ATF Special Report: Suited to Asia

Several leading distributors talk to Mansha Daswani about acquisition trends across the Asia Pacific in the run-up to Asia TV Forum.

Content investments in seven Asia-Pacific markets rose by 4 percent to $15.5 billion last year, according to a recent study by Media Partners Asia (MPA). That rate marks a significant slowdown from 2021 and 2022 amid a global reset of streamer budgets. India led the content gains with a 12 percent boost, primarily driven by sports, with Indonesia at 5 percent. Korea, the Philippines and Thailand reported modest gains, while content spend fell in Malaysia and Vietnam. At a time of diminished content expenditures worldwide in the era of post-peak TV, we’re not on track to return to the boom years, but there is plenty to feel optimistic about in the run-up to Asia TV Forum, numerous distributors attending the market in Singapore told me for this piece.

MPA’s 2024 Asia Video Content Dynamics report, which tracks content investment, engagement and viewership across TV, VOD and theatrical in India, Korea, Indonesia, the Philippines, Singapore, Thailand and Vietnam, has good news for Asian IP owners. Demand for content from the region continues to boom across the continent.

At present, Asian content is dominated by Korea and India, which accounted for 80 percent of all local content investments in 2023. Going forward, Korean growth is expected to be flat as streaming and film gains will be offset by reductions in TV investments. India, however, still has significant growth potential, with its local content spend expected to top Korea’s by 2026.

Across the seven markets, MPA anticipates a 2.7 percent CAGR gain in content investments to reach $17.2 billion by 2028, driven by India, and Indonesia and the Philippines to a lesser extent. MPA projects “limited” gains in Korea and Thailand. Vietnamese content investments are expected to be challenged due to a weak ad market and piracy.

Free-to-air still leads in local content investments, accounting for 64 percent of spend in 2023, with streaming at 26 percent and film at 10 percent. TV will still be at more than 50 percent in 2028, with streaming rising to 33 percent.

Stephen Laslocky, MPA VP, noted: “Korean content continues to lead the pack with world-class production values and compelling storytelling, though we’re seeing online original content costs inflate to as much as $7 million per episode. Its extraordinary appeal is evident, accounting for over 30 percent of content demand in Southeast Asia and Taiwan. The rise of streaming has significantly elevated storytelling and production quality, particularly in Thailand and Indonesia, where competition is intensifying. We’re seeing content from these countries, especially Thai titles, gaining traction across Asia.”

Laslocky continued, “It’s become clear that many traditional TV drama producers are struggling to compete with higher-end streamed video content. In contrast, quality film producers have embraced the flexibility of streaming and adapted with greater ease. Over the past year, as some ad revenues have permanently shifted to digital and streaming behavior has become entrenched, we’ve observed TV production margins contracting across most markets. For online originals, streamers have become much more disciplined in their approach to budgeting and content strategy.”

STUDIES IN ADAPTATION
Formats—scripted and non-scripted—are proving to be welcome solutions for disciplined programmers in these challenging times.

“In India, formats have been exceptionally strong for us,” reports Sabrina Duguet, executive VP for the Asia Pacific at All3Media International. “We’ve seen high demand for both scripted and unscripted formats, with seven scripted format adaptations, five more in development, and several unscripted format adaptations, including the recent announcement of The Traitors for Prime Video” in India.

Duguet references a “noticeable rise in demand for unscripted formats,” thanks in large part to the global success of The Traitors, “alongside fresh launches like The Anonymous for NBCUniversal in the U.S. and Buy It Now, which has been a success for both Channel 4 in the U.K. and recently commissioned by Prime Video in the U.S.”

Unscripted formats are selling well for Nippon TV across the region and worldwide, according to Sayako Aoki, head of scripted formats at the Japanese media giant. “Our unscripted formats are acclaimed for their bold concepts and scalability for budgets big and small. Recently, the Mongolian version of Old Enough! was produced. Silent Library, produced by Nippon TV in association with Yoshimoto Kogyo, also got licensed anew in Europe, adding to its list of adaptations in over 20 countries. Indeed, Nippon TV unscripted formats, both new and enduringly popular, are capturing attention.”

SCRIPTS FOR SALE
Nippon TV is similarly seeing strong traction for its slate of scripted formats, Aoki adds. “Scripted formats continue to propel our sales in Asia. This year, Mother, the most exported format in Asia, was adapted in Mongolia and the Philippines, with the latter slated to stream on Prime Video beginning in November. What’s more, Love’s In Sight! in Malaysia and Homeroom in Malaysia and Thailand were licensed and produced locally. Secret Makeover, our latest drama series, is a mystery-solving suspense with elements of revenge and suspicion reminiscent of telenovelas. Immediately after announcing it at MIPCOM, we received inquiries from European and Middle Eastern buyers. Viewers in Asia have an appetite for stories with thrilling twists that entice them to think like detectives, and we are confident that Secret Makeover satisfies their demand.”

