TV Asia Pacific MIPCOM 2010

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Pan-Regional Channels Fuji’s Hisashi Hieda Discovery’s Tom Keaveny Universal Networks’ Raymund Miranda

asia pacific

www.tvasia.ws

THE MAGAZINE OF ASIA-PACIFIC TELEVISION

OCTOBER 2010

MIPCOM & CASBAA EDITION

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TV ASIA PACIFIC

Astro www.astro.com.my

“We aim to bring the best

• Astro B.yond

Malaysia’s Astro, one of Asia’s leading pay-TV platforms, is coming to grips with the country’s changing demographics and viewing habits. COO Henry Tan notes that “it is not about a household anymore but about individuals within the households—the father, mother, son, daughter and grandparents may all have different viewing needs, and preferred devices to get their content.”

Setting technological innovation as a priority, Astro has rolled out its Astro B.yond service, delivering ten HD channels and a PVR. It is also boosting its content offerings, notably in sports.

“Looking ahead to 2011, we are enabling connectivity on the next generation Astro B.yond box, which will deliver PVR and VOD functionality as well as IP connectivity, along with more HD channels.We will leverage our Astro platform to deliver satellite DTH, IPTV, VOD, online, mobile and other advanced services from a single unified infrastructure providing customers with a new viewing experience on Astro Bplayer online and mobile applications.”

of Malay, Chinese and Indian programming to meet the viewing needs of our customers.

”

—Henry Tan

IN THIS ISSUE Lighting Up the Screen Spotlighting the Chinese media market 14

Interviews Fuji’s Hisashi Hieda Discovery’s Tom Keaveny Universal Networks’ Raymund Miranda

12 21 22

Ricardo Seguin Guise

Publisher Mansha Daswani

Editor Kristin Brzoznowski

Managing Editor Matthew Rippetoe

Production and Design Director Simon Weaver

Akademi Fantasia

Online Director Phyllis Q. Busell

Art Director Kelly Quiroz

Sales and Marketing Manager

FremantleMedia Enterprises

Erica Antoine-Cole

Business Affairs Manager

www.fremantlemedia.com/enterprises

Cesar Suero

Sales and Marketing Coordinator

• The X Factor USA • American Idol • America’s Got Talent • Project Runway • Jamie’s 30 Minute Meals

Talent competitions lead off FremantleMedia Enterprises’ (FME) slate for Asian buyers, headlined by the U.S. version of the hit format The X Factor. Also available are new seasons of American Idol and America’s Got Talent.Another well-known brand back with a new season is Project Runway, while Jamie Oliver features in the new series, Jamie’s 30 Minute Meals.

“Buyers in Asia are familiar with FME’s longstanding, successful franchises on an international scale, and many of our titles come to market with huge popularity already established,” notes Paul Ridley, executive VP for the Asia Pacific.

“The showcasing of brand-new content across all genres continues to be important to FME as it offers something more for buyers, and further builds upon our already trusted portfolio.” Ridley adds, “Our focus is on renewing our deals around our bigger brands while successfully launching new content to Asia-Pacific broadcasters.”

Alyssa Menard

Sales and Marketing Assistant

Ricardo Seguin Guise

President Anna Carugati

“ FME brings

Project Runway

some of the biggest brands in the world of entertainment to the marketplace in Cannes.

”

—Paul Ridley

Executive VP and Group Editorial Director Mansha Daswani

VP of Strategic Development TV Asia Pacific © 2010 WSN INC. 1123 Broadway, #1207 New York, NY 10010 Phone: (212) 924-7620 Fax: (212) 924-6940 Website:

www.tvasia.ws

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Media Development Authority of Singapore www.smf.sg • • • •

Silly Bitty Bunny

Dream Defenders Mr. Moon Rob the Robot Silly Bitty Bunny

Singapore’s MDA has been heavily investing in the nation’s animation sector, and those efforts have certainly paid off, with local producers becoming frequent go-to co-production partners for American and European companies. A number of animated series will be showcased at the Singaporean Pavilion this market, where 11 companies will be participating. Among the new titles is Dream Defenders, Mr. Moon, Rob the Robot and Silly Bitty Bunny.

Christopher Chia, CEO of the MDA, says that MIPCOM is “an important market for our media companies to network and forge relationships with international partners, establish new co-production deals, and distribute their content. This is also a good time to identify emerging trends and exploit new opportunities that could translate into longer-term advantages for Singapore in expanding our markets for Singapore-made content, aggressively identifying projects that span the multiplatform franchise, as well as capacity building and capability development.”

“The fact that our Singapore co-productions have

been successful with international buyers is a testimony to the quality of the animation products we are producing.

”

—Christopher Chia

MediaCorp www.mediacorp.com.sg/contentdistribution • Red Box • The Great Indian Marriage Bazaar • Listen to the Mountain Sages • Fashion Asia

For several years now, Singapore’s leading media company, MediaCorp, has been partnering with Japanese pubcaster NHK on The Asian Pitch, an initiative to promote documentary productions from Asia producers. Three titles produced from that effort headline MediaCorp’s offerings to the international market: Red Box from Taiwan, The Great Indian Marriage Bazaar from India and Listen to the Mountain Sages from Japan. Sharon Loh, assistant VP of content distribution at MediaCorp, expects strong interest in the documentaries. “They are human interest, social and cultural stories of universal appeal but from an original Asian perspective. They are both enlightening and entertaining for a wide spectrum of audiences.”

