European Sport Market Analysis 2004

Transcription

1 European Sport Market Analysis 2004 Introdution 2 Exeutive summary 3 1. Method 8 2. Sport market evolution Analysis of sport MAM appliations Segmentation and market analysis 50 Version 3/February 04 1 Kane

2 Introdution While fousing on Europe, the purpose was to make zoom in on urrent sports DAM projets and to identify the most important ompetitors in this market. 2 Kane

3 Exeutive summary In setion 1, we explain who we ontated, and why, in the ourse of our researh into sports markets. We explain the reasoning behind out hoie of 6 main players: TV-hannel sports departments Servie providers (OB truks) Leagues and governing bodies Clubs Stadia Sports marketing ompanies We also explain our methodology for identifying sports DAM appliations among referenes of the most important suppliers of servers, storage solutions, OB-van equipment and media asset management software. 3 Kane

4 Exeutive summary At setion 2, we give some basi information about the sports business, explaining among other things: The relationship between the 6 ategories of sports market players (lubs who own their own stadia, TV stations who subontrat prodution to servies providers, et.) The big money flowing into sports, espeially inreases in TV rights payments The onentration in Europe of 90% of the money in 3 sports (Soer more than 80%, Tennis, Formula1) and 2 events (Tour de Frane, Olympi games). That lubs and and even players are beoming brands in their own right in the 3 rih sports. The importane of stadia, at rossroads of many industries hopes The new hannels of TV distribution on big sreen and bars The evolution of rights ownership from the league, to the lubs and ultimately to marketing ompanies suh IMG. That rights ownership drives re-utilisation of video and therefore DAM appliations That lub budgets is for the moment mainly used for purhasing players, and that other expenses suh as DAM may be less attrative than a new striker That subontrating to servie providers is the rule for live sport 4 Kane

5 Exeutive summary In setion 3 we give our inventory of the 185 sports DAM appliations in the world, identifying 9 ategories of appliation: TV-hannel s live & highlights prodution, magazine prodution, sports news prodution, sports video arhive Leagues and lubs video oahing, heritage enters League, lubs, marketing ompanies distribution fatory where all video is stored for distribution to any media suh as TV, mobile, Internet, big sreens, orporate hospitality Stadium in-house entertainment Sport Internet portals. We analyse the most frequent appliations: video oahing is up to 48%, live & highlights 26%, in-house entertainment is 15 % Clubs are the most frequent users with 44 % of appliations followed by TV Channels at 26% North-Ameria onstitutes 55 % of ases, Europe 35%, Asia-Paifi 9%. We disovered that where ingesting items of information is sport-speifi, it is usually delivered by DAM suppliers through ustomisation of a single IT appliation, exept for oahing where parts are and must be speifi: statistis and presentation, simulation, graphi analysis tools. 5 Kane

6 Exeutive summary Contrary to our expetations, sore, lok and timing appliations do not interfae with DAM appliation exept in one QDI projet at the Frenh Tennis Assoiation. Those systems are for the moment only interfaed with the broadast on-air graphi tools for live prodution. We notie that all 9 appliations are made of the same 14 omponent basi funtions (suh as live sripting, editing, web distribution ): 3 funtions for live, 6 for prodution, 5 for ontent distribution We also notie that only 3 % of DAM appliations over multiple ategories of appliation, suh as doing live & highlights prodution while at the same time preparing arhiving. There are urrently more islands than optimal workflow: no smart re-utilisation of metadata, but a lot of repetitive inputting. 6 Kane

7 Exeutive summary In setion 4, we regroup the 9 ategories of appliation into 4 main segments: Highlights prodution (Live TV, TV magazine and arhive, and stadium in-house entertainment) where main players are server suppliers suh as EVS, Leith, Grass Valley, and Dixon for stadia Sports news where suppliers are the same as for news: Sony, Avid, Leith, Grass Valley Coahing : where Pinnale Teamsports, Dixon Sports, Sportste are leaders Distribution repository or fatory: video repository/heritage entre for distribution: an emerging segment where TWIi, a subsidiary of IMG is a pioneer with a single but remarkable appliation for the distribution of ontent managed by IMG, and where QDI and Blue Order have also a single referene. We estimate the 4 segments represent a market size of $40, starting with $8m in Kane

8 1. Methods There is a range of stored and indexed video as well as rih media sports appliations among referenes of The main server suppliers: Orad, Pinnale, EVS, Avid, Quantel, Leith, GVG, Sony, Omneon, Seahange, SGI as well as SAN mass storage suppliers Sony, IBM, Storagetek, Adi, Front Porh, SGL, SGT The MAM suppliers QDI-Harris, Blue Order, IBM, Anept, Ardendo, OB van suppliers: Ross, D-link, Thomson 8 Kane

9 1. Methods After ompiling this world-wide list of appliations, we deided to ontat and to visit a ertain number of key players among the 6 following ategories involved in sport: A. Television hannels, suh as the Sport departments of premium hannels involved in sport live or News 24 Sports hannels suh as Plazamedia in Germany B. Outside Broadast ompanies providing video apabilities (i.e. OB Vans) and working on behalf of TV Channels or Clubs, suh as Alfaam in Belgium C. Sports Leagues and Governing Bodies suh as the Frenh Federation of Tennis D. Individual Clubs suh as Manhester United E. Stadia suh as the Luxemburg Dome F. Sports Rights Management and Marketing ompanies suh as IMG/TWI in the UK 9 Kane