All3Media International also has a compelling story to tell when it comes to scripted format adaptations, Duguet explains. “Scripted formats remain incredibly successful across much of the region for the Asia team, and we’re thrilled to have several new adaptations set to be announced soon,” Duguet says. “While the first half of the year saw some delays in production and commissioning, we’re now witnessing strong momentum in Q3 and Q4 as many of our scripted formats in development are moving into production or are about to get released. Local versions of our formats have been well-received; for instance, Kafas, the Indian adaptation of Dark Money by The Forge for Sony LIV in India, won several awards this year.

ON TAPE
While formats are helping broadcasters and platforms mitigate risk when it comes to their original content expenditure, tape sales remain a vibrant opportunity for distributors of all kinds attending the market this December.

“This year, we have maintained a consistent presence across the islands in the Pacific, ensuring our content remains accessible and relevant in those markets,” says Rochella Ann Salvador, assistant VP of the Worldwide division at GMA Network in the Philippines. “Negotiations are underway with our long-standing partners in Malaysia and Indonesia, where we aim to reinforce and expand our collaboration. Additionally, we’re excited to be in talks with new partners in Vietnam and Mongolia, reflecting our commitment to broadening our reach across Asia and bringing GMA Worldwide’s content to new audiences.”

Pelin Koray, senior sales, acquisition and strategy manager at Inter Medya, is encouraged by the interest in Turkish drama series from key Asian markets, notably South Asia, she explains. “Besides the Turkish drama DNA that captures a wide audience, we believe that Turkey and South Asia’s cultural and social similarities are behind this demand. We have closed deals for Last Summer in India and Vietnam, and we are also in talks with Bangladesh. On the other hand, our best-selling title Bitter Lands has big potential; licensed in 80 countries worldwide, it is a strong love story, and I’m glad to share that it has become the most-watched content in more than seven countries. We are in talks with India and the Philippines for the broadcast of the show. Recently, we also had effective meetings with Indonesia; even though Indonesia is mostly focused on local content, several parties are interested in our new drama series Valley of Hearts.”

PLAY TIME
The kids’ sector, while challenged globally, is also offering opportunities for content owners at ATF. “Like in other regions, we’ve observed a growing demand for well-established IPs with proven success,” says Frédéric Gentet, head of sales at Mediatoon Distribution. “Furthermore, there is a stronger interest in 3D-animated shows in Asia. Since Mediatoon has one of the largest animation catalogs in Europe, including a broad range of styles and techniques, we are confident with our lineup, including the new 3D adaptations of The Marsupilamis and SamSam.”

Tape sales have been strong for All3Media International in Japan, Hong Kong, China and Korea, Duguet explains, “particularly of our premium dramas and thrillers, such as Joan starring Sophie Turner, returning detective series such as Midsomer Murders and high-octane thrillers like The Tourist and Trigger Point, which has had a third season commissioned. Southeast Asia offers a balanced mix of premium factual and natural history programming, with titles such as Parenthood holding significant appeal, but also travel series like Travel Guides, science programming like Lion TV’s Irresistible: Why We Can’t Stop Eating, current-affairs factual titles like 72 Films’ Trump: The Criminal Conspiracy Case and HOYO Films’ Ukraine: Enemy in the Woods, alongside a range of scripted and unscripted formats.”

While not facing the same seismic shifts taking place in the U.S. and Europe when it comes to content expenditure and viewing habits, Asia is still dealing with many of the broader issues at play in the global media sector. Awareness of those concerns is critical for content owners working with their clients in the region.

“Many clients across the Asia-Pacific region are currently approaching their acquisition strategies with increased caution due to macroeconomic pressures,” says Salvador at GMA. “According to Ampere Analysis, budget tightening has led streaming platforms and broadcasters to prioritize a more strategic acquisition of content, focusing on local-language productions and proven genres that can maximize viewership on a budget. In addition, global economic shifts have led clients to pursue partnerships or bundled packages, which help them manage costs while maintaining a diverse content library.”

Mediatoon’s Gentet expresses a similar sentiment: “We’ve noticed increased caution in decision-making, even regarding acquisitions of completed shows. With shifts in demographics, evolving habits among young audiences and a decline in advertising investments, the animation market is undergoing a significant transformation. As a result, broadcasters are prioritizing established brands. However, there is still room and interest for original concepts with innovative art direction and captivating storytelling. Our upcoming production Belfort & Lupin, produced in 3D with a 2D aesthetic, responds to this demand.”

Gentet, addressing differing needs across broadcast and streaming, adds, “In Asia, local players are sometimes more open to new IPs than global streamers. Thanks to their support, we can launch new titles in the region. Besides that, we have noted a growing interest from traditional broadcasters in acquiring more comprehensive rights packages, particularly for AVOD and FVOD exploitation. The lines between linear broadcasting and streaming are becoming increasingly blurred, especially regarding children’s content.”

