Wednesday, 11th June 2008

HEADLINE NEWS

Real Madrid teams with up with Total Sports Asia

Real Madrid Football Club agreed a deal with Total Sports Asia (TSA) to distribute its mobile content in Asia. The yearly performance deal, could run up to the end of the 2009/10 season. “We are excited to be joining forces with Total Sports Asia to help us maximize our presence and fortify our popularity in Asia for the mobile market. They are a reputable organization and we are confident that their extensive marketing knowledge in will enable us to continue expanding our fanbase,” said Miguel Angel Hernandez, Media Director of Real Madrid Football Club. Julian Jackson, Senior Vice President of Total Sports Asia said, “We are very thrilled to have a club of Real Madrid’s stature appoint us as agents to distribute and market their mobile content in Asia. TSA has been in the forefront of brand-building for numerous international sports entertainment companies and we see this appointment as a stamp of confidence on our expertise and track record.” Sport Business, Sportcal, 10th June 2008


SPORT SHORTS

* AC Milan has launched its website in Japanese. The club, which in 2007 won the FIFA Club World Cup in Japan, has now developed its site in six languages, including Italian, English, Spanish, Portuguese, Chinese and Japanese. The site, which generates traffic of 1.4 million visitors and 33 million pages impressions per month, was developed in Japanese by Amazing Sports Lab Japan (ASLJ). Found at www.jp.acmilan.com , the site also comes complete with a new e-commerce section. Over the coming months, Japanese users will be able to put questions to Paolo Maldini, Kaka, Filippo Inzaghi and Alexandre Pato, while news will be updated regularly. Furthermore, there will be a history of the club's link to Japan, forums for Japanese fans, and opportunities to buy AC Milan merchandise sales from the e-commerce website. Sports Media, 10th June 2008

* China has launched a new communications satellite, Zhongxing-9, from the Xichang Satellite Launch Centre in Sichuan Province. Zhongxing-9 was ordered by China Satcom from the France-based Thales Alenia Space, and will be used for live television broadcasting. It will be put into use before the Beijing Olympic Games and will enable people to watch live broadcasts of Olympic events. ATV, 11th June 2008

* Commissioner of Income Tax (CIT) said that global broadcasters making money from live telecast of Indian cricket matches will have to pay taxes. CIT has dismissed Nimbus' plea, which said it was not liable to be taxed. Nimbus has filed an appeal against the order and the case will have wide implications for foreign broadcasters of live cricket matches including for the high-profile Indian Premier League. In the present case, assessing officer (AO) imposed a tax liability of Rs 60 million on Nimbus on income it earned by telecasting live cricket matches during 2002 to 2005. Nimbus did not agree with the assessment and took the matter up with the CIT but failed to get any relief. Nimbus had entered into an agreement with Prasar Bharati in the year 2002 for production of live television signals of cricketing events in India from Feb 2002 to Oct 2004. Indiantelevision.com, 10th June 2008

* Versus has struck a five-year, $27.5 million U.S. broadcast agreement with Amaury Sport Organisation, which oversees the Tour de France, according to The Wall Street Journal. Details of the pact, which includes English-language rights in Canada, were expected to be disclosed shortly. The move carries a comparatively low price (from when Lance Armstrong was in competition) but still represents a big risk. In the U.S., second-tier spectator sports, such as ice hockey, have taken a ratings beating in recent years. American viewers have remained fixated with the likes of such mainstays as pro football, college basketball's annual March Madness tournament, golf and Nascar. The WSJ Market Watch, 9th Jun 2008

* IEC in Sports agreed an international distribution deal with Portuguese Football League. The deal covers territories in most of Europe, the Middle East, North Africa and Asia. The deal includes a minimum of four matches per week on either a live or near live delayed basis. There will also be a weekly satellite highlights programme available at the end of each round of matches. Three matches per round will be produced in HD-format, except rounds where Porto, Benfica and Sporting Lisboa play each other. IEC in Sports has been international distributor of the Portuguese Football League for the last four seasons. Sportbusiness.com, 10th June 2008

