TV Asia Pacific MIPCOM & CASBAA 2011

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Pan-Asian Channels Turner’s Steve Marcopoto Universal Networks’ Christine Fellowes www.tvasia.ws

asia pacific THE MAGAZINE OF ASIA-PACIFIC MEDIA

OCTOBER/NOVEMBER 2011

MIPCOM & CASBAA EDITION

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Astro www.astro.com.my

IN THIS ISSUE

Imam Muda

Turning 15 this year, the Malaysian pay-TV platform has evolved from a 22-channel service to one delivering 146 channels to 3 million Malaysian homes, reflecting a 50percent penetration rate. Key to the company’s growth is its localization strategy. Almost MYR400 million ($135 million) has been invested in the development of local content for its 37 Astro-branded channels. The portfolio includes Arena (sports),Awani (news) and Ria (entertainment), with signature shows like Imam Muda, Akademi Fantasia and Maharaja Lawak.

The platform has also enhanced its capabilities with the rollout of its Astro B.yond tier, delivering HD and PVR services to digital customers. So far, 500,000 have signed up for the new Astro B.yond box. Astro has also stepped up its on-demand slate, with AstroFirst delivering payper-view movies as early as two weeks after their theatrical release. Astro has also delivered sporting events in 3D and will soon begin allowing customers to control their PVRs remotely.

Striking Gold Developments at Asia’s biggest pay-TV channel brands

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Interviews Turner’s Steve Marcopoto Universal Networks’ Christine Fellowes GMA’s Wilma Galvante

22 24 26

Ricardo Seguin Guise

Publisher Mansha Daswani

Editor Kristin Brzoznowski

Managing Editor Marissa Graziadio

Editorial Assistant Simon Weaver

Maharaja Lawak

Online Director Craig Brown Michelle Villas

Production & Design Directors Phyllis Q. Busell

DW-TV Asia

Art Director Cesar Suero

www.dw-world.de • DW-TV Asia • DW TV Asia+

Germany’s international broadcaster Deutsche Welle is eager to pursue new-media opportunities for the continued expansion of its channels in Asia. “In the last 12 months, Deutsche Welle has seen an increase in online-video platforms asking to stream our TV channels in full or in part,” says Petra Schneider, the director of distribution. “In China, for example, right now we have deals with five of the biggest platforms, showing our most popular programs as on-demand videos. Another positive development has been the fast improvement of digital infrastructure in certain countries, which paves the way for new IPTV companies, MSOs and online portals, opening new opportunities for DW-TV.” Discussing the channel’s plans for its Asian business this year, Schneider says that “regionalization and localization of content and services” is key. “We support having subtitles in Asian languages on our TV feeds. We will pursue more co-productions and content repackaging with local partners, and we want to increase the percentage of truly Asian content in our Asian channels.”

Sales & Marketing Director

“Bringing Europe to Life with DW” campaign

Terry Acunzo

Business Affairs Manager Vanessa Brand

Sales & Marketing Assistant

Ricardo Seguin Guise

President Anna Carugati

Executive VP & Group Editorial Director Mansha Daswani

VP of Strategic Development

“We are running a campaign in Indonesia

called ‘Bringing Europe to Life with DW’, which works so great when combined with our local broadcasting partners’ marketing activities.

”

—Petra Schneider

TV Asia Pacific © 2011 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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FremantleMedia Enterprises www.fmescreenings.com • The Wedding Band • The X Factor USA • My Babysitter’s a Vampire • American Idol • SLiDE

FremantleMedia Enterprises (FME) is introducing its first U.S. scripted drama to Asia-Pacific buyers: The Wedding Band, a comedy for U.S. cable network TBS. Another highlight is the company’s new kids’ and tween catalogue, which includes My Babysitter’s a Vampire, “a teen and tween drama which has already proved a huge hit in the U.S.,” according to Paul Ridley, executiveVP of international distribution and home entertainment for the Asia Pacific. Another highlight, Ridley says, is “SLiDE, a truly multiplatform series that allows viewers to follow the characters across the TV series as well as via social media, webisodes, games and graphic novels online.” On the entertainment front, there’s the new season of American Idol and Simon Cowell’s The X Factor USA. Ridley also lists FME’s “catalogue of returning franchises, including Jamie Oliver and Anthony Bourdain programming,” among others, “as well as the hugely successful drama Merlin, and a full slate of lifestyle and factual programming.”

SLiDE

“FME has continuously worked towards providing

a variety of content in line with what global audiences desire.

”

—Paul Ridley

Food Network Asia www.foodnetworkasia.com • Barefoot Contessa • Chopped • The Next Food Network Star

Food Network Asia celebrated its successful first year in the Asian market this summer. The service has carriage deals with StarHub in Singapore, Cignal Digital TV in the Philippines, Astro in Malaysia and DishHD in Taiwan, “and of course we’ve got more to come in the near future,” says Hud Woodle, acting general manager. Content from the U.S. channel has fared well on Food Network Asia. “The strength of the personalities seems to be transferring from the U.S. to Asia,” says Woodle, mentioning such figures as Ina Garten and Guy Fieri. Owning its own content has also been useful when working with affiliates, Woodle notes. “One of the things that the platforms really like about us is that we are really able to offer the full spectrum of possibilities and rights,” allowing content to be used in digital media. For example, Food Network Asia contributed to StarHub’s FooD.I.Y. app.

“We’re definitely proud of the four territories we’re in, but we do want to increase Food Network Asia’s presence throughout the region,” Woodle says of his short-term goals.

“We are beyond thrilled with the level of

success Food Network Asia has achieved in just its first year.

