Wednesday, 25th June 2008

DATA BOX

HDTV to Boost ARPUs of Pay TV Operators
Euroconsult Study for Measat published on Indiantelevision.com, 24th June 2008

Bullish on HDTV, a majority of pay TV operators expect it to increase ARPUs (average revenue per user) and have identified it as a key strategic priority for their business. The rollout of HDTV is being spearheaded by newer pay TV platforms looking to differentiate their offerings from existing platforms, a Measat Satellite Systems and Euroconsult joint study in the Asia-Pacific region said.

More established platforms were taking a slower approach to implementing HDTV. According to the study, 75 per cent of pay TV operators surveyed have, or were planning, to launch a HDTV offering during 2008. The study, which was conducted during May by Euroconsult, polled the rationale, benefits, challenges and expectations of HDTV amongst the Asia-Pacific pay TV operators. 25 operators in 15 markets, collectively serving more than 24 million subscribers, were interviewed.

Interviews conducted suggested that HDTV was seen as not particularly easy or difficult to introduce. The lack of substantial HDTV content – both local and international – was viewed consistently as the most important roadblock for developing the HDTV sector in the region. Said Measat CEO Paul Brown-Kenyon, "The results from this study are very interesting. The insights will help us determine how best we can support our customers and partners in the development of this important segment.”

Added Euroconsult MD Pacome Revillon, “The study provides clear evidence of faster development of HD offerings in Asia than previously expected. Opportunity for growth and increasing competitive pressure are the primary factors driving pay-TV broadcasters to develop an HD offer.”

Beijing Sponsorships Gaining Chinese Recognition
CTR Market Research published on Sport Business, 24th Jun 2008

70% of Chinese consumers consider Olympic sponsorship a positive endorsement of a company’s products, according to a report by China’s largest market research company, CTR Market Research. The report said that 53.9% of those polled would purchase products from an Olympic sponsor.

According to the study, US soft drink manufacturer, Coca-Cola and China’s largest computer maker, Lenovo, are the brands which are most associated in the minds of Chinese consumers with the Games. Around 31 per cent of participants correctly identified Coca-Cola as an official sponsor and 19.5 per cent for Lenovo - the highest in their respective industries.

CTR also said that the Olympics image association was most uneven in the beer industry. While China's top brewer, Tsingtao was the most widely recognised for its official sponsorship among all the three official beer sponsors, at 24.1 per cent, the other two beer sponsors, Anheuser-Busch's Budweiser and Beijing's Yanjing Beer were correctly identified by only 9.6 per cent and 3.3 per cent respectively.

Global Entertainment and Media Outlook
PricewaterhouseCoopers Report on Info IQ, 24th Jun 2008

The global entertainment and media (E&M) industry will reach $2.2 trillion in 2012, growing at a 2008-2012 compound annual growth rate (CAGR) of 6.6%, according to PricewaterhouseCoopers. E&M companies over the next five years will need to accommodate dramatic changes in devices, as well as market and consumer behavior, by striking strategic business alliances if they are to drive growth. Several critical technologies - e.g., broadband, mobile, digital cinema, HD TV - are reaching tipping points that will deeply influence both the pace and direction of entertainment and media growth over the next five years.

The global broadband boom continues unabated, fueling overall growth, and more than doubling again to 661 million households in 2012, a 16.4% compound annual increase during the forecast period. With the exception of recorded music, in which case digital distribution will surpass physical distribution in 2011, established and traditional business segments will continue to dominate revenues. For example, TV subscription and license fees will show growth in all regions, growing at a 10.1% CAGR overall, from $173.5 billion in 2007 to $280.8 billion in 2012.

Nevertheless, digital and mobile are driving growth. Although digital and mobile distribution comprised only 5% of global E&M spending in 2007, these revenues will account for 24% of all growth throughout the industry during the next five years.

By 2012, digital and mobile revenues will account for just 11% of total E&M spending, or $234 billion of the $2.2 trillion global market. The US remains the largest but slowest-growing E&M market, growing at a 4.8% CAGR and reaching $759 billion in 2012. Internet advertising and internet access spending will be the only two segments with double-digit growth during the next five years, boosted by continued growth in broadband. In the US, consumers are taking a preference for free, or heavily discounted, ad-support ed content and services in the new digital and mobile environment. This ensures that the importance of advertising will continue to grow - both to entertainment and media companies themselves and to their customers.

