Tag: World Cup

‘The real value of cricket is now going to show up’ : Rohit Gupta – SET India executive vice president ad sales and revenue management

Cricket, cricket and cricket. That is the exciting scorecard SET India will have for display in the fiscal 2006-07.

A lineup of eight sponsors that is set to gobble up 50 per cent of the inventory. A bulk deal with Dentsu that eases the pain of selling individually to clients. Sony’s ad target: Rs 5 billion upwards. A figure that many in the industry are sceptical about, but the team at SET India is confident of achieving.

Centring around the World Cup will also be a slew of high-profile programme launches. The aim: to give SAB TV and Sony TV the much-needed lift.

In an interview with Sibabrata Das, SET India executive VP ad sales and revenue management Rohit Gupta talks about how media agencies should go beyond ratings and rates to work with broadcasters for deriving value from sports and other big properties. The industry with 70 million cable & satellite (C&S) homes, he says, is under-served and undervalued.

Excerpts:

What exactly is the deal with Dentsu?
Dentsu has bought a high proportion of inventory on Max for the two ICC tournaments. By coming in early, the agency has ensured that its clients get into the World Cup without paying a real high premium (settling between the sponsorship and spot rates). The deal has put less pressure on us to individually sell that many spots.

Was there a proposal to handle the entire inventory on a minimum guarantee (MG) and revenue share basis?
Dentsu did make an offer. But we couldn’t have done that in India because of ICC restrictions. Besides, we were clear that we wouldn’t do one block deal. We still have to maintain our relationship with other agencies and clients.

Is the Dentsu deal going to be a trendsetter in sports selling even as acquisition costs for cricket TV telecast rights go up?
It definitely is an eye opener for a lot of people. What Dentsu has done, most agencies should start doing – engaging with broadcasters well in advance. Agencies shouldn’t try to beat the ground pricing always. As much as I have to sell, they have to buy. Everything can’t boil down to rates; then you will never get value. Where are the CPRPs (cost per rating point) for Super Bowl in the US? There is something called an ‘impact buy.’ Cricket should be looked at from that perspective; it not only brings in new audiences but is also a religion in the country.

Is SET India targeting an advertising revenue of Rs 5 billion from the two ICC tournaments?
I can’t disclose the exact figures. But we are going to double our revenues from the last World Cup.

How?
Just look at the cable and satellite (C&S) viewing universe which will have more than doubled from 32.5 million homes in the 2003 World Cup to 70 million by the time the March 2007 edition kicks off in the Caribbean. That would mean a potential viewership of over 300 million glued on to their TV sets.

Besides, the two tournaments sit on a perfect timing with brands being active from October (festival season) to April (summer spending). Add to this the advantage of the Champions Trophy being played in India.

‘We will use the World Cup to lift Sab to the next level. With cricket and Fame X, we have a far more aggressive growth plan for the channel‘

How much money have you tied up from the eight sponsors?
I can’t go into the specific details, but 50 per cent of the total inventory is consumed by the two presenting (Reliance Infocomm and Nokia) and six associate (Pepsi, Hero Honda, Maruti, Hewlett Packard, LG Electronics and ITC Foods) sponsors. We have sold the two tournaments together as they involved huge outlays from clients. We will eat into the share of the biggest channel’s revenues.

What are the brands you target for Extraa Innings?
This is a very big property for us and we sell it to a separate set of sponsors. We target smaller brands who do not have that kind of budgets to be on the World Cup matches itself. Extraa Innings is not just wraparound programming but is fun and entertainment. We monetise every property that we have.

How much of a revenue advantage will the Hindi feed on Sab TV be?
Doordarshan gets 30 per cent of its viewership from C&S homes because of the Hindi commentary. Our aim is to eat into this. We are, thus, simulcasting 18 key matches on Sab in Hindi. We are offering value to the advertisers who would have also bought on DD. We want to own the entire C&S homes.

During the last World Cup, SET India’s strategy was to push Max. Are you working out a similar strategy with Sab this time?
We will use the World Cup to lift Sab to the next level. We did that with Max during the last World Cup and raced ahead of Zee Cinema, which had an early mover advantage, in one year’s time. We have planned big launches like Fame X (the refurbished version of Fame Gurukul) on Sab TV. We have also recently put up a clutch of comedy shows.

Have you changed the positioning of Sab TV after buying it out?
When we acquired Sab TV, it had a fuddy, duddy image with an appeal in the Hindi heartland. As this old image restricted growth in ad revenues, we felt the need to reposition it as a youthful, light hearted channel. Sony as a network stands for the youth brand. With cricket and Fame X, we obviously have a far more aggressive growth plan for Sab. Our aim is not to make Sab TV a flanking but a strong channel standing on its own.

