Tencent Garners View Despite Lack Of TV Rights For the World Cup.
Tencent seems to be making some amazing revenue during the World Cup as its advertising revenue during this world phenomenon, even while it cannot match the total amount of 1.5 billion Yuan (US$242 million) of state broadcaster CCTV, Chinese internet giant Tencent has manage to garner around a third of the 700 million yuan (US$112 million) in revenue generated from advertising placed on the internet video sites for the tournament, which was recently reported by the Communist Part mouthpeice People’s Daily.
Compared to that of the CCTV, which won the honer for the TV broadcasting rights for the World Cup but declined to resell live broadcasting rights for online video sites, the audience size for these online video sites seem much smaller. People wanted to watch the game sonline sites can only seem them 90 minutes after they have finished at the earliest.
Although, as these sites have manage to prepare for the launching programs for reviews or comments on certain popular games in the World Cup, their advertising revenue seems to be significant.
Furthermore, there refusal so resell its live TV rights towards other media, CCTV has also manage to step up its game when it comes down to committing crackdowns on any infringements upon its rights. During the previous World Cup four years ago, many online video sites, which were awarded with the rights to broadcast the games live by CCTV had made some quite the hefty profit in doing so. CCTV was not feeling generous enough to share this year it seems.
People’s Daily stated that for the previous World Cup during 2010 CCTV had shared their TV rights with six online streaming sites, these included Tudou and Youke, earning a total of 100 million yuan (US$16 million). Although, the TV rights sharing revenue lagged far behind its advertising revenue which was worth a total of 1 billion yuan (US$160.3 million).
With the terms of sharing TC rights with the increasing popular internet media, CCTV is facing some grave threat from rising popularity of Internet services and smartphones, with its advertising revenue becoming seriously impacted due to a shrinking audience base.
The Director of CCTV’s sports channel, Jiang Heping, stated during a press release that the revenue from TV right sharing had become overwhelmingly dwarfed by advertising revenue, generated at the time when CCTV did not share TC rights, and reflected upon why the network decided not to share the rights this time around.
While those online video sites cannot show the games live anymore, they have manage to find alternative ways by producing special feature content on certain highly anticipated matches and employing journalist to review the games, which has gained them some amazing viewership.
Tencent is one of the many beneficiaries of this recent trend in which the self-produced content related to the World Cup has created a lot of business opportunities. Sina is another group to also join in on this lucrative business, generation a total of 100 million yuan (US$16 million) in advertising revenue, while other online video sites reported more than 10 million yuan (US$1.6 million) each in advertising revenue.