TV Asia MIPCOM 2017

ASIA_1017_COVER_KID_409_COVER 9/25/17 5:09 PM Page 2

TVASIA

WWW.TVASIA.WS

OCTOBER 2017

MIPCOM & CASBAA EDITION

Pay-TV Strategies / Nippon TV’s Yoshio Okubo / ABS-CBN’s Carlo Katigbak

SPREAD TEMPLATE_Layout 1 9/27/17 11:34 AM Page 1

SPREAD TEMPLATE_Layout 1 9/27/17 11:35 AM Page 2

ASIA_1017_TOC_ASP_1206_MANSHA COLUMN 9/25/17 5:12 PM Page 1

4 TV ASIA

CONTENTS FEATURE

Time for Change

10 TIME TO SHINE As competition intensifies, Asia’s leading pay-TV programmers are innovating their strategies for finding, and keeping, audiences.

There’s no time left for complacency anymore. Cord-cutting is no longer just an American problem, and operators and channels either need to evolve or get out of the way, because change isn’t going to slow down for anyone.

Ricardo Seguin Guise Publisher Anna Carugati Group Editorial Director Mansha Daswani Editor Kristin Brzoznowski Executive Editor Joanna Padovano Tong Managing Editor Sara Alessi Associate Editor Victor L. Cuevas Production & Design Director Phyllis Q. Busell Art Director Simon Weaver Online Director Dana Mattison Senior Sales & Marketing Manager Nathalia Lopez Sales & Marketing Assistant Andrea Moreno Business Affairs Manager

Ricardo Seguin Guise President Anna Carugati Executive VP Mansha Daswani Associate Publisher & VP of Strategic Development TV Asia © 2017 WSN INC. 1123 Broadway, #1207 New York, NY 10010 Phone: (212) 924-7620 Fax: (212) 924-6940 Website: www.tvasia.ws

The pay-TV industry in the region is facing a “broad recalibration,” according to Vivek Couto, executive director of Media Partners Asia (MPA). And the only way forward for operators in this new environment is to integrate online video into their offerings and focus in on premium content. Couto’s assertions are based on the brand-new Asia Pacific Pay-TV Distribution report, covering 17 markets across the region. It projects 5 percent average annual growth in pay-TV revenues from 2017 to 2022, reaching $68.5 billion, led by India and Korea, which are still growing. MPA sees the smaller markets of Hong Kong, Singapore and Malaysia as being “fundamentally challenged” with an acceleration in cord-cutting, cordshaving and piracy. Pay-TV platforms are looking to counter those headwinds with strong entertainment and sports lineups, as well as new products and packaging.

Nevertheless, these markets will shed about 200,000 subs over the forecast period, potentially more.

That’s the outlook for operators. For channels it’s a complicated environment, too. “The market for international pay channels, especially players focused on Hollywood series, is saturated and, in some cases, shrinking,” Couto says.

“Increasingly, this content is migrating online, with OTT operators bidding up the cost of popular franchises. While Hollywood movie channels, kids’ networks and Asian pay channels are in robust health, there is little demand for new pay channels outside India and Korea.”

This edition surveys a range of the region’s leading channel operators to assess how they’re addressing the shifting ecosystem, from adjusting their programming strategies to deploying innovative premiere stunts online to coming up with creative, social-media-savvy marketing campaigns.

The issue also hears from the heads of two conglomerates about how they’re facing the changing dynamics in their markets: Nippon TV’s Yoshio Okubo and ABS-CBN’s Carlo Katigbak. Both companies are working hard to diversify their revenue streams beyond TV advertising and both are looking to boost their international activities, particularly by exporting their content ideas overseas.

—Mansha Daswani

INTERVIEWS

16 Nippon TV’s Yoshio Okubo

20 ABS-CBN’s Carlo Katigbak

ASIA_1017__Layout 1 9/8/17 4:11 PM Page 1

ASIA_1017_UPS_rev_Layout 1 9/26/17 1:54 PM Page 1

6 TV ASIA

Asia TV Forum & Market November 28-December 1, Marina Bay Sands, Singapore Asia TV Forum & Market (ATF) is positioned as the leading platform in rising Asia for “engaging the TV entertainment industry’s top players from around the world,” according to Hui Leng Yeow, senior project director of ATF and ScreenSingapore at Reed Exhibitions. ATF is co-located with ScreenSingapore, a marketplace for the film industry where attendees can explore co-production opportunities, seek financing, make deals and learn about the changing film landscape. “With a well-rounded program, we expect to receive more than 5,000 content buyers and sellers from Asia and beyond, looking to buy, sell, coproduce and distribute over the four days,” says Yeow. The market attracts attendees from around 60 countries. “Just like the dynamic ATF market, the conference constantly evolves and adapts to meet the needs of attendees,” she adds.

Asia TV Forum & Market

“ATF is a must-attend market for companies keen to connect with Asian stakeholders.”

—Hui Leng Yeow

FOX Networks Group Asia FOX+ FOX Networks Group (FNG) Asia is making a major push with the FOX+ streaming service, which has already launched in Singapore, the Philippines and Taiwan and will be rolling out in Hong Kong soon. Michael Dick, the VP of acquisition, management and content acquisition at FOX Networks Group Asia, says that the overall focus is on “refining and constantly updating how to best get our brands and content to our affiliates and subscribers. This means ensuring FOX+ is as robust an offering as possible— that it is intuitive and engaging—while ensuring our linear channels are also offering the best services possible as they move into the digital domain. All of this is dependent on FNG having the right mix of content and rights needed to offer the best possible services.”

FOX+

“We are focusing on launching FOX+ as widely as possible across Asia.”