Loh is also keen to promote the wide range of other genres available from MediaCorp, which includes lifestyle properties like Fashion Asia. “We want the buyers to take a harder look at our dramas, sitcoms, variety shows and other properties,” she says.

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“We want to promote MediaCorp as a leading producer of a wide genre of content and formats.

”

—Sharon Loh

Fashion Asia

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Scripps Networks International www.foodnetworkasia.com • • • • •

Diners, Drive-Ins & Dives Luke Nguyen’s Vietnam Spice Goddess Extreme Cuisine with Jeff Corwin Giada at Home

Food Network Asia, part of the Scripps Networks International portfolio, began its expansion earlier this year, in Singapore, and recently rolled out in Taiwan. The channel is being programmed with a mix of U.S. productions and locally acquired and commissioned fare.At launch the channel featured popular U.S. brands like Giada at Home, Luke Nguyen’s Vietnam, Diners, Drive-Ins & Dives, Spice Goddess and Extreme Cuisine with Jeff Corwin.

Mary Ellen Iwata,VP of international programming for Scripps Networks International, will be on the lookout for third-party content at MIPCOM for broadcast on Food Network Asia, as well as on Food Network U.K. and Food Network EMEA. “Ideally I would love to find shows that work across the channels.That said, I’ll be looking for series and talent for specific territories as well.” Scripps has already commissioned original short-form series to serve as filler between the long-form programs: Eat Like a Local, Food Fun At 3am, Home Cooking and Street Food Faves.

“We have found that shows

such as these have universal appeal, plus they are all beautifully shot in HD so they look great.

”

—Mary Ellen Iwata Extreme Cuisine with Jeff Corwin

TV5MONDE www.tv5.org • TV5MONDE Asia • TV5MONDE Pacifique

The international French-language network TV5MONDE has greatly expanded its presence in Asia since entering the market in 1996. Three years ago, when the company opened its Hong Kong office, distribution for TV5MONDE Asia stood at 16 million homes. Since then, the group has launched a second feed, TV5MONDE Pacifique. “Today they reach a combined 22 million households in 16 major markets and subscription revenues are up 210 percent,” notes Julien Dutronc, the head of distribution and marketing in the region.

Targeting future growth, Dutronc is eyeing the potential of mainland China, but regulatory issues remain a hurdle. “The Indian subcontinent also offers a lot of opportunities, Pakistan in particular. And technological advances will free up broadcast capacity in several markets in Southeast Asia, including Vietnam, Indonesia and the Philippines, allowing new and existing platforms to grow, but we’ll have to keep our focus if we want to be a serious contender in the battle for new capacity.”

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Les Mariées de L’isle Bourbon

“Our brand is now well-established

among our core target groups so we’re looking to capitalize on France’s popularity in Asia to appeal to the masses interested in French culture but who don’t speak the language.

”

—Julien Dutronc World Screen

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Reporters

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P A N O R A M A

By Mansha Daswani

The Battle Over Exclusivity All the major players catering to Asia’s ever-growing pay-TV base, be they channel operators or cable, satellite and IPTV platforms, are expected to be in attendance at this year’s CASBAA Convention in Hong Kong.

This year’s convention takes place under the banner of “Unlock Your Networks.” Simon Twiston Davies, the CEO of CASBAA, explains, “Unlock your networks refers to your TV network, your personal networks, even your algorithms.

Unlocking is allowing the market and the dynamics of the relationships [in the market] to become transparent.”

Free-market dynamics will certainly be among the key topics discussed during the four-day convention, given the debate over Singapore’s recent mandate for cross-carriage of content on pay-TV operators StarHub and SingTel. Singapore’s Media Development Authority (MDA) has made its position clear. The new legislation, MDA says, is necessary in a market where 90 percent of the top 100 pay-TV channels are only available on one platform. This level of fragmentation, MDA says, means increased costs and inconvenience for consumers, who need to either switch platforms or get a second box to get the content they want. Platforms, meanwhile, are paying higher acquisition prices to secure the exclusive rights to content and channels, the regulator says.

“The cross-carriage measure is an effective way to help address a uniquely Singapore issue,” Michael Yap, deputy CEO and director of development policy at the MDA, said recently.

“It will help content providers gain a wider distribution of their content and consumers to enjoy a wider choice of content without the inconveniences of having to switch pay-TV retailers each time exclusive content changes hands.”

Trade body CASBAA—speaking on behalf of channel operators that have been reluctant to speak on the record about the issue—has been vocal in its objections to the new policy.

“Prohibitions on exclusivity are an unwarranted intrusion into the market, which will distort the market and ultimately cause broadcasters to begin to step back from their investments in Singapore,” Twiston Davies says. “If you’re a channel that may have been going to invest in a market like Singapore with a new product, like 3D content, for example, [you may decide not to] because you’ve got no guarantees in terms of revenues from an exclusive contract.”