”

—Hud Woodle

Chopped

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Media Development Authority of Singapore www.mda.gov.sg The Maverick Chef

• Point of Entry • Jewels of the World • The Maverick Chef • The Kitchen Musical

While its capabilities as an animation powerhouse are well known, Singapore has been keen to showcase its prowess in other genres. Under the Media Development Authority (MDA) pavilion, “we have 16 Singapore companies offering 43 TV titles covering some 400 hours of animation, factual and drama content,” says Yeo Chun Cheng, the director of broadcast, animation, film and music.“Our goal is to showcase the capabilities of Singapore companies and quality Singapore content, thereby facilitating more business opportunities for Singapore’s media industry in terms of IP creation, production and international distribution.We want to raise the profile of Singapore as a world-class media partner to the international market, and work towards greater cooperation and partnership with leading international players.” Recent highlights in Singaporean content development include The Kitchen Musical, a series with a pan-Asian cast that rolls out in 18 countries in the region this month; the 3D doc Jewels of the World, the action drama Point of Entry and the lifestyle show The Maverick Chef.

“The Singapore Pavilion serves as a platform

where our companies can enhance their visibility through a unified Singapore branding that’s known for quality and creativity.

”

—Yeo Chun Cheng

Public Broadcasters International 2011 www.publicbroadcastersinternational.org • October 26 to 29, Singapore

Amid rapid new-media developments and continued audience fragmentation, public broadcasters from around the world will convene in Singapore this month for the 20th anniversary of the Public Broadcasters International (PBI) conference. Slated for October 26 to 29 at Resorts World Sentosa, the event’s host broadcaster this year is MediaCorp. The key topics on the agenda will include “the digital age and the role of public broadcasters in extreme situations such as earthquakes and other natural disasters,” says Chang Long Jong, deputy CEO at MediaCorp. “Delegates can look forward to engaging discussions on the impact of new media and how broadcasters are responding. Broadcasters will also be sharing their experience in switching from analogue to digital and the strategies that they are implementing as they navigate the digital age.” Paula Kerger, the president and CEO of PBS, will deliver the keynote speech. Other speakers include CBC’s Christine Wilson and representatives from the BBC, France Télévisions and NHK. Kim In-Kyu, the president and CEO of the Korean Broadcasting System, will also be attending the conference.

Singapore

“Events like PBI can assist us to develop

and maintain good relationships with our counterparts from other countries and help us to source opportunities for collaborations with other broadcasters.

”

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—Chang Long Jong

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Televisa Internacional www.televisainternacional.com • Marriage Diaries • Triumph of Love • A Woman of Steel • A New Beginning

“All of these stories have a structure and

values that can be understood and shared by the Chinese audience.

”

From a base in Beijing, Televisa Internacional has been steadily building a strong business in China, selling novelas into the market and working with broadcasters on local co-productions. These have included Chinese versions of Ugly Betty and Dumb Girls Don’t Go to Heaven. Last year,Televisa announced a pact with CCTV to develop a Chinese edition of Distilling Love.

Currently in the works are adaptations of Till Money Drives Us Apart, originally from RCN in Colombia, and the Televisa original Woman’s Word. At MIPCOM, Arturo Casares, director of sales for China, is eager to “follow up on projects that are already in the pipeline and use the market as a platform to meet new people and start new business opportunities.”

Casares’ top properties for Chinese buyers at MIPCOM are the telenovelas Marriage Diaries, Triumph of Love, A Woman of Steel and A New Beginning. All feature elements that are “understood and shared by the Chinese audience,” he says.

—Arturo Casares

Triumph of Love

TV5MONDE Asia Pacific www.tv5monde.org/asia • TV5MONDE Asie • TV5MONDE Pacifique

At CASBAA this year, TV5MONDE will celebrate 15 years of being available in the Asia Pacific. The Frenchlanguage broadcaster, which operates two feeds in the Asia Pacific, has seen its regional distribution grow by 15 percent in the past year. Alexandre Muller, the managing director for the Asia Pacific, says that Vietnam, Korea and India have driven those gains.

For 2012, Australia and New Zealand are the focus for the Pacifique feed, after two years of driving expansion in Japan and Korea, according to Muller.

“And as far as TV5MONDE Asie is concerned,” Muller says, “the goal is to keep growing both our subscriber base in untapped markets and our revenues in our existing markets.”

A strategy for growth has been subtitling. This has already been done in Japanese, Korean and Vietnamese, and “we are looking to add a few more languages in the next 12 to 18 months, as well as to further localize our channels to reach an even larger local audience with our quality programming,” Muller says.

“Our overall distribution in the region has grown by 15 percent year-on-year.”

—Alexandre Muller

Joueuse on TV5MONDE Asie

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P A N O R A M A

By Mansha Daswani

New Frontiers When News Corporation quietly sold off controlling interest in its Chinese television business last year, it marked the end of an era. Since the 1990s, Rupert Murdoch had spent a reported $2 billion trying to make headway in a market that so many saw as a potential pot of gold. Estimates are that he lost at least half that.

News Corp., like most major Western media companies, has pulled away from China and shifted its focus to friendlier markets like India. But the country of some 395 million TV homes remains on everyone’s wish list, with the rapid advent of broadband technology finally offering up some new entry points in the form of online video portals.

Earlier this year, for example, Tudou, a leading videosharing site in China, scored a deal with Disney Media Distribution to bring a number of U.S. series to the Chinese online video audience. And this summer, the Chinese Internet content platform Youku signed a deal to add between 400 and 450 Warner Bros. titles to its online premium VOD service. The three-year deal allows Youku Premium to deliver access to a host of Warner Bros. titles, including Harry Potter and the Deathly Hallows: Part 1 and the Lord of the Rings trilogy, building upon a relationship that started when Youku worked with Warner Bros. to offer online on-demand access to Inception.

The market potential is, clearly, huge, with China home to more than 364 million broadband users, according to the China Internet Network Information Center. But in a country that is notorious for piracy, asking people to pay for content is still a tough sell. Youku Premium, for example, which has been operating in beta since October 2010, has notched up just 200,000 paid transactions. While the numbers are still small,Youku’s management has indicated optimism about the changing consumer habits in China.

Announcing the Warner Bros. deal, Dele Liu, Youku’s CFO, stated, “Over the past year we’ve seen Chinese Internet users become more sophisticated in terms of what they’ll spend money on. People are increasingly willing to pay for high-quality content, and we take the growth of Youku Premium as a sign that the market is improving for paid services.”

