TV stations compete for live-to-air rights

By Brillianto K. Jaya

JAKARTA (JP): On Jan. 16 Indosiar aired a live broadcast of the bout between Mike Tyson and South African challenger, Francois Botha, held at MGM Hotel, Las Vegas, the United States.

Indosiar, a private television broadcasting station owned by business tycoon Sudono Salim nee Liem Sioe Liong, has broadcast world-class professional boxing matches live a number of times. A number of Tyson's fights were aired before the former heavyweight champion was jailed on rape charges.

Indonesian boxing fans also had the opportunity to enjoy live the fight pitting Evander Holyfield against Vaughan Bean and other boxing matches promoted by the entrepeneur Don King.

A much older private television station, RCTI -- in an apparent show of rivalry with Indosiar -- has also aired a number of live-to-air world-class professional boxing matches. These include: the fight between Mexico's Julio Caesar Chaves and Oscar De La Hoya, World Boxing Council (WBC) welterweight champion at Thomas & Mack Center in Las Vegas, Nevada, the United States, on Sept. 18, 1998 and the fight between WBC British heavyweight champion Lennox Lewis and Croatian Zeljko Mavrovic, at Uncasville, Connecticut, the United States, on Sept. 26, 1998.

The "boxing war" between Indosiar and RCTI has been going on for some time. The two stations are archrivals for the purchasing rights of world championship boxing broadcasts. Indosiar was initially on top with it's purchase of broadcasting rights for boxing matches produced by Showtime Event Television, celebrated for it's live-to-air broadcasts of numerous Don King events, including the Tyson-Holyfield bout.

RCTI alleged that Indosiar was successful in the broadcast purchase because it outbid RCTI's offer. Indosiar, which is located in Daan Mogot, West Jakarta, did not deny the allegation because its business principle is that the keenest bidder will always triumph. The entrepreneurial Don King usually sells the live-to-air broadcasting rights of boxing matches to the quickest and highest bidder.

RCTI -- no longer naive about the bidding tactics -- later developed a more aggressive bidding style and was finally successful in purchasing broadcasting rights for a number of live matches.

RCTI and Indosiar are in tough competition with each other, not only concerning the purchase of broadcast rights from Showtime Event Television, but also in their inhouse productions of professional boxing matches. Indosiar airs studio-produced matches Gelar Tinju Profesional (Professional Boxing Show),at 10:30 on Thursdays and Fridays. The commentator is former national champion, Syamsul Anwar, a position previously held by boxing promoter and coach, Daniel Bahari.

So as not to lag behind its rival, RCTI has employed the services of boxing promoter and former boxer, Boy Bolang, to comment on its Sabuk Emas (Golden Belt) show, aired at 10:30 p.m. on Fridays. Indosiar initiated in-house production of boxing matches and is said to hold the greatest audience share.

Other sports

The "war" between private television stations for live-to-air sports events other than boxing is a competitive one. Soccer, tennis, badminton and automotive racing are a few of the sports the stations must vie for.

Each television station usually selects a particular sports segment tailored to their particular audience. While boxing is the choice of Indosiar and RCTI, ANteve prefers to broadcast soccer matches and automotive racing events. SCTV has the basketball market. The goal of these competitions is the same: to retain and pick up viewers, particularly sports enthusiasts.

Recently, however, private TV stations have withdrawn from competing for sports events based on their market segment. Sports programs, more than ever depend, on their financial capacity to buy the rights for selected events. The ongoing monetary crisis has had a major impact on private television stations who depend for survival on the number of commercials they attract.

ANteve -- which prior to the onset of the crisis, aired almost all the world-class professional soccer matches -- can no longer afford the rights. Owned by the Bakrie Group, the station now airs canned sports programs such as Sirkuit Dunia (World Circuit), Sepakbola Dunia (World Football), Asia Sports and Asia Football.

Meanwhile, SCTV and Indosiar are competing for the rights to obtain greater TV market shares by airing live soccer matches from the English Premier League on Saturday and Sunday nights respectively. RCTI currently lacks a rival for its live broadcasts of Series A Italian League football matches every Sunday night.

Live-to-air broadcasting of sports events requires private television stations to fork out substantial sums of money. Currently, live-to-air rights for a foreign sports event costs between US$750 and $20,000. In soccer, for example, a live broadcast costs between $25,000 and $50,000. This price includes payment for the uplink or downlink (the satellite which helps transmit the broadcast from the location of the match to a receiving station and then beams it again to relay stations). Uplinks or downlinks range in price between $10,000 and $12,000, the broadcasting right fee is between $4,500 and $5,000 and production costs (for example a commentator's fee) can be $500.

Planning

Because live-to-airs are expensive, a private television station must be savvy enough to ensure that it will not sustain a loss and hopefully reap a profit.

In developing a business plan for the live broadcast of the recent fight between Tyson and Botha, Indosiar drew up a proposal outlining advertising spot costs. The main sponsor was cigarette company Bentoel which spent Rp 750 million ($88,200). Supporting sponsor Extra Joss, forked out Rp 500 million ($58.800). Other interested sponsors paid Rp 13 million ($1,500) per advertising spot of 30 seconds.

NBA basketball matches broadcast by SCTV are also relatively costly. SCTV usually purchases the broadcasting right from NBA International New York annually at a price of $50,000. This price precludes satellite lease expenses, which are almost as hefty as those of soccer matches.

RCTI was reportedly competing with SCTV to purchase the broadcasting right for NBA matches. However, as "an elder sibling", RCTI finally allowed SCTV to secure this right.

Despite the high costs of procuring live-to-air sports broadcasts and the financial squeeze that all private television stations are experiencing with the ongoing economic crisis, the "war" is likely to continue. Private television stations must continue to accommodate viewers with sports broadcasts.

One important thing that should always be borne in mind is the necessity for sportsmanship and fair play among television stations. All television stations must honor the price already agreed upon by any of them happening to purchase a live broadcast right earlier than the others.

The writer works for a private television