VTV criticized over Premier League exclusive rights

The association of pay-TV stations in Vietnam yesterday sent a letter to the central government to protest against Vietnam Television (VTV) for allowing K+ to hold exclusive rights to the English Premier League.

The letter, also sent to the Ministry of Information and Communications, which oversees the issue, accuses VTV of violating the ministry’s instructions on cheating other TV stations to purchase the rights exclusively and raising the price for the rights by over 20 percent.

The letter mentions the inconsistent policy of VTV in the purchase, though it was appointed as the leader of the negotiation team, which included many other domestic TV stations in a bid to prevent competition among the stations by raising the price.

Given the right to set up the team, VTV listed K+ – which VTV holds a 51 percent stake in while France-based Canal+ holds the remaining 49 percent in the joint venture -- out of the negotiation team.

Then, Canal+ signed a deal with IMG -- the sales representative of the EPL in Vietnam – to buy the exclusive rights in Vietnam for three seasons, from 2013-16, for US$40 million, more than doubling the price of $19 million for the previous period, from 2010-13.

Recently, Canal+ said it transferred the rights to K+, and VTV has agreed to let K+ air the live matches of the league exclusively.

As the majority stake holder, VTV is allowed to reject the transfer, and based on the Law of Journalism in Vietnam, VTV is authorized to remove K+ programs from air.

Cheating by VTV

In March, VTV sent a letter to the Ministry of Information and Communications asking for permission to act as the leader of the negotiation team to prevent unfair competition among local stations and ensure that the price would not increasing by more than 20 percent against the previous period.

After gaining approval to set up the negotiation team, VTV failed to establish it quickly, and Canal+ finished the deal with IMG before it had been set up, even though Canal+ has no certificate to air TV programs in Vietnam.

VTV played a deceptive game by ignoring the transfer from Canal+ to K+ and then agreed to allow K+ to air the league exclusively.

Ms. Le Huong Giang, deputy head of the department of broadcasting and TV management under the Ministry of Information and Communications, said she will convene a meeting soon with relevant sides.

The ministry hopes to select a solution that ensures the legal rights of all TV stations and subscribers in Vietnam, since all the stations are owned by the State, so the cost of the rights comes from taxes levied on people.