STREAM SAVVY
Asked about contending with shifts in the streaming economy, Nippon TV’s Aoki notes, “Given the many choices available, we are looking for the optimal way to coexist with the various streamers as we aim to maximize the value of our content. The methods to accomplish this continue to increase, such as simultaneous broadcast and streaming on a domestic platform, offering titles non-exclusively across multiple domestic streamers, and making available new dramas and a large archive of dramas to a global player for worldwide streaming. We at Nippon TV took the strategy of streaming our dramas on a global platform immediately after they are broadcast in Japan, which has proven successful.”

GMA’s Salvador points out that strategy changes at the global streamers “have deeply impacted content sales and distribution businesses in the Asia-Pacific region. Key areas of influence include content selection, local production, exclusivity and content licensing.”

Salvador continues, “Global streaming strategies have reshaped the Asia Pacific’s content ecosystem by increasing local investment, intensifying competition and elevating content standards. These shifts create both opportunities and challenges. Local distributors now have greater chances to supply region-specific content that appeals to audience preferences. However, adapting to the growing competition for exclusives and high production values has become essential, especially as global platforms increasingly focus on market-specific strategies and exclusive licensing, pushing up costs and intensifying demand for quality content.”

Duguet at All3Media International has found that the region’s streaming platforms “prioritize localized content—either through local productions or acquisitions that resonate with their specific audiences. Following this, they seek regionally relevant stories, and finally, they look for international productions, especially those featuring well-known talent or themes with broad appeal. There have also been fantastic formats opportunities with the streamers, at a local and regional level. Several of our current productions for our formats are for streamers in the region on the scripted and unscripted sides.”

LOOKING UP
On what’s ahead for 2025, meanwhile, Duguet expects “an active year with multiple formats currently in development and production across scripted thrillers, comedy series and unscripted genres, including some exciting news about The Traitors in the region. We’re also excited about several high-profile international scripted series set to launch, including the new title from Two Brothers Pictures, The Assassin, led by Keeley Hawes and Freddie Highmore, which promises a compelling storyline and exceptional production values. Premium natural history programming like Parenthood is set to make a strong impact, along with the return of audience favorites such as Gordon Ramsay’s Kitchen Nightmares, returning for its ninth season in the U.S.”

Nippon TV will likewise be looking to drive business across finished content and formats, Aoki explains. “For tape sales, we will continue to respond to the high demand for Japanese content with anime at the core while also addressing the growing appetite for live-action content with new dramas. As for formats, we will boost our sales efforts for our recently announced Man or Mannequin?, Unstoppable and Secret Makeover while preparing for announcements of several new formats. Of course, we continue to seek new partners for co-developments. In this realm, we recently announced that our very own multiple Asian Academy Creative Award-winning director Itaru Mizuno, renowned for the massive hit Rebooting, has joined forces with Anyway Content to create How to be a Sensei. It is still fresh from being launched, but our expectations are already high that it will soar across Asia in 2025 with local adaptations.”

GMA is keenly focused on continuing to drive business with new and established clients for Filipino fare, Salvador says. “GMA Worldwide is actively re-engaging with key markets such as Vietnam, Indonesia and Malaysia, where we see tremendous potential for content distribution and partnerships. Vietnam’s burgeoning economy and growing media landscape present good collaborative opportunities. Meanwhile, Indonesia and Malaysia are also critical focus areas as we strengthen our ties through ongoing negotiations with existing partners and explore new collaborations. Additionally, we are in discussions with partners in Mongolia, further expanding our reach in emerging Asian markets. By leveraging these relationships, GMA Worldwide aims to enhance its presence and adapt our content offerings to meet the diverse needs of these dynamic regions.”

PARTNER POTENTIAL
Inter Medya is also strengthening ties with existing customers while looking to penetrate new markets, Koray says. “India, Pakistan, the Philippines, Vietnam and Bangladesh are the biggest markets for Turkish content. We’ve closed deals for long-running dramas such as Endless Love and Last Summer. Thanks to our extensive catalog, we have done deals in Thailand, Taiwan, Korea and Japan. We licensed our miniseries such as Naked and crime drama series Interrupted.”

Scripted formats are a new opportunity for the Inter Medya team in Asia, Koray adds, and expanding to more challenging markets for Turkish drama. “In 2024, we closed a deal with a major Korean production company for the adaptation rights of our romance/comedy series Love Undercover. Since then, we have realized an increasing interest in remake rights for Korea. On the other hand, there are new requests from Japan and Korea for finished content. We believe that our modern crime drama series The Ivy and Dreams and Realities are the best fits for Korea and Japan since both titles have approximately 20 episodes in total.”

Gentet highlights the importance of Mediatoon’s presence in Shanghai with a local office, “which allows us to significantly expand the distribution and visibility of our content within China. By working closely with our team on the ground, we can better understand and respond to regional market trends and audience preferences. Additionally, we continue exploring new opportunities in Southeast Asia, a region with diverse and changing markets, which has always welcomed our programs and enabled us to extend our impact throughout the Asia-Pacific region.”