Sony is in talks to acquire stake in Ten Sports. Do you feel the need of a complete sports channel?
I wouldn’t like to offer comments on this.

Is the time right to hive off Max into a complete movie channel in the changing scenario?
With so much of cricket happening now, it is certainly good to have a sports channel. Because in a hybrid channel, you are disrupting the viewership and revenues. But it all depends on what properties you are acquiring. For us, Max has worked well as a hybrid channel. We have been able to marry together both the passions – movies and cricket. The ICC property we had offered major tournaments every two years; we could change gears effectively. Max is no more a poor cousin of Sony, but rakes in ad revenues over Rs 1 billion (from around Rs 280 million before the World Cup) purely on its movie strength. Whether we will continue down this road, I don’t really know. I wouldn’t at this stage be able to comment for the future.

How will revenue support high telecast fees for the next World Cup bid?
The industry will have to use new ways. As TV telecast rates climb higher and higher, we may have tie-ups with agencies and clients at the time of bid. We don’t know – all that may happen to minimise risks. We will have to explore all options. Cricket, after all, will be a dominant monopoly at least for the next ten years. Of course, other sports like football will emerge. But cricket will continue to rule in viewership and revenues.

Will advertising back up such acquisition costs or the model be driven by subscription revenues?
Ad rates will have to go up. When Harish Thawani starts selling this time, he will have to get real pricing because his company Nimbus has paid that kind of money to get the telecast rights for cricket in India. He couldn’t do that last time because he didn’t have a channel. The real value of cricket is now going to show up because the new rights where people have paid huge money are now coming in. So the next 6-8 months in cricket is going to be exciting because you will see the rates go up substantially. Otherwise, somebody is going to get bankrupt.

We will also see money shift from on ground to on-air advertising. The value of on ground properties is diminishing.

What about subscription revenues?
Direct-to-home (DTH) and conditional access system (CAS) will form a revenue component when the ICC bid comes up this time. We had factored in some inflows from DTH when we made the bid last time, but it got delayed by two years. For us, it has been advertisement-led and we have successfully achieved that.

With Zee TV on a resurgence, how has the slip in Sony TV’s ratings affected the revenues?
As a network, our ad sales will grow by 30 per cent this fiscal. Sony TV saw a blip last quarter but with the launch of Jhalak Dikhla Jaa we are sorting it out. We will also be using cricket in a big way to promote our properties and are launching Big Brotherimmediately after the Champions Trophy. Unlike the last World Cup, we have planned up big show launches just after the tournament.

Isn’t Pix slow to take off?
We have now got the distribution right. We will start focussing on selling. We are looking at premium brands as the positioning of the channel is for SEC A.

Pix has a library from MGM but lacks new movies which HBO and Star Movies are able to telecast. How do you plan to correct that?
The two movie channels show premium new titles only once a quarter. We don’t plan to have those titles for at least the next one year. But that won’t affect us. We have a good library. Besides, there is space for three English movie channels.

What are the plans for AXN?
We will continue to do at least three big local ground events. That is the advantage AXN has against its competing channels. We integrate events with the local brands. Man’s World is also coming up. AXN is a youth and adventurous channel which telecasts action titles.

Is there concern that the World Cup almost coincides with the implementation of CAS?
We see it as an opportunity. The World Cup will drive CAS. Much like brands being born out of the World Cup. We have seen how the top two players in any sector (consumer durables, telecom, automobiles, etc) have used cricket to grow. That is the power cricket has over audiences in India.

September 25, 2006

Italians partial to World Cup mobile content

MUMBAI: During the Fifa World Cup which took place from 9 June – 9 July 2006, Italians used their mobile to access content from the event more than any other European country.

Research firm Telephia’s Q3 2006 European Subscriber and Device Report (ESDR) shows that six per cent of Italian mobile subscribers accessed World Cup content on their mobile devices, as compared to three per cent for French mobile subscribers. Not surprisingly, European 3G mobile subscribers posted higher rates for accessing World Cup soccer content on their phones at 14 per cent, while only three per cent of non-3G mobile users accessed soccer content.

Penetration Rate of Mobile Subscribers who accessed Fifa World Cup Content
Country Penetration Rate (per cent)

Country Penetration Level
Italy Six per cent
Germany Four per cent
France Three per cent
Sweden Three per cent
UK Three per cent
Spain Two per cent
Telephia VP new products Kanishka Agarwal says, “Soccer enthusiasts across the world are passionate about their sport, and European fans are notorious for their hardcore dedication in supporting their country’s team. Italy secured their first World Cup title in 24 years with a penalty shoot-out victory over France, to the delight of Italian fans.