International content providers will certainly be looking to Youku, Tudou and other sites as a new entry point in a highly gated market. As Steve Marcopoto, the president and managing director of Turner Broadcasting System Asia Pacific, notes later in this issue, “Folks like us who can’t get our content in on our channels because of regulations have the opportunity to work with licensed video-player operators. It’s not a largescale opportunity but it at least is an opportunity in a market where networks have been highly restricted from entering, other than the hotel distribution.”

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In the rest of the region, meanwhile, Turner’s channel expansion continues on pace, driven in part by the company’s investments in local content.

Indeed, the channel operators I spoke to for my annual preCASBAA pay-TV survey, included later in this issue, all stressed the importance of generating original content to boost ratings and generate new options for advertisers.AXN, for example, has acquired several international formats—most recently Cash Cab—in its original-programming strategy; Discovery, National Geographic and HISTORY are all telling local stories as they battle it out in the competitive factual landscape; and Cartoon Network has led the charge in terms of commissioning series from Asian animators. Those titles are increasingly making their way into other markets—Singapore’s Tiny Island, for example, is producing the Ben 10: Destroy All Aliens CGI movie that will have its Cartoon Network premiere globally in 2012.

Channels are also emphasizing the need to keep up with technological advancements. Universal Networks International, for example, has made HD rollouts a priority for 2012, Christine Fellowes, managing director of the Asia-Pacific portfolio, reveals in this issue. FOX International Channels, meanwhile, is exploring making some of its channels, including Star World, available online through an authenticated service.

Authentication, apps, on-demand and more take center stage at CASBAA this year under the TV365 theme. The conference agenda, says Simon Twiston Davies, the CEO of the Cable & Satellite Broadcasting Association of Asia,“reflects the evolution of the multichannel TV industry and is a fitting topic for this year’s convention, which has been designed to celebrate CASBAA’s 20th anniversary. Now, more than ever, the concept of television has evolved to encompass technologies not even dreamed of in 1991. With video content now truly transportable, consumerdriven demand and the prospect of more localization is providing a compelling story line for multichannel TV today.”

Embracing digital media is also on the agenda for Public Broadcasters International 2011, a market being held in Southeast Asia—in Singapore—for the first time in 15 years, with MediaCorp as the host broadcaster. Chang Long Jong, MediaCorp’s deputy CEO, provides a preview of what to expect from the event. In the commercial-broadcasting space, meanwhile, TV Asia Pacific speaks to GMA Network’s senior VP of entertainment, Wilma Galvante, about how local entertainent has driven the channel to the top of the ratings charts.

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Striking Asia’s biggest channel brands are luring viewers and advertisers with new original programming and digital initiatives. By Mansha Daswani The Asia-Pacific pay-TV market has reached a milestone, with 50 percent of the region’s TV homes now paying to receive services from cable, satellite and IPTV operators. The result is that the transition to digital is finally in full swing in most of the region.

“Consumers are demanding video content on multiple devices, and service providers are stepping up to address that demand,” says Simon Twiston Davies, the CEO of the Cable & Satellite Broadcasting Association of Asia (CASBAA).“The technology for delivering and monetizing TV everywhere continues to grow.While the concept of TV Everywhere is starting to pick up in Asia Pacific, it is not anywhere near as developed as in the United States, as its adoption is largely determined by the regulatory environments concerning digital rights and further complicated by viable business models and commercial considerations.”

Indeed, digital pay-TV penetration stood at just 20 percent on a regional basis last year, according to Media Partners Asia, meaning that critical mass for these advanced services is still far off. While multiscreen services are few and far between in Asia’s pay-TV space, HD rollouts have progressed rapidly, and all the major incumbent channel brands, as well as the region’s new entrants, have rushed into this space.

“We definitely see a growing appetite for HD in markets in Southeast Asia—including Hong Kong, Singapore and Malaysia,” says Sunny Saha, the senior VP and general manager for entertainment networks at Turner Broadcasting System Asia Pacific. “We are working on some HD rollouts over the next 12 to 18 months.”

Discovery Networks Asia Pacific (DNAP) was the first channel operator to go HD in Asia, launching a feed in Japan in 2005. Since then, it has rolled Discovery HD World out to Hong Kong, Singapore, India,Australia,Thailand, Malaysia and the Philippines, among other markets. “It’s taken off everywhere,” says Tom Keaveny, DNAP’s president and managing director, on the HD rollouts that have picked up speed this year. “A lot of other channels have come into the fray.”

TLC India’s Oh My Gold!

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HD is, in fact, no longer just the domain of the factual channels. Sony Pictures Entertainment Networks Asia (SPENA) has taken an HD feed of AXN into Korea, Singapore, Malaysia, Vietnam and Thailand. “We are certainly looking to make our HD channels available in more markets as well as offering HD feeds for our other brands as the opportunity arises,” says Ricky Ow, the senior VP and general manager for SPENA. “HD rollout is a priority for Universal Networks International (UNI) as part of its growth plan,” notes Christine Fellowes, the managing director for the Asia Pacific. “Further HD launches in Asia are expected in 2011 and 2012, including for E!, Style and Golf.” This will add to a bouquet that includes Universal Channel in HD in Japan, Taiwan, Singapore and Malaysia and Syfy HD in Taiwan, Singapore and Malaysia.

“The potential for HDTV is sizable given the growth of LCD sets in emerging and developed markets, and we recognize that the key to going forward is more HD channels and HD DVR services at competitive costs to the consumers,” says Mark Whitehead, the senior VP and general manager for BBC Worldwide Channels in Asia. “We are currently in talks with partners about HD propositions.”

Making channels available in HD is important to strengthening relationships with platform operators, says Zubin Gandevia, the COO of FOX International Channels (FIC) Asia. “We’re allowing the affiliates to grow their ARPU and supporting them to drive HD, which is an important strategic and financial consideration. Ultimately HD is good for our brands, too.”

