News bullets about the fascinating and frenetic business of sports, particularly focused on broadcast, programming and rights in Asia
Thursday, 22nd February 2007
HEADLINES OF THE DAY
WWE Expects To Return Soon
World Wrestling Entertainment (WWE) will be back on the air in Indonesia soon, according to Andrew Whitaker, the company’s deputy chief executive of international television. WWE was pulled from Indonesian television late last year by regulators following allegations that it was a harmful influence. "This sort of thing is going to happen in the far-flung corners of the world," Whitaker said.
"We are not the only ones to have similar experiences. Channels have been taken off the air in India, for example. But one of the best ways to soften up a network that is either too strong or a takeover target is to take away its best content." Elsewhere in Asia, WWE’s platforms include Ten Sports in India, Astro in Malaysia, Videoland in Taiwan, Starhub in Singapore and UBC in Thailand.
WWE has concluded several new European deals in recent months, and new television partners are coming on stream. DigiTurk has been added in Turkey, there is a new deal with Liberty Media in Poland and Balkan News Corp. has extended its deal in Bulgaria. WWE has branched into digital terrestrial in France (through Groupe AB) and Finland (with MTV 3). New free-to-air deals are about to be revealed in both Germany and Argentina. Source: Sports Media, 21st February 2007
Race Continues for Britannia Tiger Hungamathon 06-07
Yesterday’s News Re-cap: Indian Television, 19th February 2007
More news appearing in Exchange4Media, 21st February 2007
INFO DIGEST
Info Box – Media Value Index of Top-10 Football Players
Feb 07 Ranking (Sep 06 Ranking) Player/Club - Media Value Index
* 1 (1) Ronaldinho/FC Barcelona 13.3
* 2 (3) Wayne Rooney/Manchester United 12.2
* 3 (4) David Beckham/Real Madrid 11.6
* 4 (2) Ronaldo/AC Milan 10.9
* 5 (21) Cristiano Ronaldo/Manchester United 10.8
* 6 (5) Thierry Henry/Arsenal 9.5
* 7 (18) Didier Drogba/Chelsea 8.6
* 8 (7) Michael Ballack/Chelsea 7.8
* 9 (13) Adriano/Inter Milan 7.5
* 10 (32) Louis Saha/Manchester United 7.4
Source: Football Insider, 21st February 2007
SPORTS SHORTS
* REDACTION: Following yesterday’s edition, Football Insider would like to clarify that, according to Traffic Sports vice-president Aaron Davidson, the potential TV audience of more than 800 million people in the Americas for the Copa America represents a “cumulative buying power of over 12 trillion dollars”. The tournament is expected to attract a record number of 3,500 members of the media. Source: Football Insider, 21st February 2007
* Thailand is putting pressure on Singapore to return satellites it acquired as part of a $3.8 billion purchase of ousted Prime Minister Thaksin Shinawatra's telecom empire. Media reports state that Thais are going to the polls to vote if the country's military-led government should buy back the nation's satellite operator Shinsat. The five satellites are operated by Shin Satellite a unit of Shin which was sold to Singapore's state investment firm Temasek last year. Source: Indian Television, 21st February 2007
* Yahoo! and Eurosport have announced a collaboration to create Europe's leading online sports news and community sport site. The co-branded site will combine Yahoo!'s online knowledge with Eurosport's content positioning. As well as accessing sports news and information, sports fans will be able to share opinions through forums. Initial roll-out will see the service offered in Germany, Italy, and the UK. The new site is scheduled for launch later in the year. Source: Sports Media, Sportcal, C21 Media, 21st February 2007
* Austrian company Sports TV Production International will deploy 19 broadcast cameras for coverage of the PartyPoker.com European Challenge poker event, which will take place from March 10-17 in Vienna with an estimated prize pool of about US$1.1 million. Sports TV Media Distribution will be offering six 52-minute shows from the tournament, plus six more from the new East Versus West Cup sidebar event. Source: Sports Media, 21st February 2007
* The United States Soccer Federation (USSF) is planning to bid to host the 2018 FIFA World Cup. While the aim is to capture the 2018 nomination, the USSF will also market itself to FIFA as an alternative for the 2014 event if a South American country is not ready. Brazil is the current favourite to host the 2014 event, with Colombia the only other country in the running. A decision is expected from FIFA later this year, with concerns over whether Brazil would be ready in time and FIFA president Sepp Blatter has hinted it might go elsewhere. Source: Football Insider, Sportcal, Sport Business, EUFootball.biz, 21st February 2007
* Sportfive is seeking a new chief executive after it emerged that three of its present top officials are leaving in the wake of last year’s acquisition of the agency by Lagardère. The three departing executives are: Philip Cordes, the present chief executive with particular responsibility for Germany and international television; Alain Krzentowski, chief executive for France and Africa; and Gilles Moretton, the vice president for France. It is thought that Lagardère will look outside the agency’s heartland territories of France and Germany for its new chief executive, as it seeks to resolve longstanding friction between the agency’s French and German arms. Source: Sportcal, 21st February 2007
* HBO expects its May 5 Oscar De La Hoya-Floyd Mayweather pay-per-view event to break the 1 million-buy mark, and it could set an all-time PPV-performance record. The fight, for De La Hoya's junior-middleweight championship, arguably pits the two most popular fighters in the sport against each other. The event is expected to be the second non-heavyweight fight to break the 1 million PPV-buy barrier. The first was the 1999 De La Hoya-Felix Trinidad fight, which drew 1.25 million buys. Source: Broadcast Newsroom, 20th February 2007
* A report by Portio Research (Mobile Messaging Futures 2007-2012) found that SMS generated $47.5bn worldwide in 2006, and is predicted to reach $52.5bn in 2007. A projected 3.7 trillion messages being sent annually by 2012 will push this revenue to $67bn. The report predicts a bright future for other mobile messaging technologies, including instant messaging and mobile email. Against expectations, SMS traffic has not flattened out in mature markets but continued to boom. It also predicts that in Asia, every five-minute period for the next six years, 2,267 people will have bought their first mobile phone. Source: Ken Radio, 21st February 2007
MORE NEWS
China/Broadcast: CCTV Dominates National Satellite TV Rankings
At the "2007 Television Drama Production and Broadcasting Annual Conference" held in Shanghai, 2006's national satellite channel ranking was revealed. (See table in Info Box). In 2006, CCTV continues to dominate the market in domestic satellite TV, leading the competition with 8 channels ranked among the national top 10. CCTV started evaluating performance of its channels by market share last year, and managing a variety of resources to enhance its media strength.
Through the exclusive coverage of World Cup 06, CCTV-5 (Sports Channel) raised its share by 35.8% as ranked as number two satellite TV channel in China. CCTV-10 (Education Channel) and CCTV-12 (Law and Society Channel) both exceeded 1% in national share for the first time, with a growth of 69.9% and 35.3% respectively. Source: Entertainment Asia Network, 20th February 2007
Global/General: Ronaldo Making Moves In Media Value List
Manchester United star Cristiano Ronaldo is football’s emerging media icon according to a study conducted by a Spanish university. The Economics, Sports and Intangibles research group (ESIrg) of the University of Navarra in Pamplona has drawn up a list of the players, managers and teams with the greatest media value in world football. The Portuguese international is one of the biggest movers in the list, which is led by FC Barcelona’s Ronaldinho, moving up from 21st to fifth. (See list in Info Box)
ESIrg compiled the list by looking at the relative merits of a total of 928 players competing in the UEFA Champions League from September 2006 to February 2007. Professor Francesc Pujol, a member of the Department of Economics at the University of Navarra, explained to Football Insider the reasoning behind how the list was generated.
Cristiano Ronaldo has been a revelation for Manchester United this season, with his 15 goals making him the Premiership leader’s top scorer. His form has even led to suggestions that he is arguably the top player in world football at present and Professor Pujol stated that a player’s media value is very much driven by their on-field performances.
For players it’s to do with their team’s performance specifically at international level rather than domestic level and then their own individual performances. Cristiano Ronaldo has taken advantage of the fact that Manchester United has been performing very well this year. The Premiership is the main reference point at international level in terms of media coverage and it means that all players can benefit. Amongst Manchester United players he is playing the best. Source: Football Insider, 21st February 2007
Wednesday, 21st February 2007
HEADLINES OF THE DAY
Britannia Tiger Hungamathon Sprints Ahead in Delhi
The Britannia Tiger Hungamathon '06-07 in Delhi finally got up and running on 18 February at Jawahar Lal Nehru Stadium (Lodhi Road). Hungama TV 2007 Captain from Delhi Sakshi Singh flagged off the mini marathon at 8.30 am and also judged the children for 'The Most Crazily Dressed Kid' prize.
The Walt Disney Company (India) managing director Rajat Jain said, "In the second year of this event, we have toured to three cities in India with an overwhelming response of over 90,000 registrations. We at Hungama TV, celebrate this friendship and solidarity with our young fans. Being a brand in the kids and family space is one of immense responsibility. This run was a medium for us to communicate to the millions of children across the country to see the joy and freedom of being outdoors and having fun as a team."
