News bullets about the fascinating and frenetic business of sports, particularly focused on broadcast, programming and rights in Asia
Tuesday, 6th November 2007
SPORTS SHORTS
* Nimbus was forced to sell its rights as official ‘revenue-management company’ (RMC) for cricket’s India-Pakistan series, including both one-days and the Test matches, to Indian public-service broadcaster Doordarshan. Nimbus was forced to sell the RMC rights to Doordarshan for Rs 81.5 crore as the law stipulates that the broadcaster who manages to bring in most money from sponsors and advertisers gets the rights to marketing the tournament. As a result of this development, Neo Sports and Doordarshan will sell advertising and sponsorships independently on their respective channels. Source: Sport Business, Sportcal, 5th Nov 2007
* Public broadcaster Prasar Bharati told the Delhi High Court that BCCI and Neo Sports cannot force it to encrypt the live feed of cricket matches of national importance that it receives from private broadcasters. The High Court was hearing a petition by BCCI and Nimbus Communication seeking a direction for encryption of Doordashan signals to prevent illegal transmission of live feed by private operators. Countering the suggestion mooted by Nimbus counsel to direct the public broadcaster to issue instructions to cable operators to desist from indulging in piracy, Prasar Bharati said it (Nimbus) can take action against cable operators by filing suits against them. Source: The Hindustan Times, 1st Nov 2007
* Italian network Mediaset has agreed a three-year partnership with China's CGM Sport Channel. The agreement means Mediaset will have the right to air sports covered by the Chinese channel, while Mediaset's Publieuropa unit will be responsible for selling advertising space for CGM Sport Channel outside China and Taiwan. According to Il Corriere della Sera, Mediaset could also purchase a minority stake in China Global Media (CGM), which launched the sports channel in April. Source: Sports Media, 5th Nov 2007
* Earlier, there was talk of Voom’s plans to get its signals on Measat 3 in order to re-distribute its HDTV programming across Asia. Nov 5 saw the deal signed, permitting broadcasters as far afield as Eastern Africa, the whole of the Middle East and Asia, to tap into Voom’s signals. Ascent will uplink the 1080i feed from Singapore onto Measat-3. One deal that’s not yet as firm as we hinted is Voom’s carriage on Israel’s cable systems. Despite the reports now circulating that suggest an agreement is in place it seems someone in the region was a little hasty is spreading the word. An Israeli deal will probably emerge, but terms have yet to be concluded, says Voom. Source: Rapid TV News, 5th Nov 2007
* Imposition of martial law in Pakistan meant an end to independent TV news broadcasting by cable. Transmission of all private TV channels in Pakistan has been blocked during the current state of emergency. This includes international channels like CNN and the BBC. "Switch off all television channels before 6.00 pm," a cable operator in Islamabad quoted the government official as saying on November 3. An official of the Pakistan Electronic Media Regulatory Authority (PEMRA) gave the order on telephone at around 4 pm. Viewers with satellite dishes can receive incoming signals, although there are reports of signals being jammed, according to the Hindustan Times. Source: Rapid TV News, 5th Nov 2007
* Getty Images has penned a deal with Asian sports marketing, event management and media company World Sport Group. The agreement means World Sport Group’s range of digital assets will be managed and hosted by Getty Images’ media management system. Getty Images will also represent a range of content from World Sport Group. The partnership provides World Sport Group with access to Getty Images’ sports imagery across a range of Asian and international sports for its below-the-line marketing and communication tools. Source: Sports Media, Sport Business, ADOI!, 5th Nov 2007