“The World Cup showcased how important mobile phones have become as a source of immediate information and relevant content for consumers, beyond just a tool to communicate. Soccer fans were able to tap into the frenzy of the games and show their connection and support for their favorite teams through their cell phones”.

Content Type Share

Type of Content Share per cent
Received World Cup text alerts 38 per cent
Accessed World Cup news and information on the wireless
Internet 29 per cent
Downloaded a World Cup ring tone 19 per cent
Downloaded a World Cup wallpaper 15 per cent
Downloaded World Cup video clips 14 per cent
Downloaded a World Cup game nine per cent
Watched World Cup content on mobile TV Eight per cent
Uploaded World Cup pictures/images to the Web Eight per cent
Uploaded World Cup video to the Web Seven per cent
Placed a video call/Sent a video message Five per cent
Others Eleven per cent

Sky Sports was the most watched Mobile TV Channel in Europe for the Fifa World Cup. Eight per cent of European mobile subscribers who accessed soccer content on their phone watched via mobile TV. Sky Sports was the top channel, securing a 14 percent share of World Cup mobile TV users. Overall, World Cup content received through text alerts was most popular (38 per cent), followed by content through wireless Internet at 29 per cent. 19 per cent downloaded a World Cup ringtone, while 15 and 14 per cent downloaded wallpapers and video clips, respectively.

September 9, 2006
ICC to invite media rights bids for 2007-2015 in October

MUMBAI: In October, the International Cricket Council (ICC) will begin the process of selling the audio-visual rights for 18 ICC tournaments starting from the second half of 2007 till the World Cup in 2015.

A statement put forth by the ICC informs that the period includes 18 ICC tournaments. There will be two World Cups, in Asia in 2011 and in Australia and New Zealand in 2015. There will also be at least three Champions Trophy tournaments. It will then focus on selling the sponsorship rights.

Media reports indicate that the first two Twenty20 world championships to be held in South Africa (2007) and England (2009), also feature among the events.

The current agreement with Global Cricket Corporation (a News Corp subsidiary), which began in 2000, ends in March/April 2007 with the World Cup in the West Indies. GCC had sold the India territory rights for ICC cricket to Sony Entertainment Television India.

August 16, 2006
SET to simulcast key Champions Trophy & World Cup matches on Max, Sab

MUMBAI: Sony Entertainment Television (SET) India is gearing up full on for the Champions Trophy in October and the World Cup in West Indies early next year. The target this time round is to be armed cap-a-pie, thus leaving no stone unturned to garner maximum eyeballs and revenues.

With an aim to eat into the viewership of Doordarshan, SET will simulcast key India matches, the semi-finals and the finals of both tournaments on Max and Sab.

While the feed on Max will be in English with its own set of commentators for Extraaa Innings, the feed on Sab will be in Hindi. “Today DD gets 30 per cent of its viewership from cable and satellite homes, where people prefer to watch the matches because of the Hindi commentary. Now with Sab having a Hindi feed, we will be able to eat into the C&S share of DD during the matches. It is a huge chunk of the market, which we want to own,” SET India executive vice president (ad sales & revenue management) Rohit Gupta tells Indiantelevision.com.

“DD was getting its viewership for cricket matches not just from UP and MP but even from Delhi. Our aim is to own the entire Hindi C&S space with the upcoming tournaments in our kitty and that is the proposition we are giving to advertisers. In a way we are also looking at eating into the revenue shares of DD,” he asserts.

Apart from this, a lot of brands that were buying air time space on Max, were also doing so on DD during the earlier matches. But now with a combination of Max and Sab, they don’t need to do that barring some brands like Lifebuoy, which have a specific rural focus, Gupta argues. The Champions Trophy, it is worth noting, will be held during the festive season (7 October to 5 November), which is when most brands will be active to the hilt. Even the World Cup in March-April will see a slew of brands upping their advertising before the peak summer months, he adds.

Brands such as Maruti and Hero Honda, to name a few, who were buying 300 – 500 seconds of advertising time on DD, need not buy more than 100 seconds now because of the package that they will be getting in Max and Sab, is the point that Gupta and his team will be trying to drive home to advertisers in the coming months.

“While the television universe extended to 35 million homes the last time the Champions Trophy was played, this time it has increased to 70 million homes. We expect to see Sab hitting a different level with this because of the sheer viewership,” says Gupta.

What’s more, in order to encash on the scaled viewership post the Champions Trophy, Sab will be launching a slew of new shows. “The idea is to use cricket as a platform to take Sab to a different level,” he states.

