Perfect Match

As pay-TV penetration rates have slowly crept up across Asia—the regional figure now stands at about 57 percent—cable and satellite channels have been taking an increasing share of prime-time viewing. Recent figures from the Cable & Satellite Broadcasting Association of Asia indicate that 70 percent of audiences across the continent are watching multi­channel TV. It’s good news for the pay-TV business as a whole and a reminder to the dominant terrestrial broadcasters that they’re not the only game in town anymore. As everyone vies for their share of eyeballs and ad revenues, the need to invest in high-quality, appealing entertainment has never been more important. And at Asia TV Forum this December, buyers across the board will be looking out for brand-defining shows to add to their grids in 2013.

The battle is perhaps fiercest among the major pay-TV English-language general-entertainment channels, where the competition to secure the first-run, exclusive rights to the big shows out of the U.S. and the U.K. has intensified as the playing field has become more crowded. The most dominant players in the entertainment space are FOX International Channels (FIC), Universal Networks International (UNI) and Sony Pictures Television (SPT), which each operate a diverse portfolio of networks targeting a variety of demographics. As a result, their programmers have a broad buying remit for the Asia TV Forum this year.

At FIC, Michael Dick, the head of acquisitions, oversees purchases for a portfolio that includes STAR World, FOX and FOX Movies Premium. “We do acquire hundreds of hours of series and several hundred movies per year when all our channel groups are added up,” Dick says. Asked about what some of the group’s standout successes have been as of late, Dick notes, “We have been very happy with continued success of The Walking Dead and the return of Homeland on FOX Movies Premium (FMP). DC Cupcakes and The Apartment: Style Edition are doing fantastically well on STAR World, and we are very happy with our growing partnership with the UFC and are looking forward to the UFC Macao, as it’s going to be live on FMP and FOX. I think there is almost too much to mention, but we have been very lucky to have managed to pick up such great content recently.”

Dick says that the group will be acquiring more feature films, “as we are expanding the number of movie channels we are running.” In addition, “We are always looking for strong new reality shows for STAR World and first-run must-see TV series for FOX.”

UNIVERSAL SLATE
An eclectic mix of shows has been performing well for the UNI portfolio. DIVA Universal, which has a distinct female skew, has fared well with Downton Abbey, Smash and Suits. “DIVA Universal delivers great drama, be it scripted or non-scripted, targeted at the modern female working adult,” says Marianne Lee, the director of programming and acquisitions at UNI. “Programming includes relationship dramas (Smash, Suits, The Good Wife), procedural dramas (Rookie Blue) and reality with a competition element (Top Chef, My Kitchen Rules).

Universal Channel has carved a niche for “character-driven series with big personalities in rich plotlines,” Lee says. “Programming for the channel includes procedurals where the central characters are the key hook of the show (Grimm, House) and character comedy built around relatable situations (Whitney, The Office).”

For Syfy, Lee is acquiring a mix of scripted and unscripted series—including Alphas, Haven and Sinbad—TV movies and a range of adventure and fantasy programming.

Of her overall acquisitions strategy, Lee says, “We continue to invest in high quality original content, as that’s what ultimately drives audiences to the channels. Unique content with digital properties will be useful to market the programs.”

FRESH MIX
Sony Pictures Television has three general-entertainment channels in Asia: AXN, beTV and Sony Entertainment Television. All three services are acquiring drama, comedy and reality shows, according to Yan-Jong Wong, the VP of programming for English content at SPT’s networks in Asia. “We buy consistently around the year to ensure our channels are always offering a wide variety of fresh and high-quality programs available on the market,” she says.

Recent acquisitions that have done well for the portfolio include Last Resort on AXN and season two of Sherlock on beTV. “The upcoming third season of Sherlock has been acquired for beTV,” Wong says. “We are also looking forward to the premiere of a new comedy series, The Wedding Band.” Comedy is a new addition to the beTV grid, Wong notes, following its repositioning and rebranding from AXN Beyond earlier this year in order to “appeal to wider audiences.”

New for 2013 is Legend Fighting Championship on AXN, plus Gaumont International Television’s Hannibal, which the channel is a global co-producer on. At beTV, Chuck and Necessary Roughness will soon be on the grid, plus the reality show Face Off and, from the U.K., the comedy Spy. The female-skewing Sony Entertainment Television (SET), which recently shored up the rights to Lionsgate’s ABC series Nashville, is gearing up to launch new seasons of Damages and the reality shows Top Chef, Millionaire Matchmaker and Flipping Out.

The terrestrial broadcaster MediaCorp’s Channel 5 has also lured audiences with entertainment content out of the U.S. and the U.K., complemented by top-flight sporting events.

“Our day-and-date telecast of X Factor and branded series such as Grimm and Undercover Boss have performed well,” says Joy Olby-Tan, the VP of network acquisitions. “Our carriage of the London Olympics also created large channel buzz.”

The channel acquires about 2,000 hours a year, Olby-Tan says. The aim is to “provide the best curated mix of quality international English entertainment across all key genres—movies, drama, comedy, variety, entertainment, reality. The international sports content that we currently provide is event programming in nature.”

