Monday, 5th March 2007

HEADLINES OF THE DAY

China Halts Distribution of ESPN, Star Sports

Cable sports channels ESPN and News Corp's Star Sports have been removed from a list of foreign broadcasters that can be distributed to hotels and upscale housing compounds in China, the Financial Times reported. The channels, run by Singapore-based ESPN Star Sports, a 50-50 joint venture, were not included in 2007 list of the 31 channels approved by the State Administration of Radio, Film and TV, for broadcast to hotels and housing compounds, the report said.

China International Television Corp, the state company that handles such distribution for foreign broadcasters, has blocked broadcasts of the two channels in at least one province, although they continue to air in key markets such as Beijing, the report added. It quoted a Hollywood Reporter report saying that the move followed ESPN Star Sports' failure to attend a licensing meeting with Chinese regulators last year concerning the extension of its landing rights. Source: Sport Business, Forbes, China Economic Review, 2nd March 2007

Famous Trophy on Show in Jakarta

The UEFA Champions League Trophy Tour of Asia reached the Indonesian capital Jakarta today. The trophy is visiting five countries over a six-week period to celebrate Europe's premier club competition. The UEFA Champions League Trophy Tour - presented by Heineken - kicked off in Tokyo last week, and will move to Hong Kong (China, 16-18 March), Kuala Lumpur (Malaysia, 22-25 March), and the Thai cities of Bangkok (30 March-1 April) and Pattaya (6-8 April).

In each stop, the UEFA Champions League Trophy Tour will be launched to the media and fans. The trophy will then be the centrepiece of a display in the city centre, supported by five pillars containing competition memorabilia, statistics and video footage giving local fans the opportunity to find out more about the tournament and be pictured with the silverware.

According to recent research, interest in the UEFA Champions League is actually higher in Indonesia than in any other sampled country, including the top six in Europe. Source: UEFA Official Site, 2nd March 2007


WHAT’S THE BUZZ?

Haakonsen Sets New World Record at 9.8M

Competing against the world's best snowboarders, Terje Haakonsen (NOR) pulled off a Backside 360 9.8 metres off the quarterpipe to claim a groundbreaking new World Record - beating Heikki Sorsa's previously unbeaten 9.3m air from The Arctic Challenge 2001. Haakonsen (NOR) was also the overall winner of today's qualification.Fourteen best riders qualified for Saturday's Semi Finals, where they compete for eight Super Final spots at the TTR FIVE(5)STAR Oakley Arctic Challenge. Watch his record-breaking jump here. Source: TTR World Snowboard Tour Official Site, 2nd March 2007


INFO BOX

2006 Top Money Earners
Soccer players generate the biggest earners: 44 out of the top-50 earners play the game. The top-10 are worth nearly 200 million euros:
1. Zinedine Zidane: In 2006 he made €13 million. That’s 1.6 million less than the year before, but still not bad for one who’s retired.
2. Thierry Henry: €12.4 million, up 2.7 million from the year before.
3. Tony Parker: €9.8 million, a big jump from €5.4 million in 2005.
4. Claude Makelele: €7.2 million, also a huge jump from €1,3 million
5. Patrick Vieira: €7.1 million, down €0.7 million from 2005
6. Amélie Mauresmo: netted €6,8 million compared to €2.8 million in the previous year
7. Lilian Thuram: €6.1 million, up €0.6 million from previous year
8. William Gallas: €5.8 million, up €0.9 million
9. David Trezeguet: €5.7 million, up €0.6 million
10. Willy Sagnol: €5.2 million, up €2.6 million
Source: L'Equipe Magazine, 5th March 2007


SPORTS SHORTS

* Singapore’s digital cable television subscribers have crossed the 300,000 household mark for the first time. 66% – or 322,000 – of Singapore’s cable households were digital at the end of 2006, compared to 197,000 (44% penetration) at the end of 2005, cable TV platform, StarHub says. This year, digital cable subs are expected to ramp up much more quickly as rival platforms – particularly SingTel, which launches its IPTV platform in the next few months – make their pitch for the eyes and wallets of Singapore’s one million households. Source: Content Asia, Issue 24, 5th–8th March 2007

* Singapore-based ESPN Star Sports starts broadcasting its ESPN Malaysian Sports Centre programme in April. The 30-minute show will air five times a day. Local reports say ministry officials will be part of the editorial team, and will be involved in shaping news coverage. ESS also has sports centres in Singapore and Hong Kong. Source: Content Asia, Issue 24, 5th–8th March 2007

