HEADLINE NEWS
Spain are Champions of Europe, Immediately Look to WC2010
Liverpool striker Fernando Torres's first-half goal sealed what was eventually a comfortable win for the Spaniards, their first trophy since winning the Euros in 1964. But, despite the elation of the team and fans, Torres demanded that La Furia Roja maintain their focus ahead of the qualifiers for the 2010 World Cup in South Africa.
"It's a dream come true," he said afterwards. "It's [this team's] first title and we hope it will be the first of many. We've still got the World Cup to come, we have to be ambitious." The former Atletico Madrid striker's sentiments were echoed by Arsenal midfielder Cesc Fabregas, who started the match after David Villa was ruled out through injury. "You can see how young we are," Fabregas told the BBC. "Hopefully in two years' time we will fight for the World Cup."
Spain outplayed a Germany side who were functional but uninspiring, and the match reflected both sides' performances throughout the tournament. "At last justice has been done because the team that played the best football won the tournament," Torres continued. This has been a great victory for the whole team and all of Spain."
Torres grabbed what proved to be the winner when, on 33 minutes, he exploited hesitancy from Germany left-back Philip Lahm to loft a superb Xavi through-ball over the advancing Jens Lehmann. "It was a great pass from Xavi and the defender was over-confident and shouldn't have left it for Lehmann, and things worked out perfectly," Torres said of the goal.
And Fabregas - who was mostly used as a substitute by boss Luis Aragones - believes that the manner of Spain's overall success has signalled a move away from the negative tactics that have been successful in continental football over the past few seasons. I t was a long time since we have seen a team of that quality trying to play beautiful football - I don't think we've seen many teams have success [playing that way]," he added. "Finally, football has the success it deserves." Eurosport, 29th Jun 2008
DID YOU KNOW…?
Oscar Pistorius, the South African double amputee athlete, has been awarded extra time in his bid to qualify for the Beijing Olympics in August. Pistorius, who runs with the aid of carbon fibre prosthetic 'blades,' said that he was confident he would appear in both the Olympics and the Paralympics, after Athletics South Africa, the sport’s governing body in South Africa, extended his deadline for qualifying until after his last IAAF Golden League race in Lucerne, Switzerland, on July 16.Lausanne’s Court of Arbitration for Sport last month ruled that Pistorius is eligible to run in able-bodied competitions under the rules of the International Association of Athletics Federations. The IAAF had argued, unsuccessfully, that the blades give him an unfair advantage over able-bodied runners. The South African would need to run a time of 45 minutes and 55 seconds to qualify for the individual 400 metres, but his personal best is 38 seconds slower than that, and he admits that his most ‘realistic’ chance is to qualify for the relay team. Sportcal, 27th Jun 2008
DATA BOX
Half the Planet to be Mobile by 2010
Strategy Analytics Study results published on Rapid TV News, 27th Jun 2008
It is a staggering number, but a study from Strategy Analytics predicts that more than half the world’s population will have mobile phones by “early 2010”, barely 20 months from now. The study also forecasts that today’s (2008) 3.9bn subscribers will expand to 5.6bn by 2013.
Strategy Analytics, in the company’s latest Worldwide Cellular User Forecasts says that even discounting those folk who have multiple subscriptions, “more than half of the world’s population will be using mobile phones by early 2010, up from 40% at the start of this year.”
Asia-Pacific and the Middle East & Africa (MEA) are responsible for the current surge in mobile subscriptions. Those areas will remain the engines for growth in the wireless market in the medium term, contributing to 80% of subscription growth through 2013, says the study.
“These two regions may be driving the subscription count, but they contribute much less to global revenues,” said Phil Kendall, Director Global Wireless Practice. “Asia-Pacific and MEA account for nearly 60% of worldwide subscriptions, but less than 40% of revenues. Their increasing significance will reduce average revenues per subscription by 15% over the next five years”.
3G networks will account for half of all mobile subscriptions by 2013. Susan Welsh de Grimaldo, Senior Analyst, Wireless Network Strategies, added: “3G technologies will reach critical mass in more regions in 2008, driving worldwide subscriber numbers close to 500 million by year-end. Next year, more than one third of all service revenues will be generated by 3G technologies, even though 3G accounts for only one in six subscribers.”
SPORTS SHORTS
* Host broadcaster Eurosport has outlined its coverage plans for the FIFA Beach Soccer World Cup 2008. All 32 matches of the tournament, which will take place in Marseille, France from July 17-27, will be live on Eurosport and Eurosport 2. The high definition TV production of the matches will also be available on Eurosport HD, the high definition simulcast of Eurosport. The coverage is supplemented by live interviews filmed by Eurosport's on-site team. Sports Media, 27th June 2008
* Shanghai Media Group (SMG) and Intel have announced a collaboration in developing broadband online TV in China. Intel will provide support to SMG including funding, technology research, and product development, to build a more secure, convenient online TV platform. Intel and SMG’s collaboration in developing broadband online TV in China is comprehensive, the parties state. Indiantelevision.com, 28th June 2008
* ESPN Star Sports will receive payment from Doordarshan, the Indian state broadcaster, which has acquired rights to broadcast eight matches, including the semi-finals and final, of soccer’s Euro 2008. ESPN Star Sports had agreed an exclusive deal for Euro 2008 rights, including the territory of India. However, pay-television rights-holders have come under strong pressure from the government in India in recent years to share the rights of major sports events with the state broadcaster. The final, between Spain and Germany, will be broadcast live by Doordarshan at 12.15am on June 30. Sportcal, 27th Jun 2008
* Media investment management network GroupM has acquired a 30% stake in three flagship media companies within Datviet VAC Group Holdings - DatvietVAC Media Corporation, Dong Tay Promotions (DTP) and TKL Corporation (TKL). Marketing Interactive, 23rd Jun 2008
* Indonesia's Bakrie group plans to buy a 10%-15% stake in PT Indosat, the country's second-largest mobile phone firm, in the open market, sources quoted by a Reuters report said. The plan comes as Qatar Telecom, which this month increased its stake in Indosat to 40.8%, confirmed that it would offer to buy the remaining shares in Indosat at 7,388 rupiah apiece, or a total of $2.6 billion, the Reuters report further said. Bakrie executives recently told investors that the firm planned to buy 10%-15% of Indosat in the open market and hoped to increase its stake, sources said. One of the sources close to the group said the plan was at an early stage, according to the Reuters report. Telecomasia.net, 30th June 2008
* The Korean Communications Commission (KCC) has banned business groups with assets worth more than ten trillion won (US$9.59bn) from holding and operating IPTV services in the country. The KCC's five decision-making members met to finalise an ordinance governing the provision of IPTV in the country, and the ordinance is expected to take effect next month, following administrative processes and approval from the Cabinet. Under the ban, the country's top 23 business groups will not be able to operate or own shares in IPTV services. Korea has a well developed IPTV market, with local operator KT reporting 567,000 subscribers at the end of the first quarter of this year and Hanaro Telecom passing 900,000 at the end of the period. IPTV-News.com, 27th June 2008
* Dubai Sports Channel has signed a TV sponsorship deal with Meydan, the company behind a rapidly expanding sport and business complex in the United Arab Emirates (UAE). According to the deal, Meydan will be a key sponsor of events and programmes broadcast on Dubai Sports Channels' 1 and 2. Hitting a value of US$2.17 million, the deal will see the commercials and logo of Meydan presented on Dubai Sports Channel. Sports Media, 27th June 2008
* Digicable Network (India) has acquired a 51% stake in Kolkata-based CableComm as part of its strategy to expand in the eastern region of India. As part of the deal, Digicable will use CableComm to expand in other neighbouring parts. The multi-system operator (MSO) has already entered into Jharkhand. CableComm offers its cable TV services to Kolkata, Greater Kolkata and adjoining districts including Howrah, Hoogly, 24 Parganas (South), 24 Parganas(North). Nadia, Beharampore, Birbhum, Purulia, Medinipur East, Medinipur West, Burdwan and Bakura. Indiantelevision.com, 28th June 2008
* NBC is making more than 2,200 hours of live competition from Beijing available online, giving Olympic junkies more action than they could ever devour in a day. The network will dive into the deep end: live blogging, 3,000 hours of highlights on demand, daily recaps and analysis and even fantasy league gaming. That's in addition to the 1,400 hours of coverage planned on six television networks, more than the combined total of every previous Summer Olympics. Telecomasia.net, 30th June 2008
* A1GP World Cup of Motorsport has received influential backing of Brazilian President, Luis Inacio Lula da Silva, for the series to hold its first race in South America. In a meeting with A1GP ambassador and the Brazilian team's seat holder, Emerson Fittipaldi, the Brazilian President pledged his support for A1 Team Brazil's quest to secure a home race. Sport Business, 27th Jun 2008
MORE NEWS
Sri Lanka/Rights: India Tour Bails out Lankan Board
India's upcoming Test and one-day tour of Sri Lanka has helped the cash-starved local cricket board wipe out its debts, an official said on Sunday. "We paid off our 600 million rupee (six-million dollar) bank overdraft after getting an advance payment from television rights sold for the Indian tour," Sri Lanka Cricket (SLC) media manager Shane Fernando told AFP. Fernando declined to reveal details, but local media reported that the Dubai-based Ten Sports, which holds the television rights for the tour, paid 50 percent of the 15.2 million dollar agreed for the tour. India will play three Tests and five one-day internationals during the six-week visit, with the first Test starting on July 23.
India, with its vast cricket-crazy television audiences, is the commercial superpower of the sport contributing almost 70 percent of the game's worldwide revenues. "India's biggest passion is cricket. It's an advertiser's dream market," said Jude de Valliere of the Colombo-based Right Angle Sports Marketing. Sri Lankan cricket was not been short of sponsors after the island won its only World Cup under Arjuna Ranatunga's captaincy in 1996, but income has been running dry in recent times. A major portion of the money that Sri Lanka Cricket, now headed by Ranatunga himself, earns these days is through sale of television rights to home internationals.
The SLC lost 11 million dollars when South Africa pulled out of a triangular one-day series in August 2006 after a bomb blast near the team hotel in Colombo. India, the third team in the tri-series, stayed back to play one-day matches against Sri Lanka, but rain wiped out the hastily-arranged series. CricBuzz, The Hindu, Cricket Next, 29th Jun 2008
Malaysia/Broadcaster: The Cost of Football
Football is the most popular sport in the world.” So says Henry Tan Poh Hock, Astro’s chief operating officer – strategic, content and marketing– and this is a hard, cold fact. Leagues like the English Barclays Premier League (BPL), Spanish Primera Liga, Italian Serie A, German Bundesliga, and the World Cup are among the most watched, as well as the best-supported football leagues in the world.
Due to its increasing popularity, international footballers and clubs currently enjoy tremendous earning power – and the majority of it comes from the sale of broadcasting rights. However its cost is escalating with every passing year. Tan reveals that Astro’s investment in its sports has also increased – without revealing any specific, figure, he shows that Astro pays 75% more than it did four years ago.