—Michael Dick

FremantleMedia International

Hard Sun Patrimonio mundial - Herencia de la humanidad

American Idol / Picnic at Hanging Rock / Hard Sun American Idol is returning to U.S. screens, this time on ABC. “For more than a decade, American Idol was the biggest entertainment show in the world,” says Ganesh Rajaram, the general manager and executive VP of sales for Asia at FremantleMedia International. “The brand is incredibly popular across the Asian region, and with Ryan Seacrest returning and new judge Katy Perry, this series is set to be bigger and better than ever.” Another highlight from the company for the Asia Pacific is Picnic at Hanging Rock, a new series starring Natalie Dormer (Game of Thrones) that reimagines Joan Lindsay’s Aussie novel.

There is also Hard Sun, which follows a pair of detectives who discover a terrifying secret while investigating the death of a computer hacker in London.

“We’ve had another phenomenal year...with business continuing to thrive across Asia.”

—Ganesh Rajaram 552 WORLD SCREEN 10/17

ASIA_1017_UPS_rev_Layout 1 9/26/17 1:56 PM Page 2

TV ASIA

7

Infocomm Media Development Authority August Media/Beach House Pictures/Silver Wolf International

Dream Defenders

Infocomm Media Development Authority (IMDA) is leading a delegation at MIPCOM that “exemplifies the diverse formats and presentation of Asian stories that we hope will delight global audiences,” according to Angeline Poh, the group’s assistant chief executive (industry development). They include August Media, Beach House Pictures, Silver Wolf International and One Animation, among others, touting a wide range of content offerings. “International buyers and distributors can look out for the third season of the adorable live-action puppetry preschool series Hiccup & Sneeze, produced by Beach House Pictures and Northern Pictures, while animation fans will be taken by Tiny Island Productions’ Dream Defenders, which is currently distributed in 80 countries,” says Poh.

“Asia, as a region rich in potential for great storytellers, has fast established itself as a strong contender in the global race for creative connections.”

—Angeline Poh

Rewind Networks HITS / HITS Movies Rewind Networks’ HITS channel is currently available in Singapore, Malaysia, Indonesia, the Philippines, Hong Kong, Taiwan and Brunei. The channel is also available for carriage in Thailand, Vietnam, Cambodia, Laos, Myanmar and Macau. Programming highlights include Baywatch, The Fresh Prince of Bel-Air, Full House and 3rd Rock from the Sun. In the works from the company is HITS Movies, a brand-new 24-hour basic pay-TV channel that curates the best stories from Hollywood. “Movies are highly sought-after by our viewers, and HITS Movies will showcase a spectacular curation of the best films from the ’60s to the ’90s,” says Avi Himatsinghani, the founder and CEO of Rewind Networks. “This unique value proposition will fulfill a strong appetite among viewers in Asia that is currently not being catered to in the market.”

“Our content offerings have consistently stayed true to the brand proposition of ‘The Best TV— All in One Place.’”

3rd Rock from the Sun on HITS

—Avi Himatsinghani

Sony Pictures Television Networks, Asia AXN / Sony Channel / ONE Sony Pictures Television (SPT) Networks, Asia is home to five channels in the region: AXN, Sony Channel, ONE, GEM and Animax. “AXN, SPT Networks’ flagship channel, celebrates 20 years of entertaining Asia this year with its potent mix of acquired Hollywood series and hit original productions that are ‘made in Asia, for Asia,’” says Virginia Lim, the senior VP and head of content, production and marketing for SPT Networks, Asia. This month, AXN is welcoming the return of the record-breaking series Asia’s Got Talent. “ONE, the toprated Korean entertainment channel, is taking the Hallyu wave to new heights via groundbreaking, same-time-as-Korea drama series,” Lim says. She adds, “GEM, SPT Networks’ joint venture with leading Japanese broadcaster Nippon TV, continues to be the gem of Northeast Asian entertainment.”

10/17 WORLD SCREEN 553

Asia’s Got Talent on AXN

“You’ll see more original productions from SPT Networks as we build an exciting pipeline of original series that resonate on both a local and pan-regional level for our Asian audiences.”

—Virginia Lim

ASIA_1017_UPS_rev_Layout 1 9/26/17 2:02 PM Page 3

8 TV ASIA

SPI International FightBox / FashionBox / Fast&FunBox SPI International has a number of channels from its bouquet present across Asia. FightBox features the best MMA and martial arts programming from all over the world, while FashionBox showcases inspirational, educational and entertaining content focused on shopping, lifestyle and fashion trends. DocuBox is dedicated to programming that explores the mysteries and beauty of the planet. Fast&FunBox is a channel that spotlights the most extreme sports worldwide. Also available in Asia are FilmBox Art House, 360TuneBox and Gametoon, a gaming channel for millennials. “In the Asian region, we are now delivering our channels via satellite, so we are ready to expand distribution into more countries in order to meet the end-users’ needs with our versatile linear channels,” says Berk Uziyel, SPI/FILMBOX’s executive director.

Boat Show on Fast&FunBox

“We are ready to expand distribution into more countries.”

—Berk Uziyel

Turner Asia Pacific

Bill & Tony on Cartoon Network

Cartoon Network / Boomerang / POGO Turner Asia Pacific is already present in 29 countries and at least 135 million homes across AsiaPac with its channels, which include Cartoon Network, Boomerang, POGO and Toonami. “We’re always looking for new partnerships to increase our reach,” says Mark Eyers, the company’s chief content officer and senior VP for kids’ networks. “Over the past few months, more and more households in markets such as the Philippines and Indonesia, through branded blocks and free-to-air deals, will be able to see shows such as Ben 10, The Powerpuff Girls, We Bare Bears and Mighty Magiswords.”

Eyers says that Turner Asia Pacific is placing more resources into commissioning and creating new content from the region.

