Tuesday, 29th May 2007

SPORTS SHORTS

* The Bangladesh government has given permission to operate 26 free-to-air and 10 pay channels through down linking in the country. Newly included free-to-air channels include: Real Madrid TV, Arirang, DD Sports and Al-Jazira Sports. The pay channels include: Ten Sports and AXN. The decision was subjected to license approval under provisions of Cable Television Network Management Act - 2006. The decision was taken at a meeting held in the ministry of information with additional secretary Syed Hasinur Rahman in the chair. Source: The New Nation Bangladesh, 27th May 2007

* Ten Sports has signed and implemented a new multiyear deal with Intelsat, and in so doing has increased its transponder capacity by 50%. The new contract replaces a previous one in place since 2001. The sports channel now beams channels from 27 MHz on the same satellite. Chris McDonald, CEO of Taj TV/Ten Sports, stated, 'I am very pleased to move our portfolio of channels on to the expanded transponder capacity, giving us the ability to launch additional channels across our markets from Australia over to the UK.' Source: AME Info, 28th May 2007

* Southeast Asian information ministers have endorsed Digital Video Broadcasting-Terrestrial as the uniform standard for the region, a move expected to make digital broadcasting technology affordable in Southeast Asia. Brunei had been pushing for adoption of a common digital broadcasting standard. Under the content-sharing project, more than 600 television programmes were exchanged among Asean members last year. Some had received recognition from the Asia-Pacific Broadcasting Union's annual TV awards. Source: Asia Pacific Broadcasting Union Official, 25th May 2007

* Nokia expects to start selling phones for China's 3G mobile TD-SCDMA technology in early 2008, when the network operational. Beijing earlier extended pre-commercial testing of its TD-SCDMA standard to 10 cities from the original five. With a potential $10 billion of network equipment orders in the balance, global players such as Nokia Siemens Networks, Motorola, Ericsson and Nortel Networks have jumped onto TD-SCDMA. The industry is still awaiting official launch of 3G licenses in China, which could be pushed back until 2008. Source: Telecom Asia, 29th May 2007

* Nokia launched a service enabling Chinese users to download English lessons using their mobile phones, in an effort to tap into a growing fascination with English in the world's top wireless market. Nokia plans to charge users for the new, made-for-China service, called Mobiledu. The service includes both audio and text-based lessons, aimed to capitalize on China's enormous language-learning market as the Chinese embrace global business and prepare for an influx of foreign visitors during next year's Olympic games in Beijing. Source: Wall Street Journal, 28th May 2007

* Derby County won promotion to the Premier League for the first time since 2002 yesterday after beating West Bromwich Albion 1-0 in a second division Playoff Final at Wembley Stadium. The match, worth an estimated £60mil (US$119mil) to the winners in terms of increased TV revenue, gate receipts and sponsorships, is regarded as the single richest one-off match in world soccer. It was a highly competitive match from start to end. The only goal came from Stephen Pearson who turned the ball in from close range after 61 minutes. Source: The Star Malaysia, 29th May 2007

* Mastercard's World Cup sponsorship has been brought into question after a US court ruling. Last year, a US District Judge ruled that Mastercard and not Visa should win an eight-year contract to sponsor the World Cup. An appeals court has ruled that the lower court Judge needs to revisit the case to clarify a some points, including whether a 2006 contract between Fifa and Mastercard superseded one from 2002. Mastercard said it was looking forward to the judge's ruling, while Visa said it was following the case with interest. Source: BBC News, Reuters, 27th May 2007


MORE NEWS

Taiwan/Broadcaster: TBS to Launch HDTV in 2008

Taiwan Broadcasting System (TBS), a non-profit consortium of terrestrial TV broadcasters set up to provide TV and radio programmes of public interest in Taiwan, has announced the commencement of a two-year project to promote high definition TV (HDTV). Broadcasts are to begin for some selected areas via Channel 30 in the second half of 2008. The project is sponsored by the Taiwanese government in line with its policy of completing the digitalisation of terrestrial TV broadcasts in 2010.

TBS, under the project, will be establishing HDTV networks around Taiwan and digital databases and commissioning new programmes, as well as conducting mobile TV and radio broadcast data system (RBDS) experiments. TBS expects an estimated 300,000 users will possess HDTV sets one year after the beginning of the broadcast, reports Digitimes. Source: Asia Pacific Broadcasting Union Official, 24th May 2007

India/Broadcaster: Nimbus Bats on a Sticky Wicket

Time is running out for Nimbus. With a host of payouts scheduled in the immediate term, the next month poses a challenging time for the Board of Control for Cricket in India (BCCI) rights holder. The company has to pay up a bank guarantee of Rs 519 crore to the BCCI by June 30. The company also has to dish out close to $10 million for the recently concluded India-Bangladesh series and $8 million for the upcoming Afro-Asia series.

Nimbus is believed to be aggressively talking to a number of banks to raise close to Rs 500 crore. However, the going is not easy, with most bankers taking their time to scrutinise Nimbus’ broadcasting arm Neo Sports’ business model before giving any final commitment.

Meanwhile, sources reveal that Nimbus is in talks with BCCI to reduce the rights acquisition amount from $612 million, in lieu of the losses incurred by the company due to the encryption row. An official with a public sector bank said, “Nimbus is trying to reduce its obligation towards BCCI, which will effectively reduce the bank guarantee amount. Once the amount is reduced, Nimbus will not find it very tough in fulfilling BCCI’s requirements.”

Bankers who had previously furnished bank guarantees, were taking a hard look at the sport’s company’s business model, and seemed reluctant in being guarantors. Bankers feel that the revenue model of Nimbus needs to be re-examined and that the collaterals provided are not as strong as last year. Bankers also say that the guarantees provided last year were given to Nimbus, where as this year it will be given to Neo Sports, which is viewed as a high-risk proposition, considering the volatility of the sports business.

But Nimbus sources reveal that BCCI would waive over Rs 300 crore, as compensation for the tenure of the contract until 2010. However, it is not likely that BCCI’s waiver would exceed Rs 150 to 200 crore. Nimbus sources say that the contract had a clause which says any change in material circumstances due to the order of the government or any other regulatory body that impacts Nimbus’ revenue, “BCCI would provide Nimbus reasonable and appropriate substantial reduction in compensation and other support”. Source: The Economic Times India, 29th May 2007

China/Business: FedEx Delivers Badminton into Offices

Federal Express has launched a through-the-line brand campaign titled "The China Badminton Team vs The Inefficient Office" starting today, targeting receptionists, clerks and secretaries. The campaign, which runs for 18 months, aims to create top-of-mind awareness with FedEx's target audience which include CEOs, CFOs and managers who make decisions on which courier to use.

BBDO China has been tasked to develop the creative for FedEx and as major sponsor of the China Badminton Team, the courier company wanted to feature the players and the head coach in the advertising. "Therein lies the challenge: how can this still make sense in our ads? Our solution- have the China Badminton Team provide the answer to office problems, almost as if they're management consultants, in the best way they know how- with a smash of the badminton racket," Keat Soh, creative director of BBDO China said.

The agency came up with the creative featuring the China badminton team but with the action taking place inside an office rather than the badminton court. The campaign will run in TVCs, print and OOH, as well as interactive advertising in key cities throughout the country. OMD Shanghai handled the media buying and planning duties. Source: Marketing Hong Kong, 28th May 2007