This year the race was open to kids between 8-15 yrs, with two categories - Masters (age 8 - 12 yrs) to run 2 kms and Blasters (age 13 - 15 yrs) to run 3 kms. Hungama TV joined hands with the Delhi Athletic Association for Hungamathon 2007 to ensure appropriate adjudication for the entire event. Total Sports Asia was responsible for the planning, promotion and execution of the event, informs an official release.
Delhi Athletic Association secretary M. L. Dogra said, "One of the aims of Delhi Athletic Association is to promote sports in the state. Through this marathon, we want more children to take up sport and promote the spirit of running. The Delhi Athletic Association is extending its full support and we look forward to a successful event this Sunday."
Total Sports & Entertainment India Pvt Ltd. managing director Navneet Sharma said, "This is a truly unique event where kids get to showcase their talent and their skills. Kids are the future and by touching their lives through this run we are trying to make them enjoy every aspect of their childhood. The Hungamathon provides the ideal platform for kids to maintain the competitive spirit and also to have fun. We are very happy to partner with Hungama TV on this fantastic event." Source: Indian Television, 19th February 2007
South American World Cup Qualifying to Start in September
South American qualifying for the 2010 World Cup would start Sept. 8 under a schedule proposed to FIFA by the region's governing body. The opening slate of games would have Bolivia at Uruguay, Brazil at Colombia, Chile at Argentina, Paraguay at Peru and Venezuela at Ecuador, the governing body CONMEBOL said Thursday.
Most regions will start qualifying after the World Cup qualifying draw, scheduled for Nov. 23 in Durban, South Africa. African qualifying will start on Oct. 13. South America has four guaranteed berths spots, with the No. 5 team going to a playoff for another berth against the No. 4 nation in North and Central America and the Caribbean. Source: Yahoo! Sports, 16th February 2007
World Superbike Sale Could Create Merger with MotoGP
FG Group, the company that owns the rights to the World Superbike Championship, has put the championship up for sale in a move that could lead to its unification with the rival MotoGP series. Bridgepoint, the venture capital firm that acquired a controlling stake in MotoGP for about €500 million ($657 million) is considered the most likely buyer for the World Superbike Championship, which is valued at about £50 million ($97 million).
Paolo and Maurizio Flammini, the Italian brothers who founded the championship in 1989, took back control of it in 2003 after a period in which it was owned by Octagon, the international sports agency. MotoGP was sold to Bridgepoint last year by another venture capitalist CVC in response to regulatory requirements, after it acquired control of the rights for the Formula 1 motor racing championship for about $1 billion.
Superbikes, the road-going models that are considered technologically inferior to MotoGP machines, are popular in the UK, Australia and USA, while MotoGP’s strength lies in continental Europe. Source: Sportcal, Cycle News, Visor Down, 19th February 2007
WSB owners FG Sport are reported to have instructed American company Merrill Lynch to conduct an auction for the series with a price tag thought to be around £50million. Venture capital company, Bridgepoint is hotly-tipped to table a bid to acquire the series, although they might face scrutiny from the monopolies commission as they already have controlling stakes in MotoGP and BSB.
Bridgepoint paid around £350million to acquire Dorna last summer after previous owners CVC were forced to relinquish the Spanish-based company. That followed a directive made by the European Commission after they acquired the majority shareholding in the Formula One world championship.
This would not be the first time that WSB has changed hands. The series was the brainchild of former AMA Superbike racer Steve McLaughlin and ran for the first time in 1988 under the guidance New Zealand-based Sports Marketing Company. When they hit financial problems it was sold to the Flammini brothers, Maurizio and Paolo, in 1990.
Investment by Indonesian Tommy Suharto helped re-finance the series in 1996. Octagon then bought WSB from the Flammini brothers in 1998 but sold it back to them in 2003, the brothers continuing to run the series throughout the period. Source: Motorcycle News, Times Online, 19th February 2007
INFO DIGEST
Info Box – Worldwide DTH Pay-TV Subs (in ‘000)
* North America - 2003: 23,836, 2006: 31,645, 2010: 35,984
* Latin America - 2003: 3,303, 2006: 4,197, 2010: 5,355
* Western Europe - 2003: 19,255, 2006: 24,470, 2010: 31,709
* Eastern Europe - 2003: 1,458, 2006: 3,129, 2010: 5,296
* Japan - 2003: 5,526, 2006: 8,150, 2010: 12,606
* Asia-Pacific - 2003: 4,075, 2006: 9,283, 2010: 23,002
* Mid-East/Africa - 2003: 2,955, 2006: 4,864, 2010: 6,796
* TOTAL - 2003: 60,407, 2006: 85,738, 2010: 120,748
Source: In-Stat published on Rapid TV News, 20th February 2007
SPORTS SHORTS
* World Wrestling Entertainment® announced today that WrestleMania 23 at Ford Field in Detroit, Mich., on April 1, 2007, has topped $5 million in ticket sales, making it the highest grossing one-day event in World Wresting Entertainment history. All available seats for WWE’s annual pop culture extravaganza, more than 63,000 tickets, are now in the hands of fans from 22 countries and all 50 states. Source: Business Wire, 15th February 2007
* Indian news channels are offering former cricketers big money for special shows and match analysis in view of the Cricket World Cup. TV Today has signed former Indian cricket captain Kapil Dev for an estimated Rs2.5 crore for Aaj Tak. Global Broadcast News (GBN), is close to signing up Navjot Singh Sidhu for a whopping Rs 1.5 crore. Contracts make the cricketers available to the broadcasters for between 150 and 200 days in a year. The less popular ex-players manage to earn between Rs 25 lakh and Rs 50 lakh from similar deals. Source: Agencyfaqs, 21st February 2007
* The mobile telecoms industry focused on India at this year's 3GSM, after years of talking about China's potential third generation licenses and market. Vodafone's $11 billion deal to buy India's fourth-biggest firm, Hutchison Essar, announced on the eve of fair, set the tone. With 150 million subscribers but market penetration of only 15%, India is the fourth-biggest mobile market behind China, the United States and Russia. It is also the fastest-growing major market and is expected to overtake Russia this year. At its current growth rate, there will be half a billion mobile subscribers in India by 2010. Source: Ken Radio, 19th February 2007
* The Thai government said it is considering a plan to buy back the country's only satellite operator, which came under the control of the Singapore government's investment arm as part of a sale of the country's biggest communications company early last year. Information & Communications Technology Minister Sittichai Pokaiudom said on Monday that the ministry will set up a committee chaired by himself to study the buyback option, which could cost about THB10 billion ($300 million). Source: Total Content + Media, 19th February 2007
* Jordan will get its first-ever commercial TV station later this year. ATV is being established by Mohamed Al Ayyan, a 33-year-old entrepreneur and son of a wealthy Amman family which is sinking US$20 million into ATV. All other TV stations in Jordan are state-backed. ATV will launch later this year terrestrially, and on satellite over the entire Middle East, transmitting a mix of current affairs, talk and variety programming, movies and sports. Source: Rapid TV News, 20th February 2007
* Bids for the broadcast rights to France’s top-tier rugby union competition are currently under consideration by the Ligue Nationale de Rugby (LNR), with Canal Plus still remaining the favourite. The rights on offer apply to the Top 14 and the second-tier Pro D2 for four years starting with the 2007-08 season and cover television, the internet and mobile phones. Estimates put the winning bid at between €30 million ($39.4 million) and €35 million a year for the two packages. Canal Plus’ existing €19-million-a-season deal expires in June. Source: Sportcal, 20th February 2007
* The NBA All-Star Game in Vegas will reach 215 countries in 43 languages through a record 110 broadcast partners. 52 international television & radio networks and websites will be on-site for NBA All-Star 2007. 20 television and radio networks will broadcast during All-Star live with on-site commentary. Among the 12 Chinese media outlets on site is CCTV who celebrates its 20th anniversary as an NBA partner throughout All-Star. For the second year running, NBAE and CCTV will produce a customized feed for the All-Star Game. Source: Sport Business, 16th February 2007
* Chelsea has become the first club to launch a football branded channel on YouTube. YouTube.com/ChelseaFC, will include club content, daily news and archive video footage as well as other material including feedback and contributions from fans. The channel will have the same look and feel as the redesigned Chelsea website, representing the latest landmark in Chelsea's multi-media platform strategy. Content will be provided by Chelsea Digital Media, which runs Chelsea TV and the club’s official website. Source: Football Insider, Sport Business, EUFootball.biz, 19th February 2007
* World soccer governing body FIFA’s president has finally admitted how much he gets paid – and last year it was a cool US$1m. Sepp Blatter has traditionally kept his salary a tightly-guarded secret, but admitted the seven figure payment for 2006 during an interview with Swiss newspaper Sonntags Zeitung. Source: Sport Business, 19th February 2007
MORE NEWS
Traffic: Predicting Huge US Figures for Copa America
The Copa America is expected to draw in 800 million viewers in the United States when it takes place in Venezuela this summer. Traffic Sports, the company in charge of selling the television rights for the oldest national team competition in the world, is expecting a big pay-day after sharing the rights between a number of television stations for the first time.
Vice-president Aaron Davidson said: “With the United States taking part in the tournament and the possible coverage in that country, we can talk about an audience of about 800 million people. We expect to collect about US$12 trillion, not only because of the increasing importance of the tournament but also because in 2004, the quarter-final between Mexico and Brazil and the final between Brazil and Argentina were the sporting events with the top audiences among Hispanic people in the United States.”