* The Commonwealth Games Federation was today set to begin a review of a request to exclude the sports disciplines of race walking and synchronised swimming from the sports programme of the 2010 Commonwealth Games in Delhi. The request from the games organising committee followed a recommendation by the CGF sports committee that the disciplines should be excluded from all games, beginning with those of 2014. The review was set to take place at the federation’s general assembly, beginning in Colombo, Sri Lanka today, which will culminate with a vote to decide the host city for the 2014 games. Glasgow in Scotland and Abuja in Nigeria are the two contenders. Source: Sportcal, 5th Nov 2007
* Microsoft Corporation has added HD and SD full-length sporting events, television shows and video game programming from ESPN to Xbox LIVE, its online games and entertainment network on Xbox 360. ESPN programming available for download on Xbox LIVE include full-length NCAA college football and basketball games; the Summer X Games 13; the 2007 World Series of Poker; the 2007 season of The Contender; the full-length high-definition surfing documentary Down the Barrel; and the 2006 and 2007 seasons of the reality series Madden Nation, which takes fans inside the world of Madden NFL football competitive video gaming. ESPN content will be updated weekly with new events and shows. Source: Worldscreen, 5th Nov 2007
* New social networking website for sports communities, Loop’d Network, has launched, aiming to benefit from a perceived consumer move away from general networks like MySpace and Facebook to niche communities of interest. Loop’d Network aims to provide the opportunity to develop a community around a particular sport, professional athlete, organisation, brand or event. The network is an expansion of SponsorHouse, which launched in 2001 and has attracted a grass-roots network of 200,000 athletes seeking sponsorship. SponsorHouse will become one of the communities in the new Loop’d Network. Loop’d Network aims to generate revenues through advertising and e-commerce. Source: Sportcal, 5th Nov 2007
MORE NEWS
Asia/Broadcaster: Olympics Must Stay Free to View
The Asia-Pacific Broadcasting Union has made a strong plea to the IOC to keep the Olympic Games on free TV. At a conference in Tehran this past weekend the ABU called on the International Olympic Committee to ensure that the free-to-air broadcast rights to the Olympic Games are sold directly to free-to-air broadcasting organisations in the ABU region. The “Tehran Declaration on Media Coverage of the Olympic Games” was unanimously adopted by ABU members at the 44th ABU General Assembly in Iran on November 3, which was opened by Iranian President Mahmoud Ahmadinejad. The request follows numerous reports that the IOC is looking to sell TV rights to the highest bidders, which usually means pay-TV broadcasters.
The matter of discrimination was addressed by the ABU General Assembly, which urged the IOC to adhere to the Olympic Charter by not discriminating against free-to-air broadcasters. Rule 49 of the Olympic Charter states that the IOC shall “take all necessary steps to ensure the widest possible audience in the world for the Olympic Games”. The charter also states that “any form of discrimination is incompatible with belonging to the Olympic Movement”.
In August 2000, the IOC issued a press release stating: “The Olympic Games are special to everyone, so everyone should be able to watch them on television free of charge.” In a press conference in Isfahan on November 2, ABU President Genichi Hashimoto said: “The ABU will continue to fight for the rights of the free-to-air broadcasters in the Asia-Pacific region to get priority in broadcasting major sporting events.”
The ABU, which negotiates broadcast rights fees on behalf of its members via a sports pool, has been facing a lot of pressure to “unbundle” the broadcast rights to sporting events, as governing bodies of various sports were keen to sell them separately to operators of different media platforms. Source: Rapid TV News, Worldscreen, 5th Nov 2007
Japan/Broadcaster: Fuji Behind Volleyball World Cup Coverage
The World Volleyball Federation (FIVB) has lifted the lid on the extensive media coverage of its Women's World Cup in Japan. The event started on Friday and will run through to November 16, with the Men's World Cup to follow from November 18 to December 2. Fuji Television Network, as the host broadcaster of the competition, is using around 800 people to cover the event and more than 100 kilometres of cable. Fuji has also installed up to 25 cameras in each arena to show the action from all angles.
