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DirecTV Latin America gets a kick out of World Cup

By | January 3, 2001

      The marketing of DirecTv Latin America’s DBS service in six key South American countries is expected to get a big kick with the acquisition of exclusive broadcast rights to World Cup football games in 2002 and 2006 along with additional soccer programming, said Kevin McGrath, the company’s chairman.

      In a $400 million-plus deal with the Federation Internationale de Football Association (FIFA) and its sports marketing rights representative ISL Worldwide, DirecTv bought exclusive TV and radio broadcast rights in six Latin American countries for the World Cup competitions in 2002 and 2006, as well as other FIFA world championships. The agreement covers broadcast rights in football hotbeds Argentina, Chile, Colombia, Mexico, Uruguay as well as Venezuela. Brasil, which has the world’s most flamboyant football team, was not part of the deal. DirecTv Latin America will have six revenue streams to recoup its costs and turn a profit, but the key justification for paying the high broadcast rights fee is the potential to lure new subscribers, McGrath said. With 1.2 million subscribers, DirecTv is looking to attract new subscribers in the six countries.

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