* UEFA's campaign to have broadcasts of the European Championships plucked from the British list of untouchable "crown jewels" could rumble on for up to three years, according to a key player in the governing body's legal team. Under current European legislation, the competition is deemed to be of national importance in the UK that it is guaranteed to be shown in its entirety on terrestrial television. However, UEFA argues that only matches involving the home nations carry significant importance to the country as a whole and, therefore, non-terrestrial broadcasters should be allowed to bid for rights to games involving the remaining teams. The UK and Belgium are currently the only countries in the European Union to put the entire competition on its list. Sports Media, 10th Jun 2008

* CNN International has launched a free-of-charge Euro 2008 mobile update service. The mobile initiative offers a complete package of editorial content including videos, images, fixtures, match results and up-to-date football news. The offer, which can be utilised by prospective users at http://m.wecomm.com/euro2008 , is limited to the first 10,000 people to subscribe and is subject to availability. Subscribers who use the site get to choose a team in the competition for which they will receive an array of information such as SMS goal and match results, match reports, fixtures and video round-ups. Users can only subscribe to one team. Sports Media, 10th Jun 2008

* Nielsen research has revealed the unsurprising fact kids consumed more streams than those aged over 18, and spent more time watching online video from home. Kids 2-11 viewed an average of 51 streams and 118 minutes of online video per person during the month, while teens 12-17 viewed an average of 74 streams and 132 minutes of online video. Those over 18 viewed an average of 44 streams and 99 minutes of online video. ATV, 11th June 2008

* MyToons.com, the online animation community, has announced the launch of HD animation, a first for any online animation site. Animators and animation fans can experience independent and studio animations in high definition color and clarity on MyToons website. In addition to providing an HDTV-viewing experience, MyToons’ new system allows users to embed and share HD animations at full resolution both on the MyToons site and on other pages throughout the Internet. The HD animation feature set is part of MyToons’ unique and proprietary technology portfolio, under development by the company for several years. The launch also coincides with the launch of a new site design on MyToons. Indiantelevision.com, 10th June 2008

* MediaFlo USA, ESPN on ESPN Mobile TV and NBC Sports on NBC 2Go will provide live video coverage of all four days of this year's US Open golf championship. The event takes place from 12–15 June at Torrey Pines. The service lets sports fans watch all the US Open excitement unfold live on their mobile phones. ESPN and NBC Sports on NBC 2Go will provide MediaFlo USA with 30 hours of live coverage from the US Open, teeing off with the first round on 12 June. Customers can watch US Open programming on AT&T Mobile TV and V CAST Mobile TV from Verizon Wireless. In addition to the 2008 US Open, MediaFLO USA will continue to bring sports fans an unrivaled array of high–quality sports programming from CBS, ESPN, FOX and NBC Sports on NBC 2Go throughout the year. Indiantelevision.com, 10th June 2008


ARTICLES, COMMENTS, INTERVIEWS & OPINIONS

Partners the Secret to Mobile TV Success

Singapore’s mobile TV market is still locked in the trial phase, but it’s attracted a new overseas player that reckons the success of mobile TV hinges on business models and partnerships, not technology. “We don’t see it as a question of DVB-H versus MediaFLO or T-DMB, because all of the trials we’ve seen around the world so far show that all of the technologies work, and there is definitely demand for broadcast mobile TV,” says Chris Jaeger, managing director of the International Business Group of Broadcast Australia, which entered the Singapore mobile TV market last week via a new joint venture with PGK Media.

The new JV, Singapore Digital, is one of three firms with licenses from Singapore’s Media Development Authority (MDA) to trial mobile TV services. The other two are local broadcasting powerhouse MediaCorp (in partnership with cellco M1) and Singaporean vendor Innoxius Technologies, which manufactures pico base stations for DVB-H. PGK’s DVB-H trial, dubbed TV2GO, has been put through the paces by 100 subscribers since June 2007. The new Singapore Digital firm will keep the trials going until the MDA finalizes a framework for issuing full mobile TV licenses. “We’d be happy to see that completed in the next few months, and then commercial launch in 2009,” Jaeger told telecomasia.net ahead of an MDA press event promoting BroadcastAsia 2008. Singapore Digital, which will be exhibiting at the show, announced its official launch at the event.

