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A record number of deals: What
is helping television viewership in
this regard is the sheer number of
deals that have been done by football's
governing body Fifa's marketing agency
Infront. Besides getting deals which
will ensure the event gets viewed
in over 200 countries, InFront has
also signed deals with more than one
broadcaster in key territories like
Germany.
The World Cup is projected to get
a cumulative viewing global audience
of 32.5 billion. This marks a 10 per
cent increase compared to 2002. For
2006, there will be more than 500
broadcast partners including 240 television
licensees, a record number of 220
radio stations and more than 50 New
Media Licensees (Mobile Telephony
and Internet). By comparison, the
2002 event was transmitted by 300
broadcast partners.
Distribution
has been handled on an open-market
basis. This offers viewers variety
and choice in how they watch the event
and an exciting array of production
advances to add to their enjoyment.
Infront achieved these record results
through 'layering' different television
offerings for the various markets
worldwide. The event will be shared
between a broad range of distribution
platforms, offering viewers a variety
of options. Infront has contracted
with two or more broadcasters in 120
territories.
Strong
deals in the key markets: In the
top television markets Infront’s
marketing strategy has led to impressive
results. For instance in host country
Germany Infront signed deals with
three Free-TV stations - ARD, ZDF,
RTL. It also signed a pay TV deal
with Premiere. Another important market
is France. There it has signed two
Free-TV (TF1, M6) and two Pay-TV (Canal+,
Eurosport France) agreements.
In
soccer mad Brazil, it has signed four
Pay-TV
(Bandsports, DirecTV, ESPN do Brazil,
Globosat) deals and one free TV (TV
Globo) agreement. 77 per cent of Brazilians
are eagerly counting down the hours
to kick off, a figure exceeded only
by the 79 per cent recorded in Mexico
and Japan.
Radio
coverage of the event is also
becoming increasingly important as
a category of the overall broadcast.
The 2002 World Cup was the first time
that radio rights were offered independently
and separately from television. The
2006 event continues with this expansion,
further acknowledging the growth in
radio and its importance as a communication
medium.
Around
80 regional and local radio stations
will ensure record radio coverage
in Germany. In France five stations
have done deals while in Brazil the
number is 24.
Fifa
taps into new media: New media
coverage of the event is set to reach
new standards. In 2002, new media
coverage of the event was limited
to the official Fifa website and trial
transmissions to mobile phones in
Japan. This year fans will be able
to receive near-live coverage of the
most dramatic and decisive moments
of all the 64 matches on their mobile
telephony devices or their home computer.
More than 100 territories are covered
by a New Media license.
Technological
inovations: The event will showcase
HD technology. Following 2002, this
is the second World Cup host broadcast
in private hands – a break from
the past when this function was handled
by the world’s television unions.
Infront’s wholly-owned subsidiary,
Host Broadcast Services (HBS), is
charged with the task of delivery.
2006
will be the first Fifa World Cup produced
exclusively in the high definition
(HD) 16/9 widescreen format and will
be the first major international sport
event to commit fully to the format
of the future and to showcase it on
a significant scale.
All
64 matches will be produced in HDTV
and made available in both high and
standard definition (SD). While the
majority of broadcasters will still
broadcast in SD 4/3 the demand for
widescreen format and HDTV gains momentum.
Several
broadcast partners will pick up the
state-of-the-art HD feed produced
by HBS and HDTV will be featured in
more than 70 territories worldwide,
including host country Germany (Premiere),
France (TF1, M6), United Kingdom (BBC,
ITV), Italy (RAI, Sky Italia), USA
(ABC, ESPN), Canada (Rogers Sportsnet),
Brazil (TV Globo, Bandsports), Mexico
(Televisa, TV Azteca), Japan (Japan
Consortium, Sky Perfect), South Korea
(KBS, MBC, SBS), and China (CCTV).
HBS
produces 2,200 hours of host broadcast
coverage, as opposed to 1,200 hours
for Korea / Japan 2002, filmed by
a total of 170 cameras. Super feeds
will include specific team and player
coverage to help broadcasters tailor
their offering to a national audience
at home. 25 HD cameras will capture
every moment and nuance of every match.
A
serious money spinner: All the
marketing and promotional activity
is expected to pay off big time. A
report from Sportcal.com indicates
that the event is on course for profits
of €1.1 billion. The estimated
€1billion cost of staging the
event is far outweighed by revenues
from the sale of media rights, sponsorship,
merchandise and tickets.