Nonlinear services are next on the horizon. A number of channel operators have made on-demand deals in more technologically advanced markets like Singapore and Hong Kong.

UNI, meanwhile, has begun experimenting with airing shows on its channels’ websites.“Wherever possible we prioritize securing 360-degree content rights,” says Fellowes. “For example, in Asia Pacific, we launched the drama Fairly Legal first online a week before its on-air premiere in May 2011.We will continue to evolve our offering moving forward.”

ONLINE PLAYS

FIC is also positioning itself as an early mover in this space.

Gandevia says that the company has begun conversations with its affiliates about offering an authenticated service that allows subscribers to access channels such as Star World and Star Movies online. “Obviously we have to be careful about the piracy angle,” says Gandevia. “But it is an authenticated player. I have demonstrated it to operators in Hong Kong, Singapore, Malaysia, Indonesia, Thailand, Taiwan and Vietnam.

It’s what they have been looking for to make the consumer experience better and at the same time help stem piracy. If you have access to this you have much less of a motivation to go to a pirated website. If you can give consumers a legal way to consume our product [on other platforms], that would appear to be a great value proposition. We have to support our affiliate partners who have helped us build the business that we have today, which is a linear business. We recognize that people have changed their consuming habits to some degree in terms of wanting to watch beyond TV.” FIC is not just focusing on digital extensions of existing brands; it’s rolling out new ones as well. Over the last two years, its collection of channels delivering U.S. series has grown dramatically, with Star World and FOX now accompanied by more niche services such as FX and Fox Crime. “It’s not enough to 10/11

have just one channel, because one channel doesn’t allow you to get enough good quality content—you don’t have the scale to buy aggressively,” Gandevia says. Prior to having this portfolio, he explains, “we were getting the rights [to shows after they had already been seen on] free to air. Now we’ve been able to go out to content suppliers and do big volume deals where we can offer a lot more money because we’re now buying across four channels. And then we also get significantly better rights.

These new products first come to our channels and then go to terrestrial. It’s a complete turnaround.”

Gandevia says that a similar strategy is being employed in the movie category. Building upon the well-distributed Star Movies, FIC has launched Fox Family Movies, and there are more services to come. “We will probably have three to four movie channels, [each] with a very clear brand proposition.”

STRENGTH IN NUMBERS

UNI, too, touts the benefits of having a portfolio, particularly now that the division has assumed responsibility for the former Comcast brands E!, Style and Golf. “We leverage the strengths of our channels to create a more dynamic environment for our viewers,” Fellowes explains. “For example, by leveraging E! News Asia, we started cross-channel promotions on E! and DIVA for DIVA’s key programs, Fairly Legal and The Good Wife. E!’s tentpole series, Keeping Up With The Kardashians, was also heavily promoted on DIVA for its launch phase. Cross-channel promotions are an effective marketing tool for us and provide advertisers with a powerful solution to reach the female audience.”

SPENA has also amassed a portfolio over the last few years, with AXN Beyond, SET and ONE joining the already welldistributed AXN and Animax. Turner, meanwhile, has spent the last 18 months taking truTV to a number of markets, joining its Cartoon Network, CNN and TCM pan-regional brands.

At A+E Networks, which has rolled HISTORY out across the region, there are early discussions about importing other brands, including Lifetime, to Asian audiences. “We’re a young business—it’s critical that we build out our fleet of brands and own that full spectrum of audiences,” says A+E Networks’ managing director for the Asia Pacific, Alan Hodges.

Taking on the well-established tenants of Asia’s pay-TV real estate are several other more recent entrants to the market.

Scripps Networks International, for example, launched its first

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Paying tribute: A+E Networks’ HISTORY channel has renewed its Southeast Asian original series Hidden Cities for a second season.

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BBC Worldwide Channels also used its brand recognition as a selling point when it landed in Asia in 2007. The past year, in particular, has been a positive one for the BBC portfolio, notes Whitehead, who cites “robust growth” in a number of segments. BBC Lifestyle and BBC Knowledge now have companion catch-up VOD services in Singapore. CBeebies added the Philippines to its distribution base of Singapore, Hong Kong, South Korea, Malaysia, Indonesia and India. And a BBC Entertainment feed has launched specifically for the Indian market.

PASSAGE TO INDIA

New home: FOX in Asia has been scoring the first-run rights to buzz-worthy U.S. dramas like Terra Nova.

service in the region, Food Network Asia, just a year ago. “It’s been a good first year,” says Hud Woodle, the channel’s acting general manager.“We’re really happy with the launch in four territories:Taiwan, Singapore, Malaysia and the Philippines.We’ve got more to come in the near future.”

Woodle says that Food Network Asia is using a variety of methods to build the brand, including working with StarHub in Singapore on its FooD.I.Y. app and its Hubalicious live event.

This year, Food Network Asia also rolled out its first regional commission, A Culinary Coup:The Launch of Ku De Ta, going behind the scenes of the opening of the restaurant atop Singapore’s Marina Bay Sands hotel.

BRAND AWARENESS

It has been two years since AMC/Sundance Channel Global began its conversations with operators about taking its portfolio to Asia. For Ed Palluth, the senior VP of global distribution, Sundance Channel and WE tv were ripe for global expansion.

“When you mentioned Sundance Channel, everyone knew what it was or was very close to knowing what it was without a long sales pitch. The brand is trusted and there’s nothing else quite like it in the industry. On the WE tv side, we realized that women’s programming is a very underserved market. We do a terrific job of programming the channel [in the U.S.] and it was very easy to take that programming and bring it out globally.”

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Channel operators across the board agree that India is one of the markets in Asia that does require a particularly focused approach. A+E Networks, for example, has a joint-venture partnership with Network18 Group to launch HISTORY and other brands into the territory.

“We expect to launch HISTORY to north of 40 million subscribers,” says Sean Cohan, A+E’s senior VP of international.“That story is not just about numbers, it’s about a level of ambition that we have for that channel.We aim to be the leading factual channel and help our peers grow factual viewing in India. We’ve been hard at work over the last six months on the distribution front, the sales front and the programming and marketing front to develop a proposition that we feel very good about.”

