BesTV acquires Premier League rights for six seasons
Updated: 2013-07-01 17:05
By Zhang Xiang (chinadaily.com.cn)
China's leading Internet protocol television (IPTV) provider, Shanghai-based BesTV, announced on Monday that it has acquired the exclusive broadcast rights for the FA Premier League from 2013 to 2018 on new media television in the Chinese mainland.
The rights were purchased from Super Sports Media Group which has the exclusive live audio visual broadcast rights for matches for the seasons 2010/11-2018/19 in the Chinese mainland and Macao.
BesTV introduced the Premier League in 2010 and has received positive feedback from its users.
According to the announcement, BesTV also injected $1.85 million into Super Sports Media Group through increments of cash, taking 14 percent of stock in the company.
At the same time, BesTV's subsidiary BesTV International (Cayman) Limited will invest $35.15 million to BesTV International (Hongkong) Limited. The investment will be used to expand the overseas business and consumers.
According to the company's annual report in 2012, IPTV revenue takes up 70 percent of its total income. However, the proportion has declined and BesTV is seeking new ways to regain growth.
The company is now considering purchasing the new media broadcast rights of some multiyear entertainment programs and sports events, the announcement said.
It is said that the Premier League broadcasts will help shape its advantages over competitors.
Aside from the football right, BesTV has recently extended the partnership with the NBA to continue broadcasting the games on IPTV in the following three years. s An insider told China Business News that the broadcast rights of the two world top-level sports events will improve BesTV's Average Revenue Per User (ARPU).
The company didn't speculate on future Premier League advertising revenue during its announcement, but it is expected to be high considering profits earned from the China Super League’s broadcast, which costs 80,000 yuan for a 15-second commercial on CCTV-5.
BesTV New Media is jointly held by Radio and Television Shanghai and Shanghai Media Group. It went public on the Shanghai Stock Exchange in 2011.