10 1. Methods We ontated and/or visited 19 sites, based in 7 ountries TV OB van & servies Club League Stadium Sports Marketing Comments Country Interview Belgium ALFACAM X X One of the most important European videotruk ompanies. Has reated the 2 first European TVHD hannels: Euro 1080 for bars & hotels (4 hours a day), and for inema theaters (big events). Uses the Astra satellite for transmission. VRT X Main Belgian hannel for the Flemish ommunity CANAL + Belgium X Belgian paytv hannel (Vivendi group), owns sports rights Germany PLAZAMEDIA X Sport news 24 hannel of Saban Group (ex-kirh) Spain CASTILLA LA MANCHA X Government-baked regional TV station dediated to the Castille region of Spain. SOGECABLE X Digital Pay TV Spanish group subsidiary of Prisa Group (first Press group in Spain) has merged with Canal+ Monao SAMIPA/FOCA X Videotruk TV ompany dediated to motor raes and Formula 1. Samipa also produes a motor raes magazine for TMC, and manages transmission of Formula1 to Russia Luxemburg Luxemburg Dome/VPA X Indoor prodution ompany dediated to this entertainment & sport arena 10 Kane

11 1. Methods Country UK Interview Manhester United TV Manhester United TV (GRANADA) TWI INTERACTIVE CTV Outside Broadast (NMT group) TV OB van & servies Club League Stadium Sports Marketing Comments X X X Most important european soer lub with Real Madrid and Milan AC, Juventus X X X Owns its stadium, own TV rights, subontrat its image and TV rights to M Cormak TWI. Has reated a TV station dediated to the lub. Playout enter managed by Granada TV X X M Cormak manages the rights of many major events (Olympis, Soer World Cup), many European lubs, many tennis players and athlets. Has reated several TV stations TWI (broadast on satellite/bskyb) as well as a digital distribution faility TWI Inte X One of the most important UK OB van/video truk servie provider. One of the most important UK OB van/video truk servie provider. Subsidiary of National Mobile Television the most important US videotruk ompany 11 Kane

12 1. Methods Country Frane TV OB van & servies Club League Stadium Sports Marketing Comments Interview FFT Frenh X X FFT owns a stadium (Roland Garros) Tennis and rights of the grand slam Frenh Assoiation Open tournament FRANCE X Joint Sports Department of Frane2 and TELEVISIONS Frane3 IEC-ASV X One of the main Frenh integrator (Pinnale) and sports OB van provider EQUIDIA/ X X X PMU, the Frenh rae organisation Vinennes has reated a TV (Equidia, able and Raeourse satelitte hannel), and owns raeourses TF1 X First Frenh premium TV hannel (Bouyghes group), owns sports rights TV Bery X Indoor prodution ompany dediated to this entertainment & sport arena PSG/ Par des Prines Paris X X First league Frenh soer lub. In Frane, manage its stadium ("Par des Prines", owned by Paris Township). The Frenh Soer League owns all TV rights for the moment. CANAL+ X Frenh paytv hannel (Vivendi group), owns sports rights 12 Kane

13 1. Methods We ontated 24 people among these 6 ompany ategories Country Sport Organisation Person Title Date 1. Televisions/stadium/assoiation/Sports servies providers Frane Tennis FFT Frenh Tennis Assoiation Mehdi KOVADER Video Operations Manager nov-03 Deputy Video Operations Jean-Baptiste PEYRONNY Manager de-03 All FRANCE TELEVISION Bernard BERLIET Head of Video Library Sport Department de-03 Olivier DUPUIS Video Library Sport Department de-03 All/Sailing IEC-ASV Fred RENONDO Diretor Domesti Market de-03 servies/rental Horse raing EQUIDIA/ Vinennes Raeourse Eri BRION Tehnial Manager de-03 All TF1 Jaques BERTHELOT Diretor Operations jan-04 Tennis TV Bery Pasal MAIFLEUX Diretor Operations jan-04 Soer PSG/ Par des Prine Paris Jak JACQUET Member of the board in harge of de-03 IT&video Development Soer CANAL+ Jean-Paul BERTONI Sport Operations jan-04 Pierre MAILLAT Engineering Department jan-04 UK Soer Manhester United TV Colin RENWICK Chief Engineer de-03 Soer Manhester United TV (GRANADA) David HALL Diretor Operations de-03 All TWI INTERACTIVE Max HAOT Senior Int.VP World Prodution jan-04 All/Soer CTV Outside Broadast (NMT group) Barry JOHNSTONE CEO de-03 Belgium All ALFACAM Kris DEMEULEMEESTER Diretor Sports Department de-03 All VRT Herman EERDEKENS Head of Sports Department jan-04 Soer CANAL + Belgium Jose BOUQUIAUX Head of Live Operations jan-04 Soer CANAL + Belgium Vinent DECONINCK IT Department de-03 Germany Soer PLAZAMEDIA Mathias ZIEHL Tehnial Manager de-03 Spain Soer CASTILLA LA MANCHA Luis SANZ Tehnial Manager de-03 All SOGECABLE Adolpho RAMACHA Deputy Tehnial Manager de-03 Monao Formula1 SAMIPA/FOCA Jo DERACO CEO de-03 Luxemburg All+ Entertain. Luxemburg Dome/VPA Didier LEROY Engineering Diretor/projet Kop de Kane