“We’ve seen a big spike in the number of really talented animators, writers and artists—and we want to work with them!”

“We recognize that owning and controlling our IP is critical.”

—Mark Eyers

TV5MONDE Asia-Pacific TV5MONDE Asie / TV5MONDE Pacifique / TV5MONDE Style HD TV5MONDE Asie and TV5MONDE Pacifique are generalentertainment channels that feature a range of genres, while TV5MONDE Style HD is dedicated to French lifestyle fare. For TV5MONDE Asia-Pacific, 2017 has already seen quite a bit of growth, with new launches all over the AsiaPac region, including in Maldives, Thailand, Taiwan, India, Bangladesh, Korea, Indonesia and Sri Lanka. “Altogether, TV5MONDE has gained over 19 million subscribers, which represents a 27-percent growth year on year,” says Alexandre Muller, the managing director of TV5MONDE Asia-Pacific. As for programming highlights, TV5MONDE has coverage of Paris Fashion Week with exclusive documentaries on haute couture. The channel has also lined up some new series and movies, live football matches from French Ligue 1 Conforama, cartoons and more.

Nouvelle Couture, le luxe revisité on TV5MONDE

“We are pushing forward our in-house OTT service TV5MONDE+ Asia-Pacific.”

—Alexandre Muller 554 WORLD SCREEN 10/17

ASIA_1017__Layout 1 9/19/17 10:15 AM Page 1

ASIA_1017_PAY_AP_ 9/25/17 5:42 PM Page 2

10 TV ASIA

AXN’s Asia’s Got Talent.

556 WORLD SCREEN 10/17

ASIA_1017_PAY_AP_ 9/26/17 2:07 PM Page 3

TV ASIA

to As competition intensifies, Asia’s leading pay-TV programmers are innovating their strategies for finding, and keeping, audiences. By Mansha Daswani nternet advertising has already eclipsed TV spending in several Asia-Pacific markets, including Australia, China, Korea, New Zealand and Taiwan.

And it’s set to do so in Hong Kong, Japan and Singapore by 2022, according to research by Media Partners Asia (MPA).

That’s a tough pill to swallow for the region’s pay-TV industry, which has been working hard for years to cut in on terrestrial television’s dominant share.

“Consumers are spending more time on mobile, social and online-video platforms, driving demand for internet advertising,” said Vivek Couto, executive director of MPA, in releasing the findings of the group’s Asia Pacific Advertising Trends report.

The pay-TV market, however, while facing the challenge of online disruption, is far from a dying sector. Pay-TV revenues are expected to reach $68.5 billion in 2022, MPA says.

And there are still gains in certain markets, notably India, while in others, such as Hong Kong, cord-cutting is starting to take a toll on the sector.

For the region’s major pay-TV channels, the mission is straightforward enough: drive viewership, engagement and ad dollars, and make yourself indispensable to platforms. To achieve those aims, schedulers are experimenting with launch strategies, expanding social-media outreach and, as the acquisitions market gets squeezed by the arrival of content-hungry OTT platforms, stepping up original-programming initiatives.

“With more competition, more platforms out there, it is important for us to have our own uniqueness and be able to maintain our own identity,” says Virginia Lim, the senior VP and head of content, production and marketing at Sony Pictures Television (SPT) Networks, Asia.

Local production has been an essential part of the SPT strategy for years now, with AXN having been one of Asia’s first English-language general-entertainment channels to bet big on original programming.

“Original production gives you unique content and the differentiation that every service now needs,” Lim explains.

Last year the channel resurrected The Amazing Race Asia for a fifth season and this year it is working on season two of Asia’s Got Talent. The latest addition to the roster, for 2018, is The Elements, featuring Australian magician, illusionist and escapologist Cosentino.

ASIAN SPIN FOX Networks Group (FNG) Asia has also been dabbling in the regional originals space, with highlights that have included Asia’s Next Top Model and Bolt of Talent on StarWorld, which was recently rebranded as FOX life.

It’s a similar situation at NBCUniversal, where Scott Mackenzie, VP of channels for Asia, reports that at E!, local content is becoming increasingly important. The service has made shows in the Philippines, Malaysia and Singapore and more recently has been acquiring select Korean series for a new weekly block, Seoul Saturdays.

“Korean celebrities appeal across the entire region,” says Mackenzie. “Korean content allows us to appeal to fans everywhere from Jakarta to Japan.”

At A+E Networks, both Lifetime and HISTORY have been investing in content developed and produced locally. “Originals are highly important to establish locally relevant connections to a channel’s brand attributes, attract local sponsorship and provide value for our platform partners,” says Saugato Banerjee, the company’s general manager for

10/17 WORLD SCREEN 557

11

ASIA_1017_PAY_AP_ 9/25/17 5:42 PM Page 4

12 TV ASIA

often and when to repeat? When to schedule back-to-back episodes? How often to premiere new shows?

“You need fantastic curation,” is how Mark Eyers, chief content officer and senior VP for kids’ networks at Turner Asia Pacific, puts it.

SAVVY SCHEDULING

Tapping into the OTT opportunity, FNG has begun rolling out the FOX+ online service in select Asian markets.

North Asia. “But to have a sustained impact on live ratings, they need to be executed in sufficient volumes. That is often a challenge in some markets.”

Indeed, Asia’s big pan-regional players are still heavily reliant on imported content, a market that is now busier than ever as the likes of HOOQ, iflix and others ramp up their OTT offerings.