HISTORY is certainly keen on a highprofile launch in India; it has lined up the Bollywood icon Salman Khan to host a show on the channel.

HISTORY’s factual-programming rival Discovery, meanwhile, has its own big plans for India. In addition to operating a fleet that includes Discovery Channel, Animal Planet, TLC, Discovery Science, Discovery Turbo and Discovery HD World, DNAP has applied for five additional broadcast licenses in the country. The key to Discovery’s success in India has been its local-language strategy, delivering its flagship service in English, Hindi, Tamil, Telegu and Bangla. “It’s an enormous market that is growing at a tremendous rate,” says Keaveny.

Turner has also been stepping up its efforts in India, last year acquiring the general-entertainment channel Imagine. That joined the kids’ services Cartoon Network, Pogo and Boomerang, and the movie channels WB, Lumiére and TCM. And it’s not just in India that Turner has single-market brands—the company owns the female lifestyle network QTV in Korea and the Japanese channels MondoTV and Tabi.

Many executives see country-specific feeds and dedicated channels as “the next big development in our business,” as A+E Networks’ Hodges puts it. And that’s not surprising, given the huge potential to tap into the strong local ad-sales growth rates in several markets.“Everybody is having a really strong year on the regional ad market,” says Hodges. “It’s very robust. But the big story still remains the growth in individual markets in local ad sales.”

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well with its U.S. originals like Bridezillas and Joan & Melissa: Joan Knows Best?

Woodle at Food Network Asia notes that American personalities like Ina Garten, host of The Barefoot Contessa, and Guy Fieri of Diners, Drive-ins and Dives, have been connecting with local viewers. “I think the personalities just click—it’s engaging television.” On the horizon are more originals following the success of A Culinary Coup: The Launch of Ku De Ta. “We are making plans for 2012,” Woodle says.

ORIGINAL FOCUS

Style diva: Kimora: Life in the Fab Lane airs on The Style Network, part of the newly enlarged Universal Networks International portfolio.

out local feeds. “For seven or eight years, our advertising was 80 or 90 percent pan-regional and 10 to 20 percent local.

That’s completely inverse now. The pan-regional is still growing. And we’ve seen strong growth in the key markets: India, Australia, Taiwan, Japan. It’s an exponential factor of more feeds, more networks, more languages, larger audience; it creates this circle of growth for us.”

FEEDING THE AUDIENCE

At FIC, too, Gandevia has seen gains in both pan-regional and local ad sales thanks to a local-feed approach. “We launched 11 feeds in the last year. Those are now paying off for us because as a result we can customize offerings to the consumer by getting better rights for programs, localizing the channel, and ultimately that drives better brand resonance and better ratings.”

Regardless of local feeds, though, channel operators stress that access to top-quality, brand-defining content has to be at the heart of any strategy to boost ratings, revenues and reach.

Whitehead at BBC Worldwide Channels points to BBC Knowledge’s coverage of the royal wedding as a particular highlight this year. “In Singapore, BBC Knowledge climbed to become the number one English-language pay-TV channel in Singapore during the coverage.The channel registered an eight fold increase in average viewing figures for the time slot.

William and Kate: A Royal Love Story, which premiered first and exclusively on the channel immediately following the live coverage, was the channel’s highest-rated program this year.”

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Well advanced on the original-programming front is SPENA, which was one of the first pan-regionals to get into the format game when it rolled out an Asian version of The Amazing Race.

Noting that AXN has kept its position atop the generalentertainment heap with imported tent poles like the CSI franchise, Hawaii Five-0 and the recently acquired The Voice, Ow says, “The next steps for AXN are ensuring that we continue to secure great content and localizing already popular content to grow viewership. Increased viewership will translate to greater revenue, and that will in turn enable us to invest further in AXN.” A new development at AXN has been signing on as a coproducer on international projects, notably the Entertainment One and Paramount Pictures co-venture The Firm. AXN has also announced a pan-regional version of Cash Cab, which will premiere in the fourth quarter. For India, meanwhile, AXN adapted the international format Minute to Win It, with season two in the works, and it is launching a lifestyle magazine series called Men 2.0.

The other side of SPENA’s localization strategy is seen in ONE, a 24-hour channel delivering Korean content. “The response to ONE has been overwhelmingly positive,” says Ow. “Korean pop and entertainment are very popular in Asia at the moment, and the ‘K-wave’ is showing no signs of abating.

In fact, the phenomenon is not only delivering strong ratings on local terrestrial channels but also seems to be making inroads in Europe and even the U.S., with Korean superstar Rain having broken into Hollywood.We saw this as an opportunity to offer a 24-hour Korean entertainment channel that is localized for individual markets and designed to appeal to local viewers.”

FIC also has a Korean entertainment channel that it is rolling out, called tvN. At its primary networks, meanwhile, while U.S. series acquisitions remain the core proposition, there are several original programming initiatives in the works. Together with its sister operations in Europe and Latin America, FIC is a partner on the The Walking Dead, which is heading into its second season. “We’re also looking at productions locally, because we do believe that even on a channel like Star World, which is predominantly Hollywood product, it is good to have some local content because it helps to bring the channel closer [to viewers],” says Gandevia.

FIC is working with Astro in Malaysia on its local version of the Shine format MasterChef. The adaptation will air first on Astro Ria, while Star World regionally will broadcast a recap of the week’s episodes. Star World will also get the first window on MasterClass, a sister show in which the MasterChef contestants receive tips from celebrity chefs. “That’s a great example of us getting into local production but also working closely with a key partner and helping drive each other’s business and ultimately bringing value to the consumer,” Gandevia says.

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Hitching a ride: AXN has expanded its original-content slate with an Asian version of the hit format Cash Cab.

FIC has also worked on a magazine series in the Philippines called Behind the Bylines and has invested heavily in local content for its National Geographic brands.