Univision/Telefutura and Fox Sports will show the competition in Spanish, while Traffic Sports are also negotiating to televise matches in English and Portuguese in the United States. Meanwhile, Empresas Polar, one of the largest drinks companies in Venezuela, has become the official sponsor of the tournament. Beer brand Maltin Polar, which also sponsors the domestic leagues, has also declared its intention to sponsor the Copa America, which will run from June 26 to July 15. Source: Football Insider, 19th February 2007
Hong Kong/Rights: PCCW wins more soccer
PCCW’s Now Broadband TV IPTV platform has further strengthened its grip on football coverage in Hong Kong, signing a deal to broadcast Italian Serie A soccer for three years from the start of next season. Under the terms of the deal with Media Partners & Silva/Dentsu, Now TV has television, broadband, IPTV and mobile TV rights for not less than 130 live matches including most of the home games of major clubs AC and Inter Milan, Juventus and Roma.
Now Broadband TV will add Serie A to its HK$218 Mega Sports Pack which includes UEFA Champions’ League and the English FA Cup football competitions, international swimming, diving and volleyball tournaments as well as the IAAF Grand Prix Athletics in 2007. In December, the company also won the rights to UEFA’s 2008 European Championships. It is also in negotiations with the English Premier League over both television and mobile rights to that football league. Source: Rapid TV News, Indian Television, 19th February 2007
Japan/Broadcast: HD: not just for boys
Japanese cable MSO Jupiter Communications (J:Com) has launched its service’s fifth high-definition channel, offering an HD version of its female-focused channel, LaLa TV. Star Channel High Definition was J:Com’s first HD channel, launched way back in November 2004. In December 2005, Discovery HD and Fox Life HD launched, followed in August 2006 by Movie Plus HD.
LaLa HD will be available as part of the J:Com TV Digital basic package. The HD channel will be a simulcast of the standard-def channel. J:Com had 1.152 million digital cable TV subs from a total 2.196 million TV subs at the end of January but the company provides no figures on the number of homes accessing its HD channels. Source: Rapid TV News, 20th February 2007
India/Broadcast: Star Re-Looking Nimbus Deal
Star India is reportedly looking at renegotiating its contract to carry the pay Neo Sports channels, after government intervention in sports broadcasting as well as regulatory intervention in the pricing of the bouquet. Last month, India’s government ordered Nimbus to share its feed of certain sports events that are “in the national interest” with the country’s public broadcaster, Doordashan. The list is still being compiled, but foremost on the list is likely to be international cricket matches, the rights to which Nimbus now holds.
With Nimbus’s most valuable properties likely then to be also available free-to-air, its channels Neo Sports and Neo Sports Plus stand to lose key subscription drivers, a situation Star, which offers the channels as part of its package, is reportedly not happy with. Star has a minimum guarantee agreement with Nimbus, under which it will reportedly pay at least Rs6 billion (US$136 million) over four years until 2010.
Also likely to be an issue is the case currently before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) under which Nimbus was ordered by the telecom Regulatory Authority of India (TRAI) to lower the price it charges subscribers for its bouquet. Nimbus has also filed a petition in the Supreme Court challenging a Delhi High Court order fixing the price of the bouquet at Rs37.25 a month. Star and Nimbus had priced the bouquet at Rs58.50 a month. Source: Rapid TV News, 21st February 2007
Singapore/Broadcast: HDTV needs five years to take off
High-Definition TV (HDTV) services may take at least five years to take off in Singapore, Chief Information Officer of Media Development Authority (MDA), Yeo Chun Cheng has said. He said that was the amount of time that may be needed to convince half the homes here to junk their old TV sets for new ones that tune in to sharper HDTV images.
He based his estimate on the take-up rate overseas, the Straits Times newspaper has reported. The United States, for example, has between 40 and 50 percent of homes on HDTV, after more than five years since the launch of HDTV services.
Singapore's first commercial HDTV channels went live last month, with StarHub broadcasting the National Geographic Channel and Discovery over its cable-TV network. Mr Yeo also said that lack of content has also been preventing HDTV from taking off faster. He said it still costs 10 to 20 percent more for production houses to shoot TV programmes in HDTV format. Source: Asia-Pacific Broadcasting Union, 12th February 2007
Japan/Broadcast: DPA to Prepare for DTV Transition
Japan has set-up a new organisation to help market 30 million digital TVs in the country by March 2008. The Association for Promotion of Digital Broadcasting (DPA), to be launched on 1 April, is supported by Japanese TV broadcasters, TV set manufacturers and mobile phone carriers. Its mission is to promote the transition from analogue to digital broadcasting. Analogue broadcasts are scheduled to end in Japan on 24 July 2011, making way for all-digital broadcasts.
DPA's first goal is to boost digital tuner penetration to about 30 million units in Japan from an estimated 20 million units projected by March, EE Times reports. Japan has yet to establish rules for its DTV transition. Previously, two separate organisations were promoting DTV broadcasting in Japan, one for satellite broadcasts and the other for terrestrial broadcasting. Source: Asia-Pacific Broadcasting Union, 15th February 2007
Korea/New Media: Echostar Buys into Asian Mobile TV
US satellite broadcaster Echostar has become the second-largest shareholder in South Korea’s TU Media, operator of a satellite digital mobile broadcasting (S-DMB) service. TU Media raised WON69.8 billion (US$74.5 million) through a share issue to Echostar and existing shareholder SK Teleom. Echostar accounted for WON37.4 billion for which the company will hold a 9.9% stake. SK Telecom increased its stake from 29.6% to 32.7%.
With over one million subscribers since launch in May 2005, TU Media’s 15-channel subscription S-DMB service has had some success. But the company also hopes to transport its service overseas. Bringing Echostar in as a shareholder could provide inroads into the massive US market. Source: Rapid TV News, 19th February 2007
Asia/General: UEFA Champions League Trophy Tour
The UEFA Champions League trophy will visit five Asian countries in the next six weeks as part of a tour to celebrate Europe’s premier club competition. Europe’s most prized club trophy will be touring Asia for the first time when the UEFA Champions League Trophy Tour – presented by sponsor Heineken - kicks off in Tokyo on February 23. It will then go to Jakarta, Hong Kong, Kuala Lumpur, Bangkok and Pattaya.
In each country, the UEFA Champions League Trophy Tour will be launched with a press conference involving local footballers and celebrities. The trophy will then be the centre piece of a display in the city centre giving local fans the opportunity to find out more about the tournament and be pictured with the trophy. According to recent research, interest in football is actually higher on average in Asia (62%) than in any other continent, including Europe (55%)*. The 2006/07 season has seen 72 nationalities represented in the UEFA Champions League.
The UEFA Champions League Trophy Tour visits Jakarta, Indonesia, March 1 – 4; Hong Kong March 16 – 18; Kuala Lumpur, Malaysia, March 22 – 25; Bangkok, Thailand, March 30 – April 1 and Pattaya, Thailand April 6 – 8. Source: Sports e-Media, 19th February 2007
Asia/General: Most Rapid DTH Growth to Come from Asia
Western Europe and North America continue to lead the digital satellite pay-TV market in subscribers and revenue. However the fastest growth over the next several years will come from other areas, especially Asia, reports market research firm In-Stat. Key satellite market trends include consolidation in established markets, interactivity, HD, launches, and bundling, the high-tech market research firm says.
Research by In-Stat found the following:
* Total DTH pay-TV subscribers are expected to reach over 117 million in 2010.
* Global DTH-TV revenues will exceed $88 billion by 2010.
* Consolidation occurred in 2006 with service providers like TPS and CanalSatellite and conditional access providers (Irdeto/Cryptoworks).
Source: Indian Television, Rapid TV News, 17th February 2007
Malaysia/General: Maradona Keen to Play in Malaysia
Diego Maradona, regarded to be one of the world’s greatest footballers, may get to display some of his magic here again. The Argentine World Cup hero will be embarking on a World Tour 2007 programme with the focus on Asia, and wants to play in Malaysia. His agents from Buenos Aires were here recently to tie up a deal with interested parties, and also brief Argentine Ambassador Alfredo Morelli.
The 47-year-old Maradona, who led Argentina to the 1986 World Cup title in Mexico, is now actively promoting his own brand of football called “showbol,” a mix between futsal and soccer, played seven-a-side over two 25-minute periods on a 22m by 42m artificial pitch surrounded by an acrylic wall. Luis Lestani, general manager of Elemco Overseas Corp which promotes the Maradona brand of products, said the former soccer great was keen to return to Malaysia, where he had captained his then club Boca Juniors against Selangor in 1982.
Maradona captains his showbol squad, which includes former Argentine players Matias Almeida, Sergio Goicoechea, Alejandro Mancuso, Patricio Campos, Sergio Zarate, Sebastian Rambert, Jose Borreli, Fernando Gamboa and Mackalisster. Lestani said Maradona, capped 90 times for Argentina, had also spoken to him of his interest in establishing a Maradona Football Academy here. Morelli said Argentina was one of the world’s top football nations and Maradona remained its sporting icon. Source: The Star Malaysia, 21st February 2007
China/General: TV Behind China Ad Boom
TV accounted for over 80% of China’s total 387 billion yuan (US$50 billion) advertising revenue in 2006, according to Nielsen Media Research. Spending on TV ads was up a massive 26% on the previous year and that trend is set to continue. Nielsen’s is predicting that China will become the world’s second-largest advertising market by 2010, with double-digit growth likely each year. Spend should get a boost during the 2008 Beijing Olympic Games but even without, the country is set for a massive advertising boom.
