Software firm to rock online

By CHRIS BARTON

Local sports animation software company Virtual Spectator has broadened its internet coverage of live events to include concerts.

To kick off its VS Music venture the company has signed a revenue-sharing deal with British band Simply Red to deliver Virtual Spectator software on its new album.

The software will enable music fans to go online for news and information about the band, and follow its world tour, which begins in April.

As well as being able to buy concert tickets and merchandise, users will also get pay-per-view live concerts. Options range from audio and pictures over a dial-up modem costing $US5 ($12.25) to $US10, to full broadband video and 3D interactivity costing $US12 to $US15.

Broadband users will be able to select their own camera angles when viewing concerts.

VS Music's executive directors are former Sony Music marketing director Michael Bradshaw and Greg Herron, who has wide experience in music event management.

Mr Bradshaw estimates the Simply Red deal will be worth $1 million to $3 million in revenue over two years.

The company is also talking with two other bands, whose existing internet rights contracts expire next month.

Mr Bradshaw, who is in Manchester this week at a music industry forum, said there was also interest from venues and publications wanting to license the software.

VS Music initially expects to provide online concerts to audiences of 10,000 to 20,000, but can scale up bandwidth on the global network it contracts from Akamai as demand increases.

Within five years the company hopes to be managing the web content of about 30 touring artists a year.

"As shows sell out we're able to offer a virtual concert and do special broadcasts to different parts of the globe," said Mr Bradshaw.

"It's about getting artists to geographically challenged areas so they can still communicate with fans."

The software, which will be available for download from Simply Red's and Virtual Spectator's websites in February, will also provide text-based chat with band members.

Craig Meek, executive vice-president, technology, said the expansion into music grew from the "global viewer" interface developed for sporting events such as the America's Cup, the Volvo Ocean Race and the World Rally Championship.

The viewer enables users to select events from a virtual globe and "fly" down to the event location.

"We were able to leverage off our existing software and technology investment and incubate a whole new business."

Virtual Spectator has spent nearly $20 million developing its animation software to provide internet coverage and enhance TV broadcasts of sports events.

The holding company is incorporated in the US, with all software developed in New Zealand. Main shareholders are NZSE-listed company IT Capital, US venture capital firm Snider Capital, Dunedin-based Animation Research and Lindsay Fergusson, Virtual Spectator's chairman and chief executive.

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