Indeed, the factual channels were the first pan-regionals to make a real commitment to working with Asian production companies. Both Nat Geo and Discovery have developed various initiatives across Asia to support emerging documentary filmmakers. HISTORY, meanwhile, has rolled out several locally produced titles for its Asian channels, including Hidden Cities, which has been renewed for a second season.The success of the show, says Hodges, “speaks to the value of creating programming that people in each of our key cities can identify with.”

In the kids’ content space, Cartoon Network has made a significant commitment to the regional animation sector.Turner’s SNAPTOONS initiative has supported budding Asian animators since 2006. Held in Australia, India, Malaysia and Singapore, SNAPTOONS has generated several ideas that were eventually developed into full series for Cartoon Network. The broadcaster also works with established animation houses across the region to generate animated series with Asian story lines.

advertisers about the value of our audiences and the unique content we have.”

SPENA’s Ow identifies three key concerns: signal theft, a slower-than-expected growth in digital pay TV, and the emergence of new-media distribution platforms. “Rights owners [need] to work closer with networks like ourselves to ensure that [new distribution models] do not create an adverse impact on the existing ecosystem and still deliver a win-win scenario, for viewers, networks and the program distributors.”

Those issues, and more, will be on the agenda at this year’s CASBAA Convention, which is also celebrating the 20th anniversary of the industry body. “When a half dozen young executives from Asia’s nascent pay-TV business gathered in a Hong Kong bar in the spring of 1991, there was only a vague idea of what a regional industry association dedicated to pay-TV might achieve,” says Twiston Davies. “Nobody guessed that two decades later Asia’s pay-TV industry would encompass some 10,000 TV channels, 25,000 cable and DTH operators, $45 billion in annual revenues and 365 million pay-TV homes reaching over a billion consumers.”

So where will we be a decade from now? According to Media Partners Asia, by 2020 the industry will generate $78 billion in revenues derived from services reaching a whopping 570 million customers.

TOONING IN

“We have much more kids’ content in production than any of the other regional broadcasters,” says Saha. “We are truly committed to supporting the local animation industry in this region. We are now seeing the traditional model of importing content to Asia being flipped. Increasingly original content conceived in Asia is being exported. Arjun and the Adventures of the Ice Lotus was developed and premiered in India but it was also broadcast across markets like Taiwan.

The biggest project we have, the Ben 10: Destroy All Aliens 3D CG animated TV movie, is going to be a global premiere. We are working on it with Tiny Island in Singapore.

It will premiere in March globally.”

While the growth prospects are tremendous, channel operators caution that there are hurdles to overcome. For new and established brands, one challenge, and opportunity, remains getting a bigger slice of the ad pie in markets where terrestrial still dominates.“Multichannel television is growing at a tremendous rate,” says DNAP’s Keaveny. The industry as a whole, he says, “needs to be better at telling our stories to media agencies and 468

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Cooking up a storm: In its first year in Asia, Food Network has found success with U.S. originals like Barefoot Contessa.

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By Mansha Daswani

Since bringing CNN and Cartoon Network to the Asia Pacific in the ’90s, Turner Broadcasting System has dramatically expanded and diversified its regional business. Once a company focused on importing international content to Asia, Turner has spent the last few years acquiring locally originated channel brands, including MondoTV in Japan, QTV in Korea and Imagine TV in India, and rolling out localized feeds for flagship services like Cartoon Network. Steve Marcopoto, the president and managing director of Turner Broadcasting System Asia Pacific, discusses the importance of investing in local content and weighs in on the challenges of working across the region’s widely divergent markets.

TV ASIA PACIFIC: TV Everywhere is a priority for your parent company in the U.S. What kinds of opportunities are you exploring for Turner’s content on new-media platforms in Asia?

MARCOPOTO: TV Everywhere is top of mind in the States and it’s been a big development that our parent company’s been involved with. It’s a much different story out here, and it’s largely because of the different dynamics in this marketplace. Asia has never been a single market. As it’s grown and developed, and pay TV and digital platforms have grown over the last ten years in particular, it’s less of a single market than it ever was.That impacts so many elements of our businesses, and one of them is this whole

Turner Asia Pacific’s

Steve Marcopoto

over-the-top phenomenon. In the States, it’s very much an industry content-led initiative in partnership with the platforms. Out here, it’s a piecemeal application and almost early-stage experimentation with just a couple of platforms.That goes back to the market not being a contiguous one, with a couple of mega platform operators.The other thing has to do with the piracy issues that have prevented everybody from Apple to Netflix from putting their content up online [in Asia].

As a broad concept we are happy to transfer our know-how, our technology, and have early-stage conversations with people.There’s a possibility in a market like China, where you don’t have linear television services from international [companies] at this point, that this presents an opportunity. Folks like us who can’t get our content in on our channels because of regulations have the opportunity to work with licensed video-player operators.Tudou is now starting to do deals with studios.You know about the highly publicized Youku deal with Warner Bros. It’s not a large-scale opportunity but it at least is an opportunity in a market where networks have been highly restricted from entering, other than the hotel distribution.

TV ASIA PACIFIC: Do you think that some platforms will leapfrog the cable VOD model directly to offer content online and on portable devices?

MARCOPOTO: Our experience so far has been that the classic linear bundle pay-TV offering still seems to be the bedrock of the proposition. I don’t think it’s mutually exclusive in terms of the development of apps and content that’s rolling out for them.

We do know that from a penetration and usage perspective,Asia is far ahead of the West in specific markets in terms of mobile usage and mobile applications, so there’s probably going to be a fair bit of opportunity there. But again, generally we’re seeing that develop at uneven paces.You can look at India, a highly under-declared [subscriber] market that is not even fully digitized yet on the cable side. Meanwhile, in Hong Kong, if you look at now TV with their IPTV offering, it’s rolled out fast, to a degree it almost did leapfrog the incumbent [cable operator] in the sense of technological applications that they brought to the market, and they have a pretty robust VOD suite. We did a Cartoon Network VOD product with them. We have to be opportunistic and work with customers on a market-by-market 470

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basis. On the one hand you’re dealing in a market which has a very leading-edge sensibility to it, on the other hand, you’re in a place that’s 20 years behind in the shape and the form of the business.

