Canadian company looking to broadcast sporting and other events to spectators

A Montreal-based company is hoping to change the way spectators watch live sporting and other events by providing them with an on-site broadcast service that includes video, related statistics and event-related information via wireless devices. World Audio-Visual Entertainment Systems (W.A.V.E.S.) has applied to the CRTC for a broadcasting licence to offer the service, and is seeking similar approval in the United States as it negotiates with various sporting events to provide the innovative application. While the upstart company may be a competitor for advertising revenue, some broadcasters appear to be welcoming W.A.V.E.S. as a potential partner that can provide a value-added dimension to the broadcasting of live events, such as auto racing or golf. In fact, W.A.V.E.S. says it has already entered into discussions with CTV Inc., which holds the Canadian broadcast rights to several high-profile sporting events. W.A.V.E.S., owned by Marc Arseneau, is asking the CRTC to give it a general licence with the condition that it complete technical briefs and obtain all approvals required by Industry Canada prior to each event. Yves Dupras, a consultant to W.A.V.E.S, and former CRTC commissioner, notes that the only way the company can move forward is by applying for a licence since there is no exemption for television broadcasting as there is for radio. In 1994, the CRTC passed an exemption order that allows one-time events to be broadcast on low-power radio – Exemption Order 1993-45: Exemption Order Respecting Low-Power Radio Limited Duration Special Event Facilitating Undertakings. The Canadian licence is an initial step in a venture W.A.V.E.S. hopes to take internationally. It is seeking a licence for a one-way interactive service that would operate four channels. The first channel would be dedicated to live video broadcasting of the event, while a second channel would offer live video from a camera located in a strategic location. A third channel would be dedicated to online up-to-date statistics, and the fourth to an interactive display of event-related information, such as a map of the event area. The applicant is asking the CRTC to allow it to air 12 minutes of advertising per hour in total tallied across all channels. In response to deficiency questions from the CRTC as part of the application process, W.A.V.E.S. notes that it could broadcast on some of the channels programming currently available on conventional or specialty channels, including documentaries."When the event is not going on – and let’s say an event lasts three days – the rest of the time there could be documentaries on the drivers, for instance, that could be produced especially for the service or that could be bought from rights holders," Dupras tells CCR. Mark Brennan, who is in charge of new business and public relations at W.A.V.E.S., notes that an event like Montreal’s Formula One Grand Prix would be ideal as spectators in the stands waiting for the cars to zoom by could track the rest of the race on the portable receivers. W.A.V.E.S. proposes providing the service throughout the duration of an event only to those spectators in attendance, and would be receivable within about a three-kilometre radius. This year’s Formula One race in June is on a list of events identified by W.A.V.E.S. as part of its initial coverage plans in Canada, but it won’t have its licence by then. It isn’t scheduled to appear at a CRTC public hearing on the matter until July 15 – Broadcasting Notice of Public Hearing 2002-6. Written comments on the proposal are due June 20. Other events that have been singled out for coverage in Canada are CART racing series, women’s and men’s tennis championships, and major golf tournaments. W.A.V.E.S. states that coverage could also include business events such as conventions and trade shows, as well as cultural events such as music and movie festivals. Brennan notes that W.A.V.E.S. also has an application currently before the Federal Communications Commission for a licence to cover the Formula One race on September 29 in Indianapolis. As well, the company is looking at bringing the mobile devices to Formula One races in Europe. He adds that W.A.V.E.S. is close to signing a deal with Formula One organizers, who have retained the broadcast rights to the races. Brennan says under the proposed agreement, W.A.V.E.S. would pay a percentage of revenues or a flat fee for race footage. As well, it would have its own small crews at the events, supplying unique shots. For example, Brennan notes that the McLaren racing team is interested in having footage of its racers and pits made available through the devices only to its clients. He notes that Formula One sees the service as a potential additional source of broadcast revenue and "an enhancement for the fan onsite". W.A.V.E.S. is also in discussions with NASCAR, which recently took over the marketing and broadcast rights of all races from each track owner. "At this point, we have had very progressive talks with Formula One to the point where we almost have an agreement in place where we’d be the exclusive device of this type at Formula One worldwide," Brennan tells CCR. "We’re in deep conversation with the PGA (Professional Golf Association) to do PGA North America as well as PGA events in Europe. We’re in conversations to do CART and NASCAR." He adds: "The way we are going to operate is that when we show up at an event, the host broadcaster will give us a hardline feed of their broadcast and of their camera shots. We’ll have access to all their cameras as well as their final feed. Then, we internally with our small production unit on site, turn around and produce and package our own show to our viewing audience on site." Brennan says the genesis for the idea was born when Arseneau, a racing enthusiast who participates in the F1600 series, became frustrated attending races and not being able to follow what was going on throughout the entire course. W.A.V.E.S. notes in its application that because it will be broadcasting over-the-air in low-power and in analog mode in the UHF band 470-806 MHz, frequencies used will not be protected. The software and mobile devices will be developed in-house. Arseneau is also the founder of Deltavision, a Montreal-based firm founded in 1988 that develops distinctive models of cameras, multiplexers, monitors, and other equipment, and is now part of the DSC Group. Brennan says that the mobile devices, being produced under the brand name Kangaroo, would be manufactured by W.A.V.E.S. He adds that two prototypes have been developed and are operational, and that 5,000 more units are currently in production. "It has been tested in Montreal and it works," he points out. "We’re going to be doing a test at the Canadian Open golf event at the beginning of September. We’ve tested the technology, but ...we’re going to roll out some product and get some real feedback from the public." He adds that the $300 device is about the size of a Sony Walkman that is opened up to reveal a television screen, has headsets and can be carried around a person’s neck. The device will provide split-screen features so spectators will be able to view a main channel while previewing others. According to Brennan, W.A.V.E.S. has conducted market research via the Internet through New York-based Simmons that reveals that 46 per cent of people who attend at least two either car racing or golf sporting events a year would rent such a device. However, he notes that the company’s business plans include only tapping 10 per cent to 15 per cent of that market, at least initially. W.A.V.E.S. is looking at charging between $25 and $40 per day for the rental of the devices, with a discounted rate of $75 over three days. "The price will vary depending on the type of deal that we strike with the promoter," Brennan explains. "If the promoter wants a big chunk of it, then the price would go up. But the promoters in our conversations seem to be reasonable. They’re going to charge us an average rate that any other concession would be charged. We think we should be able to come in around $30." "Some people have labeled it the ‘fan companion’," he notes. "Everybody is looking for this type of new product to offer their fans so that they can have a better time at the event... Unless you’re sitting in front of a jumbo screen you lose the pace of the event. And even in front of the jumbo screen, you have only one option."

Canadian company looking to broadcast sporting and other events to spectators

Broadcast | May 23, 2002

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