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Home > Business > Business Headline > Report

Samsung is co-sponsor for SET Max cricket telecast

BS Corporate Bureau in New Delhi | January 15, 2003 12:19 IST

Samsung Electronics has become an associate sponsor to the live telecast of the World Cup cricket on SET Max, after rival LG Electronics -- one of the global sponsors of the ICC tournament -- exercised its first right of refusal.

LG has tied up with the national broadcaster Doordarshan, after its talks with SET Max failed over the issue of advertising rates.

Samsung executives today declined to reveal the price it has agreed to pay Sony Entertainment.

The tie-up with Samsung is a big shot in the arm for the private channel, which has paid a hefty amount to win the world cup telecast rights over rival ESPN Star Sports.

The programming deal being worked out between DD and ESS is also fragmenting advertisers between SET Max and DD.

Meanwhile, Samsung today said it was confident the controversy between the Indian cricketers and ICC, world cricket's governing body, will not hamper its endorsement agreements with the players, and it will continue to air the commercials featuring these players undeterred.

"We are confident that the clause does not apply to us. The agreement with the players and Samsung was signed before January 9, 2002, much before the controversy began, and hence it cannot be forced upon us any more. Yet, if the cricketers insist we drop the commercials, we will honour their request," said Ravinder Zutshi, director, sales, Samsung India Electronics Ltd.

As per the prohibitary clause, Samsung cannot air commercials using any Indian cricketer playing the World Cup in South Africa since LG Electronics is one of the two global sponsors of the ICC tournament.

LG, like the other official sponsors, has paid ICC a premium for inclusion of the said controvertial clause.

But the Indian cricketers are opposed to this clause in the agreement. Today the company launched its new Team Samsung India First Promo for the World Cup, but with a less-than-3 seconds shot (one frame) of the players (the team Samsung) which includes Sehwag, Srinath, Dravid, Kaif, Kumble, Mongia and Harbhajan Singh, which subtly reminds the TV viewers about 'Team Samsung'.

Zutshi explained that the one frame will not trigger the ICC clause, since its duration is less than three seconds.

The colour television manufacturer is expecting a 200 per cent growth in CTV sales in the first quarter of 2003 owing to a demand pull from World Cup customers, which will result in its annual turnover swelling 65 per cent over last year.

Its sales target for the quarter is 4.5 lakh sets, which will help it post a sales turnover of Rs 780 crore (Rs 7.8 billion) during the period.

Samsung hopes to end the year with a sales turnover of Rs 2,800 crore (Rs 28 billion) as against Rs 1,700 crore (Rs 17 billion) registered during the calendar 2002.

Sales of CTVs in the domestic market will grow from 850,000 in 2002 to 12 lakh (1.2 million) sets in 2003. Export sales will increase from 150,000 sets to 200,000 sets during the year, Zutshi said.

The company's marketshare in the CTV market will grow from the current 13.5 per cent to around 17 per cent, he added.


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