Is a ‘consortium’ the answer?

Our last column mentioned the probability that the government-controlled television networks would work together to bag the Philippine Basketball Association broadcasts. It now appears that such a cooperation may come to pass.

After individually making presentations, NBN 4 and IBC-13 have supposedly submitted an informal third bid as a "consortium" to greatly increase their chances of winning the rights to telecast the PBA games. As this writer mentioned, the scenario is such that ABS-CBN will not be able to bump off its high-rating teledramas and game shows to join the fray, and GMA will not longer participate in the bid. Overall, It will likely be up to the government networks (RPN, NBN and IBC) to provide the airtime that independent broadcaster do not have. However, RPN has niched itself in high-quality foreign programs, and will be hard-pressed to come up with the mammoth resources needed to sustain a project the magnitude of the PBA.

Although the proposal will still evolve, and it has not yet been determined if the networks will pursue bids on their own, two things are clear. This new wrinkle will definitely make it much more difficult for independent (meaning non-network) bidders to compete on even terms. The IBC-NBN tandem will likely freeze out other producers from using their airtime. Unless some major backroom dealing ensues, the consortium is suddenly the frontrunner in the race, since it holds the ace in the form of airtime that independents covet. Without the guarantee of airtime, any bid is pointless.

Secondly, the two networks will definitely coordinate in the bidding, since they will both be using public money to acquire the PBA television franchise. This actually makes it logical for one network to step aside for the other, or for the two to work together. A high official of one of the networks said that, if the PBA agrees to their proposal, they may decide to air the weekday games on one network, and the weekend double-headers on another. The playoffs could be simulcast on both networks.

The concept of multi-network coverage was actually first attempted by broadcast giant Ted Turner in the early 1980’s. Turner called his project the TNT (Turner Network Television) Superstation, and it so shook up the American broadcasting industry that the Federal Communications Commission held hearings to determine whether or not it violated laws against monopoly. After initial bragging, a clearly intimidated Turner was forced to backpedal and claim that it was simply a union of small networks.

A multi-network broadcast was also attempted for the Atlanta Olympics, but did not really draw the big audiences it was expected to. That is one factor that has not yet been determined by research or actual experience. Will two carrier stations double the attention and revenue, or instead cut it in half?

The advantages of two nationwide networks are obvious. Each has certain areas of the country where its signal is stronger than the other, and each already has its own built-in audience. Furthermore, the pooling of experience in sports (NBN has done the Olympic Games and SEA Games several times, IBC has covered world title fights, the Asian Games and is renting airtime to incumbent PBA television franchisee Viva-Vintage) will be impressive. And each has its own sales and marketing force that carries different groups of advertisers.

The disadvantage could be a dilution of the audience if the networks do cover the games simultaneously. The audience may also find it confusing if the schedule is split between the two stations. However, executives of both networks will be consulting advertisers about this.

One matter that has not yet been determined is the new price tag the PBA coverage will carry. It will probably not be in its current posh neighborhood of well over P300 million a year, but will still be prohibitive. A joint effort will make the burden lighter. Besides, having two networks will make it easier to make adjustments should the PBA have special events like the coming exhibition games of the Philippine team. Airtime will be easier to arrange, and there will be no need to make major movements which the PBA’s audience share.

The NBN-IBC partnership will effectively take some of the dark horse bidders out of the picture - unless they also become part of the group. However, many of the personnel working with these production groups are not tied down to exclusive or employment contracts. This means they could easily shift to NBN-IBC like free agents.

It may be about time for the PBA to negotiate directly with a network instead of a third party. A network would provide faster decision-making and stability. Although most of the independents bidding have great credentials and impressive track records in sports broadcasting, alas, they do not have the airtime that is their coverage’s lifeblood. Also, their people are merely talents working on projects like the PBA coverage on a part-time basis. This has been a practice to avoid paying benefits to announcers, cameramen, writers and so on. Now, it backfires by leaving these same people free to negotiate with literally the highest bidder. I know many of us in the sportscasting field are waiting for the winner of the PBA TV franchise to emerge, and hopefully invite us aboard. It’s such a small community that we’ve all worked together at one point or another.

Let’s see how this new twist impacts the rest of the bidding for the country’s most prestigious broadcast rights.