Monday, 17th March 2008

INFO BOX

Global Wi-Fi Hotspots
Info IQ, 14th Mar 2008

The second half of 2007 saw another strong performance for Wi-Fi, as hotspot usage by business users increased 89% over H2 2006. Based on data gathered from over two million sessions during the period, the Index again demonstrated European growth rapidly outpacing the US, with Europe expanding its worldwide share of hotspot use to 40%, up from 31%, as America's representation dropped from 59% to 51%. Also, London increased its lead as the world capital of Wi-Fi with usage rising by 156% over the same time period last year, according to a new report by iPass.

Latin America was the latest region to demonstrate exceptional growth in Wi-Fi, with usage skyrocketing 133% over H2 2006 and Brazil debuting on the top 10 country list after tripling its Wi-Fi usage. At the city level, Tokyo placed third with impressive 118% growth, behind London and Singapore and followed by New York. Japan's growth reinforces data from IDC which states that Japan's mobile workforce is increasing at the world's fastest rate.


SPORTS SHORTS

* Maya Entertainment (MEL) and Leander Sport Pvt Ltd (LSPL) have joined forces to produce an animated television series based on sports and fitness . Initially, MEL and LSPL, a sports consultancy floated by Indian tennis player Leander Paes, will work on an animated TV series called 'The Magic Racquet', which promotes the values of an active outdoor lifestyle, healthy eating habits, physical fitness and a winning mindset. Jai Natarajan, executive vice-president and business head of MEL, said: "We have identified multiple content opportunities and are looking at domestic and international exploitation platforms to roll out content in the future." Sports Media, 14th Mar 2008

* Bayern München will embark on an end-of-season tour to Asia as part of the Deutsche Fussball Liga's (DFL) ongoing efforts to promote the domestic game worldwide. Bayern will depart on a 10-day tour on May 18, following the final round of 1.Bundesliga fixtures. They are scheduled to play three games, taking in Indonesia, China and India. Bayern CEO Karl-Heinz Rummenigge said: "We want to show our colours abroad. Asia is a hugely important market, perhaps the most important of all. We aim to showcase the Bundesliga there, and Bayern München as well." The Munich giant will take a strong squad to Asia, minus its stars that are due to turn out at UEFA Euro 2008. Goalkeeping legend Oliver Kahn is likely to play his last game for the club in front of a near 120,000 crowd in the Salt Lake Stadium in Calcutta. Football Insider, 14th Mar 2008

* Prize money for the 2009 Fifa Confederations Cup will be $17.6 million, with the winning team picking up $3.75 million and the runners-up £3.25 million. The third-placed team will earn $2.27 million with $2.25 million going to the fourth-placed team. The teams ranked fifth to eighth will each receive $1.4 million. The prize money reflects the importance of the event, which is seen as a test run for the World Cup itself. Sport Business, 14th Mar 2008

* Commercial broadcaster ITV is to add a further tier to its coverage of Formula 1 by making races, practice sessions and press conferences available live, online. The broadcaster has signed an exclusive one-year deal with Bernie Ecclestone’s Formula One Management. Under the deal, which begins with coverage of this weekend’s Australian Grand Prix, F1 races will be made available to view via ITV.com/F1 and be cross-promoted across the website and during the broadcaster's TV coverage. Each Grand Prix will be available to view for 30 days on ITV.com's catch-up TV service after the race has finished. It is the first time that Friday practice sessions have been shown on television. Sport Business, ATV, C21Media, 14th Mar 2008

* The first round of bidding for the TV rights for Champions League football got underway in the UK with fierce competition expected between the BBC, ITV, Five and pay TV operators Setanta and BSkyB. After receiving yesterday's confidential bids, Uefa, will decide how to structure the rest of the auction in a process likely to take until the autumn. The auction is expected to generate fees of £150 million a year. Current rights holders Sky and ITV pay around £90 million between them, per-year. Commercial broadcasters are questioning whether the BBC should be using licence fee money to bid up the asking price for the rights and highlighting the premium it will have to pay to compensate Uefa’s sponsorship partners, which are guaranteed advertising credits either side of commercial breaks. The BBC’s rivals claim that it will have to pay an extra £10 million. Sport Business, 14th Mar 2008

* IEC in Sports said today that it had agreed a multi-year deal to market the international media rights for Athletissima, the annual IAAF Super Grand Prix athletics meeting in Lausanne. The new deal begins with next year’s meeting. IEC in Sports markets the rights for over 30 athletics events a year. Sportcal, 14th Mar 2008