Fastest growth is coming from second-tier cities such as Nanjing, although half of all advertising was done in the country’s top 10 cities in 2006. Nielsen’s plans to expand its ratings measurements from the current 3,300 homes in 11 cities it surveys to around 25,000 homes in many more cities during the next two years. Source: Rapid TV News, 20th February 2007
ARTICLES, COMMENTS & OPINIONS
Insight: An Interview with Harish
Ads appearing at the wrong time, run-ins with the I&B ministry, poor commentary–no, it wasn’t a perfect beginning for Neo Sports, sister company of Nimbus Communications, which bagged the rights to telecast both the West Indies and Sri Lanka cricket series at home in the run-up to the World Cup. But Harish Thawani, CEO of Nimbus Communications, insists that March and April will be a time for consolidation.
Last year, he sent shock waves across the sports broadcasting world when Nimbus bagged the rights to telecast all cricket matches in India for $612 million until 2012. Thawani’s company shareholders include Cisco, 3i and Oman International Fund. He spoke to FE’s Sudipta Dutta on the sports broadcasting business, Nimbus’s film plans, and why the industry is at the cusp of a structural change. Excerpts:
What’s the feedback on Neo Sports? What do you have to do to build a better sports channel?
The primary facet of the business is to develop a brand cache, wherein people know that on Neo Sports you get to watch good sport. The second thing we need to develop is a dedicated group of subscribers. ESPN has succeeded in this. We have received consistent feedback about picture quality. The connectivity report shows that we are in 26 million homes. We are developing high quality management that will be able to find innovative ways to pull audiences in lean seasons.
What’s happening in sports broadcasting? More consolidation?
We are at the cusp of a structural change. For the past year, we have been predicting that consolidation will happen. There were six bidders for cricket telecast rights in 2006—Sony, ESPN-Star, Zee, Ten Sports, DD and Nimbus. Now, we are down to three because Ten was bought by Zee, Sony has pulled out of cricket broadcasting, and DD has pulled out too, they are not in the rights buying business. This is very healthy competition.
What are the challenges for the industry, going forward?
The regulatory hurdles have been placed before the sports broadcasting ministry. They are being sorted out—that’s a good sign. The Union cabinet has already set up a technical committee on sports broadcasting. The terms of reference of the committee are encryption, how to deal with the DD-DTH problem and other technical matters connected to the feed. We have always held that we are for regulation, but you cannot change the rules of the game half way through the match.
You have now got into film distribution, too. Do the lessons from managing sports rights help?
Yes. It gives you great insights into how rights are monetised. Last year, we acquired a strong Mumbai-based distribution company and we will complete a national rollout by June and a global rollout possibly by August. Now that our cricket business and other sports have crossed Rs 800 crore in sales, we are looking forward to building a similar size in management of film rights.
Don’t you think Nimbus overpaid ($612 million) for the Indian cricket rights until 2012?
In hindsight, sports rights always look cheap. When we paid $612 million for world rights for 400-odd days of cricket, it looked expensive. Four months later, Zee paid $212 million for 25 one-day games. Six months later, ESPN paid $1.2 billion—including cost of production—for 43 India matches in the ICC package and for some 100-odd non-India matches. When you look at cost per playing day, suddenly, ours looks cheap.
How do you see the future for Nimbus? Do you plan to go public?
We will launch at least one more TV channel by September targeted at women – it’s not an entertainment channel. We are eyeing the video-rental business. As for an IPO, there are no immediate plans. We are sitting on about Rs 750 crore of shareholder reserves. But we have to list one day, so maybe 2008-09. Harish Thawani speaks to Sudipta Dutta of the Financial Express, 20th February 2007
Friday, 16th February 2007
INFO DIGEST
Ultra Low-Cost Mobile Handset Markets
The global market for sub-$20 ultra low cost handsets will be over 330 million units in 2011. With over 50% of these handsets will be shipped in the emerging markets of Asia Pacific and the remainder in markets of Africa, Middle East, Latin America, and Eastern Europe, according to a new study from ABI Research. The growing demand for ultra low cost handsets has provided mobile operators and handset vendors with a quick route to a greater share of the emerging markets.
As the winner of GSMA's tenders for the Emerging Markets Handset Program, Motorola has already shipped six million sub-$40 handsets and another six million sub-$30 handsets to key emerging markets including India, Pakistan, Bangladesh, Indonesia, Philippines, Malaysia, Thailand, Turkey, South Africa, Nigeria, Egypt, Algeria, Russia, and Ukraine.
By 2011, almost one out of every four handset shipped globally will be an ultra low cost handset. The research shows that India will be the biggest market in the next five years, growing from a over 9 million handsets in 2006 to more than 116 million handsets in 2011. Source: ABI Research on Ken Radio, 5th February 2007
SPORTS SHORTS
* New satellite TV subscribers in Asia will help the market generate more than $88bn in revenues worldwide by 2010 and subscriber growth in mature markets is slowing, say analysts from US-based research firm In-Stat. Growth in direct-to-home [DTH] pay-TV platforms in many American and European countries have slowed with new subscribers are growing by single digit percentages annually. Satellite TV business is increasingly looking to Asia for growth, where newly-affluent consumers are expected to grow to more than 117 million by 2010. Source: Ken Radio, 15th February 2007
* A new, three-year deal for Wrigley’s Extra to become the official chewing gum of thee Premier League is worth £3 million ($5.9 million), according to the Daily Telegraph newspaper. The newspaper reports that the deal was unsolicited by Premier League officials, who were initially reluctant when approached by Wrigley’s last month, but agreed after the company offered a £300,000 sum upfront. Source: Sportcal, 15th February 2007
* Birmingham owner David Sullivan has criticised the Football League for selling the television rights of live matches to Sky Sports 'too cheaply'. Sullivan insists the £60,000 Blues received from Sky to show last weekend's game with Stoke, which kicked off at 11.30am on Sunday, did not even cover their costs for police and stewards required at the game. Source: ESPN Soccernet, 15th February 2007
MORE NEWS
India/Rights: Neo Sports to Give Live Feed to DD, No Action Against Nimbus
Following an assurance that it was prepared to give live feed to Prasar Bharati and action against it was unwarranted, Nimbus was today directed by the Delhi High Court to provide live feed for the cricket match between India and Sri Lanka to be played on 17 February in Visakhapatnam. The bench passed the order after Nimbus mentioned the matter seeking protection against the showcause notice alleging a violation of provisions in the Sports Broadcasting Ordinance 2007.
Under the ordinance, the licence given to Neo Sports owned by Nimbus can be suspended. The court directed the government not to take any decision or action till 9 March, the next date of hearing. The court also issued notices to Prasar Bharati on a petition filed by Nimbus challenging the ordinance, which makes it mandatory for private broadcaster to share live feed with the pubcaster. Source: Indian Television, Exchange4Media, 16th February 2007
India/General: Nimbus to Explain 'Racist' Advert
Nimbus Communications has been asked to explain allegedly racist advertisements it carried promoting its coverage of a one-day international cricket series between India and the West Indies earlier this month on its Neo Sports channel. The advertisements, carrying the tag line ‘It’s tough to be a West Indian in India,’ represent an alleged violation of the advertising code under the country’s Cable TV Network Regulation Rules.
One of the advertisements shows a West Indian couple being rowed by a boatman on a large lake. The boatman stands up, throws away the oars, undresses and dives into the lake and swims away, leaving the couple stranded without oars. The ‘It’s tough to be a West Indian in India’ tag line is followed by images of the West Indian and Indian teams playing cricket. Source: Sportcal, 15th February 2007
Malaysia/Programming: ESPN STAR Sports Launches SportsCenter in Malaysia
Asia’s Number One Sports Broadcaster ESPN STAR Sports and Malaysia’s Ministry of Youth and Sport (KBS) announced today the launch of the Malaysian version of SportsCenter, to be broadcast live on ESPN commencing this April. The localised version of ESPN’s award-winning SportsCenter will be produced in Malaysia, presented by Malaysians and cover the best international and local sports.
With a focus on the latest news from the Malaysian sporting scene, Malaysian sports fans can expect to see more of their sporting heroes and follow the latest happenings on this sports news programme that will be broadcast every weeknight on ESPN. This initiative is a part of the multi-year strategic alliance signed by the Ministry of Youth and Sport and ESPN STAR Sports in October 2005 to raise participation and interest in sport in Malaysia.
Malaysia is home to world beaters like Nicol David (squash), Shalin Zulkifli (bowling), Lee Chong Wei (badminton) and Siti Zalina Ahmad (lawn bowls). Malaysia also hosts a number of international sporting events including Le Tour de Langkawi, F1 Grand Prix, A1 Grand Prix and MotoGP, the Sultan Azlan Shah hockey tournament, and the World Badminton Championships. The production of a local version of SportsCenter is timely and appropriate for a sports-loving nation continuing to reach new heights in the international sporting arena. Source: Sports e-Media, Worldscreen, 15th February 2007
Singapore/Business: Digital helps StarHub twinkle
Singapore’s pay-TV and telco StarHub said it reported double-digit revenue growth in all four of its business units – cable TV, broadband, mobile and fixed line telephony, during 2006. Total operating revenues across StarHub’s four units grew 15% to S$1.8 billion (US$1.2 billion) while net profit increased 63% to S$360.2 million. EBITDA was up 25% to S$575.3 million.
