KEY POINTS:
CanWest MediaWorks is planning to make a small profit from its exclusive Rugby World Cup television coverage - but has left other media companies to fight it out for online rights.
Media rights management firm IMG in Sydney is close to selecting bidders for online rights for the tournament, which runs from September 7 to October 21.
It is understood that the newly launched Yahoo!Xtra is one of two companies negotiating for the online rights, which will be a key marketing property during the competition.
One media industry source said that the IRB had taken a tough stance in ensuring online rights earned revenue and was even planning its own highlight package costing a hefty $49.95. It had taken an aggressive stance because online media was developing so fast that the rights environment would be completely different at the 2011 Rugby World Cup.
Meanwhile, CanWest is promising advertisers it will get around a Sunday advertising ban that - in theory at least - will affect three games: a quarter-final, the October 13 semifinal and the October 20 final. The Broadcasting Act says radio and TV can't air ads before midday on Sundays.
The assumption is that the All Blacks will play in at least one of those games and possibly all three.
CanWest chief executive Brent Impey said recently he had been unsuccessful in convincing Government officials to drop the ad ban. However, he insisted there were ways around the Broadcasting Act rules but refused to say what they were.
CanWest has sold advertising packages from four key sponsors - Telecom, Heineken, Harvey Norman and the BNZ Bank. It is still selling extra spots that are likely to take the project from break-even to a small profit.
Advertising agencies approached by the Business Herald said that they had been buying advertising time in the World Cup, including spots in games that screen here on a Sunday.
"Anybody buying advertising packages would be in for the final," said Total media managing director Martin Gillman.
TV3 chief operating officer Rick Friesen insisted the World Cup had a value beyond the dollars and cents from advertising revenue.
Because the World Cup is played in the Northern Hemisphere the games screen in New Zealand outside prime time. The IRB - which did not sell rights to pay TV companies because it wanted the biggest audiences on free-to-air - had scheduled games so that they did not screen here at wholly unsocial hours.
Off-peak times meant audiences would not be huge but Friesen insisted the late timeslots had been good for the viability of the project, which is partly designed to increase TV3's profile.
TV3 coverage does not start until after 11pm but that means male-focused rugby will not disrupt regular schedules and advertising revenue - much of which is derived from the female-skewed household shoppers.
"All the revenue will be new viewers and will be on top of our normal revenue," Friesen said.