* Japanese multi-system operator, Jupiter Telecommunications Co Ltd, added 484,700 subscribers in January – an increase of 22.6%. The total subs base in the 24 managed franchises was 2.63 million at Jan. 31. Combined revenue generating units (RGUs) for cable television, high-speed Internet access and telephony services reached approximately 4.54 million, up 832,200 or 22.4%. The bundle ratio (average number of services received per subscribing household) was unchanged at 1.73. Source: Content Asia, Issue 24, 5th–8th March 2007

* Macau is to open its market to internet and telephone wagering firms. The Macau Gaming Commission could introduce legislation to regulate "remote gaming" (online and telephone gaming) within the next two years. With the US ban last year on its citizens wagering online, "i-gaming" companies have found a focus on new markets in Asia. The new regulation may affect Macau's relationship with China, which announced a three-month crackdown on internet gambling that aims to further "purify the cyber environment," in late February. Source: China Economic Review, 5th March 2007

* China’s State Administration of Radio, Film and Television (SARFT) has opened a mobile television door to U.S. satellite company and pay-TV service provider, EchoStar. The SARFT is notorious for constantly tightening environments for foreign TV companies, but the regulator said it had chosen an EchoStar affiliate in Hong Kong as the primary provider of S-band satellite capacity for China’s new mobile video project. The platform is scheduled to be up and running by the Beijing 2008 Olympics. Source: Content Asia, Issue 24, 5th–8th March 2007

* Irdeto and Huawei Technologies have agreed to provide end-to-end IPTV solutions to Pakistan Telecommunication Co Ltd (PTCL). PTCL expects to launch IPTV services for a first-phase group of 20,000 subscribers in the first half of 2007. Irdeto’s IPTV security solution integrated into the Huawei IPTV system provides for full video product and service offering, including broadcast TV, video on demand, PVR and Time Shift TV. Within the Irdeto IPTV security framework, content is securely stored and distributed across broadband IP network and corresponding content rights can be managed on individual subscriber and/or device basis. Source: TV Over Net, 1st March 2007

* Indian mobile phone operators added 6.8 million wireless subscribers in January 2007, a growth of 3.51%, according to the Telecom Regulatory Authority of India (TRAI). This is up from the previous month’s 6.48 million. At the end of January 2007 total wireless (GSM, CDMA and WLL-F) subscribers were 156.31 million. India has over 40 million fixed line subs. Telephone penetration is at 17.45%, up significantly from 12% in January last year. Source: Content Asia, Issue 24, 5th–8th March 2007

* China Mobile will build TD-SCDMA commercial networks in eight cities, Beijing, Shanghai, Tianjin, Shenyang, Guangzhou, Shenzhen, Qinhuangdao and Xiamen. Earlier reports said that TD-SCDMA procurement bids will be worth 26.7 billion yuan ($3.4 billion) from three major telecom operators, China Mobile, China Telecom, and China Netcom. The money will be used to buy network equipment and mobile handsets. Source: Xinhua News Agency on Telecom Asia, 5th March 2007

* China Mobile added a record 4.86 million new subscribers in January – a monthly high and significantly more than the 250,000 fixed line users added in January by rival China Telecom. The company, which now has upwards of 306 million users, attributed the growth to its push into rural areas and its new free incoming-call packages. China Telecom has 223 million fixed line users, and just over 29 million broadband users. Source: Content Asia, Issue 24, 5th–8th March 2007

* The first professional football league in Bangladesh launches today and Asian Football Confederation (AFC) president Mohamed Bin Hammam believes that it will act as a catalyst for the development of the game. The Bangladesh Professional Football League will operate under the wing of the AFC’s Vision Bangladesh project and Bin Hammam stated that the Vision Asia programme holds the key to unleashing the potential of football across the vast continent. Source: Football Insider, 2nd March 2007

* The Bangladesh Football Federation (BFF) has made a deal with digital service Channel-i to show live coverage of the new domestic B. League, scheduled to kick-off today. The channel will not pay a rights fee, reported the Daily Star. The 11-team league is being launched under a pilot programme of the Asian Football Confederation. Source: Football Insider, 2nd March 2007

* China accounts for 20% of page-views on the National Basketball Association's (NBA) official website, NBA.com, according to NBA Entertainment. The website has more visitors from outside the USA than the domestic market. Source: Football Insider, 2nd March 2007

* Qatar's Qtel will commercially offer Digital Video Broadcasting-Handheld (DVB-H) in Qatar this year. Qatar is the first country in the Middle East region to provide DVB. The service has been on trial since December. Qtel Executive Director Sheikh Fahad Jassim al-Thani said television programmes from some 13 popular broadcasters including Aljazeera, CNN, Cartoon Network, and QTV were being beamed across Qtel's DVB-H network. Source: Asia-Pacific Broadcast Union, 2nd March 2007