Cable TV revenues rose 19% to S$313.2 million as subscribers grew nine per cent to 487,000 by year-end. A much higher percentage of subscribers also took the digital service, up 63% from the end of 2005, to 322,000 homes, or 66% (two-thirds) of the platform’s subscriber base. That helped push ARPU up to S$48 from S$45 a year earlier. StarHub also received a revenue boost from the football World Cup. Source: Rapid TV News, 15th February 2007
Global/Programming: 'FIBA World Basketball’ Now Seen in Over 125 Countries
FIBA (International Basketball Federation) and Sportsbrand Media Group announced today that the second season of the official television series ‘FIBA World Basketball’ will now be available in more than 125 countries worldwide. The most recent addition to the broadcast licensees is ESPN International, who has commenced broadcasting the series into Latin America and Pacific Rim countries.
The half hour weekly show, launched in January 2006, promotes international basketball, allowing basketball fans the opportunity to access highlights and features from basketball played at the top level around the world. The content includes action from the FIBA World and Continental Championships, as well as key regional and national leagues and historical footage from the FIBA archive. Source: Sports e-Media, 15th February 2007
Global/New Media: ZIMTV To Deliver Table Tennis Over the Internet
ZIM Corporation, has partnered with the International Table Tennis Federation ("ITTF"), to broadcast live matches via internet. The partnership enables viewers to watch on-line live matches from the Pro Tour and the World Junior Tour as well as access over 100 archived matches. Through the ZIMTV platform and the video-on-demand and pay-per-view services, ZIM and ITTF have extended the reach of the sport to a global audience. For 2007, ZIMTV will broadcast 21 live events from the Pro Tour and World Junior Tour through unrestricted worldwide access on www.zimtv.biz and www.ittf.com.
The ITTF currently has 202 country members world-wide and is represented in all five continents. Known as the world's fastest sport, table tennis has been an Olympic Sport since the 1988 Olympics in Seoul, Korea and will be the feature sport at the 2008 Summer Olympics in Beijing. Table Tennis currently has the largest TV audience of any sport due to the popularity in Asia.
The total TV-audience in China for the World Table Tennis Championships 2006 (held in Bremen, Germany) was 547,730,000 viewers. Also 123 hours of broadcast was shown in China by CCTV, Shanghai-TV, Beijing-TV and Guangdong-TV. The TV-right holders for ITTF events is made up of more than thirty of the world's leading sports broadcasters, including Tokyo TV (Japan), CCTV (China), TVB (Hong Kong) and Eurosport (Pan-European). Source: Broadcast Newsroom, 15th February 2007
Elsewhere/Programming: UFC Enjoying 'Astonishing' Success In The US
The Ultimate Fighting Championship (UFC) is enjoying “astonishing” success in the United States, according to Richard Dennis at London agency RDA Communications. The UFC pulls in extremely promising audience figures on Spike TV in the United States, and Dennis believes the appeal of the sport will continue to spread internationally over the coming months and years. The UFC encompasses a variety of combat disciplines, such as ju-jitsu, karate, wrestling and boxing.
“The success in America has been little short of astonishing,” Dennis told Sports Media. “Industry reports suggest that an event on December 30 at Mandalay Bay attracted 1.2 million pay-per-view (PPV) buys - that's massive. A recent Kagan report suggested that UFC is now averaging 800,000 (PPV) buys per event at US$39.99 per buy. The UK television market is the biggest international market (outside of the US).”
“The first PPV to get a hold in the UK will be on April 21 at the Manchester Arena. The plan is certainly to carry the event live in the UK and also either on a premium channel or as PPV in the US as well. The anticipation is to hold four PPV events in the UK this year.” Sports Media, 15th February 2007
Thursday, 15th February 2007
HEADLINES OF THE DAY
Copa America Draw
Reigning champion Brazil will open defense of its Copa America title against Mexico and also face Ecuador and Chile in the first round of the South American nations championship. Wednesday's draw placed Colombia and Paraguay in Group C along with Argentina and the United States, while Peru and Uruguay join Bolivia and host Venezuela in Group A.
Brazil, which has won the Copa America seven times in addition to its five World Cup titles, will open against Mexico on June 27 in the southeastern city of Puerto Ordaz. The United States will open June 28 against Argentina, which shares the record of 14 Copa America titles with Uruguay. Venezuela plays the tournament opener against Bolivia on June 26.
The tournament will be played in nine Venezuelan cites and concludes July 15. The first two teams in each group and the best two of the third-place holders will advance to the second round. The semifinals are set for July 10-11 and the final match for July 15 in the western city of Maracaibo. Source: Associated Press on International Herald Tribune, Fox Sports, ESPN Soccernet, 14th February 2007
Bob Bradley, interim coach of the U.S. men's national soccer team, said he welcomes the chance to play world power Argentina in this summer's Copa America tournament in Venezuela. The U.S. will open against Argentina on June 28 in Maracaibo, one of nine Venezuelan cities being used to stage the 12-nation tournament, South America's equivalent of the European Championship.
Bradley said he regards the Gold Cup as the more important event, even though the Copa America is a better recognized and more highly regarded tournament worldwide. Bradley said that chances are the U.S. will field a stronger team in the Gold Cup, when the European players are more likely to be available, but said there could be some players who would take part in both tournaments. Source: Los Angeles Times, US Soccer, 14th February 2007
Mexico Bids to Host Early Copa America
Mexico has said that it is interested in hosting soccer’s Copa America in 2008, a year before the next tournament is due to take place. Julio Compean, the president of the Mexican soccer federation, said yesterday that next year would be more convenient than 2009, when there is a packed schedule of events, including the Fifa Confederations Cup, Concacaf Gold Cup and qualifying matches for the 2010 World Cup.
The Copa America involves South American national teams, plus Mexico and USA, and has been mainly staged in odd-numbered years. A policy of rotation has now been adopted and Argentina is due to host the next tournament, although no date has been set. Compean said that Mexico would apply to stage the event in 2011 if its bid for next year was unsuccessful. The official was speaking from Venezuela where he is attending the draw for this year’s Copa America, which runs from June 26 to July 15. Source: Sportcal, 14th February 2007
Trump Challenges Vince to a Battle at WrestleMania 23
Business moguls Donald Trump and Vince McMahon have escalated their war of words into a hairy situation. Donald Trump has challenged Vince McMahon® to a hair match at WrestleMania 23. The loser will have his head shaved. This titanic “Battle of the Billionaires” will take place at WrestleMania 23 in Detroit at Ford Field on April 1 live on Pay-Per-View.
The WWE Monday Night RAW® featuring Donald Trump’s WrestleMania 23 challenge to Vince McMahon will air this week during a special Thursday night edition of RAW on USA Network (8-10 pm ET/PT).
The two billionaires have been feuding for weeks. First, Trump criticized McMahon for a failed attempt at satire when he staged a faux match on RAW between Trump and Rosie O’Donnell using stand-ins. McMahon countered by offering his advice on how Trump could have better handled the Miss USA controversy and offered to appear on “The Apprentice” to help Donald boost its sagging ratings. Trump then upstaged McMahon on WWE Fan Appreciation Night by dumping thousands of dollars from an arena ceiling to the cheers of the fans in attendance, leading to this week’s face off that resulted in a full-fledge “Battle of the Billionaires” at WrestleMania 23.
This not the first time that Trump has been involved in WrestleMania. WrestleMania IV was hosted by Trump at the Atlantic City Convention Center and WrestleMania V was held at the Trump Plaza Hotel and Casino in Atlantic City. The real estate tycoon and reality show star also made a cameo appearance at WrestleMania XX held at Madison Square Garden. However, this will be the first time that The Donald sets foot in a WWE ring at WWE’s annual pop culture extravaganza. Source: WWE Press Release, 15th February 2007
WHAT’S THE BUZZ?
Ronald Susilo Rescues Sally Yeh
Celebrity Sally Yeh, who’s in Singapore for a concert, visited Singapore Badminton Hall this afternoon to play a game of badminton with the national shuttlers.
Ms Yeh, who is the ambassador for the Badminton World Federation, loves the game so much she plays 5 times a week. She loves the tactical and physical challenge of the game and finds working out in a gym boring. In a lighter moment, she let on that Jacky Chan claims he plays badminton, "but I don’t believe him", said the articulate Sally who switched between Mandarin, English and Cantonese throughout the interview.
Singapore’s Ronald Susilo paired up with Sally for her doubles workout at the Guillemard Road courts of the Singapore Badminton Association. Holding her favourite MP-100 badminton racket, she gamely gave her best, although Ronald gallantly retrieved a significant majority of the shots. The faster pace and more powerful smashes of the national athletes had Sally shrieking at times but she wanted a good workout and certainly got one this afternoon from Ronald and company.