“Generally, the cost of sports rights over the years has experienced a global surge with the BPL taking the lead. Part of the reason for the escalating costs is the bidding process set in place by the BPL’s governing body,” says Tan. He adds that its cost has exceeded the financial viability of a free-to-air model, and thus pay TV (such as Astro) has become the only option for Malaysians to watch the BPL.
BPL rights are currently acquired though ESPN Star Sports, but in the light of escalating costs, Tan says that they are evaluating new opportunities and strategies to improve the economics of sports content. “A precedent has been set in Hong Kong, Thailand, Singapore and China, all of whom have already acquired the BPL rights independently of ESPN Star Sports,” he states.
Tan says that even with the wealth of football programming in Malaysia, there is room for more, provided it meets its customers’ demands. “We are looking into bringing more football including club channels to the Astro service. Content in consideration are MUTV (Manchester United), Chelsea TV, Liverpool TV, Barcelona TV and also the Dutch, Scottish and French football leagues. “A decision on this will be forthcoming,” Tan concludes. The Star Malaysia, 27th Jun 2008
Global/Rights: Correction - IOC Guidelines to Non-Rights-Holders
On Wednesday, June 25, newslines carried a story, suggesting that the IOC had issued ‘sweeping” new restrictions to non-rights holding media at Beijing 2008. It has been made clear to us that this is not the case:
- The IOC did not issue any new restriction or guidelines to non-rights holders this week.
- The story said it will be forbidden to broadcast Beijing press conferences via the Internet. In fact, the IOC News Access Rules, distributed in August 2007, and the IOC Internet Guidelines for the Written Press and other Non-Rights Holding Media distributed in March 2008 state that...
“Non Rights Holding Broadcast Organisation may broadcast via the Internet all or portions of press conferences that take place in the Main Press Centre, without territorial restrictions, provided there is a delay of at least 30 minutes from the conclusion of the press conference.” In other words, non-rights holders may film and broadcast press conferences in the MPC, just as they did in Torino and Athens.
- The story said the rules for Beijing represent an increase in restrictions from the 2006 Olympic Winter Games in Torino In reality, the guidelines in place for Beijing are significantly less restrictive for non rights holders than Athens or Torino.
- There is no requirement that non -rights holders to remove Games related content from media sites by August 7, the day before the opening of the Games.
- NBC will not be the single source for digital video for events and athlete interviews from Olympic venues, curtailing any original video offered by other sites like ESPN.com and Yahoo Sports. Rights holding broadcasters in most territories around the world will be broadcasting Olympic content online.
- Online news access rules have also been agreed in Australia and New Zealand which permit news broadcasts by bona fide news organisations of Olympic material – the first such online news access rules to be implemented anywhere in the world, and described as an “historic agreement” by the Australian media. Sport Business, 27th Jun 2008
Elsewhere/Rights: Eurosport Loses MotoGP as Dorna Looks to National Networks
Eurosport, the pan-European cable and satellite broadcaster which has broadcast motor cycling's MotoGP World Championship for 16 years, has lost the rights from next season after commercial rights owners Dorna Sports opted instead to seek deals with national broadcasters around Europe.
Eurosport, which had broadcast the series since 1992, had been in negotiations regarding a new five-year deal, but Dorna eventually decided not to continue the partnership. Dorna said that the decision ‘is part of its strategy of working with national network broadcasters around Europe, always focusing first and foremost on free-to-air coverage to bring MotoGP to wider audiences.’
The news will give broadcasters MotoGP exclusivity in their own markets from 2009, including the BBC, the UK public-service broadcaster. Dorna revealed that negotiations were under way with TVE, the Spanish state broadcaster, and Mediaset, the Italian commercial broadcaster, about increasing the number of hours of MotoGP coverage during the weekends.
Dorna said that a deal had been signed with a ‘privately-owned free-to-air channel in Germany,’ giving the broadcaster exclusive coverage from 2009 to 2011. DSF, the privately-owned sports broadcaster and the pay-television operator Premiere were recently reported to have agreed a deal in Germany, although RTL, the commercial network, is also thought to have been in the frame. Rights negotiations in France and other major European markets are also under way.
The loss of MotoGP rights leaves a considerable gap to fill in Eurosport’s schedule. Eurosport broadcasts 254.5 hours of MotoGP coverage per season via its main Eurosport channel, which is available across 59 countries in Europe, and its Eurosport 2 channel. The coverage is made up of live, delayed and repeat coverage and includes the races, qualifying sessions, practice sessions, warm-ups and pre-race introductions. Sportcal, 27th Jun 2008
ARTICLES, COMMENTS, INTERVIEWS & OPINIONS
Mobile TV’s Holy Grail Remains Elusive
Tony Brown comments on Telecom.com, 26th Jun 2008
With mobile TV services in the flagship market of South Korea floundering and with few signs that operators anywhere else have found a successful formula for launching such services, most operator and vendor delegates at the recent CommunicAsia Summit in Singapore struggled to find enthusiasm for the fledgling industry. The key question is which business model will work best for commercial mobile TV services, and the industry does not seem anywhere close to coalescing around an agreed model.
Some operators and vendors say that mobile TV should be subscription-based, to offer a reliable revenue stream; others say an ad-supported model is the most viable option; and still others argue that a combined pay/advertising approach is the way forward. Figures from South Korea seem to suggest that both pay-based and ad-supported models have critical weaknesses, which would also apply in other markets in the region. A lot more experimentation and creativity from operators might be required to find the right model.
Those promoting the idea of a pay-based service say that only by charging for content can a business model work. They say operators must team up with content firms to acquire premium content - most particularly sports - that people will be willing to pay a monthly fee to view or even pay for on a per-view basis. But this line of thinking seems flawed, given that there is a limited amount of blue-chip content for which people will be prepared to pay, most notably live sports events - such as English Premier League soccer games - or highlights of them.
The problem is, of course, that content-rights holders have become adept at exacting a premium price for key sports rights, meaning that mobile TV operators would have to recoup their heavy capital investment by charging high subscription fees. This is a problem, since the high churn rate experienced by TU Media in South Korea seems to suggest that mobile TV subscribers are extremely price-sensitive. TU Media subscribers pay just KRW13,000 ($12.60) a month for the service but have been leaving in droves after their initial one-year contracts finish, forcing the firm to offer significantly reduced subscription rates to keep subscribers from deserting the service.
TU Media’s experience suggests that mobile TV subscribers will be willing to pay only so much for services and that although blue-chip sports content has a crucial role to play, operators must find a way to acquire the content without paying excessive prices.
On the advertising side of the debate, many delegates at CommunicAsia argued that an ad-based strategy would work best for mobile TV platforms but that operators would have to be extremely creative in their approach. Delegates uniformly agreed that the idea of transporting the traditional TV-advertising model to mobile was deeply flawed and that mobile TV operators would not be able to sell regular 30-second ad spots on mobile TV services, given the different nature of the platform.
One senior mobile operator executive said that he was skeptical of the ad-supported model, because mobile TV users tend to watch only 10-15 minutes at a time and it would be hard for operators to interrupt that short window with advertising without disrupting the user’s experience. But other delegates, including those from both operators and vendors, were more hopeful that a successful advertising model could be built, though the consensus was that ads would have to be shortened to suit the mobile TV viewing experience and that they would have to be carefully targeted at specific user groups.
These are both valid points, but the elephant in the room is the fact that many mainstream advertisers are skeptical of mobile TV as an advertising model - and some might not be aware of its existence at all - meaning that mobile TV operators will need to work closely with media buyers and ad agencies to craft their message. This might mean offering heavy price cuts in the short term to persuade advertisers to seize the unique opportunity to reach users that mobile TV advertising offers and then trying to turn these advertisers into long-term customers.
There is no magic bullet that will provide a successful business model, but there seems to be a reasonable possibility that an attractive model can be built if operators can match the largely young and technology-friendly subscribers viewing mobile TV on their handsets with advertisers desperate to reach such a market.
Intriguingly, conference delegates also discussed the possibility that broadcast-type mobile TV services might never fully take off in the region and that Multimedia Broadcast Multicast Service video streaming over high-speed HSPA and future LTE networks would dominate the market. The debate has strong proponents on both sides. Many vendors back an MBMS approach, saying that experience shows that broadcast-style services are not what users are demanding and that the more-narrowly targeted VOD-style content being offered on HSPA networks is already proving hugely popular.
The pro-MBMS argument also runs that with HSPA/LTE networks already in place and offering voice, data and video services, why go to the expense of deploying a terrestrial or satellite-based mobile TV network, especially with the expense involved in creating high-quality in-building reception? Although this is a persuasive argument, it has shortfalls, most notably the fact that even LTE networks will still be point-to-point networks and will be unequipped to operate as point-to-multipoint services, which a full broadcast mobile TV service would require.
The broadcast-mobile-TV lobby argues strongly that the core strengths of broadcast-based networks cannot be replicated by even high-speed mobile networks, which would not be able to support the huge demand that’s sure to arise for broadcasts of live sports and important news events. In reality, the MBMS-vs.-broadcast-mobile-TV debate is spurious, given that both technologies are going to be on the market, and it will be users who determine which is the more successful.
At this early stage, it looks likely that subscribers and operators will use high-speed, quality video streaming for VOD-based “snacking” on content and that full broadcast mobile TV will be used for some live events, for which only a broadcast-style service can supply the quality of service required.
Friday, 27th June 2008
DID YOU KNOW…?
Maria Sharapova is back to her old tricks, grunting at levels to match a pneumatic drill. The 21-year-old Russian let out a volley of shrieks and yelps as she played fellow Russian Alla Kudryatseva in the second round of Wimbledon. Using a digital sound level meter, The Telegraph recorded maximum decibels of 103.2, louder than a motorcycle or a lawnmower. She grunted loudly as she lost the first set, but her noisiest offering came as she served for the first time in the second set. Her opponent remained silent throughout, going on to win the match. The Telegraph UK, 26th Jun 2008
INFO BOX
8.62 Million Wireless Subscribers added in May 2008
Total 8.46 million telephone connections (Wireline and Wireless) have been added during May 2008 as compared to 8.00 million connections added in April 2008. The total number of telephone connections reaches 316.97 million at the end of May 2008 as compared to 308.51 million in April 2008. The overall tele-density is 27.59% at the end of May 2008 as against 26.89% in April 2008.