July 13, 2006
India to host 2011 Cricket World Cup final

MUMBAI: The International Cricket Council conference held in London has reached a final decision on certain key points pertaining to the 2011 Cricket World Cup venue distribition between India, Pakistan, Sri Lanka and Bangladesh.

While India will stage the final match, Pakistan and Sri Lanka will stage semi-finals. The opening ceremony has gone to Bangladesh.

“It has been decided that all four should evenly play a part in hosting the major events of the tournament,” Pakistan Cricket Board director Abbas Zaidi has been quoted in media reports as saying. Pakistan hosted the final of the World Cup, last played in Asia 10 years ago.

“Traffic will come to a stop in the four countries in 2011. There will be more than a billion television viewers in the sub-continent, and another billion in the rest of the world,” adds Inderjit Singh Bindra of India.

The 2011 World Cup will see India staging 22 matches, Pakistan 16, Sri Lanka nine and Bangladesh six. The venues being considered for the final include Eden Gardens in Calcutta, the Wankhede Stadium in Mumbai, the Chinnaswamy Stadium in Bangalore and the Feroz Shaha Kotla in Delhi.

July 8, 2006
Visits grow for Fifa fan fest venues

MUMBAI: Since the 2006 soccer World Cup began on 9 June, around 11 million fans have celebrated at the official ‘Fan Fest’ sites in Germany in a peaceful, joyful and colourful manner and in keeping with the official slogan, A Time to Make Friends.

Football’s governing body Fifa says that the popularity of the Fan Fest sites in all 12 host cities has exceeded its expectations. Fifa president Joseph S. Blatter says, “We thought that around eight million fans would turn up over the course of the tournament, but that mark was easily surpassed at the halfway point. The host cities and Fifa wanted to do something for the fans without tickets.

“I can only congratulate the 12 host cities on these wonderful Fan Fest parties, which have taken the authentic stadium atmosphere into the city centres. The 18th Fifa World Cup will long be remembered for the unique sense of excitement and passion it has generated”.

Prime sites in the 12 host cities were chosen as “second venues” in the official World Cup design. Entry into the Fan Fest sites is free of charge, and as well as broadcasting all matches live on giant screens, the Fan Fest sites offer various other events that differ from region to region.

Berlin World Cup office head Jürgen Kiessling says, “Happiness has spread throughout the 12 host cities. We never expected such a sensational response. The whole world has seen some fantastic images from the host cities, which have joined together in this way for the first ever time, and with FIFA, they have created something unique.”

So far, 5,500 national and international media representatives have reported on the Fan Fest sites, with some TV channels as well as official German broadcaster ARD often reporting live from the sites themselves.

The Fan Fest system was developed by the 12 host cities and Fifa with the support of the local organising committee over a period of two years, thereby creating the biggest ever football party in Germany. The Fan Fest parties are organised by the cities themselves, together with regional organisers whose untiring efforts have helped to make them such a huge success.

Fifa is responsible for coordinating the entire operation, as well as for providing the basic infrastructure such as the giant screens, stages, sound, lighting and decoration of a total of 20,000 square metres in the official World Cup design. The Fan Fest system has received financial support from four Fifa partners: Coca-Cola, Hyundai, MasterCard and Toshiba.

Huge logistical operations have provided the foundations for the success. Around, 17,000 people have ensured that everything has run smoothly on the 14 stages and 34 giant screens, which have been provided by another FIFA Partner, Philips. Local authorities have developed comprehensive security measures, which have been implemented without any major incidents.

The local organising committee’s “Fan Embassies” also provide a first point of contact for the fans. TV rights holder Infront has provided the broadcasting licences free of charge. The biggest football party of all time is now ready for the second half.

June 28, 2006
Soccer fever: Zee Sports sets itself ‘Goal 2010’ with AIFF

MUMBAI: Just imagine! With football fever spreading across the country thanks to the football World Cup, Zee Sports has set itself an ambitious target.

Zee Sports and the All India football federation (AIFF) are looking to spread the popularity of football over the next four years. The two parties have announced a visionary project Goal 2010.

The ultimate aim is to see India play in the soccer World Cup in 2010 in South Africa. Hence the tagline Just Imagine! The two parties will have public relations, youth outreach, training and marketing activities. The first step in the long journey will be a three week long Soccer Carnival in 11 cities including Goa, Mumbai and Delhi. The carnival kicked off in Chandigarh on Monday.

Elaborating further on the initiative Zee Sports business head Himanshu Mody said, “Football is an international sport for which there is a vast following among the masses in India. We have put in lot of hard work to present Indian Football in a high quality format at viewer friendly times with in depth analysis.