Fifa’s
anticipated media rights revenues
of €1.2 billion for the 2006
World Cup represent a 34-per-cent
increase on the media rights revenues
it realised at the 2002 World Cup,
held in Japan and South Korea, a less
favourable time zone than Germany’s
for most of soccer’s top television
markets.
The
UK’s BBC and ITV are among the
largest contributors to overall 2006
World Cup revenues, jointly paying
£105 million for the rights
for the event. The largest single
contribution to 2006 World Cup revenues
is coming from ARD and ZDF, the German
public-service broadcasters, which
jointly agreed to pay €170 million
for the television rights to screen
the event.
All
not hunky dory: There
has been criticism in some corners
over the aggressiveness of Fifa in
terms of merchandising and also regarding
ticket sales. A report in Deutsche
Wells indicates that this is the
first World Cup where Fifa got aggressively
into the business side of things.
Cracks are said to be forming in its
relationship with the German Organising
Committee as Fifa allegedly pockets
millions from the sales of tickets
at the expense of fans.
Fifa has also been strict in the use
of branded phrases. Such is the power
of Fifa that Hamburg's AOL Arena has
had to remove its name for the duration
of the World Cup, since it is not
an official partner, as has Munich's
Allianz Arena. The logo on sportswear
giant Nike's headquarters in Frankfurt
has also been covered after Fifa took
objections to it. German businesses
and politicians are furious over Fifa
imposed zones around stadiums where
only official sponsors can advertise.
For example, milk cannot be used on
match days in the Coca Cola area.
A
recent survey by SID sports news agency
showed that a third of Germans are
annoyed at the level of commercialisation
that Fifa is doing around the World
Cup. To offer an example Budweiser
is the sponsor of the event and Germans
are upset that at the stadium popular
German brands will not be allowed.
The head of Fifa Sepp Blatter has
had to defend the organisation from
accusations over the past few weeks
that big business concerns are spoiling
the spirit of football.
Fifa,
not surprisingly, justifies its aggressiveness
as each partner pays a lot of money
to be associated with it. On an average
each partner has forked out around
$ 60 million for the 2006 WC. However
the fact that there are as many as
15 partners means that there is the
danger of clutter. That in fact is
a major reason why Phillips had earlier
chosen not to renew its deal with
Fifa.
'Sport
selling its soul to big business':
That Fifa's aggressive marketing
tactics have not gone down well in
some quarters can be gauged from what
former German football great Franz
Beckenbauer, who is the head of the
World Cup organizing committee, had
to say. He recently expressed concern
that the sport is selling its soul
to big business. Therefore he feels
that there is need for discussion
on the limits of money-making. Blatter
countered that by talking about the
importance of a mutually beneficial
partnerships between Fifa, television
and the global economy.
A
small but significant example of economic
benefit can be seen in England's pubs.
The Independent did an investigation
on the phenomenon of the rise in the
number of people looking for jobs
in pubs up and down the UK. In terms
of atmosphere Britain's pubs are considered
to be even better than watching the
game live according a job applicant.
On
the ground level a report in VOA
News indicates that the German
government has spent around $7.7 trillion
on improving stadiums and transportation
infrastructure. The country expects
a 1.6 percent increase in its gross
domestic product this year, with analysts
saying a half per cent of that will
be because of the World Cup. Germany
is expected to get around four million
visitors on account of the event.
Each visitor is expected to spend
around $400 a day. The World Cup is
expected to have generated 60,000
jobs in Germany alone. 20,000 are
expected to remain once the event
concludes.
A
report in The BBC says that
"A Time to Make Friends"
has been the slogan in Germany and
over the past two years the country
has striven to spread its message
far and wide. Other
official messages have included "We
Want to Roll out the Red Carpet For
You" - the tag for the 6 billion
euros invested from both public and
private funds in stadiums, hotels,
roads and train stations.
It is a chance to portray Germany
as a dynamic place to visit or do
business
However, there are mixed feelings
in Germany about what the economic
outcome will be. Germany is looking
to show itself as not just a place
that is passionate about soccer but
also a country that is an excellent
tourist destination.
A
study, from Postbank claims the additional
sales of TV sets, beer, soft drinks,
VIP hospitality, sports goods and
other WM-themed products will come
to between two and three billion euros.
However
another report from Germany's influential
DIW economic research institute seeks
to puncture this growing optimism,
forecasting that the World Cup will
not significantly aid the country's
economic situation.
The
World Cup, it says, will have a negligible
impact on the domestic economy, which
for years has been beset by weak demand
at home.
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