The total wireless subscribers (GSM, CDMA & WLL(F)) base stood at 277.92 million at the end of May 2008. A total of 8.62 million wireless subscribers have been added during the month of May 2008 as against 8.21 million wireless subscribers added during the month of April 2008. In the wireline segment, the subscriber base has slightly decreased to 39.05 million in the month of May 2008 as against 39.21 million subscribers in April 2008. Indiantelevision.com, 26th June 2008
SPORTS SHORTS
* The Intellectual Property Office (IPO) of the Philippines has served its first ever temporary restraining order (TRO) against a pirate cable operator – Turtle Cable, a company in Baao, Camarines Sur province – for copyright infringement. This latest move by the IPO has been applauded by the international pay-TV industry. The Cable & Satellite Broadcasting Association of Asia (CASBAA) welcomed the decision. "This is the first time we have brought a cable piracy case to the IPO, and we are pleased that the IPO administrative judge has recognized the validity of the TV industry’s concerns about protecting our intellectual property," said Simon Twiston Davies, Chief Executive Officer of CASBAA. AdvancedTelevision.com, CASBAA.com, Rapid TV News, Worldscreen, 27th June 2008
* The Telecom Regulatory Authority of India has rejected ESPN's contentions, seeking to allow it to make mandatory for DTH operators to offer its channels in the entry level pay tier, while working out pricing on a mutually agreeable basis. ESPN, involved in legal spat with DTH operator Tata Sky, had asked Trai through its new Reference Interconnect Offer (ROI) its intention to make it compulsory for DTH operators to take all three channels — Star Sports, ESPN and Star Cricket — collectively in their base package. Sports City, 26th Jun 2008
* MediaCorp's Caldecott Productions International (CPI) will be launching its HD channel Caldecott HD on internet and IPTV platforms such as Babelgum, Joost, Factual TV, ClixSmartv, WOWtv within the next few months. "The first 18 months were best analogous to paving roads in territories where there were none before. Right from the start, our mission was different because we wanted to find original stories that have an untainted voice in the storytelling technique," Hee Yah Ong, managing director and executive producer for CPI, said. Marketing-Interactive.com, 26th June 2008
* Speculation of Malaysia-based Astro buying out Star's 25.9 per cent stake in Balaji Telefilms lifted the shares of the television production house to as much as 9.44 per cent, but the stock closed Thursday only 0.66 per cent up to Rs 199.35 on the BSE. Balaji Telefilms and Star executives refused to comment, but the market has carried their uneasy relationship to speculate on the possible buyers. The names that have been doing the earlier rounds are Reliance ADAG and Eros International. Astro has shown aggression in the Indian media market and holds stake in Red FM and in Sun Direct, the DTH venture of Kalanithi Maran's Sun Group. Indiantelevision.com, 26th June 2008
* Discovery Networks India (Discovery) is set to air Ultimate Olympics, a one-hour, four-part series, from 14 July. The series will be aired every Monday at 9 pm. Ultimate Olympics aims to take a look at the "innovation, endeavor and commitment" that China and her athletes are pouring into hosting and participating in the sporting event. The series, produced by Discovery’s international production, has been in the making for the past 18 months. Indiantelevision.com, 26th June 2008
* UEFA’s new approach to providing video content for the official website of Euro 2008 was essential to ensure that it kept up-to-date with today’s methods of media consumption. All 31 matches have featured live video streaming, as well as near live mobile clips, edited video on demand (VOD) highlights and live coverage direct from the stadia in multilingual format. Euro2008.com also offers highlights and full replays of games, as well as interviews and analysis. 173 matches that have been played in the Finals since 1960 are also available. All matches have been streamed live thanks to partnerships with broadcast partners on a subscription basis, along with match highlights and interviews. Sports Media, 26th Jun 2008
* A1GP World Cup of Motorsport plans to offer world feed TV broadcast in high definition. A1GP is carried by more than 45 broadcast licensees, reaching nearly 180 countries and territories around the globe, but under the new plans they will all now be given the option to receive A1GP's host broadcast in high definition. Broadcasters without high definition channels will still be able to receive the standard definition feed. Pictures will be from 60 cameras situated around the track, in the pits and on the A1GP cars, manned by a crew of 130 production staff and engineers. Sports Media, 26th Jun 2008
* The F1 season will stretch to 19 races in 2009 after a race in Abu Dhabi was added to the calendar. The season will start later than normal in Australia on 29 March and will end in Abu Dhabi on 15 November. The FIA published the draft calendar after a meeting of its World Motor Sport Council. There will be four back-to-back races, starting with Australia and Malaysia. F1 has only once before had a 19-round championship, in 2005, but earlier this year, team bosses backed plans to expand the calendar to 20 races a year. India and South Korea are hoping to make their debuts in 2010 while F1's commercial supremo Bernie Ecclestone would like to include Russia and the United States. Sports City, 26th Jun 2008
* The PGA Tour unveiled a new competition that will see golfers challenge the game's most celebrated holes with the winner receiving $1 million (506.5 million pounds). The Kodak Challenge, which will debut in 2009, will combine the PGA Tour's most famous holes into a year long 18-hole event that golf officials hope will help maintain fan interest later into the season after the majors and FedEx Cup is completed. The player who posts the lowest score relative to par on 18 of the Challenge holes will receive the $1 million prize. Details have not been finalised but the Challenge is expected to include a minimum of 24 tournaments. Sports City, Sportcal, 26th Jun 2008
MORE NEWS
Global/Broadcast: Storms Knock out Euro 2008 TV Feed
A violent thunderstorm in Austria caused a power cut at the Euro 2008 International Broadcast Centre in Vienna last night, resulting in television broadcasters worldwide losing their signal at several points during the Germany-Turkey semi-final. During the second-half, television and internet images cut out several times, resulting in viewers missing key moments of the match, as Germany took a 2-1 lead, then conceded an 86th minute equalizer, before defender Phillip Lahm scored an 89th minute winner.
In a statement, Uefa said, “Tonight the television signal in the International Broadcast Centre for the Germany-Turkey game has been interrupted several times in the second half due to technical reasons which are currently being investigated, in particular to evaluate the impact of the violent electrical storm over Vienna at that time.”
Uefa was initially unable to explain why two broadcasters, Swiss public-service broadcaster SRG and Middle-East broadcaster Al-Jazeera, were able to maintain coverage throughout the second-half. It later transpired that SRG was able to access a feed sent to Swiss stadiums. SRG also provided the feed to German broadcaster ZDF for 15 minutes.
The heavy rain, high winds and lightning also resulted in the evacuation of a fanzone in Vienna, during which two people were injured after being trampled in the rush to leave. The order to close the fan zone was given after the storm winds exceeded 100 kilometers per hour. Sport Business, Sports City, 26th Jun 2008
The BBC and ZDF are among the broadcasters said to be considering filing formal complaints with UEFA after a power outage disrupted the broadcast of last night’s Euro 2008 semi-final match between Germany and Turkey. Almost 20 minutes of last night’s gripping match, watched by a reported 30 million viewers in Germany alone, went unaired in the second half, including Miroslav Klose’s goal that put Germany ahead, followed by Turkey’s equalizer. The feed returned in time for Germany’s final 3-2 winning goal, before going down again at the end of the match. Worldscreen, 26th Jun 2008
China/New Media: CCTV.com Wants More Olympic Internet Deals
CCTV.com, the internet arm of the Chinese state broadcaster CCTV, has said that it is looking to agree deals with more Chinese websites for internet coverage of the 2008 Olympic Games in Beijing after signing sub-licensing deals with a trio of companies, including the Sohu.com portal.
It emerged earlier this month that Sohu, already a partner of the games, had acquired webcasting rights from CCTV.com, but deals have also been agreed with two more domestic websites – Pps.tv and Uusee.com. CCTV.com is reportedly negotiating with another eight commercial websites and over 100 local government websites and a final list of internet partners is to be revealed at the end of this month, a CCTV.com spokeswoman told the China Economic Times newspaper.
The Pps.tv and Uusee.com deals are similar to the Sohu deal, the spokeswoman said. Sohu will be able to offer live webcasts and video-on-demand coverage of the games, providing what it claims will be ‘total coverage of Chinese representatives, athletes, teams and Olympic champions at least 60 seconds ahead of any other website.’
There was controversy over CCTV’s initial acquisition of the internet rights for China last December, with accusations that it acquired the rights for well below the market value, thanks to the intervention of the Chinese government. It was claimed that the International Olympic Committee had been intent on an open bidding process, but that Sohu.com and Sina.com withdrew their bids under threat from the government. Sportcal, 26th Jun 2008
Elsewhere/Rights: ARD Questions Soccer Rights After Sat.1 Uefa Deals
ARD, the German public-service broadcaster, has warned that soccer rights are running the risk of becoming too expensive after losing out to Sat.1, the commercial network, in the race to secure rights to soccer’s top European club competitions. Sat.1 recently completed a deal for rights to the Uefa Champions League, the top-tier European clubs tournament, and the second-tier Uefa Cup from 2009-10 onwards, and Fritz Raff, ARD’s chairman, reacted in an interview by saying that ‘there is a danger in the air that soccer, as a product, will become too expensive’ and that ‘there are too many expectations on behalf of the rights holder.’
Raff told the Westfälische Rundschau newspaper that he was ‘sad’ not to have won the rights to Europe’s club competitions, but stressed that the broadcaster must realise its limitations, saying: ‘We are not only passionate programme makers but also conscientious businessmen. Then you must know where the limits are.’
ARD is reported to have bid €20 million ($31.5 million) a season for Uefa Cup rights, not enough to eclipse Sat.1. Referring to Sat.1’s acquisition, Raff said, ‘If you are in distress, then you reach for the last straw. And at the moment that’s soccer rights.’ Sportcal, 26th Jun 2008
Elsewhere/Rights: France Télévisions Eyes Champions League Rights
France Télévisions, the French public-service broadcaster, is reported to be interested in acquiring rights to the Uefa Champions League, European soccer’s top-tier clubs competition. Daniel Bilalian, the head of sports at France Télévisions, is keen to see the Champions League coverage move from TF1, the French commercial network and incumbent rights holder, to France 2, the main channel of France Télévisions, reports Le Parisien-Aujourd'hui, the French daily newspaper.
France Télévisions has never broadcast the competition before and a bid could cause the public-service broadcaster budgetary problems. TF1 holds rights until the end of the 2008-09 season, along with Canal Plus, the French pay-television operator, and is thought to pay between €40 million ($62.8 million) and €45 million a season.
New deals in France will be for three seasons from 2009-10 onwards. France Télévisions holds soccer rights for the Coupe de la Ligue, the French league cup competition, and the Coupe de France, the French national cup competition, but recently lost highlights rights to Ligue 1, the top-tier French league. Sportcal, 26th Jun 2008
Elsewhere/General: Mosley’s Takeover Plans Spark FIA Action
The FIA took the first step in Max Mosley’s masterplan to wrest control of Formula One and its revenues from Bernie Ecclestone yesterday by announcing that it is to conduct a full review of the way the sport is governed. After a meeting of its World Motor Sport Council in Paris, chaired by Mosley, its president, the world governing body said that it will enter into “a wide-ranging consultation with the Formula One teams to examine plans for improved efficiency, including new technical regulations for the championship”. It added that the review will include a rethink of the “governance of Formula One”.
The statement went on to announce the entry deadline for next year’s championship, which has been brought forward, without warning, to the end of next month. This was being seen by Mosley’s critics as his way of heading off the threat of a breakaway series outside the auspices of the FIA by teams who no longer want to work with him in the wake of the scandal over his private life.
In another surprise, widely viewed as designed to hurt Ecclestone, the Formula One commercial rights-holder, and CVC Capital, his business partner, the FIA also announced the setting up of a new Formula Two championship. This will be styled as a feeder series for Formula One at the expense of the GP2 Series, which is owned by Ecclestone and CVC. The FIA’s statement was bland, but the spin in the background from the organisation’s spokesmen made it clear that it marks the first salvo in what some view as a battle between Mosley and Ecclestone over the future of the sport and the hundreds of millions of pounds it generates.
