{"id":3252,"date":"2014-12-01T00:00:00","date_gmt":"2014-12-01T00:00:00","guid":{"rendered":"http:\/\/worldscreen.com\/tvasia\/2014\/12\/01\/pay-day\/"},"modified":"2016-02-01T16:50:57","modified_gmt":"2016-02-01T21:50:57","slug":"pay-day","status":"publish","type":"post","link":"https:\/\/worldscreen.com\/tvasia\/pay-day\/","title":{"rendered":"Pay Day"},"content":{"rendered":"

\"\"This article originally appeared in the MIPCOM 2014 issue of <\/em>TV AsiaPac.
\n<\/em>
\nIn Asia\u2019s ever-more-crowded pay-TV landscape, channels are on the hunt for new ways to innovate.<\/em><\/p>\n

Four years ago, pay TV in Asia finally crossed the 50-percent penetration rate. It was heralded as a new milestone for the business, a sign that Asian consumers were finally willing, in significant numbers, to pay a premium for entertainment they wouldn\u2019t be able to find on the terrestrial dial. Today, the subscriber numbers are still massive\u2014about 514 million pay-TV customers across the region, according to a Dataxis intelligence report from earlier this year\u2014but growth of the overall pie is no longer on the rapid trajectory seen in the past.<\/p>\n

\u201cThe general trend is one of deceleration,\u201d observed Vivek Couto, executive director of Media Partners Asia, in the recent Asia Pacific Pay-TV & Broadband Markets 2014<\/em> report, which projects a 60-percent pay-TV penetration rate for the region in 2018. \u201cChannels that do not have compelling consumer propositions across linear and nonlinear conversations will not have a long-term future on the pay-TV dial in any of the key markets,\u201d Couto stated. \u201cTelevision Darwinism will be coming to Asia Pac in force.\u201d<\/p>\n

SURVIVAL OF THE FITTEST<\/strong>
\nSo what does a pay-TV channel have to do to survive intense competition, slower industry growth and a small (albeit fairly healthy) ad market? First and foremost, get the programming mix right. And on that front, there are no easy answers as pan-regional channels figure out how much to take from the big U.S. content houses backing them, how much to spend on the top-flight American imports that everyone wants, and how much to localize.<\/p>\n

\u201cDo we need to make a Korean or Chinese or Filipino version of 24<\/em> or NCIS<\/em>?\u201d is a question that Joon Lee, executive VP of content and communications at FOX International Channels (FIC) Asia Pacific and Middle East and managing director for Hong Kong and Southeast Asia, says he and his team debate regularly. \u201cIt\u2019s still something we need to think about more. It\u2019s not just a business conversation\u2014as in, can we make enough money doing it?\u2014but rather it\u2019s about, Does FOX need to do this? Do we need to go into local production? We are the home of U.S. dramas and U.S. entertainment shows.\u201d<\/p>\n

The flagship FOX brand in Asia has indeed defined itself as the home of the best of the U.S.\u2014as have a number of other general-entertainment channels.<\/p>\n

AXN was the first pay-TV network in Asia to bet big on American drama imports. Today, its schedule includes CSI: Crime Scene Investigation<\/em>, NCIS: Los Angeles<\/em> and The Blacklist<\/em>. Hui Keng Ang, senior VP and general manager at Sony Pictures Television Networks, Asia, concedes that the battle to secure hot U.S. shows is certainly tougher today than it was in AXN\u2019s early days, but the company has its longstanding relationships with the Hollywood studios working in its favor.<\/p>\n

\u201cWe see an explosion of new channels coming to the market,\u201d Ang says. \u201cWe continue to be the leader because of our brand and the marketing efforts we put behind promoting our content. Many distributors continue to want to work with us. We\u2019ve become their first stop because when they know that they have limited product coming out of their networks in the U.S., they want to ensure they have the best partner in the region to promote their shows. Everybody can pay the same price, but who can make that show the most popular?\u201d<\/p>\n