And others are in between.

TV ASIA PACIFIC: Given increased competition,

how do you maintain and increase your slice of the ad pie, both pan-regionally and on the local level?

MARCOPOTO: You have to do a lot of things simultaneously. Our core proposition on the news side was always pan-regional CNN.The pan-regional business has remained very robust, and that has been for a number of reasons.We’ve had the foundation of our core advertisers that have been partners with CNN for many years—luxury goods, airlines, tourist boards, banks, technology companies. On top of that you see new emerging brands coming out of India, you’re getting cities in China that are promoting economic development and investment, much in the ways that places like Malaysia and Singapore used to do in the ’80s. Korea has really hit its stride as a first-world market of leading brands.

Japan has snapped back remarkably from where they were off the back of the tsunami and earthquake. All in all, we’ve had a really good run on the pan-regional business.

The other side of our business is the entertainment channels, which tend to be much more locally focused.These range from our suite of Cartoon Networks to our movie channels and our local channels in Japan and in Korea.The models for these all vary, but generally they’re all basing off of high growth rates in these individual markets, with the exception of Japan, which has a very modest growth rate and a pay-TV market that is really underdeveloped in terms of advertising.

Singapore, Hong Kong, Malaysia, Thailand, basically the ASEAN or Southeast Asian markets, each one of those is about the size of an American city—you’re not going to see a great scale there. But if you roll them up together, you have a good story to tell advertisers.

Off the back of that we’ve developed a new department called Turner Media Solutions for our entertainment portfolio. We’ve got 12 channel brands across the market, in nine languages approaching about 300 million households. [The new] in-house agency group can cater to advertisers’ needs across the region with a 360-degree approach.

India is a stand-alone market, scalable like Japan but the absolute opposite in terms of the Japanese model in that it’s all advertising driven—there’s very little distribution [revenue]. In India, you have a full-on, almost U.S.-network type of ad-sales proposition to make, complete with upfronts and meaningful ratings.

The overall driver dynamic is that Asia Pacific is a market with very robust growth rates across the board. It’s just that different models need to be used in various markets.

Digital is an increasingly important part of Turner’s overall advertising growth strategy as clients become more comfortable with investing in the digital space. Currently 75 percent of CNN’s advertising spend by clients includes a digital component; with 60 percent for our entertainment channels.

The 30-second ad is now just a component of more holistic campaign solutions to engage audiences—on whichever screen they’re viewing.

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TV ASIA PACIFIC: What led to Turner evolving from a busi-

ness that was importing international brands to one that is building and rolling out Asian-originated brands?

MARCOPOTO: We’ve been executing that for quite some time now. It was quite obvious, going back to the nature of this marketplace and the growth of individual markets, that we needed to move quickly to start to cater to different tastes, cultures, languages. That’s very much been the driving principle for us for some years now and the main strategy for growth of the business. We know that we’ve got great brands to build local businesses on. We know that the basis of a local business goes beyond local language. It’s not just a translation, it does come down to the nature of the program that you’re going to put on a particular channel, the manner in which you schedule it and also marketing and promotion and the like. Essentially we know that deeper penetration in the markets is going to rest on localized product, and a large piece of that is original production. The business that we do in Japan on [our channels] Tabi and MondoTV and to a lesser degree on CNN, if you roll up all those hours that we produce, we’re the largest foreign producers of local content.

What we produce in India is going to grow, for Pogo, for Cartoon, where we do original animation, and for Imagine, where we do, right now, three to four hours a night of dramas; it’s more original content than we’d do in North America on a TNT or a TBS. So we’re going long and deep on original content, which is what’s going to drive this strategy of taking the global brands and applying them locally. That’s going to go across the board for everything from established brands like Cartoon Network to new emerging brands of ours like truTV. TV ASIA PACIFIC: A lot of companies have rushed to roll

out in the Asia Pacific over the last few years. Do you think some have unrealistic expectations about the potential returns?

MARCOPOTO: There’s often a difference between headlines and bottom lines in Asia Pacific.The regional numbers trumpeted often include markets that are inaccessible for various reasons. It can be a different story when you net those out.

And costs are escalating dramatically. It’s not the slam-dunk the numbers might seem to indicate.

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Asian base: From its Asian headquarters in Hong Kong, CNN International produces the daily newscast World Report with Anna Coren.

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When NBCUniversal and Comcast International Media Group consolidated their Asian operations earlier this year, the job of running the merged channels division went to Christine Fellowes. The longtime head of Comcast’s Asian business, Fellowes, as managing director of Universal Networks International (UNI) for the Asia Pacific, is now in charge of a portfolio that includes Universal Channel, DIVA Universal, Syfy Universal, E! Entertainment Television, The Style Network and Golf Channel. She shares her strategy for further expansion of UNI’s regional business with TV Asia Pacific.

are able to deliver quality content for the highly coveted demo of [upscale] female viewers, and, in turn, offer advertisers one unified platform to connect with this target audience.

There is a great advantage in working with a diverse bouquet of channels, as we are able to reach a wide spectrum of audiences on multiple touch points.

TV ASIA PACIFIC: What are UNI’s plans for making con-

tent available on additional platforms?

FELLOWES: We know that pay-TV viewers want to watch

By Mansha Daswani

TV ASIA PACIFIC: How has Universal Networks International benefited from the addition of the Comcast channels?

FELLOWES: Universal Networks International has cemented its position as an entertainment powerhouse with the addition of E!, Style and Golf to its bouquet of brands. With the addition of two more female-focused channels, E! and Style, we

Universal Networks’

Christine Fellowes

great content where and when they choose, and it’s a priority for UNI to offer that to consumers. Wherever possible we prioritize securing 360-degree content rights to make our channel brands available on multiple platforms.

For example, in Asia Pacific, we launched the drama Fairly Legal first online on DivaUniversal.asia a week before its onair premiere, in May 2011. We will continue to evolve our offering moving forward.

TV ASIA PACIFIC: What are you doing in terms of original programming across the portfolio?