“That football has entered a new level has become obvious with the strong response we have received from fans and the corporates in the last one-year. Goal 2010 is an assertion of our commitment to make football as the most watched and played sport in the country. We believe that this project will help Indian football make a place for itself in world football.”

The channel notes that the level of interest in the ongoing soccer World Cup shows on one level that the interest in the game is alive and well. At the same time the poor standard exhibited by the Indian football team in the past few decades is responsible for the domestic clubs and national team’s performances not being followed. The channel rightly notes that should India take part in the soccer World Cup in 2010 interest will skyrocket.

The parties are looking to take advantage of the rise of interest in football in the public’s consciousness and build the players, leagues and clubs on the plank of “Support your team and it’s player’s in their crusade for the next World Cup”. The Goal 2010 project will encompass all activities undertaken by Zee and AIFF in their preparation to get India to South Africa in 2010.

Activity Plan: The earlier mentioned carnival will be in the form of roadshows. For three weeks they will travel to Delhi, Mumbai, Bangalore, Hyderabad, Bangalore, Pune, Lucknow, Chandigarh, Jaipur and Kolkata. The roadshows will have branding, MC, music, Zeebras and a roll of Canvas on which the channel will make Indians pledge their support to Indian Football’s World Cup 2010 campaign. The promoters will drive traffic to this Graffiti wall.

In the morning, the channel shall park outside a school or academy to rally student support. In the evening, the channel will cover public parks and the main market areas. There will also be a giant replica of the Fifa World Cup. The channel is hoping that this will instill dreams in Indians that just like cricket their football team too can do their country proud on the global stage.

During the three-week period in each city the road show will last for three days and will visit various hip and happening locations in each place. The aim is to create fan awareness about different facets of Indian Football, which includes various tournaments and leagues, football players, clubs, legends of Indian football, etc. Besides providing an opportunity to fans to know about Indian football, the carnival will also host a variety of interactive games and contests where they will have the opportunity to win Zee Sports merchandise.

The carnival will first visit Chandigarh with the football cheerleading squad, the Zeebras. A huge inflatable football will be placed at a prominent indoor location in each city and will remain there for six months. People can come and pledge their support to the Indian Football’s World Cup campaign. All signatures collected during the campaign will be presented to Fifa president Sepp Blatter in October, during his visit here and his support for India’s dream will be sought.

Zee Sports VP marketing Gaurav Seth says that later in the year the channel and AIFF will conduct inter school competitions where probables for the under 17 and under 19 teams will be considered. The Japanese team comes down in October to play in qualifying matches for next year’s Asia Cup in Malaysia. If the Indian team is able to qualify for the Asia Cup then that will give them excellent practice ahead of the World Cup qualifiers which start in 2008.

Zee Sports and the AIFF will also conduct clinics for coaches and teachers. This is important in growing football at the grasroots level. A couple of weeks ago, AIFF, with advice from Zee Sports, had chosen Bob Houghton as the Indian football team’s coach. Houghton has in the past helped take China to the soccer World Cup. Seth is hopeful that with the carnival Indian soccer fans will not forget about the sport once the World Cup (which is airing on rival ESPN) ends.

Zee Sports had introduced the Zeebras as their mascots of promoting Indian football. Dressed in funky outfits, the Zeebras will perform on hit tunes during the carnival.

Zee Sports had signed a 10 year deal with the AIFF last year. The channel says that since then it has taken prudent steps to popularise Indian Football. For the first time, 100 matches of Indian football comprising of matches from National Football League, Federation Cup and Santosh Trophy were shown live.

Zee Sports flew down international experts in football production for the telecast of Indian Football. This included directors, sound engineers, visual graphic specialists from the UK, South Africa and South East Asia. Using a 12-camera setup to cover the action from the field, Zee Sports ensured every shot and dribble was viewed from multiple angles ensuring exciting viewing to its consumers.

The coverage involved more replays, international commentators, new graphic look and various in studios programming leading to the build up. For the 10th edition of ONGC Cup, two world-class units simultaneously broadcast the matches from Kolkata, Mumbai and Goa. British Match director David Horridge, produced the telecast.

Horridge is involved in directing Champions League matches and is now Germany to work for Fifa on the World Cup coverage. The telecast package will include preview and review shows, half time match analysis and various studio programming.

In line with Zee Sports promise to deliver international quality coverage of Indian football, John Helm and former England International player Russell Osman were flown from England for commentary for all the three major domestic football tournament. Assisting them were Zee Sports commentator Debayan and football expert Noel da Lima Leitao.

June 28, 2006
Digital TV in focus as television hooks into the high definition era

SINGAPORE: With more than 150 million Digital TV homes across the world, the debate has fast moved on from ‘whether internet will do to TV, what TV did to radio years back!

