Monday, 14th January 2008

SPORTS SHORTS

* A replay of a controversial Asian Olympic handball qualifying tournament that took place earlier this year will be staged in Japan, the original host country, despite the Asian Handball Federation’s rejection of the International Handball Federation’s request to reschedule the tournament. Earlier reports had indicated that the replay might take place in Romania. The AHF was reported to have banned its member states from hosting or taking part in the replay, on the basis that ‘there were no reasonable legal reasons behind this step.’ The IHF ruled that the tournament should be replayed after recording 38 questionable refereeing decisions in a game in which Kuwait surprisingly beat South Korea 28-20. The men’s qualifying tournament for next year’s Beijing Olympics took place in Tokyo in September. Sportcal, 11th Jan 2008

* Mobile phone boutique chain Mobile Magic today announced the launch of Media Magic, a company that is to offer an aggregation and retail platform for legal, rich mobile content in an offline format. Hungama Mobile, which has more than 70% market-share in the mobile content business in South Asia, has also tied up with Media Magic to distribute Hungama's rich content through their retail platform. IndianTelevision.com, 11th Jan 2008

* Pixel Media has won the contract to sell advertising across National Basketball Association's NBA.com in Hong Kong, Malaysia and Singapore. The appointment is not Pixel's first foray into the sports arena, the listed company has existing partnerships with Atnext Soccer, AppleDaily Sports in Hong Kong and Sohu Sports in China. Late last year NBA China signed 11 major brands including adidas, Coca Cola, DHL, Gatorade, Lenovo and McDonald's as major partners. The Venetian Macao has teamed up with NBA to organise a Special Olympics basketball clinics. Around Asia, NBA.com reaches over 5 million unique users each month, with over 40 million page views. Marketing Interactive, 11th Jan 2008

* Al Jazeera English has announced a deal with leading cable operator, Hong Kong Cable, for the channel to broadcast in Hong Kong. Al Jazeera will debut on Hong Kong Cable on 16 January 2008. The channel claims to reach over 100 million households worldwide. Al Jazeera English says that it is dedicated to building its presence across Asia to give viewers access to its content. The channel’s editorial mission to transform global news is supported in Asia by its Kuala Lumpur Broadcast Centre, dozens of Asian bureaus and correspondents that include household names such as news anchors Veronica Pedrosa and Teymoor Nabili. IndianTelevision.com, 12th Jan 2008

* Senior Tokyo 2016 officials personally delivered their city’s Application File to host the Olympic and Paralympic Games in 2016 to the International Olympic Committee at its Lausanne headquarters. Tokyo 2016 submitted the city's File (Response to the IOC Questionnaire for 2016 Applicant Cities) four days ahead of the IOC's January 14 deadline. Sport Business, 11th Jan 2008

* Canal Plus said it will ask a Paris court to suspend the French football league’s TV rights tender next week. The French league, Ligue de Football Professionnel, tendered its rights on November 30 and wants to conclude the auction process by the end of January. Canal Plus presently holds the live rights for the league in a deal that expires at the end of this season and has challenged the tender. It is contesting the French league's plans to negotiate packages with multiple operators, its plan to exercise ownership of the TV images and the minimum bidding price the league has set. A ruling is due in the case on February 19 and Canal Plus wants the courts to suspend the tender until then. Sport Business, Sportcal, 11th Jan 2008

* The www.sport1.de website will show all 48 games of the forthcoming European Handball Federation Euro 2008 event in Norway, which will run from January 17-27. The site struck an agreement with Infront Sports & Media, which is responsible for distributing the tournament's media rights. The games will be aired live for around 3.50 euros, while a 'team passport' can be purchased for €15 and all 48 matches can be snapped up for €29. Sports Media, Sports e-Media, 11th Jan 2008

* Manchester United has confirmed it will tour South Africa this summer , in a move that will further bolster the club's popularity in the region. It is believed United will repeat its successful trip of 2006, when it took on Kaizer Chiefs and the Orlando Pirates, playing in Durban, Cape Town and Pretoria. The Barclays Premier League champion will be in South Africa from July 19 to 26. United could possibly also visit Nigeria on its way back from South Africa, as it looks to capitalise on its vast popularity in Africa, although nothing definite has been arranged. Football Insider, 11th Jan 2008