Ronald represented ACS(I) in his secondary school days and has seen the bright lights of international events like the Aviva Open Singapore but for once, all the attention of the photographers were on Ms Yeh. But Ronald, unassuming and humble, was more than happy to just smile and retrieve all the shots. Source: Red Sports Blog, 12th February 2007, also blogged on Singapore Hen, 14th February 2007
INFO DIGEST
Info Box – Website Monthly Unique Visitors in USA*
Jan 2006 Dec 2006 Jan 2007
Total Internet: 170,797 174,199 175,559
1 Yahoo! Sites: 126,224 131,443 129,153
2 TimeWarner Net: 115,501 120,980 117,229
3 Microsoft Sites: 115,736 116,506 114,936
4 Google Sites: 94,016 112,845 113,434
5 eBay: 69,765 84,266 80,681
6 Fox Interactive: 13,375 73,273 74,831
7 Amazon Sites: 47,576 56,766 50,886
8 Ask Network: 43,362 55,572 49,103
9 Wikipedia Sites: 18,298 38,585 42,880
10 New York Times: 34,892 39,242 40,137
* In ‘000, for January 2006, December 2006 and January 2007
Source: Bear Stearns, comSCORE published on Rapid TV News
SPORTS SHORTS
* Guangdong Television plans to launch a second DTV pay channel for football matches soon, reports Sports Forum Weekly quoting GDTV sports director Lu Xiaofeng. GDTV will offer one dedicated channel for English Premier League matches and another for other matches. GDTV's current football channel shows all types of matches. GDTV will also offer non-Cantonese commentary of live football matches. GDTV subsidiary Tiansheng DTV won the China rights to English Premier League matches for US$50 million. Source: Pacific Epoch, 14th February 2007
* Sportfive has won the exclusive contract to market English Premier League TV rights to the Japanese market. A marketing agreement was signed with the FA Premier League for the next three seasons. This right gives Sportfive another feather in a line of extensive Asian rights. Sportfive has a wide-ranging Asian network of contacts and partnerships centred on its two branches in Kuala Lumpur and Singapore. Source: EUFootball.biz, Sportcal, 14th February 2007
* Foxtel will pay a Seven/Ten consortium $315.5 million over five years for the four live AFL games it will broadcast each week for 22 rounds. That computes to $717,045 per game. Compare that with the $42m per year Fox Sports pays the NRL direct for five live games a week over 25 rounds: $336,000 per game. Foxtel is paying much of the money to an organisation it loathes - Channel Seven, which, along with Ten, exercised a first and last option to secure the AFL rights for $780m. Source: The Sydney Morning Herald, 14th February 2007
* British channel Bravo’s new commissions for this year include Real Football Factories International, a factual documentary series produced by Zig Zag. The series follows British actor Danny Dyer as he travels Europe and South America to give viewers an exclusive insider view of some of the world’s fiercest and most bitter rivalries and football derbies. The series follows the success of Real Football Factories, which debuted last year. Real Football Factories International will have a run of eight one-hour episodes. Source: Worldscreen, 25th January 2007
* After the English Premier League signed a series of lucrative TV contracts, the disparity between the EPL and Football League will grow. Financial analysts said those clubs relegated from the Premier League this season could have a "financial meltdown." Henk Potts, an equity strategist with Barclays Wealth said any club not in the Premier League or Champions League is presented with a difficult position. "The gulf between the Premiership and lower leagues will get continually bigger. It's vital they don't let the situation deteriorate." Source: EUFootball.biz, 14th February 2007
MORE NEWS
India/Rights: I&B Issues Showcause to Nimbus
The Information & Broadcasting ministry issued a notice to Nimbus Communications to show cause why Neo Sports has failed to comply with provisions of the ordinance issued recently for mandatory sharing of live sports feed with Prasar Bharati. Nimbus has until tomorrow to reply, failing which the government is "free to take action as permissible under the ordinance". The showcause was issued on the orders of I&B minister Priya Ranjan Dasmunsi.
The ministry was irked that for the ongoing One-Day International series involving Sri Lanka, as well as the earlier one that pitted India against the West Indies, Doordashan has been forced to telecast the matches with a seven minute delayed feed. The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Ordinance 2007 states channels that fail to comply with the terms for sharing of live feeds with DD would have to pay a penalty up to Rs 10 million and also face possible revocation or suspension of license.
With the Guidelines coming in the ambit of the Ordinance, expected to be replaced by an Act of Parliament soon, the government has taken upon itself the powers to enforce them with retrospective effect. The guidelines are already the subject matter of two petitions in the Delhi High Court. The Delhi High Court had on 12 February refused to stay the operation of the ordinance asking private sports channels to share live feed of cricket and other sports events with the pubcaster. The matter will be further heard tomorrow. Source: Indian Television, 14th February 2007 See also related commentary by Somasekhar Sundaresan on the Business Standard, 15th February 2007
Asia/Business: AsiaSat Being Privatised
SES, amongst other moves, is divesting itself of its stake in Hong Kong-based AsiaSat (see story below). More information on the Asian portion of the deal has now emerged. As part of the SES agreement, General Electric Equity (GE) takes control over 34.1% of a company called Bowenvale, which controls 50% of AsiaSat. The other 50% controlling interest is held by China’s CITIC Group. Its new owners will privatise AsiaSat.
GE and the Chinese owners say they intend to “maintain” the existing AsiaSat business, and management. The total amount of cash required to effect the privatisation is approximately HK$2.23 billion, which will be financed from the existing resources of CITIC Group and GE Equity.
The offeror is a BVI incorporated company jointly owned by Able Star, an indirect wholly-owned subsidiary of CITIC Group, and GE Equity, an indirect wholly-owned subsidiary of General Electric Capital Corporation. The General Electric group is also proposing to acquire an interest in AsiaSat’s controlling shareholder. On completion of the acquisition and the privatisation, Asiasat will be jointly indirectly owned by CITIC Group and General Electrical Capital Corporation. Source: Rapid TV, Indian Television, 14th February 2007
Elsewhere/General: Sampras Plans September Return in Champions Tour
Pete Sampras' return to tennis will include a stop in North Carolina. 35-year-old Sampras will play in the Championships at the Palisades in Charlotte. That event, scheduled for September, is a part of the Outback Champions Series tour for players over 30. Sampras hasn't played tournament tennis since beating Andre Agassi to win the 2002 U.S. Open title.
Sampras had virtually disappeared from the game until he played a handful of exhibitions and had a stint with World Team Tennis last year. He'll be inducted into the International Tennis Hall of Fame in July. He's won a record 14 Grand Slam titles. Source: Associated Press featured on Sports Illustrated, Bob Larson’s Tennis News, WRAL.com, 14th February 2007
Elsewhere/General: Thai Flyweight Champion Aims to Extend Winning Run
Pongsaklek Wongjongkam, the WBC flyweight boxing champion, will attempt to win his 55th consecutive bout with a defence against South Korean fighter Choi Yo-sam on March 30. Pongsaklek, who has held the WBC crown since 2001, will launch a record 17th defence of a flyweight title from his homeland capital of Bangkok. On his previous outing the 30-year-old succeeded with a points decision over South African Monelisi Myekeni.
Meanwhile, another title fight due to take place next month, Shannon Briggs' defence of his WBO heavyweight title against Sultan Ibragimov, has been postponed after the champion was forced to withdraw with a bout of pneumonia. The match had been scheduled to take place at Madison Square Gardens in New York on March 10, but it is now expected that promoter Seminole Warriors Boxing will attempt to resurrect the contest later in the spring. Source: Sportcal, 14th February 2007
Global/New Media: Worldwide Consumer Broadband Penetration Sees Rapid Growth
The number of worldwide consumer broadband connections will reach 364 million by 2010, according to research done by Gartner. At the end of 2005, 12 per cent of households worldwide had a broadband connection and by 2010 Gartner estimates that figure will nearly double to reach 21 per cent. The mature market of Asia/Pacific and Japan will continue to account for nearly 40 per cent of worldwide broadband connections while three quarters of households will have broadband connections by 2010 compared with around half of North American and Western European households.
Strategies adopted by providers to maximise future revenues will vary from country to country according to the relative maturity and sophistication of the market. Gartner advised broadband service providers to reduce their focus in consumer markets on price cuts and to develop additional services within their offerings that address new user needs. This includes additional download bandwidth and storage for online music, photo storage, wireless connectivity, firewall protection and security services. Source: SDA Asia, 9th February 2007
ARTICLES, COMMENTS & OPINIONS
Superbikes: The Biaggi Factor
Can Troy Corser beat Troy Bayliss for the World Superbike title? The "battle of the Troys" will continue in 2007 with Bayliss returning on his 999 Ducati Superbike and Corser on the new Yamaha R1. It will certainly be one of the major rivalries to note in 2007 world championship racing. However the 800-pound elephant of World Superbike is neither Corser’s nor Bayliss’. It's Max Biaggi’s.
After a season of semi-forced unemployment, the Roman Emperor of GP racing returns to the world stage, albeit in the WSBK series. Regardless of personal feelings about the always-controversial Biaggi, he remains a popular sporting star in Europe and can only be viewed as a huge addition to the WSBK series. But can he win? And what will he do if he doesn't?