* Ministry officials and business leaders from Korea are touring the world to promote four bids to host international events. Daegu is bidding to host the 2011 athletics World Championships, PyeongChang wants to host the 2014 winter Olympic Games and Incheon is in the running to stage the 2014 Asian Games. There is also a bid from Yeosoo to host the 2012 World Expo. Source: Sportcal, 2nd March 2007

* The German soccer federation (DFB) has posted a pre-tax profit of €155 million ($204 million) for last year’s soccer World Cup in Germany, €20 million higher than had been estimated in September. Revenue from the tournament, which ran from June 9 to July 9, totalled €557 million, while costs came in at €402 million. Germany was widely praised for its organisation of the tournament, which was boosted by the performance of the home team in reaching the semi-finals where it lost to eventual champions Italy. Source: Sportcal, 2nd March 2007

* KBL Powerboat Management, the promoter of the Powerboat P1 World Championship, the sport’s top inland series, has changed its name to make clear its association with the series. From now on, the London-based company will be known as Powerboat P1 Management. Source: Sportcal, 2nd March 2007


MORE NEWS

Hong Kong/New Media: 3G TV Not Broadcasting

Hong Kong’s Broadcasting Authority has knocked back attempts to force the territory’s four 3G mobile operators into the Special Administrative Region’s television broadcasting regulatory framework. At the end of last month, the Broadcasting Authority said that mobile television services would “not fall within the definition of non-domestic television programme service as the services were primarily targeting Hong Kong.”

This meant that the mobile television services being offered were not licensable broadcasting services under the Broadcasting Ordinance, the Broadcasting Authority ruled. The Broadcasting Authority’s ruling followed a similar decision by the Commissioner for Television and Entertainment Licensing (CTEL). An appeal against the decision was lodged by an unidentified member of the public.

Hong Kong’s four 3G operators are Hong Kong CSL Limited, Hutchison Telephone Company Limited, SmarTone 3G Limited and Sunday 3G (Hong Kong) Limited. Source: Content Asia, Issue 24, 5th–8th March 2007

Asia/New Media: Asians Accept TV and Movie Downloads with Advertising

A new online survey across six Asian markets found that 28% of respondents were interested in paying US$1 to download a 30-minute television show, accompanied by advertising. When offered new movies supported by advertising for the same price, even more respondents (62%) said they would be willing to pay for online downloads.

The survey also offered the option to pay US$2 to buy the same content without advertising, but fewer respondents were willing to pay for TV shows (20%) or movies (53%) at the higher price, suggesting that Asian audiences would welcome advertising messages that subsidise the cost of online content downloads.

The survey also found that almost half (49%) of all respondents across the six Asian markets had paid to download content, ranging from the most likely buyers in China (67%) and Taiwan (62%) to 40% in Singapore and 38% in Australia. MindShare Asia Pacific Insights Director James Chadwick said: “This new data suggests a massive demand in Asia for downloading digital content, and points to the potential for a win-win advertising model in the future.”

MindShare conducted the survey among a total of 1,500 15-to-35-year-old Internet users in November 2006, using Pulse Group’s research panel across Australia, China, India, Malaysia, Singapore and Taiwan (250 respondents from each market). Source: ADOI, 5th March 2007

Asia/General: Kenyon - AFC Deal 'Crucial' For Chelsea Profile

Chelsea chief executive Peter Kenyon has said that the club’s new agreement with the Asian Football Confederation (AFC) was a crucial step in building the club’s international profile. Speaking after signing the deal that made the Premiership champion an Official Vision Asia Football Development Partner for the next four years, Kenyon said Chelsea is looking to build itself internationally through engagement with local development programmes like Vision Asia.

Under the agreement, Chelsea will sponsor and aid the development of the AFC’s grass-roots football programmes in China that currently have five active projects in Qingdao, Wuhan, Chengdu, Nanjing and Zibo. The agreement will also provide opportunities for young players selected by the AFC to travel to London and train with their relevant age group at Chelsea. The AFC Player of the Year award will also be given the opportunity to train at Chelsea for a month although both sides stressed that the deal does not give the club first option on the best young players from China. Source: Football Insider, 2nd March 2007

China/General: Fixed Line Rivals Agree to ‘Cooperate’

China's two major fixed-line telephone operators have signed an agreement to confine each other to their major geographical market to limit competition, according to the Beijing Times. China Telecom, which operates in central and southern China, and China Netcom which is based in the northern region, were split off from the former nationwide monopoly China Telecom to spur competition in the sector.

