CNTV to resell 2012 Olympics broadcast online rights (marbridgeconsulting.com)

9 June 2012 11 h 49 min Comments Off

A source at an online portal site involved in talks with China Central Television (CCTV)’s national online TV station, CNTV, reported to the National Business Daily today that CNTV will resell new media broadcast rights to 2012 London Olympics coverage according to a three-tiered system of plans.

. Plan A, priced at RMB 55 mln, includes live broadcast, on-demand broadcast, and CCTV program coverage of the games.

Plan B, priced at RMB 35 mln, offers live and on-demand coverage

. while Plan C, at RMB 28 mln, offers only on-demand coverage.

Last September, CNTV deputy general manager Xia Xiaohui said that CNTV would not resell its Olympic coverage rights. Xia said the International Olympic Committee had expressed its displeasure with CCTV International Networks’ previous resale of coverage rights, stating that it considered only CCTV and CNTV’s platforms to be in compliance with IOC requirements.

Doubts were shed on this, however, when the chief editor of an online portal said Xia’s remarks were intended purely as a way to draw interest and set favorable negotiating conditions for CNTV prior to resale talks. “Going by the experience of the World Cup,” the editor said, “CNTV will announce its sales policy at the last moment, as a way of buying time while it attracts advertisers.”

CNTV has not revealed publicly how much it paid for new media rebroadcast rights to the 2012 Summer Games, but industry speculation puts the total cost to CCTV and CNTV at RMB 200 mln, at least, for full coverage rights in Mainland China and Macau.

In addition to rights costs, CCTV will also bear bandwidth costs. For the World Cup, the portal editor estimated, bandwidth requirements for live and on-demand coverage were likely 300 Gb, billed monthly at RMB 50,000 per month, resulting in a likely total of RMB 15 mln for bandwidth costs, not including server costs and other expenses.

A source inside CNTV confirmed that the company will open its broadcast streams to portal sites and video sites this year, as the result of cost pressures, rather than forcing sites to embed CNTV’s own video player.

“Internally, CNTV is exploring the scope and the overall environment for new media rebroadcast rights reselling,” the source said, “as well as the scale of what this will bring in.”

Reportedly, no portal sites have yet signed deals for any of the licensing packages.

Tencent (0700.HK) had reportedly intended to sign a deal for Plan A, but is still in talks with CNTV regarding price, as Plan A also includes rights to the Euro Cup, which Tencent had already purchased from CCTV Sports. In its Euro Cup 2012 coverage plan announcement in April of this year, Tencent said it would be CCTV’s sole internet platform partner for the event. A source inside Tencent revealed that CEO Pony Ma had announced internally that the company’s goals for Olympic coverage would be: #1 in traffic, #1 in ad revenue, and #1 in influence. Wang Yongzhi, Tencent’s deputy chief editor, said that the company would invest several hundred million yuan in its coverage of this year’s Olympics, with money going to purchase large volumes of servers and bandwidth, acquire exclusive champion interview content, and build a vast original content team. “Tencent will identify potential medalists and secure exclusive interviews with them,” Wang said, adding that the company had already signed 80% of the necessary agreements.

Rival portal Sohu (Nasdaq: SOHU) will focus on competing through differentiation. Liu Chun, Sohu chief editor and COO of Sohu Video, will oversee Olympic coverage, and has arranged for Sohu Sports and Sohu Video to work in close concert. In addition to competing for event coverage rights and medalist media resources, Sohu will also debut a self-produced drama series, Xi You Lundun Ji (“Journey to the West End”) (http://london.sohu.com/). The company has also joined with more than 30 major media outlets to form an Olympic reporting alliance for front-line interviews and reporting.

Portal Netease (Nasdaq: NTES) meanwhile, will offer Lundun Shi Ri Tan (“Ten Days of Chats in London”), an original talk show hosted by deputy chief editor Yan Qiang.

Sina (Nasdaq: SINA) has not yet announced its Olympic strategy.

Sources: National Business Daily, marbridgeconsulting.com (08/06/2012)

Related posts:

Comments are closed

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (chinadaily.com.cn, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (chinadaily.com.cn, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal 36kr.com said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (chinadaily.com.cn, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →