Escalating Costs of Broadcasting FIFA World Cup 2010
Are football fans willing to pay through their noses for a dose of their favourite programme on television? According to news reports, SingTel and StarHub have indicated that the cost for the rights to broadcast the 2010 FIFA World Cup has escalated significantly and are still in negotiations with FIFA on a more platable pricing for the broadcast rights. Interesting, the bid submitted to FIFA is a joint effort by Singtel and Starhub that provides FIFA with an increase in value for the rights from that negotiated for the previous World Cup 2006. In negotiating a deal, because of FIFA's confidentiality provisions, the telcos have said they are unable to disclose much details other than that "in an attempt to reach a value that is acceptable to FIFA to bring World Cup to Singapore, the price offered to FIFA would sacrifice all World Cup margins for both SingTel and StarHub while keeping the price affordable for consumers." What is the scale of FIFA's demands? One s