Thursday, 31st May 2007

HEADLINES OF THE DAY

TV Troubles Could Impact on Indian Cricket Schedule

Several international cricket matches have been thrown into doubt because of the collapse of two broadcasting deals with Indian companies. Zee Sports says that it has pulled out of its five-year deal with the Board of Control for Cricket in India to show national team matches at neutral venues after failing to negotiate a discount on rights payment. Zee had agreed to pay $219 million to show at least 25 international matches involving India but the BCCI’s failure to confirm a schedule and legislation forcing it to share coverage with state broadcaster Doordarshan prompted a rethink.

The second Afro-Asian Cup, a series of one-day matches between representative sides from Africa and Asia in India, has also been hit by the withdrawal of a commercial partner in Nimbus Communications, the sports marketing and media company, and could now be postponed. The BCCI has shown a willingness to negotiate a reduced deal with Nimbus over the rights to India’s home one-day internationals and test matches, after Doordarshan was granted shared coverage, but is said not to have extended the same courtesy to Zee.

India are due to face South Africa in one-day internationals in Belfast on June 24, 26 and 29 and Pakistan in the Friendship Cup in Glasgow on July 3, but it is unlikely that the matches will go ahead unless a replacement broadcaster is found for Zee. Ashish Kaul, senior vice president of Zee Group, told PTI that ‘the attitude of the BCCI’ was responsible for the collapse of the deal, accusing the board of ‘double standards.’

However, Zee may have hindered its own cause by announcing the launch of a domestic Twenty20 competition involving top Indian and overseas players without first consulting the board. If the deal is not resurrected then it will be the second time in recent years that Zee and BCCI have been forced to tear up a contract.

Nimbus, which shows cricket on its Neo Sports Channel, could now launch a bid for the games at neutral venues, although it faces possible competition from pan-Asian sports broadcasters ESS and Ten Sports. It has however had a change of heart over the upcoming Afro-Asian Cup, declining to pay the agreed rights fee to the organisers partly because it is disappointed at the absence of top players from the games. It is thought that ESS could now be relied upon to show the matches in Bangalore and Chennai between June 6 and 10.

ESS recently secured the global rights to 18 ICC competitions, including two World Cups, in the next eight years in a deal worth $1.1 billion, but there is uncertainty over whether the contract has actually been signed. Concerns prevail over regulatory changes and Asian broadcasters are reassessing the value of cricket rights after television audiences and advertising sales for the 2007 World Cup in the West Indies and India's subsequent tour of Bangladesh failed to match expectations. Source: Sportcal, Indian Television, Economic Times of India, Financial Express, The Business Standard, 30th May 2007

Related Excerpts: Zee-BCCI Dropped Contract

Source: Hindustan Times, 31st May 2007
It was Zee’s failure to make money off the Kuala Lumpur tri-series last year, and the BCCI’s insistence that it share feed with Doordarshan, that finally did it for the deal. “The BCCI introduced the must-carry clause, which was not there in the initial contract. This made it compulsory for broadcasters to share the live feed with Doordarshan, causing huge commercial losses for broadcasters,” said Ashish Kaul, senior VP (marketing) of Essel Group, which owns Zee.

“Our bid was high but was recoverable. What we now have is someone running all over the countryside for a willing host with no planning and no time to warn advertisers of events, huge losses... then the mandatory sharing — it’s bad business.” Broadcasters the world over are upset with the I&B Ministry’s Sports Broadcasting Bill that makes it mandatory to share feed of all India games with Doordarshan, not just the games in India but also those abroad.

According to Board officials, initially, this agreement covered only terrestrial rights, which was acceptable, but the DTH telecast has caused a huge problem. “The signal is freely available on DTH to anyone and that is causing large-scale piracy, in India and neighbouring countries, so obviously broadcasters are upset. Why would people pay to watch when they get it free?,” said a Board official. An edgy BCCI, fearing just this situation — broadcaster pullouts — has asked the Ministry to encrypt the signal and have even offered to make the one-time payment for the expense involved.

Source: PTI report on DNA Sport, 30th May 2007
The much-maligned Afro-Asia Cup cricket tournament received a major setback with Nimbus pulling the plug on the telecast of matches. "We will not be part of the event in anyway. We will not be telecasting the event. Neither will we be producing nor bringing sponsorship for the matches," Nimbus chief Harish Thawani said. Nimbus' decision comes less than a week from the tournament, scheduled from June 6 to 10 in Bangalore and Chennai. Thawani implied the motive was the pull out of several stars from the series that features three one-dayers and a Twenty-20 international besides a women's tie between the teams from the two continents.

