CTVNews.com launch puts Blue Zone into hunt for new broadcasting customers

The Sept. 21 launch of CTV Inc’s CTVNews.com has moved Blue Zone Inc into prime time, and given the Vancouver-based company the profile and market credibility it needs to start selling its software and services to other broadcasters. CTV represents the first large-scale commercial implementation of Blue Zone’s NewsBZ software, which merges audio, video and written content for multi-platform delivery. Blue Zone IncBlue Zone Entertainment Inc329 Railway St, 5th Floor Vancouver, BC V6A 1A4 (604) 685 4310 Second Quarter results, ending June 30, 2000:Six-month total revenue $425,000 ($401,000 in 1999)Six-month net loss $1.93 millionNow Blue Zone executives are eyeing dozens of new digital specialty stations that will be licensed by the Canadian Radio-television and Tele-communications Commission later this year, as well as broadcasters in the United States and elsewhere. Boosting sales of the package is a priority for the company. According to its latest financial reports, its revenues are now almost exclusively derived from the CTV contract. Blue Zone is supporting BCE Inc and CTV’s joint bids for digital TV licences, though COO Catherine Warren won’t discuss the exact nature of any discussions taking place with that applicant or others. "Our goal and focus is to mass-license NewsBZ and so we are in active discussions with everyone in Canada and everyone in the U.S. who is a possible licensee for the software and for the services that wrap, package and customize the software," she says. "We are extremely buoyant about the focus and the thrust of interactive broadcasting in Canada, and believe that Canada is a wonderful test bed for what is possible internationally," she adds. "That’s one of the powerful reasons that we have for seeding this here in Canada and then showcasing it around the world." Blue Zone might benefit from the recent merger of BCE, CTV and Thomson Corp, owners of the Globe and Mail (CNM, September 20/00). Warren won’t say whether the company is in specific talks to begin merging news and content from the CTV, Sympatico and Globe sites, citing concerns over forward-looking statements. She says, though, that merging the content wouldn’t pose a technical challenge, and that NewsBZ is intended to be scaleable. Warren does say that bringing RoBTV into the fold, for example, would provide an opportunity to increase Blue Zone’s revenue stream. "If someone came to us on their own, we would find a way to turn that into revenue for Blue Zone. In the case of where they’re both through the same parent, I wouldn’t want to speculate as to how that would turn into revenue because we haven’t had particular discussions to that end," she told CNM. Warren says Blue Zone is also looking at technical improvements to the product. On Sept. 12, the company announced a $5-million private equity placement, money that will largely be applied to a next-generation of the NewsBZ product. Details of the next version aren’t being released, though Warren and a company release say requests for features from existing and potential clients are being incorporated. The company is also paying attention to future trends in set-top boxes and other interactive technologies, and is both a Microsoft Corp solutions provider and member of the Advanced Television Enhancement Forum. A new studio has also been opened in Toronto to service the CTV contract. The company doesn’t currently have any staff in the U.S.

CTVNews.com launch puts Blue Zone into hunt for new broadcasting customers

News | 10/04/2000 4:00 am EDT

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