Suited to Asia

December 6, 2010 World Screen

 

This feature originally appeared in the ATF 2010 issue of World Screen.
 
After taking a 6.5-percent hit last year, advertising revenues in the Asia Pacific are set to bounce back to $106 billion this year, according to ZenithOptimedia, rising to $112.8 billion in 2011. With growth on track to continue—ZenithOptimedia sees a 7.4-percent jump in 2012—broadcasters appear to be ready to open up their wallets for both local programming and acquisitions; albeit, in a prudent manner.
 
That’s the consensus among the buyers surveyed about their programming needs ahead of this year’s Asia TV Forum (ATF). And while programming budgets differ radically across the region, from pan-regional behemoths to local terrestrials, all are firmly focused on quality and value for money.
 
“We simply focus on the returns we can get from our investments,” notes Michael Dick, head of acquisitions at one of Asia’s key pan-regional buyers, Fox International Channels (FIC). “If we don’t need to spend then we won’t, despite having the facilities to do so. If an opportunity arises that’s worth pursuing, then we will consider pursuing it. The economy obviously plays a part and influences decisions, but it’s only one factor of many.”
 
A similar sentiment is shared by Wong Yan-Jong, VP at AXN Asia, part of the SPE Networks—Asia portfolio that also includes AXN Beyond and Sony Entertainment Television. “We did not significantly cut back on our budget when the conditions of the economy were more challenging,” she says. “Now, we continue to be prudent, but are definitely willing to invest if and when the right shows come along.”
 
THE BIG GUNS
Pan-regional giants FIC and SPE are heavily reliant on U.S. imports. At FIC, Dick is buying for a slate that includes the more female-friendly STAR World and the male-skewing FOX, as well as STAR Movies, FX and Fox Crime. Asked about acquisitions that have been particularly successful recently, Dick responds: “I think FIC’s best deals are the ones that have been beneficial to everyone concerned—the platform, the advertiser, the content provider and the channel. For instance, the agreement we reached with Shine International earlier this year not only allows FIC to acquire high-quality products, such as MasterChef and Got to Dance (which will be a key part of the new STAR World offering), but also delivers additional benefits in terms of exclusivity, such as first-runs and broadcasting rights on mobiles, Internet and so forth. This provides additional value to our affiliate partners, advertisers and viewers.”
 
Dick also cites FIC’s volume deal with Disney to provide movies for the newly launched Fox Family Movies network. “This acquisition deal will help strengthen the channel’s proposition. In addition, our deal gives us access to HD product and on-demand services. These initiatives enhance FIC’s overall entertainment-channel portfolio and our leadership in this region.”
 
Dick says that FIC buys a “significant amount” of content for its 45-channel portfolio, across the gamut of genres. “FIC buys just about all genres, except children’s series, sports and news.” The focus, however, is on movies, reality series and scripted shows. “In the past we have focused solely on U.S. programming, but as the quality of production has increased significantly across the world, we do keep a lookout for product from other parts of the world. So, in time, we would expect to provide our viewers with tried-and-tested programming as well as a first glimpse of high-quality, edgy, quirky, novel or groundbreaking shows.”
 
FIC Asia representatives will be at the ATF seeking out new content, but there are no specific slots that need to be filled at this time, Dick says. “The overall focus is less on slots and more on exclusive programming and true first-runs together with acquiring brands that complement the channels. Of course, we need to have the shelf space for the programs but we look at each programming opportunity as it arises.”
 
At AXN, drama remains a core programming pillar, says Wong, with one of the most recent hits being CBS’s NCIS: Los Angeles. Other CBS shows that AXN Asia has scooped up include Hawaii Five-0 and Blue Bloods for the flagship channel, and The Defenders for AXN Beyond and Sony Entertainment Television. AXN Be­yond also picked up the Battlestar Galactica prequel Caprica for launch this month.
 
Wong says that she buys throughout the year to “ensure our channels are always serving up a wide variety of the freshest and best programs available on the market,” and she is currently seeking out drama and reality series, as well as movies. “We are seeing some popular U.S. drama series ending after very long and successful runs, such as 24 on AXN and Lost on AXN Beyond. We are hoping to acquire new productions of similarly high quality to replace these series. We are also on the lookout for more female-skewed lifestyle entertainment programming and drama series for Sony Entertainment Television.”
 
INDIAN SUMMER
A new broadcaster on the block that is also stocking its grid with U.S. content is India’s Reliance Broadcast Network, which is planning to launch a slate of channels, the first of which are being produced in partnership with CBS Studios International. BIG CBS Prime, a general-entertainment network, rolled out in November; the youth channel BIG CBS Spark launches in December and the female-targeted BIG CBS Love makes its debut in February. Prime is targeted at “the 18- to 34-year-old male and female young professionals [who are] upwardly mobile,” says Tarun Katial, CEO of Reliance Broadcast Network. Spark, meanwhile, will gear to 15- to 24-year-olds who want “edgier content” and Love will skew towards 18- to 34-year-old women.
 
Prime launched in November with a slate that included The Defenders, Blue Bloods, Survivor, CSI and Entertainment Tonight. “The launch of BIG CBS Prime marks a revolution in English-language tele­vision entertainment in India, with top international shows being telecast almost concurrent to the U.S. broadcast,” Katial says. “BIG CBS Prime’s carefully crafted [schedule, geared toward] 18- to 34-year-old audiences seeking English-language entertainment content, promises to work excellently for India.”
 
Katial continues, “India is one of the youngest countries, with over 40 percent of its population under the age of 30. Youth form an avid television consumer base. There is an increasing conversion of the English-speaking population into an English-viewing population. There is a growing upwardly mobile audience that seeks English entertainment. There are several newer categories coming up, which appeal to the younger mindset. Advertisers today are looking at platforms to connect with this audience base, posing a huge opportunity.”
 
