Monday, 30th April 2007

HEADLINE OF THE DAY

Badminton Enjoys Media Growth Ahead of Beijing Olympics

IEC in Sports said it has seen a significant boost in media interest in the sport of badminton ahead of the 2008 Beijing Olympic Summer Games. IEC represents the international media rights for the Super Series, a twelve tournament circuit with prize money of over $2.5 million. New broadcasters to air the Super Series include: Now Sports (Hong Kong) TV2 (Denmark) WCSN (USA) J-Sports (Japan) and SBS Medianet (Korea).

Rights are shared in China between CCTV, Beijing TV, Shanghai TV, Guangzhou TV and Chongqing TV. However, CCTV has increased their commitment and is accessing the Indonesian Open Super Series for the first time.

“The Super Series has added extra spice, since all tournaments played between May 1 2007 – 30 April 2008 will allow players to earn valuable points towards Olympic qualification. We see the top stars appearing across the entire Super Series, from Copenhagen to Jakarta” said Datuk’ Punch Gunalan, Deputy President of the Badminton World Federation. Source: Sport Business, Sports e-Media, 27th April 2007


INFO BOX

Outlook on A-P Broadband Pay-TV Operators & Broadcasters
Source: Report by MP Asia “Asia-Pacific Pay-TV and Broadband Markets 2007” on Content Asia, 30th April 2007

* Producers of Chinese, Indian and Korean content will lead in Asia as the region heads towards an US$102 billion pay-TV and broadband future by 2015.
* Estimated pay-TV revenue of US$9.2 billion in 2007 could grow to US$18 billion by 2011 and top US$24 billion by 2015.
* Channel subscription could climb at a CAGR (compound annual growth rate) of 13% to reach US$11.5 billion.
* Advertising revenue is expected to grow 10% to reach US$12.6 billion and pay-TV and broadband industries could be worth US$102 billion by 2015.
* Regional pay-TV industry turnover is expected to grow at a CAGR of 11%, topping US$43 billion by 2012 and US$54 billion by 2015.
* Regional pay-TV penetration will top 50% after 2011 and 55% by 2015, with almost half of pay-TV homes having a digital set-top box by 2015.
* Total pay-TV subs reached 255 million in Asia last year and is expected to climb to 381 million by 2011 and 446 million by 2015.
* Regional broadband household penetration will scale up to more than 30% by 2015.
* Total broadband subs in Asia could grow from 108 million in 2006 to reach 216 million by 2011 and 287 million by 2015.
* Broadband household penetration, at an average 13% in 2006, could grow to 24% by 2012 and 31% by 2015.
* Broadband household penetration levels in Korea, Singapore, Japan, Taiwan, Hong Kong and Australia will peak at 80%-90%, on average
* Broadband household penetration in China will continue to climb, approaching 40% by 2015.
* Malaysia will lead the ASEAN region with almost 50% broadband household penetration by 2015.
* Penetration levels in India will remain modest at 11% by 2015.
* In 2006, Asia’s pay-TV and broadband industries generated turnover in excess of US$44 billion, which represented 0.4% of real GDP.


SPORTS SHORTS

* Japanese government terrestrial channel NHK has agreed a three-year deal to cover the Wimbledon Tennis Championships. This year, Wimbledon will be the only Grand Slam tournament to be shown on terrestrial TV in Japan. “It's something we're very pleased about,” said Ian Ritchie, chief executive of the All England Lawn Tennis Club at a press conference to announce the deal. Source: Sports Media, 27th April 2007

* Singapore’s MediaCorp will offer advertisers a chance for greater creativity in ad campaigns and more precise reach to clients with a series of online and mobile initiatives this year. One such initiative is an online marketplace for Singaporeans to trade their wares, which could be launched as soon as two months' time. This will fulfill the growing demand of a highly affluent online community on a local wide web. Integrating traditional and new media ideas will be a phase of MediaCorp's businesses and platforms to engage new frontiers. Source: Asia Pacific Broadcast Union, 27th April 2007

* Digital TV broadcasting services will fully replace analogue in Korea by 2012. Minister of Information and Communication Roh Jun-hyong and Korean Broadcasting Commission Chairman Cho Chang-hyun have put together a bill that would require full digitisation. The bill requires broadcasters to halt their analogue TV signals by December 31, 2012. The law would also require all new TV-related home appliances to incorporate digital tuners, or equipment for digital reception. Source: Advanced Television, 27th April 2007

* A six-year, €1.6-million ($2.2-million) television rights deal agreed between Danish Premier League soccer and commercial broadcaster TV2 late last year is under threat of an investigation by the competition authorities. It is believed that authorities will decide that the deal is anti-competitive and that a new auction is set to be held, with rights split into several packages and a new deal restricted to three years. Source: Sportcal, 27th April 2007

