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Olympics drives digital demand
Major sporting events almost always act as a catalyst for consumerism - particularly when it comes to electronica. But now, with the Beijing 2008 getting into full swing, there's a whole digital domain with which to enjoy to the Games - and that's just the tip of the iceberg, says Ed Waller.
Just as the World Cups and Olympics of the past have driven sales of widescreen television sets, VCR machines and high-def plasma screens, the current Olympics in Beijing are now driving the uptake of another new technology: broadband video. In fact, live online streaming is playing a bigger role at Beijing 2008 than at any previous Olympic Games and companies retailing broadband services can expect spikes in video downloads and more homes signing up.
Far more than with the 2004 Games in Athens, the broadcasters' use of new media to extend their coverage of these Games is coming into focus. Online and mobile platforms allow rights holders to exploit their footage in a host of new ways. The BBC is streaming six dedicated channels online, and is almost doubling the number of hours it is dedicating to the Games, while in the US the NBC network has announced that a whopping 2,200 hours of live Olympic video will be available via its website.
In fact, this summer may turn out to be a pivotal moment for sports video streaming on the web, with the 2008 Games receiving an unprecedented amount of high-resolution, live, time-delay and split-screen coverage. But while web distribution can supplement a sports network's television channel, it also brings with it new threats.
"The biggest cause for concern is the growing trend for sports leagues to withhold their new media rights to exploit on their own platforms," says Sarah Johnson, research analyst at Screen Digest. "This is an increasingly common practice in the US. Historically leagues have been dependent upon the networks to distribute their footage to a wide audience. But now some of the bigger leagues, including the NFL and MLB, are bypassing the networks and creating their own pay-TV channels."
While this scenario may take some years to fully emerge, there is also a more immediate worry for the networks - the issue of rights inflation. According to Screen Digest, sport video is set to generate the majority of online TV revenues - in the US, sport will account for 51% of online TV revenues in 2008 - but the overall online video market is still small. By 2012 the US online sports video market will be worth US$1.6bn, while in the UK it will stand at £80m (US$160m).
And while the athletes limber up for their big web video debuts, the world's biggest legal download services iTunes is entering a new and interesting phase in its relationship with BSkyB, Europe's biggest satellite TV platform and now a major player in the UK's broadband sector. In a nutshell, Sky is going head-to-head against iTunes with its planned SkyTunes music joint venture, through which subscribers will be able to listen to as many on-demand tracks as they wish from the labels who sign up to the service, but the number of songs they'll be able to download will be restricted each month.
Downloads will be available in DRM-free MP3 format, which means customers will be able to transfer them to a range of devices - unlike Apple's service. "We aim to offer an easy and affordable service for all UK music fans, while ensuring that artists are properly rewarded for their creativity," says Mike Darcey, chief operating officer for BSkyB. Universal Music has already signed up to the service, which will launch later this year.
But in the meantime, Apple is accommodating the satcaster with a dedicated Sky portal on iTunes UK, selling episodes of US television dramas like 24 and Bones. Apple and Sky: partners in video, rivals in music.
Another innovative way of selling music was unveiled earlier this month. Electronic music duo The Chemical Brothers joined with Google Earth for a user-generated global video project to push their latest album. Fans of the band are being invited to create videos around the theme of Midnight Madness - the name of the pair's latest single - which will then be uploaded on to Google Earth via The Chemical Brothers website.
The website, thechemicalbrothers.com, will then tag each video clip to the exact location of its creator on Google Earth. The best videos will then be edited by production company Nexus and used to form the video for the new single. The completed film will then be premiered on The Chemical Brothers website and also as a YouTube exclusive on the same week as the band's 'best of' album Brotherhood is released on September 1.
Just as the increasing bandwidth on the web is allowing sports broadcasters to come up with new ways to distribute content to fans worldwide, it's also allowing bands to do likewise. The long-hyped digital future is finally upon us. Enjoy.