Ang says AXN and its female-skewing sister network Sony Channel also benefit from being part of Sony Pictures Television. \u201cWe have priority access as long as we pay the market rate,\u201d Ang says. \u201cLast year, everybody wanted The Blacklist<\/em>. We got it. It doesn\u2019t mean we got it for cheap, but we did get it.\u201d<\/p>\n

Christine Fellowes, the managing director for the Asia Pacific at Universal Networks International (UNI), also points to being affiliated with NBCUniversal\u2019s content-distribution arm as a key benefit. \u201cWe are in the tremendous position of being part of one of the largest content producers in the world. We have access to great dramas and great theatrical product and great branded product. Those relationships are very important\u2014they are, quite honestly, the foundation of our business.\u201d<\/p>\n

FAMILY RICHES<\/strong>
\nAs an example of how UNI is tapping into the resources of its parent company, Fellowes cites the recently launched DIVA Presents Telemundo<\/em> weekday block of telenovelas. \u201cWe know that in many, many markets in Asia, women love telenovelas,\u201d Fellowes says. \u201cWorking with Telemundo [also owned by NBCUniversal] is a way for us to bring our audience contemporary, fresh, new novelas.\u201d<\/p>\n

RTL CBS Asia Entertainment Network is drawing heavily from the two content powerhouses that own it\u2014RTL Group and CBS Studios International\u2014as it builds two channels in Asia, RTL CBS Entertainment and RTL CBS Extreme.<\/p>\n

\u201cHaving two of the world\u2019s strongest content producers as shareholders obviously makes our lives much easier, and we naturally find a lot of content from them,\u201d says Jonas Engwall, the CEO of RTL CBS Asia Entertainment Network, which has only been in operation in the region for the last year. The company is, however, also acquiring content from outside sources. \u201cWe\u2019re committed to delivering new and unique entertainment options to our audiences,\u201d says Jennifer Batty, executive VP of programming at RTL CBS. \u201cWe became the first channel in the region to bring in content from Netflix. We launched House of Cards<\/em> in late May.\u201d<\/p>\n

Also new to the channel this year is The X Factor UK<\/em> from RTL-owned FremantleMedia. The acquisition of The X Factor UK<\/em> reflects the broader \u201cfirst and exclusive\u201d mandate among Asia\u2019s biggest general-entertainment channels. RTL CBS is airing the show live from the U.K., with a repeat broadcast in prime time.<\/p>\n

\u201cWe live in a connected world,\u201d Engwall says. \u201cNews travels faster than ever, and entertainment options abound. It is with this understanding that we bring the latest and best programs to viewers with our channel so that they do not have to maneuver through the dizzying maze of illegal options to find content. We have numerous programs that air within 24 to 48 hours after the original broadcast from the U.S. or the U.K. We have people working in the U.S., Europe and in Asia to make sure that content can be delivered ASAP to our viewers.\u201d<\/p>\n

WATCHING WINDOWS<\/strong>
\nShorter windows have indeed become commonplace among the region\u2019s biggest pay-TV brands. FOX International Channels has been pioneering this approach across its portfolio, from Cosmos: A Spacetime Odyssey<\/em> on National Geographic Channel to Sleepy Hollow<\/em> on FOX to MasterChef Junior<\/em> on STAR World. All will air within days, or hours, of the American premiere.<\/p>\n

HBO Asia has also made it a priority to shorten the time subscribers have to wait to access buzz-generating shows like Game of Thrones<\/em>. CEO Jonathan Spink admits it has been a challenging process. \u201cWe do have to censor, we do have to subtitle, we do dub. Our programming team has worked particularly hard to get over some of these issues. In the past, sometimes we might not get a show till the day or two days before [we wanted to air it], so it would be difficult to get these things in motion. Now, we\u2019re more in alignment with the U.S.\u2014we\u2019re wholly owned by HBO in the U.S., so I think we\u2019ll be working closer in some areas. It\u2019s a natural progression. The issue of piracy has speeded it up, and the fact that people do want to see things very quickly after the U.S.\u201d<\/p>\n