Jaeger said that Singapore Digital will be looking at specific issues such as coverage requirements, particularly for indoor coverage in apartment blocks and underground coverage in the MRT train system. “We’ll also be testing some content offerings with focus groups, and talk with other players in the market to see what would make a viable mobile TV service in Singapore,” Jaeger said.

Broadcast Australia’s move into Singapore is part of the company’s strategy to look for business opportunities in mobile TV outside of Australia, where it’s been trialing DVB-H since 2005. Jaeger said that Singapore Digital will have a leg up on the potential competition because part of the secret to success in mobile TV is finding the right partner. In this case, he said, Broadcast Australia was bringing not only its expertise in broadcasting (terrestrial as well as mobile) to the Singapore Digital JV, but also the deep pockets of its owner, Macquarie Telecom.

As for the crucial ingredient – a viable business model – Jaeger said that while there’s no all-purpose model for every market, he reckons the most likely route will be a subscription model to start, with advertising providing additional revenues later on. That may sound obvious, but whatever the actual business model for Singapore, Jaeger said he has no doubts about the appeal of mobile TV to users – partly from the user feedback from the Sydney trials, and partly from his own experience during a conference in New Delhi, when he passed the time during an “uninteresting speech” by using a mobile TV phone to watch an Australia-India cricket match via local broadcaster Doordarshan. “Being able to do that and watch it on a high resolution screen really reinforced to me that there was something in this,” he said. telecomasia.net, 11th June 2008

IPL Lived up to Hype

Still hung over. That is what many of those directly involved in putting together the greatest pop cricket spectacle ever staged are still feeling even a week after the first edition of the Indian Premier League (IPL) championship came to its heady climax. The biggest cricket show on earth more than lived up to the expectations of those who invested in it. The public took to it, the corporates were sold on it, telecaster Sony hit pay dirt and the key individual behind it all - IPL chairman and commissioner Lalit Modi -won the grudging admiration of even his worst detractors. The fact that the event created a $2 billion market without a ball being bowled has been simply amazing.

Realms have already been written on how the perfectly packaged blend of highly competitive sport, merged with heady doses of 'celebrity and entertainment masala', had the cinema, television and retail industries collectively reeling. And the hype that was emanating out of India had its ripple effect across the globe. One could argue that it is linked to the fact that the Indian economy is increasingly being written and spoken about in the global press, but it is no small matter that virtually every big international publication did in-depth stories on the IPL speaks for itself. In Australia a million people watched the first match although it was past midnight there. UK's Setanta declared that its subscriber base has risen between 17-20 per cent on the back of the IPL. These are just some of the heady stats that the IPL has thrown up.

Sony home safe and dry:
Ratings were what Sony was tracking and they held up throughout, delivering above expectations more often than not. Before the IPL started there was scepticism about how the event would fare. Even when the event initially delivered strong numbers there were doubts on whether the momentum could be sustained. Naysayers carped that the novelty might wear off, Australian players leaving would prove to be a dampener, etc. Indiantelevision.com, 11th June 2008


One-On-One
Excerpts of an Interview with Blue Equity CEO Jonathan Blue with Ed G. Lane of Kentucky Business, June 2008

Jonathan Blue is chairman and managing director of Blue Equity LLC, a private equity firm with a diverse portfolio of business enterprises. Blue Equity’s holdings include BEST (Blue Entertainment Sports Television), formerly SFX Worldwide, one of the world’s largest sports and entertainment, representation, media, television and event platforms. Blue is the recipient of numerous business awards, including Small Company Business Leader of the Year (2006) and the Governor’s Economic Development Award (2004). Blue currently serves as chairman of the board of directors of Greater Louisville Inc., is a founding member of the Bluegrass Chapter of the Young Entrepreneurs’ Organization, and sits on the University of Louisville Board of Trustees.

Ed Lane: What are Blue Equity’s primary business activities?
Jonathan Blue: Blue Equity is a holding company that uses private equity to make investments in operating businesses and real estate.