* Virgin Media will launch Arsenal TV on its TV platform on 18th March. The channel will be free for all Virgin Media's XL TV customers, and included as part of the Setanta Sports pack for TV customers on M or L packages. Arsenal TV will show all Arsenal football matches in full, as well as Arsenal's Ladies and Under 18s teams' games. ATV, 17th Mar 2008

* NEC plans to launch full-scale IPTV business with high-profile NGN (next generation networks) carrier applications and is eyeing to generate 50 bilion yen ($504 million) from this business by 2010. In a statement, NEC said it will target international carriers for its end-to-end IPTV solutions and video delivery systems. telecomasia.net, 17th Mar 2008


MORE NEWS


DTM: Big Contingent of Stars at Launch in Düsseldorf



Wiesbaden/Düsseldorf – Oliver Pocher, Jennifer Paige and Revolverheld: these are the celebrities that are going to travel to Düsseldorf for the DTM Launch – held on 6th April in the sports city of Düsseldorf – and join DTM drivers Ralf Schumacher (Mercedes-Benz), Mattias Ekström (Audi) and all their colleagues, there. From 13.00hrs, German comedian Oliver Pocher is going to present the programme together with ARD presenter Claus Lufen. “Let’s wait and see if I will get the chance off taking the wheel of a DTM car myself,” Pocher says. “Then, I will show the guys how to take a car to its limits. Whatever Ralf Schumacher can do, I can do it just as well – at least.” In addition to demonstration runs of the DTM cars and those racing in its partner series, to donuts and pit-stop simulations, all the visitors will also be provided an attractive music programme.

German band ’Revolverheld’ are going to fire up the audience with their rocking sound and will present Germany’s official Euro song for the 2008 European Football Championship held in Austria and Switzerland. While Jennifer Paige, who conquered the charts all around the world, in the late 1990s, with her smash hit ‘Crush’, will perform several songs of her latest album, ‘Kept Best Secret’. She is going to inspire the crowds just as much as another international top artist who will enter the stage as the surprise guest of the event. The first preparations for the launch will be executed as early as on Monday, 17th March. On this day, a 3x8-metre Ralf Schumacher placard will be installed on the building of the ‘Oberpostdirektion’ (Post Head Office), located at the corner Graf-Adolfs-Platz / Breitestraße. Furthermore, two welcome bridges will be erected at the Königsallee and in the pedestrian area, at the corner Schadowstraße / Blumen Straße. All these activities will be accompanied by a major placard campaign in Greater Düsseldorf.


Thailand/New Media: CAT prepares move towards MVNO model

CAT Telecom is looking to adopt a successful business model called mobile virtual network operator (MVNO) to improve its competitiveness once the concessions it has granted to DTAC and True Move will expire. Man Patthanothai, the Information and Communications Technology minister, said CAT needed to start preparing now for the expiry of the concessions. The DTAC deal will end in 10 years and True Move's has six years to go.

CAT and its sister agency TOT rely heavily on revenue-sharing payments from mobile operators. The payments account for 55% of CAT's revenue. CAT used to have a monopoly on international calls but new technologies have made the business far less lucrative. Under the MVNO model, CAT would form alliances with DTAC and True Move to provide mobile phone service. The model means that a company provides service but does not have its own radio spectrum or all of the infrastructure required.

Man said that CAT would negotiate with DTAC and True Move to rent the mobile network. A joint-venture company would be set up with CAT acting as the MVNO and the private operators acting as marketers. Revenue would be shared in line with the ratio of shareholdings, he said. The model would be attractive to both DTAC and True Move because it would be cheaper than applying for new licences or investing in new networks, Mr Man said. telecomasia.net, 17th Mar 2008

Asia/Broadcaster: ESPN STAR Sports Debuts Formula One Racing

ESPN STAR Sports is launching live telecasts of the Formula One Grand Prix 2008 season, beginning with the ING Australian Grand Prix this month. The channel will air all 18 races, culminating with the Brazil Grand Prix in November. Comprehensive live coverage includes the telecast of the Saturday Qualifying and the Sunday Race, which will be shown across all 17 networks on ESPN STAR Sports.

