Category: Sports

  • Are we headed for a sports broadcasting ‘Duopoly’ in India?

    Are we headed for a sports broadcasting ‘Duopoly’ in India?

    As a nation, India has evolved significantly in sports broadcasting. With unbounded technological progress nipping away at our heels, a digital evolution was a long time coming, especially in the Indian subcontinent. The sporting world has all its eyes on the recent SPN̶̶-ZEEL deal, an acquisition that will leverage, consolidate and crucially enhance the relationship between right-holder, broadcaster and the fan. Truly, India has launched itself to transforming into a sporting nation to reckon with. 

    Content and consolidation will drive and scale up distribution and reach for both – network(s) within India and the subcontinent. 

    This acquisition is a major win and a penetration peak for SPN. It can now break into hitherto untapped territories and consolidate content from a far-‘reaching’ perspective. The world is in a frenzied state of “digital data drive” and this drive is only going to escalate. Our broadcasting output is changing every day. Last two decades has seen Single TV households changing their viewing environs from terrestrial TV to cable and satellite. The big daddies of the DTH universe are all moving towards consolidating the reality of second and third screen-driven ecosystems.

    Taking stock of things, Star India has the telecast rights of BCCI, ICC, Cricket Australia, English Cricket Board, Formula 1, EPL and tennis Grand Slams like Wimbledon and the French Open. In addition to this, Star has significant rights to the local sports leagues like ISL, PKL, PBL, HIL and IPTL. 

    SPN, on the other hand, proudly holds the rights to FIFA, UEFA, Euro, NBA and UFC on the international circuit. Through this landmark deal with TEN Sports, SPN now has an open-door all-access pass to the media rights of numerous golfing events as well as the rights to the cricket boards of African countries, Sri Lanka, West Indies and Pakistan. In the tennis world, they own the first and the last Grand Slams of the year – Australian Open and the US open, respectively. However, in India, IPL remains their biggest marquee acquisition despite being up for renewal post the 2017 season.

    The sports broadcast gladiatorial arena thus will soon witness a veritable battle between these two. With two key players running neck and neck towards the finish line, it’s a race that changes the environment and brings about a scale-up in distribution and revenue.

    The network that makes itself more accessible, more consumable and creates, builds and sustains real-time conversations while enhancing fan experience will emerge as the monarch in a currently duopolistic condition. The focus on Digital India, the technological and revenue-right prowess of the two key network players should reveal some of the answers in the times to come. Data will play a pivotal role in making sports content more consumable and build real-time conversations around enhancing fan experience and build higher level stickiness and relevance. 

    This phenomenon is aptly called ‘Datagiri’ – big data is the big dada, and it will outpace the traditional broadcast model soon enough. With live sports streaming and on-the-spot digital consumption through various media platforms such as Hotstar and Sony Liv may look to rise to the top with the Usain Bolt speed, a certain aggression and a prepared relevantly stronger digital interface.

    The digital ecosystem experiences an amplification of connections at an exponential rate. Every day, there is a new surge in distribution and a revamping of the “traditional” model since consumers are establishing newer ways and means of connecting with their favorite sports. After all, the name of the game is “enhanced fan experience”. The Rio Olympics displayed this very digital omnipresence – it was up to the fans to consume sports data, whenever, however, and in whichever way suited them best. The power was at the consumer’s fingertips.

    Some questions though surface strongly — Will data-driven content-providers compete with the traditional broadcast platforms? Will telecom players drive and build the next billion sports consumers? Will the definition of the 1st screen economy change?  These are just some of the questions that will be answered in times to come. 

    In summary, it promises an exciting time for the Sports Fan. The sports fan will share its limelight with no one; he or she will be at the centrestage of the best sporting live action. It will be served on a platter for his or her gluttonous consumption – peppered with analytic appetisers and tantalizing trivia, thus cinching a momentous union between networks, right-holders and sports fans. 

    (The author is the business head of ESP Properties. The views expressed are entirely his own and Indiantelevision.com does not subscribe to them)
     

  • Are we headed for a sports broadcasting ‘Duopoly’ in India?

    Are we headed for a sports broadcasting ‘Duopoly’ in India?

    As a nation, India has evolved significantly in sports broadcasting. With unbounded technological progress nipping away at our heels, a digital evolution was a long time coming, especially in the Indian subcontinent. The sporting world has all its eyes on the recent SPN̶̶-ZEEL deal, an acquisition that will leverage, consolidate and crucially enhance the relationship between right-holder, broadcaster and the fan. Truly, India has launched itself to transforming into a sporting nation to reckon with. 

    Content and consolidation will drive and scale up distribution and reach for both – network(s) within India and the subcontinent. 

    This acquisition is a major win and a penetration peak for SPN. It can now break into hitherto untapped territories and consolidate content from a far-‘reaching’ perspective. The world is in a frenzied state of “digital data drive” and this drive is only going to escalate. Our broadcasting output is changing every day. Last two decades has seen Single TV households changing their viewing environs from terrestrial TV to cable and satellite. The big daddies of the DTH universe are all moving towards consolidating the reality of second and third screen-driven ecosystems.