EL: What are some of the companies Blue Equity has acquired?
JB: In addition to the real property we have purchased and developed, one of the firm’s successes is Enlace – Spanish Yellow Pages, which is now the largest publisher of Spanish yellow pages in the nation and was sold to Telefonos de Mexico SA, or Telemex, in 2006. Enlace made 17 acquisitions over the course of about 32 months and also launched additional markets on top of the acquisitions. Enlace, based in Louisville, grew from one directory to the largest in the United States. Blue Equity maintains a 20 percent interest in Enlace and continues to manage the business, which has quadrupled in size since it was sold two years ago.

Blue Entertainment Sports Television (BEST) is a rollup comprised of eight acquisitions in under two years. BEST does everything from own and manage sporting events to manage the careers of athletes and entertainers, top-tier athletes and entertainers. BEST also owns events, production rights for those events, and sells television rights for properties like the Boston Marathon, the U.S. Open, the French Open, volleyball and other events across the world.

First Omni Mortgage Lending is an Internet mortgage business that is doing well and was not involved in the sub-prime market. Omni was our first investment back in early 2000 and is located in downtown Louisville and Tulsa, Okla. The Voice Tribute was bought about a year ago and is a 60-year-old community newspaper servicing Louisville, but it is distributed to about 42 states and several countries.

EL: What is the No. 1 problem when making acquisitions?
JB: That’s a very good question. The hardest part about acquisitions is making sure to not only identify the right company but to also select the right people. Almost all of our transactions include retention of the management team as a management or an equity participant. If we get that wrong, the transaction it is not going to work. We’ve not had success in every acquisition that we’ve done. We’re human, but we get acquisitions right more often than not.

EL: Prior to forming Blue Equity in late 2004, you were partners with your brother Todd (Blue, who is the CEO of Cobalt Ventures). What was the strategy for separating your business into two separately owned and managed companies?
JB: First, Todd and I worked together in the family business for several years; we had a great relationship. I wanted to expand into both real estate and private equity. I believe Cobalt’s focus is almost exclusively real estate. Blue Equity has basically got a platform that’s 50-50 – half real estate and half operating private investments. Todd and I have some property that is jointly owned, but basically we have two completely separate business entities.

EL: You have received a lot of acknowledgement as a young business professional. Why do you feel you have been so successful?
JB: I had very good teachers in my father and mother – both from values and work-ethic standpoints. For as long as I can remember, my parents worked, and today both of them still work in one way, shape or form. I also have a great role model in my wife, who is a very, very hard worker both in her professional career and in all the things she does.

I went the University of Pennsylvania and St. Francis High School in downtown Louisville. Some of the things I saw while in high school and the people I came in contact with at Penn molded me to do the things I do today. I follow the passion I have from both a professional and a not-for-profit standpoint.

EL: How did your previous employment assist you in managing your business and equity investments?
JB: I worked as a management consultant in New York City. I was at the bottom of the totem pole the day I started, even though I had a great college background and was prepared for professional life in New York. My first assignment was on the turnaround team. Later on, I moved to strategy, and lastly I moved to operations and quality improvements. Not to be cute, but essentially my training, by fluke or by luck, prepared me both from an educational and a professional standpoint for what I do today.

EL: The Blue family business, which included Louisville Scrap Metal Material Co., was sold to Progress Energy in 1998 and more recently to Caterpillar. Why did the family decide to sell its core business?
JB: It was the family’s business for a long time. The scrap-metal materials business is a lot of different businesses – real estate, commodities, environment, markets, international trade and employee relations. The business gave me a great background and diversified business experiences.

Selling obviously was motivated by the financial benefits. The scrap markets have quintupled since we sold the business. Looking back, someone could argue financially it wasn’t a good deal, but there are always two sides to every argument. I would say the economic motivation, the ability to do more internationally for Louisville, and for the opportunity for our family to grow and diversify its business were the main reasons for selling.

EL: What is your long-range vision for the growth of Blue Equity?
JB: Our firm is taking a very close look at health care. Obviously, Louisville is very intertwined with this industry, and there’s a lot of spin-off and many talented people in this market. I never want to discount the health care sector.