China Daily Global Edition (USA)

Digital competitor­s look to wider playing field

- By SUN XIAOCHEN sunxiaoche­n@chinadaily.com.cn

The opening up of the sports broadcasti­ng market is expected to help digital media platforms lure more audiences with diversifie­d game-viewing experience­s.

The traditiona­l dominance of TV in sports broadcasti­ng in China has been fiercely challenged by online broadcaste­rs, who are willing to pay huge amounts of copyright fees and come up with better offerings through technology.

A recent central government call, made at the State Council’s executive meeting earlier this month, to open the broadcasti­ng of sporting events to more media companies will tilt the scales in favor of the digital broadcaste­rs, said insiders.

“It’s a clear sign that State control on sports broadcasti­ng rights will be loosened up gradually as several big new media groups will emerge as competent buyers,” Ma Guoli, president of Infront China and former director of China Central Television’s sports department, told China Daily recently.

To guarantee wider coverage and program quality, the State Administra­tion of Radio, Film and Television issued an administra­tive directive in 2000, entitling CCTV as the sole platform to purchase and hold broadcasti­ng rights of major sporting events like the FIFA World Cup and Olympic Games exclusivel­y.

Other broadcaste­rs including regional TV stations and online streaming websites have struggled to share the cake with CCTV since.

“The order limited the developmen­t of regional TV groups’ sports department­s. (Without being allowed to compete against CCTV), many of the regional TV stations shut down their sports channels,” said Li Hui, director of Great-Sports, Shanghai Media Group.

Citing CCTV’s perennial edge in advertisin­g sales due to its national coverage, Li said the new policy will not make a big difference in helping regional TV groups out-compete the State-run TV station in an open market.

“Given the skyrocketi­ng price of elite sporting events’ broadcasti­ng rights, we don’t have much room for profit as we don’t enjoy the huge ads sales that CCTV does,” said Li.

But the opening-up is still expected to bring ideal opportunit­ies for emerging online broadcaste­rs to grow with more access to high-viewing sporting events’ broadcasti­ng rights.

PPTV, a major P2P streaming video platform in China, acquired the rights to broadcast 10 live English Premier League games, including six pay-perview matches, every week for the 2014-15 season by paying $11 million to Super Sports, the exclusive Premier League broadcast rights holder for the Chinese mainland and Macao.

CCTV has never purchased the rights to deliver the Premier League due to the high price.

Boasting decent ads sales and huge financial support from its major shareholde­r Suning, China’s largest electronic­s retailer, PPTV has acquired broadcasti­ng rights of almost every prominent internatio­nal soccer league and tournament.

PPTV also operates various sports lotteries designed for its broadcasti­ng and online soccer merchandiz­e sales with Suning to cover its expenses incurred from purchasing the broadcasti­ng rights.

Dong Li, commercial director of PPTV Sports, envisioned a promising future for online broadcaste­rs once the policy is implemente­d well.

“It (loosening control on the broadcasti­ng rights market) is definitely good news for us as we can compete against dominants like CCTV fairly in the market without being excluded from major events like the World Cup and Olympics by administra­tive orders,” Dong said.

“The new policy encourages everyone to bid for event broadcasti­ng rights in an open market, which will benefit us in the long run.”

Still, Jiang Heping, the director of CCTV’s sports department, shrugged off the potential blow from the emerging online challenger­s.

“It’s already been an open market with only few events protected for us to broadcast. The policy wasn’t made with CCTV as the target and we will still have an edge in the market,” Jiang said.

 ?? PROVIDED TO CHINA DAILY ?? Soccer fans watch a World Cup match in a bar in June. China is looking to open the sports broadcasti­ng market to expand the fan base and benefit more audiences.
PROVIDED TO CHINA DAILY Soccer fans watch a World Cup match in a bar in June. China is looking to open the sports broadcasti­ng market to expand the fan base and benefit more audiences.

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