For the first time, the FIVB World Cup is being produced in high definition, with Fuji's coverage being taken by 17 channels from around the world. KBS Sky Korea, Shanghai Media Group (Great Sport Channel), PCCW Hong Kong, Channel 4 Thailand, RTS Serbia, Puerto Rico, HiTV Nigeria, RTR Russia, NBC, ICRT Cuba, TyC Argentina, Telesport Romania, KBC Kenya, Ma Chaine Sport (France), Al Jazeera Sport, VTV Vietnam and Rai (Italy) are all providing live or delayed coverage of the event. The tournament is ultimately expected to reach more than 400 million households over 50 countries around the globe, with much of the coverage coming via news bulletins. Source: Sports Media, 5th Nov 2007
Asia/General: Prize Money Escalates on the Asian Tour
Prize money on golf’s Asian Tour is increasing significantly next year reflecting the growing interest and investment in the sport throughout the continent. The schedule for 2008 was unveiled today and features 11 events with prize funds of at least $1 million. The Tour has drawn attention to six events where the money on offer to the players has been increased significantly. These include the Pine Valley Beijing Open and Iskandar Johon Open, both of which were introduced this year and will have prize funds of $1 million in 2008. A record $2 million will be at stake at the Maybank Malaysian Open and prize money at the Barclays Singapore Open, the Tour's flagship event, is increasing by 20 per cent to $5 million.
Meanwhile. players at the Midea China Classic and Macau Open will be competing for $500,000. The season starts with the inaugural $300,000 Asian Tour International at a venue to be decided from January 24 to 27 and will visit some 16 countries and territories, culminating with the Volvo Masters of Asia at the Thai Country Club in Bangkok in late-December. Asian Tour executive chairman Kyi Hla Han said that the record prize money 'clearly signifies the growing strength of the game across the region and the support from corporate Asia.' He added that negotiations were still taking place which should see several other events added to the schedule. Source: Sportcal, 5th Nov 2007
Global/Broadcaster: EuroBasket 2007 Enjoys Boom In Coverage
EuroBasket 2007 generated more than 1,000 hours of television coverage and was watched by a cumulative audience of 121 million people, according to FIBA Europe. The organisers of the event reported that the provisional figures for the 2007 editions of the EuroBasket and EuroBasket Women basketball competitions were collected from only 24 of the major European networks covering the tournaments. The numbers, despite already being more than the entire 2005 event (980 hours and 107 million viewers) are therefore set to increase further as the final audience summaries come in from the other broadcast partners in Europe and beyond.
EuroBasket was broadcast in more than 100 countries and territories outside of Europe, including emerging basketball markets such as India and Malaysia. EuroBasket 2007 host broadcaster La Sexta pulled in one of the largest TV audiences for a basketball event in the country’s history for the gold medal game between Russia and host country Spain. The thrilling clash, which saw Russia win 60-59, was the most-watched television programme in Spain in September, with an average audience of 5.5 million tuning in. A total of 350,000 fans also followed the action unfold online. Source: Sports Media, 5th Nov 2007
Elsewhere/Rights: Champions League TV battle begins
The BBC, ITV and BSkyB are all working on their bidding strategies for the television rights. Britain's biggest broadcasters have begun jostling for position ahead of a Champions League rights auction that is expected to yield a record sum for Uefa as the BBC, ITV and BSkyB go head-to-head. Having lost the rights to live FA Cup matches and England's home internationals to Setanta and ITV from next season, the BBC is determined to launch a bid for live Champions League football despite a below-inflation licence fee deal and complications around the tournament's sponsors.
Uefa confirmed yesterday that it would issue tender documents for the three seasons from July 2009 after this season's Champions League final in May. With audiences for the tournament holding up, defying predictions it would lose popularity as audiences became more familiar with clashes between the same teams, Uefa is hopeful of boosting the current £90m-a-year deal to nearer £150m. UK broadcasters are already weighing up their options, with the BBC, ITV and BSkyB working on their bidding strategies. With Uefa determined to maintain the tournament's reach and attractiveness for sponsors, it is thought likely that at least one terrestrial broadcaster will win a portion of the rights.
For the first time, the current deal required all broadcasters to simultaneously show matches live on the internet. A Uefa spokesman said it would assess the success of that experiment before deciding whether to repeat it. BSkyB, conscious of the challenge posed by the new entrant Setanta since it broke its dominance of live Premier League coverage this season, is determined to hang on to its share of rights.