At ABS-CBN in the Philippines, Western programming remains important, but the broadcaster has seen particular gains recently with Asian dramas, notably those with “domestic themes or those targeting housewives,” says Evelyn “Leng” Raymundo, the VP of program acquisitions, distribution and DTT channels. “They are long-running dramas which delivered good ratings but were acquired at a reasonable price—so [they are] sustainable.”

With an annual acquisitions budget of about $26 million for free-TV and pay-TV platforms, Raymundo is purchasing everything from drama series to animation, lifestyle and entertainment programs, movies and sports. Asked if her programming needs have changed significantly over the last 12 months, Raymundo notes, “For foreign acquisition, the requirements remain the same except that since our local dramas are exceptionally strong nationwide, especially during prime time, any foreign acquired content should be equally strong and compelling.”

For her 2013 programming remit, Raymundo is looking out for more Asian dramas, following the introduction of a new morning block. The broadcaster already carries foreign dramas in the afternoon and in prime time. She also needs kids’ fare for a weekday morning block.

LOCAL FLAVOR
Indonesia, like the Philippines, is heavily dominated by local programming, but broadcasters are making some room for imported fare. Kompas TV, which has been in operation for just over a year, is acquiring documentaries and factual entertainment to complement its local dramas and sitcoms, according to Julie Wibowo, the program acquisitions manager at the channel. About 30 percent of the overall programming budget is devoted to acquisitions, and Wibowo notes that that might increase slightly in 2013. At ANTV, Gunawan, the program director at the station, says that about $3 million is spent on acquisitions annually. In terms of finished programming, the budget primarily goes to classic animation and Korean drama.

While some imports have done well for ANTV and Kompas, both Gunawan and Wibowo put formats at the top of their acquisitions lists for 2013.

Gunawan notes that this is a slight change in strategy; the broadcaster had limited its format buys after low ratings for a quiz show it aired earlier in the year. Looking ahead to 2013, however, Gunawan will be looking out for strong concepts in the talent, game-show, reality and comedy format genres at ATF, as well as animated series and movies.

Wibowo says that Kompas is looking for “family quiz/game-show formats” as well as some light-entertainment offerings. While her acquisitions are currently dominated by finished product, she is looking for more formats.

In Korea, the pay-TV broadcasting behemoth CJ E&M is also picking up a mix of finished programs and formats for its portfolio of channels. “We always try to find the new, trendy programs,” says Seung Ae Sohn, head of acquisitions and sales, notably in the feature-film, drama and reality genres.

Sohn notes that recent successes have included Hollywood blockbusters, the NBC hit Grimm and adaptations such as The Voice of Korea. Other formats that have been adapted by CJ include Top Gear, Got Talent, Next Top Model and Project Runway. “CJ E&M has licensed the most [formats] in Korea,” Sohn says.

MediaCorp is also keeping an eye out for format ideas that “have strong brand values and relatability to the Singapore audience,” Olby-Tan says. In the Philippines, Raymundo says that ABS-CBN is “home to the biggest franchises in formats,” including Big Brother, X Factor, Deal or No Deal, MasterChef and, coming next year, The Voice and Minute to Win It.

In the pan-regional space, AXN was the first broadcaster to produce its own versions of international formats, starting with The Amazing Race. Since then, it has aired its own Cash Cab, as well as an edition of Minute to Win It exclusively for its Indian feed. “We are always on the lookout for exciting and innovative formats that can work for our channels,” SPT’s Wong says.

UNI has also become a format buyer, adapting NBCUniversal’s Hot Guys Who Cook. Lee is focused on “fresh and contemporary formats” that would appeal to audiences across Asia.

Last month, FOX International Channels debuted Asia’s Next Top Model, based on the CBS Studios International format, on STAR World. “We are new to this space, so we are open to just about any business model,” Dick says. “The main focus will always be…if we think the show will work for the channel on which it will air. [We] are actively looking for more formats.”

Formats, however, still remain a small part of Dick’s acquisitions remit. Heading into ATF, Dick notes that he doesn’t have anything in particular on his wish list. “We don’t wait for the markets to find out about and acquire new shows. We try to keep in contact with our content partners year-round and pick up shows whenever they are available or we have a specific need. We are also very lucky to have a worldwide network of channel teams all looking for content and sharing information year-round.”

For 2013, Dick adds, “We are going to make every effort to be increasingly strategic about selecting our partners and the deals we do. As we have in the past we would rather do larger volume deals with strategic importance for us and our partners than lots of small deals, as we feel this approach will help us get the rights we require and will help keeps license fees reasonable.”

DIGITAL FUTURE
At ATF, MediaCorp’s Olby-Tan is mainly concerned with prime time, but is also open to “working out any new win-win content business models,” with distributors for other day parts. She is also eager to sort out issues with content owners over windows and nonlinear rights. “Any content with day/date or short windows from original telecast will be prioritized over others that have long, untenable holdbacks. We also want programs which are able to provide content across multiple platforms…. With the change in viewers’ lifestyles, we increasingly take a 360-degree approach in providing multifaceted content across multiple touchpoints.”

ABS-CBN’s Raymundo echoes that sentiment: “While there is no immediate monetization, new-media rights are becoming more important for us as [we] explore various ways to deliver content to viewers.”

“Digital rights will be the key points in negotiation in 2013,” says Sohn.

That’s a view that will undoubtedly be shared by buyers across the ATF show floor.