Posted: 12 Apr 2010

Dr Koji Sato, Chairman of the Asian Racing Federation, opened the 33rd Asian Racing Federation Conference in Sydney on Monday with a theme of globalisation of racing and its challenges that was carried through the following addresses by Peter Sheahan, International Business Strategist and Author, and Timo Lumme, IOC Director of Television and Marketing Services.

Dr Sato commented that the rapid internationalisation of racing brought significant benefits for participation counties such as promoting national pride with their racehorses crossing borders to race in international series and race meetings.

“Now with the spread of the internet, people around the world have access to a wealth of information about horseracing before a race and it is possible to watch footage or results from your home in real time,” he said.

“This has lead to new forms of business activity. Within this kind of business activity, aside from the framework which has been supporting horseracing in a conventional way, there is something that seriously disrupts the flow of cash.”

Dr Sato commented on the cost of producing racing and that the new business activity was not contributing to the cost.

“This circle is not maintainable with those who are “Wealth without work”,” said Sato.

Dr Sato said that racing required the understanding of all governments to overcome the ‘challenges such as a reduction in the amount of money flowing back to the racing industry’ and that the time taken to resolve these industry issues between stakeholders is too long.

The Chairman called for all stakeholders to work together.

“If thoroughbred racing is to function as a sector within the leisure industry, racing needs to have all the stakeholders within the racing industry at the same vector direction and to function as one body......in order to tackle the urgent issues to ensure its continued growth into the future,” he said.

Dr Sato commented on the opportunity that new technology and multi-media presented for the industry.

“In particular there are rapid and drastic changes taking place in relation to the field of information due to increased use and variety of the way that the internet is being used,” he said.

“High Definition television is quickly spreading around the world. I believe those clear image are most suitable for watching sports and horseracing. Through being able to clearly see the vibrant motion of the racecourse, you will be able to re-create the live experience, and hopefully this will lure people into wanting to go to a racecourse and watch the real thing.

“Over 50% of JRA turnover is done using.... (wagering) technology on mobile phones or via a personal computer,” he said commenting on smart phones..

Peter Sheahan gave an entertaining address on engaging new generations into the industry citing the example of the Burberry clothing organisation that reinvented itself to appeal directly to generation Y with young marketing heroes, and control of its brand image and product.

Sheahan was confident the industry could engage with new generations, using the characteristics of the generation and their aspirations.

Timo Lumme continued with the theme of a worldwide brand using new media telling the conference that the Beijing Olympic Games drew bigger audiences than any Games in history, with two out of three people in the world watching either online or on television.

The recent Vancouver Winter Games saw the same amount of global coverage on online and mobile platforms as there were on television platforms.

“Recent Games have shown that, by partnering with the world’s leading media organisations, we can successfully use technology to reach more people and new territories,” said Lumme.

“We have established that rather than cannibalising television ratings the online broadcast of the Olympic Games actually increases television ratings, with record figures achieved in 2008 and in 2010 across both media platforms. Global on-demand coverage also makes time zone differences less relevant,” he said.

Lumme said that the development of new media such as YouTube and Google gave his organisation opportunities. The IOC has launched its own Internet channel, available on the YouTube platform, to broadcast Olympic Games highlights.

“The IOC has recently re-launched its website with a more ‘consumer focus’, and has set up channels on social media platforms, including Facebook, Twitter and Flickr. These media give the IOC the opportunity to speak in a less formal voice, to interact with, and engage young people,” he said.

Lumme said that the Olympic Movement objective’s of creating a ‘great live sporting, human, emotional, passionate drama’ and then to broadcast this to the widest global audience using ‘cutting edge production techniques and distribution technology’, while partnering the world’s leading media organisations for the ‘best expertise available’, was just as relevant to the sports industry as a whole.

Tuesday’s session focuses on The Great Debate – “What is the future of racing/wagering relationship.”

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