An even bigger cause for concern, Twiston Davies says, is the issue of “contagion.” He notes, “Singapore has been seen as a poster child for the industry. Thus, for instance, in Vietnam the issue of exclusive contracts has suddenly become an issue. Similar questions are being asked in Thailand. The implications of the new Singapore regulations for the rest of the region could produce a radical unbalancing of the business model, dramatically changing the dynamics of our industry.”

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At the moment though, with the deadline for the implementation of Singapore’s new policy pushed back to early 2011 and a fair deal of uncertainty as to how it will all work, channel operators show no signs of retreating from investments in the region. Indeed, as I found speaking with the heads of Asia’s leading pay-TV channel groups, further expansion is very much in the cards.

Universal Networks International, for example, is focusing on bringing in top-quality imports for its recently rebranded portfolio of networks, as Asia-Pacific managing director Raymund Miranda reveals in this issue. And it’s not just American content that’s on Miranda’s wish list. “We’re always keeping an eye out for possible local acquisitions,” Miranda says.

Tom Keaveny, executive VP and managing director for the Asia Pacific at Discovery Networks International, sees room for new brands in the region, on the heels of the import of TLC. In an interview that appears in this issue, Keaveny notes, “It’s a question of putting the right brands and the right content in play. I’d be very keen on launching networks where we think there’s a demand in the market.”

And where he does see demand already is in India, where Discovery has an application pending to launch Discovery Kids, Discovery Home & Health, Investigation Discovery, the Military Channel and Discovery 3D, adding to its existing six-channel portfolio in the market.

Indian expansion remains the story for a slew of companies. Turner Broadcasting has made its play in the generalentertainment space with Imagine, acquired from NDTV. Scripps Networks International is talking to potential partners about a prospective joint venture for lifestyle networks in India. And AETN International recently inked a deal with Network18 to bring its portfolio of networks to the country.

Indian regulators, meanwhile, are realizing there’s much to be gained from allowing Western players—and their investments—into the country; this summer, the Telecom Regulatory Authority of India (TRAI) announced that it was mulling increasing the cap on foreign investment in DTH, IPTV and cable-distribution platforms to 74 percent from the current 49 percent. The size of that potential pie?

Research from Media Partners Asia indicates that the number of pay-TV subs in India will rise from 105 million last year to 149 million in 2014 and 173 million by 2020. By 2012, India will become the world’s largest DTH market with 36 million homes.

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Staying Ahead

Fuji Media’s Hisashi Hieda

By Mansha Daswani

It’s no secret that Japan’s economy took a battering during the global downturn, with media outlets experiencing heavy losses in ad revenues. For the territory’s leading commercial broadcaster, Fuji Television, the past year has been challenging but, as chairman and CEO Hisashi Hieda reveals in this interview, recovery is well under way. The company has remained firmly focused on delivering high-quality drama, variety, entertainment, news and more in order to draw viewers and advertisers. It has also expanded its activities, moving into movie production, pay TV, merchandising and other businesses.

Fuji Television is just one part of the sprawling Fuji Media Holdings, the parent group that also owns Nippon Broadcasting, as well as production, publishing and music assets, among others. In this exclusive interview, Hieda discusses what has kept Fuji at the head of the pack and what lies ahead for the group, which celebrated its 50th anniversary last year.

TV ASIA PACIFIC: How did Fuji’s ad revenues hold up amid the downturn?

HIEDA: Although the Japanese advertising market continued to decline due to the effect of the worldwide recession, it is now on a recovery path. Last fall, our spot ad sales increased compared to the previous year.The first quarter witnessed sales that exceeded the previous year for the first time in three years. Our programming is [favored by young people] and women—the main target of our sponsors—helping us maintain our top position in viewer ratings for six consecutive years. Fuji Television’s strength in content production is providing a powerful underpinning for our sales activities.

TV ASIA PACIFIC: You’ve reorganized the company, creating Fuji Media Holdings to serve as the umbrella for all your operating divisions. Why was this important for the business?

HIEDA: Because the media industry is witnessing such major changes, we’ve established a holding company structure to be able to have an overview of each of our companies and conduct a more efficient group management. This enables us to grasp more highly concentrated business conditions and make [more] speedy business judgments than before. Also, by centralizing funds that have been scattered throughout the group companies, an even more efficient operation of management resources has become possible.

TV ASIA PACIFIC: What policies have you put in place to weather Japan’s current financial storm?

HIEDA: With the downward trend in ad sales, in order to secure profit, we try to efficiently operate costs through a comprehensive inspection of program production costs as well as other areas. At the same time, our policy is to focus our goals on strengthening non-advertisement related businesses that are less subject to the economy.

TV ASIA PACIFIC: What efforts have you made to expand your non-advertising revenues?

HIEDA: Making good use of our strong skills in content production, Fuji Television was among the first broadcasters in Japan to take part in non-broadcasting businesses such as motion-picture production and live events, achieving a huge success in various genres. Our current focus is expanding operating revenues in new fields such as mobile phones, the Internet and IPTV. In particular, the ondemand service of Fuji Television programs is witnessing a steady growth in sales, and will soon contribute to our company’s profits.

TV ASIA PACIFIC: Fuji celebrated a milestone 50th

anniversary last year. What have been the keys to your success over the past five decades?

HIEDA: Our corporate culture is fresh, bright and flexible.

