INTELLIGENCE REPORT –SPORTS AND THE MEDIA CHANGES IN BEHAVIOUR 9 Media Overconsumption 9 Virtual Affirmation 3 2 1 5 4 3 2 1 10 NEW SUPPORTS ADAPTED TO SPORTS 10 - TELUS Multimedia

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SPORTS AND MEDIAROLE, EVOLUTION& NEW ISSUES

I N T E L L I G E N C E R E P O R T – S P O R T S A N D T H E M E D I A

THE

2 INTRODUCTION

3 THE ROLE OF THE MEDIA IN SPORTS

3 A COMMON DEVELOPMENT3 AN UNDEBIABLE INFLUENCE4 A SOMETIMES INCESTUOUS RELATIONSHIP4 THE TEMPTATION TO FORMAT SPORTS5 MORE AND MORE LUCRATIVE

BROADCAST RIGHTS5 The Olympic Event5 A Compulsory Route for Sports Networks

6 THE CURRENT SITUATION

6 A SHARED EVOLUTION WITH CONSEQUENCES6 NEW PLATFORMS AND SUPPORTS6 HDTV6 Internet7 Cellphones7 - Rogers Wireless Offered 2006 FIFA World Cup

Coverage on Cellphones7 - Bell Delivered CBC/Radio-Canada Specific Olympic Coverage8 Video Games9 CHANGES IN BEHAVIOUR9 Media Overconsumption9 Virtual Affirmation

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10 NEW SUPPORTS ADAPTED TO SPORTS10 - TELUS Multimedia Activation Program Through Hockey10 - CFL Brings the Game to BlackBerry for Free

11 ARE TRADITIONAL MEDIA IN DANGER?11 Sports TV’s strength11 Significant Results12 Is There a Move Toward Segmented Sports Television?12 - Canadian Amateur Sports Network (CASN)12 - CBC Sports Channel Projects12 - A Second Sportsnet12 - A Network Devoted to Extreme Sports13 The Written Press Looking for Its Second Wind 14 Radio in a Time of Transformation

15 WHAT DOES THE FUTURE HOLD FOR THE SPONSORSHIP INDUSTRY?

15 NEW OPPORTUNITIES FOR SPONSORS15 - Rogers VIP Grey Cup Experience

16 CURRENT TRENDS16 When an Amateur Video Becomes Real Advertising16 - The Campbell Pros Contest16 - CTV Kicks Off Super Bowl Contest

17 CONCLUSION

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2SPORTS AND THE MEDIA


At a time when the media landscape is undergoing radical trans-formation with the emergence of new platforms, SportDecisiontakes an in-depth look at the close relationship between theworlds of sports and information.

If recent decades have seen sports assert themselves andincrease in popularity thanks to the media, then the 21st cen-tury marks a real turning point. The appearance of new sup-ports has turned everything on its head and brought about pro-found changes in consumer habits related to information andentertainment.

This evolution has direct consequences for sporting events,disciplines, amateur and professional organizations, athletesand the sports industry as a whole.

What are the repercussions? How are relations between sportsand the media evolving? Do traditional media and new supportscomplement each other? What new trends can sponsors capi-talize on? SportDecision sums up the latest developments in atopic in full (r)evolution.

It makes for good reading. Enjoy!

Alain Hotzau - Editor

INTRODUCTION

SOMMAIRE

A COMMON DEVELOPMENT

Sport is a societal reality. A passionas well as a crowd stimulus, it hasalways held a dominant place asstrategic content within the media.

The need to more easily distinguish com-peting teams accelerated the advent ofcolour television to the detriment of blackand white television. But an equally validcase can be made for reciprocity. Themedia have historically been behind thecreation of several major sporting events.Some promoters – former sports journal-ists – breathed new life into sports with amodern vision of ultimately making anevent a media presentation.

Christian Prudhomme, Director of theTour de France, sums it up this way: “I agree with the statement that there areno sports without the media and no mediawithout sports. A large number of majorsporting events were invented if not byjournalists then by newspapers: the Tourde France, Tour of Italy and Tour of Spain

(cycling), European Cup of champion foot-ball clubs (soccer), World Cup skiing [...] Idon’t know if I’d call it a love story betweensports and the media, but it’s a passionateone anyway. The media has grown side byside with sports. Newspapers createdsporting competitions, radio brought theminto people’s homes and then televisioncame along and magnified everything. And

in the course of it all, TV also grew as evidenced by the outstanding media cover-age of major sporting events.” (“Sports,argent, medias,” French Senate, May 2004)

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The media have historically been behind the creation of several

major sporting events.