14 1. Methods We ontated 12 people among integrators and vendors espeially involved in sport Country Organisation Person Title Date 2. Integrators/onsultants Frane SIS LINK Yves ALLARD Diretor of Operations nov-03 UK MARQUIS Granby PATRICK Managing Diretor de-03 BROADCAST MANAGEMENT SERV. Mike SEVERYN Independant Consultant jan Vendors Canada All ROSS Steve ROMAIN National Key Aount Manager nov-03 Israel/Fran All ORAD Guillaume GODET Marketing Manager Sports nov-03 Frane All M PLUS Mihel PAPELARD Managing Diretor ot-03 Spain All AVID Spain Jose-Ramon RODRIGUEZ Managing Diretor ot-03 Belgium All EVS Bernard STAS General Produt Manager dé-03 All Mark CAEYMAEX Area Sales Manager dé-03 All Henri ALEXANDER General Sales Manager dé-03 Frane All QDI Arnaud LAROCHE Diretor nov-03 USA All HARRIS Fred POOLE National Sales Manager nov Kane

15 2. Sport market evolution Through our interviews and researh we gathered some key information about the sports business, onerning both the urrent situation and future evolution 15 Kane

16 2.1. Relationship between sport players 6 ategories of players are involved in sports business, and this table indiates their relationships onnetivity sell rights sell rights lub league TV servie provider owns stadium sell spae sell rights marketing ompany sell rights produe for produe for In England, Italy, & Spain the soer lubs own their rights, while in Frane, where less money is involved, it is the Frenh League (of Professional Soer). In England and in Spain, lubs also own their stadia, whih is not the ase in Frane, where they are normally owned by the loal authority. 16 Kane

17 2.2. Sport is a huge business Revenues generated by sports rights have dramatially inreased in the last 40 years, espeially for the most popular sports or events. This has hanged the whole sports landsape profoundly. TV rights exploded between 1960 and Tiket sales (whih used to be 100 % of revenue) urrently represents only 30% of a soer lub revenue in Europe on average. Sponsorship has also inreased, representing 10% in soer Derivative produts represent 10% in Europe, but may be huge in ase of the most famous lubs and players. David Bekham s transfer ost from Manhester United to Real Madrid was reimbursed through sales of its Number 23 Real Madrid shirt within a single summer. All this is both a ause and a onsequene of evolution from amateurism to professionalism, and of high TV overage. Soer World Cup 1990 Italy 2002 Japan Korea TV rights $m Kane

18 2.3. TV rights are responsible for money inflation TV hannels ompete to win sports rights and therefore ontribute to the rise of pries. This is beause live sport is responsible for peak audienes during the year. Privately owned TV hannels suh as TF1 in Frane, RTL+ in Germany, and ITV in the UK have a differentiation strategy through live sport. Some state owned hannels suh as the BBC and RAI also spend a big part of their budget on sport to fae this ompetition. Olympi games - Evolution of TV rights Mosow 1984 LA 1988 Seoul 1992 Barelona 1996 Atlanta 2000 Sidney 2004 Athens Olympi games Mosow LA Seoul Barelona Atlanta Sidney Athens TV rights $m Kane

19 2.3. TV rights are responsible for money inflation Live sport also beame the most important driver for onsumers subsribing to pay-tv. There was a major onnetion between Sport and the emergene of the 3 big pay TVs in Europe: Canal+, KirhGroup, and BSkyB. But there were also setbaks in 2002 when Kirh Group and ITV Digital went bankrupt, and when Canal+ had finanial diffiulties. Many onsider that the value of sporting TV rights has reahed a maximum The EU Competition Commission intervened in the area of exlusive sports rights ontrats between leagues and TV stations, anelling the exlusivity agreement between the Frenh Soer League and Canal+, and opening a door for its main ompetitor TPS (satellite operator). It is noteworthy that the new ontrat signed by TPS, plus the new ontrat signed by Canal+ are even added together less valuable than the previous exlusive ontrat signed with Canal. 19 Kane

20 2.4. Contrast between rih vs. poor sports In Europe 4 speifi sports and 2 speifi events represent more than 90% of the money involved in sports rights. In Europe, there are 3 rih sports ( where TV rights/image rights are high) Soer (above all), Tennis, and Formula 1. There are also some important sports events whih are muh more popular than the other events of the same sport: the Tour de Frane, and to a smaller extend the Giro in Italy and the Vuelta in Spain. This important yling rae involves muh more money and venues than all the other yling events. Of ourse, the Olympi Games are also very important every 4 years, but swimming and athletis have otherwise very small TV audiene and stadium venues 20 Kane

21 2.4. Contrast between rih vs. poor sports For instane, in the Nederlands, these 3 sports and 2 events represent 94%, and soer reahes 83 % TV rights in the Nederlands: NOS + RTL+ SBS +UPC+ Canal+ Sports m % Soer 81,7 83% Cyling Tour de Frane 0,6 1% Olympi 5 5% 94% Tennis 2 2% Formula 1 3,5 4% Skating 5 5% Darts 1 1% Total 98,8 100% Another sport, horseraing, also involves a lot of money, but mostly thanks to betting. All other sports are living with little money, and split between those where the best players are professional: Basketball, Rugby Union, Boxing, Skiing those where they still remain amateurs: Judo, Handball, Volley ball, Ie Hokey and other ie sports. Of ourse in the seond ase, these sports have even less money 21 Kane

22 2.5. Clubs and players are beoming brands All the top brands in the world suh as Coa Cola try and reate a feeling of togetherness among their onsumers or lient base, through the sharing of ommon values, and of a diret feeling/emotional experiene in relation to the brand. Consumers seem somehow saturated with advertising, and with diret ommuniations (mail, ), and brands are onstantly looking for more qualitative ways of engaging their ustomers. Surveys show that a single onsumer is overwhelmed by more than 300 advertising messages a day in London through radio, billboards, shopping, television, internet & phone ads, at work, and goods. Sport venues offer a unique emotional experiene, due to the extreme built-in suspense of sport, and are beoming a unique way to share the same passion among a large number of people. The relation between sports fans and their favourite teams is very deep. In soer, fans spend a lot of money with and for the lub (season tikets, branded apparel, et). No surprise that major lubs or national teams and even players are beoming brands in their own right. A big advantage for these speifi brands is that they advertise on TV for free, through live mathes and games. 22 Kane

