TV networks quarrel over revenue sharing during World Cup<\/p>\n
JAKARTA (JP): Four television networks in Indonesia have
\ndivided up the broadcasting rights to the upcoming World Cup
\nsoccer tournament although there remains a dispute over how to
\ndivide the advertising revenues.<\/p>\n
The state-owned TVRI, which purchased the sole broadcast
\nrights to all 52 matches, has agreed to share them with three
\nprivate networks, but is asking for a hefty fee in return,
\nknowing full well that the commercial stations will reap
\ndividends from advertising revenue through live World Cup
\nbroadcasts.<\/p>\n
TVRI cannot by regulation raise income from advertising and is
\nfinanced through TV licenses as well as monthly contributions
\nfrom the private networks.<\/p>\n
"We are asking for about 30 percent of the advertising
\nrevenues from the World Cup broadcasts," M.P. Tampubolon, head of
\nthe sports section of TVRI, said at a joint press conference with
\nthe other three networks involved -- RCTI\/SCTV and TPI --
\nyesterday.<\/p>\n
TVRI is paying about US$260,000 to the Asian Broadcasting
\nUnion for the right to broadcast World Cup matches live between
\nJune 18 and July 18.<\/p>\n
But it is only planning to broadcast the opening and closing
\nmatches plus 14 others. The rest have been divided among the
\nthree networks, and they are expected to pay their share of the
\nfee.<\/p>\n
RCTI and SCTV, for example, will pay $77,000 for 16 matches.
\nTPI has been allocated 20 matches.<\/p>\n
Eduard Depari, public relations chief of RCTI, said his
\ncompany objected to paying more since it has already paid the fee
\nas well as the monthly contribution to TVRI.<\/p>\n
"We're still negotiating the issue," said Eduard, whose
\nnetwork claims to be the World Cup network.<\/p>\n
"Claiming to be the World Cup network is fine because they are
\nonly trying to attract more advertising," Tampubolon said.<\/p>\n
The other private network, AN-TV, is not involved in the World
\nCup business, but is instead preparing its exclusive right to
\nbroadcast the Thomas and Uber Cups badminton finals which open
\nhere today, also equally lucrative events in terms of advertising
\nrevenue.<\/p>\n
RCTI has hiked its advertising rates for the World Cup
\nmatches. "I think it is usual to raise rates for such events. The
\nproducers will understand," Eduard said. (yns)<\/p>",
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