Complementing the live coverage are ESPN STAR Sports’ pre- and post-race presentations, Race Day and Chequered Flag. Hosted by Steve Dawson and Paula Malai Ali, Race Day and Chequered Flag provide live reports, race analysis and an insight into the people behind the high-speed action. Both programs will also feature racing experts like Julian Bailey, former F1 driver for the Tyrell and Lotus teams; Alex Yoong, A1 Team Malaysia driver; Matthew Marsh, Asian motor-sports personality and Hong Kong’s first Le Mans representative; and Damien Smith, the editor of the British publication Motor Sport Magazine.

The channel’s online platform will also offer extended coverage, up-to-the-minute results and an online column from Steve Slater. The website is also launching exclusive F1-related games from racing fans across the region. Adding to the racing lineup is Engine Block, a weekly motor-sports magazine show that features news, interviews and highlights from the world of motor sports. Presented by Sanjeev Palar and Drinie Aguilar, Engine Block will see the hosts engaging in motor-sports activities of all sorts, such as going for a spin in the Asia Pacific Rally champion's car and sitting shotgun during a professional car stunt show. Worldscreen, 14th Mar 2008

Asia/General: Tour Hits Back at OneAsia Tour Claims

Golf’s Asian Tour has ‘unequivocally’ opposed plans for a rival Asia-Pacific golf tour after the Australian PGA, which is leading plans to introduce the initiative, said that it had gained support for the project from ‘several of the leading golf bodies’ in the Asia-Pacific region. The Asian Tour said in a statement: ‘Elite and major golf tournaments already form the burgeoning Asian Tour schedule and the Asian Tour firmly believe that we are on the correct pathway in developing, promoting and growing professional golf in Asia under the existing tour structure.’

The Australian PGA said earlier today that it had reached an agreement with the Japan Golf Tour Organisation, the China Golf Association and the Korean Golf Association to form a new regional tour ‘aimed at providing the best possible platform to grow elite tournament professional golf [and consolidate] the development of the next generation of champion regional golfers.’ The four associations, knows as the ‘founding parties,’ have appointed an interim board to guide the creation and launch of the so-called OneAsia Tour of elite events. The national governing bodies in Thailand and India are also believed to be considering joining.

The Australian PGA said that discussions are continuing with several other golf bodies in the region to establish their role within OneAsia. The Asian Tour is upset at the moves by the associations, claiming to have worked ‘very closely’ with China, Korea and Japan. Eight tournaments on the 2008 Asian Tour will take place in those countries, it added. The Asian Tour said: ‘We will continue to work closely with all the regional golf bodies for the betterment of golf. Kyi Hla Han, chief executive of the player-run Asian Tour, has likened the situation to a previous clash with the European Tour, which the Asian Tour believed was trying to encroach on its territory. He said: ‘It’s disturbing for me. But if we can withstand the European Tour going market by market, I can say confidently we’ll see what’s in the interest of Asian golf.’ Sportcal, 14th Mar 2008

Elsewhere/General: Giro to Separate Domestic and International Rights

RCS, owner of cycling’s Giro d’Italia, one of the sport's three annual 'Grand Tours,' said today that it would go ahead with a mooted plan to market its international media rights separately from its domestic rights from the end of this year. RCS said that the decision had been ‘motivated by very positive feedback from both agencies and media platforms in response to recent speculation that they would consider marketing international rights separately from domestic [sic: RCS itself announced that it was considering separating domestic and international rights].’

RCS added that it would ‘approach the operators individually in what will be a standardised consultation process whereby RCS shall provide prospective bidders with information on availability of rights, coverage, product specifications and minimum exposure/broadcast commitments. Under the present contract, domestic and international rights were bundled together and sold to Rai, the Italian public-service broadcaster, which produces television coverage of the race and markets it worldwide via its Rai Trade international distribution arm. Rai’s four-year contract expires at the end of this year.

The move to separate the two sets of rights apparently opens up the possibility of a closer co-operation between RCS and ASO, owner of the Tour de France. ASO is already advising Unipublic, owner of the Vuelta a Espana, the third of the sport’s three annual ‘Grand Tours’ on its media rights deals. It is also believed to be close to taking a 50-per-cent stake in the Spanish race. An alliance with ASO could enable the international rights for all three tours to be marketed as a highly attractive package to broadcasters and other media. Such a possibility would be regarded with dismay by the UCI, the sport’s world governing body, which is locked in a bitter power struggle with ASO for control of the sport.

