Wednesday, 7th March 2007

HEADLINES OF THE DAY

iTV Stays on Air as Court Considers Fate

Thailand's first independent TV station remained on the air on Wednesday morning, even after the government ordered it shut down and all 1,010 staff terminated. On-air news and commentary presenters said the station would likely go dark "tonight" (Wednesday evening Thailand time). They said the staff kept the station on the air themselves, and defy the government order, after filing a petition with the Central Administrative Court. A ruling on the petition could come today. The cabinet had agreed to "temporarily" halt broadcasts by iTV effective at midnight on Tuesday, until a further ruling from the Council of State, expected to be on Friday at the earliest. Source: Bangkok Post, 7th March 2007

Thailand's government has revoked iTV Pcl's television concession, taking control of the last Thai independent network after it failed to pay 100 billion baht ($2.8 billion) in penalties. iTV said it couldn't pay the penalties by yesterday's deadline, and the government said it will suspend its broadcasts. iTV's seizure puts all six free-to-air Thai television networks in the government's hands and is expected to raise concerns among foreign investors and worsen Thailand's relationship with Singapore, whose state-owned Temasek Holdings Pte bought a stake in iTV from former Premier Thaksin Shinawatra and his family before he was ousted in a September 2006 coup. Source: Bloomberg, 7th March 2007

The Mass Communication Organisation of Thailand (MCOT) labour union is sceptical whether the company can afford to run the transitional operations of iTV and has asked if the move is justified. The union wanted to know what drove MCOT to agree to manage iTV, whose broadcasting concession will be revoked because it is unable to pay overdue concession fees and a massive fine. MCOT is expected to be hired to operate the station, which will likely be renamed Thailand Independent Television (T-iTV) when it goes on air under its new management on Wednesday. Source: Asia-Pacific Broadcast Union, 7th March 2007

Despite promises to the contrary and amid pleas from employees not to, the Thai government was expected to pull formerly-independent channel iTV off air after the official revocation of its concession (licence to broadcast) at midnight on March 6/7. iTV was ordered in December to pay fines and unpaid concession fees totaling nearly Baht100 billion (US$3 billion) after it was found guilty of manipulating the terms of its concession. The government had earlier said that iTV could continue broadcasting and employees could remain at their posts but changed its decision at the beginning of this week. Source: Rapid TV News, 7th March 2007

SPORTS SHORTS

* Fox Sports will begin streaming soccer matches from the Copa Libertadores 2007 over the internet to viewers in the USA. The News Corp-owned network has tied up with video streaming specialist Vividas to provide US soccer fans with access to 10 live games from the tournament. The first few matches will be offered free as a promotion and subsequent games will cost US$5.99 each. The deal follows a successful technical trial last October when Vividas live-streamed two European Championship qualifiers to the US. Source: C21 Media, EUFootball.biz, 6th March 2007

* EBay partner TOM Online would become a full subsidiary of its Hong Kong-listed parent. Internet and media company TOM Group Ltd. plans to buy out its internet unit TOM Online Inc., according to a statement filed with the Hong Kong stock exchange Monday. Both stocks were suspended from trading Monday, pending an announcement on the proposal, the statement said. TOM Group, which is controlled by Hong Kong tycoon Li Ka-shing, owns 66.6% of TOM Online. Source: Total Content + Media, 6th March 2007

* Thailand will be allowed to co-host the 2007 Asian Cup after Tourism and Sports Minister Suwit Yodmanee confirmed that the Rajamangala National Stadium will be ready in time for the July 7 kick-off. The Asian Football Confederation (AFC) will send observers to check the stadium’s progress today and tomorrow before AFC president Mohamed bin Hammam pays a visit on March 17 to inspect the ground. Source: Sports Media, 6th March 2007

* The national Olympic soccer teams of Bahrain and Saudi Arabia are to meet in a friendly match ahead of their forthcoming 2008 Beijing Olympic qualifying matches. The match will take place in Dammam, Saudi Arabia on Friday 9 March. Bahrain then play Kuwait on March 14 in an Olympic qualifying match while Saudi Arabia face Iran. Source: Sportcal, 6th March 2007

* The International Hockey Federation (FIH) has concluded a deal with Sunset & Vine, program makers of Gillette World Sport to feature all FIH major events in 2007. GWS is the world’s most-watched weekly sports magazine program, airing on 193 networks in 109 countries worldwide. Each 30 minute program features coverage of the best sporting action from that week in football, motor racing, athletics, tennis and extreme sports. This action is supplemented by the show's features and profiles of the world's greatest sportsmen and women. Source: Sports e-Media, 6th March 2007

* YouTube has launched an NBA Channel featuring game highlights and other original content uploaded by the NBA along with videos submitted by YouTube users. Dubbed “Post Up the NBA,” the user-submitted content will be rated by viewers, and each week’s top videos will be assembled into an “NBA Top 10 on YouTube” highlight reel. The highlights will air on the NBA’s cable channel. The NBA and the NHL are the only two major U.S. sports leagues to have signed content deals with YouTube. Source: Television Broadcast, 6th March 2007

