VietNamNet Bridge – Many Vietnamese people want to find out more about AVG which managed to amek the Vietnam Football Federation (VFF) part with its long-standing partner, the national television station (VTV)?

 

Sport broadcast right controversies

Exclusive broadcasting rights hit football audience

1 million people sign to protest cable TV channel

 

What is AVG?

 

AVG’s Chair Pham Nhat Vu (photo: Tuoi Tre)
The local media has recently reported the appearance of AVG, a new media firm which has not launched any product but it is anticipated to be a redoubtable rival for any broadcaster, even the national television station.

 

AVG is the abbreviation of Audio Visual Global. At AVG’s introduction party in September 2010, its Chair Pham Nhat Vu said that AVG’s legal capital is VND1.4 trillion ($73.6 million). However, Vu recently stated that AVG’s capital rose to VND1.8 trillion, raised from six main shareholders, including An Vien Group.

 

Vu was not named in the list of 100 richest people in the Vietnamese stock market but in the local business circles, he is known as the younger brother of Pham Nhat Vuong, Chairman of Vincom Group, the richest man in Vietnam at present, based on his stocks.

 

AVG’s largest shareholder is An Vien Group, which is owned by the Pham family. AVG has got broadcast licences for using digital technology. This is the first private firm in Vietnam that is permitted to broadcast television programs.

 

AVG tested its service on October 10. AVG’s television channels are not available now because AVG doesn’t sell set top boxes yet.

 

The worry of sports federations

 

Several months ago the Ministry of Culture, Sports and Tourism held a meeting with representatives of sports federations in Vietnam, which is presided over by Deputy Minister Nguyen Danh Thai.

 

At the meeting, the Ministry asked sports federations to cooperate with AVG by selling broadcast right of their sports events to AVG for 20 years.

 

Officials of some federations are very happy with this “instruction” because they have never earned a penny from television broadcasters. Officials of some other federations - because their terms are only five years - do not dare to sell broadcast right to AVG for up to 20 years.

 

Some federations raise the question that if AVG holds the broadcast right of sports events but it doesn’t have any TV channels yet, where will it broadcast these events?

 

Some of the questions were answered after VFF signed a contract with AVG to sell the broadcast right of the national football championship V-League for 20 years. The contract will be made public on December 18.

 

Accordingly, VFF will not have to worry about losses in the future if V-League develops because the contract allows VFF to re-negotiate the terms to fit with the actual situation.

 

If VFF earned only VND3 billion from selling the broadcast right of V-League 2010 to VTV, it will receive VND6 billion from AVG next year. From 2012, the pay will increase by 10 percent annually. If V-League develops well, VFF has the right to force AVG to change the contract value.

 

but purchasing broadcast right of all sports in Vietnam in 20 years is only one business of this firm. The total spending for this is only a dozen of billion dong a year, which is very small compared to AVG’s potential.

 

The remaining question of sports federations about AVG’s output. According to Tuoi Tre Daily, AVG is willing to share the broadcast right of V-League 2011 to other broadcasters at reasonable prices, without profit.

 

2015

 

What is the goal of AVG? Its business strategy covers the period up to 2015. That’s the time Vietnam will put an end to analog television technology. At that time, the audience will be able to watch TV through cables or digital set top boxes.

 

The following piece of information was posted on a forum of fans of digital TV services: “On May 27, 2010, SES World Skies (subsidiary of SES Group, which is based in the US and the Netherlands and a leading provider of satellite services in the world) announced signing of a long-term agreement with AVG to supply TP on NSS-6 satellite for AVG’s DTH satellite TV service in Vietnam. AVG plans to provide more than 80 TV channels in Vietnam”.

 

Experts said that with its strong financial potential, once AVG finalizes its digital broadcast network in Vietnam, state-owned broadcasters will face difficulties.

 

AVG’s preparation for 2015 not only includes the purchase of broadcast right of sports in Vietnam, quietly investing in infrastructure facilities but also lures outstanding personnel of big broadcasters.

 

AVG’s Chair Pham Nhat Vu told Tuoi Tre that AVG will organize a press conference on December 18 to release necessary information about AVG.

 

PV