* The Big 12 has signed an 8-year media rights extension with ESPN that will result in an expanded package of events. The deal is believed to be worth about $480 million — an increase over the conference's existing deal. The deal includes up to 19 telecasts for football games every season on ABC, including the Big 12 football championship. An increase of at least two men's basketball games per week beginning with the 2008-09 season. It will also see an increase in up to 50 non-football conference events on ESPNU. Source: San Antonio News, Texas Star Telegram, 26th April 2007

* ESPN has been linked with a possible bid for Irish sports media group, Setanta Sports. Setanta declined comment on the speculation. ESPN was interested, just over a year ago, in making an investment in the company, including the purchase of an equity stake or a full bid, but its shareholders were not receptive. Since then, Setanta sold off its North American Sports Channel to ESPN in a deal valued at €80 million. Setanta has raised about €400 million in the last two years and is fully funded. Source: The Sunday Business Post, 29th April 2007

* From April 24th to May 1st, surfers will ride waves at the Highland Open in Scotland, recognized as the coldest event on the ASP World Qualifying Series. It is newly upgraded to a 6-star WQS event and the second edition of this contest has also been classified as one of 7 world prime locations on the WQS tour. 6 digital beta cams plus two 16 mm cameras will film this event. On May 2nd, an exclusive satellite news feed of 3-mins with news and footage will be produced. A 30-min rough-cut and a 24-min highlight will also be produced. Source: Sports e-Media, 27th April 2007

* FC Barcelona is developing an Arabic language version of its website. The Primera División giant was in Egypt this week to celebrate the centenary of African champion Al-Ahly's foundation and 75,000 fans turned out at the Cairo International Stadium for a friendly match, ending in a 4-0 win for Barcelona. The club is keen to tap the fan base in Africa and the Middle East and signed with sports marketer, Stryx, and the largest Internet portal in the Middle East, ‘Link dot Net’, to develop the Arabic version of FCBarcelona.cat’s website. Source: Sports Media, 27th April 2007

* Weather conditions have left broadcasters divided on their level of coverage of the America’s Cup across Europe. Frustrated German broadcasters ZDF and ARD have reduced their programming of the world’s top sailing race in Valencia, Spain after only seven races out of a possible 20 were available for viewers due to a lack of wind over the first 10 days of competition. ARD has reduced its coverage from 100 minutes to just 15, while ZDF said: “We had 90% no-sailing so why should we torture our viewers?” Source: Sports Media, 27th April 2007

* Jurgen Klinsmann has a new job as commentator for German pay-TV channel Arena. The company confirmed that Klinsmann will take up the role at the start of next season. The former Inter Milan and Bayern München striker has signed a two-year contract with the option to break it to take over a position as a club manager. Klinsmann will fly to Germany from his Californian home to commentate on 1.Bundesliga matches as well as filming his own weekly programme to be screened ahead of weekend fixtures. Source: Sports Media Daily, 27th April 2007


MORE NEWS

Malaysia/Broadcaster: New IPTV Platform Unveiled

Malaysia’s SyQic Capital started showcasing its new IPTV platform, Yoonic, in April. It’s still not clear what content the new platform will carry, although execs were quick to underline their “complement and not compete” line. The chief executive behind the new system is Jamal Hassim, who was involved in the now defunct SPH Mediaworks in Singapore as well as early efforts to launch Malaysia’s channel 9, now operated by Media Prima.

The content channels, services and business model would be announced in June, followed by the launch of Yoonic services in Malaysia, Indonesia and Vietnam. The second stage is to venture into China and India. SyQic Capital developed the Yoonic video streaming platform based on peer-to-peer technology in-house. The company said this would “overcome the last-mile delivery issues in narrow bandwidth environment and provide true TV-quality video delivery and an interactive experience for the first time in this region.” Source: Content Asia, 30th April 2007

Malaysia/General: Leading a Plan for US-Southeast Asia Fiber Link

17 telecommunications companies signed a pact to build a $500 million undersea fiber optic cable between Southeast Asia and the US they claim will be safe from earthquakes and tsunamis. Telekom Malaysia, which is leading the consortium of companies, said construction of the 20,000-kilometer link would begin immediately. It said it would be the first submarine cable system linking Southeast Asia directly to the US.

The fiber optic cable will connect the US with Malaysia, Singapore, Thailand, Brunei, Hong Kong, the Philippines, Guam and Hawaii, and offer "seamless interconnection" for those locations with Europe, Africa and Australia. Parties involved in the project include AT&T , the British Telecom Global Network Services, Eastern Communications Philippines, Bharti AirTel, CAT Telekom, Indonesia's Indosat and PT Telkom, Telecom New Zealand International, Singapore's StarHub and Australia's Telstra. Source: Telecom Asia, Digital Media Asia, 30th April 2007

Elsewhere/Rights: German Broadcasters Near Euro 2008 Deal with Improved Bid

German public-service broadcasters, ARD and ZDF, are hoping that an increased bid of €115 million ($157.1 million) for 27 of the 31 games at soccer's Euro 2008 will finally seal a deal in Europe's largest television market. SportA, the sports rights subsidiary of ARD and ZDF, lodged the bid after failing in an offer of €60 million for 20 matches which would have cleared the way for commercial network, RTL, to acquire rights for remaining matches.