Without fear of failure, Fuji Television has never stopped taking part in the development of software and businesses that lay paths to new eras. I believe that another important key to our success is the fact that we have always made it our policy that human resource is the most important asset for our company.

TV ASIA PACIFIC: The Japanese market has become much more competitive. How have you been able to retain your market-leading position?

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HIEDA: I think it’s all in our strong content-production

skills. No matter what kind of new media were to emerge, the content to be shown on that media will no doubt play a significant role. That is why I am confident that Fuji Television’s position as Japan’s most powerful content producer will never waver, no matter what kind of media emerges.

events. Once the switchover to digital terrestrial broadcasts is completed smoothly in July 2011, the image quality and functions of televisions will improve. The strength that today’s television possesses will be passed on, so I have high hopes that it will evolve into an even more powerful media.

TV ASIA PACIFIC: How are your interests in the pay-TV

TV ASIA PACIFIC: You produce so much content in Japan.

sector performing?

How are you monetizing this on a global scale?

HIEDA: As a content producer, we are fully aware that expanding businesses to overseas markets is not an easy task.

Still, in order to expand and increase the entire group’s profitability, going global is an extremely crucial theme. That’s why we intend to continue strengthening our program sales and format sales as well as actively take part in the overseas trials of various new business ventures, not necessarily related to content businesses.

HIEDA: Three pay-TV channels have already been launched

TV ASIA PACIFIC: How do Fuji and Nippon Broadcasting System complement each other?

HIEDA: The two companies cooperate with each other through television and radio programs as well as co-funding and co-hosting events. Currently, Fuji Television and Nippon Broadcasting are taking part in a joint venture that will provide multimedia broadcasting services via the bandwidth that is currently allocated to analogue television.

TV ASIA PACIFIC: How is Fuji participating in the transition to digital terrestrial?

HIEDA: The switchover to digital broadcasts is Japan’s national policy. The necessary upgrading of broadcasting facilities and transmission infrastructures has been completed.We are now at the stage of making the switch to digital widely known to our viewers by informing them through television programs and 10/10

in the Fuji Television brand name. They have already established a strong position and have gained much popularity.

Fuji Television is also the leading shareholder of WOWOW, which is a huge success in pay-TV broadcasting via satellite, as well as Nihon Eiga Satellite Broadcasting Corporation, very popular for its movie channels. Fuji Television is also a big shareholder of the satellite platform operator, SKY Perfect JSAT. We have actively developed and expanded businesses and financial resources in the pay-TV sector.We will continue focusing on pay-TV businesses while carefully evaluating profitability and market potential.

TV ASIA PACIFIC: What are your goals for the company in the next 12 to 18 months?

HIEDA: During these past few years of difficult economic times, we have displayed a significant management policy to strengthen and toughen up our business quality so that we can achieve tremendous growth when the economy recovers, as well as to shift our business structure in a way that we are less subject to the fluctuating economy. Therefore, no matter what the situation of the economic environment is, we will be able to head toward an increase in profit. In addition, if the external economic environment improves, Fuji Television will be blessed with an even bigger opportunity to increase its profits.

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Ratings game: Fuji TV has a slate of successful variety shows, among them Pekepon, which has been on the air since 2007.

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Hong Kong

Channel operators heading to CASBAA in Hong Kong are eager to take advantage of the new opportunities in the Asian pay-TV landscape.

Lighting Up the

Screen

By Mansha Daswani The numbers are staggering—446 million pay-TV homes

by 2014, reports Media Partners Asia (MPA) in its latest study of the Asia-Pacific multichannel business. This is projected to rise to 513 million by 2020. Last year alone, the industry added 26.6 million new subscribers.

Digital is the story, with operators finally making the upgrades needed to expand capacity and offer advanced services like HD and on demand. “It’s taken a long time—we’ve been talking digital for ages,” says Simon Twiston Davies, the CEO of the Cable & Satellite Broadcasting Association of Asia (CASBAA). “Platforms are now beginning to see the benefits of digitization.”

Indeed, the digital pay-TV market reached critical mass last year, according to MPA, with the number of digital pay-TV subscribers rising to 116 million—16 percent of total TV homes and 34 percent of total pay-TV homes.

Leading the charge are cable players in China and Japan, 426

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India’s numerous DTH operators, satellite services like Astro in Malaysia and IPTV platforms in markets such as Hong Kong and Korea.

The new capacity has given rise to a host of new entrants, while Asia’s big pan-regional players are launching new services, adding new feeds and investing in local programming.

Among the biggest operators—and most profitable, according to MPA estimates—is News Corporation’s FOX International Channels (FIC) Asia division, which has a portfolio of 17 channels, including the flagship FOX, National Geographic Channel and STAR World. The business is the result of last year’s merger between STAR’s pan-regional, Englishlanguage channels operation and the FIC/Nat Geo bouquet.

(Following the restructure, STAR India and STAR Greater China were spun off into separate entities.)

“The results speak for themselves,” says Zubin Gandevia, the COO of FIC Asia, on the benefits of the reorganization. “The 10/10

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Over the hump: Local content like Zhang Ziyi Travel Series has been integral to Nat Geo’s growth in Asia.

business units are all doing financially better on an individual and collective basis than they were before. Each unit has made their products far more relevant to their market.”

