, he sent shock waves across the sports broadcasting world when Nimbus bagged the rights to telecast all cricket matches in India for $612 million until 2012. Thawani’s company shareholders include Cisco, 3i and Oman International Fund. He spoke to FE’s Sudipta Dutta on the sports broadcasting business, Nimbus’s film plans, and why the industry is at the cusp of a structural change. Excerpts:

What’s the feedback on Neo Sports? What do you have to do to build a better sports channel?
The primary facet of the business is to develop a brand cache, wherein people know that on Neo Sports you get to watch good sport. The second thing we need to develop is a dedicated group of subscribers. ESPN has succeeded in this. We have received consistent feedback about picture quality. The connectivity report shows that we are in 26 million homes. We are developing high quality management that will be able to find innovative ways to pull audiences in lean seasons.

What’s happening in sports broadcasting? More consolidation?
We are at the cusp of a structural change. For the past year, we have been predicting that consolidation will happen. There were six bidders for cricket telecast rights in 2006—Sony, ESPN-Star, Zee, Ten Sports, DD and Nimbus. Now, we are down to three because Ten was bought by Zee, Sony has pulled out of cricket broadcasting, and DD has pulled out too, they are not in the rights buying business. This is very healthy competition.

What are the challenges for the industry, going forward?
The regulatory hurdles have been placed before the sports broadcasting ministry. They are being sorted out—that’s a good sign. The Union cabinet has already set up a technical committee on sports broadcasting. The terms of reference of the committee are encryption, how to deal with the DD-DTH problem and other technical matters connected to the feed. We have always held that we are for regulation, but you cannot change the rules of the game half way through the match.

You have now got into film distribution, too. Do the lessons from managing sports rights help?
Yes. It gives you great insights into how rights are monetised. Last year, we acquired a strong Mumbai-based distribution company and we will complete a national rollout by June and a global rollout possibly by August. Now that our cricket business and other sports have crossed Rs 800 crore in sales, we are looking forward to building a similar size in management of film rights.

Don’t you think Nimbus overpaid ($612 million) for the Indian cricket rights until 2012?
In hindsight, sports rights always look cheap. When we paid $612 million for world rights for 400-odd days of cricket, it looked expensive. Four months later, Zee paid $212 million for 25 one-day games. Six months later, ESPN paid $1.2 billion—including cost of production—for 43 India matches in the ICC package and for some 100-odd non-India matches. When you look at cost per playing day, suddenly, ours looks cheap.

How do you see the future for Nimbus? Do you plan to go public?
We will launch at least one more TV channel by September targeted at women – it’s not an entertainment channel. We are eyeing the video-rental business. As for an IPO, there are no immediate plans. We are sitting on about Rs 750 crore of shareholder reserves. But we have to list one day, so maybe 2008-09. Harish Thawani speaks to Sudipta Dutta of the Financial Express, 20th February 2007