DirecTV Latin America has acquired exclusive broadcast rights to the '02 and '06 World Cup events, plus other FIFA events, in a deal valued at $400M, according to Mary Sutter of DAILY VARIETY. The deal, jointly announced by DirecTV Latin America, ISL Worldwide and FIFA, marks the "first time such rights have been acquired by a multichannel operator," and Sutter writes that it "is a sharp signal that U.S. media companies are starting to aggressively seek foreign sports rights." The deal covers all TV and broadcast rights in Argentina, Chile, Colombia, Mexico, Uruguay and Venezuela. But Sutter writes that the deal "does not cover Brazil, the single largest territory (overall and for DirecTV) and home to some of the most rabid fans in a soccer-mad region." During the 2002 event, to be co-hosted by Korea and Japan, DirecTV said that it will carry all 64 matches live for subscribers. DirecTV Latin America has more than 1.2 million subscribers in 27 countries (DAILY VARIETY, 12/20). In addition to broadcast rights, DirecTV will have rights to the '02 World Cup music, emblems, marks and mascots (AP, 12/19). In L.A., Jon Healey writes that DirecTV "is betting millions that the passion for soccer in Latin America can overcome the affection there for free TV." To "recoup at least part" of its $400M investment, DirecTV "hopes to boost sales in and around the countries covered by the deal." But that is "both a challenge and an opportunity -- in most of these countries, neither cable nor satellite has gained the kind of foothold they have in the U.S." In Mexico, only about 20% of homes with TV sets "had signed up for some form of pay-TV service" (L.A. TIMES, 12/20).