Although internet advertising growth will moderate, it will see the most robust growth, at 19.5% CAGR through to 2012 globally. Internet access (12.1% CAGR), video games (10.3% CAGR) and television subscriptions and license fees (10.1% CAGR) will all experience double-digit growth. More established segments - television advertising (5.9% CAGR), theme parks (5% CAGR), casino gaming (6.5% CAGR), filmed entertainment (5.3% CAGR) and sports (6.5% CAGR) - are all set to grow at between 5% and 7% compounded annually. The publishing segments, including Newspapers (2.2% CAGR), Consumer Magazine (3.5% CAGR), Consumer & Educational books (2.8% CAGR), Business-to-business publishing (3.2% CAGR) as well as recorded music (-0.6% CAGR) face the stiffest challenges, where the declines in physical distribution are at their most significant and growth in digital distribution-although rapid-is struggling to make up for the shortfall.

The Net Generation continues to set the pace and direction of change in the entertainment and media industry while exhibiting an influence that is driving new business models that are revolutionizing the relationship between companies and their customers. As they make these technologies regular components of their everyday lives, the Net Generation is also driving the technology engagement of prior generations, connecting older generations with the latest trends in emerging media technology.

This growth will help sustain traditional formats even as this generation becomes increasingly interested in the platforms embraced by their children and grandchildren. Over the next five years, Asia Pacific and Latin America will be the fastest-growing regions. Double-digit increases are expected in each of those regions for internet advertising, internet access spending, TV subscription and license fees, casino and other regulated gaming and video games.

Key stats:
* In the BRIC countries, people under the age of 25 comprise at least 31% of the countries’ total populations - 43% in Brazil, 31% in Russia, 50% in India and 38% in China.
* In every region of the world except EMEA (East Europe, Mid East, Africa), the 50+ population will see double-digit growth rates, and globally this population will increase from 1.1 billion to 1.25 billion, a 13.1% rise through 2012.
* Spending in Asia Pacific will average 8.8% CAGR, the second highest of any region, increasing from $333 billion in 2007 to $508 billion in 2012.
* Vietnam will be the world’s fastest-growing television subscription and license fee market over the next five years-growing at 29.3% CAGR.
* The internet access market in Saudi Arabia and the pan-Arab states will grow at 30.1% CAGR, rising to $13.8 billion in 2012, surpassing Russia and rivaling France.
* Internet advertising, internet access spending and TV subscriptions will lead the industry expansion in Saudi Arabia and the pan-Arab states - with the broadband household universe expanding at more than 20% CAGR
* E&M markets across 15 countries will expand at double-digit annual rates during the next five years, with Saudi Arabia and the Pan-Arab region experiencing the fastest growth.


SPORTS SHORTS

* Prasar Bharati has arranged the live telecast of semi-final and final matches of Euro on Doordarshan National channel. The semi-final matches are scheduled to be held on 26 and 27 June at 12:15 am. The final match of Euro Cup will be played on 30 June 12:15 am. The Euro Cup is being telecast live on private sports broadcaster ESS. Indiantelevision.com, 24th June 2008

* Globo TV International has licensed the comedy series The Cleaning Lady to Malaysia’s Media Prima Berhad, which operates the country’s leading terrestrial network, TV3, as well as 8TV, ntv7 and TV9. Globo has been ramping up its presence in the region, scoring slots in China, India, Vietnam and Macau, among others. The Cleaning Lady is slated to launch in Malaysia in July, and will be dubbed into the local language. Worldscreen, 24th Jun 2008

* Mohamed bin Hammam, the president of the Asian Football Confederation, soccer’s continental governing body, wants to see the World Cup return to Asia in 2018 and encouraged several countries in the continent to bid for the tournament. Bin Hammam said: ‘I would like to see the Fifa World Cup back in Asia in 2018. We have a number of countries who are qualified to host it successfully.’ Asia held the World Cup in 2002 when Japan and Korea co-hosted the tournament. Asian countries that have expressed interest in hosting the 2018 event include China, Japan and Qatar, plus Australia, which now falls under the soccer governance of the AFC after switching from the Oceania Football Confederation. Sportcal, 24th Jun 2008

