Thursday, 26th April 2007

HEADLINE OF THE DAY

Prize Money Hike Makes Wimbledon Tennis' Most Lucrative Event

The All England Club has announced a record prize purse of £11.3 million ($22.5 million) for 2007, making it the most lucrative tennis event in the world. Following the decision to award men and women equal prize money at Wimbledon for the first time, the singles champions will receive £700,000 each. Total prize money has risen 8.7% on 2006 and now exceeds the $21.1 million, including bonuses, that was on offer for the US Open.

However, it is anticipated that the United States Tennis Association, which runs the US Open, will raise its purse in 2007 to regain its self-proclaimed title as the provider of the ‘highest annual purse in sports.’ Wimbledon is scheduled for June 25 to July 8 this year and the US Open is scheduled for August 27 to September 9. Source: Sportcal, Houston Chronicle, The Star Malaysia, The Herald Sun Australia, 25th April 2007


INFO BOX

Info Box – Bits & Bobs on Golf
Source: Sporting Insight, April/May 2007

* 68% of regular golfers wear a glove to play golf.
* Golfers in the UK purchase an average of 25 golf balls at a time when buying over the Internet, almost 3 times as many as they buy at any one time in a golf pro-shop.
* Scotland has 9,750 people for every golf course, while Wales has 18,300 and England has 27,700.
* The 45 events on the European Tour so far this year (up until March) have been played in 24 different countries, with winners from 17 different countries.
* Winners of a European Tour stroke play event in 2006 have earned an average of €1,523 per shot played in the tournament that they won.
* Coverage of the 2006 Ryder Cup on Sky Sports attracted over 3.6 million individual viewers for at least 15 minutes over the 4 days of competition.


SPORTS SHORTS

* Comperio Research, the market research arm of IMG Media, will open in Hong Kong which will be the hub for its Asia Pacific operations. Comperio has offices in Europe, North America and India, and this move signals the company’s decision to capitalise on growing demand for its services in the Far East. The new office will deliver a full-service quantitative and qualitative offering and will be headed by James Dick, who for the past four years has been Head of New Business Development at its headquarters in London. Source: Sport Business, 25th April 2007

* Telewizja Polsat, the Polish broadcaster that transmits on terrestrial and satellite, shared broadcast rights to the 2006 Fifa World Cup with public-service broadcaster, TVP, paying €5 million ($6.8 million) for the pay-television rights for all 64 games. It also acquired free-to-air rights a selection of matches, excluding those of the Polish team, the opening game and the final. Source: Sportcal, 25th April 2007

* NBA’s Portland Trail Blazers could be getting a new home on cable television. The team's deal with Fox Sports Net expired the end of the season, and FSN has stopped renewal talks, saying the NBA franchise's financial demands were unrealistic. Sports Business Daily reported that the Trail Blazers sought $12 to $13 million a year. Like their win totals, the Trail Blazers' television ratings have dropped in recent years. Viewership last season was less than half what it was during 2002-2003 — the last time the Trail Blazers finished above .500. Source: Oregon Live, Cable 360, 25th April 2007

* The International Olympic Committee has outlined plans for the creation of a Youth Olympics, which would involve participants between the ages of 14 and 18, with the first edition likely to take place in the summer of 2010. The announcement at today’s IOC executive board meeting confirmed earlier statements by Jacques Rogge, the IOC's president. The IOC announced last month that it was conducting a feasibility study into the project, and the board has now unanimously voted in favour of the Youth Olympics. Source: Sportcal, 25th April 2007

* A leading financial expert has compared the way rich businessmen are trying to secure stakes in Premiership clubs to “the gold rush”. There is a marked change in the game, according to Henk Potts, equity strategist at Barclays Wealth, but he insists the financial gap between the leagues will grow ever wider. He said: “While there is talk in the Premiership about what's in store and the money that can be generated, it is strictly limited to the top clubs. It means the gulf between the top flight and the others is likely to get bigger.” Source: Football Insider, 25th April 2007

* European trans-stadia TV network MDM.TV will run an interactive Man of the Match fan competition in partnership with Man of the Match Ltd, to go live on May 5. The interactive content will allow fans across MDM.TV’s EPL football grounds to text or go online to vote for their Man of the Match. Fans who vote for the winning player will enter a prize draw to win their season ticket for 2007-08. Source: Sports Media, 25th April 2007


MORE NEWS

Thailand/Broadcaster: Advert-free Future for Former iTV

The fate of Thailand Independent Television (TITV) was sealed yesterday when the government decided to turn the financially struggling operation into a commercial-free public station. The decision could lead to the departure of staff considered unnecessary for commercial-free television. TITV, formerly Independent Television (iTV), was once controlled by ousted prime minister Thaksin Shinawatra. It has been placed under the control of the Prime Minister's Office after it failed to pay concession fees and fines.