“We noticed, about a year and a half ago, that even on linear we were finding a lot of headwinds buying content because people were wanting to hold [the shows] back, saying, ‘The OTT guys want this,’ ” observes Keertan Adyanthaya, executive VP of content and communications at FOX Networks Group Asia. “But lately, in the last six months or so, things have eased up a lot. Two factors here: one, there are so many more shows being made, so that is creating a glut in the marketplace. Really good shows are still hard to come by, but if you want to curate strongly and look for hidden gems, you can find them. The second is, Netflix seems to have focused on a cherry-picking strategy versus buying everything. Two years ago they were taking every show possible. Now they just want the best show and they don’t want everything else. That creates space for everyone else to operate in.”

Adyanthaya, like the other programmers surveyed here, stresses the importance of day-and-date premieres. “Before people can pirate it, we want to give them an opportunity to access it legally,” he says.

For Prem Kamath, the deputy managing director for the Asia Pacific at A+E Networks, however, day-and-date is not always required. “It is important for some shows that have strong appointment viewing. It’s not so important for other shows where engagement rather than timeliness is the key driver of consumption.”

Beyond day-and-date, there are other scheduling considerations that programmers need to take into account. How

“TV5MONDE Asie is providing a very large number of ‘premieres’ every day,” says Alexandre Muller, the managing director of the Asia-Pacific operations at the global Frenchlanguage broadcaster. “A new drama or movie is released every weekday in prime time, as well as new documentaries, cartoons, current affairs and lifestyle magazines. Because of the richness of our library, the number of repeats is limited. It is impossible to promote all new shows individually, but we give special attention to all programs subtitled and available during [prime] time.”

At Rewind Networks, whose HITS network delivers classic U.S. dramas and comedies such as 3rd Rock from the Sun and previous seasons of Grey’s Anatomy, the mantra, according to CEO Avi Himatsinghani, is “keep it simple.”

Series are stripped at the same time Monday to Friday, with back-to-back stacking on the weekends for those who missed out during the week. “Simple leads to less confusion, obviously, but it also leads to loyalty,” Himatsinghani says.

“People remember, 9 p.m. this show is on, 10 p.m. this show is on. I’m shocked by the kind of feedback we’re getting from people saying, why are you showing season three again, you should show season four! They are so involved that they know this is the time you should be moving on to the next season.”

Himatsinghani adds that using data from affiliate partners’ set-top boxes is increasingly important. “With set-top box research we can see what our top shows are. We’re working on how we increase the average time spent by viewers on our network. One of the ways to do that is to give more exposure to the shows that work for us. For example, The Nanny does very well for us in Malaysia. So we could increase the frequency of The Nanny broadcasts within a 24-hour schedule. More people then have an opportunity to watch it. And we can give lesser exposure to stuff that’s not working as well. We’re working on that balance.”

Marathons are increasingly part of the scheduling mix at SPT, Lim notes. “Sometimes it’s back-to-back episodes in a full marathon, and sometimes we’ll do a mid-season catch up.

And we make sure we schedule mid-season marathons on weekends to make sure you have your binge-viewing!”

BUILDING BLOCKS NBCUniversal’s Mackenzie says he’s been a “long-term believer in marathons and blocks. We’ve been doing that actively for a number of years. The fact that more people have come around to that style of viewing because of on-demand services has only reinforced in our minds that it is the right approach.”

Indeed, FNG’s Adyanthaya notes that shows like Prison Break and 24 were being run with back-to-back episodes on his channels almost a decade ago. “We started using that strategy when we wanted to catch people up on previous seasons,” Adyanthaya says. “We also used [marathons] as a launch pad for a new season. For example, when we did 24 season three, we would do [a marathon] of one and two.

We’ve even done a one-week non-stop 24 marathon.”

558 WORLD SCREEN 10/17

ASIA_1017_PAY_AP_ 9/25/17 5:59 PM Page 5

TV ASIA

13

Lim points to SPT’s use of “complementary scheduling,” as a way to boost awareness of a show’s launch, premiering series in different time belts on multiple channels in the portfolio. “In some countries in Asia, the viewers consume both English- and local-language content. When we cross-promote in that way, we bring in new viewers. That has been very effective for us to reach out to our existing, loyal viewers and also to bring in new viewers within our [group’s] core audience.”

PORTFOLIO POWER Adyanthaya also stresses the importance of crosspromotion activities across his portfolio. “The most important tool that we have at our disposal is our own on-air inventory,” he says. “We have a network of 25-plus channels across genres and languages. We have a very strong crosspromotional strategy and we’ve been using that to great effect. We’ve tracked our viewership and noted that almost 60 percent of our viewership has seen our promos.”

But what do you do if you’re an independent channel operator? Get creative.

“We’re a small network,” Rewind’s Himatsinghani says.

“We don’t have deep pockets, so we don’t spend big money on consumer marketing. We tend to work with our partners.

We put out generic promos for the shows and then we work with the respective platforms in every market. So if it’s Astro, we have Astro branding, and then we have them air cross promotions on their own networks. We rely heavily on the media assets of our platform partners. And we look at where similar audiences are. I look at HGTV or Food Network as a complementary service. Someone has gone there to watch some great programming on homes and food—they could also be interested in HITS. So we do a lot of cross-promotion partnerships with [other] networks.”

HITS is among the newer channels in the region, having just arrived on the scene in 2013. Smithsonian Channel is also

a recent entrant, landing in Singapore last year with plans to expand to several more territories in the months ahead. For a brand-new contender in the Asian pay-TV landscape, David Royle, executive VP of programming and production at Smithsonian Networks, says the focus is on “quality programming” and carving a distinct niche in the factual landscape.

“We are, in a way, the antidote to fabricated reality shows,” Royle notes. “We haven’t gone the route of some of the other American channels and indeed some of the international channels. We position ourselves as factual TV you can trust.

And I think in today’s age, people are yearning for that. At the same time, we’re very clear in our minds that we’re factual entertainment. We’re not preaching to people, we’re not educational TV, we’re good storytellers, we’re offering visually rich programming that hopefully entertains, draws the audience in, and at the end of which you can say, I took something away from it, I learned something new.”