    Taking stock of things, Star India has the telecast rights of BCCI, ICC, Cricket Australia, English Cricket Board, Formula 1, EPL and tennis Grand Slams like Wimbledon and the French Open. In addition to this, Star has significant rights to the local sports leagues like ISL, PKL, PBL, HIL and IPTL. 

    SPN, on the other hand, proudly holds the rights to FIFA, UEFA, Euro, NBA and UFC on the international circuit. Through this landmark deal with TEN Sports, SPN now has an open-door all-access pass to the media rights of numerous golfing events as well as the rights to the cricket boards of African countries, Sri Lanka, West Indies and Pakistan. In the tennis world, they own the first and the last Grand Slams of the year – Australian Open and the US open, respectively. However, in India, IPL remains their biggest marquee acquisition despite being up for renewal post the 2017 season.

    The sports broadcast gladiatorial arena thus will soon witness a veritable battle between these two. With two key players running neck and neck towards the finish line, it’s a race that changes the environment and brings about a scale-up in distribution and revenue.

    The network that makes itself more accessible, more consumable and creates, builds and sustains real-time conversations while enhancing fan experience will emerge as the monarch in a currently duopolistic condition. The focus on Digital India, the technological and revenue-right prowess of the two key network players should reveal some of the answers in the times to come. Data will play a pivotal role in making sports content more consumable and build real-time conversations around enhancing fan experience and build higher level stickiness and relevance. 

    This phenomenon is aptly called ‘Datagiri’ – big data is the big dada, and it will outpace the traditional broadcast model soon enough. With live sports streaming and on-the-spot digital consumption through various media platforms such as Hotstar and Sony Liv may look to rise to the top with the Usain Bolt speed, a certain aggression and a prepared relevantly stronger digital interface.

    The digital ecosystem experiences an amplification of connections at an exponential rate. Every day, there is a new surge in distribution and a revamping of the “traditional” model since consumers are establishing newer ways and means of connecting with their favorite sports. After all, the name of the game is “enhanced fan experience”. The Rio Olympics displayed this very digital omnipresence – it was up to the fans to consume sports data, whenever, however, and in whichever way suited them best. The power was at the consumer’s fingertips.

    Some questions though surface strongly — Will data-driven content-providers compete with the traditional broadcast platforms? Will telecom players drive and build the next billion sports consumers? Will the definition of the 1st screen economy change?  These are just some of the questions that will be answered in times to come. 

    In summary, it promises an exciting time for the Sports Fan. The sports fan will share its limelight with no one; he or she will be at the centrestage of the best sporting live action. It will be served on a platter for his or her gluttonous consumption – peppered with analytic appetisers and tantalizing trivia, thus cinching a momentous union between networks, right-holders and sports fans. 

    (The author is the business head of ESP Properties. The views expressed are entirely his own and Indiantelevision.com does not subscribe to them)
     

  • Sony Pictures to acquire Ten Sports from Zee

    Sony Pictures to acquire Ten Sports from Zee

    MUMBAI: Sony Pictures Networks India (SPN) today announced that SPN and its affiliates have entered into definitive agreements to acquire TEN Sports Network from Zee Entertainment Enterprises Limited (ZEE) and its subsidiaries for 385 million U.S. dollars. Completion of the acquisition is subject to regulatory approval. The acquisition will add South Asia’s leading sports network to SPN’s existing portfolio of channels.

    The TEN Sports channels being acquired include TEN 1, TEN 1 HD, TEN 2, TEN 3, TEN Golf HD, TEN Cricket, TEN Sports that operate in several countries including the Indian sub-continent, Maldives, Singapore, Hong Kong, Middle East, Caribbean.

    TEN Sports holds broadcast rights to major cricket boards (South Africa, Pakistan, Sri Lanka, West Indies and Zimbabwe). In addition, Ten Sports holds rights to wrestling (WWE), football (UEFA Champions League, UEFA Europa League, French League, English Football League Cup), tennis (WTA Events, ATP events), golf (European Tour, Asian Tour, Ryder Cup, US PGA Championship, LPGA Tour, Professional Golf Tour of India and Golf Channel Block), athletics (Asian Games, Commonwealth Games), motor sports (Moto GP) and cycling (Tour de France) events.

    Long a television destination for sports fans, SPN sports properties include cricket (IPL, CPL, Ram Slam), football (FIFA 2018 World Cup Russia, UEFA Euro 2016, FIFA World Events including FIFA U-17 World Cup 2017 in India, European and South American Qualifiers for FIFA WC 2018, FIFA Confederations Cup, LaLiga, Serie A, FA Cup, Copa America Centenario, International Champions Cup), tennis (Australian Open, ATP 1000 and 500 World Tour Events, Champions Tennis League), fight sports (TNA, UFC, Pro Wrestling League), basketball (NBA) as well as NFL and Premier Futsal.

