The terrestrial channels were hoping to lay their hands on four key matches, as well as daily highlights, which would mirror the agreement for the previous two World Cups, the rights for which were also held by i-Cable.
However, this time around they apparently balked at i-Cable’s somewhat unusual demand that they also carry the pay-TV channel’s associated advertising and promotional material.
The terrestrials fired back, saying that under those conditions they would not take the content even if it were given for free.
While we may now be spared the spectacle of one media owner running its ads on a rival’s platform, and at no cost, the tussle between the various parties highlights again the direction broadcasting is moving in, and not just in Hong Kong.
The money is still out there - annual TV adspend in Hong Kong last year reached US$1.2 billion - and the vast majority of this still goes to the terrestrial channels. But for how long?
According to PricewaterhouseCoopers’ (PwC) global media outlook, multi-channel ad revenue across Asia is set to increase from 17 per cent in 2007 to 26 per cent by 2012. For Hong Kong, the research anticipates multi-channel adspend will rise from $64 million to $167 million, more than three times the growth rate for TV in general.
One factor for this growth, of course, is content. When it comes to attracting the desired demographics, the pay-TV operators are currently holding the trump cards in terms of content.
The other factor is eyeballs. FMCG advertisers may still be attracted to the mass audience of terrestrial TV, but as PwC points out, this traditional advantage in terms of delivering the the big numbers is declining. Hong Kong’s i-Cable claims overall subscription numbers of more than one million, in a territory of roughly 2.5 million households.
Similarly, StarHub in Singapore now penetrates almost 50 per cent of the island state’s households. The pay-TV upstarts are slowly becoming part of the mainstream in Asia.
For terrestrial channels to survive, investment in future broadcast models is crucial. The roll-out of digital TV will be key. With a broader, multi-channel portfolio, the likes of TVB and ATV will be able to better compete against pay-TV. But this will need them to begin placing the revenues they are currently generating (or not, in the case of ATV) from advertisers into better content, rather than crying foul when they are left empty-handed.
It is worth noting after all that i-Cable’s overall investment in the World Cup is estimated at US$12.8 million - comparatively small change in a billion dollar adspend market.
Got a view?
Email michael.o’neill@media.asia
This article was originally published in the 11 March 2010 issue of Media.
However, this time around they apparently balked at i-Cable’s somewhat unusual demand that they also carry the pay-TV channel’s associated advertising and promotional material.
The terrestrials fired back, saying that under those conditions they would not take the content even if it were given for free.
While we may now be spared the spectacle of one media owner running its ads on a rival’s platform, and at no cost, the tussle between the various parties highlights again the direction broadcasting is moving in, and not just in Hong Kong.
The money is still out there - annual TV adspend in Hong Kong last year reached US$1.2 billion - and the vast majority of this still goes to the terrestrial channels. But for how long?
According to PricewaterhouseCoopers’ (PwC) global media outlook, multi-channel ad revenue across Asia is set to increase from 17 per cent in 2007 to 26 per cent by 2012. For Hong Kong, the research anticipates multi-channel adspend will rise from $64 million to $167 million, more than three times the growth rate for TV in general.
One factor for this growth, of course, is content. When it comes to attracting the desired demographics, the pay-TV operators are currently holding the trump cards in terms of content.
The other factor is eyeballs. FMCG advertisers may still be attracted to the mass audience of terrestrial TV, but as PwC points out, this traditional advantage in terms of delivering the the big numbers is declining. Hong Kong’s i-Cable claims overall subscription numbers of more than one million, in a territory of roughly 2.5 million households.
Similarly, StarHub in Singapore now penetrates almost 50 per cent of the island state’s households. The pay-TV upstarts are slowly becoming part of the mainstream in Asia.
For terrestrial channels to survive, investment in future broadcast models is crucial. The roll-out of digital TV will be key. With a broader, multi-channel portfolio, the likes of TVB and ATV will be able to better compete against pay-TV. But this will need them to begin placing the revenues they are currently generating (or not, in the case of ATV) from advertisers into better content, rather than crying foul when they are left empty-handed.
It is worth noting after all that i-Cable’s overall investment in the World Cup is estimated at US$12.8 million - comparatively small change in a billion dollar adspend market.
Got a view?
Email michael.o’neill@media.asia
This article was originally published in the 11 March 2010 issue of Media.
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