However, Sportfive is said to be seeking a further €10 million before agreeeing a deal. SportA is aiming to break a long-running deadlock, with Sportfive said to target between €130 and €150 million from the German market for the rights. Fritz Raff, ARD’s director, said in February that the broadcasters 'saw no reason to improve on' an earlier offer worth an estimated €80 million.'

A €115-million contract for 27 matches of Euro 2008 would be equivalent to €4.25 million a match, exceeding the €3.75 million a game that ARD and ZDF paid to show 48 out of the 64 matches at the 2006 World Cup, which took place in Germany. SportA’s offer would also be nearly double the rights fee of €60 million paid for all matches of the European Championships in Portugal in 2004.

In the European tender issued to Sportfive, Uefa specified that 19 of the 31 games must be shown on free-to-air television, including the matches of the national team in each territory, and all games from the quarter finals onwards. The lack of exclusivity on offer for pay-television operators has dampened the bidding war that Sportfive had hoped for in order to reach its target of up to €150 million.

Similar deadlocks have so far prevented deals from being agreed in three of the four other major European markets: France, Spain and the UK, although TF1 and M6, the French commercial broadcasters, were said to be close to being confirmed as the winners of the rights in France. RAI, the Italian public-service broadcaster, has acquired the rights in Italy. Source: Sportcal, 27th April 2007

Elsewhere/Rights: BSkyB in New Raid on BBC Soccer Rights

British Sky Broadcasting has been awarded rights to show Northern Ireland’s home soccer matches from next year. The deal covers qualifying matches for both the 2010 World Cup and the 2012 European Championships. BSkyB beat off competition from incumbent BBC, the UK’s public-service broadcaster, to acquire the rights in a four-year deal said by the BBC to be worth over £10 million ($20 million). The figure compares with the present deal with the BBC which is worth just £2 million.

Northern Ireland are presently top of their qualifying group for the 2008 European Championships. Under the deal, BSkyB has also committed to show live coverage of two of Northern Ireland’s under-21 international matches and five matches from its top-tier Carnegie League each season. The deal begins in August 2008 and runs until the end of the 2011-12 season. Jim Boyce, president of the Irish Football Association, denied that the switch to pay-television was motivated purely by financial considerations. Source: Sportcal, Sky Sports, 27th April 2007

Elsewhere/New Media: IIHF World Championship Available Live and On Demand

With the 2007 IIHF World Championship in Moscow on April 27th, Infront Sports & Media launches its new in-house live IP broadcast platform. Infront will produce a dedicated online broadcast for the 2007 IIHF World Championship, offering the opportunity to view live and on demand every game of the Championship on the official event website – http://www.ihwc.net/. The website is jointly managed by the IIHF and Infront.

This is the first time in the event history that such a wide ranging online service is available for fans, with a flexible set of viewing options. The online service allows fans to purchase single live games and download or access the high-quality video stream of the games after the live event has ended. The “Follow Your Team” option enables users to follow games of their favourite team through the tournament live and on demand.

Broadband consumers worldwide will be able to watch all games live and delayed for €40. Access is geo-blocked in a few countries where conflicting media license agreements are in place.

Infront’s in-house IP broadcast platform is set-up to complement the Group’s service offering and to effectively exploit media rights to a wider and more discerning audience. The production facilities are located in Milan, Italy and managed by MP Web – the new media company of Infront’s wholly-owned subsidiary Media Partners. In June 2007, MP Web will be re-launched formally as Infront Advanced Media Solutions and function as the Group’s dedicated competence centre for the management and distribution of new media sports rights. Source: Sports e-Media, Sportcal, 27th April 2007

Elsewhere/General: PSA Hail New Super Series Finals Deal

Fears for the future of the PSA's Super Series Squash Finals have been allayed as the Professional Squash Association agreed a seven-year deal which will see the annual event re-launched later this year. A five year agreement, with a two-year option, will provide a total minimum cash prize fund of US$675,000 over the period committed to the top eight players who annually qualify from the PSA Super Series roster of events throughout the season.

The Super Series Finals bring together top eight qualifiers from the annual PSA Super Series Tour to compete in a week-long event. The tournament boasts one of the richest prize funds in the sport and TV highlights are distributed to a large global audience. First staged in Switzerland in 1992, the event moved to the unique location of Broadgate Arena in the heart of London's Square Mile in 1999. Source: Sport Business, 27th April 2007