* China is so keen to keep foreign investment flowing that it probably will let private web sites work around strict new rules limiting video-sharing to state-controlled companies, analysts say. China-based web sites already need a government license that only companies majority-owned by Chinese nationals can get, and managers of private sites based in China say they already excise "inappropriate" content. But the new regulations, issued December 29 and scheduled to take effect January 31, also require that the state have a controlling interest in any video entertainment web site. Telecomasia.net, 14th Jan 2008


MORE NEWS

India/Rights: ESPN Star to Bid for Broadcast Rights of IPL

BCCI’s Indian Premier League (IPL) has got a leg up. Sports broadcast major ESPN Star Sports (ESS) on Friday said that it is going to bid for the domestic league’s broadcasting rights, reposing faith in the T20 format. According to ESS, in terms of advertising, IPL matches can easily garner a minimum base price of $1 million per match. For ESS, this would be the first time that it’s ready to put in huge investments to bag domestic cricket rights.

“This is the first time that domestic cricket in India is being hived off as a separate property. In the past, whoever won the rights for BCCI events got domestic cricket automatically,” he said. This is also the first time that domestic cricket has got a huge makeover. The past statistics clearly indicate that a T20 match has nearly 40-50% higher viewership than a one-dayer. In addition, the format successfully reaches out to all kind of viewership.

“One can clearly see that the T20 semi-finals and finals attracted the highest female viewership. Therefore, cricket now has all kinds of viewership and not just male viewers,” said Mr Venkateish. Overall, the advertising pie has been largely dominated by cricket with nearly 90% of revenues coming in from the sport. Other sports which are also grabbing eyeballs are Formula 1, international soccer, tennis and hockey.

ESS, which currently has about 550 days of international cricket till 2012 in its kitty, is betting big on IPL. ESS currently holds 60% market share in the sports channels space in India. It has broadcasting rights for the ICC global matches till 2012. EconomicTimes, 12th Jan 2008

Indonesia/Broadcaster: Government Accused of Broadcasting Law Breach

Indonesian parliamentarians have lambasted the government over its controversial decision to withhold the establishment of a networking system with national televisions stations and their local partners, saying it is a serious infringement of the 2002 broadcasting law. The information, foreign affairs and defence commission at the House of Representatives said after its internal meeting that the government should issue a Perpu (a regulation in lieu of law). The regulation would accommodate the decision and would see the government avoid being accused of breaching the law or of conspiracy with television station owners.

Commission member Djoko Susilo said the government could not avoid the accusation because before the decision was made, station owners had also lobbied for an extension of deadlines to establish a network. All 10 private TV stations appeared reluctant to comply with the law because the networking system would see them share profits with local stations in provinces and regencies, reports The Jakarta Post. The Association of Private TV Stations (ATVS) said it had difficulty establishing joint companies with local television stations and procuring expensive devices required to establish the networks. The broadcasting media law gives three years to national television stations to set up a network with local stations. This period could be extended for another two years to promote local culture, avoid monopolies and encourage economic democracy in the broadcasting industry. ABU, 11th Jan 2008

Vietnam/New Media: Chunghwa Telecom May Buy Stake in Carrier as Sales Slow

Chunghwa Telecom Co., Taiwan's largest telephone company, is in talks to buy a stake in a Vietnamese carrier as sales stagnate in its home market. Expanding into Vietnam, Southeast Asia's fastest growing economy, may help Ho-chen spur growth after Chunghwa's sales in the last four years failed to exceed 2 percent in a market where phone subscriptions exceed the island's 22.9 million population. Japan's NTT DoCoMo Inc. and Singapore Telecommunications Ltd. have also said they're interested in investing in Vietnam.