* It’s business as usual at Spectrum Strategy Consultants following the acquisition of the company by Value Partners of Milan. Spectrum’s client portfolio includes BBC, NBC and Globo, and many of Europe’s football clubs, leagues and governing bodies (such as UEFA). Spectrum will remain a separate business and brand within the Value Partners group. Mike Grabiner, the chairman of Spectrum, said the deal would enable Spectrum to exploit “its already rapid international growth, especially in Asia, where the business is growing exponentially”. Source: Sports Media, 6th March 2007


MORE NEWS

The Philippines/New Media: 50% Mobile Phone Penetration

Mobile phone penetration rate in the Philippines may have hit 50% in 2006. The National Telecommunication Commission (NTC) has yet to release its official report, but Globe Telecom president and chief executive Gerry Ablaza said the number of SIMs in use reached 49 million as of end of 2006. But industry players said the number of SIM could not represent the same number of subscribers, as some individuals own more than one SIM belonging to different networks.

Data show that the two largest mobile service providers had a total of over 40 million subscribers as of December 2006. Smart Communications said its subscriber base expanded to cover 25 million as of December 2006. Globe Telecom said it had 15.7 million subscribers as of end 2006 (95% prepaid subscribers), and Sun Cellular, the telecom provider of the Gokongwei Group’s subscriber base was earlier estimated between 1 million to 2 million.

The 50% penetration rate was based on the estimated 43 million mobile phone subscribers, out of the country's 86 million population last year. Source: Telecom Asia, 6th March 2007

Global/Asia/New Media: India, China Lead Internet Growth

The number of Internet users worldwide increased 10% over the past year amid a surge in India, China and Russia, a survey quoted by an AFP report. The AFP report, quoting a study by US market research firm comScore Networks, said that 747 million people aged 15 and up used the Internet worldwide in January 2007, a 10% increase from January 2006.

The US still held the largest number of users with 153 million, but growth was just 2%, comScore survey. The report also said China was second overall with 86.7 million, according to comScore, but growth was 20%. The figure differs from the official Chinese estimate of 137 million, which includes users in cyber cafés and other public locations, the report said.

The strongest growth was seen in India, where number of users increased 33% to 21.1 million, which India led with the eighth largest Internet population, just behind France. Russia saw the number of users up 21% to 12.7 million. In terms of overall Internet users, the highest numbers after the US and China were, in order, Japan, Germany, Britain, South Korea, France, India, Canada and Italy. Source: Telecom Asia, 7th March 2007

Elsewhere/General: MLS Team Owner Swoops for US Soccer Channel

SCP Worldwide, the New York-based sports and media company, has agreed a deal to acquire an 80-per-cent stake in GolTV, the US cable and satellite network dedicated to international soccer. The agreement worth a reported $200 million and investment bank Lehman Brothers and IMG Media are said to be backing the development plans of SCP head Dave Checketts.

The organisers of Major League Soccer are likely to have concerns about Checketts’ acquisition as SCP runs the Real Salt Lake franchise and it is considered inappropriate for an owner-operator to control a network which competes for viewers with MLS media partners. MLS has rights deals with ABC/ESPN, Fox Sports, HD Net and Univision.

GolTV is presently owned by South American soccer agents Francisco Casal and Enzo Francescoli, the latter of whom is a famous former Uruguayan international, and is available in 10 million US homes via cable and satellite. It holds US rights to various top leagues, including Serie A in Italy, La Liga in Spain, the Bundesliga in Germany and the Campeonato Brasileiro in Brazil.

GolTV joins a stable of sports organisations at SCP, which includes NHL ice hockey’s St. Louis Blues as well as the Salt Lake soccer team. It is reported that in a separate deal SCP has picked up exclusive rights to 90 South American World Cup qualifying matches. The company will handle the terrestrial, cable, satellite, broadband, mobile, video-on-demand, DVD and downloadable rights in the USA and its territories, Canada and Puerto Rico.

The South American qualifying competition for the 2010 World Cup, which features Brazil and Argentina, begins in September and runs until November 2009. Source: Sportcal, Sport Business, St. Louis Business Journal, EUFootball.biz, Variety, 6th March 2007

Elsewhere/Rights: Selig Dismisses Concerns over DirecTV MLB Rights Deal

Bud Selig, the Major League Baseball commissioner, has dismissed concerns over a planned $700-million television rights deal with satellite broadcaster DirecTV as ‘ridiculous,’ denying that the deal would unfairly deprive viewers of access to televised games. The Federal Communications Commission, the US media regulator, has been asked by Senator John Kerry to investigate the deal.

DirecTV is set to snap up the exclusive rights to the Extra Innings package of out-of-market Major League Baseball games and become the home of a new 24-hour baseball channel. DirecTV is available in around 15 million homes but non-subscribers will be able to access Extra Innings if they have broadband and sign up for the service on the MLB website.

Extra Innings has been available via cable as well as DirecTV and its satellite rival the Dish Network, but this arrangement will cease if the new seven-year deal with DirecTV comes to fruition. Extra Innings gives viewers access to up to 60 games a week from local markets other than their own for an extra fee. Source: Sportcal, Total Content + Media, 6th March 2007