The morning session on the changing face of television at Broadcast Asia 2006, brought home the fact that from the first launches of MPEG -2DVB broadcast platforms, the industry is seeing a new wave in TV delivery, which is being driven by intense competition amongst platform operators across the world.

Speaking on the occasion, Tandberg Television Asia Pacific president Graham Cradock said, “Research indicates that by 2010, more than 50 per cent of TV viewing is going to be on -demand basis. Consumers are already reacting favourably and adopting the new technological changes. There are 10 million High-definition (HDTV) subscribers in the US and The desire to watch the recent World Cup Fever has added on to the HDTV households across the globe including countries like Korea and Japan.”

Quoting from a study conducted by Ernst and Young in the US, Cradock added that in this digital decade, it takes very little time for people to adopt to newer technologies. So, it took almost 16 years for mobile to catch on, nine years for the internet, DVDs took six years to bust the video business; but for digital TV, it will probably take just very little time. He added, “Across the world more than ten per cent of the digital TV homes have shifted to on-demand basis. By 2010, we predict more than 50 the per cent of TV viewing is going to be on demand basis.”

The key message here is that the consumer has fast changed in the last five years. The availability of increasingly sophisticated personal media services has created a new generation of digital savvy consumers. With devices such as digital camera and video phones, MP3 players, personal video players and gaming consoles the use of WiFi to connect to the internet, the consumer is becoming a more and more accustomed to living in a world where he or she can access content anywhere.

So, what does this mean for the consumer and for broadcasters? Well, in the on-demand economy, obviously content remains king and consumer the real winner. Television will not offer more customized content supported by technology to go with the new multi media solutions like internet protocol television (IPTV) and high-definition technology. To add on it will be features like personal video recording, digital audio broadcasting (DAB) and conditional access control.

Cradock stressed the fact that there was not much customised content for television, “Television content, will have to be repurposed to suit the delivery platforms. And there is a growing cohabitative relationship between television, the Internet and to some extent mobile too. The challenge in the future is to make them complimentary to each other,” he said.

So, how are broadcasters gearing up to the challenges of Digital TV and the emergence of convergence?

Said Cradock, “The changing face of television is giving sleepless nights to many broadcasters, as the order will question the fundamental parameters of TV viewing. From the commercial perspective, fragmented content will obviously reduce advertising revenue. Also, they have to make sure that consumers have the screens which support the newer technologies. The complex TV world will also bring about legislative issues in the wake of digital switchover, access rights, franchising fees, etc.”

Graham listed out the survival strategy in the changing scenario:

Don’t get anxious. Instead, get enthusiastic about the changes and adapt to them. Like, New Zealand is already talking about the digital switchover and opening up the bandwidth to cater to interactive television.

In IPTV, see an opportunity for delivery for interactive TV

Fragmentad and customized content will mean a drop in revenues but there is a positive side to it. Look at branded content, which will deliver more return on investment (RoI) for the advertisers.

For advertisers, it will be a win-win situation; at least now they’ll get to know what works best for them.

Remember, earlier it was content to the consumer, and now it is content for the consumer.

June 20, 2006
Fifa in a funk over BBC show

MUMBAI: Even as the football World Cup gathers momentum in Germany, football’s governing body Fifa is in a funk over a BBC Panorama show which aired in the UK a few days ago.

The report was called The Beautiful Bung – Corruption and the World Cup. Veteran reporter Andrew Jennings revealed the serious allegations and evidence that triggered a major investigation by the Swiss authorities. The report had shown serious allegations of bungs, sleaze and vote-rigging by some of the men running the World Cup.

In the programme, Jennings was pushed by a Fifa vice president for asking him how much profit he plans to make from selling World Cup tickets this year. Then he was banned from Fifa headquarters for asking president Sepp Blatter on what he knows about kickbacks to senior officials from a company seeking lucrative contracts.

The programme revealed that over a million pounds worth of bribes have secretly been repaid. Not by the officials who received the kickbacks, but, according to a secret court judgement, by Fifa itself. Magistrate Hildbrand must decide if this act went against Swiss law. If it did, some of the most senior Fifa officials could face jail.

Fifa has issued a statement stating that it takes exception to certain allegations in Panorama. This does not mean that any of the other points raised are acceptable to Fifa as the truth. Fifa notes that as confirmed by the relevant authorities, it is completely false and defamatory to claim that either Blatter or Fifa are the subject of a bribery probe by the Swiss police. Fifa says that in the past, it was actually the victim of ISL irregularities. On the BBC show, a senior executive from ISL, the former marketing company that paid the bribes, had spoken anonymously to Jennings, revealing that ‘bungs’ were paid systematically, frequently through offshore bank accounts, over a 20-year period.