BORN FREE
While high-end Western imports are key in the pay-TV arena, a much more mixed slate is seen on Asia’s leading terrestrial broadcasters. In the Philippines, for example, GMA Network’s biggest imported successes recently have been the Korean prime-time dramas Bread, Love and Dreams, Dong Yi and Dae Mul (Big Thing). Roxanne Barcelona, VP at GMA’s sales and acquisitions arm, GMA Worldwide, says that the Filipino broadcaster is spending anywhere from $4 million to $6 million annually on its acquisitions. “The programming budget is dependent on what content we require. If we require more local content, then the acquisition budget declines, or, at best, stays the same.”
 
Heading into ATF, Barcelona’s shopping list includes animation, Korean dramas and Hollywood theatricals. “We fill slots for both GMA-7 and QTV-11. Both are free-TV channels. For GMA there are less slots to fill, especially in prime time, since the content here is all local, except for a slot at around 10:30 p.m. daily which we have set aside for Korean dramas. During the day we have a two-hour morning block for Japanese anime. For QTV, we have slots for animation as well.”
 
At MediaCorp’s English-language general-entertainment network Channel 5 in Singapore, the need is for content to fill prime time, says Joy Olby-Tan, VP of network acquisitions, about 70 percent of which is international content. “We acquire movies, drama, variety, reality, comedy and selected sports events.”
 
HIT-SEEKERS
Recent hits have included variety shows like Breaking the Magician’s Code and Ninja Warrior. Other purchases include the Filipino drama The Two of Us, FOX’s Glee and USA Network’s White Collar. “If there is good content that can drive our viewership and business, we will find slots for them,” Olby-Tan says.
 
“Belts are still being tightened but we will make new investments where warranted. What we hope to achieve are improved productivities and to find new ways to retain the ever-distracted viewer.”
 
In neighboring Malaysia, Airin Zainul, the general manager of the Media Prima Berhad-owned ntv7, says she’s “thankful” that the economy is on the mend. “We are able to plough more investment into content and our schedule offerings.”
 
About 40 percent of ntv7’s schedule is acquired, Zainul says, made up of movies, drama—from within the region and from the U.S.—variety and light entertainment. The slots she’s currently looking to fill are weekends and weekday early mornings.
 
Like ntv7, DTH platform Astro is emphasizing Asian content on its portfolio of branded entertainment channels, in order to appeal to the country’s diverse Malay, Chinese and Indian communities. According to Zainir Aminullah, executive director of Astro Entertainment—a slate of channels that includes Astro Ria, Astro Warna, Astro Prima, Astro OASIS, Astro Awani, Astro Citra, Astro HITZ, the sports network Astro Arena and the kids’ network Astro Ceria—the company has upped its local content output from 1,700 hours in 2007 to more than 6,000 this year. “Acquisition of foreign content is minimal as these channels are catered [to] the Malay-language segment,” Aminullah says. “The finished shows acquired would be foreign movies for Astro Citra, which plays predominantly local movies (70/30 split). We also buy foreign series, especially for Ceria.”
 
Aminullah is still eager to find formats that can be tailored to local needs. “We mainly acquire variety and reality, however, we continue to explore scripted to be versioned into local language.”
 
FORMAT FEVER
The pan-regionals are also looking at the format market. Universal Networks International signed up for its own version of The Biggest Loser for Diva Universal. “We’re doing these toe dips into shows like The Biggest Loser Asia,” says Raymund Miranda, managing director of Universal Networks International in the Asia Pacific, “and we’re looking at another possible format, because those seem to work very well for the regional feeds.”
 
FIC has started to explore formats, Dick says. “We are planning to produce programming tailored to our local audiences. We are in no rush and will be very selective about the projects that we take on; however, we do see that access to international formats will absolutely make our entertainment channels even stronger. We are going to cast a wide net and look for all kinds of formats and program opportunities as opposed to simply picking up something comparable to another show that is doing well in the region or elsewhere. The main criteria will be an idea that has some sort of local relevance or is adaptable to local markets.”
 
Co-productions are part of the mix for global brands like FIC, which is on board as a partner on AMC’s The Walking Dead. Early numbers for the Asian premiere were promising following the strong debut in the U.S. In Singapore, the series debuted 425-percent higher than the time-slot average. In the Philippines, it was 1,700-percent higher than the time-slot average. In Korea, the show drew 57,000 viewers and was the highest-rated premiere on FOX this year. The co-production, Dick says, “enables us to move up the value chain by getting more broadcasting rights on different platforms and opening more launch windows, thus bringing significant value to our affiliate partners and viewers.”
 
AXN recently wrapped its fourth season of The Amazing Race Asia, which has been a success for the network. Wong says she is keen to spot “fresh reality formats” and would be interested in co-productions. “If the right opportunity presents itself, we will definitely be open to exploring it.”
 
The Philippines’ GMA has bought a number of international formats in the past, but this year has only renewed Survivor for a new season. “At the moment, management would like us to produce mostly local concepts,” Barcelona explains.
 
Astro, too, is eagerly developing local ideas that could be exported globally. “A recent success story is the homegrown format Imam Muda,” Aminullah says. “We are still focusing on developing our own local unique and compelling formats. Imam Muda is a good example of a potential format that can be adapted internationally.”
 
He adds, “Our viewers are becoming more discerning now and they will demand quality and unique content, so our task is to be on the lookout for formats that will grab the attention of our viewers.”
 
MediaCorp’s Olby-Tan does still have a demand for formats, after the broadcaster’s success with properties like Idols. “The usual suspects [we’d look at] are big brands with proven track records that can lend themselves to localization and the ability to drive our business. We do of course hope to find diamonds in the rough, too, and will give due review to formats with strong potential.”