Sales and profit at the Taipei-based phone operator, which generates almost all its revenue from the island, will remain ``about the same'' this year, compared with last year, Ho-chen said. Sales rose 1.1 percent to NT$186.3 billion ($5.7 billion) in 2007, the company said yesterday. Vietnam's economy last year expanded 8.5 percent, the fastest pace since 1996, led by manufacturing and services, according to government data. Foreign direct investment jumped to more than $20 billion in 2007, from $12 billion a year earlier, according to the nation's government.

Vietnam Military Telecommunications Corp., or Viettel, is the country's largest mobile-phone operator, based on the 25 million registered subscribers the company said it had at the end of 2007. Vietnam Mobile Telecom Services Co., or MobiFone, is the second biggest, with more than 13 million registered users, followed by Vinaphone Telecommunication Services Co., with 12 million. All three carriers are based in Hanoi.

About seven companies in Asia and Europe, including Singtel and Vodafone Group Plc, may seek to buy a stake in MobiFone when it holds an initial public offering this year, Managing Director Le Ngoc Minh said in November. NTT DoCoMo, Japan's largest mobile-phone operator, said in November the company wants to invest in a Vietnamese operator. Bloomberg Asia, 10th Jan 2008

Mid-East/New Media: Dubai TV Launches Mobile Video Portal In The Middle East

Dubai TV has launched an interactive mobile portal with local partner Qanawat, using U-Turn Media Group’s mobile media delivery platform. The portal is branded Dubai TV and contains a wide selection of multimedia, including downloadable video previews of upcoming TV shows, daily sporting and weather information, ring-tones, games and a weekly competition. Marketing of the service includes regular TV spots in the four countries where the service is offered, as well as a comprehensive SMS campaign in United Arab Emirates.

There are no plans to charge consumers directly for the service, although as user numbers grow advertising within the portal will be introduced in the form of banner ads and short pre-play video announcements. The long term strategy will be to deliver targeted advertising to consumers based on their location, age and preferences.

The Dubai TV portal is compatible with most handsets that have a colour screen and is available as an on device portal (ODP) which is installed onto the phone or as a WAP site. The ODP version allows users to launch the service by clicking on a branded icon residing on the desktop of the phone, with no manual configuration required. Updates to the portal are performed in real time over the air, ensuring the latest version of content is presented.

Users in all four countries, regardless of the network operator being used, can access the service by sending a simple SMS request. This pan-regional, carrier independent mobile service is the first of its kind in the Middle East and is testament to the scope of the flexible U-Turn platform. The Dubai TV mobile offering was launched in contrast to the path taken by several other broadcasters who have aligned themselves with operators and are offering their programming through carrier branded services. It is a unique situation because the content, branding advertising and promotion are controlled by Dubai TV alone. ITB Cellular, 7th Jan 2008

India/General: Force India in the Market for Local Sponsors

Vijay Mallya, the co-owner of the Force India, the country’s first Formula 1 team, says he has been in talks with various major domestic firms interested in supporting the operation. Speaking at the team’s official launch on Thursday, Mallya said: ‘Several big companies have come to me already. They are a bit unfamiliar with the sponsorship of F1, the way the contracts are written, the exposure, the way it is measured etc. But that is a process that goes hand-in-hand with any new initiative.’ Mallya and Netherlands businessman Michiel de Mol are heading up the team, which was acquired from Dutch sports car manufacturer Spyker last October. Veteran Italian Giancarlo Fisichella, who has arrived from Renault, and Adrian Sutil, who was a rookie with Spyker last year, will drive for Force India in 2008.

Mallya hopes to tap into the growing Indian economy and generate a following for motor racing in the country of 1.1 billion people. Cricket is by far the most popular sport, but the profile of Formula 1 will be lifted by the emergence of Force India and the staging of a first grand prix in the country in 2010. Meanwhile, David Richards, the head of Prodrive team, has admitted that it is unlikely that they will be able to enter Formula 1 in 2009. Prodrive had hoped to join the grid this year but was forced to delay its plans because of a legal challenge to its proposal to use cars built and designed by McLaren-Mercedes.