23 2.5. Clubs and players are beoming brands For instane Olympi Games is the 3rd most reognised brand in the world. As a result, derivative produts have a great future. Stadia, as brand headquarters, are more and more important and ould develop greatly in terms of orporate hospitality, Large Eletroni Displays, heritage entres and branding malls. The link between lub/brand and onsumers is being materialised by Smart ards (allowing the lub to know its lients, and profile) whih may also be aess ard to stadium, Subsription to information servies via mobile phones, or on the Internet: Vodafone in the UK has made this a speiality A new trend is to reate TV stations dediated to the most popular soer lubs. But less than 10 are in operations; all seem to be losing money for the moment. BSkyB broadast Manhester United TV (managed by Granada), Arsenal TV, Chelsea TV in UK, RealMadrid TV and Barça TV in Spain, Sky in Italy broadast Milan AC, Inter Milano, AS Roma TV in Italy (hosted by Rai servies). In Frane Marseille TV is a projet, as well as PSG TV. 23 Kane

24 2.6. Stadia are a rossroads industry Stadia is at the rossroad of 4 industries setors: sports equipment, broadast & media, real estate/themed park & building industry, advertising For the themed park industry, stadia are onsidered as the fastest growing segment of the market. LED and presentation systems is the fastest growing segment in media setor. 24 Kane

25 2.6. Stadia are a rossroads industry Many speialities and speialists are involved in building or supplying stadia, where in-house entertainment systems represent a small but signifiant part. Market is global as these speialised ompanies are present world-wide Stadium Speialized Servies - Arhitetural Design - Business Consultany - Catering - Cleaning and Maintenane - Communiation, Sound, Video and P/A Systems - Broadasting Equipment Companies Country Produts - Signage, Soreboards and Sreens Baro Belgium LED - Constrution Consultany Creative Tehnology/Sreeno UK LED, integration - Constrution Materials Mitsubishi Japan LED - Engineering and Constrution ANC Sports USA Signage, sorer - Disability Aess Ondavision Italy Rotational signage - Aquatis and Water Parks Spetra UK Text Display& LED - Flooring Sports&Time South Afr. Clok&time systems - Golf Course Arhitets Lighthouse USA/UK LED - Lighting Dixon Sports USA In-house entertain.systems - Seating EVS Belgium In-house entertain.servers - Seurity Grass Valley (Thomson) Frane/USA In-house entertain.servers - Staging Leith Canada In-house entertain.server - Surfaes: Turf and Syntheti - Tiketing 25 Kane

26 2.7. New hannels of distribution for sports During the last soer World Cup, most of the TV viewers were not at home during the mathes of the England team in the UK, but at pubs, sports bars, in front of Large Eletroni Displays at publi loations (big stations, big plaes), in inemas and theatres, where extra video projetors where used. Viewer wathing World Cup # million viewers % TV at home 9 36% Outside home * 16 64% * Pubs & bars, big sreens at publi loations, inema theaters Soure BBC R&D Sine then, the rights attahed to these new hannels of distribution are a big issue, and ontrats tend to embody speifi onditions for that. In the meanwhile TV-stations try and invoie bars for displaying mathes. There was a big onflit between TF1 and a lot of bars in Frane last year. Cinema theatres have always been relutant to use their venues for sports events (fears of vandalism, et.) but the emergene of digital inema may hange that vision: UCI in Germany has a lot of experiene in that, as well as digital inema pioneers suh as Odeon theatres in the UK. 26 Kane

27 2.8. Evolution in rights ownership In the relatively poor sports, the National Body or League ruling ompetitions owns the rights (TV broadast rights as well as lubs/players image rights). In rih sports, lubs own the rights, and for the most important European Soer Clubs (Manhester United), or Tennis tournaments suh as Wimbledon, rights are often sold by a Sports Marketing ompany suh as IMG. Star system Sport marketing ompanies Professionalism Clubs, Individuals Amateurism Leagues Who owns the rights? 27 Kane

28 2.9. Rights ownership drives re-utilisation Sports is driven by the question of rights ownership. There are several rights ategories, notably TV rights and image rights (related to lubs and to players/stars). An important detail for MAM is that TV-hannels having aquired a live event TV rights may show highlights later and free of harge. This ondition is present in most of ontrats between rights owners and TV-hannels. Therefore and mostly TV hannels only arhive sports that they have broadast live. Some exeptions ome from those who prefer to keep the digital version (as opposed to tape to avoid a seond digitization or transoding). When they want to put it on-air again, they must however aquire or re-aquire the rights attahed to this speifi item. Rights owners are for those reasons prospetive future users for MAM: TVhannels, leagues ( poor sports), lubs ( rih sports), marketing, 28 Kane

29 2.10. A Club s budget is mainly used for purhasing players In Europe, when a lub has got money, it still uses it mainly for purhasing players (soer) or drivers (Formula1). They therefore do not invest muh in systems, still less to develop ambitious distribution models. To-day, there is a ontrast between the issues and money involved in sports/video systems and their possible benefits and the managers real understanding of it: distribution repository, video oahing: in Europe at least, oahes are still intuitive people, leaders of men rather than analyti and intelletual people. Budget for video is growing, but still small but the orporate IT and video staff is still under 5 people at maximum for big soer lubs of budget > 100m/year (PSG=3 IT, 1 photographer, 1 videojournalist freelaner). Florida Marlins annual budget for video equipment is less than $ This situation is hanging due to several fators: more and more business leadership experiene among lub presidents, lubs beoming publi ompanies, aeleration of ompetition. 29 Kane