This \u201cexpress programming\u201d approach has been a major priority at UNI, Fellowes says. E!, for example, simulcasts Keeping Up with the Kardashians<\/em> in Australia, while viewers in the rest of the region see it within 48 hours of the American debut.<\/p>\n

The intense battle for the best new shows out of the U.S. has created a whole new set of opportunities for channel operators. Singapore-based Rewind Networks, for example, has also based its business model on the idea that consumers want to see top-quality American fare\u2014but it is offering them enduring classics instead of new series.<\/p>\n

\u201cIn Asia over the last four or five years, we saw a lot of general-entertainment brands coming in, all doing the same thing: focusing on first-run content, mostly from the U.S. studios,\u201d says Rewind Networks\u2019 CEO, Avi Himatsinghani. \u201cWe couldn\u2019t play that game. Pay TV is growing aggressively in the developing markets. International entertainment is not really a mainstay for these local audiences. So we had to think about what would work. I had seen that great shows, even when repeated on the mainstay networks, rated well.\u201d<\/p>\n

That\u2019s where HITS, a channel devoted to classic series, was born. \u201cI believe HITS [fills] a latent need for a great destination where people can watch their favorite shows of all time, or see shows they\u2019ve heard of but never seen.\u201d<\/p>\n

On HITS, which has secured carriage in Singapore, the Philippines and Indonesia, series like The Cosby Show<\/em>, Seinfeld <\/em>and The Golden Girls<\/em> are striking a chord with audiences. \u201cAddressing different demographics through decades of great television is our strategy,\u201d says Himatsinghani.<\/p>\n

GLOBAL SCALE<\/strong>
\nFor the more established players that have sister channels in other regions, global co-productions have become an effective strategy for getting access to prominent imports\u2014without having to engage in a regional bidding war.<\/p>\n

FIC is the biggest proponent of this approach, with a portfolio that includes The Walking Dead<\/em>, The Bridge<\/em> and the upcoming Wayward Pines<\/em>. All are exclusive to FIC in the first window across the globe. AXN has also started participating in global co-pros, first with Entertainment One\u2019s The Firm<\/em> and now with Hannibal<\/em>, from Gaumont International Television, and Crossing Lines<\/em>, from Tandem. Ang refers to these global events as a \u201ckey pillar\u201d in AXN\u2019s overall programming remit.<\/p>\n

UNI has similarly begun embarking on joint initiatives with its sister channels in Europe and Latin America, with the TNT series The Librarians<\/em> set for a global debut this year.<\/p>\n

There are other ways that channels are working with sister outlets internationally. Cartoon Network Asia, for example, collaborates with its counterparts across the globe through an international shorts program. \u201cThis kind of initiative helps our content stay fresh and relevant to all our viewers wherever they are,\u201d says Mark Eyers, chief content officer for kids at Turner International Asia Pacific. \u201cThe program links us with the very best animation talent, wherever they are.\u201d<\/p>\n

Food Network, meanwhile, has created a localized version of The Best Thing I Ever Ate<\/em>, which was originated by its American counterpart. \u201cThe Asian edition features local talent from Singapore, Malaysia, Philippines and Thailand,\u201d says Cheah Chee Kong (CheeK), the head of creative, content and marketing for the Asia Pacific at Scripps Networks International (SNI). \u201cThere are also plans to create an Asian version of the Food Network competition series Chopped<\/em>.\u201d<\/p>\n

LET\u2019S GET LOCAL<\/strong>
\nLocalization is a mandate for most of Asia\u2019s top channel brands across the genre spectrum. Beyond the requisite subtitling, dubbing and interstitials, channels are increasingly developing long-form content within the region.<\/p>\n