Channel Five, which was also in the running last time around and is now 100% owned by European media giant RTL, is also likely to submit a bid. ITV, riding the crest of the wave after a successful formula one season and Rugby World Cup, has identified sport as one of the key battlegrounds in maintaining mass audiences and the executive chairman, Michael Grade, is set to bankroll an increased bid.
The BBC last made a serious bid for the rights in 2002, when it guaranteed Uefa that it would pay more to compensate sponsors for lack of exposure. This provoked furious complaints from ITV that the BBC was using licence fee money to overpay for rights. The loss of the FA rights, for which the BBC paid the lion's share of the £75m a year contract it shared with BSkyB, will free up money for the bid.
BBC sport is understood to have earmarked enough cash to bid aggressively for the rights. Due to the department's move to a new base in Salford and savings made in other onscreen areas, the sports division has been less badly affected than others by recent cuts. ITV and BSkyB currently share the Champions League rights in a £90m-a-season deal. ITV has first pick of matches played on a Tuesday, showing two of them live. BSkyB shows the other six and all eight games on a Wednesday during the group stages. The pattern continues throughout the knockout stages, with both broadcasters screening the final.
Setanta, which will pay £150m towards the £425m four-year FA deal that will allow it to claim it shows the most live football of any UK broadcaster from next season, is understood to have already ruled out bidding for the Champions League contract. The BBC and ITV are also about to go head-to-head in the battle for the rights to the next Rugby World Cup. The BBC recently retained the rights to Six Nations rugby until 2013 in the face of stiff competition and agreed a three-year deal for the US Masters golf.
Contrary to predictions that UK audiences for Champions League football would begin to dip, ITV last year recorded an average audience of 5.9 million for its coverage - its best season since 2002-03. It was aided by another good performance by English teams, with three reaching the semi-finals and Liverpool making the final for the second time in three years. Source: The Guardian UK, 1st Nov 2997
Elsewhere/General: Sports Sponsorship Revenues in USA Hit $2 Billion Mark
Sponsorship in US sports is expected to top $2 billion this year, according to an IEG Sponsorship Report (SR). The four major US pro sports leagues - MLB (baseball), the NFL (American football), the NBA (basketball) and the NHL (ice hockey) - and their teams are projected to generate a 15% increase in sponsorship revenues this year to $2.07 billion. The increase across the US’ four most established sports leagues exceeds the forecasted 11.7% increase across the overall sponsorship industry. The $2.07 million total is up from $1.8 billion in 2006 and $1.5 million in 2005. By the end of this calendar year, the NFL is projected to have generated the most substantial sponsorship revenues of $785 million, followed by MLB on $505 million, the NBA on $490 million and the NHL on $290 million.
IEG SR senior editor William Chipps believes the overall increase is due to the Leagues’ international marketing efforts and their ability to secure new partners in previously untapped categories. “That one-two punch has lifted professional sports sponsorship spending to a new level,” he said. The NBA nearly doubled its roster of partners for October’s China Games over the series’ 2004 debut. New partners included Adidas, Lenovo and Toyota USA. From a domestic perspective, the NBA earlier this summer signed a new partnership deal with the Wm. Wrigley Jr. Company. In American football, the NFL penned deals in two new categories, with Bank of America coming on board as the League’s official bank and Bridgestone becoming the competition’s ‘official tire’. The League also signed a new deal with The Home Depot.
MLB recently struck new partnerships with KPMG and State Farm Insurance, and the NHL agreed a contract with The Bank of Nova Scotia’s Scotiabank. The ice hockey competition has also snapped up Pepsi-Cola, which was an existing NHL sponsor, as title sponsor of the inaugural Winter Classic outdoor game on January 1. It is also worth noting that, although it is not included in the report, MLS (soccer) is expected to attract a substantial increase in sponsorship revenues this year. This is largely thanks to the addition of superstar David Beckham to the Los Angeles Galaxy, and the League’s recently-introduced rule allowing clubs to have shirt sponsorships. Source: Sports Media, 5th Nov 2007
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