Over the last year, the division has focused on the expansion of the entertainment brand FOX, which, with a male skew, complements the increasingly female-friendly STAR World, and the continued rollout of Nat Geo Wild. Next up, Gandevia says, will be exploring the movie space, following the success of the pan-regional STAR Movies service. This initiative kicked off with the launch of Fox Family Movies in Singapore last month on StarHub. “Asia is growing and growing,” Gandevia says. “We are lucky in that we were in early and we have great brands. In the long term, even though there may be a lot of clutter, platforms and customers will increasingly differentiate between musthave brands, tent-pole brands, and the also-haves. We want to be in the former.There are four or five of our channels which are already in that category. I want to make these channels even more indispensable than they already are to platforms.”

The need to have a clear proposition that stands out for platforms and advertisers, is also expressed by Raymund Miranda, the managing director for Asia at Universal Networks International (UNI), which has been operating in Asia since 2008 and recently underwent a rebrand. “Universal Channel is now in 13 countries, we have one country with 13th Street Universal, Syfy Universal is in ten countries, excluding our joint venture in Australia, and DIVA Universal is in 21 countries,” Miranda says. “I think this is one of the fastest rollouts [of a portfolio] across multiple countries.”

we first launched our channels three years ago, it was undoubtedly the BBC brand that helped us stand out from other channels in the market,” he notes. “In that short time, our business has grown considerably.” Whitehead adds, “Last year, we launched 13 thematic channels across South Korea, Singapore and Hong Kong and our channels are now in over 10 million homes in Asia.”

A strong international brand name can certainly lend a hand to a company’s Asian aspirations, concurs Greg Moyer, the president of Scripps Networks International, one of the region’s newest players. In the last few months, the company has announced two carriage deals for Food Network—StarHub in Singapore and DishHD in Taiwan.

“We feel there’s a fair amount of momentum in the market right now and it’s a good time to be entering the Asian marketplace,” Moyer says. “I have been taken aback at how much respect there already is for Scripps’s U.S. success. I was afraid that the fact we had only been doing program syndication for all these years, we’d have a lot of education to do to get people to understand that we operate very successful channels in the U.S. Our success thankfully has spread quickly and people in the industry know the power of Scripps’ lifestyle brands even though they don’t get to consume them themselves on a daily basis.”

Similarly, at Discovery Networks Asia-Pacific (DNAP), the buzz generated by TLC’s hit shows in the U.S. has translated into a positive response from local operators for the lifestyle channel, which made its debut in place of Discovery Travel & Living in September. Tom Keaveny, executive VP and managing director of DNAP—which operates seven channels across Asia Pacific—sees potential to bring in other U.S. Discovery brands, “where we think there’s demand in the market.”

MAKING AN IMPACT

The key, he says, is having “clutter cutters” that make platforms, advertisers and viewers pay attention. “I see viewers being more discriminating when it comes to their expectations of the channels,” Miranda says. “And that makes it important to have strong channel brand propositions.”

For Mark Whitehead, the senior VP and general manager of BBC Worldwide Channels Asia, the recognition of the BBC brand was crucial to the rollout of the pubcaster’s international networks—a portfolio that includes BBC Entertainment, BBC Lifestyle, BBC Knowledge and CBeebies. “When 428

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Put a sock in it: CBeebies has begun developing content in the region, rolling out the Australian production Penelope K, by the way.

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Whether it’s a new brand or a familiar one, “It starts with clear positioning,” notes Todd Miller, executive VP of international networks for the Asia Pacific at Sony Pictures Television (SPT). “We build our channels as ‘destinations’ for viewers with specific preferences. This is part of our brandbuilding exercise—laying the foundation for viewer loyalty is very important, and we spend a lot of effort on strong execution to fulfill the brand promise.”

It’s a strategy that has worked for SPT—its AXN channel, which was an early entrant in Asia, is the leading pan-regional English-language entertainment network. With AXN firmly entrenched across Asia, SPT has expanded its portfolio with the additions of AXN Beyond and the female-targeted SET Asia. “Last year, we closed 29 new carriage deals for AXN Beyond and SET Asia, and expanded these services into 11 new markets,” Miller says.

Another company that is building out its portfolio is Turner Broadcasting Systems Asia Pacific, which for years has dominated the kids’ space with Cartoon Network. Last year, the company announced plans to bring the U.S. brand truTV to the region. “A year on and truTV is carving out a niche in entertainment programming in Singapore, the Philippines, Vietnam and Indonesia,” says Sunny Saha, senior VP and general manager at Turner Entertainment Networks Asia. “We believe that truTV’s unique programming cuts through the clutter as there is nothing like it in the region. Given its niche positioning, it fills the gap for audiences who we identified as ‘real engagers’—those who love programming with real people, real-life situations and true stories.”

A young channel in Asia, truTV is currently being programmed entirely from the library of its U.S. counterpart. “We’re concentrating on establishing truTV’s profile with the very best of our existing series,” Saha says.“In the long term, we’d like to explore potential content synergies between truTV and Turner’s other entertainment channels, such as QTV (Korea), Mondo TV ( Japan), Imagine TV (India) and Infinito (Latin America),” he adds.

LOCAL STORIES

For channels that have been around in Asia for some time, local programming has become a must-have, especially in the documentary space.