The rival Williams team is opposed to the use of so-called ‘customer cars’ in Formula 1 and their status has yet to be clarified as a new Concorde Agreement covering commercial arrangements in the sport remains unsigned. Talks on the terms of the agreement were due to take place today, but Richards says that there is now little chance of the Formula 1 venture being pursued.

The BMW Sauber team have formed a partnership with T-Systems, the business customer subsidiary of German telecoms giant Deutsche Telekom. Under the terms of the deal, T-Systems will develop information and communication technology (ICT) solutions for the team. The company said it has now set up a high-speed data connection between engine manufacturer BMW’s headquarters in Munich and the team’s base in Hinwil, near Zurich. The T-Systems logo will be displayed in the cockpit area and on the nose of the BMW Sauber F1.08, as well as on team clothing and the drivers’ helmets. Sportcal, 11th Jan 2008

Elsewhere/Rights: IOC Agrees Deal for Advice on European Olympics Rights

The International Olympic Committee has chosen a new consultancy partner for the European broadcast rights for the 2014 winter Olympics in Sochi and 2016 summer games, and will unveil it in ‘a couple of weeks.’ However, the IOC has not discounted working with long-term partner the European Broadcasting Union, the umbrella body of mainly public-service broadcasters, according to Timo Lumme, the managing director of IOC Television and Marketing Services.

Having issued a tender in August for the advisory role, the IOC is now finalising a contract with the new partner, either an agency or a broadcast consultancy, which will offer specialist knowledge of different territories and advice upon the rapidly-changing broadcast market. The move is part of a review of the IOC’s future European broadcast strategy. The IOC traditionally agreed a single deal in Europe with the EBU and Lumme said: ‘We are not ruling anything out at this stage. We need to understand how the market has changed and the sales process will not exclude anybody.’

In 2004, the IOC flirted publicly with the idea of agreeing deals with broadcasters and/or agencies in Europe on a country-by-country basis for the 2010 and 2012 games. However, it eventually returned to the EBU and signed a deal worth $756.6 million (plus a further $154 million in additional programming and promotional efforts to support the Olympic brand outside the games) for 51 European countries excluding Italy.

The EBU deal allowed its members to exploit new media rights as part of the overall contract, but the growth of new media coverage and the dramatic rise in their value has led to a strategic re-think by the IOC. The IOC has become increasingly sophisticated in its broadcast rights strategy following the formation of IOC Television and Marketing Services in 2005, helping it to grow the value of existing contracts and develop a significant revenue stream from the sale of new media rights.

Lumme revealed that for the 2008 Beijing Olympics, a total of 163 territories are already under contract for new media rights, with negotiations still to be completed in some territories. The figure compares to 23 territories for the 2006 winter Olympics in Turin, and virtually no internet coverage of the 2004 Olympics in Athens. Lumme said that the IOC’s new media revenue expectations have increased. He has predicted that 15% of overall broadcast revenue for the 2014 and 2016 games will come from new media, and around 5 per cent for 2010 and 2012.

The IOC recently awarded the new media rights in China for the 2008 Olympics to CCTV, the Chinese stage broadcaster, for ‘a significant rights fee.’ Lumme said that there were three important elements to the CCTV deal – the coverage and production values the broadcaster can deliver, the revenue side and the upkeep of anti-piracy laws. He also said that, in doing the deal with CCTV, the IOC needed to make sure that its ‘requirements on the mobile side would be passed on’ when the broadcaster sub-licenses the mobile rights. He said: ‘We have sold CCTV gatekeeper rights for new media and they will look to sell on to one or two mobile operators.’

Meanwhile, Lumme claimed that the IOC’s success in selling broadcast rights on a ‘time zone-neutral’ basis had helped it to ‘dilute’ the effect of different time zones on the value of rights. He explained, ‘If you look at Olympic broadcast rights over time, the IOC has very successfully marketed the rights on a time zone-neutral basis, with rights sometimes sold before the host is known, or deals done for multiple games, helping to dilute the one games time zone factor. Sportcal, 11th Jan 2008