    Comment from NP Singh, CEO, Sony Pictures Networks India

    “I welcome TEN Sports to the Sony family. The acquisition of TEN Sports Network will strengthen SPN’s offering for viewers of cricket, football and fight sports, complementing our existing portfolio of international and domestic sporting properties. It also aptly demonstrates SPN’s commitment to providing a broad range of sporting entertainment to fans across India and the sub-continent.”

    Comment from Andy Kaplan, President, Worldwide Networks, Sony Pictures Television

    “India has been a strong driver of Sony Pictures’ growing networks business for two decades, and sports continue to play a significant role in that growth. The acquisition of TEN Sports, following the launch of SONY ESPN channels, will mean that our Indian networks would reach over 800 million viewers and broadcast many of the most popular and prestigious sporting events in the world.”

    Comment from Punit Goenka, Managing Director, Zee Entertainment Enterprises Limited (ZEE)

    “This is a landmark deal for ZEE and a step towards a strategic portfolio shuffle as we grow our general entertainment business both in the domestic and overseas markets. While we have grown our sports business over the last 10 years through acquisition of content at competitive prices, our focus now is on transforming ourselves into an all-round media and content company, comprising of five verticals, viz. broadcast, digital, films, live events, and international business; and we continue to move rapidly towards our set business goals. While I have always been proud of our sports business, I strongly believe that Sony will add more value to it by taking it to even greater heights. I wish them all the success.”

  • Sony Pictures to acquire Ten Sports from Zee

    Sony Pictures to acquire Ten Sports from Zee

    MUMBAI: Sony Pictures Networks India (SPN) today announced that SPN and its affiliates have entered into definitive agreements to acquire TEN Sports Network from Zee Entertainment Enterprises Limited (ZEE) and its subsidiaries for 385 million U.S. dollars. Completion of the acquisition is subject to regulatory approval. The acquisition will add South Asia’s leading sports network to SPN’s existing portfolio of channels.

    The TEN Sports channels being acquired include TEN 1, TEN 1 HD, TEN 2, TEN 3, TEN Golf HD, TEN Cricket, TEN Sports that operate in several countries including the Indian sub-continent, Maldives, Singapore, Hong Kong, Middle East, Caribbean.

    TEN Sports holds broadcast rights to major cricket boards (South Africa, Pakistan, Sri Lanka, West Indies and Zimbabwe). In addition, Ten Sports holds rights to wrestling (WWE), football (UEFA Champions League, UEFA Europa League, French League, English Football League Cup), tennis (WTA Events, ATP events), golf (European Tour, Asian Tour, Ryder Cup, US PGA Championship, LPGA Tour, Professional Golf Tour of India and Golf Channel Block), athletics (Asian Games, Commonwealth Games), motor sports (Moto GP) and cycling (Tour de France) events.

    Long a television destination for sports fans, SPN sports properties include cricket (IPL, CPL, Ram Slam), football (FIFA 2018 World Cup Russia, UEFA Euro 2016, FIFA World Events including FIFA U-17 World Cup 2017 in India, European and South American Qualifiers for FIFA WC 2018, FIFA Confederations Cup, LaLiga, Serie A, FA Cup, Copa America Centenario, International Champions Cup), tennis (Australian Open, ATP 1000 and 500 World Tour Events, Champions Tennis League), fight sports (TNA, UFC, Pro Wrestling League), basketball (NBA) as well as NFL and Premier Futsal.

    Comment from NP Singh, CEO, Sony Pictures Networks India

    “I welcome TEN Sports to the Sony family. The acquisition of TEN Sports Network will strengthen SPN’s offering for viewers of cricket, football and fight sports, complementing our existing portfolio of international and domestic sporting properties. It also aptly demonstrates SPN’s commitment to providing a broad range of sporting entertainment to fans across India and the sub-continent.”

    Comment from Andy Kaplan, President, Worldwide Networks, Sony Pictures Television

    “India has been a strong driver of Sony Pictures’ growing networks business for two decades, and sports continue to play a significant role in that growth. The acquisition of TEN Sports, following the launch of SONY ESPN channels, will mean that our Indian networks would reach over 800 million viewers and broadcast many of the most popular and prestigious sporting events in the world.”

    Comment from Punit Goenka, Managing Director, Zee Entertainment Enterprises Limited (ZEE)

    “This is a landmark deal for ZEE and a step towards a strategic portfolio shuffle as we grow our general entertainment business both in the domestic and overseas markets. While we have grown our sports business over the last 10 years through acquisition of content at competitive prices, our focus now is on transforming ourselves into an all-round media and content company, comprising of five verticals, viz. broadcast, digital, films, live events, and international business; and we continue to move rapidly towards our set business goals. While I have always been proud of our sports business, I strongly believe that Sony will add more value to it by taking it to even greater heights. I wish them all the success.”