“When you talk about the DNA, the fabric of what we do,

Standing tall: Diva Universal recently premiered a second season of the original production The Biggest Loser Asia.

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Refreshing break: Invite Mr. Wright is one of the regional commissions airing on TLC, Discovery’s newest brand in Asia.

our genres, biography and history, are so personal and local and demand so much local relevance by their very nature,” explains Sean Cohan, the senior VP at AETN International, which has secured carriage for the HISTORY, Bio and Crime & Investigation brands across Asia. “Our viewers demand that of us, our platforms demand that of us. From early in the game we made a meaningful effort across Southeast Asia—a significant piece of each of the channels is locally produced and acquired.”

Discovery, similarly, is producing and acquiring content across Asia, and has a number of initiatives in place to develop local documentary talent. Its competitor National Geographic is being equally aggressive in the local production space. “We will make 40 to 50 hours in Asia alone next year,” says FIC’s Gandevia.

For the big pan-regional entertainment brands, however, local programming has been more of a challenge, primarily because they’ve built their businesses on offering the best of American or British content. Nonetheless, it’s an area that is being eyed by a number of channel operators. UNI, for example, is currently on its second season of a regional version of The Biggest Loser on Diva Universal. “We’re looking at another possible format, because those seem to work very well for the regional feeds,” Miranda explains. “We’re always keeping an eye out for possible local acquisitions. That’s also becoming pretty expensive, because everyone is looking at local acquisitions now. I think we’ll get to a point where the local content costs even more than Western content—that would not be far-fetched.”

At SPT, meanwhile, AXN is now on the fourth season of The Amazing Race Asia, based on the CBS reality series distributed by Disney Media Distribution. “It differentiates AXN and offers a programming lineup that is unique, while creating opportunities for advertisers to be integrated seamlessly and be more relevant to our audiences,” says Miller on the importance of local content.

Having a hook for advertisers was also a key part of Comcast International Media Group’s (CIMG) decision to introduce local productions on E! Entertainment Television.

CIMG recently tapped Sony Pictures Entertainment Networks Asia to handle E!’s pan-regional ad sales. With that business starting to gain traction and the channel well penetrated across Asia, the timing was right to invest in original production, says Christine Fellowes, CIMG’s managing director in the region. The result is E! News Asia, which features 10/10

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TV ASIA PACIFIC

Reporting live...: E!’s first foray into regional programming is E! News Asia.

local entertainment news, and covers Hollywood from an Asian perspective, Fellowes notes.

“We see this as an opportunity for people to buy into our environment,” she continues. “We can offer on-the-ground [events] and some tie-ins.”

Finding ways to appeal to advertisers is at the top of all channel operators’ to-do lists—total pay-TV advertising revenues in Asia are expected to reach $11 billion by 2014 and $15 billion by 2015, according to MPA research.The question is how this pie is being carved up. Indeed, many operators point to a softness in pan-regional ad-buys at the moment.

Where channels are seeing the most gains is in advertising on localized feeds tailored to a single market.

CIMG’s Fellowes, for example, points to the performance of E!’s Australian ad business. “We have this amazing branded presence that is kicking it out of the park in terms of ad sales.

We’ve had really significant year-on-year growth.”

Launching additional local feeds is a key part of DNAP’s strategy for boosting its already strong ad-sales business. “So far this year, our ad-sales growth in the first half is 40 percent.”

DNAP’s strength, Keaveny notes, is its ability to offer ad partners a local spot, a pan-regional one and even a global one. “We’re a triple threat,” he quips. “As we’re seeing the upsurge in marketing activity, we’re able to take account of it in three ways.

We’re optimistic and we’re seeing that optimism turn into cash.”

At FIC, Gandevia notes that it’s the documentary channels— notably Discovery and Nat Geo—and the international news networks that appear to be taking the lion’s share of an estimated $200 million panregional ad pie. “Something that has not been explored in this market is the opportunity to create an entertainment destination for pan-regional advertisers,” he says. And that is exactly what he is looking to do with the FOX brand.

HIGH ON HD

Another area of growth identified by several channel operators is HD. Adoption of high-definition pay-TV is forecast to reach 37 million homes by 2014, rising to 75 million in 2020, MPA reports.This is up from just 7 million in 2009.

Early movers Nat Geo and Discovery have secured carriage in every market in the region that has a platform capable of delivering HD services. And other channels across a variety of genres are anxious to reach the same penetration levels. AETN has fared well with its HISTORY HD channel, available in Japan and Korea, among other mar432

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kets. BBC Worldwide Channels is eyeing opportunities for BBC HD in Asia, and AXN has landed slots for its HD feed in Korea, Singapore and Malaysia.

Scripps’s Moyer has found that offering Food Network Asia in both HD and SD is proving to be crucial to the channel’s regional aspirations.“I think if you come with a beautifully built channel that’s there in high definition, you may have an opportunity that somebody who just brings an SD product doesn’t have.That’s been a clarifying issue for a couple of distributors.”

UNI is also making forays into HD, with one channel already available in Japan. But, Miranda notes, “the jury is still out as to what the possible economic model is—some platforms are happy to pay extra, some aren’t.”