AN UNDENIABLEINFLUENCE

There is a correlation between theappearance of television in sportsand the evolution of sports. AsInternational Olympic Committee(IOC) President Jacques Roggestates, “Sport has to do more to adaptto the needs of television if it doesn’twant to disappear.”

As an example, Rogge cites disciplinesthat have had to change their formats(length and type of contracts) and rules(especially scorekeeping) to find a nicheon the small screen: the creation of the tiebreaker in tennis; the move to the whiteand blue kimono in judo, to the great con-sternation of the Japanese who considerthe abandonment of the all-white kimonoas a sacrilege; and the second false startelimination rule in track and field.

According to the head of the IOC, sportscompetitions have become faster, simplerand, thus, more appealing. Rogge citesthe example of skicross, “a long andtedious sport that, under pressure from television networks, has become a morerugged, exciting and technically interestingcompetition.”

This media pressure has led to an era ofsports spectacles.

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THE ROLE OF MEDIA IN SPORTS

A SOMETIMES INCESTUOUS RELATIONSHIP

The media sometimes play an ambiguous role vis-à-vis sports.They can propel a sporting event ordiscipline to unheard-of heights ofpopularity or ring its death knell in a burst of opportunism.

The Tour de France has experienced bothof these extremes. Propelled by solidmedia coverage, the world’s most popularcycling event rose to spectacular heightsand international popularity. But mediasupersaturation of the 1998 doping scan-dal and the seeming air of a witch huntthat permeated media reporting resultedin a dizzying fall from grace for both theevent and the discipline.

Another area of ambiguity is the media’sinfluence on sports results. While somesports, such as hockey and, more recent-ly, tennis, have adopted the video replayphenomenon, other disciplines remainundecided about whether or not to inte-grate this kind of data. The result is havingundesirable effects.

Soccer, the world’s most popular sportand the one with the greatest media cov-erage, faces this problem. Controversiesabound: Diego Maradona’s infamousHand of God goal in 1986 and, morerecently, Zinedine Zidane’s infamoushead-butt have made their way into thesport’s annals.

Briefly, in the 2006 World Cup final thatpitted France against Italy, French soccerstar Zidane head-butted Italian playerMarco Materrazi, following a provocation.Initially the gesture went unnoticed by thereferee but the assistant referee, who wasoff the field, saw a slow-motion replay onthe screen installed in the stadium. Thissmall incident had enormous repercus-sions. The assistant referee motioned thereferee over and reported what hehad inadvertently seen on the screen.

Although replays are not sanctioned insoccer, the referee’s decision to sendZidane off influenced the outcome of thegame. France lost the World Cup and thecontroversy began…

THE TEMPTATION TO FORMAT SPORTS

As Rogge points out, sports need to do more to adapt to the needs oftelevision without losing its soul, inother words “without endangering the health of athletes or the very spiritof sport itself.”

This involves, above all, setting limits thatcannot be crossed as the dependencyrelationship between the media andsports becomes more and more overt.

Soccer, although gaining in popularity inNorth America, has yet to join the ranks ofsuch kings of sport as football, baseballand basketball. Reasons for this could bethe game’s culture and the fact that it isnot formatted for American television.

During the 1994 World Cup, which wasplayed in the United States, the heads ofU.S. networks that were broadcasting theevent tried to introduce quarter breaksduring the games in order to increase the number of advertising spots. TheFédération Internationale de FootballAssociation (FIFA) logically refused to doanything that would change the nature ofthe sport. But how much longer can theyhold out?

Initially the gesture went

unnoticed by the referee but the

assistant referee, who was off

the field, saw a slow-motion

replay on the screen installed

in the stadium.



THE ROLE OF MEDIA IN SPORTS (continued)

Zidane and his controversial gesture

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MORE AND MORELUCRATIVE BROADCAST RIGHTS

One of the results of the close linksthat have been forged between thesports world and the media is thebroadcasting of sports events.

Today, broadcast rights are a major issueand the subject of intense competition.The audiences and revenues that thesebroadcasts generate are substantial. Insheer numbers, broadcast rights to sport-ing events are making an impact as one ofthe major variables in the economy ofaudiovisual media.

THE OLYMPIC EVENT

The International Olympic Committee(IOC) has received $2.5B from broadcast-ers between 2005 and 2008, according toan analysis by Reuters news agency.

Income from broadcasting and new media rights for the Vancouver 2010 andLondon 2012 Olympic Games has already

risen nearly 40% from the previous two-Games package of Beijing and Turin,and will be in excess of $3.0B, accordingto the report.

The IOC estimates this figure will reachabout $3.3B. It has said some 15% of thatwill come from new media, including theInternet and cellphones.