Source: Indian Express, 31st May 2007
First, Zee exercised an exit clause in their contract to call off their existing five-year off-shore telecast deal worth $ 219m, and later in the evening Nimbus—the Board’s partners in India—washed its hands off the Afro-Asian Cup, scheduled to be played in Bangalore and Chennai in the coming week. While the Zee pullout puts the entire Ireland tour — three India-South Africa one-day internationals and one ODI with Ireland — in jeopardy, not to mention the much-hyped five-year international deal, Nimbus chief Harish Thawani confirmed to The Indian Express, that “Nimbus would not produce or telecast the event (Afro-Asian Cup) at any price and will also not bring in any sponsorship for the matches.”


DID YOU KNOW…?

The United States of America claimed an unwanted tennis record on Wednesday when, for the first time in almost 40 years, they failed to qualify a male tennis player into the French Open second round. Eight of their nine players were eliminated on Tuesday leaving Robby Ginepri to salvage the situation with his match against Argentina's Diego Hartfield. But Ginepri's lost and confirmed that for the first time since the start of the Open era in 1968, there would be no American men in the second round. The last time such a depressing scenario engulfed the Americans in any Grand Slam was at the Australian Open in 1973. Source: Channel News Asia, 31st May 2007


SPORTS SHORTS

* Newly launched Venezuelan broadcaster, Televisora Venezolana Social (Teves), has acquired broadcasting rights to the Copa America due to take place in the country this year. The broadcaster will air ‘the majority’ of the tournament’s 26 games. The government said the move ensures that the games are available on free-to-air television across the country. Another public broadcaster, Venezolana de Televisión, will also air selected matches, as will Venevisión, one of Venezuela’s largest commercial networks. Source: Sportcal, 30th May 2007

* LG Electronics has agreed a sponsorship deal for the Copa America in Venezuela. LG president Daniel Kim and Venezuela's sports minister Eduardo Alvarez signed the agreement yesterday. The firm sponsored the last Copa America held in Peru in 2004. Nine stadiums will be equipped with high-resolution technology and tournament press rooms will be equipped with LG televisions and LG will provide giant screens in several Venezuelan cites so fans can watch matches outdoors. Source: Sportcal, 30th May 2007

* For one night only WWE will return to NBC. WWE matches will be back on June 2 for a 90-minute show. Running from 11:30 to 1am, the match-up will feature various champions in what is billed as the "strangest and smallest going head-to-head in a match that can only be seen to be believed." The two companies have a long history. NBC bought a stake in WWE in 2000, and the two partnered on the ill-fated XFL. NBC Universal also owns WWE's cable home, USA Network. A couple of Saturday night NBC runs per year were part of the contract when WWE's RAW moved to USA. Source: Broadcasting & Cable, 29th May 2007

* Competition between IPTV and cable/satellite TV is heating up in Asia, with IPTV poised to gain significant market share over the next years, reports In-Stat. With the help of IPTV, incumbent telcos have the opportunity to fundamentally change customers’ video experience from traditional video streaming to downloading and watching TV. There were 2.7 million IPTV subscribers in Asia in 2006, and is expected to exceed 33 million by 2012. Source: Advanced Television, 30th May 2007

* The Trophy of Champions, French soccer’s pre-season game between the winners of the top-tier Ligue 1 and the French Cup, is confirmed to take place in China this year. The decision has been taken to stage the game in Tianjin because league champions Olympique Lyonnais and cup holders Sochaux are both holding training camps in Asia at the time. Source: Sportcal, 30th May 2007

* The 2nd Asian Indoor Games and the Olympic Council of Asia signed an agreement with China online media company SINA Corporation. Under the deal, SINA becomes the Official Sponsor and Internet Sponsor for Macau 2007 and has won the exclusive rights to host, develop and operate the Official Games website. The 2nd biennial Asian Indoor Games will be hosted in Macao, from 26 October to 3 November 2007, consisting of 17 sports with 2 demonstration sports, with expected NOC participation from 45 countries throughout Asia. Source: Sport Business, 30th May 2007

* UK pay-television operator, BSkyB, has extended its deal to show live home matches of the Welsh national soccer team until the end of the 2011-12 season. BSkyB has shown Wales’ matches since 2004 and is understood to have offered £13 million ($25.8 million) plus a bonus of £750,000 for every match against a major country to the Football Association of Wales to retain the rights from 2008 onwards. The competition came from BBC Wales, which submitted a bid of £10 million, similar to what BSkyB has paid under its current four-year deal. Source: Sportcal, EUFootball.biz, 30th May 2007

