TV networks quarrel over revenue sharing during World Cup

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)