Posted on 01/22/2010 4:46:46 AM PST by cold start
INTERNET search giant Google has signalled it will compete against broadcasters and other media companies for the rights to sports and entertainment events after confirming it will show live cricket matches on its YouTube video website.
The company has signed a two-year global deal to offer live and on-demand access on YouTube to all 60 matches in the Twenty20 Indian Premier League competition, which begins on March 12. It will also show on-demand content on mobile phones.
The move signals Google's intention to transform YouTube from a video search engine and repository for home-made videos to a global internet and mobile TV channel.
Google Australia head of business development Ryan Hall would not comment on the value of the deal -- which includes all markets except the US -- but said Google would split advertising revenues from the coverage with the IPL.
The global TV rights to the sport, popular with India's cricket-mad 1.1 billion population, sold for $1.2 billion over 10 years.
"We're investing heavily in YouTube and look forward to making similar content more readily to YouTube," Mr Hall said.
IPL chairman Lalit Modi said the deal would make the "new dedicated IPL channel on YouTube the biggest virtual stadium in the world".
Last year YouTube, which has 5.9 million Australian users a month, attracted a global audience of 10 million people to a U2 concert it streamed.
Mr Hall said Google was looking to buy all types of content including entertainment, music and live sport.
The Australian TV rights for rugby union, Australian rules and rugby league all expire over the next three years; meanwhile sporting bodies are expected to demand more for their internet and mobile video rights as Australia's planned national broadband network is likely to make it easier to watching video online.
"We've spoken to a number of the sporting bodies," Mr Hall said.
In Australia, Network Ten has the right to show IPL on its One HD channel for four more years, last year averaging 40,000 to 50,000 viewers per match.
"Viewers prefer to see the broadcast in its full glory on a TV screen," Ten spokeswoman Jeannette McLoughlin said.
"Online and mobile give sports fans the chance to follow the action regardless of where they are."
Sports marketer Damien Stenmark said YouTube would be "lucky to get 10 per cent of that TV audience, but if things heat up in a particular match, people will just dive online and watch it".
"They are going to generate significant revenue," he said.
Almost all new televisions sold in the US this year are expected to come with an internet connection, many with an on-screen YouTube icon allowing viewers to choose to go online or watch a TV channel.
Media companies, already reeling from a downturn in advertising combined with increasing competition for audiences from the internet, are unlikely to welcome the extra competition for content.
But Peter Horgan, managing director of media buying agency OMD, said TV advertising still would be likely to go to the broadcaster as the internet could not offer data as robust as TV ratings.
“Live cricket...”????
Isn’t that an oxymoron?
zzzzzzzzzzzzzzzzzzzzzzzzzzzzzz...............
It's only a matter of time. Then when they do, NFL, NBA, PGA, NASCAR, and Steroid Ball, will be available only on you computer screen................for a fee................
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