* The International Ice Hockey Federation has extended its commercial partnership with Infront Sports for the annual world championship to 2017. The current deal was not due to expire until 2011. Infront is responsible for the global distribution of marketing and media rights to the world championship and the host broadcaster of the event. The IIHF estimates the contract with the agency will help it to earn more than SFr200 million ($164 million) over ten years. The 2008 world championships will be held in Canada for the first time. Source: Sportcal, 30th May 2007

* Online gaming provider bwin is partnering Cellectivity, a UK mobile gaming and betting content provider, to distribute a version of PokerRoom.com: the first live multi-player mobile poker application of its kind, allowing mobile users to play poker against real online players. Cellectivity’s agreement with 3 and T-Mobile will position bwin at the forefront of the fast-growing mobile gaming market. The application features a play-for-fun version that gives players an opportunity to pit their skills against real online players. Source: Content Futures, 30th May 2007


MORE NEWS

Laos/Rights: NVCSports to Organise First International Cycle Race In Laos

NVCSports Ltd was appointed by the Government of Lao People's Democratic Republic to organise the country’s first ever international cycle race in Laos this November 2007. The Tour of Laos has the full support of the Lao Government, the Civic Authorities along the route and the Lao Cycling Federation. The race will comply with the rules and regulations of Union Cycliste Internationale and will be included on the Asian Calendar of UCI.

The race dates are planned so that the race ends just before the start of the South East Asia Games allowing teams from countries that are eligible for the Games, a last minute opportunity to improve their skills before the start of the Games. The competing teams are being invited from many countries in Asia, who will face tough competition from top teams from Europe, America, Africa, Oceania and Australasia.

The race route has yet to be finalised but it will embrace parts of the scenic Laos, as well as focusing on the ancient Royal City of Luang Prabang and the present capital city - Vientiane. It is anticipated that this race will generate much media interest worldwide as it will be the largest sporting event in Laos’ recent history and it will help prepare Laos, in hosting the South East Asian Games in 2009. NVCSports is working closely with Pulse8 Media to give the race maximum media coverage regionally and internationally.

Pulse8 Media aims to provide live coverage of Tour of Laos via ESPN Start Sports, distributed via 13 Asian regions and reaching 164 million households. Pulse8 Media also plans to produce two documentaries which focus around recent history and developments in Laos that will be distributed via National Geographic and Discovery, televised up to 170 countries and produced 35 languages worldwide. Source: Sport Business, 30th May 2007

Singapore/Broadcaster: SingTel to Focus on Boosting Content

SingTel says it will focus on boosting content for its upcoming internet protocol television or IPTV service. This follows feedback from users who took part in a six-month trial which ended in April. When launched later this year, IPTV users will be able to watch TV programmes and buy videos through their broadband connection, accessed via a set-top box connected to their TV sets. SingTel is still keeping mum about the exact launch date of its upcoming IPTV service as well as the content line-up and price plans.

But the telco took pains at a news briefing on Wednesday to differentiate its service from other existing pay TV offerings. It stressed that IPTV will be more than just watching TV on the computer, like MobTV, or transferring PC content to the TV set, like M2B World. But the battle for content will be fierce. And for SingTel, it is expected to be a big challenge as it has already been outbid by StarHub for rights to broadcast the hugely-popular English Premier League football matches for the next three years.

Analysts say the success of IPTV is critical for SingTel as the service allows the telco to take on StarHub head-on on all three services - TV, data and voice. StarHub has gained market share in recent years, through its "hubbing" strategy of packaging the three services. The Media Development Authority gave SingTel the go-ahead in January this year to launch its commercial pay TV service. Source: Tech One HDTV Blog, 30th May 2007

Elsewhere/Rights: 'Eleventh Hour' for ARD and ZDF Euro 2008 Negotiations

Time is running out for ARD and ZDF to agree a deal with Sportfive for rights of the Euro 2008 European Championships. With just over a year before Euro 2008 kicks off, the broadcasters have said that a deal needs to be signed urgently to allow them preparation time to book studios, hotels and cables in Austria and Switzerland. Sportfive was originally said to be targeting €160 million ($214.9 million) from the German market but combined bids from ARD and ZDF have yet to exceed the €100-million mark, despite months of negotiation.

ZDF was said to be prepared to increase the broadcasters’ combined maximum bid of €100 million for rights, but ARD adopted a strategy of patiently negotiating, believing that the asking fee will fall. A lack of exclusivity on offer to pay-television operators has dampened the bidding war that Sportfive had hoped for in order to reach its initial target for the German market. Source: Sportcal, 30th May 2007