There’s also the issue of the wildly disparate HD penetration levels in Asia. Citing Nielsen data, Discovery’s Keaveny notes, “The [markets with the] highest index of HD ownership [worldwide] are Australia and Hong Kong. But Asia Pacific only indexes at 90. There are significant markets like Indonesia, Pakistan,Thailand, that aren’t at the same level. But Indonesia and Thailand are massive countries—that means there’s massive potential going forward.”

PASSAGE TO INDIA

In expanding Discovery’s business, Keaveny also sees potential for boosting the company’s presence in certain key territories— notably India. Discovery has applied to launch new networks in a country that appears to be on everyone’s priority list these days.

“The absolute focus will need to be India,” says Alan Hodges, managing director for the Asia Pacific at AETN International, on priorities for the next year.The company recently set up a joint venture with Network18 to launch HISTORY, Bio and other AETN channel brands in India.

Scripps is currently seeking out a new partner in India after calling off its joint-venture partnership with NDTV earlier this year. “We continue to remain extremely interested in being in business in India and are fairly confident that we’ll find a way to enter and do it with a partner that helps us increase the odds of success,” says Moyer.

India is also a key focus for CIMG’s Fellowes, who notes that the territory’s huge domestic entertainment scene would require some kind of local partnership for E! The dynamic South Asian market is also home to numerous pay-TV platforms. “Oftentimes people equate growth in the business with new launches into new countries,” UNI’s Miranda explains. “But there is a lot more to do. Asia is an overbuilt business, so in a market with 800 or 1,000 operators, there’s still a long ways to go.”

While the growth prospects are tremendous, Miranda notes that new entrants should be realistic about their Asian rollout plans.“There are more U.S. or European studios that are looking at Asia as the real opportunity for growth, and they’re correct for looking at it that way because Asia is still so under-penetrated. It really is about tempering those expectations and making sure that you’re prepared for getting into the market and giving it your all.”

For those that do, the rewards look promising. “The market is healthy,” notes CASBAA’s Twiston Davies. “We’re still seeing sub numbers going up. Advertising revenues in some markets have gone up almost 50 percent since last year. Recovery is in full swing—[there are] new channels, investments in HD, investments that are coming for 3D. Broadcasters are very bullish about the future.”

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With the rollout of TLC in Asia last month in place of Discovery Travel & Living, Discovery Networks Asia-Pacific (DNAP) bolstered its lifestyle portfolio in the region and set up what executive VP and managing director Tom Keaveny sees as a strong second flagship brand. With its portfolio of seven networks—and slew of local feeds—DNAP is driving ad-revenue and audience gains, while taking the lead in high-definition production and in 3D.

Channeling Growth

Discovery’s Tom Keaveny TV ASIA PACIFIC: Discovery Networks International’s presi-

dent and CEO, Mark Hollinger, has said that a goal for the business is moving from a 70:30 affiliate revenue to ad revenue split to 50:50. How are you looking to increase your ad-sales business?

KEAVENY: We’re launching more feeds into different markets.

So far this year, our ad sales growth in the first half is 40 percent.

We’ve seen significant growth, and that’s being led by India, Australia—everywhere is doing well.We’re a triple threat—we can take local advertising sales, we can take pan-regional and we can take global. As we’re seeing the upsurge in marketing activity, we’re able to take account of it in three ways. Plus, we’re able to do more national feeds as well.We’re optimistic and we’re seeing that optimism turn into cash. A lot of that is a function of market growth.We’ve got great sales teams. And it’s also a function of audience growth. Our audiences have grown 21 percent this Q2 2010 versus Q2 2009. So ad sales are growing, audiences are growing, and penetration is increasing, plus you’ve got the local ad-sales feeds.

TV ASIA PACIFIC: Following the rollout of TLC, are there other U.S. Discovery channels that you’d like to bring to Asia?

KEAVENY: We’ve got this enormous collection of brands, but it’s a question of putting the right brands and the right content in play. So, yes, going forward, I’d be very keen on launching networks where we think there’s a demand.

TV ASIA PACIFIC: What are your plans for expanding your business in India?

KEAVENY: India is an incredibly dynamic and competitive marketplace. We already successfully operate six channels there—Discovery Channel, Animal Planet, TLC, Discovery Turbo, Discovery Science and Discovery HD World. Discovery Networks Asia-Pacific has applied for licenses to operate five more channels in the country: Discovery Kids, Discovery Home & Health, Investigation Discovery, the Military Channel and Discovery 3D, which puts us in the position to launch new brands in the marketplace when opportunities arise.

TV ASIA PACIFIC: What is the strategy for 3D? KEAVENY: Our 3D joint venture with Sony and IMAX will

launch in the U.S. next year. I was in Japan recently and we were showing it to some clients up there and our 3D tape is spectacular. It suits our content more than any other genre. We’re having lots of conversations with affiliates and production companies. We’re going to be doing a lot of 3D 10/10

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production going forward. I’m enthused about it. In the short term, we’ll be supplying content to cable and satellite operators who will be in a position to offer a 3D service. Over time, we’ll launch our own channels when there is sufficient content to support it. I think 3D has a very real future, with the right content, done in the right way. But there is a massive learning curve, because where you film and how you film in 3D is very different than HD and SD. TV ASIA PACIFIC: And the HD rollout is progressing well?