30 2.11. Subontrating to servie providers is the rule for live sport as well as for magazines Most frequently, TV hannels subontrat to servie-providers both live and magazine prodution The below Avid Unity statistis for Europe show that TV hannels own only 38% of shared media systems. Even more beause TV hannels suh as RAI, Frane3 and the BBC have their own servie-provider division. This statisti is representative of all prodution inluding drama, gameshows, news, trailers, and sports. In sports, this trend of subontrating is even more valid. In some ountries, TV hannels are work with preferred servie providers In Frane, the 3 big sports TV groups: Canal+, TF1, and Frane TV (to a lesser extent) always work with the same suppliers, respetively : Euromedia-VCF, Visual (Frane Teleom), Euromedia-SFP TV Channels Servie providers on behalf of TV Total Avid Unity systems (shared media) % of total 38% 62% 100% 30 Kane

31 3. Analysis of sports MAM appliations We identify 9 ategories of appliations in prodution, ontent repository and distribution (in Annex the 185 ases database) Prodution Live-prodution TV Servies hannels providers 2. Magazines Prodution 3. News Prodution 1. Replay & Highlights prodution Leagues & Gov. bodies Clubs Stadia 5. Video oahing 8. In-house entertainment Marketing Companies Arhive or video repository Distribution 4. Video arhive 6. Heritage enter 7. Distribution fatory 7. Distribution fatory 9. Internet portal 9. Internet portal 9. Internet portal 31 Kane

32 3. Analysis of sports MAM appliations We identify 185 sports MAM appliations: 48% of video oahing (mainly lubs), 26% of Replay & highlights prodution (TV hannels and OB-van servies providers), 15 of % In-house stadium entertainment. These are the most important ategories. Categories 1. Replay & Highlights prodution 2. Magazine prodution 3. News Prodution 4. Video Arhive 5. Video Coahing 6. Heritage Center 7. Distribution Fatory 8. In-house Entertainment 9. Internet Portal Total % TV Channels % Servies Providers % Leagues/Governing bodies % Clubs % Stadia % Marketing Companies 1 1 1% Total % % 26% 3% 5% 1% 48% 1% 1% 15% 2% 100% North-Ameria reahes 55 % of ases, Europe 35%, Asia-Paifi 9%. Video oahing and In-house entertainment are mostly US appliations, while Highlights prodution and storage seems more important in Europe. Categories 1. Replay & Highlights prodution 2. Magazine prodution 3. News Prodution 4. Video Arhive 5. Video Coahing 6. Heritage Center 7. Distribution Fatory 8. In-house Entertainment 9. Internet Portal Total % Asia-Paifi % North Ameria % Europe % Total % 32 Kane

33 3.1. Replay & highlights prodution Live prodution urrently means to produe highlights to play them as replays just after a soring or other signifiant ation, but also during breaks, at half time or at the end. In some sports suh as athletis, several ations our simultaneously on the stadium. It is therefore useful to reord a jump and to show it after the end of a rae. Mark in, mark out is ompleted by instant replay operators, who add some metadata, in order to be able to replay a goal or a winning point or best ations, not only during live but later during breaks, at the end of a math, or more rarely later as magazines or news items or arhive items. Speed is ruial, and the amount of time to sript or index is very limited: therefore metadata is limited to 3 or 4 items, rolling menu and keyboard assisted, using a touh sreen or ontrol panel. Metadata apture is very limited, 3 to 4 items in soer for instane: name of player1, name of player2, ategory of ation (free kik, penalty, red ard, goal), quality of ation (from + to +++). Of ourse a highlight is defined by time-ode of beginning, time-ode of end, automatially aptured by mark-in mark-out ations of the operator. 33 Kane

34 3.1. Replay & highlights prodution User-onfigured ombo-box on several fields (ORAD, QDI, PINNACLE), Speial liks to mark start and end of ation (ORAD, QDI ), even sport speifi loation of ation (Pinnale offers a speial window showing sport field giving opportunity for user to point with mouse the speifi spot of ation). When the program (live and shortly after the game) is finished, the produed highlights video is dubbed to tape for future arhiving, and the server is purged. The are very few digital transfers to other servers for future magazine prodution or arhives. Live sport prodution is still a ompletely separate workflow from magazines prodution, news prodution and arhiving. However there are more and more metadata to be ingested during live events, to allow effiient retrieval of an ever-inreasing number of highlights (beause of inrease in number of ameras). EVS for instane follows this trend as all replay mahines are onneted. A server is more and more often used to store highlights, as well as arhive material related to the game. Need for smart indexing is more and more important during live games. A perfet ase study is the soer Champions League overage of most of the premium hannels in Europe, inluding Canal+: up to 24 ameras 34 Kane

35 3.2. Magazine prodution For the moment, very few sports magazines are made with shared media and server based installations. Most of them are made with a single NLE mahine, and therefore a real MAM appliation is not neessary. The lassial workflow an be seen at VRT for instane: during the night, a journalist looks at the Tennis Australian Open live and notes down time odes orresponding to the most important ations, as live is reording on a VTR. In the morning, before going to bed, he gives its notes to a olleague of his, who is working with a raft editor to produe 90 minutes of magazine and highlights reporting on the previous night s mathes. A ase study is the ompletion of 10-minute highlights and magazine pakages for the Tour de Frane sine 1999, with the Orad Elefant ontrol panel on an Orad Forum server. Indexing is made by QDI with yling speifi menus. Beause Tour de Frane last 3 weeks, one stores up to 3 weeks of highlights to omplete themed pakages. 35 Kane