Mosley is aiming to enlarge the FIA’s role in deciding how much of the sport’s revenues go to the teams and is said to be aiming to increase annual payments to them by up to 25 per cent. Ecclestone is determined that the FIA should not interfere with the commercial side of the sport and believes that the European Commission would intervene if Mosley presses ahead. However, in recent days it has emerged that the FIA has taken soundings from the Commission about its role and claims it has received what amounts to a green light to proceed along the lines advocated by Mosley. Sports City, Sportcal, 26th Jun 2008
Elsewhere/General: Platini Sends Financing Warning to Europe's Top Clubs
Michel Platini is determined to reform the finances of Europe's debt-ridden clubs. The Uefa president was at pains to emphasise that this is as much an issue in Spain and Italy as it is in England, but his pledge will be noted in particular by Chelsea and Manchester United. Together, according to their most recent accounts, they owed a total of £1.5bn to creditors. Platini wishes, in the long term, to license clubs and then exclude those who do not meet the financial criteria from the Champions League and the Uefa Cup.
He is adamant, too, that this initiative will not be quietly ditched. "In three to five years I want to resolve the situation of debt, which does not apply only to England," he said. "It's the second part of my programme." Platini, as a great player of the 1970s and 1980s, was at first underestimated when he took over as Uefa president last year. Subsequently, though, he has shown how effective he can be once he has identified a specific priority.
After coming to an agreement with Uefa over disputed matters, the G14 group disbanded, so withdrawing the threat that it would form a breakaway European league. A European Club Association (ECA) is being established in its place and the planned make-up means that a majority of its members will almost certainly be supportive of Platini's stance.
Chelsea's wages, which amount to £133m a year, stand at 70% of the £190m turnover. Manchester United's spending in the same area is, at £92.3m, well below half of the £212m turnover. In England, though, there are several clubs of varying sizes who have let salary costs run out of control. All will have to reform themselves if Platini gets his way.
The Uefa president did not confirm that he has wages alone in mind. Platini would hardly be comfortable with that combined debt of £1.5bn for United and Chelsea. The Stamford Bridge club may be the more at ease of the two clubs since their loans come from their proprietor Roman Abramovich. The Uefa president is unlikely to be obsessive about the subject when there is much else on the agenda. Tomorrow he will discuss with his executive committee the potential expansion of the European Championship from 16 to 24 countries in time for the 2016 finals. Platini claims that he has not yet come to a conclusion on that subject himself.
On July 2 and 3 he will be in Ukraine, who are meant to be joint hosts of Euro 2012 with Poland. There has been scant progress there so far and the contract to renovate the Olympic stadium in Kiev seems as if it will have to be put out to tender again after problems with the Taiwanese contractor. Platini himself is deeply troubled and the tournament may yet have to be switched. Spain has been mentioned as an alternative as has a joint bid from Scotland and Ireland. Sports City, 26th Jun 2008
Maria Sharapova is back to her old tricks, grunting at levels to match a pneumatic drill. The 21-year-old Russian let out a volley of shrieks and yelps as she played fellow Russian Alla Kudryatseva in the second round of Wimbledon. Using a digital sound level meter, The Telegraph recorded maximum decibels of 103.2, louder than a motorcycle or a lawnmower. She grunted loudly as she lost the first set, but her noisiest offering came as she served for the first time in the second set. Her opponent remained silent throughout, going on to win the match. The Telegraph UK, 26th Jun 2008
INFO BOX
8.62 Million Wireless Subscribers added in May 2008
Total 8.46 million telephone connections (Wireline and Wireless) have been added during May 2008 as compared to 8.00 million connections added in April 2008. The total number of telephone connections reaches 316.97 million at the end of May 2008 as compared to 308.51 million in April 2008. The overall tele-density is 27.59% at the end of May 2008 as against 26.89% in April 2008.
The total wireless subscribers (GSM, CDMA & WLL(F)) base stood at 277.92 million at the end of May 2008. A total of 8.62 million wireless subscribers have been added during the month of May 2008 as against 8.21 million wireless subscribers added during the month of April 2008. In the wireline segment, the subscriber base has slightly decreased to 39.05 million in the month of May 2008 as against 39.21 million subscribers in April 2008. Indiantelevision.com, 26th June 2008
SPORTS SHORTS
* The Intellectual Property Office (IPO) of the Philippines has served its first ever temporary restraining order (TRO) against a pirate cable operator – Turtle Cable, a company in Baao, Camarines Sur province – for copyright infringement. This latest move by the IPO has been applauded by the international pay-TV industry. The Cable & Satellite Broadcasting Association of Asia (CASBAA) welcomed the decision. "This is the first time we have brought a cable piracy case to the IPO, and we are pleased that the IPO administrative judge has recognized the validity of the TV industry’s concerns about protecting our intellectual property," said Simon Twiston Davies, Chief Executive Officer of CASBAA. AdvancedTelevision.com, CASBAA.com, Rapid TV News, Worldscreen, 27th June 2008
* The Telecom Regulatory Authority of India has rejected ESPN's contentions, seeking to allow it to make mandatory for DTH operators to offer its channels in the entry level pay tier, while working out pricing on a mutually agreeable basis. ESPN, involved in legal spat with DTH operator Tata Sky, had asked Trai through its new Reference Interconnect Offer (ROI) its intention to make it compulsory for DTH operators to take all three channels — Star Sports, ESPN and Star Cricket — collectively in their base package. Sports City, 26th Jun 2008
* MediaCorp's Caldecott Productions International (CPI) will be launching its HD channel Caldecott HD on internet and IPTV platforms such as Babelgum, Joost, Factual TV, ClixSmartv, WOWtv within the next few months. "The first 18 months were best analogous to paving roads in territories where there were none before. Right from the start, our mission was different because we wanted to find original stories that have an untainted voice in the storytelling technique," Hee Yah Ong, managing director and executive producer for CPI, said. Marketing-Interactive.com, 26th June 2008
* Speculation of Malaysia-based Astro buying out Star's 25.9 per cent stake in Balaji Telefilms lifted the shares of the television production house to as much as 9.44 per cent, but the stock closed Thursday only 0.66 per cent up to Rs 199.35 on the BSE. Balaji Telefilms and Star executives refused to comment, but the market has carried their uneasy relationship to speculate on the possible buyers. The names that have been doing the earlier rounds are Reliance ADAG and Eros International. Astro has shown aggression in the Indian media market and holds stake in Red FM and in Sun Direct, the DTH venture of Kalanithi Maran's Sun Group. Indiantelevision.com, 26th June 2008
* Discovery Networks India (Discovery) is set to air Ultimate Olympics, a one-hour, four-part series, from 14 July. The series will be aired every Monday at 9 pm. Ultimate Olympics aims to take a look at the "innovation, endeavor and commitment" that China and her athletes are pouring into hosting and participating in the sporting event. The series, produced by Discovery’s international production, has been in the making for the past 18 months. Indiantelevision.com, 26th June 2008
* UEFA’s new approach to providing video content for the official website of Euro 2008 was essential to ensure that it kept up-to-date with today’s methods of media consumption. All 31 matches have featured live video streaming, as well as near live mobile clips, edited video on demand (VOD) highlights and live coverage direct from the stadia in multilingual format. Euro2008.com also offers highlights and full replays of games, as well as interviews and analysis. 173 matches that have been played in the Finals since 1960 are also available. All matches have been streamed live thanks to partnerships with broadcast partners on a subscription basis, along with match highlights and interviews. Sports Media, 26th Jun 2008
* A1GP World Cup of Motorsport plans to offer world feed TV broadcast in high definition. A1GP is carried by more than 45 broadcast licensees, reaching nearly 180 countries and territories around the globe, but under the new plans they will all now be given the option to receive A1GP's host broadcast in high definition. Broadcasters without high definition channels will still be able to receive the standard definition feed. Pictures will be from 60 cameras situated around the track, in the pits and on the A1GP cars, manned by a crew of 130 production staff and engineers. Sports Media, 26th Jun 2008
* The F1 season will stretch to 19 races in 2009 after a race in Abu Dhabi was added to the calendar. The season will start later than normal in Australia on 29 March and will end in Abu Dhabi on 15 November. The FIA published the draft calendar after a meeting of its World Motor Sport Council. There will be four back-to-back races, starting with Australia and Malaysia. F1 has only once before had a 19-round championship, in 2005, but earlier this year, team bosses backed plans to expand the calendar to 20 races a year. India and South Korea are hoping to make their debuts in 2010 while F1's commercial supremo Bernie Ecclestone would like to include Russia and the United States. Sports City, 26th Jun 2008
* The PGA Tour unveiled a new competition that will see golfers challenge the game's most celebrated holes with the winner receiving $1 million (506.5 million pounds). The Kodak Challenge, which will debut in 2009, will combine the PGA Tour's most famous holes into a year long 18-hole event that golf officials hope will help maintain fan interest later into the season after the majors and FedEx Cup is completed. The player who posts the lowest score relative to par on 18 of the Challenge holes will receive the $1 million prize. Details have not been finalised but the Challenge is expected to include a minimum of 24 tournaments. Sports City, Sportcal, 26th Jun 2008
MORE NEWS
Global/Broadcast: Storms Knock out Euro 2008 TV Feed
A violent thunderstorm in Austria caused a power cut at the Euro 2008 International Broadcast Centre in Vienna last night, resulting in television broadcasters worldwide losing their signal at several points during the Germany-Turkey semi-final. During the second-half, television and internet images cut out several times, resulting in viewers missing key moments of the match, as Germany took a 2-1 lead, then conceded an 86th minute equalizer, before defender Phillip Lahm scored an 89th minute winner.
In a statement, Uefa said, “Tonight the television signal in the International Broadcast Centre for the Germany-Turkey game has been interrupted several times in the second half due to technical reasons which are currently being investigated, in particular to evaluate the impact of the violent electrical storm over Vienna at that time.”
Uefa was initially unable to explain why two broadcasters, Swiss public-service broadcaster SRG and Middle-East broadcaster Al-Jazeera, were able to maintain coverage throughout the second-half. It later transpired that SRG was able to access a feed sent to Swiss stadiums. SRG also provided the feed to German broadcaster ZDF for 15 minutes.
The heavy rain, high winds and lightning also resulted in the evacuation of a fanzone in Vienna, during which two people were injured after being trampled in the rush to leave. The order to close the fan zone was given after the storm winds exceeded 100 kilometers per hour. Sport Business, Sports City, 26th Jun 2008
The BBC and ZDF are among the broadcasters said to be considering filing formal complaints with UEFA after a power outage disrupted the broadcast of last night’s Euro 2008 semi-final match between Germany and Turkey. Almost 20 minutes of last night’s gripping match, watched by a reported 30 million viewers in Germany alone, went unaired in the second half, including Miroslav Klose’s goal that put Germany ahead, followed by Turkey’s equalizer. The feed returned in time for Germany’s final 3-2 winning goal, before going down again at the end of the match. Worldscreen, 26th Jun 2008
China/New Media: CCTV.com Wants More Olympic Internet Deals
CCTV.com, the internet arm of the Chinese state broadcaster CCTV, has said that it is looking to agree deals with more Chinese websites for internet coverage of the 2008 Olympic Games in Beijing after signing sub-licensing deals with a trio of companies, including the Sohu.com portal.