  • ZEEL files Ten Sports sale details with BSE

    ZEEL files Ten Sports sale details with BSE

    MUMBAI: Further to the announcement of the acquisition of its Ten Sports Network by Sony Pictures Networks India, Zee Entertainment Enterprises, issued a disclosure report to the Bombay Stock Exchange (BSE) giving further details of the deal.

    ZEEL stated that the sports broadcasting is housed under two companies: Taj TV Ltd, Mauritius and Taj Television (India) Pvt Ltd. The first is a step down foreign subsidiary which is involved in the broadcasting and distribution of sports content through the TEN brand of TV channels owned by it and has broadcasting rights to various sports events, including those from five cricket boards. Taj Television, a domestic wholly owned subsidiary, acts as an exclusive agent in India for down-linking, marketing, distributing and ad sales of the channels owned by Taj TV.

    It further elaborated that the sports broadcasting business contributed Rs 631 crore (net of inter company transactions), constituting 10.79 per cent of the consolidated revenue and a loss of Rs 37.20 crore in FY2015-2016.

    The sale deed involves SPN India, picking up ZEEL’s entire stake in the Indian subsidiary. Taj TV Mauritius would on a slump sale basis be selling its sports broadcasting business to Aqua Holdings Investments, Mauritius and MSM Asia Ltd, UK –affiliates of Sony Pictures Networks.

    The company states that the entire transaction would take four to five months to be completed and is subject to regulatory approvals and also certain precedent conditions being fulfilled.

  • ZEEL files Ten Sports sale details with BSE

    ZEEL files Ten Sports sale details with BSE

    MUMBAI: Further to the announcement of the acquisition of its Ten Sports Network by Sony Pictures Networks India, Zee Entertainment Enterprises, issued a disclosure report to the Bombay Stock Exchange (BSE) giving further details of the deal.

    ZEEL stated that the sports broadcasting is housed under two companies: Taj TV Ltd, Mauritius and Taj Television (India) Pvt Ltd. The first is a step down foreign subsidiary which is involved in the broadcasting and distribution of sports content through the TEN brand of TV channels owned by it and has broadcasting rights to various sports events, including those from five cricket boards. Taj Television, a domestic wholly owned subsidiary, acts as an exclusive agent in India for down-linking, marketing, distributing and ad sales of the channels owned by Taj TV.

    It further elaborated that the sports broadcasting business contributed Rs 631 crore (net of inter company transactions), constituting 10.79 per cent of the consolidated revenue and a loss of Rs 37.20 crore in FY2015-2016.

    The sale deed involves SPN India, picking up ZEEL’s entire stake in the Indian subsidiary. Taj TV Mauritius would on a slump sale basis be selling its sports broadcasting business to Aqua Holdings Investments, Mauritius and MSM Asia Ltd, UK –affiliates of Sony Pictures Networks.

    The company states that the entire transaction would take four to five months to be completed and is subject to regulatory approvals and also certain precedent conditions being fulfilled.

  • Star’s multi-screen Rio 2016 coverage gets thumbs up from viewers

    Star’s multi-screen Rio 2016 coverage gets thumbs up from viewers

    MUMBAI: With 191 million viewers tuning into watch the just concluded Rio Olympics in Brazil and every two out of three doing so on Star Sports channels, coupled with nearly 70 percent of the reach of television in affluent homes in the top 6 metros via digital platform Hotstar, it has been a gold medal performance from Star India.

    This statement from Star India today when the media world is talking about a over US$ 350 million buyout of TEN Sports by Sony Pictures Network India, is important from the point of view of sports broadcasting in India. SPNI also runs co-branded sports channels with ESPN.

    “For us, it is a matter of pride that Star Sports is the destination network for multi sports consumption in the country. Our endeavour to build a multi sports ecosystem is being rewarded with audience interest and attention not just in cricket but even in other sports…Star India’s unprecedented reach made the Rio 2016 Olympic Games the most epic sporting event in the history of viewing sports in India,” an official statement from Star quoted Star Sports CEO Nitin Kukreja as saying.

    The immersive and data rich experience, backed by powerful visuals and marketing, has once again created history in terms of user delight, translating into the highest ever viewership of Olympics in India, Star claimed.

    “As the official television broadcaster in India (the Olympics feed were shared with pubcaster Doordarshan by Star under stipulated regulations), Star Sports brought the game alive and the Rio 2016 Olympic Games was bigger than ever before with an unprecedented 191 million viewers (as per BARC data; CS 4+ Urban) tuning in to watch the games,” the Star statement stated, highlighting that two out of every three viewers tuned in to watch the mega event on the Star Sports network, thus “re-establishing its credentials as one of the leading sports networks in India capable of delivering national impact across geographies and demographics.”

    Hotstar, the exclusive digital streaming partner in India for the Rio Games, providing round the clock coverage of the games with 14 live streams for sports fans, attracted nearly “70 per cent of the reach of television in affluent homes in the top 6 metros” delivering an incremental reach of almost 10 million viewers in India with viewers streaming almost an hour of the Games during the two weeks, propelling Olympics into the top brackets of sporting events covered online, Star said.