HBO Asia is now on its second regional commission, Grace<\/em>. The Singapore-set horror miniseries features an American lead in Russell Wong, an Australian director (Tony Tilse) and a cast of actors from across the Asia Pacific. It comes a year after HBO Asia premiered Serangoon Road<\/em>, a Singapore-Australian co-production set in the 1960s. Spink said he and his team were certainly mindful of \u201cthe heritage of HBO\u2019s productions,\u201d when devising an original programming strategy for Asia. Serangoon Road<\/em>, he notes, ticked a lot of boxes. \u201cIt was a good story, we had good partners, and it was a very Asia-focused series from an interesting time in history.\u201d The effort paid off\u2014the show was HBO\u2019s highest-rated title in Singapore and Malaysia in 2013.<\/p>\n

Going forward, the aim is to do one Asian original per year, possibly two. \u201cIt\u2019s really about what can be produced for the kind of money you have available,\u201d Spink says. \u201cWe\u2019re talking to several companies around Asia about co-productions and other opportunities.\u201d<\/p>\n

SCM, meanwhile, has been investing heavily in original feature films from Taiwan, Hong Kong and Singapore to sit alongside its acquired movies.\u201cWe have a project called \u2018Go Local!\u2019 where we set aside a fund in each of those three countries to sponsor young, talented [filmmakers] to make locally relevant independent films,\u201d FIC\u2019s Lee says. It is also co-producing films with major Chinese studios, and has commissioned its first miniseries. Sister network STAR Chinese Channel (SCC) used to make some 2,000 hours of variety and talk shows a year. It will continue doing those kinds of shows, \u201cbut we will probably do less in quantity, more in quality,\u201d Lee says. \u201cAnd we have to get into original Mandarin-language scripted dramas.\u201d As part of that effort, SCC recently scored the global rights outside of China to the book-based drama Tiger Mom<\/em>.<\/p>\n

GAME DAY<\/strong>
\nFIC\u2019s biggest localization effort this year, though, is in sports. Lee is leading the charge to shore up the rights to regional and local-market sporting events for the FOX Sports portfolio. These will complement global acquisitions like Bundesliga.<\/p>\n

\u201cWe now have four sports hubs,\u201d Lee says, in Singapore, Hong Kong, Taiwan and the Philippines, with more to come for Indonesia, Thailand and Vietnam. \u201cWhen we just had one feed that covered every country in Asia, we didn\u2019t have the luxury of selecting customized content for each market. Now [that] we have local feeds, we can afford to go for that content that is relevant to the local market. We recently acquired Badminton World Federation events in Indonesia. Badminton may not be a relevant sport for other parts of Asia, but it\u2019s huge in Indonesia. In Taiwan we acquired the rights to some Chinese Professional Baseball League games. In the Philippines we\u2019ll go after local basketball. We\u2019ll provide local commentary, local sports experts, to maximize the relevancy factor of our products.\u201d<\/p>\n

On the entertainment front, meanwhile, FIC has been doing the occasional original series at STAR World, which has historically been an imported-content channel. Regional fare on the female-skewing network includes the competition series Asia\u2019s Next Top Model<\/em> and The Apartment<\/em>.<\/p>\n

AXN, too, has been finding room on its grid for the occasional Asian original. Following the success of The Amazing Race Asia<\/em>, AXN made its own version of The Apprentice<\/em> and now is gearing up for Asia\u2019s Got Talent<\/em>, set to air in early 2015. UNI\u2019s DIVA, meanwhile, has a regional version of the Supermodelme<\/em> format.<\/p>\n

GET REAL<\/strong>
\nThe fact that general-entertainment channels largely built on U.S. dramas and comedies are making unscripted originals in Asia speaks to the many localization opportunities presented by the lifestyle and reality genres. Indeed, the region\u2019s factual channels, including Discovery, National Geographic and HISTORY, have been commissioning original series in Asia for years.<\/p>\n

\u201cWe have been working on local productions in this region since our second year in operation\u2014we launched in 2007,\u201d says Michele Schofield, the senior VP of programming and marketing at A+E Networks Asia.<\/p>\n