PM's Office Minister Dhipavadee Meksawan, who supervised the committee, said the cabinet agreed to turn TITV into an advertisement-free public station based on the results of a committee survey. Khunying Dhipavadee said professionals will be recruited to run the station instead of letting state officials control it. She said the station will be supervised by five panels with members selected from the public sector.

The PM's Office and the Council of State no has to draft a law clearing the way for establishment of the a public television station. The draft will be completed by May 11, and will be forwarded to the National Legislative Assembly (NLA) for consideration. Khunying Dhipavadee said that in the first stage about 1.7 billion baht will be needed to run the station. Source: Asia Media, 25th April 2007

Elsewhere/Rights: Austrian Bundesliga Pay-TV Rights Find Familiar Home

German cable and satellite broadcaster, Premiere, will continue live coverage of Austrian top-tier T-Mobile Bundesliga after signing a three-year extension of its pay-television rights deal until 2010. Premiere announced that a deal had been agreed with the Austrian league for the exclusive Austrian and German pay-television rights for the league, allowing Premiere to show all 378 games during each season. Premiere was said to be the only interested party in the rights.

Free-to-air rights, consisting of highlights and one live match each Sunday, for the next three seasons were acquired by ORF, the Austrian public-service broadcaster. The deal was agreed after league officials decided to split their rights into packages in a bid to avoid the controversy caused by Premiere’s exclusive acquisition of all rights for the present contract period (2004-05 to 2006-07).

Premiere has no free-to-air channel of its own and paid €42 million ($57.3 million) for both the free-to-air and pay-television rights until the end of this season, and then sold terrestrial rights for a three-year period to Austrian commercial broadcaster, ATV, for around €2.7 million. However, late last year Premiere agreed a separate deal for free-to-air rights with ORF for the remainder of the 2006-07 season, after running out of patience with ATV still owing €2.2 million of its rights fee. Source: Sportcal, Rapid TV News, 25th April 2007

Elsewhere/Rights: French Euro 2008 TV Rights Award Close to Completion

French commercial broadcasters, TF1 and M6, are set to win French television rights for Euro 2008, soccer’s European Championships. An announcement is due at the end of May or beginning of June, with TF1 and M6 set to share the rights for the tournament. The expected award comes after a long stand-off over the price for the rights. Similar deadlocks have also prevented deals from being agreed in the UK, Germany and Spain. RAI, the Italian public-service broadcaster, has acquired the rights in Italy.

In December, TF1 and M6 agreed to split the rights in France after a second round of bidding failed to produce an outright winner. TF1 and M6 were the only two broadcasters to respond to the original tender but submitted offers deemed significantly lower than the fee required by Sportfive, which is marketing the European broadcast rights on behalf of governing body Uefa. Sportfive had targeted a fee of €100 million ($136.5 million) for the rights in France.

Under the agreement, TF1 and M6 will pay €50 million each, and will have the rights to show simultaneous coverage of France's matches in the tournament. Rights for the 2004 European Championships were shared in France between TF1 and public-service broadcaster, France Télévisions. Source: Sportcal, 25th April 2007

Elsewhere/General: Hawk-Eye to Get Wimbledon Debut

Hawk-Eye will be used at Wimbledon for the first time this year. The technology is already in place at the US and Australian Opens and relies on cameras mounted around Centre Court and Court One that will capture 3D images of any disputed line call. Large screens positioned are viewable everyone on the courts and will show exactly where the ball lands. The introduction of Hawk-Eye at the US and Australian Opens has been a success but Wimbledon will be the first major grass tennis tournament to employ the system.

However, All England Club chief executive Ian Ritchie believes grass requires a different process for consulting the technology compared to other surfaces. At the US and Australian Opens, players are allowed two unsuccessful challenges during a set and one more in a tie-break. Ritchie said: “We're considering the possibility of an extension but there's a balance to strike with the continuity that was evident in the US and Australian Opens. Different situations can arise on grass courts where the service is especially important.”

Hawk-Eye, which is subject to final testing next month, will only be used on Centre Court and Court One while the existing Cyclops technology will be moved to Courts Two, 14 and 18. Source: Sports Media, ZD Net, Brisbane Times, 25th April 2007


ARTICLES, COMMENTS & OPINIONS

WWE’s Vince McMahon: Putting a Headlock on PPV Success
George Vernadakis interviews Vince McMahon, transcript on Multi Channel News, 23rd April 2007

World Wrestling Entertainment chairman Vince McMahon has a lot to grapple with these days - not that that's a bad thing. WWE's April 1 WrestleMania 23 clocked over $5.38 million in ticket sales, making it the WWE's highest grossing one-day event ever. And its three branded TV shows ' USA Network's Monday Night Raw , The CW's Friday Night SmackDown and Sci Fi Channel's ECW: Extreme Championship Wrestling ' continue top ratings performances.