Another source quoted an expert from the Ministry of Information Industry as saying that the agreement is good for the operators, who may be able to avoid duplicate investments. In January, China Netcom sold its assets in Guangdong and Shanghai municipality to its parent company for 3.5 billion yuan ($437.5 million), a sign that China Netcom was withdrawing from the southern market.

The agreement will help the two fixed-line operators counter cellular operators, as some customers, encouraged by caller-pay schemes introduced by China Mobile, switch entirely to cellular. Under the new China Mobile charging scheme, subscribers who buy monthly prepaid fee packages no longer pay for receiving calls, just like fixed line users. Source: Telecom Asia, 5th March 2007

Elsewhere/New Media: Barcelona Poised For Web TV Launch

FC Barcelona plans to launch broadband television services in coming weeks. Barça TV Online will offer video content from the club’s digital television channel, Barça TV, but in a trimmed-down offering, to be available on a video-on-demand (VOD) basis. Servecast will provide the streaming solution for Barcelona’s new online service.

Omar Berrada, Barcelona’s media business development manager, expressed confidence that the new initiative would not be a threat to the existing digital service, which has about 60,000 subscribers. Barça TV, featuring about 30 original hours per week, is available on Digital+ as well as Telefónica’s new IPTV platform Imagenio. The television channel is able to show de layed matches from the Primera División - a prime selling point - while the broadband channel will be more limited in its match coverage.

The main point of access for the new online television channel will be the club’s official website fcbarcelona.cat. The service will be available in Catalan, Spanish and English. The Barcelona website receives 1.5 million unique visitors per month, generating 20 million page views. About 50% of the traffic is from outside Spain. Source: Sports Media, 2nd March 2007


ARTICLES, COMMENTS & OPINIONS

U.S. Sports Organizations Looking to Score in China

It is no secret that companies across the globe see China as a potential gold mine. As the world's most populous country continues its rapid economic growth, firms from all over the world have been investing billions of dollars there. As the Chinese economy develops, the sports market is growing and U.S. professional sports leagues are looking to tap into this enticing market.

The National Football League International is hosting the first preseason U.S. football game in China on Aug. 9, and Mark Waller, senior vice president of NFL International, sees that as a big platform to raise awareness of the game. He sees China as an "incredibly exciting" market, not only for the NFL, but also for other sports leagues.

The most intriguing number about the Chinese sports industry, however, maybe the country's population. China's population will be 1.36 billion by 2010 and is expected to increase by 200 million over the next 30 years. The current population of China is more than quadruple that of the United States. But Wayne McDonnell, professor of sports management at New York University, asks "What type of marketing strategy and long-term growth plan can sports leagues or franchises develop for China?"

One answer can be found at the National Basketball Association. Since 2002, the NBA has had the good fortune of having the biggest professional sports star in China, Yao Ming. But it is the NBA's continuous effort in various grassroots programs, clinics and camps going back 20 years that helped pave the way for its current market success. As a result, the NBA is the most popular sports league in China, and today 300 million people in China play basketball.

The NBA is celebrating its 20th year of broadcasting games in China. Fifty-one TV stations in China are telecasting NBA games now with an average of 558,100 viewers per broadcast. In addition, NBA.com/China has 12 million page views on average per day and had 8 million unique page visitors per month last season. Heidi Ueberroth, president of NBA International Business Operations, says that China is the largest market for the NBA outside of the United States. Ueberroth projects a 30% annual growth rate for the NBA in China, where the sports market is estimated to be a multibillion dollar industry.

Major League Baseball began a new phase of its marketing effort in January, when the New York Yankees and the MLB announced their first strategic alliance with the Chinese Baseball Association. Under the partnership, the CBA will send staff to the Yankees' facilities in order to learn more about baseball, and the Yankees and the MLB will send players, coaches, and training personnel to China. The MLB has high hopes to make inroads into China's lucrative and rapidly growing sports market.

In fact, the MLB is planning to open an office in China within a year. That will enable swifter business operations and hopefully bring the first ever regular-season game in China. Baseball will be an Olympic sport in Beijing in 2008, which should further heighten interest in the game.

Meanwhile, some foreign companies in China have encountered difficulties doing business there. "The biggest issue for the sports industry is trademark and intellectual property protection," said Dan Harris, a business attorney specializing in China, who also writes for chinalawblog.com. "You can find fake NBA shirts anywhere in China. What you've got to do is register your trademark and go after the people who violate it."

U.S. sports entities have not publicly expressed any concerns over intellectual property protection or the difficulties of doing business in China. Rather, they say the biggest challenge in this quickly evolving market is just keeping up with the opportunities for growth. "The NBA has 50 people in four offices in Greater China," Ueberroth said. "And we feel like we should have 500 people there, at least." Eugene Kim comments on Yomiuri Online, 5th March 2007