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Nimbus threatens to pull out of BCCI deal

Analoguesat

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#1
From Biz Asia


Nimbus today threatened to pull out of its Rs 2,714 crore five-year telecast deal with the Board of Cricket Council of India (BCCI) over a encryption signal row.

Nimbus has left the board to sort out the matter with the government after state broadcaster Doordarshan was allowed telecast of Indian cricket. Nimbus has been angered over Doordarshan's unencrypted signal being reached to parts outside of India.

Sources close to the development said that the BCCI had received a letter from Nimbus expressing its concerns over the encryption of signals.

However, BCCI President Sharad Pawar, sought to downplay the development.

He acknowledged that a letter had indeed been received from Nimbus, but added that it only expressed resentment on certain issues and was not a threat to pull out.

"There is no problem with the Ordinance for us and Nimbus. We completely agree with that. But there are certain technicalities; the signals are going out of India to the Gulf and other places, which is affecting the revenues of Nimbus and the BCCI," Pawar said before the BCCI meeting.

The dispute is over the fact that when Nimbus signed the deal with BCCI, there was no clause about mandatory sharing of cricket feed with Doordarshan.

But with the government issuing the sports Ordinance that makes it mandatory for all private sports channels to share feed, Nimbus complained that there will be an adverse effect on the projections of its advertising revenue.

As a result, Nimbus demanded that the bid amount be reduced for the five-year telecast rights of all first class cricket in India.

Nimbus also fears that without proper encryption of signals, there is chance of piracy and wants Prasar Bharati to engage in the process.

"As long as Doordarshan runs unencrypted signal we have a problem," Nimbus CEO Harish Thawani said after the BCCI meeting in the evening.

He did not elaborate.

Meanwhile, the BCCI has set a five-member committee comprising Lalit Modi, IS Bindra, N Srinivasan, Shashank Manohar and Arun Jaitley, to look into the issue.

Article from Business Standard
 

kreacher

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Neo Sports sure got screwed. I wonder if BSkyB were forced to share EPL matches when they got the TV rights in 1992.
 

rohit0103

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LS passes bully broadcast bill
ttp://www.ibnlive.com/news/sports/03_2007/ls-passes-bully-broadcast-bill-35540.html

Lok Sabha has approved a bill, making mandatory the sharing of live feed of all national sporting events by private TV channels with Doordarshan.
 

Analoguesat

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Thats blown the value of any big sports events right out of the water - no-one is going to pay huge amounts of money for exclusive coverage rights when they have to give DD a freebie.

Indian sports will be the loser in the long term mark my words.
 

rohit0103

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Analoguesat said:
Thats blown the value of any big sports events right out of the water - no-one is going to pay huge amounts of money for exclusive coverage rights when they have to give DD a freebie.

Indian sports will be the loser in the long term mark my words.
and with big players pulling out..tech and quality will go out of window..DD doesnt have the infra to hand out decent transmission..it will be back to 3 camera over the whole stadium, 4-delivery overs(missing 1st and 6th due to advt) ..sucky commentary (Cricket 2005 has better comments that our "experts" on DD).. pathetic analysis...its like feudal era..where the Lord got 70% while sitting in his mansion..doing nothing ..and peasant got 30% of his produce, for toiling away all year long..

http://www.business-standard.com/iceworld/storypage.php?tab=r&autono=277124&subLeft=4&leftnm=8

With about 15 million TV homes in West and East Asia ready to receive un-encrypted sport signals beamed by Prasar Bharati on its direct-to-home (DTH) service, Neo Sports, which has bought for Rs 2,714 crore the rights for all cricket matches in India for five years, stands to lose more than Rs 600 crore in the next three years.

i think..this will be an end of start-up sports channel NEO..and will serve as warning to espn, star sports etc..not to bother abt cricket..and also, to their delight, since a competitor is being wiped out..which could have been a threat in future..
 

kreacher

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Oh great. I was hoping someone would have enough sense to look past the next elections but I guess I was expecting too much.
No one will pay more than bargain prices for cricket broadcast rights (or any sport broadcast rights where Indians are competing). Which will only mean less revenue from TV rights for India sports. You just need to look at the English Premier League to see how much TV rights and marketing have benefited them.