It emerged earlier this month that Sohu, already a partner of the games, had acquired webcasting rights from CCTV.com, but deals have also been agreed with two more domestic websites – Pps.tv and Uusee.com. CCTV.com is reportedly negotiating with another eight commercial websites and over 100 local government websites and a final list of internet partners is to be revealed at the end of this month, a CCTV.com spokeswoman told the China Economic Times newspaper.
The Pps.tv and Uusee.com deals are similar to the Sohu deal, the spokeswoman said. Sohu will be able to offer live webcasts and video-on-demand coverage of the games, providing what it claims will be ‘total coverage of Chinese representatives, athletes, teams and Olympic champions at least 60 seconds ahead of any other website.’
There was controversy over CCTV’s initial acquisition of the internet rights for China last December, with accusations that it acquired the rights for well below the market value, thanks to the intervention of the Chinese government. It was claimed that the International Olympic Committee had been intent on an open bidding process, but that Sohu.com and Sina.com withdrew their bids under threat from the government. Sportcal, 26th Jun 2008
Elsewhere/Rights: ARD Questions Soccer Rights After Sat.1 Uefa Deals
ARD, the German public-service broadcaster, has warned that soccer rights are running the risk of becoming too expensive after losing out to Sat.1, the commercial network, in the race to secure rights to soccer’s top European club competitions. Sat.1 recently completed a deal for rights to the Uefa Champions League, the top-tier European clubs tournament, and the second-tier Uefa Cup from 2009-10 onwards, and Fritz Raff, ARD’s chairman, reacted in an interview by saying that ‘there is a danger in the air that soccer, as a product, will become too expensive’ and that ‘there are too many expectations on behalf of the rights holder.’
Raff told the Westfälische Rundschau newspaper that he was ‘sad’ not to have won the rights to Europe’s club competitions, but stressed that the broadcaster must realise its limitations, saying: ‘We are not only passionate programme makers but also conscientious businessmen. Then you must know where the limits are.’
ARD is reported to have bid €20 million ($31.5 million) a season for Uefa Cup rights, not enough to eclipse Sat.1. Referring to Sat.1’s acquisition, Raff said, ‘If you are in distress, then you reach for the last straw. And at the moment that’s soccer rights.’ Sportcal, 26th Jun 2008
Elsewhere/Rights: France Télévisions Eyes Champions League Rights
France Télévisions, the French public-service broadcaster, is reported to be interested in acquiring rights to the Uefa Champions League, European soccer’s top-tier clubs competition. Daniel Bilalian, the head of sports at France Télévisions, is keen to see the Champions League coverage move from TF1, the French commercial network and incumbent rights holder, to France 2, the main channel of France Télévisions, reports Le Parisien-Aujourd'hui, the French daily newspaper.
France Télévisions has never broadcast the competition before and a bid could cause the public-service broadcaster budgetary problems. TF1 holds rights until the end of the 2008-09 season, along with Canal Plus, the French pay-television operator, and is thought to pay between €40 million ($62.8 million) and €45 million a season.
New deals in France will be for three seasons from 2009-10 onwards. France Télévisions holds soccer rights for the Coupe de la Ligue, the French league cup competition, and the Coupe de France, the French national cup competition, but recently lost highlights rights to Ligue 1, the top-tier French league. Sportcal, 26th Jun 2008
Elsewhere/General: Mosley’s Takeover Plans Spark FIA Action
The FIA took the first step in Max Mosley’s masterplan to wrest control of Formula One and its revenues from Bernie Ecclestone yesterday by announcing that it is to conduct a full review of the way the sport is governed. After a meeting of its World Motor Sport Council in Paris, chaired by Mosley, its president, the world governing body said that it will enter into “a wide-ranging consultation with the Formula One teams to examine plans for improved efficiency, including new technical regulations for the championship”. It added that the review will include a rethink of the “governance of Formula One”.
The statement went on to announce the entry deadline for next year’s championship, which has been brought forward, without warning, to the end of next month. This was being seen by Mosley’s critics as his way of heading off the threat of a breakaway series outside the auspices of the FIA by teams who no longer want to work with him in the wake of the scandal over his private life.
In another surprise, widely viewed as designed to hurt Ecclestone, the Formula One commercial rights-holder, and CVC Capital, his business partner, the FIA also announced the setting up of a new Formula Two championship. This will be styled as a feeder series for Formula One at the expense of the GP2 Series, which is owned by Ecclestone and CVC. The FIA’s statement was bland, but the spin in the background from the organisation’s spokesmen made it clear that it marks the first salvo in what some view as a battle between Mosley and Ecclestone over the future of the sport and the hundreds of millions of pounds it generates.
Mosley is aiming to enlarge the FIA’s role in deciding how much of the sport’s revenues go to the teams and is said to be aiming to increase annual payments to them by up to 25 per cent. Ecclestone is determined that the FIA should not interfere with the commercial side of the sport and believes that the European Commission would intervene if Mosley presses ahead. However, in recent days it has emerged that the FIA has taken soundings from the Commission about its role and claims it has received what amounts to a green light to proceed along the lines advocated by Mosley. Sports City, Sportcal, 26th Jun 2008
Elsewhere/General: Platini Sends Financing Warning to Europe's Top Clubs
Michel Platini is determined to reform the finances of Europe's debt-ridden clubs. The Uefa president was at pains to emphasise that this is as much an issue in Spain and Italy as it is in England, but his pledge will be noted in particular by Chelsea and Manchester United. Together, according to their most recent accounts, they owed a total of £1.5bn to creditors. Platini wishes, in the long term, to license clubs and then exclude those who do not meet the financial criteria from the Champions League and the Uefa Cup.
He is adamant, too, that this initiative will not be quietly ditched. "In three to five years I want to resolve the situation of debt, which does not apply only to England," he said. "It's the second part of my programme." Platini, as a great player of the 1970s and 1980s, was at first underestimated when he took over as Uefa president last year. Subsequently, though, he has shown how effective he can be once he has identified a specific priority.
After coming to an agreement with Uefa over disputed matters, the G14 group disbanded, so withdrawing the threat that it would form a breakaway European league. A European Club Association (ECA) is being established in its place and the planned make-up means that a majority of its members will almost certainly be supportive of Platini's stance.
Chelsea's wages, which amount to £133m a year, stand at 70% of the £190m turnover. Manchester United's spending in the same area is, at £92.3m, well below half of the £212m turnover. In England, though, there are several clubs of varying sizes who have let salary costs run out of control. All will have to reform themselves if Platini gets his way.
The Uefa president did not confirm that he has wages alone in mind. Platini would hardly be comfortable with that combined debt of £1.5bn for United and Chelsea. The Stamford Bridge club may be the more at ease of the two clubs since their loans come from their proprietor Roman Abramovich. The Uefa president is unlikely to be obsessive about the subject when there is much else on the agenda. Tomorrow he will discuss with his executive committee the potential expansion of the European Championship from 16 to 24 countries in time for the 2016 finals. Platini claims that he has not yet come to a conclusion on that subject himself.
On July 2 and 3 he will be in Ukraine, who are meant to be joint hosts of Euro 2012 with Poland. There has been scant progress there so far and the contract to renovate the Olympic stadium in Kiev seems as if it will have to be put out to tender again after problems with the Taiwanese contractor. Platini himself is deeply troubled and the tournament may yet have to be switched. Spain has been mentioned as an alternative as has a joint bid from Scotland and Ireland. Sports City, 26th Jun 2008
Thursday, 26th June 2008
DID YOU KNOW?
Wimbledon officials have brought out the big guns in the effort to keep pesky pigeons out of the environs of the All England club as they field a "death squad" armed with air rifles. Wimbledon says it brought out the sharpshooters after a pair of hawks failed to stop the pigeon invasion. The birds are especially irritating if they choose to dive-bomb centre court during the heat of matches. WebIndia123.com, 25th June 2008
DATA BOX
1.7 Billion Mobile Web Users by 2013
Juniper Research Results published on Fierce Wireless, 25th Jun 2008
The number of subscribers using mobile Internet services will rise from 577 million currently, to top 1.7bn by 2013, spurred by demand for collaborative applications known collectively as ‘web 2.0', and greater 2.5/3G penetration. Established mobile players face increasing competition from web-based brands and will have to adapt their commercial strategies to accommodate greater collaboration with other members of the value chain, if future revenue growth in the mobile web 2.0 space is to be achieved.
An Open Mobile Internet
Social networking; User Generated Content (UGC); Instant Messaging (IM); Location Based Services (LBS); Search calls for delivery of the mobile Internet as it was originally conceived - i.e. an open environment in which users are able to share, collaborate and exploit content/information without any one party controlling the value chain.
This marks a fundamental shift for the industry towards the D2C (direct-to consumer) model and places growing pressure on mobile network operators (MNOs) and handset manufacturers in particular, to relinquish some of their control over the value chain, by opening up their networks/devices to third-parties.
New Business Models
"Major web players have already crossed the Rubicon and established themselves in the mobile domain, placing the onus on MNOs and other members of the value chain to form innovative relationships and grab a share of the new revenue streams being created,"
Ian Chard, Juniper Research Analyst and author of the report ‘Mobile Web 2.0: Leveraging ‘Location, IM, Social Web & Search 2008-2013' said: "The mobile web 2.0 market is still nascent and business models remain in a state of flux, so there is still time for players to establish fruitful partnerships that build on their strengths and are reciprocally beneficial. The window of opportunity, however, is closing."