To bolster its local resonance, Smithsonian has been making select regional acquisitions, including two titles from Korea’s EBS, Goshawk: Soul of the Wind and Great Snakes.

“We’re looking to partner more in Asia,” says Royle.

Even established players are scouting new markets.

HISTORY and Lifetime are well penetrated across most of the region, but they arrive in Korea for the first time this year.

10/17 WORLD SCREEN 559

Turner’s Cartoon Network is developing more content locally, such as the short-form series Lamput from India.

TV5MONDE Asie, with a lineup that includes Ligue 1 sports coverage from France, has expanded its reach with the launch of an OTT service.

ASIA_1017_PAY_AP_ 9/25/17 5:43 PM Page 6

14 TV ASIA

Social media and online distribution are also essential pathways to the consumer today, whether it’s shareable short-form content or premiering shows on-demand ahead of the linear release.

“The fundamental shift in marketing channel brands now is about going beyond tune-in messaging,” says Banerjee at A+E Networks. “Channels and their content have to be more sharply defined. They have to live in environments where viewers have plenty of choice, and not enough time.”

#CONNECTING

NBCUniversal-owned DIVA airs the local original How Do I Look? Asia.

“In Korea, our premiere strategy will be designed to expose a broad cross-section of our brand-defining global hits to the widest possible audience,” A+E Networks’ Banerjee says.

“This will be complemented with locally relevant acquisitions and tied to key cultural moments for the HISTORY and Lifetime audiences. In a way, every single prime-time hour will be a ‘premiere’ hour as we gather data and insights for this whole new territory. Having said that, a premiere is no longer a time slot but an extended event cycle. It follows a longer arc with show announcements, updates by talent on social media, influencer marketing and activation of discussion threads and forums in the run-up to any tentpole premiere.”

STUNT DOUBLES For A+E Networks across the region, outdoor events have also proven to be effective for strengthening a brand’s presence and awareness in a market. Kamath references HISTORY Con in Manila and Kuala Lumpur, which drew an attendance of over 90,000 people this year. “Our attempt with all our marketing initiatives is to shift the focus away from information to persuasion and experiences. This is the consistent theme that runs across all of our marketing initiatives.”

At FNG, stunts include a mix of global campaigns—such as the use of local graffiti artists in multiple cities to create a mural for the launch of Outcast—and regional ones, including a VR initiative for The Walking Dead. Working with the Grab taxi service in Malaysia, random riders were treated to a VR experience for the zombie drama, and, when their headsets were removed, were greeted by a walker in the taxi with them. “We covered it all with hidden cameras and we cut a viral video that we floated out on YouTube, Facebook, WhatsApp and every other possible form of social media,” Adyanthaya says.

At NBCUniversal, a key strategy has been reaching out to “fan communities” around celebrities, Mackenzie says.

He references a partnership with Spotify to promote E!’s launch of Mariah’s World.

The NBCUniversal channels also work with sister company Universal Studios on campaigns, Mackenzie says, citing the television broadcast of the first two movies in the Despicable Me franchise ahead of the theatrical release of the third film.

Turner’s Eyers observes that “given the erosion in appointment viewing,” programmers need to be able to identify talking points in shows that can be plugged on social media. “It’s no longer just, There’s a new episode at 4 p.m. of Adventure Time or Ben 10. It’s important to have a destination, but it’s more important to have something that creates talk.

Is there a different character? Is there a special story arc?”

Eyers continues, “We have a number of shows around the world where we start on nonlinear platforms first, so people get to know [a brand]. Also, for us to experiment at a lower cost, with a wider-reach experience, we’ve been doing a lot of 15-second micro shorts and we scatter them across various platforms. Some would be on our own branded experiences, some on an AVOD platform like YouTube, some in our app and then our website and the linear platforms.”

Facebook is serving as a significant resource at HITS. “Our Facebook page has a lot of loyalists who send in paragraphs listing shows they want,” Himatsinghani says. “They know what HITS is, so they feel ownership of the brand, and that’s fantastic. I was at FOX for 12 years and never imagined that the viewer would become the programmer. That’s one of the greatest things we’ve achieved. We’ve translated the brand proposition in such a simple manner to people that they can make their wish list and we can hear them.”

At TV5MONDE, Muller says that having an OTT option for the channel has been critical “to erase the weight of geographical constraints and to meet the needs of our audience, independently of its location or aspirations.”

SPT’s Lim says that “accessibility” is one of the pillars of her strategy. “Allowing our viewers to access our content anytime they want is a very important part of our business. And we have a lot of viewers staying with us on this platform. On some of the new season premieres, we now offer prior fullseason catch-up on-demand to encourage tune-in.”

Of course, deciding what to premiere on nonlinear, and where to do that, is a conundrum in and of itself.

“The benefit of the overall franchise is what’s important,” says Eyers. “Our linear platforms have varying distribution in different markets. So it may pay to lean more towards nonlinear before the pay-TV release, or using some original content first before the linear channel. You manage the flow. There’s no point just going to a paid linear platform that has limited distribution when it doesn’t benefit the entire market. That’s the guiding principle.”

Ultimately, Eyers says, “it’s all about joining the dots.

That’s the world we’re in.”

560 WORLD SCREEN 10/17

ASIA_1017__Layout 1 9/21/17 9:43 AM Page 1

ASIA_1017_OKUBO_ALT_WSN_1207_IN THE NEWS 9/26/17 3:18 PM Page 1

16 TV ASIA

For three years in a row, Japanese media conglomerate Nippon TV has been the “Triple Crown” winner, ranking in first place in all-day, prime time (7 p.m. to 11 p.m.) and golden time (7 p.m. to 10 p.m.) ratings. Meanwhile, amid challenging macroeconomic trends in Japan, Nippon TV also saw financial gains this year, with revenues and net profits on the rise. Increasing the company’s non-advertising revenues is a top priority for Yoshio Okubo, the company’s president and representative director. He tells TV Asia about his plans for revenue diversification, interBy Mansha Daswani national expansion and keeping Nippon TV’s ratings ahead of the competition.