ISL was set up in 1982 and soon acquired the marketing and television rights to the Olympic Games, the World athletics championships and the football World Cup. Media reports indicate that rumours have circulated for years that senior sports officials took bribes in return for these lucrative contracts. ISL collapsed in 2001 and when the liquidator took over the company’s bank records, he found evidence of bribes.

Some officials repaid the money but when others declined, the liquidator went to court. The result was a secret deal in early 2004 to repay more. Fifa says that it looks forward to the final proceedings in the Swiss courts, which it continues to support. During his investigation for the BBC, Jennings travelled from the Swiss Alps to the beaches of the Caribbean.

June 14, 2006
Sports super show kicks-off in Germany

MUMBAI: The biggest global sporting event on the planet kicked off in Germany with the hosts playing Costa Rica. Around 1.5 billion viewers around the globe are expected to tune in to the opening fixture of the World Cup alone.

A record number of deals: What is helping television viewership in this regard is the sheer number of deals that have been done by football’s governing body Fifa’s marketing agency Infront. Besides getting deals which will ensure the event gets viewed in over 200 countries, InFront has also signed deals with more than one broadcaster in key territories like Germany.

The World Cup is projected to get a cumulative viewing global audience of 32.5 billion. This marks a 10 per cent increase compared to 2002. For 2006, there will be more than 500 broadcast partners including 240 television licensees, a record number of 220 radio stations and more than 50 New Media Licensees (Mobile Telephony and Internet). By comparison, the 2002 event was transmitted by 300 broadcast partners.

Distribution has been handled on an open-market basis. This offers viewers variety and choice in how they watch the event and an exciting array of production advances to add to their enjoyment. Infront achieved these record results through ‘layering’ different television offerings for the various markets worldwide. The event will be shared between a broad range of distribution platforms, offering viewers a variety of options. Infront has contracted with two or more broadcasters in 120 territories.

Strong deals in the key markets: In the top television markets Infront’s marketing strategy has led to impressive results. For instance in host country Germany Infront signed deals with three Free-TV stations – ARD, ZDF, RTL. It also signed a pay TV deal with Premiere. Another important market is France. There it has signed two Free-TV (TF1, M6) and two Pay-TV (Canal+, Eurosport France) agreements.

In soccer mad Brazil, it has signed four Pay-TV
(Bandsports, DirecTV, ESPN do Brazil, Globosat) deals and one free TV (TV Globo) agreement. 77 per cent of Brazilians are eagerly counting down the hours to kick off, a figure exceeded only by the 79 per cent recorded in Mexico and Japan.

Radio coverage of the event is also becoming increasingly important as a category of the overall broadcast. The 2002 World Cup was the first time that radio rights were offered independently and separately from television. The 2006 event continues with this expansion, further acknowledging the growth in radio and its importance as a communication medium.

Around 80 regional and local radio stations will ensure record radio coverage in Germany. In France five stations have done deals while in Brazil the number is 24.

Fifa taps into new media: New media coverage of the event is set to reach new standards. In 2002, new media coverage of the event was limited to the official Fifa website and trial transmissions to mobile phones in Japan. This year fans will be able to receive near-live coverage of the most dramatic and decisive moments of all the 64 matches on their mobile telephony devices or their home computer. More than 100 territories are covered by a New Media license.

Technological inovations: The event will showcase HD technology. Following 2002, this is the second World Cup host broadcast in private hands – a break from the past when this function was handled by the world’s television unions. Infront’s wholly-owned subsidiary, Host Broadcast Services (HBS), is charged with the task of delivery.

2006 will be the first Fifa World Cup produced exclusively in the high definition (HD) 16/9 widescreen format and will be the first major international sport event to commit fully to the format of the future and to showcase it on a significant scale.

All 64 matches will be produced in HDTV and made available in both high and standard definition (SD). While the majority of broadcasters will still broadcast in SD 4/3 the demand for widescreen format and HDTV gains momentum.

Several broadcast partners will pick up the state-of-the-art HD feed produced by HBS and HDTV will be featured in more than 70 territories worldwide, including host country Germany (Premiere), France (TF1, M6), United Kingdom (BBC, ITV), Italy (RAI, Sky Italia), USA (ABC, ESPN), Canada (Rogers Sportsnet), Brazil (TV Globo, Bandsports), Mexico (Televisa, TV Azteca), Japan (Japan Consortium, Sky Perfect), South Korea (KBS, MBC, SBS), and China (CCTV).

