TATA deals F1

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Post Thu Feb 23, 2012 2:30 pm

Today in London, F1′s commercial boss Bernie Ecclestone unveiled a deal which will transform the way live F1 races are broadcast and all forms of digital content are consumed.

It’s the key which opens up a door onto a new era for F1. Satellite TV revolutionised the sport in the late 1970s, by making it possible for millions of fans to watch races live around the world. This was Ecclestone’s first revolution, providing the platform which made F1 a global sport, raising billions in revenues.

This long-term deal with Tata Communications, providing fixed line connectivity, opens the door for endless possibilities, way beyond what satellites can do, including broadcasting F1 on the internet, for interactivity between audience and the broadcaster at the circuit.

Tata has the largest network of undersea cables in the world and using MPLS technology it’s very fast and cost effective compared to previous offerings.

The deal begins with Tata setting up fixed line connectivity at all the 20 Grands Prix for FOM to send its data, such as track maps. The capacity that FOM will start out with is ten times what is currently available. But they have proved out the model to 100x what’s currently available, so within a few years it will be the means by which the world feed TV pictures are broadcast, as there are no delays unlike satellite.

“Formula 1 wants to transform the way it broadcasts the races and we can and will be a big part of it,” said Vinod Kumar, CEO of Tata Communications.

It will also handle video playouts by all the broadcasters on site, all the communications by the media. It brings a standardisation to the means of delivery of content from F1 races. Basically it connects F1 to the world in a completely new way.

It increases the amount of connectivity time, as it’s always on, unlike a satellite which is on for a matter of hours and it’s bi-directional, which means it allows the audience to interact with the sport, rather than sit back and consume. It means the sport can have individual relationships with fans, can supply content on a global and even individual basis, looking well down the line.

It will also greatly reduce the tonnage of equipment that FOM TV sends around the world as images can be sent back instantly and processed at the FOM broadcast centre in the UK.

Ecclestone is renowned for being suspicious of the internet and has been accused of missing opportunities as a result. But according to Baker this deal opens the door to endless possibilities,

“It gives him the ability to be able to do whatever rights deals he feels are right without limitations,” said Baker. “That means he can assess every opportunity, he can react to every opportunity, he can move with the times in perhaps a way that we were not able to do in the past.”

Ecclestone himself quipped that he’d not done a deal like this previously because, “I’m getting old! “. But there’s no doubt that this is a complete game changer for the sport and the way fans receive it. As traditional broadcasters like ITV in the UK and TF1 in France struggle with the changing media model and the ability to afford massive rights deals, F1 will have to look in future to pay deals like SKY TV on the one hand and internet TV deals to find revenue and audience growth.

Whether he’s the man still doing the deals five years from now when this technology hits its stride remains to be seen. But it’s a deal F1 needed to do and it’s now well set for the future.

JA


Now all can watch the race weekend on internet, with a choice of screen.
WilliamsF1
 
Joined: 6 Jan 2010

Post Thu Feb 23, 2012 2:39 pm

This is indeed good news, but of absolutely zero interest to the average F1 viewer. The principle advantage that I can see with this is improved reliability in the feeds, but it most certainly doesn't mean we can all watch the race weekend on the internet, sorry.
jimbles
 
Joined: 12 Jan 2011

Post Thu Feb 23, 2012 3:02 pm

Sounds like deal for back of house infrastructure rather than a service to consumers.

It does put in place the infrastructure for internet TV in future years, but if you're in a country with an exclusive broadcaster (such as Sky) then the feed would be blocked.
richard_leeds
 
Joined: 15 Apr 2009
Location: UK

Post Thu Feb 23, 2012 3:16 pm

Is this the same TATA that makes cars in India and follows Karthikeyan around?
Before I do anything I ask myself “Would an idiot do that?” And if the answer is yes, I do not do that thing. - Dwight Schrute
Giblet
 
Joined: 19 Mar 2007
Location: Downtown Canada

Post Thu Feb 23, 2012 3:31 pm

Yes. They are also they biggest steel manufacture in the world.

The same TATA ran by a chap who is so proud of India that he is now a UK resident.
richard_leeds
 
Joined: 15 Apr 2009
Location: UK

Post Thu Feb 23, 2012 4:12 pm

richard_leeds wrote:Yes. They are also they biggest steel manufacture in the world.

The same TATA ran by a chap who is so proud of India that he is now a UK resident.


I thought Tata was still based in India - you aren't mixing him up with Mittal are you?
czt
 
Joined: 4 Mar 2009

Post Thu Feb 23, 2012 4:22 pm

aha - my mistake!

Tata - They are the biggest steel manufacture in the world, run by an Indian in Mumbai. en.wikipedia.org/wiki/Tata_Group

ArcelorMittal - They are the biggest steel manufacture in Europe (they bought Corus), an Indian company ran by an Indian who is now a UK resident with an HQ in Luxembourg. http://en.wikipedia.org/wiki/Arcelor_Mittal
richard_leeds
 
Joined: 15 Apr 2009
Location: UK

Post Thu Feb 23, 2012 4:24 pm

richard_leeds wrote:an Indian


:lol: :lol: :lol:
WilliamsF1
 
Joined: 6 Jan 2010

Post Thu Feb 23, 2012 6:34 pm

Well yes, it's the same TATA, whose logo used to appear on the Ferrari car for 2 seasons or so. They are also a technical partner of Ferrari. Well it's not really TATA, but a subsidiary of TATA groups called Tata Consultancy Services. They provide IT solutions (I guess its ERP) to Ferrari road cars division and may be to F1 too (not fully sure about the F1 part, but it was there in the magazines).
banibhusan
 
Joined: 6 Aug 2008

Post Thu Feb 23, 2012 6:44 pm

It will certainly be interesting to see how well and how quickly they execute. F1 is the only thing that's still tying me to a cable contract and I'm eager to cancel.

If you want to check out the possibilities of this kind of service, then I'd take a look at MLB.tv, which is frightfully expensive but extremely well implemented.
Pup
 
Joined: 8 May 2008

Post Thu Feb 23, 2012 7:17 pm

For the time being I am quite happy with my Sky deal but I assume that some day you will have a choice between Cable and Satellite to watch F1. And then it might be interesting to compare the content providers in terms of delivered content/€.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)
WhiteBlue
 
Joined: 14 Apr 2008
Location: WhiteBlue Country

Post Thu Feb 23, 2012 7:46 pm

Well the more options the better. If this provides Top Quality action at cheap rates then why not. Internet is the next big thing.
Mr.S
 
Joined: 9 Apr 2011

Post Thu Feb 23, 2012 7:48 pm

I wouldn't count on the cheap rates. :wink:
Pup
 
Joined: 8 May 2008

Post Thu Feb 23, 2012 8:16 pm

Why cheap rates? Bernie operates on the principle of maximising his return, not covering has cost. Access will be priced at whatever optimises the return for FOM. Also, the technology would allow high pricing for rich post industrial countries, with low pricing for poorer less developed countries.
richard_leeds
 
Joined: 15 Apr 2009
Location: UK

Post Thu Feb 23, 2012 8:29 pm

Service providers will increasingly morph into providing service and content. This will see different marketing models which could lead to F1 being available at different price points for the consumers. For instance if you have a German content subscription with Sky for HD movies and you just add F1, you can get the additional F1 stream by satellite and internet for just 10€. You have the choice which carrier you select. This year I'm going to watch the race via Internet and record another perspective on HD by satellite.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)
WhiteBlue
 
Joined: 14 Apr 2008
Location: WhiteBlue Country

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