A COMPULSORY ROUTE FOR SPORTS NETWORKS

The survival of sports networks dependson having exclusive broadcast rights forcertain sports properties. This state ofdependency combined with strong compe-tition has caused a dizzying rise in thecosts of obtaining these rights.

The Réseau des Sports (RDS) renewed itsexclusive broadcast rights to the MontrealCanadiens hockey team until 2013, anunmatched sports property in the Quebecmarket. Faced with a keenly interestedRadio-Canada, RDS had to pay top dollarto acquire the rights. This acquisition isthe engine for RDS’ survival, which dependson this property.

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The Réseau des Sports (RDS)

renewed its exclusive broadcast

rights to the Montreal

Canadiens hockey team until

2013, an unmatched sports

property in the Quebec market.

THE ROLE OF MEDIA IN SPORTS (continued)



A SHARED EVOLUTION WITHCONSEQUENCES

Spearheaded by television, mediacoverage of sports has virtuallyexploded in the post-modern era.New technologies have beendeployed to create a more dramatic,exciting and enticing sporting eventin an effort to reach an ever increasing audience.

Materials, techniques and editing stylesare being used to transform televisedsports into dramatic events that the viewer is invited to join in.

Pre-game analyses, camera angles, slowmotion techniques, spotlighting certainathletes, play-by-play commentary, gamewrap-up, video replays and game high-lights are all components of a modelintended to generate emotion, drama andheroism. Additionally, they focus on thesignificance of the outcome of the compe-tition for the current players.

NEW PLATFORMS AND SUPPORTS

HDTV

Faced with emerging new supports,television is battling to stave off itsdecline. While specialty TV is one wayof meeting consumers’ expectations(See 5 - ARE TRADITIONAL MEDIA INDANGER?), the solution to reversingthe trend lies in high-definition television (HDTV).

For RDS President Gerry Frappier, thedecision to broadcast in high definition(HD) is driven by conscious desire and bymarket necessity: “The arrival of HD is as

huge a technological revolution as the tran-sition from black-and-white to colour televi-sion. Moving to HD is a necessary addedcost and results in a considerably improvedproduct, even if the viewing public hasn’tnoticed it yet.”

Sports and movies are the two drivingforces that will help HD become a perma-nent fixture. One compelling example is inhockey: when image quality is improved,viewers can see the puck better.

INTERNET

In just 10 years, the Internet has becomeTHE multimedia support to meet every-one’s needs with content that is intendedto be consumed quickly, an inexhaustibleamount of information that is regularlyupdated and instantly accessible viasearch engines.

The Internet is indispensable in respond-ing to all kinds of interests, from profes-sional and cultural to entertainment andleisure. With its continuous presence onthe World Wide Web, the sports industry isreaping the benefits of the Internet plat-form. (See 4 – NEW SUPPORTS ADAPTEDTO SPORTS)

Sports content on the Web – with its com-pilation of data and player statistics, quickinterviewers and game highlights – differsfrom that of the general media, whichtake a more random approach to coveringa game and prefer to focus on the opinionof sport specialists.

With its seemingly unlimited capabilities,however, the Internet is only beginning tobe tapped for its true value. (See NEWOPPORTUNITIES FOR SPONSORS).

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THE CURRENT SITUATION

The arrival of HD is as huge a technological revolution as the transition

from black-and-white to colour television.

CELLPHONES

By combining the Internet with the cell-phone and its smartphones, users nowhave quick access anytime, anywhere, tothe information they want. In Japan, acountry on the cutting edge of new tech-nology, cellphones now outnumber land-lines – a sign of things to come.

Today, cellphones area m e d i u m i n t h e i rown right. The exclu-sive content offeredby carriers is a per-suasive sales argu-ment to reach targetconsumers who arehighly responsive tothis kind of offering,especially if it involvessports.

With the new AppIe iPhone, ScoreMedia Inc. has launched Score MobileiPhone Edition, a free sports web appli-cation that can be accessed with aniPhone or iPod touch. This applicationwill offer users previews and real-timebox scores for MLB, NFL, NHL, NBA,CFL and NCAA games.

In Canada, cellphone carriers Rogersand Bell now compete to offer enticingand exclusive packages that includesports content. A couple of examples aregiven below.

ROGERS WIRELESS OFFERED 2006FIFA WORLD CUP COVERAGE ON CELLPHONESIn 2006, Rogers Wireless concluded anexclusive broadcast agreement withInfront Sports & Media, the worldwidedistributor for electronic content forFIFA. Rogers became the Canadian sup-plier of the official mobile video of theFIFA World Cup.

“This agreement enabled soccer fans tokeep close tabs on their favourite team andshow their support while staying on top ofthe game wherever they were,” explainsSylvie Charrette, Senior Director ofMarketing and Communication for RogersWireless.