HBS produces 2,200 hours of host broadcast coverage, as opposed to 1,200 hours for Korea / Japan 2002, filmed by a total of 170 cameras. Super feeds will include specific team and player coverage to help broadcasters tailor their offering to a national audience at home. 25 HD cameras will capture every moment and nuance of every match.

A serious money spinner: All the marketing and promotional activity is expected to pay off big time. A report from Sportcal.com indicates that the event is on course for profits of €1.1 billion. The estimated €1billion cost of staging the event is far outweighed by revenues from the sale of media rights, sponsorship, merchandise and tickets.

Fifa’s anticipated media rights revenues of €1.2 billion for the 2006 World Cup represent a 34-per-cent increase on the media rights revenues it realised at the 2002 World Cup, held in Japan and South Korea, a less favourable time zone than Germany’s for most of soccer’s top television markets.

The UK’s BBC and ITV are among the largest contributors to overall 2006 World Cup revenues, jointly paying £105 million for the rights for the event. The largest single contribution to 2006 World Cup revenues is coming from ARD and ZDF, the German public-service broadcasters, which jointly agreed to pay €170 million for the television rights to screen the event.

All not hunky dory: There has been criticism in some corners over the aggressiveness of Fifa in terms of merchandising and also regarding ticket sales. A report in Deutsche Wells indicates that this is the first World Cup where Fifa got aggressively into the business side of things. Cracks are said to be forming in its relationship with the German Organising Committee as Fifa allegedly pockets millions from the sales of tickets at the expense of fans.

Fifa has also been strict in the use of branded phrases. Such is the power of Fifa that Hamburg’s AOL Arena has had to remove its name for the duration of the World Cup, since it is not an official partner, as has Munich’s Allianz Arena. The logo on sportswear giant Nike’s headquarters in Frankfurt has also been covered after Fifa took objections to it. German businesses and politicians are furious over Fifa imposed zones around stadiums where only official sponsors can advertise. For example, milk cannot be used on match days in the Coca Cola area.

A recent survey by SID sports news agency showed that a third of Germans are annoyed at the level of commercialisation that Fifa is doing around the World Cup. To offer an example Budweiser is the sponsor of the event and Germans are upset that at the stadium popular German brands will not be allowed. The head of Fifa Sepp Blatter has had to defend the organisation from accusations over the past few weeks that big business concerns are spoiling the spirit of football.

Fifa, not surprisingly, justifies its aggressiveness as each partner pays a lot of money to be associated with it. On an average each partner has forked out around $ 60 million for the 2006 WC. However the fact that there are as many as 15 partners means that there is the danger of clutter. That in fact is a major reason why Phillips had earlier chosen not to renew its deal with Fifa.

‘Sport selling its soul to big business’: That Fifa’s aggressive marketing tactics have not gone down well in some quarters can be gauged from what former German football great Franz Beckenbauer, who is the head of the World Cup organizing committee, had to say. He recently expressed concern that the sport is selling its soul to big business. Therefore he feels that there is need for discussion on the limits of money-making. Blatter countered that by talking about the importance of a mutually beneficial partnerships between Fifa, television and the global economy.

A small but significant example of economic benefit can be seen in England’s pubs. The Independent did an investigation on the phenomenon of the rise in the number of people looking for jobs in pubs up and down the UK. In terms of atmosphere Britain’s pubs are considered to be even better than watching the game live according a job applicant.

On the ground level a report in VOA News indicates that the German government has spent around $7.7 trillion on improving stadiums and transportation infrastructure. The country expects a 1.6 percent increase in its gross domestic product this year, with analysts saying a half per cent of that will be because of the World Cup. Germany is expected to get around four million visitors on account of the event. Each visitor is expected to spend around $400 a day. The World Cup is expected to have generated 60,000 jobs in Germany alone. 20,000 are expected to remain once the event concludes.

A report in The BBC says that “A Time to Make Friends” has been the slogan in Germany and over the past two years the country has striven to spread its message far and wide. Other official messages have included “We Want to Roll out the Red Carpet For You” – the tag for the 6 billion euros invested from both public and private funds in stadiums, hotels, roads and train stations.

It is a chance to portray Germany as a dynamic place to visit or do business

However, there are mixed feelings in Germany about what the economic outcome will be. Germany is looking to show itself as not just a place that is passionate about soccer but also a country that is an excellent tourist destination.

A study, from Postbank claims the additional sales of TV sets, beer, soft drinks, VIP hospitality, sports goods and other WM-themed products will come to between two and three billion euros.

However another report from Germany’s influential DIW economic research institute seeks to puncture this growing optimism, forecasting that the World Cup will not significantly aid the country’s economic situation.

The World Cup, it says, will have a negligible impact on the domestic economy, which for years has been beset by weak demand at home.

June 9, 2006