* IMG is in advanced talks to buy reality TV titan Mark Burnett Productions. Burnett Prods. has produced hit shows such as Survivor and Apprentice, and defined the genre of reality TV. The company has also done some major online deals, none of which have been huge, but certainly among the first big online-TV joint efforts, including the AOL Gold Rush and MySpace deals. Burnett has been shopping his company for months, and has been rumored to have talked with Endemol as well. The hefty pricetag, of as much as $400 million, is whats keeping a deal from happening. With IMG, it looks like half of the money may come in cash, and rest in earnout. Paid Content, 24th Jun 2008


MORE NEWS

Asia/General: Wimbledon Looks to Asia to Boost Merchandising Sales

Wimbledon, one of tennis’ four annual ‘Grand Slam’ tournaments, has targeted Asia as an important market for merchandising, and has opened two shops in Beijing as part of its expansion drive. Robert McCowen, marketing director of the All England Lawn Tennis Club, told the Reuters news agency that Asia is ‘booming’ and is ‘the fastest expanding market in the world for merchandising. Asians love brands and prefer to spend money on luxury goods rather than on their homes. Europe is a very mature market and it is very difficult to introduce the Wimbledon brand in depth there. Asia is a land of opportunity.’

In China alone, 34 shops sell branded Wimbledon merchandise across 14 cities, with two stores opened this year in Beijing ahead of the 2008 Olympic Games. India is another growing market for Wimbledon merchandise, including the sale of 10,000 limited edition scooters there. McCowen also said that there is a ‘room for a lot more expansion’ in the sale of Asian television rights to Wimbledon. This year's tournament, which started yesterday at the All England Lawn Tennis Club, is being seen in around 180 countries. Sportcal, Thaindian News, 24th Jun 2008, similar story yesterday

Elsewhere/General: English Clubs to Take Pay Cut?

UEFA will try to persuade English clubs to accept a smaller chunk of future Champions League revenues after latest figures revealed another bumper European pay-day for the four Barclays Premier League sides last season. Figures made available by UEFA on Monday showed that Manchester United, Chelsea, Liverpool and Arsenal earned a combined £102 million from Champions League television and sponsorship cash - a figure that does not include gate receipts or matchday revenue.

European champion Manchester United, unsurprisingly, was by far the largest earner in Europe with £33.9 million while beaten finalist Chelsea was next with £28.7 million, Liverpool took £21.1 million and Arsenal £18.3 million. Those four were also the top earners from the Premier League and UEFA is conscious that Europe's top club competition has created a wealth gap in domestic football. The current system is in place until 2012, but UEFA will seek to win backing for changes via the European Strategy Council, the consultative body representing clubs, leagues, players and associations.

William Gaillard, UEFA communications director and special adviser to the organisation's president Michel Platini, said: "We are well aware there are some imbalances in the revenue distribution which have a negative effect in national leagues by widening the gap between the rich and not so rich. We will talk to the clubs and see how they feel, and try to convince them that in the longer run it is not in their interest if, because of the way money is distributed, national leagues become too imbalanced. This is something we have to bring to the strategy council and find a consensus, but we will have a very wide consultation policy."

Gaillard said Platini's approach would be to win a broad agreement rather than impose the new system on the clubs. He added: "We have a situation that is fixed until 2012 so that gives us plenty of time to review it." The four English clubs earned a total of £102 million and Celtic and Rangers picked up a further £18 million meaning that 26% of the £462 million total Champions League television and sponsorship revenues ended up in British hands. The financial success is due to all four English clubs making the quarter-finals at least, and reflects the fact that the ITV/Sky Champions League deal is the largest of any country in Europe.

Simon Chadwick, professor of sports business strategy at Coventry University, said the Premier League clubs were benefiting from a "virtuous circle". "The more money you earn, the better the players you can sign, and the more success you have, and then you earn even more," said Chadwick. "But increasingly the big thing in the Premier League and in Europe is this issue of competitive balance. You don't want over-domination because that adversely affects the product." Chadwick said, however, that UEFA would be loath to upset the Premier League clubs because they added so much glamour to the European competition.

He added: "There is a global turf war for television sports fans going on - for example the NBA (National Basketball Association) in China has been much more proactive than football, and the Champions League needs the likes of Manchester United and Chelsea - and the clubs need the Champions League too for their own profiles." Outside of Britain, the biggest earner was AS Roma, the Italian club who made it furthest in the competition, with £22.9 million, while FC Barcelona, the only non-English club in the semi-finals, was slightly behind on £21.7 million. The lowest earner among the 32 was Shakhtar Donetsk of Ukraine, which earned £5.6 million. Football Insider, Sport Business, 24th Jun 2008