During the FIFA World Cup, Rogersoffered a new series of wireless MP3 andvideo players, along with exclusive con-tent. Soccer fans had access to majorstats; they also could download nationalanthem ring tones and soccer graphics.

BELL DELIVERED CBC/RADIO-CANADASPECIFIC OLYMPIC COVERAGEBell, sponsor of the Canadian OlympicTeam at the Beijing 2008 OlympicSummer Games, delivered CBC/Radio-Canada specific coverage of the BeijingGames on cellphones, the Internet and TV.

“We know that Canadians love the OlympicGames and we were eager to ensure ourcustomers had the best access possible toBeijing,” states Loring Phinney, Bell VicePresident for Corporate and OlympicMarketing. “This partnership meant Bellcustomers across the country had accessto a unique array of Olympic content howand when they wanted it.”

The CBC/Radio-Canada specific coveragewas available to Bell customers acrossCanada in forms ranging from videostreaming on cellphones to full high-defi-nition television feeds of specific sportsduring the Games.



THE CURRENT SITUATION (continued)

VIDEO GAMES

With their unending appeal to new gener-ations of consumers, video games are amultimedia platform with close ties to thesports world.

Electronic Arts (EA), which specializesin video games with a sports theme (75%share of the North American market),announced higher end-of-year financialresults for 2006 based on a majorincrease in sports games.

Madden NFL 06 was the number onesports game sold on the North Americanmarket, followed by NCAA Football, FIFA(soccer) and NBA Live (basketball) withsales totalling millions of copies. TigerWoods PGA Tour 06 (golf), NHL 06 (hockey)and NASCAR 06 (car racing) also soldupwards of 500,000 copies.

And here’s news! EA is no longer con-tent with the traditional platforms ofPlayStation (Sony), Xbox (Microsoft)and Wii (Nintendo) and is now eyeingthe cellphone market with an adapta-tion of Madden NFL 07.

Video games today are seen as genuinemedia that are capable of reaching mil-

lions of fans. One sign of the times is themarketing of ad placements within videogames themselves. You can sometimesfind the same advertisers in a game thatyou would for a real sporting event, teamor league.



Le jeu-vidéo est perçu aujourd’hui comme un véritable média pouvant

rejoindre des millions d’amateurs.


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SPORTS AND THE MEDIA


CHANGES IN BEHAVIOUR

Faced with these emerging multimediaplatforms, the consumption habits of sports fans are changing, which in turn is leading to new trends and behaviours.

In a world in which information spreadsquickly across several supports, fans arelooking for several things at the sametime: valued information, rumours, statis-tics, main highlights and exchanges. TheInternet has become the support of choiceto access all of the desired informationanytime, anywhere.

MEDIA OVERCONSUMPTION

“Everything, everywhere, all the time”seems to be the new motto of consumers.Proof of this is how we use the media.Today we busy ourselves with several sup-ports at the same time. It is not unusual tofollow a game on television while readingor posting comments on online forums.

If the end result is a quick overview ofinformation, the same holds true forthe rebroadcast of a sporting event. It is not by chance that some sports net-works rebroadcast an abbreviated ver-sion of a game, which was televised thatsame night.

Viewers continue to zap channels to avoidthe ever present advertising messages.These ad breaks, however, are becomingopportunities for communities of sportsfans to gather together and exchangecomments on online forums.

VIRTUAL AFFIRMATION

The possibilities offered by these newplatforms empower consumers to pro-duce their own personal content on blogsor vlogs (video blogs), add a presentationpage or, more often, chat online withother forum members.

The current trend is to belong to a virtualcommunity. The desire is to reach out andjoin people who share the same valueswithout actually having to meet them inperson. One example of this trend is themultiplication of sports exchange sites,spurred on by sports as a catalyst.

It’s not by chance that this fall, theFrench-language sports network RDS willbe launching a community website devot-ed to sports fans. With 400,000 membersalready profiled on its rds.ca site, the network is looking to create a socialexchange platform along similar lines asFacebook.

“It’s a bit like Facebook, but the applicationis different,” explains Michel Gagnon, VicePresident of Sales and Marketing at RDS.“We want to create this huge social sportscommunity that anyone can be a part of andinteract with others who share the sameinterests and a common passion, whether

it’s hockey, fishing oramateur sports.”

The project, whichunderwent testing thissummer, will give fanstheir very own page onwhich they can posttheir profile, photos,interests and opinions,and can blog and chatonline.

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“Everything, everywhere,

all the time” seems to be

the new motto of consumers.

Proof of this is how we use

the media.

NEW SUPPORTS ADAPTED TO SPORTS

The advent of the Internet has intrinsically changed the sports world.Simply by using a platform that isaccessible to everyone, any sportsorganization can draw attention andpromote itself to a broad audience.