    The standout highlight of the tournament was when India came together to watch the thrilling badminton women’s singles final between PV Sindhu and Spain’s Carolina Marin.

    The gruelling gold medal encounter garnered 17.2million impressions (again BARC data), making it the highest viewed TV programme on that day. It was also the highest rated non-cricket game on any sports network since the inception of BARC. On Hotstar, more than 5 million viewers tuned in to watch the match live, unprecedented for any event outside of international cricket, Star statement added.

    According to Hotstar CEO Ajit Moha, “As the world celebrated its sports champions, Hotstar enabled an experience that was unprecedented for sports fans not just in India but anywhere in the world: free access to almost every single moment of the Olympics fans with big moments being curated and showcased on the platform round the clock. Olympics allowed us to showcase our mission of building India’s most exciting content destination on demand.”

    With Star Sports channels showing various disciplines of Rio Games, including one channel dedicated to Hindi commentary, Star also undertook a massive campaign #IsseBadaKuchNahi ( nothing is bigger than this) focused on the stature of the Olympics as well as the medal prospects from India.

    Star Sports, which has some premier sporting properties in its portfolio, has been creating a multi-sport ecosystem in India. In 2016, from the ICC World T20 to Seasons 3 & 4 of Pro Kabaddi to the recently concluded Olympics, with each of these events delivering in excess of 175 million audiences at an all-India level (Source: BARC). Further in the year ahead, Star Sports has a multi-sport calendar coming up, consisting of 2016 Kabaddi World Cup in Ahmedabad, the international cricket season at home for team India and the Indian Super League.

    Hotstar, having already established itself as the premier digital sports destination in India, offered the widest possible coverage of all 42 sports with over 3000 hours of live coverage on the web, and 14+ streams running on the app all day. Its communication was focused on the massive choice it offered sports fans, with access to every moment of the Olympics and the convenience of watching live games or catching up on big performances any time of the day.

  • Star’s multi-screen Rio 2016 coverage gets thumbs up from viewers

    Star’s multi-screen Rio 2016 coverage gets thumbs up from viewers

    MUMBAI: With 191 million viewers tuning into watch the just concluded Rio Olympics in Brazil and every two out of three doing so on Star Sports channels, coupled with nearly 70 percent of the reach of television in affluent homes in the top 6 metros via digital platform Hotstar, it has been a gold medal performance from Star India.

    This statement from Star India today when the media world is talking about a over US$ 350 million buyout of TEN Sports by Sony Pictures Network India, is important from the point of view of sports broadcasting in India. SPNI also runs co-branded sports channels with ESPN.

    “For us, it is a matter of pride that Star Sports is the destination network for multi sports consumption in the country. Our endeavour to build a multi sports ecosystem is being rewarded with audience interest and attention not just in cricket but even in other sports…Star India’s unprecedented reach made the Rio 2016 Olympic Games the most epic sporting event in the history of viewing sports in India,” an official statement from Star quoted Star Sports CEO Nitin Kukreja as saying.

    The immersive and data rich experience, backed by powerful visuals and marketing, has once again created history in terms of user delight, translating into the highest ever viewership of Olympics in India, Star claimed.

    “As the official television broadcaster in India (the Olympics feed were shared with pubcaster Doordarshan by Star under stipulated regulations), Star Sports brought the game alive and the Rio 2016 Olympic Games was bigger than ever before with an unprecedented 191 million viewers (as per BARC data; CS 4+ Urban) tuning in to watch the games,” the Star statement stated, highlighting that two out of every three viewers tuned in to watch the mega event on the Star Sports network, thus “re-establishing its credentials as one of the leading sports networks in India capable of delivering national impact across geographies and demographics.”

    Hotstar, the exclusive digital streaming partner in India for the Rio Games, providing round the clock coverage of the games with 14 live streams for sports fans, attracted nearly “70 per cent of the reach of television in affluent homes in the top 6 metros” delivering an incremental reach of almost 10 million viewers in India with viewers streaming almost an hour of the Games during the two weeks, propelling Olympics into the top brackets of sporting events covered online, Star said.

    The standout highlight of the tournament was when India came together to watch the thrilling badminton women’s singles final between PV Sindhu and Spain’s Carolina Marin.

    The gruelling gold medal encounter garnered 17.2million impressions (again BARC data), making it the highest viewed TV programme on that day. It was also the highest rated non-cricket game on any sports network since the inception of BARC. On Hotstar, more than 5 million viewers tuned in to watch the match live, unprecedented for any event outside of international cricket, Star statement added.

    According to Hotstar CEO Ajit Moha, “As the world celebrated its sports champions, Hotstar enabled an experience that was unprecedented for sports fans not just in India but anywhere in the world: free access to almost every single moment of the Olympics fans with big moments being curated and showcased on the platform round the clock. Olympics allowed us to showcase our mission of building India’s most exciting content destination on demand.”