Other findings from the report
* The Far East & China region will be the largest market for mobile web, reaching almost 416 million users by 2013, up from a year-end figure of 190 million users in 2008
* The greatest untapped potential for mobile web lies in South America, while growth will be more measured in markets such as Eastern and Western Europe - where fixed broadband penetration is relatively high
* As with the fixed Internet, many mobile web 2.0 applications will need to be provided at base cost/flat-data rates (or even free of charge), forcing industry players to seek new revenue streams
SPORTS SHORTS
* IEC in Sports, the Stockholm-based sports agency, has won a new contract to continue handling the broadcast rights of the ATP Thailand tennis worldwide, except for south-east Asia, until 2010. The new agreement covers all television rights, as well as new media. IEC represents nine ATP and women's WTA tournaments in the Asia Pacific region. Sportcal, 25th Jun 2008
* Asian satellite operator Measat’s fourth satellite, Measat 3a, has been scheduled to launch on August 21. Constructed by Orbital Sciences Corp, MEASAT-3a will be launched on a LandLaunch Zenith–3SLB launch vehicle. Measat 3a will broadcast from the 91.5 degrees East slot, operating in tandem with Measat 3 at the same location and providing in-orbit satellite redundancy services for key customers. RapidTVnews.com, 25th June 2008
* India’s new digital Headend in the Sky (HITS) service from Subhash Chandra’s Wire & Wireless India Ltd (WWIL) will be a part of the temptation to persuade India’s cable-wallahs to convert to digital transmission. There’s another significant prize for those that convert – instant movies. HITS is talking to movie studios about gaining rights to show the latest movies, Bollywood as well as Hollywood, on its system. The advantage to the studios is they get instant VOD revenue-sharing cash, and most importantly piracy is reduced. Besides WWIL there’s enthusiasm from Incablenet, the Hinduja brothers MSO that supplies about one third of India’s cable homes. Rapid TV News, Asia On Screen, 25th Jun 2008
* What a major breakthrough in the history of Asian Racquetball: The construction for the first and long awaited portable racquetball court in Asia has now started in Korea. The court will be used for the first time next weekend already for a tournament in Korea and will be another great marketing tool to support the positive efforts to promote racquetball in Asia. The court is owned by the Korean Racquetball Federation, but it will also be shipped to Kaohsiung, Taiwan next year for the racquetball competitions at the 2009 World Games, where another (second) court will be built extra for this event. Sport City, 25th Jun 2008
* PCCW’s Richard Li is back in the news, with a grand plan to consolidate the media and telecoms assets of PCCW into one firm, HKT Group Holdings, of which he would sell 45% to new investors and possibly move toward an IPO in a couple of years. PCCW is inviting proposals from investors interested in the stake, with interest already drawn from international players. The proposed deal has already created a storm of publicity, given that Li's previous attempt to sell a stake in PCCW two years ago created a furor and ended in abject failure. Telecom, 23rd Jun 2008
* Singapore is hosting the inaugural Asian Youth Games July 2-9, 2009 which will help prepare the city when to host the inaugural Youth Olympic Games August 14-26, 2010. It was confirmed the Games will feature eight sports – track and field, bowling, beach volleyball, three-on-three basketball, sailing shooting, swimming and diving, and table tennis. The Singapore Sports Council (SSC) and Ministry of Education will spearhead the organization of the Asian Games. Hosting the Asian Youth Games was part of Singapore’s bid plan submitted to the International Olympic Committee (IOC) when it was bidding to stage the Youth Olympics, reports Channel News Asia. Sports City, 25th Jun 2008
* The IOC has issued sweeping restrictions to non-rights holding media for the Beijing 2008 Games. These regulations represent a marked increase in rights protection from the Turin 2006 Winter Olympic Games. Non-rights holders are forbidden from distributing online audio or video of sporting action, interviews with athletes or the Opening and Closing Ceremonies. The rules enforce heavy restrictions upon all from of multimedia in and around the field of play. There is also a requirement that non-rights holders must remove games related content from media sites by August 7th the day before the commencement of the Games. Sport Business, 25th Jun 2008
* The Fédération Internationale de Hockey Association (FIH) has launched a new YouTube service at www.youtube.com/WorldHockey . The site allows visitors to watch full-length coverage of all matches at the WorldHockey Champions Trophy, currently taking place in the Netherlands. Following the Champions Trophy, additional FIH content will be available on the site; highlights, player interviews and the Federation's monthly magazine show, 'ABN AMRO WorldHockey'. The YouTube site is designed to complement the FIH's free-of-charge live streaming offerings at www.worldhockey.tv. Sports Insider, 25th Jun 2008
* Infront Sports & Media inked a 3-year agreement with the World Curling Federation (WCF) from 2008-2011. Infront's title will be "Official Marketing Partner of the World Curling Federation". Their role covers exploitation of all media and marketing rights on a worldwide basis, except in territories where existing agreements are in place. The production of the broadcast and new media signal for worldwide distribution will continue to be handled by the WCF. The deal covers Championship events including the annual Men's and Women's World Curling Championships and the annual European Curling Championship. The deal means the Swiss-based sports marketing group has official partnerships with six of the seven Olympic Winter Sports. Sport Business, Sports City, Sportcal, 25th Jun 2008
MORE NEWS
Asia/Rights: Rive Gauche Licenses to 7 Broadcasters
Los Angeles-based Rive Gauche Television has licensed the television broadcast rights of some of their reality and documentary shows to seven broadcasters in Asia. The announcement was made by Riche Gauche Television SVP international sales Dorothy Crompton.
The shows licensed to the broadcasters are:
* Media Corp (Singapore) has acquired Video Zonkers Season 1, Real Strange, Whacked Out Sports Seasons 1 & 2, and Is That A Nail In Your Head?.
* AXN (Pan Asia) has acquired Video Zonkers Season 2.
* Solar (Philippines) has secured Whacked Out Sports.
* Leland Ling (China) has purchased Sports Disasters Seasons 2-6, Outrageous Home Videos, and Anatomy of a Giant.
* Henry Advertising (China) has acquired Dino Lab.
* Trans TV (Indonesia) has secured Great Streets, Sports Disasters Seasons Two-Five, Ultimate Ten and World’s Most.
* PT Cakrawala (Indonesia) has acquired King of Crash, Sports Disasters Season 6, Ultimate Ten, World’s Most Dangerous Sports Events, What Were They Thinking?, and When Good Times Go Bad. Worldscreen, 25th Jun 2008
India/Broadcaster: Trai Rejects ESPN's Price Contentions
The Telecom Regulatory Authority of India has rejected sports broadcaster ESPN's contentions, seeking to allow it to make mandatory for DTH operators to offer its channels in the entry level pay tier, while working out pricing on a mutually agreeable basis. ESPN, involved in legal spat with DTH operator Tata Sky, had asked Trai through its new Reference Interconnect Offer (ROI) its intention to make it compulsory for DTH operators to take all three channels — Star Sports, ESPN and Star Cricket — collectively in their base package.
The Telecom Regulatory Authority of India has also directed sports broadcaster ESPN to modify its Reference Interconnect Offer within 15 days and offer to Direct to Home (DTH) operators the same bouquets which are being offered for non-CAS cable distribution.
In its eight-page order, Trai said ESPN should offer to the DTH operators the bouquets/ channels at 50 per cent of the rates at which such bouquets/channels are being offered for non-CAS cable distribution, that is, non-addressable platforms so as to comply with the norms laid down by the Telecom Dispute Settlement Appellate Tribunal (Tdsat) in letter and spirit. SPN was also asked not to impose conditions in its revised RIO dated 15 May, 2008; and to submit to the Authority a report of compliance with the directions, along with a copy of its modified RIO.
Tdsat had on 31 March last year and its judgment of 14 July, 2006, said that the rates for DTH platforms were to be 50 per cent of the rates at which the bouquets/channels are being offered for non-CAS cable distribution and to protect the interests of service providers and consumers of the broadcasting sector and cable sector. The Regulator also said the order was necessary to promote and ensure orderly growth of the broadcasting sector and cable sector. Trai rejected the contentions of ESPN seeking permission to offer its channels in the entry level pay tier on a mutually agreeable basis.
"Various factors, including high cost of content, reduced demand for a sports channel when there are no sporting events, mandatory sharing of content with the national broadcaster and time limit to advertisements are the factors which are generally taken into consideration while arriving at non-CAS prices of the sports channel," TRAI said. Therefore, these factors do not necessitate any special treatment for a sports channel, it added in its directive to the broadcaster. Indiantelevision.com, 25th June 2008
Wednesday, 25th June 2008
DATA BOX
HDTV to Boost ARPUs of Pay TV Operators
Euroconsult Study for Measat published on Indiantelevision.com, 24th June 2008
Bullish on HDTV, a majority of pay TV operators expect it to increase ARPUs (average revenue per user) and have identified it as a key strategic priority for their business. The rollout of HDTV is being spearheaded by newer pay TV platforms looking to differentiate their offerings from existing platforms, a Measat Satellite Systems and Euroconsult joint study in the Asia-Pacific region said.
More established platforms were taking a slower approach to implementing HDTV. According to the study, 75 per cent of pay TV operators surveyed have, or were planning, to launch a HDTV offering during 2008. The study, which was conducted during May by Euroconsult, polled the rationale, benefits, challenges and expectations of HDTV amongst the Asia-Pacific pay TV operators. 25 operators in 15 markets, collectively serving more than 24 million subscribers, were interviewed.
Interviews conducted suggested that HDTV was seen as not particularly easy or difficult to introduce. The lack of substantial HDTV content – both local and international – was viewed consistently as the most important roadblock for developing the HDTV sector in the region. Said Measat CEO Paul Brown-Kenyon, "The results from this study are very interesting. The insights will help us determine how best we can support our customers and partners in the development of this important segment.”
Added Euroconsult MD Pacome Revillon, “The study provides clear evidence of faster development of HD offerings in Asia than previously expected. Opportunity for growth and increasing competitive pressure are the primary factors driving pay-TV broadcasters to develop an HD offer.”
Beijing Sponsorships Gaining Chinese Recognition
CTR Market Research published on Sport Business, 24th Jun 2008
70% of Chinese consumers consider Olympic sponsorship a positive endorsement of a company’s products, according to a report by China’s largest market research company, CTR Market Research. The report said that 53.9% of those polled would purchase products from an Olympic sponsor.
According to the study, US soft drink manufacturer, Coca-Cola and China’s largest computer maker, Lenovo, are the brands which are most associated in the minds of Chinese consumers with the Games. Around 31 per cent of participants correctly identified Coca-Cola as an official sponsor and 19.5 per cent for Lenovo - the highest in their respective industries.
CTR also said that the Olympics image association was most uneven in the beer industry. While China's top brewer, Tsingtao was the most widely recognised for its official sponsorship among all the three official beer sponsors, at 24.1 per cent, the other two beer sponsors, Anheuser-Busch's Budweiser and Beijing's Yanjing Beer were correctly identified by only 9.6 per cent and 3.3 per cent respectively.
Global Entertainment and Media Outlook
PricewaterhouseCoopers Report on Info IQ, 24th Jun 2008
The global entertainment and media (E&M) industry will reach $2.2 trillion in 2012, growing at a 2008-2012 compound annual growth rate (CAGR) of 6.6%, according to PricewaterhouseCoopers. E&M companies over the next five years will need to accommodate dramatic changes in devices, as well as market and consumer behavior, by striking strategic business alliances if they are to drive growth. Several critical technologies - e.g., broadband, mobile, digital cinema, HD TV - are reaching tipping points that will deeply influence both the pace and direction of entertainment and media growth over the next five years.
The global broadband boom continues unabated, fueling overall growth, and more than doubling again to 661 million households in 2012, a 16.4% compound annual increase during the forecast period. With the exception of recorded music, in which case digital distribution will surpass physical distribution in 2011, established and traditional business segments will continue to dominate revenues. For example, TV subscription and license fees will show growth in all regions, growing at a 10.1% CAGR overall, from $173.5 billion in 2007 to $280.8 billion in 2012.
Nevertheless, digital and mobile are driving growth. Although digital and mobile distribution comprised only 5% of global E&M spending in 2007, these revenues will account for 24% of all growth throughout the industry during the next five years.