Every sports discipline in every country ofthe world now has its own official websiteon which countless other fan sites andblogs piggyback. A community is thusformed to link all these entities that arelooking for others with like-mindedinterests, to be informed, to chat andeven to buy products in their favouriteteam’s colours.

This allows sports organizations to speakdirectly to their core target group and tomarket more effectively to their respectivecommunities.

For disciplines relegated to certainanonymity, the advent of the Internet is ablessing. Sports that fail to get televisionexposure, including women’s sports andsports for the handicapped, now haveinteresting alternatives.

Beyond a presence on their official web-site, these organizations, which have beenleft by the wayside, can now promote theirevents on Web hosting sites that produceand display images of sporting events fora minimal fee. Sports organizations canthen market these events to their mem-bers on their respective sites.

Some bigger sports organizations, suchas the Raptors and the Toronto MapleLeafs, are already proactive and have theirown TV networks. Other sports leaguesand organizations are also setting them-selves apart with innovative tools, includ-ing the following:

TELUS MULTIMEDIA ACTIVATIONPROGRAM THROUGH HOCKEY

In September 2007, TELUSlaunched an exciting multime-dia activation program through

Quebec Major Junior Hockey League(QMJHL). Quebec hockey fans had accessto all 630 games of the 2007–2008 seasonas well as all of the playoff games. Allgames and content were webcast liveor were available online on the Internetfor free.

Fans also had an opportunity to downloadcontent and exclusive material on theircellphones. Nearly 250 QMJHL-basedring tones, theme songs, pictures, inter-views and videos were offered exclusivelyto TELUS subscribers for downloadingduring the season.

CFL BRINGS THE GAME TO BLACKBERRY FOR FREEFor the 2008 season, the CanadianFootball League (CFL) has partneredwith Viigo Inc. to deliver CFL fans amobile, interactive and real-time infor-mation service via their BlackBerrysmartphones. After downloading the freeViigo software, fans can access tickets,schedules, news, scores and real-timestats from their BlackBerry.

“A new generation of football fans isdemanding new ways of staying connectedto the sport they love,” reports MarkRuddock, CEO of Viigo. “In fact, this alwaysconnected, digital generation is looking attheir relationship with their favourite sports

and sports teams in revolutionary new ways.From real-time scores and fantasy stats tofeatures we’ll be enabling in the future,such as live discussion forums, the ability toprovide an always on, always connectedexperience, wherever people are, is a keypart of that revolution.”



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After downloading the free Viigo software, fans can access tickets,

schedules, news, scores and real-time stats from their BlackBerry.


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ARE TRADITIONAL MEDIA IN DANGER ?

The flood of new electronic media platforms and supports is forcing traditional and general media to questiontheir services and business model, or face the threat of disappearing.

Data from Statistics Canada confirms this trend. In 2007, spe-cialty network revenues ($2.7B, +9.1%) were well on the way tocatching up with general network revenues ($3.5B, -1.3%).

SPORTS TV’S STRENGTH

If general TV networks are losing viewer interest, there are stillrosy times ahead for sports television, explains RDS PresidentGerry Frappier: “Fans of a TV series can record their favourite showand watch it whenever it’s convenient and fast forward past the com-mercials. It’s different with sports. Fans want to see a game live andaren’t prepared to sit throughan entire game once the out-come is known. This is one ofthe best guarantees thatwe have the viewers, and anexcellent buffer against newtechnologies. But that doesn’tstop us from coming up withcomplementary products, suchas a shortened version of thegame later in the evening.”

True, a sporting event is instantly consumed and not delayed forbroadcast. That is its strength and appeal. The new competition isstimulating and forces TV networks to move toward providing better quality service and fuller content.

SIGNIFICANT RESULTS

The Canadian Radio-television and TelecommunicationsCommission (CRTC) has published the 2007 sports channelsfinancials results. Led by TSN and its French-language counter-part, RDS, sports channels earned huge dollars in Canadian television last year.

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SPORTS CHANNELS 2007 PROFITS 2006 PROFITS($M)* ($M)*

TSN + 58.82 + 48.58

RDS + 22.76 + 18.37

Sportsnet + 18.11 + 25.35

The Score + 5.92 + 4.61

NHL Network + 1.49 + 1.27

Xtreme Sports + 0.99 + 0.40

ESPN Classic Canada + 0.25 - 0.25

Raptors NBA TV - 0.87 - 0.89

Fox Sports World Can. - 0.19 - 0.47

GolTV - 2.76 - 2.49

The Fight Network - 2.94 - 2.93

World Fishing Network - 3.01 - 2.61

Leafs TV - 3.45 - 3.76

* All figures before interest and tax

If general TV networks are losing viewer

interest, there are still rosy times ahead for

sports television.