    With Star Sports channels showing various disciplines of Rio Games, including one channel dedicated to Hindi commentary, Star also undertook a massive campaign #IsseBadaKuchNahi ( nothing is bigger than this) focused on the stature of the Olympics as well as the medal prospects from India.

    Star Sports, which has some premier sporting properties in its portfolio, has been creating a multi-sport ecosystem in India. In 2016, from the ICC World T20 to Seasons 3 & 4 of Pro Kabaddi to the recently concluded Olympics, with each of these events delivering in excess of 175 million audiences at an all-India level (Source: BARC). Further in the year ahead, Star Sports has a multi-sport calendar coming up, consisting of 2016 Kabaddi World Cup in Ahmedabad, the international cricket season at home for team India and the Indian Super League.

    Hotstar, having already established itself as the premier digital sports destination in India, offered the widest possible coverage of all 42 sports with over 3000 hours of live coverage on the web, and 14+ streams running on the app all day. Its communication was focused on the massive choice it offered sports fans, with access to every moment of the Olympics and the convenience of watching live games or catching up on big performances any time of the day.

  • Ten Sports proposed sale: Biz acumen trumps emotions

    Ten Sports proposed sale: Biz acumen trumps emotions

    NEW DELHI: In business, emotions have importance, but they have to be weighed against the larger interest (of the company). This was Zee boss Subhash Chandra telling an eager journalist on the media beat for a business newspaper in the fag end of 90s after having just bought out Rupert Murdoch from three joint ventures in a cash-and-stock deal worth few shades less than $ 300 million.

    When an announcement came on 29 August 2016, almost 16 years and mega growth later, on the Bombay Stock Exchange from Zee Entertainment Enterprises Ltd (ZEEL) that in order to maximize shareholders returns, the company, while exploring various strategic options to start or exit businesses, is in an advanced stage of negotiations to sell off its sports business (carried out under the Ten Sports brand), it generated lot of hiccups all around. This despite the fact that the rumor about an impending sale had been going around for quite some time now.

    But to indiantelevision.com shedding off of a business that could — and is partially doing so, financial analysts opine — turn the company’s bottomline scarlet is classic Chandra. A risk taker to the core, he is equally quick to invest as he is to divest. Of course, at a price that makes sense. He has designed his group to be very bottom line focused and cut losses whenever things are not looking good.

    Though it could be argued that this time round the final call to exit the sports business in the face of rising content acquisition costs and inadequate proportionate revenues (India’s slow digitisation process has been hampering real-time growth in subscription earnings) must have been taken by Chandra’s eldest son helming ZEEL, Punit Goenka, a true chip off the old block.

    The speculated price for Ten Sports’ impending sale, acquired from its Dubai-based owner Abdul Rahman Bukhatir’s Taj Group in 2006, is around Rs 2,000 crore. The prospective buyer: Japan’s Sony group’s Sony Pictures Networks India (SPN India), presently headquartered in the US with its APAC head office in Singapore.

    If the Indian Premier League (IPL) cricket is now a phenomenon to reckon with in world sports, being compared with the likes of the money-spinning NBA, tennis and golf leagues, it had an ancestor in ICL (Indian Cricket League).

    Conceptualized by Zee with Chandra’s active backing, ICL in the mid-2000 era couldn’t flower like IPL, a property of the Indian cricket board. Reason: Zee and Chandra were on the wrong side of the Indian cricket bosses who refused to recognize ICL and also pressured the international cricket community to boycott it terming it an illegitimate affair. A lot of cloak and dagger followed with some associates and partners apparently letting him down as he sought to fulfill his passion and dream that sports television in India should be in the hands of Indians, rather than some foreign broadcasters as it is in other countries.

    And, then came Lalit Modi with his own blueprint for a cricket league about nine years back that’s now known as IPL and, along with Kaun Banega Crorepati (KBC), is one of the bigger revenue earners for the present broadcast rights holder SPN India. However, many argue that Modi simply polished Chandra’s ICL — an allegation that the now-banished Indian has always denied saying the IPL idea was much older than even ICL.

    ZEEL did make attempts to get the broadcast rights for the IPL too to boost revenues for its Ten Sports channels, but was out-batted and bowled by the Indian cricket bosses. Not to mention that in the meantime the acquisition cost of cricket rights related to anything Indian kept going north.

    In a cricket-crazy nation where advertisers pour in money in cricket (except probably the original domestic leagues like the Ranji and the Duleep Trophy that get much discounted rates from sponsors and broadcasters), Zee’s Ten Sports ventured out looking for cricket rights in places like Sri Lanka, Bangladesh, and Zimbabwe, which enthused sponsors less compared to, say, an India vs. Australia cricket series. Additionally, from time to time the Essel group announced that it would be putting together other cricket leagues, involving local Indian domestic teams or international ones. But apparently, that did not go well, either courtesy resistance from boards or the fact they ended up being commercially unviable.

