TV stations compete for live-to-air rights

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