News bullets about the fascinating and frenetic business of sports, particularly focused on broadcast, programming and rights in Asia
Friday, 2nd November 2007
SPORTS SHORTS
* Singaporean cable TV platform StarHub has launched HubStation FlexiWatch, a new prepaid service that allows non-cable TV customers to subscribe to a lineup of channels and pay only for the duration for which they wish to access those channels. Available as of today, customers can purchase the HubStation for S$560 and can choose from seven FlexiWatch channels including popular Chinese movies and drama channels such as Celestial Movies, STAR Chinese Movies and VV Drama. The charges range from S$3 to S$5 per channel per day, with a minimum of three days and a maximum of 30. Source: Worldscreen, 10th Oct 2007
* Mark Burnett International has entered into a 10-year partnership with Singapore’s Genting International to develop, produce and distribute reality television series and game shows in the Asia-Pacific region. The collaboration marks the first step in a long-term strategy for Mark Burnett International to expand in Asia. It is also the first entry into television production for Genting International. The deal sees the formation of Mark Burnett Productions Asia (MBPA), a 50-50 partnership with a joint investment of up to $20 million. The partnership covers all of Asia except Japan and the Middle East. MBPA will develop content for the region as well as license the format and completed rights to all platforms. Source: Worldscreen, 10th Oct 2007
* French commercial broadcaster TF1 is planning to step up its coverage of rugby union after pulling in large audiences for the recent Rugby World Cup. This could include the final of the Top 14, the top French league, and international matches in France. The rights to the final of the French championships are renegotiated every year. The rights to this season’s Top 14 have not been allocated after it was deemded that the €700,000 ($1 million) bid from public-service broadcaster France Televisions was too low. Last month, TF1 missed out on the rights for the Six Nations Championship, which have been retained by France Televisions until 2013. Source: Sportcal, 1st Nov 2007
* Eurosport Asia has announced it will be the exclusive broadcaster in Asia of the 26th African Cup of Nations (ACN) 2008. LIVE matches of the African football championship tournament, which takes place once every two years, will begin airing on 20 January 2008. The final match will be played on 10 February 2008 in Accra, Ghana’s capital. The ACN has become one of the world's major football championships. The event is a key platform for African countries, with established as well as upcoming football stars, to showcase their skills and talents. Source: Sports e-Media, Sportcal, 17th Oct 2007
* Vitali and Wladimir Klitschko, the Ukrainian heavyweight boxing brothers, are to handle their commercial rights themselves from now on after splitting from the international sports agency Sportfive. All areas of marketing, including the sales of personality rights and rights to their fights, will be handled by a new company, Klitschko Management Group. The pair had been represented by Sportfive for six years. Wladimir Klitschko is the current IBF and IBO world heavyweight champion, while his older brother, Vitali, the former WBC champion, is on the comeback trail after retiring due to injury in 2005. Source: Sportcal, 15th Oct 2007
* FITA, the international archery federation, is to begin charging broadcasters for airing its events from next year, believing that an increase in interest in archery in at least the top television territories for the sport worldwide will justify the move. The federation sees this as an opportunity to receive a rights fee that will cover the cost of producing coverage for the first time. Almost 84% of its revenues comes from the IOC over a four-year Olympic cycle, amounting to close to $8 million in the next cycle. It received total revenues of $4,168,000 in 2000-03, the most recent review conducted by the International Olympic Committee’s programme commission, of which just $805,000 was generated through commercial activities. Source: Sportcal, 17th Oct 2007
* Jacques Rogge, president of the IOC, has said that he is pursuing discussions with the US Olympic Committee over a possible cut in the high proportion of sponsorship and television money that USOC receives from the Olympic Games. A contract is already in place up to the 2012 games, he said, so talks are focusing on the revenue that will be generated from the 2014 and 2016 Olympic Games. The USOC will receive an estimated $300 million to $350 million from the 2008 Beijing Olympics, which is believed to almost equal the combined revenue of all other NOCs. The USOC’s share could increase to between $350 million and $400 million for the London Olympics in 2012, should the system not change. Source: Sportcal, 17th Oct 2007
* The FIVB has announced a provisional calendar for beach volleyball’s 2008 Swatch-FIVB World Tour. The season will start with men’s and women’s tournaments in Adelaide, Australia from March 25 to 29 and conclude with a similar event in Sanyo, China in early November. The six ‘Grand Slam’ events will be held in the European cities of Berlin, Paris, Stavanger, Moscow, Gstaad and Klagenfurt. Tomorrow sees the start of the women’s FIVB World Cup in Japan. Fuji Network Television is acting as the host broadcaster and 17 other broadcasters from around the world have agreed deals to provide live or delayed coverage. The FIVB says that live games will be watched in some 400 million households in more than 50 countries, representing a potential audience of 1 billion viewers. Source: Sportcal, 1st Nov 2007
MORE NEWS
WWE: Revenues Up 16%
World Wrestling Entertainment has announced third-quarter revenues of $108.1 million, a gain of 16 percent, however profit fell from $9.2 million to $8.5 million. Revenues from live and televised entertainment were up 5% to $68.8 million. WWE hosted 78 events—including 15 outside of the U.S.—throughout the quarter, which brought in $20.1 million in revenues. International events alone brought in $6.6 million, more than double the prior year’s $3.2 million. On the TV front, pay-per-view revenues were down to $18.8 million from $19.9 million, broadcasting rights fees grew slightly to $22.8 million, and the WWE 24/7 SVOD service revenues more than doubled to $1.4 million.
