Jun 26, 2008

Construct a new buy only after looking at the Distribution of a channel

It’s pretty clear that the strategy of buying a key sports property and then try to build distribution doesn’t work, specially is vast countries like India and China.
The recent Win TV debacle exemplifies that.
Less than 20,000 have signed up for Win TV’s EPL coverage, on which USD 50 Million was spent as procurement money for the rights.
The projections were 1.2 million which is much lesser than the CCTV carried 10 Million.
This clearly shows that the current situation of the Guandong broadcaster is not in place given the CCTV driven environment.
MU carries many brands on its back ranging from Budwiser to Air Asia now , getting 50 million USD from Win TV will not suffice EPL ambitions as it definitely wants to promote itself and the brands riding on it as well. An EPL spokesperson meanwhile pointed out that they are just 6 months into a 3 year contract and things can still change.
All the best!!

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