    Though while announcing its financial results for the first quarter for FY 2017 ending June, Zee did mention that key properties on its sports channels during the April-June 2017 quarter included telecast of Zimbabwe vs. India cricket series, WI-Australia-SA cricket series, the UEFA Champions League football final and WWE among others. The sports business revenue in the first quarter of FY2017 was Rs 1,700 million, while the cost incurred in this quarter was Rs 1,529 million. Certainly a narrow gap that would tend to get narrower with former ally-turned-competitor Murdoch’s Star India investing aggressively in sports led by cricket rights.

    For Ten Sports to survive largely on properties that not only had limited appeal for viewers and, thus, Indian sponsors (considered one of the bigger spenders in the world of sports, especially cricket) it would have always been an uphill task. Despite a Tour de France here and US Open tennis there with some premium golf thrown in for good via a dedicated golf channel.

    In most countries, unlike India, the business of sports broadcasting thrives on monopoly or most duopoly. Like in the UK with Sky Sports or in the US with Fox Sports and ESPN (NBC does make an occasional splash in the US with mega sporting properties like the recent Olympics coverage) or in Australia with Fox and Channel Nine.

    In India, three players in the sports broadcasting business – actually there’s a fourth in Nimbus, but it has retreated to being a niche player with a few sports – was a tad too much. SPN India had been gradually curating its sports telecast properties over the past 10 years or so – of which of course the premier one was the mega spinner IPL – and had launched a couple of channels, with ambitions to launch more. And then came the blinder of an announcement that SPN India was marshalling forces and getting into bed with the global sports heavyweight ESPN as it made efforts to make a comeback into sports television in India. This followed the annulment of its Star-ESPN joint venture (meant specifically for Asia) and the necessary cooling off period post its divorce from Star about a couple of years back.

    A three-way fight for Indian viewers despite 153 million TV households and growing was always going to be tough when Star was splurging money on sporting properties and the now Sony-ESPN joint venture brought to the table the expertise and deep pockets of two global media conglomerates.

    With the kind of financial muscle these two media heavyweight gorillas bring, Goenka and Chandra probably thought it would not be okay just being a member of the pack. And in such a scenario, it clearly makes business sense to cut one’s losses and get out. And if emotions have no business to be in business, then Zee getting out of the sports business makes more sense. Still, it must have been a tough call for Chandra and Punit to cut the cord.

    However, the sale deed has yet to be signed – ZEEL informed the BSE that it is in advanced discussions to sell its sports business to potential buyer(s). The ball is in the hands of Sony Pictures Television worldwide networks boss Andy Kaplan, SPN India CEO NP Singh and of course the two main players out on the green – Subhash Chandra and Punit Goenka. Keep watching this space!

    (SPN India and Zeel have since announced that they had reached an agreement on the buyout of Ten Sports. Read the announcement by clicking on the link below)

    SPN India acquires ZEEL’s Ten Sports for USD 385 mn
    http://www.indiantelevision.com/television/tv-channels/gecs/spn-india-acquires-zeels-ten-sports-for-usd-385-mn-160831

  • Ten Sports proposed sale: Biz acumen trumps emotions

    Ten Sports proposed sale: Biz acumen trumps emotions

    NEW DELHI: In business, emotions have importance, but they have to be weighed against the larger interest (of the company). This was Zee boss Subhash Chandra telling an eager journalist on the media beat for a business newspaper in the fag end of 90s after having just bought out Rupert Murdoch from three joint ventures in a cash-and-stock deal worth few shades less than $ 300 million.

    When an announcement came on 29 August 2016, almost 16 years and mega growth later, on the Bombay Stock Exchange from Zee Entertainment Enterprises Ltd (ZEEL) that in order to maximize shareholders returns, the company, while exploring various strategic options to start or exit businesses, is in an advanced stage of negotiations to sell off its sports business (carried out under the Ten Sports brand), it generated lot of hiccups all around. This despite the fact that the rumor about an impending sale had been going around for quite some time now.

    But to indiantelevision.com shedding off of a business that could — and is partially doing so, financial analysts opine — turn the company’s bottomline scarlet is classic Chandra. A risk taker to the core, he is equally quick to invest as he is to divest. Of course, at a price that makes sense. He has designed his group to be very bottom line focused and cut losses whenever things are not looking good.

    Though it could be argued that this time round the final call to exit the sports business in the face of rising content acquisition costs and inadequate proportionate revenues (India’s slow digitisation process has been hampering real-time growth in subscription earnings) must have been taken by Chandra’s eldest son helming ZEEL, Punit Goenka, a true chip off the old block.

    The speculated price for Ten Sports’ impending sale, acquired from its Dubai-based owner Abdul Rahman Bukhatir’s Taj Group in 2006, is around Rs 2,000 crore. The prospective buyer: Japan’s Sony group’s Sony Pictures Networks India (SPN India), presently headquartered in the US with its APAC head office in Singapore.