Digital media revenue grew from $5.9 million to $7.7 million, a 31% increase, driven by gains at WWE.com, where web-based advertising increased by 68%. Consumer products revenues fell to $19 million from $21.7 million, partly due to a significant fall in home video revenues, from $11.4 million to $5.7 million. The quarter also included $12.8 million from WWE Films. Source: Worldscreen, 1st Nov 2007
Asia/General: Speedcar Series to Start in January with Formula 1 Backing
The start of the Speedcar Series, a new Asian-based stock car racing championship, has been put back until January 2008 to coincide with the launch of the GP2 Asia Series. The GP2 Asia Series is an offshoot of GP2, the support series to Formula 1. The first round of both new series will take place at the Dubai Autodrome in the United Arab Emirates on January 26 and further so-called Grand Racing events will take place in Indonesia, Malaysia and Bahrain before the drivers reconvene for the final round back in Dubai on April 12. The races in Malaysia and Bahrain will be held on the same weekends as Formula 1 grands prix.
There had been plans for Speedcar Series events in Bahrain, Dubai and another unconfirmed venue before the end of this year, but these will not now take place. The drivers will however be in Bahrain on November 2 and 3 and Dubai on November 16 and 17 to perform demonstration runs in their cars. Meanwhile, Formula One Management has agreed to handle the television production for the Speedcar Series, as it does for GP2, and media group One-o-One has been appointed to distribute the worldwide television rights.
Benoit Lamonerie, the general manager of Speedcar Series, said: ‘I’m sure motor racing fans everywhere would agree that FOM TV provide the highest-standard, inspirational and compelling television pictures in international sport, and we are absolutely thrilled to be working with them to ensure that our championship broadcasts itself in the very best way. By scheduling the start of Speedcar Series to begin alongside GP2 Asia, and agreeing a television production deal with FOM, we are taking steps to guarantee that our product receives equal billing, and reaches the widest possible audience.’
The Speedcar Series will involve 24 identical 620bhp stock cars and feature ex-Formula 1 drivers, including Jean Alesi, Johnny Herbert, Stefan Johansson and Narain Karthikeyan. The champion will receive $600,000 out of the overall prize fund of $3 million. Source: Sportcal, 17th Oct 2007
Elsewhere/Rights: Returning Agencies Help the FA Hit International Rights Jackpot
The Football Association, English soccer’s governing body, was able to conclude enhanced deals with existing agency and broadcasting partners in order to increase income from the sale of international media rights by more than £100 million ($208 million) over four years. Sportfive, the international sports agency which currently distributes the rights to England home matches and the FA Cup knockout competition in Europe, is among the companies to have agreed contracts covering the period from 2008 to 2012.
It was announced yesterday that the FA has secured more than £145 million ($300 million) from deals covering the period from 2008 to 2012. This is a 275-per-cent increase on the £38.5 million generated last time round. The FA told Sportcal.com that it had been able to keep many of the agencies involved, but that there were also ‘quite a few direct broadcast deals.’ One of the most lucrative deals will be in Asia, where the rights are believed to have been retained by ESPN Star Sports, the broadcaster jointly owned by News Corporation and Walt Disney.
The FA has said that the successful bidders will be confirmed when the contracts are finalised. Having already secured £425 million from a domestic tie-up with UK free-to-air broadcaster ITV and pay-television operator Setanta, a 42-per-cent increase on the present deal with rivals the BBC and BSkyB, the FA claims it is more financially secure than ever before. This will provide some comfort if, as expected, the association misses out on the windfall that would come from England qualifying for next year’s European Championships in Austria and Switzerland.
England’s fate is out of their hands after they lost 2-1 in Russia last month, but the FA has been buoyed by the international rights deal, extra revenues from ticket sales at the new Wembley Stadium and the decision to end the World Cup continental rotation policy, allowing it to bid to host the 2018 tournament. FA chief executive Brian Barwick said: ‘This new deal is excellent news for the organisation, following on the back of opening Wembley Stadium, passing the structural review of the organisation, finalising our commercial partner programme and securing a domestic broadcast agreement.
‘It means that the FA will be in its strongest-ever financial position, allowing us to substantially increase our investment back into all levels of the game. The new deal also underlines the enormous popularity of the England team and the FA Cup around the world, at a time when Fifa [soccer’s world governing body] have opened the way for a possible English bid for the 2018 World Cup.’ FA group commercial director Jonathan Hill said: ‘We are very pleased at the outcome of what was an extremely competitive tender process. The growth in the value of our rights reflects the continuing importance that broadcasters and sports marketing agencies attach to the FA Cup and the England team.’ Source: Sportcal, 1st Nov 2007
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