Gerry Frappier, RDS President

IS THERE A MOVE TOWARDSEGMENTED SPORTSTELEVISION ?

Consumer demands are defining a newstreamlined television era, one of seg-mentation. First it was general televisionwith a light dose of sports, then sportsnetworks with content devoted to sports ingeneral, and now there emerges the newmodel that offers content focused on onespecific discipline or sports theme.

This trend appeals to recognized disci-plines that generate significant popularappeal. Insight Sport already offers NorthAmerican viewers such specialty TV chan-nels as GolTV, a 24-hour soccer channel,and the World Fishing Network, which is devoted entirely to fishing in NorthAmerica. Other disciplines also have achannel devoted entirely to their sport.Two such examples are the Fight Network(U.S. boxing) and the Golf Channel (golf).

In the Canadian market, requests forspecialty sports channel licences aremultiplying:

CANADIAN AMATEUR SPORTS NETWORK (CASN)In 2008, the Canadian Olympic Committee(COC) filed a request with the to establishEnglish and French-language amateursports television networks.

If the request is approved, the CanadianAmateur Sports Network (CASN) and theRéseau du sport amateur canadien(RSAC) would provide major visibility toamateur sports, while generating esti-mated revenues of $100M in the firstseven years of operation.

In filing their requests, the potentialnetworks asked for mandatory distri-bution of their broadcasts on the basicdigital service of all satellite cableproviders. Financing would be ensuredin part by mandatory monthly subscriberfees of 60¢ per household.

CBC SPORTS CHANNEL PROJECTSNext in line is the CBC, which is asking the CRTC for permission to set up a sportsnetwork to broadcast events not currentlypart of the regular network’s program-ming schedule. Equestrian and figureskating events are two examples of sportsalready carried on CBC’s website.

A SECOND SPORTSNETIn November 2007, Rogers got a licencefor a second Sportsnet. The new servicewould be devoted primarily to the cover-age of soccer, cricket and rugby. The pro-gramming would include exclusive inter-national soccer matches from profession-al leagues and tournaments. The servicewould also provide coverage of nationalCanadian teams, including junior pro-grams, sports news, in-depth analysisand instructional programs.

In addition, Rogers stated that no morethan 10% of all programming during thebroadcast year would be devoted to sportsother than soccer, cricket and rugby. TheCRTC imposed a condition of licence, asset out in the appendix to its decision,reflecting Rogers’ commitment to a prohi-bition from covering the following men’ssports: ice hockey, basketball, baseballand North American-style football.

This is to prevent competition with existingnetworks like TSN and RDS. According toRogers, Sportsnet 2 will be operationalbefore the end of the year.

A NETWORK DEVOTED TO EXTREME SPORTSOne sign of the times is the request for alicence to launch Radical TV, an extremesports channel, in the Quebec market.Spearheaded by Carl Rousseau, formermarketing director of Billabong, the proj-ect was presented to the CRTC. Its aim isto provide local and international coverageof a host of extreme sports disciplines.

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Now there emerges the

new model that offers content

focused on one specific

discipline or sports theme.

THE WRITTEN PRESS LOOKINGFOR ITS SECOND WIND

While newspapers have made a huge con-tribution to developing and popularizingsports, they are being outpaced today bynew supports. Technological tools areproving more attractive than the traditionalprint format.

But print content remains newsworthy. It will continue to move forward withreporters doing in-depth work and writingcomplete stories and detailed reports.Later, the information is dissected, cut upand adapted to other formats. A newspa-per story is often picked up and discussedon the Internet and sometimes even com-mented upon on television.

In order to continue to draw readers,newspaper sports reporters will have tobe creative and provide richer and morethorough content. Special reports, in-depth investigations, collaborations andcolumns penned by recognized specialistsin the field of sports are all elements ofprofound interest to sports fans.

The creation of a Canadianmedia consort ium towork around the 2010Olympic Games is a goodinitiative and representsan alternative. In June2007, seven publishingcompanies, representing49 daily newspapers inCanada, took the unprece-dented step of forming acoalition to package andpresent Olympic newsand advertising, begin-

ning with the 2010 Winter Olympics inVancouver.

The group includes CanWest Media Works,Torstar Corp., Gesca, Metro InternationalSA , FP Canadian Newspapers LP ,Transcontinental Media and BrunswickNews Inc.

Advertising sales for the newspaper groupwill be handled by the Sport MediaMarketing Group (SMMG). “This innova-tive initiative by 49 of Canada’s leading dailynewspapers will deliver a circulation of 3.5Mand an estimated reach of 35% of Canada’sadult population, while their online sites add an additional 1% reach,” explains JimByrd, Chair of SMMG. “This combinationprovides greater reach than any televisionnetwork and offers advertisers a superb tie-in to ongoing interest in the Olympicsbetween now and London 2012.”