562 WORLD SCREEN 10/17

ASIA_1017_OKUBO_ALT_WSN_1207_IN THE NEWS 9/26/17 2:24 PM Page 2

TV ASIA

TV ASIA: What’s behind your ratings success?

OKUBO: We at Nippon TV have a programming strategy that we dubbed “viewers always come first,” whereby we relentlessly keep our viewers as our top priority. We aspire to become an indispensable part of their lifestyles, and, feeling the pulse of their ever-changing tastes and preferences for content, we take proactive measures and meet their needs.

TV ASIA: How are you driving innovation within your programming team to ensure you can stay ahead of the competition?

OKUBO: One of Nippon TV’s strengths is that viewers have given an incredible amount of support to our regular programs that we air every day, which we continue to actively improve and rebrand. In particular, the entertainment shows The Tetsuwan Dash, The Quest and Line Up Law Office, which air over the three hours of golden time (7 p.m. to 10 p.m.) on Sundays, have become a staple for many across Japan. All three shows have been going strong for over ten years and despite the success, their creators make sure they don’t become satisfied. Through constant innovation, they continuously evolve and rebrand the programs, enabling them to capture stellar ratings.

The Quest celebrated its tenth anniversary this year and is still breaking records, recently marking an all-time best monthly average viewer rating of over 20 percent (the annual average for Nippon TV golden-time shows is 12.2 percent).

TV ASIA: Tell us about JOCDN. Why is this an important initiative for Nippon TV? OKUBO: JOCDN is a content delivery network (CDN) service that specializes in stable and efficient online-video distribution. It was formed through a joint venture between Nippon TV and Internet Initiative Japan. In April 2017, a total of 14 major TV broadcasters from Japan’s three largest metropolitan areas were added as third-party investors, making JOCDN the main service provider for their video-streaming businesses.

While there were no particular issues with the CDN that [we] were previously using, we felt there could be limitations to our business expansion endeavors as we were relying on an external entity for such a vital service. One such impediment was the lack of transparency with the technology of a nonlocal CDN, and indeed there were instances when they were not able to fully meet the needs of a Japanese videostreaming service provider like Nippon TV. Given that this market will continue to grow, we deemed it beneficial to establish a CDN service that is easy to use, transparent and operated by the broadcasters themselves. We understand what the video-streaming businesses of Japanese broadcasters need, and with our proximity to each other, we are able to quickly deliver unparalleled high-quality services.

Last April, Nippon TV’s catch-up service Nittele TADA! and 24-hour online news source Nippon TV News24 began utilizing JOCDN’s streaming service, while Hulu, a subsidiary of Nippon TV, is considering its use from 2018.

Indeed, JOCDN is quickly garnering momentum in providing streaming services to the online-video businesses of commercial broadcasters, with TVer—the catch-up viewing portal for eight commercial broadcasters—coming on board last June.

As the TV broadcasters, who are stakeholders themselves, increasingly utilize JOCDN for their video-streaming businesses, we expect equipment efficiency to improve. This results in excellent service at lower costs, but more importantly, our end users enjoy a superior, user-friendly viewing experience.

TV ASIA: How is Hulu Japan progressing?

OKUBO: Hulu is Japan’s top SVOD service, boasting the largest number of paying subscribers. This is a remarkable feat considering that Hulu entered the Japanese market only in September 2011, becoming the first in the country to provide a new method of entertainment for a flat monthly fee. After becoming a wholly-owned subsidiary of Nippon TV in April 2014, Hulu’s growth accelerated and by March 2017 had over 1.55 million subscribers.

Aspiring to become an SVOD service that can be enjoyed whenever and wherever, Hulu embarked on a large-scale system renewal in May 2017. We implemented new user profiling mechanisms that enable more detailed content genre categorizations and recommendations based on viewing history. The user interface was also improved. In addition to the movies and foreign dramas that our subscribers have been following, Nippon TV’s own dramas and entertainment shows are now available for catch-up viewing. The experience will only keep getting better for end users, as we continue to improve the platform to meet their needs.

Thanks to the latest technical enhancements, our subscribers can now enjoy live streaming on their smartphones and tablets. Nippon TV’s sports content, such as the games of the Yomiuri Giants professional baseball team, news from the BBC, CNN, and our 24-hour news source, Nippon TV News24, music from MTV and MIX, and many more shows are becoming available for live streaming.

Another exciting development is that we’re leveraging Nippon TV’s superb content-production capabilities to create original dramas, entertainment shows and anime for Hulu. In addition to our very own top-notch talent, we’re bringing in the finest creators from around the world to put together a world-class lineup of original content.

The recent overhaul also brought in the latest digitalrights-management technology to our platform, giving us the best content protection capability in the industry. Content providers from all over the world can rest assured that their programs are safe with us, allowing us to acquire a wider array of entertainment for our subscribers.

We further sealed our commitment to take Hulu to the next level in July 2017 by welcoming new third-party shareholders: Hulu in the U.S.; Yahoo! Japan, which runs Japan’s largest internet portal; Toho Co., Japan’s largest motion picture producer and distributor; and Nippon TV affiliate stations Yomiuri Telecasting and Chukyo TV Broadcasting. This will allow Hulu to strengthen its business operations, produce and acquire even more entertaining content, and enhance promotional activities. Hulu, with the full support of Nippon TV and its new shareholders, will forge stronger partnerships with content providers in an effort to grow its subscriber base and become an indispensable part of their lives.