36 3.3. Sport News Prodution This workflow is very lose to the standard news one. However there is a requirement to ingest far longer live feeds in order to produe 30 seond highlights of a speifi game. There are 3 main destinations in sports items news prodution: Normal news bulletin of a general TV hannel News setion of a sport hannel News wheel inside a 24 hours sport hannel Most frequently the hannel reeives lean feeds of highlights of the game and the journalist adds an original voie over. Highlight videos are originated from live overage departments or wires agenies. This workflow is typial of ageny-based prodution for news, and frequently used for international politis overage. A typial example is the German Plazamedia 24 hours Sport Channel (Saban group) Sony Newsbase, or the new ambitious ESPN projet with Quantel, Omnibus and BBC Colledia ingest. 36 Kane

37 3.4. Video arhive Most television stations have arhives for news and for programs. In some ases the Sport departments of TV hannels have their own arhive, suh as Frane 2. In many ases, it is still videotapes on shelves, but with a appliation whih manages ontent information with also physial storage using barode referenes. VRT, Frane2 have both had suh an appliation for some time. In some ases (Frane2, ABC, Globo in Brazil) the sports department indexes live even if the essene is not digitally stored. Frane2 for instane has built a home grown appliation ( SIMCA ) integrating Fullroom seah engine, some rolling menus and smart key sripting, with a sport speifi voabulary for quiker indexing. In this ase, an arhivist is present either in the stadium or the studio and is always sripting live for arhival purposes. Sima allows live time apture and sripting of lips. 37 Kane

38 3.5. Video oahing A lot of lubs, national assoiations and governing bodies look for a ompetitive advantage using speialized oahing and training software. The priniple is first to ingest and index game videos. These tools always use low-resolution proxy editing. The main features are Math review for player eduation Graphial seletion of ation Simulation of game plans Editing themed videos, or highliting the play of one player. Eah sport-speifi appliation allows the building of a statistial database providing a legay for 1 to 3 years, along with analysis tools. Some software suh as Pinnale Teamsports or Dixons allows video mail between oah and players, with titling annotation and graphial omments. The leading US team sports, suh as football, baseball, basketball and iehokey, seem muh more advaned on this matter, using more statistis, than European sports. Rugby is also quikly developing, espeially with some software oming from NewZealand and Australia, suh as Sportsode of Sportste. 38 Kane

39 3.5. Video oahing There are also a lot of amateur oahing tools, and even the professional elite software pakages also ome in an amateur lite versions. Teamsports has a version for amateur players starting at only $1000. These software tools are sport speifi: graphi tools, statistis, GUI for video analysis. Some interfae with sport-speifi bio-metris software. Ingest is rather sport-ustomized than sport-speifi, and the only ommon part among sports is the editing software (Pinnale Vortex, for instane). 39 Kane

40 3.6. Heritage Center There is only one ase of a true heritage enter in Kane s database. The Frenh Tennis Assoiation (FFT) stores all highlights of the Frenh Open Tournament, as well as the Paris Bery Tournament. FFT owns the rights for these tournaments. It is a real MAM with ingest, ontent management and searh engine from QDI. Any player or team oah may researh highlights for eduation or training purposes, and an have aess to high-resolution MPEG2 pitures after browsing in MPEG4. This video repository is also used to ompile and sell highlights pakages on VHS of eah year s tournament, and to produe a daily magazine during the tournament. Ingest makes use of the QDI thesaurus. 10 items of information are entered live by volunteer tennis oahes on eah of the 8 ourts (2 per ourt). Soring is automatially added to the metadata thanks to a real-time interfae with the IDS soring system used at Roland Garros. This video repository appliation may have an important future impliation for major lubs, sport governing bodies, overing at the same time ultural, tehnial and ommerial purposes. 40 Kane

41 3.7. Distribution fatory There is only one ase (IMG/TWIi) in this ategory, with one similar projet at an individual football team. This is also a video repository, but with other media (musi, news item, stills, artiles, et.). The purpose of this repository is to distribute and to sell ontent assoiated with multiple media: themed TV hannels, wireless phones, Internet, synhronized TV and web broadast. It requires rights ownership or right management on behalf of the owner. No surprise then that a major sports rights marketing ompany suh as IMG has developed a omplete digital faility alled Interative Content Fatory. This has an editing tool (EDL editing and high res. onformation) to re-purpose 9000 hours of stored video of major lubs, major players, major tournaments (suh as Manhester United, Wimbledon, video of top 10 tennis players, et.). A remarkable workflow management tool allows the very rapid reation of any new distribution hannel for video ontent. 41 Kane

42 3.7. Distribution fatory A omparable projet exists at the soer lub PSG (Paris Saint Germain), with the projeted PSG TV, 2 big-sreen in house entertainment outlets, orporate hospitality, video at bars, and a lot of ontent to distribute to PSG fans through portable telephones and internet (30,000 smart PSG ard holders). PSG thinks that derivative produts, inluding digital branded ontent distribution, is the only way to inrease its revenue in the future. Sport fans are said to spend high budget on derivative produts. Besides fans are ready to spend money to reeive sores of the other mathes during PSG mathes when they are present at the stadium, as well as news and video highlights on the Internet and on mobile phones during the week. Category/revenue % of total Evolution TV Rights 50% Stability or derease Tikets 30% Stability or derease Sponsorship 10% Stability or derease Derivate Produts 10% Opportunity of inrease 42 Kane