With initiatives of this kind, the writtenpress will continue to play a role in thedevelopment of sports.



In order to continue to draw readers, newspaper sports reporters will

have to be creative and provide richer and more thorough content.

Special reports, in-depth investigations, collaborations and columns

penned by recognized specialists in the field of sports are all elements

of profound interest to sports fans.


But print content remains

newsworthy. It will continue to

move forward with reporters

doing in-depth work and

writing complete stories and

detailed reports.

RADIO IN A TIME OFTRANSFORMATION

The accelerated speed with which tech-nology has progressed has forced radiobroadcasters to adapt to waves of succes-sive changes. Between 1995 and 2005,this medium recorded a 13% drop amongNorth American listeners.

In an attempt to shed their outdated busi-ness model, radio stations are turning toother solutions. Recently, the French net-work Skyrock claimed that it made moremoney with its website than from ad rev-enues generated by its core business.

As with TV, radio is undergoing a refocus-ing, a radical shift to specific and targetedprogramming. In this scenario, sportsbecome a vector, a total niche.

In Montreal, Corus Québec hasdecided to transform its fran-cophone station, CKAC, into asports specialty station. With thestation’s ratings eroding yearafter year, the decision seemedinevitable for the radio, whichcelebrated its 80th anniversaryin 2008.

By adopting a sports niche, CKACwill now be able to attract newsponsors who wil l l ikely betargeting mainly male listen-ers. According to CKAC GeneralManager Yves Bombardier, “75%of listeners tune into CKAC forsports. We’re responding to agrowing need.”

The station is already actively signingagreements with major Montreal sportsorganizations, but CKAC will be facingtough competition from XM SatelliteRadio and Radio-Canada, which alsolaunched its own all-sports radio stationcalled Sports Extra.

As with TV sports networks, the battlehas shifted to putting together an attrac-tive offering that depends on the acquisi-tion of exclusive broadcast rights tosports properties.




In an attempt to shed their outdated

business model, radio stations are

turning to other solutions. As with TV,

radio is undergoing a refocusing, a

radical shift to specific and targeted

programming.

In Montreal, Corus Québec has decided to transform its francophone

station, CKAC, into a sports specialty station.



NEW OPPORTUNITIESFOR SPONSORS

The arrival of new technologies offersa real opportunity for businesses toreach target customers more easily bymounting current initiatives on newmedia platforms.

Contests and promotions with a sportstheme can now be sent directly to cell-phones or uploaded to microsites thatare linked to the official website of a sponsored sports organization orsporting event.

These platforms have undeniable andvaluable advantages for corporate adver-tisers and sponsors. They enable them toreach their core target group and build adatabase from this fan base. As well, theinteractive exchange with the target groupreinforces the loyalty-building processand provides relevant information on thetype of customer profile.

Sporting equipment manufacturers Nikeand adidas understand this. A commu-nication platform in the form of a cut-ting-edge microsite is launched severalmonths before each major sportingevent (e.g., Juga Bonita for Nike beforethe 2006 World Cup of soccer) andserves to increase virtual buzz among all online fans.

Nonetheless, turning to new supportsdoes not throw into question the value of traditional media, because not alladvertisers share the same goals. Someadvertisers want to appeal to a generalaudience. Others want to immerse them-selves in the sports world and target adefined public that can be reached using a specific platform.

Sports sponsors, therefore, need to lookat these new platforms as complemen-tary to traditional media and not as asimple alternative. These new supportsenrich the marketing palette while tradi-tional vehicles, such as television, print,radio or outdoor advertising, continue toreach the masses.

ROGERS VIP GREY CUP EXPERIENCEIn October 2007, the Canadian FootballLeague (CFL) and the Grey Cup FestivalCommittee scored with the announce-ment of the presence of rock artist LennyKravitz at the Rogers Grey Cup HalftimeShow at the 95th Grey Cup in Toronto.

For this occasion, Rogers Wireless set upa promotion for customers who had anexclusive opportunity to win a Rogers VIPGrey Cup Experience.

Fans had to enter by texting “Lenny” to4744 on their Rogers Wireless phone forthe chance to see Kravitz live in concert atthe event.

1

WHAT DOES THE FUTURE HOLD FOR THE SPONSORSHIP INDUSTRY?



CURRENTTRENDS

WHEN AN AMATEUR VIDEOBECOMES REAL ADVERTISING

Cellphones with video cameras, the YouTube phenomenon and Facebook-stylecommunity websites have drasticallyaltered consumer behaviour.