Long-time Biaggi watchers can sleep well—assured that he hasn't lost any of his arrogance or ego. Biaggi, as he has noted, isn't in racing to sell timeshares or make friends, he's here to win. He exuded this when he rode 250s for Aprilia and Honda, when he battled with Rossi and even when a certain American rider had him pinned by the neck to the side of a motorhome a few years ago.
Biaggi's lack of experience on Superbikes and a season off from racing can't be listed as anything but shortcomings in making a prediction about his 2007 season. But he is Max Biaggi—he's one of the fastest riders in the world, with credentials no one else in WSBK has. That said, the Suzuki WSBK bike—a championship-winning bike in 2005—was slightly off the pace in '06, in terms of matching Troy Bayliss and Ducati. With Biaggi signed as rider one can only hope that Suzuki is throwing all the WSBK coal on the fire in order to get him up front.
In the past, Biaggi hasn't hesitated to lash out at parties he feels are responsible when he is not winning. Which means that the first few races will probably give us a good indication of how Biaggi's season will play out. If he is quick out of the gate and wins a race or two, or makes it onto the podium, he'll have the confidence to contend for the title. If he struggles early, then look for fireworks in his garage. Dean Adams comments on Superbike Planet, 13th February 2007
Wednesday, 14th February 2007
HEADLINES OF THE DAY
Record Turnover Forecast for Copa America
Traffic Sports, the Brazil-based sports agency that is the distributor of television rights, sponsorship and advertising for soccer's Copa America competition, said yesterday that over $500 million will be ‘spent around’ this year's tournament. The sum relates to the sale of media rights, sponsorship, construction and refurbishment of stadia and the impact on tourism in Venezuela, this year's host country.
Julio Mariz, Traffic’s president, said that the sum, together with the presence of global sponsors, prove that Copa America is growing in importance, claiming that the tournament in Venezuela would be the best ever. The competition involves South American national teams, plus USA and Mexico, and has been mainly staged in odd-numbered years.
Traffic expects that cumulative viewing figures of nearly 4 billion people for the last Copa America in Peru will be surpassed. Traffic expects that the number of countries showing television coverage will grow to 170 from 160 three years ago. The presence of USA as an invited team and plans to broadcast the event in the country in three different languages (English, Spanish and Portuguese) could attract an audience of 800 million people in the Americas.
This will be the first time that more than one broadcaster will show the competition in USA. Univision/Telefutura, the Spanish-language broadcaster, has acquired live rights, while Fox Sports en Español, another Spanish-language broadcaster aimed at the country's Hispanic population, has acquired delayed rights. Agreements to broadcast the tournament in English and Portuguese are also expected.
The 2004 Copa America’s quarter-final match between Mexico and Brazil and the final between Brazil and Argentina generated what were at the time the biggest audiences ever in the Hispanic market in USA, according to Enrique Sanz, Traffic's vice president. Copa America will be the first event staged in South America to be entirely broadcast in high definition. The tournament is scheduled for June 26 to July 15. Source: Sportcal, 13th February 2007
INFO DIGEST
Info Box – Handheld Stats
* $30 billion worth of TV phones to be sold in 2010
* Global handset market to reach $250 billion by 2011
* $4.3 billion of PDAs sold in 2004, average selling price was $353
* 14% of Korean mobile phones support TV
* 18.8 million smartphones sold in Asia Pacific in 2006
* 281 million Taiwanese handsets to ship in 2008
* 50 million DVB-H phones to be sold by 2010
* Top smartphone vendors in Q1 2006: Nokia, RIM, Palm
* Worldwide handheld market shares: Palm - 33.8%, HP - 23.6%, Acer - 11.2%
Source: Info IQ
SPORTS SHORTS
* According to Hong Kong Office of the Telecommunications Authority (OFTA), Hong Kong leads the world with over 68% of households subscribing to broadband internet services by October 2006. Hong Kong also has the highest proliferation rate of IPTV at 33%. Total subscriber base has reached 700,000. Proliferation of mobile phones continues to rise in Hong Kong. There were 9.3 million users by end 2006, translating to a 133% proliferation. 3G wireless subscriber base accounted for 13% of these 9.3 million hooked on mobile phone services. Source: Entertainment Asia, 8th February 2007
* Singapore’s Football Association signed an MOU with Clube dos 13 comprising of top football clubs in Brazil which could see Brazilian teams play in Singapore for exhibition matches. The move is backed by the Singapore Sports Council. Details are still being worked out but the biggest Brazilian clubs are expected to take part in exhibition matches and clinics, and player and coach exchanges are on the cards. The aim is to see more Brazilian football on TV, as broadcasting rights and marketing opportunities are also being explored. Source: Sport Business, 7th February 2007
* Premiership champions Chelsea have announced plans for a tour of China in 2008. The Far East is seen as a potential growth market for the Chelsea brand and the club has a partnership with the Chinese Football Association to help develop the sport in the country. As part of the arrangement with Chelsea, the Chinese Olympic team have been in London this month but their visit has been marred by a mass brawl which forced the abandonment of a friendly against Queen’s Park Rangers last week. Source: Sportcal, 13th February 2007
* More than 20 broadcasters from around the world have already signed up the TV show Road to Beijing. The property, produced by IEC in Sports, was launched at Sportel Monaco in October of last year and a total of 93 episodes of the show will be produced, right up until the opening ceremony in Beijing 2008. The most recent deals have been put in place with VTV in Vietnam, Astro in Malaysia and CVM in Jamaica. Source: Sport Business, 26th January 2007
* Tennis Australia signed an exclusive four-year TV and internet deal with Eurosport for the rights to tennis’ Australian Open from 2008 to 2011. In addition to comprehensive television coverage, it will see matches on six courts streamed live over the internet via the Eurosport websites. In addition, Eurosport will be the distribution agent for the media rights across Europe. Eurosport is a significant partner for the sport of tennis, airing more than 1,100 hours of tennis from tournaments throughout the world in 2007. Source: Sport Business, 29th January 2007
* The Organisers for the XV Pan American Games Rio 2007 appointed Sportfive as its exclusive agent for the worldwide distribution of the media rights for this year’s Pan American Games. Sportfive will handle negotiations with broadcasters worldwide (excluding Brazil). The Pan American Games take place every four years, and are always held one year before the Olympic Games. Over more than 50 years, the Pan American Games never failed to occur. In Rio de Janeiro 5,500 athletes will represent 42 countries. Source: Sport Business, 2nd February 2007
* IEC in Sports expanded its relationship with the Swedish ATP Tournament, the Catella Swedish Open, in a new deal leading up to 2010. Under the new deal, IEC will take care of worldwide media distribution and all host broadcasting functions at the venue in Båstad. Under this newly signed contract with Catella Swedish Open IEC will also become one of the sponsor partners of the event which has been elected the best International Series event on the tour by the players no less than four times in a row. Source: Sport Business, 5th February 2007
* Sportel is adding more exhibition space to accommodate demand for stands at the 2007 Sportel America taking place from March 12-14, 2007 in Miami Beach. A third ballroom has been added for exhibitors at the Miami Beach Resort and Spa on Collins Avenue. David Tomatis, executive vice-president of Sportel, said: “We originally planned for about 50 stands but it looks as though we will need space for more than 60 stands. It’s a nice problem to have.” To date, top-level acquisitions executives have registered from 37 countries. Source: Sports Media, 13th February 2007
MORE NEWS
China/Rights: No More "Free Lunch" for Premier League Fans
China's 30 million English Premier League fans will no longer be able to watch live matches for free from next season. WinTV, run by Guangdong Provincial Television, have won the broadcasting rights for three years from September -- and it will charge viewers 188 yuan ($24) a month for the privilege. WinTV chief executive Song Zheng said "Let's say goodbye to free Premier League. No more free lunch in the future."
Chinese can currently watch games live on ESPN-Star, a joint venture of Walt Disney Co. and News Corp. , via a local cable TV broadcasting service which costs a fraction of the WinTV price. Chelsea are one of several Premier League clubs who have targeted the Chinese market and the English champions recently launched a Mandarin Web site.
Song, whose station has just 40,000 subscribers, said he was confident of winning over enough viewers among Chinese obsessed with football and the English top flight. WinTV will also provide coverage on mobile devices and the Internet along with live TV. "Fans can enjoy the games in various convenient ways," he said. "There's only one premise -- pay." Source: Yahoo! Sports, Sportcal, Variety, 13th February 2007
India/Rights: Cricket Rights Holder Told to Abide by Ordinance
Nimbus Communications, which holds the broadcasting rights to the Indian cricket team’s home matches, has been dealt a blow with the Delhi High Court refusing to suspend an ordinance which will force it to provide a live feed to state broadcaster Doordarshan. Nimbus had challenged the ordinance, describing it as ‘bad in law’, but its argument was yesterday rejected by the court, adjourning the matter until a further hearing on February 15.
The counsel for Doordarshan, claimed that the conditions to share coverage were laid out in the tender documents and known to Nimbus, which is paying $612 million for the rights to India’s games for four years until 2010. Prior to awarding to license to broadcasting matches in India, the government claimed to have informed the Board of Control for Cricket in India that whoever secured the rights would have to share them with Doordarshan and All India Radio.