RCS said today that it had ‘received expressions of interest from several parties for an international rights package which includes Italy’s Grand Tour, Giro d’Italia, which celebrates its centenary next year, as well as Giro di Lombardia, Tirreno-Adriatico, Milano-San Remo and the new one day race, Montepaschi Eroica.’ RCS added: ‘In the next 10 days RCS will contact all interested parties and they aim to receive all offers by mid April.’ Sportcal, 14th Mar 2008

Global/General: F1 GPs Are World's Most Valuable Sports Events

The grands prix of Formula 1 motor racing are the world’s most valuable sporting events, according to new research by management consultants Deloitte. Last year, the 18 grands prix in the Formula 1 series brought in average revenue of $217 million per race, compared with ‘per-game values’ of $24 million for NFL American football, $8 million for English soccer’s top-tier Premier League and $2 million for Major League Baseball.

However, Formula 1’s 2007 global revenues figure of $3.9 billion was eclipsed by the NFL’s 2006-07 figure of $6.5 billion and MLB’s 2006 figure of $5.1 billion, largely thanks to the NFL’s and MLB’s much larger numbers of events per season. Deloitte said that Formula 1’s $3.9-billion figure ‘is comprised of central revenues (from broadcasting, race sponsorship and corporate hospitality), team revenues (including sponsorship and contributions from their commercial partners and owners) and circuit revenues (from ticketing and certain sponsorships).’

Alan Switzer, director in the sports business group at Deloitte, added: ‘Global revenues of more than $3.9 billion and total viewing figures in excess of 350 million for the 2007 season make impressive reading and with measures such as the future Asian expansion, development of more ‘local heroes’ (potentially in India and China) and the introduction of night racing we would expect these figures to continue to rise.’

Deloitte points out that, compared with many other major sports, Formula 1 brings in a much lower proportion of its revenues from spending by spectators on the day of the race. Ticket receipts and other spending by spectators amounts to only about 10 per cent of total revenue.’ Deloitte added that circuits, supported by Formula 1, are seeking to increase race-day revenues. Sportcal, 14th Mar 2008



ARTICLES, COMMENTS, INTERVIEWS & OPINIONS

China Now #1 in Executions, Population... and Web Surfing!

The United States is no longer #1 when it comes to warm bodies surfing the Internet. According to BDA China, a Beijing-based consulting and research firm, China has some 228 million surfers. The China Internet Network Information Center puts that figure at 225 million. The US had been in the #1 seat for almost 40 years, dating back to the birth of the Internet in 1969 when it was a Defense Department project.

The AFP headline reads "China outsurfs the US," but whether or not China is truly in the lead is debatable. These studies all use statistics to project the number of people online, and statistics can lie. Simple statistics also don't tell the story of the disparity between the US and China in terms of user experience and innovation. China may have 228 million Internet users, but politics in that region are stifling innovation and the freedom of expression for nearly all of them, and the problem is getting worse, not better.

In the next year some 60 million more Chinese are expected to get online, according to BDA China, but this comes at the same time that the Chinese government is stepping up its crackdown on free expression. President Hu Jintao last year called for purification of the Internet, saying that it was poisoning the minds of China's youth. What he really meant to say is that the government is upset that it cannot completely control the flow of information.

To help keep those youths "honest," China will soon require customers of 'Net cafés to register their names and photos. 53 Internet cafés in Beijing's Xicheng District will be fitted with a new login system this month, and other urban areas will follow suit later this year, using either a centrally controlled monitoring system or, at the very least, enrollment lists with names and pictures.

The Chinese government already applies filters to incoming Internet traffic to ensure that the public isn't exposed to any "backward" thoughts and prohibits citizens from posting content that the government finds inappropriate. Last year, the government stopped just short of requiring all bloggers in the country to register their real names, due to the near-impossible logistics and costs involved. China has also introduced new laws which make it illegal for the distribution of audio and video content not sanctioned or produced by state-run media agencies.

All of this points to a China that is proceeding cautiously with no small amount of fear. Only a quarter of the country's population is digitally inclined at this time, and China doesn't really want to see that growth stifled. China likes the fact that the Internet can be a great distributor of information; it's just that the government would prefer to control all of that information.

For this reason, the inevitable op-eds about how Mandarin Chinese will become the "lingua Internet" can still be safely ignored (at least if their premise is the percentage of Chinese online). China, by stifling free expression and innovation online, is limiting its ability to influence the globe, opting instead to focus its influence on a catch-22: the proliferation of an open communications medium (the Internet) which the Chinese government would rather function more like a closed, propaganda-oriented platform.