These new supports open the door tointeractive exchanges and give users theopportunity to join in, share their opinion,be an eyewitness to news by supplyingimages and take centre stage and play areal-life role.

This self-affirmation is now finding its wayinto advertising campaigns that showcaseconsumer testimonials. Several advertis-ers are already using this phenomenon toget more out of their sports sponsorship:

THE CAMPBELL PROS CONTESTIn 2007, Campbell’s Canada, with thecollaboration of the Canadian FootballLeague (CFL) and CBC, launched anonline promotion aimed at attractingCFL tailgaters.

Show us how you tailgate! was the originaltheme of this interactive contest. Peoplewere invited to submit tailgate party-

related videos, photos and stories. Theirentries could be viewed on the microsite,and the best ones were aired on two CFLon CBC pre-game shows.

CTV KICKS OFF SUPER BOWL CONTEST

For the 2008 edition, CTV launched theSuper Bowl Game Face Contest. The pro-motion gave a group of fans the opportu-nity to have their “game face” featuredduring the event.

Contest promotion included 15-secondads directing viewers to nfl.ctv.ca whereparticipants of all ages could uploadtheir gridlock grimace. A panel of judgespicked 20 fan photos to be showcased infour, 15-second spots during SuperBowl XLII. All photo entries were postedon the contest site.

“People are talking about things likeFacebook. It’s a whole phenomenon thatpeople want to be seen, so what better wayto give people the opportunity to be seenthan to be in the Super Bowl?” asks RickLewchuk, Senior Vice-President, CTVCreative Agency and Brand Strategy.

2

WHAT DOES THE FUTURE HOLD FOR THE SPONSORSHIP INDUSTRY? (continued)

Campbell’s Grey Cup Tailgate Pros Contest

Show us how you tailgate! was the original theme of this

interactive contest. People were invited to submit tailgate

party-related videos, photos and stories.

Sports organizations can once again setthemselves apart in the marketplace. Bymastering the new media and combiningthem with the proper supports, theseorganizations can substantially increasetheir chances of being noticed by the corporate sector and gather together afan community.

For sports sponsors, the new multimediaplatforms will provide them with endlessopportunities to exploit their sponsorship.The winning companies will now be thosethat are able to stand out from the restthrough a combination of relevant sportssponsorships, new media platforms andtechnological creativity.

We are just seeing the first fruits of thisnew era in which technological evolutionwill undeniably turn the relationshipsbetween sports, the media and con-sumers on their head. The challenge willbe to safeguard the intrinsic values ofsports in the face of this limitless mediaexposure whose ultimate goal of scoring

audience numbers seems today to be theleitmotif of our society.

The advent of new multimedia platforms has significantly changed

the close relationships between sports and the media, the sports

industry in general and the sports sponsorship market. This evolu-

tion should be viewed as a new opportunity for all of us.

17

CONCLUSION



The winning companies will now be those that are able to stand out

from the rest through a combination of relevant sports sponsorships,

new media platforms and technological creativity.

THE 2008 INTELLIGENCE REPORT SPORTS AND THE MEDIA is a publicationof SPORT DECISION GROUP INC.

SportDecision is the first bilingual pan-Canadian medium dedicated to sportsbusiness. This initiative brings together a group of professionals who are pas-sionate about the world of sports. The sum of our many varied experiencesaffords us significant insight into this industry in Canada and internationally.

Our goal is to bring you the latest news about the Canadian market so that youcan make informed assessments about its evolution, trends and opportunities.

Over the years, the unique character of the Canadian market as well as its scale and bilingualism have been obstacles to the delivery of informa-tion that is relevant to all the industry’s stakeholders.

Now SportDecision has created the optimal conditions to keep you informedon the latest business news under a broad range of topics. The cornerstonehas been laid for a reference tool for sports news and business decisionsyou can rely on.

EDITOR:Alain [email protected]

SALES & PARTNERSHIPS: Michel [email protected]

DESIGN & PRODUCTION: Virage 2.0, The Evolving AgencyW: virage2.com

REVISION & TRANSLATION: Veronica Schami Editorial ServicesW: veronicaschami.com

All rights reserved. No part of this publication may be reproduced without permission.

Released September 2008

SPORT DECISION GROUP INC.227 TurgeonMontréal, QC H4C 2N3T: (514) 996-7266W: sportdecision.com

Documents

INTELLIGENCE REPORT –SPORTS AND THE MEDIA CHANGES IN BEHAVIOUR 9 Media Overconsumption 9 Virtual Affirmation 3 2 1 5 4 3 2 1 10 NEW SUPPORTS ADAPTED TO SPORTS 10 - TELUS Multimedia