RIGHTS FEE
=> The IAAF has announced the conclusion of a broadcasting deal negotiated by Dentsu with Ten Sports securing the rights for the Indian Sub Continent. Dentsu is IAAF’s exclusive commercial partner for all media rights worldwide, excluding Europe and Africa. Industry sources say that Ten’s payout for the rights is in the region of $ 100,000. Ten Sports will cover seven territories that includes a commitment to broadcast the IAAF World Championships and World Indoor Championships, during the period 2011 to 2014.
=> The race in Australia for AFL TV rights has stepped up, with Ch. 9 on equal footing with current FTA broadcasters Ch. 7 and 10. A decision could come within 2 weeks. Nine has a chance to snap up 4 games. If so, it could sub-licence two of the 4 games to Seven or Ten. Ability to show key games live into developing markets was a sticking point. But Nine could use multi-channels to ensure the option of choosing between live NRL and AFL. The league is keen for A$1 bil for the 5-year TV rights deal. Current pay-TV, Foxtel, shows every game live and this has changed the TV landscape for the AFL. Foxtel will pay A$500m for pay-TV rights for nine live games a round, four of which will be shared with FTA.
=> The NHL is poised for its biggest media rights deal, as presence of 3 bidders push annual rights fee above $200 mil. The NHL will entertain offers from ESPN and NBC/Versus and get a push from Turner. Fox is not in the running to pick up the rights. The presence of three bidders will push the league's rights fee well beyond $77.5 mil /year that Versus now pays. The fee is expected to exceed $120 mil /year average that ESPN paid from 1999 to 2004, still the NHL's largest contract to date. The league's current deal with NBC is a revenue-sharing deal that does not involve a rights fee. NBC and Versus hold advantage over other bidders; their current contracts give them the right to match other offers the NHL gets. Turner makes the most intriguing potential, looking to add sports to its TruTV lineup into its 93 mil homes.
=> [Excerpt] In the USA, industry analysts claim that Fox are paying the Big 12 an enormous $90 mil annually for 13 years for second tier games, making it the key for keeping the Big 12 together. With this deal, media-rights money would equal or surpass income of Big Ten and Southeastern Conference schools because it would be added to the $60 mil annually the Big 12 receives from ABC and ESPN for first-tier games. The Big 12 would prefer for contracts for its first- and second-tier games aligned, but that’s not the case; the ABC/ESPN deal expires in 2015-16. The media-rights income doesn’t include bowl games and NCAA Tournament.
BROADCAST & DISTRIBUTION
=> The Australian Open said it is in talks with Panasonic about 3D broadcast of next year's tournament. The focus is on the Australian Open as the only grand slam yet to announce 3D plans. The 2012 Australian Open takes place Jan 16 to 29. Ch. 7 hold rights to the Australian Open until 2014, as does pay-TV, Fox Sports, who agreed with Seven to share coverage. This year, Wimbledon’s men’s singles semi and final and ladies’ singles final will be filmed in HD 3D and screened at cinemas around the world in co-operation between Sony, The AELTC and host broadcaster BBC.
DATA
=> Global advertising, largely thought to be in recovery, suffered setbacks with events in the Middle East and Japan making for a $2.4 bil loss this year. Publicis Group’s ZenithOptimedia, (ZO) shows the industry is posting reasonable growth of 4.2%, but global events forced a revision of initial estimates for 2011. ZO said in Egypt, there was almost no advertising on TV during the revolution, and advertisers are now very careful about content and placement of their messages. In Japan, most commercial ad slots were replaced with public-service announcements. Asia Pacific still managed to maintain momentum; it is expected to maintain growth of 6.6% and Asia-Pac (exc. Japan) will grow 10.2%. China (forecasted to grow avg 13.6% a year to 2013) will overtake Germany to be the world's third-largest ad market in 2011. China is currently 54% the size of Japan, the second-largest ad market, and will be 77% of its size in 2013. Brazil (15.4% annual growth) will overtake France (2.9%) to take sixth place in 2011. Russia (23.3% growth) will rise from 12th place in 2010 to tenth in 2011, eighth in 2012, and then seventh in 2013.
=> ZenithOptimedia's forecasts also show internet spending growing at breakneck pace, with average growth rate of 14.4% expected between 2010 and 2013. Online spending is forecast to overtake newspapers to become the world's second largest ad medium in 2013. This year, display advertising took over from search as main driver of internet ad growth. Display, broadly defined to include online video and social media, has been invigorated by these fast-growing segments. TV remains the largest medium and continues to increase its market share. TV held 40.4% of global adex in 2010, up from 37.3% five years earlier, and is expected to attract 41.7% in 2013.
OTHER BUSINESS NEWS
=> FIFA has said the main qualifying draw for the 2014 World Cup will take place in Rio de Janeiro, Brazil on Jul 30 at the Marina da Gloria, the venue for sailing at the 2016 Rio Olympic Games. The draw will allocate teams from 6 continental confederations into qualifying groups. Last month, FIFA ruled that there would be no change to number of World Cup places for each confederation in 2014, although there will be a draw for the 4 countries that play off for two spots. Hosts Brazil have already qualified, meaning there could be as many as six South American countries in the 2014 World Cup, scheduled between Jun 13 and Jul 13 in 12 Brazilian cities.
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