HISTORY began its original programming strategy with specials in Asia, but that has since evolved to include more series, Schofield says. \u201cWe have produced country-specific stories for our key markets\u2014one-offs like 10 Things You Don\u2019t Know About Malaysia <\/em>or series like Ride N\u2019 Seek: Borneo<\/em>\u2014and we have made bigger commissions on pan-regional series.\u201d These include Hidden Cities<\/em>, Hidden Cities Extreme <\/em>and Special Forces<\/em>,where individual episodes focus on specific Asian markets.<\/p>\n

Referencing the character-driven reality series that have been huge for HISTORY in the U.S. and successfully exported to the Asian feed, Schofield notes, \u201cWe would love to have made Pawn Stars Asia<\/em> or an Asian Pickers<\/em>, but the challenge is casting fluent English-speaking characters who have easily understood accents and <\/em>who make great characters on TV and<\/em> who do something authentic in their lives that lends itself to the HISTORY brand. The English-speaking qualification already narrows the pool of potential cast significantly. We\u2019re still hopeful that we will find some great characters from within Asia, but until then, we\u2019re focused on the stories and places of Asia that have the widest appeal and offer potential attractiveness to advertisers.\u201d<\/p>\n

Discovery Channel and TLC have also been investing heavily in local stories to tell across Asia. \u201cLocalization has led to our channels being increasingly relevant and appealing to audiences, particularly among affluent viewers,\u201d says Kevin Dickie, senior VP of the content group at Discovery Networks Asia-Pacific. \u201cWe have been involved in local and original productions since we were first established in Asia 20 years ago.\u201d<\/p>\n

In 2000, to boost its access to local talent, Discovery launched the First Time Filmmakers (FTFM) initiative. \u201cIt\u2019s designed to help develop the documentary storytelling skills of local filmmakers while providing them an international platform for their talent,\u201d Dickie explains.<\/p>\n

A TASTE OF ASIA<\/strong>
\nBetween Food Network and Asian Food Channel (AFC), SNI is a significant commissioner of local content across the region. The Amazing Food Challenge: Fun in the Philippines<\/em> has been among AFC\u2019s successes, with a second season in the works, alongside How to Make It<\/em>, which focused on Malaysian restaurateur Awal Ashaari.<\/p>\n

\u201cFor AFC, we aim to create a balanced mix of Asian content with a touch of global flavor,\u201d says SNI\u2019s CheeK. \u201cIn the next year, we are also looking at creating more localized content through commissioning, co-productions with affiliate partners and partnerships with key clients.\u201d<\/p>\n

In its efforts to find new talent, SNI this year launched Food Hero, an initiative aimed at securing local hosts for AFC and Food Network. Plus, CheeK says, \u201cWe are working with various production companies in our key markets, building capabilities and introducing them to the AFC and Food Network program style.\u201d<\/p>\n

E! is also recruiting some local faces to complement its slate of U.S. programming. \u201cI don\u2019t see E! ever becoming a Chinese entertainment channel or a Thai entertainment channel, but it does need to dive into what matters in pop culture in local markets,\u201d Fellowes says.<\/p>\n

That is particularly important when spinning off local feeds, as UNI did with E! in the Philippines. The move prompted the launch of the local reality series It Takes GUTZ to be a Gutierrez<\/em>, focused on a famous Filipino family. It did so well, a second season was ordered for launch this October. E! is also making episodes of E! True Hollywood Story<\/em> about Asian celebrities.<\/p>\n

The prospect of cultivating loyalty and brand recognition among viewers with culturally relevant content is not the only driver behind the trend towards more local productions. Advertisers love them too. \u201cThere is only so much you can do to promote your advertisers\u2019 brands with acquired shows,\u201d Sony\u2019s Ang says. \u201cLocal productions really allow you to integrate [the marketer\u2019s] ideas in a seamless and natural manner.\u201d<\/p>\n

Adds A+E\u2019s Schofield: \u201cBranded content and advertiser integration is a key part of the ad-sales business for pan-regional pay-TV channels in Asia.\u201d<\/p>\n