43 3.8. In-house entertainment A lot of stadia want to improve the spetator experiene at their venues. They use big sreens display ation-replays as on TV. They develop in-house entertainment pakages to help justify the high level of tiket pries. Large eletroni soreboards/displays are one of the fastest growing features of the industry and require prodution, storage, automation, sport speifi graphis and CGI just like TV, but with higher definition requirements. This server-based prodution seems muh more developed in the USA for major US professional sports than in Europe, at least for now. In the USA, a lot of lubs own their stadia as opposed to ontinental Europe where they are owned by loal authorities for the most part. The need and appetite for statistis seems also muh greater in the USA, and for US sports in general (espeially for baseball). Although demand is less, the need for live statistis for European sports suh as soer and Rugby is beoming more and more important. 43 Kane

44 3.9. Internet portal Some TV sports hannels develop a web news portal, to deliver more in depth ontent than they an on TV, and thus to synhronize TV and web ontent. They promote the web (a free medium without too muh regulation) on TV. They promote TV on the web. Some leagues and lubs find a unique way to distribute video and ontent to their affiliates and fans. Most of the time the Internet is used more as a ommuniation hannel than as a revenue stream. Fox Sports, Eurosport for TV and NBA for leagues are perfet examples of the most visited sports web sites. 44 Kane

45 3.10. Sports speifiity For live sport & highlights, tools are not sports-speifi but sport ustomised: In some ases ingest is made through PCs with ustomised menu or smartkeys Smartkeys represent sport speifi items : For instane, F3= goal, F4 opens a menu with the names of players, et. In some other appliations there are ontrol devies or touh sreens with predefined zones. In this area, graphis/statistial tools are more sport-speifi than pure highlights appliations: for soer, showing off-side line visualisation, or takling statistis, fieldposition, or perentage of ball possession. Coahing is even more sport-speifi, espeially when it omes to statistis, presentation or GUI, and simulation tools. Ingest is omparable to highlights prodution and therefore more ustomizable than speifi. Editing and dupliation are standard features aross all sports. News prodution and repository/distribution is not sport speifi, however the ingest must be ustomized by sport for the last ategory of appliations. Suppliers US Football Baseball Basketball Ie hokey Soer Rugby Union Austr.Rugby Horse rae Table tennis Orad X Pinnale Teamsport X X X X In progress Dixon Sports X X X X Sportste X X X X X Applied Innovative Sol. X X X 45 Kane

46 3.10. Sports speifiity Coahing is even more sport speifi, beause the statistis, the presentation or GUI, but above all the simulations are sport speifi. Inside oahing tools, ingest is omparable to the one for highlights prodution and therefore is more ustomizable than speifi. Editing and dupliation are standard features aross all sports. Only 9 sports have oahing tools for the moment. We ould not find anything for tennis, yling, or fighting sports. Suppliers US Football Baseball Basketball Ie hokey Soer Rugby Union Austr.Rugby Horse rae Table tennis Orad X Pinnale Teamsport X X X X In progress Dixon Sports X X X X Sportste X X X X X Applied Innovative Sol. X X X 46 Kane

47 3.11. Interfae with soring and time systems One would think that the sore in soer, or the time gap in yling, would be perfet metadata to qualify a highlight of the game or the rae. One would expet it to be fed automatially into the database by soring, lok & time systems. In fat, we only found it one, for QDI Roland Garros, where ingest aptures the exat sore at any mark-in or mark-out point. The sore is an important indexation in a tennis math. It also shows that these systems are in their infany. On the ontrary, sore/time systems are usually interfaed with the on-air graphi tools for TV or stadium broadasts, even if there is also a lot of double input of sores. 47 Kane

48 3.12. Common funtions aross different appliations The 9 appliations may seem very different aording to their user destinations, but they atuallyuse a great number of the same basi funtions. For all appliations the neessary sripting (with a small amount of metadata) and highlight seletion has to be ompleted live by a person knowing the speifi sports and event. This should lead to input one during live events for all future needs: magazine, news, oahing, arhive, distribution. But it is far from being the urrent situation. Funtions Ingest & Sripting Live prodution Prodution Distribution Instant Replay &Slomo Graphis &statistis Searh Engine Thesaurus High Res. editing Video mail Dupli. tapes or DVD In-house entertain ment Manual indexing before arhiving Automati Indexing (sene hange) Low res Editing & Browse TV Mobile Web Appliations * 1. Replay & Highlights X X X Simple X X X prodution 2. Magazine prodution X X X X X X 3. News Prodution X X X X 4. Video Arhive X X X X X X X X X 5. Video Coahing X X X X X X 6. Heritage Center X X X X X X X X 7. Distribution Fatory X X X X X X X X X X X 8. In-house Entertainment X X X X X X X X X X 9. Internet Portal X X X X X * sport ustomised metadata & ontrol pannels 48 Kane

49 3.13. Digital islands reate isolated workflows Most people belong to different entities and island departments in TVhannels. At the end of live sports prodution, highlights are produed and put on tape, whih are offered for further use: news, magazines, arhiving All servers are purged, everything goes bak to tape, nobody takes the neessary additional 10 minutes to index it properly in order to simplify future work of other departments or providing the teams oahes with highlights as an additional servie. The magazine produed later in the week will omplete again the yle of ingest, sripting, mark in, mark out, As a matter of fat, only 6 projets out of 185 we have surveyed over several appliations, i.e. only 3 % of total. Those 6 realise live & highlights prodution, and magazine prodution with the same ingest, or live and arhive all together. 49 Kane