The ordinance decrees that private broadcasters are obliged to share live and clean audio and video signals of their coverage of sports events of national importance with public service broadcasters. An additional solicitor representing the government said the Nimbus petition should be dismissed as it was not the fundamental right of Nimbus to monopolise the transmission of cricket matches and that it should abide by the contract and share the live feed.
During the recent one-day international series between India and the West Indies, Nimbus respected an interim court order to provide Doordarshan with coverage on a seven-minute delay and has continued to do so during the present series against Sri Lanka. However, it faces penalties ranging from a fine of Rs10 million ($227,000) to the suspension or loss of its broadcasting licence if it refuses to provide a live feed.
Under the terms of the ordinance, which takes retrospective effect from November 11, 2005, one-day internationals will have to be shown live by Doordarshan wherever they are played but only test matches played at home will be subject to this requirement, with highlights of away games sufficient. The consolation for rights holders is that they will receive 75 per cent of all the advertising revenue generated. Source: Sportcal, 13th February 2007
Elsewhere/Asia/Rights: National Lacrosse League Expands TV Deal
Eurosport2 has expanded its coverage of the National Lacrosse League (NLL) in a new deal running through 2008 – and added eight new territories to its global TV reach. NLL matches began airing in 42 countries throughout Europe on Eurosport2 last season, and coverage has now expanded to Australia, Indonesia, Myanmar, Maldives, Malaysia, Thailand, Philippines and Singapore on Eurosport World, bringing the total to fifty.
NLL coverage on Eurosport began in early January and includes a televised game of the week for seventeen weeks, consisting of fifteen regular season games, plus the All-Star Game and Championship Game. The broadcasts will air into the month of May. The NLL and Eurosport have announced the extension of their broadcast agreements through the 2008 season. Source: Sport Business, 13th February 2007
Malaysia/IPTV: M2Btv to Offer 60 On-Demand Channels to Malaysian Subscribers
Amaru, Inc announced today that its subsidiary, M2B World Asia Pacific Pte Ltd (M2B Asia), has secured the distribution of its M2Btv PONY set-top boxes into the Malaysian market through a non-exclusive three-year deal for 50,000 units signed with the media arm of Malaysia-listed MOL AccessPortal.
Starting this March, upper middle-income condominium residences in Kuala Lumpur will be able to access 60 channels of M2Btv on-demand content comprising international as well as localized programs. "Premium Malaysia" and "Platinum Malaysia" will consist of 10 channels of tailored Asian language programs including Korean, Chinese and Malaysian dramas, variety and sports, in particular, highly popular regional football matches.
In addition to on-demand entertainment content, M2Btv subscribers also enjoy face-to-face video calls and messaging at no additional charge, on-demand shopping, casual interactive games such as Sudoko, and karaoke. Source: 24-7 Press Releases, 13th February 2007
Global/Programming: Equestrian Programme Gaining Worldwide Exposure
A year on from launch, TV magazine programme FEI Equestrian World has enjoyed increasing exposure. The International Equestrian Federation (FEI) stated that the programme is being broadcast by BBC World, which can be seen in 270 million homes in more than 200 countries and territories. The monthly half-hour programme concentrates on the spirit of the sport , the lifestyle surrounding it and the FEI’s efforts in key areas such as development.
Over the last 12 months the programme has become the FEI’s most valued television product. In Asia FEI Equestrian World is being aired on CNBC Asia, ESPN Star Sports and ESPN International in Japan. The programme is gaining exposure in Latin America, Australia, New Zealand, Africa and Canada on ESPN International. FEI Equestrian World is distributed worldwide by Trans World International (TWI). Source: Sports Media, 13th February 2007
Elsewhere/General: Liverpool Set To Look East
Liverpool will be expected to play promotional friendlies in Japan and China now the club has been taken over by US sports moguls Tom Hicks and George Gillett. Chief executive Rick Parry is likely to be told the “brand” needs to be promoted more in the Far East. In a National Post interview in Canada, Gillett has been expanding his theory of how to get the best from the £450 million total investment he and Hicks have made.
Gillett made it clear he sees Liverpool as one quarter of a four-sport franchise around the globe, taking in the Dallas Stars (ice hockey) and Texas Rangers (baseball) teams Hicks owns and his own Montreal Canadiens ice hockey club, plus motor racing. Gillett said: “We have the Texas Rangers in baseball, the Dallas Stars, the Montreal Canadiens, Liverpool and our family’s involvement with NASCAR. You’ve got four unbelievably popular sports with growing international interest.”
“If we get a hard-hitting marketing team that could provide potential sponsors with that array of opportunity, that’s something I don’t think has ever been put together before. There’s a unique opportunity because the market is demanding it. If you look at the new sponsors in the Premiership within the past five years, more than a third of them are from Asia.” Source: Football Insider, EUFootball.biz, 13th February 2007
Elsewhere/General: Quinn Appointed Head Of SUM
Doug Quinn, one of the foremost executives in American sport, has been named president of Soccer United Marketing (SUM), the commercial arm of Major League Soccer (MLS). The appointment completes the merging of Soccer United Marketing's two divisions - SUM Enterprises and SUM International. Quinn, formerly president of SUM Enterprises, will now oversee all operations of Soccer United Marketing.
Quinn was part of the SUM executive team that secured long-term national television agreements for MLS with ABC/ESPN, Univision, Fox Soccer Channel and HDNet. Most recently, he oversaw the creation of SuperLiga, the tournament between MLS and Mexico's First Division clubs that will begin in July. The integration of SUM Enterprises and SUM International into one cohesive organisation will allow the MLS to strategically manage and grow the business in a global marketplace. Source: Football Insider, 13th February 2007
Elsewhere/General: Spanish Clubs Top Football Money League
The Deloitte Football Money League shows the total revenue of the world’s Top 20 clubs is now over €3.3 billion with Real Madrid ahead of the competition with total revenue of £202 million (€ 292 million). The report shows Spain has the two biggest football clubs in the world based on revenue, with Barcelona joining their Spanish rivals in the top two. England has eight clubs in top 20.
Real Madrid retained the number one place it gained last year and Barcelona is this year’s biggest mover, up four places to second. Manchester United, which had headed the first eight editions of the Deloitte Football Money League, is the highest of eight Premiership clubs in the top 20. Analysis in the Football Money League is based on the latest financial information for the 2005/06 season.
The two Spanish clubs have had contrasting strategies, with Real focusing on driving commercial revenue from recruiting Galactico players and Barcelona having a more balanced revenue profile. With both the Spanish giants predicting revenues of over €300m in 2006/07, the same two clubs may stay at the top of the Money League in 2006/07. The total revenue of the Top 20 clubs was over €3.3 billion in 2005/06.
The global Top 20 is entirely populated by European clubs, with English clubs occupying eight of the positions, Italian clubs four positions, three from Germany, two from Spain, and one club from each of Scotland, France and Portugal. England’s highest representative is Manchester United, which slipped to fourth place this year.
Developments in the broadcast market have given some pointers to the composition of future Football Money Leagues. Revenue from the new French broadcasting deal has seen Olympique Lyonnais move up to their highest Money League position of 11th, while Real Madrid and Barcelona’s announcement of new deals should see them challenge at the top of the table in coming years. The Premier League’s recently concluded broadcasting deals may see English teams contribute half of the top 20 clubs in 2007/08. Source: Sport Business, 8th February 2007
ARTICLES, COMMENTS & OPINIONS
How Nascar Plans to Get Back on the Fast Track
Mark Martin, after winning a Nascar Craftsman Truck Series race in a car sponsored by Scott's Turf Builder, did "doughnuts" in his car that ripped up the infield lawn and then said on live TV, "That grass is gonna need some Scott's Turf Builder."
When last we left Nascar, the racing league was crowning 2006 champion Jimmie Johnson after a season in which TV ratings for 31 of the 36 Nextel Cup races were down from the previous year, and several races failed to sell out at the track. Even Nascar's 10-race "playoff," the Chase for the Cup, was down a total of 10% in TV ratings from the previous year. So every marketing step this year is geared toward finding a balance between pleasing Nascar's longtime fan base and attracting new fans.
The racing league is poised to take advantage of an unprecedented series of TV and marketing changes and is eager to prove 2006 was just a pit stop after years of meteoric growth. The changes include a new eight-year, $4.48 billion TV deal in which ESPN/ABC replaces NBC as one of two national broadcast partners (Fox is the other, while cable's TNT will also broadcast six races); the addition of Formula 1 driver Juan Pablo Montoya to the circuit, giving Nascar a chance to market to Hispanic fans; and the presence of Toyota, crashing the American automakers' formerly exclusive domain in Nascar.
HotPass is a creation that each race week will feature a dedicated channel for five selected drivers on DirecTV. HotPass creates yet another venue for Nascar's sponsors, many of which will pony up $18 million just to field a driver for a full 36 races this year and splash the company name across a uniform and the hood of a car. It's certainly a worthwhile venture. Nascar's sponsors received a total of $6.6 billion in TV exposure last year.
In addition, the infield-shredding (and sponsor-savvy) Mr. Martin pointed out the importance of having ESPN back in the intricate Nascar ecosystem. "There is a relationship all the way around between Nascar and the fans and the sponsors and television," Mr. Martin said. "That's why I'm glad ESPN is onboard again. That's like having an old friend back in your life." Rich Thomaselli comments on AdAge, 12th February 2007