MAKING CONNECTIONS<\/strong>
\n\u201cThe exciting thing when you start to do the localization is you\u2019ve got lots of new ways to bring brands into a production,\u201d agrees UNI\u2019s Fellowes. \u201cWhen you have a Supermodelme<\/em>, you can tie [a sponsor] in to a glamorous, fashion-forward event, and there\u2019s a product-placement opportunity and a bigger on-air opportunity. Those broader touch points and experiential campaigns have become important to marketers.\u201d<\/p>\n

Local productions can also be hugely valuable for newer brands in the region. A+E has already unveiled its first original for Lifetime Asia, called Mom\u2019s Time Out<\/em>, in which stressed-out moms from the Philippines, Malaysia and Singapore are sent off to a luxury resort\u2014without hubby and kids.<\/p>\n

\u201cI\u2019ve been very pleased watching this program during post-production because it\u2019s really satisfying to see everyday people from Asia make for good TV viewing!\u201d Schofield says. \u201cWe worry about whether Asians will be too shy or too worried about \u2018losing face\u2019 on camera, but we\u2019ve caught some funny and heartwarming moments, and I think our audience should like seeing such a relatable show. We\u2019re bullish on our plans to grow our original production output on Lifetime in 2015, so we are starting that internal development process now.\u201d<\/p>\n

RTL CBS, which has made quick progress in the last year, landing on platforms in Singapore, Malaysia, Thailand, the Philippines and Indonesia, is also eyeing opportunities in Asian content. \u201cWe are the new kids on the block in a very competitive market,\u201d Engwall says. \u201cWe need to continue to offer two very strong channels to our affiliates.\u201d<\/p>\n

\u201cOur existing content is extremely strong, but local productions add an Asian flavor to the mix, and it is certainly an area we are looking at,\u201d Batty adds.<\/p>\n

Given the popularity of Chinese and Korean dramas in many territories, the landscape of channels focused exclusively on Asian content is also seen as a growth area. Sony has found platforms to be highly receptive to its Korean entertainment channel ONE, and it is rolling out the Chinese-language channel GEM. Celestial Tiger Entertainment (CTE) is betting on both Asian and international content on its services KIX, Thrill and Celestial Movies. Todd Miller, the CEO of CTE, refers to the offering as \u201cthe largest bouquet of pan-Asian channels dedicated to Asian entertainment. We have output deals with the top Hong Kong movie studios as well as the top Asian content distributors,\u201d relationships that are central to the group\u2019s plans to begin commissioning original programming. \u201cWe are currently in development mode and look to go into production with our first original production next year,\u201d Miller says.<\/p>\n

The value of local content on pay-TV channels is expected to rise as OTT providers begin to take a bigger and bigger share of American imports. \u201cOTT poses a significant threat and yet a great opportunity,\u201d says Sony\u2019s Ang. \u201cThe Asian content in our portfolio will put us in a better position. We are [also] working with various affiliates to ensure that we extend the existing rights beyond the linear window.\u201d<\/p>\n

Finding that right mix of local and international, linear and OTT, is crucial given the size of the potential revenue pie. Media Partners Asia projects that Asian pay-TV channels will rake in $23.5 billion in revenues by 2023, up from $18.7 billion last year. Says the MPA\u2019s Couto: \u201cEvolving strategies and improved execution are important if the pay-TV industry wants to build a business that thrives in the long term.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

This article originally appeared in the MIPCOM 2014 issue of TV AsiaPac. In Asia\u2019s ever-more-crowded pay-TV landscape, channels are on the hunt for new ways to innovate. Four years ago, pay TV in Asia finally crossed the 50-percent penetration rate. It was heralded as a new milestone for the business, a sign that Asian consumers …<\/p>\n","protected":false},"author":290,"featured_media":3253,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76],"tags":[],"class_list":["post-3252","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-features"],"yoast_head":"\nPay Day<\/title>\n<meta name=\"description\" content=\"Pay Day. In Asia\u00e2\u0080\u0099s ever-more-crowded pay-TV landscape, channels are on the hunt for new ways to innovate.. 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