    If the Indian Premier League (IPL) cricket is now a phenomenon to reckon with in world sports, being compared with the likes of the money-spinning NBA, tennis and golf leagues, it had an ancestor in ICL (Indian Cricket League).

    Conceptualized by Zee with Chandra’s active backing, ICL in the mid-2000 era couldn’t flower like IPL, a property of the Indian cricket board. Reason: Zee and Chandra were on the wrong side of the Indian cricket bosses who refused to recognize ICL and also pressured the international cricket community to boycott it terming it an illegitimate affair. A lot of cloak and dagger followed with some associates and partners apparently letting him down as he sought to fulfill his passion and dream that sports television in India should be in the hands of Indians, rather than some foreign broadcasters as it is in other countries.

    And, then came Lalit Modi with his own blueprint for a cricket league about nine years back that’s now known as IPL and, along with Kaun Banega Crorepati (KBC), is one of the bigger revenue earners for the present broadcast rights holder SPN India. However, many argue that Modi simply polished Chandra’s ICL — an allegation that the now-banished Indian has always denied saying the IPL idea was much older than even ICL.

    ZEEL did make attempts to get the broadcast rights for the IPL too to boost revenues for its Ten Sports channels, but was out-batted and bowled by the Indian cricket bosses. Not to mention that in the meantime the acquisition cost of cricket rights related to anything Indian kept going north.

    In a cricket-crazy nation where advertisers pour in money in cricket (except probably the original domestic leagues like the Ranji and the Duleep Trophy that get much discounted rates from sponsors and broadcasters), Zee’s Ten Sports ventured out looking for cricket rights in places like Sri Lanka, Bangladesh, and Zimbabwe, which enthused sponsors less compared to, say, an India vs. Australia cricket series. Additionally, from time to time the Essel group announced that it would be putting together other cricket leagues, involving local Indian domestic teams or international ones. But apparently, that did not go well, either courtesy resistance from boards or the fact they ended up being commercially unviable.

    Though while announcing its financial results for the first quarter for FY 2017 ending June, Zee did mention that key properties on its sports channels during the April-June 2017 quarter included telecast of Zimbabwe vs. India cricket series, WI-Australia-SA cricket series, the UEFA Champions League football final and WWE among others. The sports business revenue in the first quarter of FY2017 was Rs 1,700 million, while the cost incurred in this quarter was Rs 1,529 million. Certainly a narrow gap that would tend to get narrower with former ally-turned-competitor Murdoch’s Star India investing aggressively in sports led by cricket rights.

    For Ten Sports to survive largely on properties that not only had limited appeal for viewers and, thus, Indian sponsors (considered one of the bigger spenders in the world of sports, especially cricket) it would have always been an uphill task. Despite a Tour de France here and US Open tennis there with some premium golf thrown in for good via a dedicated golf channel.

    In most countries, unlike India, the business of sports broadcasting thrives on monopoly or most duopoly. Like in the UK with Sky Sports or in the US with Fox Sports and ESPN (NBC does make an occasional splash in the US with mega sporting properties like the recent Olympics coverage) or in Australia with Fox and Channel Nine.

    In India, three players in the sports broadcasting business – actually there’s a fourth in Nimbus, but it has retreated to being a niche player with a few sports – was a tad too much. SPN India had been gradually curating its sports telecast properties over the past 10 years or so – of which of course the premier one was the mega spinner IPL – and had launched a couple of channels, with ambitions to launch more. And then came the blinder of an announcement that SPN India was marshalling forces and getting into bed with the global sports heavyweight ESPN as it made efforts to make a comeback into sports television in India. This followed the annulment of its Star-ESPN joint venture (meant specifically for Asia) and the necessary cooling off period post its divorce from Star about a couple of years back.

    A three-way fight for Indian viewers despite 153 million TV households and growing was always going to be tough when Star was splurging money on sporting properties and the now Sony-ESPN joint venture brought to the table the expertise and deep pockets of two global media conglomerates.

    With the kind of financial muscle these two media heavyweight gorillas bring, Goenka and Chandra probably thought it would not be okay just being a member of the pack. And in such a scenario, it clearly makes business sense to cut one’s losses and get out. And if emotions have no business to be in business, then Zee getting out of the sports business makes more sense. Still, it must have been a tough call for Chandra and Punit to cut the cord.

    However, the sale deed has yet to be signed – ZEEL informed the BSE that it is in advanced discussions to sell its sports business to potential buyer(s). The ball is in the hands of Sony Pictures Television worldwide networks boss Andy Kaplan, SPN India CEO NP Singh and of course the two main players out on the green – Subhash Chandra and Punit Goenka. Keep watching this space!

    (SPN India and Zeel have since announced that they had reached an agreement on the buyout of Ten Sports. Read the announcement by clicking on the link below)

    SPN India acquires ZEEL’s Ten Sports for USD 385 mn
    http://www.indiantelevision.com/television/tv-channels/gecs/spn-india-acquires-zeels-ten-sports-for-usd-385-mn-160831