www.stadiaworld.com 7 DIGITAL DISPLAYS RUINOUS BUSINESS MODEL? Accordingly negotiation has to be carried out differently from the start than in the past few years. Often large scale investment is already demanded in the tender procedure. If you get involved in this market segment, a high level of personal commitment and flexibility is essential. Planning, installation, steel construction, to name just a few aspects: sports facility projects can become very complex, and are thus a segment of their own with their own rules. Because some of the market leaders among the sports clubs dictate these rules themselves, even large companies in the respective group of bidders pull out. One type of pricing can be linked to the sponsoring; if corporations want to use a project to enhance their image, it is sometimes taken into account that the contract itself can hardly be fulfilled so that costs are covered. Some of the mid-sized specialist companies no longer wish to go down that road, and focus rather on profitable projects. Another argument is that only awarding contracts using the criterion of the lowest price contradicts the concept of quality that many AV experts who develop complex stadium solutions adhere to. The introduction of LED ribbon displays, which are now already standard at least for TV marketing in the front row around the playing field, might at first have seemed promising for many suppliers. However, in practice the trend swiftly developed towards leading professional sports marketing companies purchasing directly from source and renewing their stock regularly. This concerns a significant order volume, although there is no longer an open market. There may still be a certain variety in some handball and basketball arenas. But where competition arises, even proven LED experts can no longer keep up. Meanwhile professional equipment for a football match day in a rental package with about 246 linear metres of ribbons including logistics, service and manpower costs less than 10,000 euros. It would be simply ruinous for every normal rental company to enter the bidding. In the meantime the LED boom around the playing fields has not led to an overall fall in prices. All types of product in all quality and price categories are still on offer, although the average cost has stayed at 2,500 euros/m², which covers just the LED module itself – not including steel construction, installation etc. So this is about newer technology at the old price, while the old technology is no longer produced and is gradually disappearing. So when it comes to video walls of all sizes or to video cubes or ribbon displays for large arenas, which on the other hand represent a special segment, the orders at first concern only the “screen” as such, including of course chassis and mounting. On the rear side, differing little from the domestic television, there is a DVI socket. From this point on the management is responsible, or rather other service providers are assigned further orders. While a few years ago PCs and video recorders were still used as playback devices, the scenario has been catapulted into broadcast quality within one generation of devices. Nowadays clubs make their own professional productions or assign service providers. In the course of the merging of IT and video technology, top quality is meanwhile available at low prices, so that everyone can afford high end results are attainable for everyone. In business practice however, and it has been possible to collect these empirical data from every source during the past 20 years, a project is actually completed when the video wall has been installed and approved. Consultation and sometimes also active support continue to be needed during the years that follow.What already begins before specific projects as networking, personal acquaintance, information exchange and also intensive consultation is then continued in a relationship of trust. And it is precisely at this interface that mid-sized specialist companies play off their strengths and position themselves in both the global and local LED market activities. The service concept has become even more deeply rooted. A video wall operator needs a personal contact, who can be there when required, to solve both small and large problems. It can involve maintenance, genuine emergencies or even a larger package entitled “After Sales Service”. German providers in Europe have earned themselves an excellent reputation in the course of fulfilling all kinds of tasks from development, planning and installation through to actual operation. With a sturdy workforce comprising engineers and qualified technicians, a company can act as LED partner throughout the lifecycle of a system. Global players such as Absen and Unilumin are hardly in a position to fulfil such a role with a strong presence on site – while in many situations European partners can be an ideal auxiliary.
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