50 4. Segmentation and market analysis We an identify 4 market segments, regrouping our 9 appliations: Live/highlights, magazines and TV sports arhives (TV) and in-house entertainment systems (stadia): server suppliers suh as EVS, Leith, Grass Valley, but also Dixon for stadia, M2Plus Sports news where suppliers are the same as for news: Sony, Avid, Leith, Grass Valley Coahing, where Pinnale Teamsports, Dixon Sports, Sportste are leaders Repository/heritage enter/distribution, where QDI, Blue Order, TWII operate 1. Replay & Highlights 2. Magazine prodution 3. News Prodution 4. Video Arhive 5. Video Coahing 6. Heritage Center 7. Distribution Fatory 8. In-house Entertainment Suppliers prodution EVS X X X (beginning) Leith X X X GrassValley (Thomson) X X Orad X Avid X (few) X X X Sony X Pinnale X Dixon Sports X(4 US sports) X Sportste X Rugby, Blue Order X X Convera QDI X X X TWII X Doremi X Applied Innovative Sol. X Rugby, M2plus 9. Internet Portal 50 Kane X

51 4. Segmentation and market analysis Stadium in-house entertainment appliations belong to the same segment as live & highlights prodution beause the first objetive is to be able to replay ations on a big sreen during a live event; but parts of in-house entertainment suh as orporate hospitality and big sreen programmes may be stored in the lub video repository and heritage enter (i.e. glorious highlights of the past, ). Live & highlight prodution, magazine prodution and sports video arhive are grouped in the same segment, beause in the future Kane thinks that the live ingest sripting used for live transmission programmes will later be used to produe magazines and as a first step in indexation for arhiving highlights. We imagine that metadata ingested live will be saved at the same time as video for produing a magazine more effiiently, or keeping the right highlights in the sports arhive. 51 Kane

52 4.1. Live and highlights, magazines and TV arhive In this segment, live programs, using a lot of ameras, will need in the future to store more numerous highlights for replay during breaks as to-day. One will need a shared highlights video repository. Multi-day events will also benefit from this mini-arhive (to produe themed pakages), also useful for magazines and ultimately to fill the real sport arhive. Segment Segment Status EMEA Market Segment Evaluation Mature market for instant replay with independent servers. This segment evolves to shared media with more metadata ingest. EVS, the world leader is presenting something for NAB 2004, but still need a more sophistiated produt for longer term arhiving. Live & highlights, magazines prod. and in house entertainment, TV sports arhive EVS has sold 1600 LSM servers in the world.aording to another Kane's study regarding servers, 73 premium TV are not equipped in Europe, out of them 20 may implement it in the future 3 years for events lasting more than one day (Tour de Frane = 3 weeks) Market size Projet budget $1m MAM budget $0,3m 65 projets $6m /year Segment Projet # $m total Live & highlights/mag/tv arhive 65 0,3 19,5 6,5 6,5 6,5 6,5 6,5 6,5 same as Kane

53 4.2. Sports news Segment Segment Status EMEA Market Segment Evaluation Sports News This market is the same as for Penetration of server based general news newsrooms higher than for general news, beause sports hannels are riher, but they are also less numerous: ost of rights reate an entry barrier for this segment. Market size Projet budget $1m MAM budget $0,3m 5 TV per year $1,5 m/year Segment Projet # $m total Sports news 15 0,3 4,5 1,5 1,5 1,5 1,5 1,5 1,5 same as Kane

54 4.3. Video oahing Note that while in general the market surveyed is Europe, for tennis it is world-wide. Segment Segment Status EMEA Market Segment Evaluation Video oahing This is a mature market for US Video oahing is something sports: football, baseball, basket like $100 m market with ball. It is only emerging for other Pinnale Teamsports at $40m. sports inluding soer lubs and tennis players Market size Projet budget $150k MAM budget $100k Top 400 lubs in Europe Middle east in 5 years Top 200 tennismen in the world, top 100 tennis women. 100 other sports national governing bodies or lubs. Total market $140m: Emerging market = Year1: 5% ($7m Segment Projet # $m total % 5% 15% 20% 25% 35% Video oahing 900 0, ,5 13, ,5 31,5 54 Kane

55 4.4. Distribution repository Segment Segment Status EMEA Market Segment Evaluation This is a omplete emerging market, with only 3 ases (NBC Olympis, Frenh Tennis League, IMG) and a projet (PSG) Distribution repository & heritage enters But all "brands" lub will need it: about 30 soer lubs in Europe. Eah installation will be between 1 million euros and 10 million (average 3 m ) Market size Projet budget $3m MAM budget $2,4m Top 30 soer lubs in Europe Middle East in 5 years 10 governing bodies suh as :ATP, AWTP, ASO (Tour de Frane), FOCA Projet budget $1m MAM budget $0,8m 30 other sports governing bodies or lubs Emerging market = Segment Projet # $m total % 5% 15% 20% 25% 35% Distribution repository big projets 40 2, ,8 14,4 19, ,6 & heritage enters medium projets 30 0, ,2 3,6 4,8 6 8,4 Total $m Kane

56 4.5. Go-to market strategy In total, the Sports MAM market an be evaluated in Europe (+ worldwide tennis) at $8m for 2004, rising to $39.5m in Segment Live & highlights/mag/tv arhive Sports news Video oahing Distribution repository Total MAM/sports ,5 6,5 6,5 1,5 1,5 1,5 0 4,5 13, ,5 39,5 56 Kane