Even as WWE branches out across platforms ' including a recent deal with AT&T Mobile ' pay-per-view continues to be a key ingredient in its formula for success. Multichannel News executive editor of presentation George Vernadakis asked McMahon about WWE's recent wins, future plans and PPV's role in its business model. An edited transcript follows:


MCN: How would you size up WrestleMania 23 , in terms of its importance to the WWE brand as well as its performance as a pay-per-view event?
Vince McMahon : WrestleMania 23 was a fantastic event, and did exactly what we hoped it would do: entertain our fans, make money and create a buzz around WWE. This was one of our best attended events, second only in attendance for an indoor event to 20 years ago at WrestleMania III .

It's too early for us to know what the buy rate is for WrestleMania 23 , but the early returns are promising. We've achieved an average of 1 million buys for each of our last three WrestleManias , and I'm certain that we will surpass the 1 million buy mark. WrestleMania is a $100 million brand when you take into account sales of merchandise and licensed products in addition to the revenue from pay-per-view and ticket sales. When you compare the revenue from WrestleMania to a successful theatrical film release, we'll make in four hours what a theatrical film might make in its opening three days.

MCN: For this year's WrestleMania , you put a lot on the line, including your hair. [In case anyone missed it: In a "Battle of the Billionaires," McMahon and Donald Trump had a bet riding on the outcome of the match between Bobby Lashley (Trump's in-ring representative) and Umaga, the Samoan Bulldozer (McMahon's pick). McMahon/Umaga lost and McMahon had his head shaved as a result.] Any parting words for Donald Trump or comments on this "mane event"?
VM: I may be bald but I'm beautiful, which is more than I can say for Donald. Seriously, working with Donald was great. We took two of the best known brands in the world, WWE and Trump, and combined them in an interesting, entertaining way, elevating both brands as a result. People ask me if going bald was worth it, and it definitely was.

MCN: How has the pay-per-view business changed since your early events? And how has the WWE had to change strategy and marketing techniques?
VM: One of our first events with pay-per-view was our first WrestleMania broadcast from Madison Square Garden. Pay-per-view was in its infancy and closed circuit television was the prevalent technology. It was challenging having to work with each individual arena for closed circuit.

Over the years, with the emergence of cable and the evolution of technology, coupled with the tremendous promotional support of our affiliates, it has become easier to promote pay-per-view events.

However, the competition for the entertainment dollar is fiercer than ever. There is greater competition for the public's attention from television, the Internet, video on demand, DVDs, video games and mobile platforms. We have had to become more innovative in how we market and present our events, using all the media platforms and marketing techniques available to us to generate awareness and interest in our pay-per-views.

MCN: What about PPV's place in the overall WWE business? How has it evolved, particularly as you have expanded to more platforms, such as cable, broadband, subscription video on demand and mobile?
VM: Pay-per-view remains a significant part of WWE's business portfolio. We see tremendous future growth for WWE content on VOD, broadband and mobile platforms. There remains a strong appetite for more WWE content on cable, as we demonstrated with the successful introduction of ECW on the Sci Fi Channel and the success of WWE 24/7 On Demand.

MCN: Discuss the strategic balance between pay-per-view and free TV. How do free TV events drive PPV business?
VM: There is a demonstrated relationship between our television ratings and the number of buys we receive for a pay-per-view event. The Web and mobile phones also will become more important to how we drive people to watch our pay-per-views as those platforms evolve.

MCN: Why have you decided to showcase all three brands ' Monday Night Raw , Friday Night SmackDown and ECW: Extreme Championship Wrestling ' in future PPV events starting with Backlash on April 29?
VM: We have seen over the past two years that WWE pay-per-views have had significantly better buy rates when more than one WWE brand is involved. In the future, all three brands will be contributing and promoting to the very same PPV event.

MCN: What's next on WWE's PPV agenda?
VM: In late June, we start our "Biggest Party of the Summer" campaign which culminates with another classic pay-per-view in August, SummerSlam .

MCN: And you've announced that next year's Wrestlemania 24 will be in Orlando, Fla.
VM: This will be our first WrestleMania in Florida. The city of Orlando did a great job presenting its vision for WrestleMania and will be a tremendous partner. We'll be in a 60,000 seat outdoor stadium at the Citrus Bowl and that will be a very different experience for our audience than what they are accustomed to. Coming to the home of Disney and Universal theme parks offers all kinds of possibilities to draw an even larger global audience to WrestleMania . It is going to be something very special. WrestleMania 23 is a tough act to follow, but we are always up for a challenge.