By 2012, digital and mobile revenues will account for just 11% of total E&M spending, or $234 billion of the $2.2 trillion global market. The US remains the largest but slowest-growing E&M market, growing at a 4.8% CAGR and reaching $759 billion in 2012. Internet advertising and internet access spending will be the only two segments with double-digit growth during the next five years, boosted by continued growth in broadband. In the US, consumers are taking a preference for free, or heavily discounted, ad-support ed content and services in the new digital and mobile environment. This ensures that the importance of advertising will continue to grow - both to entertainment and media companies themselves and to their customers.
Although internet advertising growth will moderate, it will see the most robust growth, at 19.5% CAGR through to 2012 globally. Internet access (12.1% CAGR), video games (10.3% CAGR) and television subscriptions and license fees (10.1% CAGR) will all experience double-digit growth. More established segments - television advertising (5.9% CAGR), theme parks (5% CAGR), casino gaming (6.5% CAGR), filmed entertainment (5.3% CAGR) and sports (6.5% CAGR) - are all set to grow at between 5% and 7% compounded annually. The publishing segments, including Newspapers (2.2% CAGR), Consumer Magazine (3.5% CAGR), Consumer & Educational books (2.8% CAGR), Business-to-business publishing (3.2% CAGR) as well as recorded music (-0.6% CAGR) face the stiffest challenges, where the declines in physical distribution are at their most significant and growth in digital distribution-although rapid-is struggling to make up for the shortfall.
The Net Generation continues to set the pace and direction of change in the entertainment and media industry while exhibiting an influence that is driving new business models that are revolutionizing the relationship between companies and their customers. As they make these technologies regular components of their everyday lives, the Net Generation is also driving the technology engagement of prior generations, connecting older generations with the latest trends in emerging media technology.
This growth will help sustain traditional formats even as this generation becomes increasingly interested in the platforms embraced by their children and grandchildren. Over the next five years, Asia Pacific and Latin America will be the fastest-growing regions. Double-digit increases are expected in each of those regions for internet advertising, internet access spending, TV subscription and license fees, casino and other regulated gaming and video games.
Key stats:
* In the BRIC countries, people under the age of 25 comprise at least 31% of the countries’ total populations - 43% in Brazil, 31% in Russia, 50% in India and 38% in China.
* In every region of the world except EMEA (East Europe, Mid East, Africa), the 50+ population will see double-digit growth rates, and globally this population will increase from 1.1 billion to 1.25 billion, a 13.1% rise through 2012.
* Spending in Asia Pacific will average 8.8% CAGR, the second highest of any region, increasing from $333 billion in 2007 to $508 billion in 2012.
* Vietnam will be the world’s fastest-growing television subscription and license fee market over the next five years-growing at 29.3% CAGR.
* The internet access market in Saudi Arabia and the pan-Arab states will grow at 30.1% CAGR, rising to $13.8 billion in 2012, surpassing Russia and rivaling France.
* Internet advertising, internet access spending and TV subscriptions will lead the industry expansion in Saudi Arabia and the pan-Arab states - with the broadband household universe expanding at more than 20% CAGR
* E&M markets across 15 countries will expand at double-digit annual rates during the next five years, with Saudi Arabia and the Pan-Arab region experiencing the fastest growth.
SPORTS SHORTS
* Prasar Bharati has arranged the live telecast of semi-final and final matches of Euro on Doordarshan National channel. The semi-final matches are scheduled to be held on 26 and 27 June at 12:15 am. The final match of Euro Cup will be played on 30 June 12:15 am. The Euro Cup is being telecast live on private sports broadcaster ESS. Indiantelevision.com, 24th June 2008
* Globo TV International has licensed the comedy series The Cleaning Lady to Malaysia’s Media Prima Berhad, which operates the country’s leading terrestrial network, TV3, as well as 8TV, ntv7 and TV9. Globo has been ramping up its presence in the region, scoring slots in China, India, Vietnam and Macau, among others. The Cleaning Lady is slated to launch in Malaysia in July, and will be dubbed into the local language. Worldscreen, 24th Jun 2008
* Mohamed bin Hammam, the president of the Asian Football Confederation, soccer’s continental governing body, wants to see the World Cup return to Asia in 2018 and encouraged several countries in the continent to bid for the tournament. Bin Hammam said: ‘I would like to see the Fifa World Cup back in Asia in 2018. We have a number of countries who are qualified to host it successfully.’ Asia held the World Cup in 2002 when Japan and Korea co-hosted the tournament. Asian countries that have expressed interest in hosting the 2018 event include China, Japan and Qatar, plus Australia, which now falls under the soccer governance of the AFC after switching from the Oceania Football Confederation. Sportcal, 24th Jun 2008
* IMG is in advanced talks to buy reality TV titan Mark Burnett Productions. Burnett Prods. has produced hit shows such as Survivor and Apprentice, and defined the genre of reality TV. The company has also done some major online deals, none of which have been huge, but certainly among the first big online-TV joint efforts, including the AOL Gold Rush and MySpace deals. Burnett has been shopping his company for months, and has been rumored to have talked with Endemol as well. The hefty pricetag, of as much as $400 million, is whats keeping a deal from happening. With IMG, it looks like half of the money may come in cash, and rest in earnout. Paid Content, 24th Jun 2008
MORE NEWS
Asia/General: Wimbledon Looks to Asia to Boost Merchandising Sales
Wimbledon, one of tennis’ four annual ‘Grand Slam’ tournaments, has targeted Asia as an important market for merchandising, and has opened two shops in Beijing as part of its expansion drive. Robert McCowen, marketing director of the All England Lawn Tennis Club, told the Reuters news agency that Asia is ‘booming’ and is ‘the fastest expanding market in the world for merchandising. Asians love brands and prefer to spend money on luxury goods rather than on their homes. Europe is a very mature market and it is very difficult to introduce the Wimbledon brand in depth there. Asia is a land of opportunity.’
In China alone, 34 shops sell branded Wimbledon merchandise across 14 cities, with two stores opened this year in Beijing ahead of the 2008 Olympic Games. India is another growing market for Wimbledon merchandise, including the sale of 10,000 limited edition scooters there. McCowen also said that there is a ‘room for a lot more expansion’ in the sale of Asian television rights to Wimbledon. This year's tournament, which started yesterday at the All England Lawn Tennis Club, is being seen in around 180 countries. Sportcal, Thaindian News, 24th Jun 2008, similar story yesterday
Elsewhere/General: English Clubs to Take Pay Cut?
UEFA will try to persuade English clubs to accept a smaller chunk of future Champions League revenues after latest figures revealed another bumper European pay-day for the four Barclays Premier League sides last season. Figures made available by UEFA on Monday showed that Manchester United, Chelsea, Liverpool and Arsenal earned a combined £102 million from Champions League television and sponsorship cash - a figure that does not include gate receipts or matchday revenue.
European champion Manchester United, unsurprisingly, was by far the largest earner in Europe with £33.9 million while beaten finalist Chelsea was next with £28.7 million, Liverpool took £21.1 million and Arsenal £18.3 million. Those four were also the top earners from the Premier League and UEFA is conscious that Europe's top club competition has created a wealth gap in domestic football. The current system is in place until 2012, but UEFA will seek to win backing for changes via the European Strategy Council, the consultative body representing clubs, leagues, players and associations.
William Gaillard, UEFA communications director and special adviser to the organisation's president Michel Platini, said: "We are well aware there are some imbalances in the revenue distribution which have a negative effect in national leagues by widening the gap between the rich and not so rich. We will talk to the clubs and see how they feel, and try to convince them that in the longer run it is not in their interest if, because of the way money is distributed, national leagues become too imbalanced. This is something we have to bring to the strategy council and find a consensus, but we will have a very wide consultation policy."
Gaillard said Platini's approach would be to win a broad agreement rather than impose the new system on the clubs. He added: "We have a situation that is fixed until 2012 so that gives us plenty of time to review it." The four English clubs earned a total of £102 million and Celtic and Rangers picked up a further £18 million meaning that 26% of the £462 million total Champions League television and sponsorship revenues ended up in British hands. The financial success is due to all four English clubs making the quarter-finals at least, and reflects the fact that the ITV/Sky Champions League deal is the largest of any country in Europe.
Simon Chadwick, professor of sports business strategy at Coventry University, said the Premier League clubs were benefiting from a "virtuous circle". "The more money you earn, the better the players you can sign, and the more success you have, and then you earn even more," said Chadwick. "But increasingly the big thing in the Premier League and in Europe is this issue of competitive balance. You don't want over-domination because that adversely affects the product." Chadwick said, however, that UEFA would be loath to upset the Premier League clubs because they added so much glamour to the European competition.
He added: "There is a global turf war for television sports fans going on - for example the NBA (National Basketball Association) in China has been much more proactive than football, and the Champions League needs the likes of Manchester United and Chelsea - and the clubs need the Champions League too for their own profiles." Outside of Britain, the biggest earner was AS Roma, the Italian club who made it furthest in the competition, with £22.9 million, while FC Barcelona, the only non-English club in the semi-finals, was slightly behind on £21.7 million. The lowest earner among the 32 was Shakhtar Donetsk of Ukraine, which earned £5.6 million. Football Insider, Sport Business, 24th Jun 2008
HDTV to Boost ARPUs of Pay TV Operators
Euroconsult Study for Measat published on Indiantelevision.com, 24th June 2008
Bullish on HDTV, a majority of pay TV operators expect it to increase ARPUs (average revenue per user) and have identified it as a key strategic priority for their business. The rollout of HDTV is being spearheaded by newer pay TV platforms looking to differentiate their offerings from existing platforms, a Measat Satellite Systems and Euroconsult joint study in the Asia-Pacific region said.
More established platforms were taking a slower approach to implementing HDTV. According to the study, 75 per cent of pay TV operators surveyed have, or were planning, to launch a HDTV offering during 2008. The study, which was conducted during May by Euroconsult, polled the rationale, benefits, challenges and expectations of HDTV amongst the Asia-Pacific pay TV operators. 25 operators in 15 markets, collectively serving more than 24 million subscribers, were interviewed.
Interviews conducted suggested that HDTV was seen as not particularly easy or difficult to introduce. The lack of substantial HDTV content – both local and international – was viewed consistently as the most important roadblock for developing the HDTV sector in the region. Said Measat CEO Paul Brown-Kenyon, "The results from this study are very interesting. The insights will help us determine how best we can support our customers and partners in the development of this important segment.”
Added Euroconsult MD Pacome Revillon, “The study provides clear evidence of faster development of HD offerings in Asia than previously expected. Opportunity for growth and increasing competitive pressure are the primary factors driving pay-TV broadcasters to develop an HD offer.”
Beijing Sponsorships Gaining Chinese Recognition
CTR Market Research published on Sport Business, 24th Jun 2008
70% of Chinese consumers consider Olympic sponsorship a positive endorsement of a company’s products, according to a report by China’s largest market research company, CTR Market Research. The report said that 53.9% of those polled would purchase products from an Olympic sponsor.
