VTV would entirely recover the price to broadcast the 2018 World Cup

23:43 | 12/06/2018
Immediately sharing the rights to broadcast the 2018 World Cup to other domestic television and paid televisions such as HTV, Viettel, FPT, and shouting the price up to VND250 million for a 10-second advertising slot, it seem like that VTV has a strong effort to recover the price of the broadcasted rights as well as to seek a great profit from the world largest football league.
vtv would entirely recover the price to broadcast the 2018 world cup
VTV announced to own the right to broadcast the 2018 World Cup. Photo: thethaovanhoa.vn

Price may be seven times higher than in 2006

VTV has just announced record advertising prices for the World Cup's final matches, including VND250 million ($11,013) for a 10-second advertising slot, VND300 million ($13,215) for a 15-second slot, VND375-million ($16,519) for a 20-second slot, and VND500-million ($22,026) for a 30-second slot. These prices increased by 40 per cent against those in 2014.

After nearly two years of strained negotiations over the price of the broadcasting rights for the 2018 World Cup, VTV at 6.30 PM on June 8 officially announced agreeing on a deal.

Soon after VTV announced holding the TV rights, zing.vn quoted Nguyen Ha Nam, chief of VTV Secretariat and Editorial Board, saying that Vingroup supported $5 million for the deal. However, Nam did not reveal the actual price of the contract.

On the same day, Viettel Group’s representative also confirmed to zing.vn that the corporation also chipped in to close the stressful negotiations. The representative also revealed the total value of the deal is estimated at $14-15 million, double the price of the 2014 World Cup’s TV rights, and seven times higher than the 2006 World Cup ($2 million).

VTV may easily recover its expenses

In an interview with VTV on June 5, Nam said that accepting the offer of Infront Sport & Media AG would make VTV lose up to 90 per cent of the cost. Nam also affirmed: “Revenue from advertising in large leagues has never been enough to recover the cost of broadcasting rights.”

Additionally, with new advertising prices, VTV would be entirely capable of recovering its expenses and even make a hefty profit from the world’s largest football league as earning VND1-1.5 billion ($44,052-66,079) per advertising minutes.

docbao.vn quoted an advertisement expert saying that VTV may have a detailed business plan on broadcasting the football league. The only television with exclusive broadcasting rights over the 2018 World Cup in Vietnam is never unprepared and inviting advertising partners as well as drawing up a financial plan must have been underway for a while now.

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“I believe that VTV has concluded the negotiations with Infront Sport & Media for a long time and could have promotion and advertising deals already in the bag,” the representative added.

Furthermore, the $5 million support from Vingroup and the unrevealed sum from Viettel also removed some of the financial burden from VTV. If the broadcasting price is $14 million, VTV may pay less than $7 million. In addition, Vingroup also paid an extra of $1 million for advertising slots before and after the matches.

During the 2014 World Cup advertising prices in Vietnam went through the roof, with VND150 million ($6,607) for a 30-second advertisement slot at 2-8 AM, and VND180 million ($7,929) for a similar slot at 11 PM. During the quarterfinals, semifinals, and the finals, prices went up to VND250-300 million ($11,013-13,215).

Zing.vn stated that if advertising prices remain the same as four years ago, VTV could recover the price of the TV right by nine minutes of commercials for each match.

Thus, VTV’s representatives may have fibbed what saying the corporation could not recover the cost of broadcasting rights. Maybe VTV will also make bank on its programmes and services related to the football league.

By Van Anh

Based on MasterCMS Ultimate Edition Ver 2.8 2018