KEAVENY: We’re seeing continued take-up of HD. It’s been

in the region for five years. We’ve got a big library of HD. The majority of our productions in Asia are being filmed in HD.We’re pleased more channels are joining in the HD environment, because you can’t just rely on one or two channels to do the heavy lifting, you need an array of channels. The other important thing is, we do take HD seriously—we don’t upconvert, we film in pure 1080p. A lot of people up-convert.

The [markets with the] highest index of HD ownership [worldwide] are Australia and Hong Kong. But Asia Pacific only indexes at 90. There are significant markets like Indonesia, Pakistan, Thailand, that aren’t at the same level. But Indonesia, Pakistan and Thailand are massive countries—that means there’s massive potential going forward.

TV ASIA PACIFIC: What are your overall goals for the Asian business in the short term?

KEAVENY: From a business perspective, our goals remain the same: to drive revenue, increase profitability, grow audience, and continue to identify new growth opportunities for our company. In order to do this, we focus on our strengths—delivering fantastic value for our advertisers and affiliates by providing the highest quality nonfiction content and continuing to build deeper relationships with our viewers. We are having a very successful year.

We are already number one (our flagship network is the number one international channel in AsiaPacific, reaching more than 129 million viewers every month, according to Peoplemeter; we’re the number one in PAX; we were named Cable & Satellite Network of the Year at the Asian TV Awards) but we are looking at strengthening our position. We have just launched TLC in the market on September 1 and are looking to it becoming our second flagship channel here, and always exploring different avenues to showcase our content, whether it is online, by working with partners like Baidu, or 3D. World Screen

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Late last year, Universal Networks International (UNI) unveiled a rebranding of its global channels portfolio, following a multimillion-dollar investment in repositioning the services for worldwide audiences. That process has now been completed across the Asia Pacific under the leadership of Raymund Miranda, the regional managing director at UNI. Miranda views the refocused brands—Universal Channel, Syfy Universal, Diva Universal and 13th Street Universal—as “clutter-cutters” in what is an increasingly over-populated multichannel landscape in Asia.

Cutting Through the Clutter

Universal Networks’ Raymund Miranda

By Mansha Daswani

TV ASIA PACIFIC: How has the response been from operators to the refreshed brands?

MIRANDA: All of the tracking that we’re seeing is showing that the rebrand has successfully defined the channels even further, which is very important, particularly because it is getting to be a more crowded market. To give you an example, Sci Fi in Japan became Universal Channel and its ratings grew by 180 percent. And that 180-percent growth has stayed consistent months after launch. 13th Street Universal in Australia has consistently remained one of the top six, top eight channels since launch among all subscription TV channels. We’re very pleased with the results.

TV ASIA PACIFIC: How much do you localize the services?

MIRANDA: There are distinct feeds for Japan and Australia—

each of those is extremely local. The pan-regional feed, we find a way to make it work across most of the markets. And we have a separate feed for the Philippines, which seems to be standard for most of the channels because of the potential for local ad sales.

Part of the announcement Roma [Khanna, president of UNI and Digital Initiatives] made last year also had to do with global productions and investments by Universal Networks International.Those are on the channels and we’re very pleased with them: Rookie Blue, Haven, Shattered. There are a lot of local acquisitions, particularly in Japan and Australia. For the regional feeds, we’re doing these toe dips into shows like The Biggest Loser Asia [airing on Diva Universal], and we’re looking at another possible format, because those seem to work very well for the regional feeds.We’re always keeping an eye out for possible local acquisitions.

TV ASIA PACIFIC: What are the greatest challenges you face

in launching new brands today, and in what ways is it easier?

MIRANDA: There has been a proliferation of channels, both

Western and local. Back in the day, you still had a whole bunch of platforms that were just starting [and in need of content].

[There was the] ability to drive people to your platform through these channels [that had] content that was hard to match. Platforms recognized that and responded to it accordingly.You did not have the sort of speeds that are available on broadband connections right now, which allow people to download stuff or [use their] Slingbox or buy shows from iTunes.

There are more U.S. or European studios that are looking at Asia as the real opportunity for growth. And they’re correct for looking at it that way because Asia is still so underpenetrated. It really is about tempering those expectations and making sure that you’re prepared for getting into the market and giving it your all.

I see viewers being more discriminating when it comes to their expectations of the channels. And that’s also something that makes it important to have strong channel brand propositions and at the crux of all of that is access to strong content.

That’s been my focus over the past 8 to 12 months now.

TV ASIA PACIFIC: What are the goals for the portfolio in

the next year?

MIRANDA: Lock in the content proposition. I still want to

bring that home. The second point is to refine and tweak the brands and the channel propositions in order to cut through potentially even more clutter over the next 12 to 18 months. Investing in marketing and research and understanding the consumer end of the platforms and the advertisers even more. The third point is really looking at getting deeper into the markets. Oftentimes people equate growth in the business with new launches into new countries, but there is a lot more to do. Asia is a much overbuilt business, so in a market with 800 or 1,000 operators, there’s still a long ways to go. And then HD is something I’m looking at. We already launched our HD channel in Japan. The jury is still out as to what the possible economic model is—some platforms are happy to pay extra, some aren’t. We’ll see how that goes. And there are still a lot of markets that we’re really looking at: South Korea, New Zealand, South Asia.

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