According to the study, US soft drink manufacturer, Coca-Cola and China’s largest computer maker, Lenovo, are the brands which are most associated in the minds of Chinese consumers with the Games. Around 31 per cent of participants correctly identified Coca-Cola as an official sponsor and 19.5 per cent for Lenovo - the highest in their respective industries.
CTR also said that the Olympics image association was most uneven in the beer industry. While China's top brewer, Tsingtao was the most widely recognised for its official sponsorship among all the three official beer sponsors, at 24.1 per cent, the other two beer sponsors, Anheuser-Busch's Budweiser and Beijing's Yanjing Beer were correctly identified by only 9.6 per cent and 3.3 per cent respectively.
Global Entertainment and Media Outlook
PricewaterhouseCoopers Report on Info IQ, 24th Jun 2008
The global entertainment and media (E&M) industry will reach $2.2 trillion in 2012, growing at a 2008-2012 compound annual growth rate (CAGR) of 6.6%, according to PricewaterhouseCoopers. E&M companies over the next five years will need to accommodate dramatic changes in devices, as well as market and consumer behavior, by striking strategic business alliances if they are to drive growth. Several critical technologies - e.g., broadband, mobile, digital cinema, HD TV - are reaching tipping points that will deeply influence both the pace and direction of entertainment and media growth over the next five years.
The global broadband boom continues unabated, fueling overall growth, and more than doubling again to 661 million households in 2012, a 16.4% compound annual increase during the forecast period. With the exception of recorded music, in which case digital distribution will surpass physical distribution in 2011, established and traditional business segments will continue to dominate revenues. For example, TV subscription and license fees will show growth in all regions, growing at a 10.1% CAGR overall, from $173.5 billion in 2007 to $280.8 billion in 2012.
Nevertheless, digital and mobile are driving growth. Although digital and mobile distribution comprised only 5% of global E&M spending in 2007, these revenues will account for 24% of all growth throughout the industry during the next five years.
By 2012, digital and mobile revenues will account for just 11% of total E&M spending, or $234 billion of the $2.2 trillion global market. The US remains the largest but slowest-growing E&M market, growing at a 4.8% CAGR and reaching $759 billion in 2012. Internet advertising and internet access spending will be the only two segments with double-digit growth during the next five years, boosted by continued growth in broadband. In the US, consumers are taking a preference for free, or heavily discounted, ad-support ed content and services in the new digital and mobile environment. This ensures that the importance of advertising will continue to grow - both to entertainment and media companies themselves and to their customers.
Although internet advertising growth will moderate, it will see the most robust growth, at 19.5% CAGR through to 2012 globally. Internet access (12.1% CAGR), video games (10.3% CAGR) and television subscriptions and license fees (10.1% CAGR) will all experience double-digit growth. More established segments - television advertising (5.9% CAGR), theme parks (5% CAGR), casino gaming (6.5% CAGR), filmed entertainment (5.3% CAGR) and sports (6.5% CAGR) - are all set to grow at between 5% and 7% compounded annually. The publishing segments, including Newspapers (2.2% CAGR), Consumer Magazine (3.5% CAGR), Consumer & Educational books (2.8% CAGR), Business-to-business publishing (3.2% CAGR) as well as recorded music (-0.6% CAGR) face the stiffest challenges, where the declines in physical distribution are at their most significant and growth in digital distribution-although rapid-is struggling to make up for the shortfall.
The Net Generation continues to set the pace and direction of change in the entertainment and media industry while exhibiting an influence that is driving new business models that are revolutionizing the relationship between companies and their customers. As they make these technologies regular components of their everyday lives, the Net Generation is also driving the technology engagement of prior generations, connecting older generations with the latest trends in emerging media technology.
This growth will help sustain traditional formats even as this generation becomes increasingly interested in the platforms embraced by their children and grandchildren. Over the next five years, Asia Pacific and Latin America will be the fastest-growing regions. Double-digit increases are expected in each of those regions for internet advertising, internet access spending, TV subscription and license fees, casino and other regulated gaming and video games.
Key stats:
* In the BRIC countries, people under the age of 25 comprise at least 31% of the countries’ total populations - 43% in Brazil, 31% in Russia, 50% in India and 38% in China.
* In every region of the world except EMEA (East Europe, Mid East, Africa), the 50+ population will see double-digit growth rates, and globally this population will increase from 1.1 billion to 1.25 billion, a 13.1% rise through 2012.
* Spending in Asia Pacific will average 8.8% CAGR, the second highest of any region, increasing from $333 billion in 2007 to $508 billion in 2012.
* Vietnam will be the world’s fastest-growing television subscription and license fee market over the next five years-growing at 29.3% CAGR.
* The internet access market in Saudi Arabia and the pan-Arab states will grow at 30.1% CAGR, rising to $13.8 billion in 2012, surpassing Russia and rivaling France.
* Internet advertising, internet access spending and TV subscriptions will lead the industry expansion in Saudi Arabia and the pan-Arab states - with the broadband household universe expanding at more than 20% CAGR
* E&M markets across 15 countries will expand at double-digit annual rates during the next five years, with Saudi Arabia and the Pan-Arab region experiencing the fastest growth.
SPORTS SHORTS
* Prasar Bharati has arranged the live telecast of semi-final and final matches of Euro on Doordarshan National channel. The semi-final matches are scheduled to be held on 26 and 27 June at 12:15 am. The final match of Euro Cup will be played on 30 June 12:15 am. The Euro Cup is being telecast live on private sports broadcaster ESS. Indiantelevision.com, 24th June 2008
* Globo TV International has licensed the comedy series The Cleaning Lady to Malaysia’s Media Prima Berhad, which operates the country’s leading terrestrial network, TV3, as well as 8TV, ntv7 and TV9. Globo has been ramping up its presence in the region, scoring slots in China, India, Vietnam and Macau, among others. The Cleaning Lady is slated to launch in Malaysia in July, and will be dubbed into the local language. Worldscreen, 24th Jun 2008
* Mohamed bin Hammam, the president of the Asian Football Confederation, soccer’s continental governing body, wants to see the World Cup return to Asia in 2018 and encouraged several countries in the continent to bid for the tournament. Bin Hammam said: ‘I would like to see the Fifa World Cup back in Asia in 2018. We have a number of countries who are qualified to host it successfully.’ Asia held the World Cup in 2002 when Japan and Korea co-hosted the tournament. Asian countries that have expressed interest in hosting the 2018 event include China, Japan and Qatar, plus Australia, which now falls under the soccer governance of the AFC after switching from the Oceania Football Confederation. Sportcal, 24th Jun 2008
* IMG is in advanced talks to buy reality TV titan Mark Burnett Productions. Burnett Prods. has produced hit shows such as Survivor and Apprentice, and defined the genre of reality TV. The company has also done some major online deals, none of which have been huge, but certainly among the first big online-TV joint efforts, including the AOL Gold Rush and MySpace deals. Burnett has been shopping his company for months, and has been rumored to have talked with Endemol as well. The hefty pricetag, of as much as $400 million, is whats keeping a deal from happening. With IMG, it looks like half of the money may come in cash, and rest in earnout. Paid Content, 24th Jun 2008
MORE NEWS
Asia/General: Wimbledon Looks to Asia to Boost Merchandising Sales
Wimbledon, one of tennis’ four annual ‘Grand Slam’ tournaments, has targeted Asia as an important market for merchandising, and has opened two shops in Beijing as part of its expansion drive. Robert McCowen, marketing director of the All England Lawn Tennis Club, told the Reuters news agency that Asia is ‘booming’ and is ‘the fastest expanding market in the world for merchandising. Asians love brands and prefer to spend money on luxury goods rather than on their homes. Europe is a very mature market and it is very difficult to introduce the Wimbledon brand in depth there. Asia is a land of opportunity.’
In China alone, 34 shops sell branded Wimbledon merchandise across 14 cities, with two stores opened this year in Beijing ahead of the 2008 Olympic Games. India is another growing market for Wimbledon merchandise, including the sale of 10,000 limited edition scooters there. McCowen also said that there is a ‘room for a lot more expansion’ in the sale of Asian television rights to Wimbledon. This year's tournament, which started yesterday at the All England Lawn Tennis Club, is being seen in around 180 countries. Sportcal, Thaindian News, 24th Jun 2008, similar story yesterday
Elsewhere/General: English Clubs to Take Pay Cut?
UEFA will try to persuade English clubs to accept a smaller chunk of future Champions League revenues after latest figures revealed another bumper European pay-day for the four Barclays Premier League sides last season. Figures made available by UEFA on Monday showed that Manchester United, Chelsea, Liverpool and Arsenal earned a combined £102 million from Champions League television and sponsorship cash - a figure that does not include gate receipts or matchday revenue.
European champion Manchester United, unsurprisingly, was by far the largest earner in Europe with £33.9 million while beaten finalist Chelsea was next with £28.7 million, Liverpool took £21.1 million and Arsenal £18.3 million. Those four were also the top earners from the Premier League and UEFA is conscious that Europe's top club competition has created a wealth gap in domestic football. The current system is in place until 2012, but UEFA will seek to win backing for changes via the European Strategy Council, the consultative body representing clubs, leagues, players and associations.
William Gaillard, UEFA communications director and special adviser to the organisation's president Michel Platini, said: "We are well aware there are some imbalances in the revenue distribution which have a negative effect in national leagues by widening the gap between the rich and not so rich. We will talk to the clubs and see how they feel, and try to convince them that in the longer run it is not in their interest if, because of the way money is distributed, national leagues become too imbalanced. This is something we have to bring to the strategy council and find a consensus, but we will have a very wide consultation policy."
Gaillard said Platini's approach would be to win a broad agreement rather than impose the new system on the clubs. He added: "We have a situation that is fixed until 2012 so that gives us plenty of time to review it." The four English clubs earned a total of £102 million and Celtic and Rangers picked up a further £18 million meaning that 26% of the £462 million total Champions League television and sponsorship revenues ended up in British hands. The financial success is due to all four English clubs making the quarter-finals at least, and reflects the fact that the ITV/Sky Champions League deal is the largest of any country in Europe.
Simon Chadwick, professor of sports business strategy at Coventry University, said the Premier League clubs were benefiting from a "virtuous circle". "The more money you earn, the better the players you can sign, and the more success you have, and then you earn even more," said Chadwick. "But increasingly the big thing in the Premier League and in Europe is this issue of competitive balance. You don't want over-domination because that adversely affects the product." Chadwick said, however, that UEFA would be loath to upset the Premier League clubs because they added so much glamour to the European competition.
He added: "There is a global turf war for television sports fans going on - for example the NBA (National Basketball Association) in China has been much more proactive than football, and the Champions League needs the likes of Manchester United and Chelsea - and the clubs need the Champions League too for their own profiles." Outside of Britain, the biggest earner was AS Roma, the Italian club who made it furthest in the competition, with £22.9 million, while FC Barcelona, the only non-English club in the semi-finals, was slightly behind on £21.7 million. The lowest earner among the 32 was Shakhtar Donetsk of Ukraine, which earned £5.6 million. Football Insider, Sport Business, 24th Jun 2008