TV networks quarrel over revenue sharing during World Cup

JAKARTA (JP): Four television networks in Indonesia have divided up the broadcasting rights to the upcoming World Cup soccer tournament although there remains a dispute over how to divide the advertising revenues.

The state-owned TVRI, which purchased the sole broadcast rights to all 52 matches, has agreed to share them with three private networks, but is asking for a hefty fee in return, knowing full well that the commercial stations will reap dividends from advertising revenue through live World Cup broadcasts.

TVRI cannot by regulation raise income from advertising and is financed through TV licenses as well as monthly contributions from the private networks.

"We are asking for about 30 percent of the advertising revenues from the World Cup broadcasts," M.P. Tampubolon, head of the sports section of TVRI, said at a joint press conference with the other three networks involved -- RCTI/SCTV and TPI -- yesterday.

TVRI is paying about US$260,000 to the Asian Broadcasting Union for the right to broadcast World Cup matches live between June 18 and July 18.

But it is only planning to broadcast the opening and closing matches plus 14 others. The rest have been divided among the three networks, and they are expected to pay their share of the fee.

RCTI and SCTV, for example, will pay $77,000 for 16 matches. TPI has been allocated 20 matches.

Eduard Depari, public relations chief of RCTI, said his company objected to paying more since it has already paid the fee as well as the monthly contribution to TVRI.

"We're still negotiating the issue," said Eduard, whose network claims to be the World Cup network.

"Claiming to be the World Cup network is fine because they are only trying to attract more advertising," Tampubolon said.

The other private network, AN-TV, is not involved in the World Cup business, but is instead preparing its exclusive right to broadcast the Thomas and Uber Cups badminton finals which open here today, also equally lucrative events in terms of advertising revenue.

RCTI has hiked its advertising rates for the World Cup matches. "I think it is usual to raise rates for such events. The producers will understand," Eduard said. (yns)