FELLOWES: We have strong original and first-run programming to complement our channel proposition. Original programming will continue to be a focus for Universal Networks’ investment. We have invested in top quality coproductions and originals: Haven, Fact or Faked: Paranormal Files, Rookie Blue and Fairly Legal. E! Entertainment Television and Style also have signature original content that resonates with their demos. E! brings first-run and exclusive originals such as E! News, E! News Asia, Live from the Red Carpet, Fashion Police and Keeping Up with the Kardashians.

Style [offers] to its female audience original content focused on fashion and relationships, such as Giuliana & Bill, Clean House, Jerseylicious, Kimora: Life in the Fab Lane, How Do I Look? and Whose Wedding Is It Anyway?

TV ASIA PACIFIC: What are your broad priorities for the

next 12 to 18 months?

FELLOWES: One of the goals for the international division of

NBCUniversal is to build a cohesive TV business that operates efficiently across all of our channel brands. Our priority is to effectively utilize the scale created by combining the NBCUniversal assets with Comcast’s assets to grow our Asia-Pacific business.

Distributors today require high-quality cost-efficient channels with brands that are clearly identifiable and unique to pay TV, but available across multiple platforms. With our combined assets we believe NBCUniversal is uniquely positioned to deliver these requirements. We benefit from understanding the business equally from a distributor’s perspective and a content provider’s perspective. We’ll focus on turning these advantages into stronger relationships with operators across the Asia-Pac region and the rest of the world.

TV ASIA PACIFIC: You’ve launched Universal Channel HD

and Syfy HD in several markets. Do you envision additional feeds or channels this year?

FELLOWES: HD rollout is a priority for UNI as part of its growth plan. Further HD launches in Asia are expected, including for E!, Style and Golf. We’ve just completed the launch of E! in the Philippines and HD channels in Singapore on StarHub. 472

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The first half of this year has been a positive one for the Filipino free-to-air giant GMA Network, with double-digit ratings gains at its flagship entertainment channel GMA-7. The broadcaster has been able to drive ad revenues upward after rising to the top of the National Urban Television Audience Measurement ratings, ahead of arch rival ABS-CBN. As the senior VP of entertainment, Wilma Galvante is responsible for the locally developed series that are driving GMA-7’s ratings improvements. A longtime GMA executive, Galvante, a former producer, pioneered the so-called “telefantasys” that have been huge hits for the network. She tells TV Asia Pacific about her approach to developing new Filipino soaps as well as adapting novelas and entertainment formats from the international market.

By Mansha Daswani

which guides my input in the programming decisions made for GMA. Actually, even in my current position, I still make sure to have a hand in the production work of our major programs and provide the broad strokes for different shows.

TV ASIA PACIFIC: GMA’s fantasy series have sold well in

territories in Asia and the Middle East. Why did you first choose to introduce these series to the GMA schedule?

GALVANTE: Fantasy is actually only a device—to add to the visual color. The substance is still in the drama, which I believe has a universal appeal. The basic formula of drama appeals to the core of the viewers across Asia and the Middle East. The fantasy element adds texture and dimension to the storytelling.

TV ASIA PACIFIC: What is your overall entertainment pro-

gramming mandate at GMA Network?

TV ASIA PACIFIC: GMA has adapted several Korean and

GALVANTE: One of our core values is that we believe that the

Mexican soaps. How do you go about remaking these shows for Filipino audiences?

GALVANTE: We do not just copy the stories from the originating series, we infuse the adaptation with Pinoy [Filipino] taste and even humor. Since the adaptations we have made are those of series that were huge hits in their dubbed form, it is this additional effort that is required to make sure that the original hit series would remain fresh to the local viewers even as we adapt it to the Filipino audience.

viewer is the boss. To ensure the delivery of superior entertainment to our TV viewers, we have to know what they want to watch, who they want to see and how they want to be entertained.We endeavor to find out the public’s pulse and try to find out the heartbeat of our viewers, hence, our Kapuso brand of being “one in heart” with our audience.

GMA’s

Wilma Galvante TV ASIA PACIFIC: You are credited with introducing many changes to GMA’s entertainment lineup. What was your approach to improving the network’s ratings?

GALVANTE: I have always adhered to the value of teamwork. I handle a team of highly creative people for a variety of mainstream and alternative genres, so I lead them to the right direction, encouraging them to search for breakthroughs, those never-before-done programs.

My group also interacts with other arms of the network that provide input for our different programs.

TV ASIA PACIFIC: How important are talent shows and other forms of variety entertainment to GMA? GALVANTE: We feed a constant hunger from the audience for fresh talent—new faces that viewers can idolize. Talent-show formats allow us to discover and hone potential stars. Many of our big stars now are products of singing contests that we have produced through the years. Talent shows are two-pronged in that you create content and enrich your roster of homegrown talent as well.Variety shows, on the other hand, are employed to showcase the diverse talents we have in our stable.

TV ASIA PACIFIC: What do you look for in international formats when determining if something will work well for GMA viewers?

GALVANTE: Primarily, we come in with open eyes for what is new and available in the market. We make sure to put on lenses with the Filipino taste in mind, with our target market always at the back of our head. And of course, we also read how it performed in other countries and ask our international contacts about these foreign formats.

TV ASIA PACIFIC: Your shows have launched the careers of

many Filipino stars; what do you look for when casting?

GALVANTE: With my years of being in the business of

TV ASIA PACIFIC: How

important has it been to have production experience in your programming position?

GALVANTE: With every new production, it is experience that gives you the pulse of what will click. My production work has allowed me to understand what the viewers appreciate, 474

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entertainment television production, I am someone who can tell if a talent has potential. Of course the initial take will have to be based on looks and how the person’s face registers with the cameras. With auditions and casting, I make sure to look for talent and charm. Sometime you just feel it, that X factor. But for casting into specific roles, we consider star value of the artist, how appropriately the talent matches the role.We also look for chemistry between two people when, for example, we need to cast for a [couple in love], to make sure that they will hit it off right.

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