In the meantime, China can bask in its new status as the #1 web surfing country in the world. If it's not true today, it will be by the end of this year. But the climate for innovation there is horrendous, as this recent Forbes article notes, and without anything close to a free Internet, that status as #1 is quite squandered. Yet, as readers in China tell us, savvy users are often one step ahead of the government, and everyone knows that a huge wealth of information and expression lies beyond the Great Firewall. China can't possibly hope to reign in the web, let alone "win the web" as the Forbes article suggests. If anything, the web will win over China, and continue to serve ultimately as a positive force for progressive change in the realms of free speech and civil rights. Ars Technica, 16th Mar 2008

India’s Media and Entertainment Industry Grows 17% in 2007

Last year, which saw the biggest global players testing waters in the Indian media and entertainment sector, the industry grew 17% over the previous year, reaching the Rs50,000 crore mark, according to a joint report by industry body the Federation of Indian Chambers of Commerce and Industry (Ficci) and audit firm PricewaterhouseCoopers.

While the mainstream sectors such as print, television and filmed entertainment continued to grow robustly, emerging segments such as animation, gaming and visual effects, radio, out-of-home advertising and online advertising grew faster, although on a much lower base. The report forecasts sustained growth for the next five years, estimating that the industry will grow to an overall size of Rs1.16 trillion by 2012. The report predicts a cumulative growth of 18% for the sector during the period.
“The industry has posted robust growth, in fact, a couple of percentage points higher than what we projected last year, which is a great thing,” said Timmy Kandhari, executive director and leader of technology, infocomm and entertainment and media practice at PricewaterhouseCoopers.

Advertising, which contributed Rs19,600 crore or 38% to the revenues generated by the media and entertainment industry, grew 22% year-on-year in 2007, the report says.Foreign direct investment (FDI) into the sector surged to $211 million (Rs854.55 crore), against $89.18 million in 2006. “FDI will continue to go up in the coming years,” Kandhari said. The year 2007-08 was marked by the entry of media and entertainment conglomerates—Viacom Inc., NBC Universal Inc. and Walt Disney Co.—into India through partnerships with Network 18 Group, NDTV Networks Plc. and UTV Software Communications Ltd, respectively.

The television industry grew 18%, the only big sector to grow at a rate above the industry average. The report notes that digital distribution platforms such as direct-to-home (DTH) are transforming the industry as such addressable technologies ensure more transparency and higher revenues from subscription. The study said the number of DTH subscribers would grow cumulatively by 44% every year over the next five years. The high growth in advertising revenues and emergence of new revenue streams such as from SMS (short message service) are driving the launch of new channels, the report says.

Print media’s growth in 2007 at 16% was lower than the industry average and the report indicates it will continue to grow below the average over the next five years, as well. The report predicts the sector’s cumulative annual growth rate, (CAGR), for 2008-12 at 14%, four percentage points below the industry average. The report, specifically notes the increase in regional language publications and the action in the magazines space, with a slew of niche launches.

Filmed entertainment grew 14% on which the CAGR for 2008-12 is predicted at 13%. The report notes several trends that are changing the nature of the industry. Emergence of revenue streams such as mobile phones, Internet, home video, merchandise, re-make rights and branded entertainment as well as the advent of the studio model of production will continue to grow de-risking the business, the report says. FM radio will grow to a Rs1,800 crore industry by 2012, up from Rs620 crore now. When asked if the possibility of an economic slowdown dampened the overall outlook, Kandhari said: “We have factored that in (the report).”
‘TV market to grow at 16%’

A Hong Kong-based independent research firm focusing on Asia’s media and telecommunications industry has made a slightly different projection for the Indian television industry. The market will grow at an average annual rate of 16% to reach $11.6 billion (Rs46,922 crore) by 2012, Media Partners Asia said in its annual report, ‘Asia Pacific Pay-TV and Broadband Markets 2008’. It said the sector will grow to $19 billion by 2017. According to its study, the increasing footprint of digitized distribution systems such as DTH will see subscription revenues climbing from $3.8 billion currently to $7.8 billion by 2012 and $12.3 billion by 2017. The number of digital pay-TV subscribers including cable, DTH and Internet protocol TV, could grow to 28 million by 2012 and 15 million by 2017, it added.

While steady economic growth and increasing cable TV penetration continue to boost the growth of TV advertising, the study says TV’s share of the ad pie, which in 2007 was 42%, will come under threat in the long run from the growth of out-of-home media, radio and online advertising. It said advertising on TV will grow at an average annual rate of 19% between 2007 and 2012 to reach $3.5 billion and further to $6.3 billion by 2017. Livemint.com, 17th Mar 2008