Our aggressive growth strategy with Hulu is a clear indication of Nippon TV’s overall commitment to lead the online-streaming business in Japan. We’ve produced various original drama series, tied up content with our linear platform and created events around several movies to substantially increase our new subscribers. Although we are traditionally a linear broadcaster, we must see the internet as a beneficial platform that we can leverage to our advantage.

Moreover, we are taking ardent strides towards bolstering the program selection of our catch-up services Nittele On Demand and Nittele TADA!

10/17 WORLD SCREEN 563

17

ASIA_1017_OKUBO_ALT_WSN_1207_IN THE NEWS 9/26/17 2:29 PM Page 3

18 TV ASIA

Overprotected Kahoko has been one of Nippon TV’s top dramas this year.

TV ASIA: Are you adjusting your linear programming strategy in response to how viewers watch content today?

OKUBO: We established the multiplatform programming department in June 2017 to plan and execute various strategies that will maximize the value of Nippon TV’s high-quality content through synergies with our linear, broadcasting satellite (BS), communications satellite (CS) and internet platforms.

For example, this new department enables us to broadcast news and sports—content that people prefer to watch live—on our linear channel, while also programming them in our BS and CS timetables. We further diversify our distribution routes by streaming those programs on Nittele TADA! and Hulu to reach a broader audience and yield higher revenues.

Another pillar that provides the multiplatform programming department with business opportunities is our stock content—a vast collection of dramas, movies, music and anime. The department is working tirelessly to take these long-standing revenue generators to the next level with new undertakings that lead to further optimization.

TV ASIA: What investments is Nippon TV making in 4K, UHD and VR? OKUBO: Our BS channel operator, BS Nippon Corporation, is set to begin broadcasting in 4K in 2019, and the entire Nippon TV group is ramping up efforts to build expertise around the production and distribution of content in 4K and HDR. We are actively experimenting with the various techniques involved with 4K and are boosting our investments so that the entire group will be able to fully function in 4K. We are also charging ahead in the VR field, with aggressive research and development on the filming and transmission of 360-degree high-definition footage. We have even translated these efforts into production, with the successful creation of a 360-degree VR drama, The Detective Invisible.

As for AI, we have taken the lead character from our latest drama series Overprotected Kahoko and created a cuttingedge AI version of her for followers to interact with through [social media]. Our proactive research, development and utilization of new technology has yielded great results and we certainly won’t be holding back going forward.

TV ASIA: Tell us about the gains seen by your international division, both program sales and your channel endeavors.

OKUBO: With the success of Dragons’ Den in the U.K. and Shark Tank in the U.S., which originated from a Nippon TV format, and the acclaim that our drama Mother enjoys in Turkey, it

became clear to us that our strength lies in international format sales. As such, we will continue focusing our efforts on this business.

In 2012, the Nippon TV group announced its medium-term management plan, in which one of the goals outlined was to gain a solid presence in overseas markets. Launching the channel GEM in Southeast Asia was one of the greatest challenges we undertook to achieve that goal. The new channel required us to sell our content in volumes we’d never experienced previously, and this revealed to us a problem we needed to overcome.

Obtaining the rights to Japanese content is quite difficult. Nippon TV, therefore, came up with a new and improved system of clearing rights smoothly. First, in order to simplify the process for music rights, we decided to produce our own original music.

Next, we entered a comprehensive agreement with a stock photo company, which significantly reduced the work involved with getting the rights to each borrowed image used very often in our shows. We realized that building a stock of content, with all the music and image rights already cleared, is vital to the growth of our business. This was perhaps the most noteworthy outcome of launching GEM. Our smoother rightsclearance process will increase the volume of content that we can distribute internationally, either simultaneous to or not long after their Japanese broadcast.

TV ASIA: How has the advertising market in Japan held up?

OKUBO: Over the years, Nippon TV has consistently proven to be the best in the industry when it comes to sailing against the headwinds of Japan’s economy, and we plan to forge ahead with even greater success. For the second half of 2017 and heading into 2018, we expect an increase in general consumption driven by the rise in new hires and wages throughout the country. Ahead of the 2020 Tokyo Olympics and Paralympics, our clients from all over the country will be boosting their marketing and advertising. Nippon TV is positioned to capitalize on these trends better than the other major broadcasters in Japan.

TV ASIA: What initiatives are you employing to increase your non-advertising revenues?

OKUBO: We are once again allocating ¥50 billion ($460 million) for new business ventures, including strategic investments, in order to further diversify our business portfolio. Nippon TV’s life-and-health-related business segment is the pillar of our non-advertising revenues and we are actively seeking ways to drive synergy within the entire Nippon TV group of companies to create fresh and innovative services for our customers.

TV ASIA: What are the greatest challenges for Nippon TV and the Japanese broadcasting business in the year ahead?

OKUBO: The greatest challenge is the shrinkage of the Japanese economy, caused by a population that is declining and aging. We are also concerned by the number of Japanese firms transferring their ad expenditures overseas, as well as the changing demands of sponsors. With the growth of the “internet first” demographic, we are making sure our linear broadcasting business evolves and accommodates the spread of smartphones and online video-streaming services.

564 WORLD SCREEN 10/17

ASIA_1017__Layout 1 9/20/17 12:59 PM Page 1

ASIA_1017_CARLO_ALT_DOC_0407_NIGHT 9/25/17 5:55 PM Page 2

20 TV ASIA

TV ASIA: How has the advertising market been, both for your terrestrial outlets and cable?

KATIGBAK: The television ad markets continue to remain stable. Cable ad revenue is declining. There is increasing ad spend on digital platforms, but that is not yet impacting terrestrial ads.

