Vietnam Television (VTV) and Infront Sports & Media have finally reached an agreement on the purchase of the copyright of the 2018 FIFA World Cup, just nearly one week before the World Cup commences.
Infront Sports & Media, an intermediary partner for FIFA, also known as International Federation of Association Football is holding the copyright of the 2018 FIFA World Cup of 26 countries and territories, mainly in Southeast Asia, South Asia and Central Asia including Vietnam.
This is one of the most difficult purchase of World Cup’s copyright so far. At one point, fans had to think of the chance of having no World Cup broadcasting in Vietnam this year as Vietnam is the last member out of 219 countries and territories of FIFA to acquire the right to broadcast World Cup 2018.
Vingroup has stepped up to support VTV with $5 million, supposedly half of what VTV paid for the copyright of the 2018 FIFA World Cup. In addition, the corporation also spent $1 million buying some commercial timeframe before and after the live report of World Cup 2018.
By yesterday night , VTV has received the approval of FIFA, to own the rights to broadcast all 64 matches in Vietnam.
"In Vietnam, football is a king sport that is meaningful for the people, even helping to cement the spirit of national solidarity. Thus, being able to contribute to satisfying the passion of millions of Vietnamese is absolutely worth doing. Moreover, at Vingroup, community-based activities are always encouraged and implemented, so funding for the purchase of World Cup 2018's copyright is appropriate and consistent with our mission "For a better life for the Vietnamese",” said Nguyen Viet Quang, Vice Chairman cum Ceo of Vingroup.
This delay comes from the extremely high offer price of the 2018 FIFA World Cup's copyright distributed by Infront Sports & Media. Nguyen Van Nam, editor-in-chief of VTV, said that VTV would lose about 90 percent of its revenue if accepting that price.
According to Nam, all previous big football events like Euro and World Cup, VTV all suffered losses as advertising revenue is not enough to pay for copyright as well as production costs of the program.
Specifically, Infront Sports & Media initially offered the price of $15 million for the copyright of World Cup 2018 in Vietnam, which is double the price in 2014. Nevertheless, VTV only agreed to pay for less than $10 million and did not plan to own the copyright at all costs making the deal lasting for a long time until now.
In 2006, the price of World Cup's copyright purchased by Vietnam was $2 million. In 2010, the price increased to $2.7 million and in 2014, it grew to $7 million.
Four years ago, when the World Cup 2014 in Rio, Brazil took place, with the broadcasting rights in hand, VTV launched an extremely high commercial price list. Particularly, 30-second advertising bloc during the qualifying round between 2am to 8am time frame costed $6,550 and at the time frame of 23pm it costed $7,930.
Beginning in round 1/8, each 30 second advertising bloc increased to $11,000. Also from the quarterfinals, semifinals and third prize round, the price was from $11,000 to $13,200. The commercial price for the final round set a record as each 15 second advertising bloc was $11,900, and each 30 seconds was $15,400.
Experts said that from these figures, people can calculate the gains or losses of VTV from the purchase of copyright to broadcast World Cup event.
The 2018 FIFA World Cup will be held from June 14 to July 15. From the opening round to the final round, there will be a total of 64 matches, which will take place in 12 stadiums in 11 cities across Russia. The copyright that Vietnam purchased allows VTV to broadcast all 64 matches on the channels of VTV.