TV ASIA: What are your primary non-advertising sources of revenue, and how are you looking to drive those?

KATIGBAK: Subscription sales are the largest contributor to non-advertising revenues, accounting for 33 percent of total revenues. These are driven mainly by cable subscriptions, broadband subscriptions (fixed line and mobile), and the sales of our international channel TFC. The next largest source would be box-office revenues from our theatrical releases.

We have [developing] sources of revenues, including home-shopping sales through a joint venture with the Korean company CJ, theme-park admissions from our current investment in KidZania, which is a Mexican franchise, and an emerging e-commerce platform for both durable goods and digital content.

By Mansha Daswani

Filipinos spend more time with social media than anyone else in the world. That finding, from the Digital in 2017: Global Overview report released at the beginning of this year, is further evidence that the media landscape in the Philippines, like in so many markets in Asia, is being increasingly impacted by the mobile generation.

As the country’s largest media and entertainment conglomerate, ABS-CBN Corporation is navigating these momentous shifts in content consumption while remaining focused on its mantra of being “in the service of the Filipino worldwide.” Installing a digital mindset was one of the first tasks for Carlo Katigbak when he became president and CEO of ABS-CBN Corporation at the beginning of 2016.

Having moved up through the ranks, Katigbak was well versed in the activities of many of ABS-CBN’s businesses, including the pay-TV platform SKY Cable, the telco ABS-CBNmobile and the DTT service ABS-CBN TVplus. He tells TV Asia about how he is growing those businesses while also tending to ABS-CBN’s broad freeto-air reach and reflects on the rising importance of content exports and co-productions to the Filipino media group.

TV ASIA: Tell us about the strategy you wanted to put in place when you succeeded Charo Santos-Concio at the helm of ABS-CBN Corporation. What were your primary objectives for the group?

KATIGBAK: One objective is the transition to an agile digital company. We are converting nearly all of our analog delivery platforms into digital platforms, including a switch to digital terrestrial television (DTT).

To date, nearly 70 percent of the market in greater Manila is receiving our signal on a digital device—DTT set-top box, cable set-top box or satellite set-top box.

We also aim to create new content for the emerging audiences. We’ve put in place a plan to start producing content meant for online viewing and mobile viewing.

We are setting our sights on producing content for an international audience as well, believing that Filipino creative and performing talent is truly world-class.

In an era where content creation is increasingly democratized, we want to position ABS-CBN as a hub for creative talent. We hope that anyone with a great idea can come to us and we will offer our help in consumer research, production, distribution and monetization.

TV ASIA: How are you maintaining ABS-CBN’s ratings in the competitive terrestrial space?

KATIGBAK: Understanding the audience is key in producing content. ABS-CBN has enjoyed a significant boost in TV ratings with the help of ABS-CBN TVplus, the country’s first digital terrestrial television product. According to data from Kantar Media, ABS-CBN’s audience share in Mega Manila increased to 36 percent in 2017, compared to 31 percent in 2015, as more households are able to experience a crystal-clear viewing experience with ABS-CBN TVplus. ABS-CBN’s ratings in Mega Manila also rose to 15 percent from 12 percent in 2015.

TV ASIA: How are your cable assets performing, both the platform and the channel?

KATIGBAK: The platform is performing according to expectations, although we’ve seen a significant consumer shift to

566 WORLD SCREEN 10/17

ASIA_1017__Layout 1 9/22/17 12:07 PM Page 1

ASIA_1017_CARLO_ALT_DOC_0407_NIGHT 9/26/17 2:36 PM Page 3

22 TV ASIA

broadband services, which now account for most of the growth.

Among our cable channels, five are in the top 15 most viewed, with our all-movie channel Cinema One still leading.

TV ASIA: Content creation is a vital part of your business. How are you maintaining innovation within your production team and fostering a new generation of talent?

KATIGBAK: We continue to tap and discover new talent for digital content creation and encourage them to try new ideas in a nofault environment. Our younger employees are also invited to join our “millennial panel” during content pitches.

TV ASIA: What trends are you seeing in nonlinear viewership among your audiences?

KATIGBAK: The market is still small for VOD streaming in the Philippines, as continuous access to the internet is still a barrier (due to bandwidth costs and the consistency of the signal on mobile phones). We expect a change in viewing behavior once internet access becomes more affordable and the bandwidth is faster.

As Filipinos by nature are very relational, it is important for us to bond with our families. That is why traditional media like freeto-air TV and cable remain relevant to us.

We remain focused on gearing up for the future and being ready in the category with [the online platforms] iWant TV (local) and TFC.tv (international).

TV ASIA: Tell us about the gains you’re seeing in your international business, especially in terms of finished program sales and format sales.

KATIGBAK: OTT is the biggest story in Asia. OTT platforms are aggressively tapping us for the licensing of content and various partnerships, including co-production opportunities.

There is also increased awareness and appreciation of Filipino dramas in the Southeast Asian region, translating to multiyear volume deals and the opening of new territories.

ABS-CBN is a prolific producer of Filipino drama, which it is increasingly distributing across the globe with a slate that includes, from the top, A Love to Last, Brothers, Wildflower and La Luna Sangre.

568 WORLD SCREEN 10/17

TV ASIA: What are your key objectives for the group in the next one to two years?

KATIGBAK: Viewing behavior continues to evolve as communication technologies advance. [We aim] to continue to address the changing media and entertainment landscape through content innovation, understanding our audiences and developing deeper and more meaningful relationships with our consumers across all the businesses we are in.

It is through these efforts that we can truly be in the service of the Filipino.

ASIA_1017__Layout 1 9/11/17 2:07 PM Page 1

ASIA_1017__Layout 1 9/22/17 12:05 PM Page 1