{"id":5370,"date":"2019-04-16T10:25:33","date_gmt":"2019-04-16T14:25:33","guid":{"rendered":"https:\/\/dev2.worldscreen.com\/tvasia\/apos-special-report-asian-media-trends\/"},"modified":"2019-04-17T09:34:58","modified_gmt":"2019-04-17T13:34:58","slug":"apos-special-report-asian-media-trends","status":"publish","type":"post","link":"https:\/\/worldscreen.com\/tvasia\/apos-special-report-asian-media-trends\/","title":{"rendered":"Big Shift"},"content":{"rendered":"

Mansha Daswani explores the major trends in the AsiaPac video sector, from rising content investments to the emergence of telcos as new power players.<\/em><\/p>\n

China\u2019s leading online video operator, iQiyi, recorded a surge in memberships in 2018. It added a whopping 36.6 million users to reach a total of 87.4 million\u2014for reference, as of the start of this year, Netflix had 139.9 million globally<\/em>. And about 98 percent of those iQiyi customers\u2014in a market where audiences are used to getting content for free\u2014actually pay for subscriptions. It\u2019s an impressive leap for the Baidu-owned service, but the platform also saw its loss balloon last year on the heels of significant expenditures on original content. In the \u00fcber-competitive streaming-video space, growth comes at a cost, and acquiring customers is not cheap or easy.<\/p>\n

But digital players, operating across a range of business models, are indeed adding value to the overall media ecosystem in Asia, creating new opportunities for producers, distributors, channels and brands.<\/p>\n

\u201cOver the past three years, SVOD services have helped boost the overall subscription pie across much of AsiaPac, especially in China, where pay-TV ARPUs are relatively small,\u201d observes Vivek Couto, executive director of research firm and consultancy Media Partners Asia (MPA). \u201cHowever, SVOD remains in its infancy in many markets, making recent developments an unreliable indicator for the future.\u201d<\/p>\n

Amid digital disruptions, Jonathan Spink, CEO of HBO Asia, expects it to be a \u201cvery tough market for the traditional linear TV channels. A lot of the operators are facing pressures. You might see a couple of casualties in the SVOD world. It\u2019s not an easy business. We\u2019re in a fortunate position. We have a strong brand and a strong product line. HBO U.S. is producing more and more shows. If we supplement and complement [the U.S. content] with all the things we do locally, I think we\u2019re in a really strong position.\u201d<\/p>\n

ON THE GO<\/strong>
\nOne of Spink\u2019s priorities this year is the rollout of the OTT service HBO GO. \u201cThe biggest thing we had to do was sort out all the studio rights so we could start launching HBO GO properly,\u201d Spink explains. \u201cThe business had long-term studio deals and the rights in those deals didn\u2019t foresee the OTT and SVOD world. It took us a while but we managed to get all the studios on board and that\u2019s allowing us to focus on HBO GO.\u201d<\/p>\n

Of note, the company, after years of exclusivity on StarHub, sealed a major deal with Singtel that includes a suite of channels plus the OTT service. Singtel recently unveiled a postpaid mobile plan that includes HBO GO. HBO GO also launched on Mediacorp\u2019s OTT service, Toggle.<\/p>\n

Singtel is just one of many telco players across Asia that are using video to drive their mobile-broadband services.<\/p>\n

\u201cWith over 100 million smartphone users on our network, it\u2019s strategically imperative to us that we are an active player in the online-video space,\u201d reports Alistair Johnston, the marketing director at Indonesian telco giant Telkomsel.<\/p>\n

For its MAXstream VOD app, Telkomsel is inking deals with a range of linear channels, investing in original content and offering access to the HOOQ OTT service.<\/p>\n

\u201cThe app is a gateway and discovery tool for all of our partners with great VOD content,\u201d Johnston says. \u201cWe also use MAXstream to create partnerships with OTT VOD services and serve their content to our customer base. So far we have 20 premium international linear channels, 12 local TV free-to-air channels, over 150 hours of MAXstream original scripted content, live music performances weekly by Indonesian stars here at our Telkomsel studio and access to over 10,000 hours of HOOQ embedded content.\u201d<\/p>\n

According to Johnston, the app has had more than 11 million downloads to date. \u201cWe want MAXstream to be seen as an open-source platform that content providers can easily utilize to reach Telkomsel\u2019s 90 million-plus active mobile video users,\u201d he notes. \u201cWe also don\u2019t limit MAXstream to just Telkomsel. The platform is accessible in Indonesia no matter what network you are on.\u201d<\/p>\n

At APOS, Johnston will be stressing to potential partners that in markets like Indonesia, where more people have cell phones than pay-TV services, \u201cmobile broadband access is still the key for VOD content penetration.\u201d<\/p>\n

Partnering with a telco also helps OTT operators overcome severe payment obstacles in markets where credit card penetration is low.<\/p>\n

OTT AMBITIONS<\/strong>
\nPayment is just one of many hurdles facing digital players across Asia as they finesse pricing plans, business models, content lineups and partnerships. Southeast Asian operators HOOQ and iflix have both evolved from the SVOD-only proposition they launched with, joining Viu in the freemium space.<\/p>\n

HOOQ embarked on the rollout of a skinny bundle in August of last year, delivering to subscribers channels that were previously only accessible to Indonesian consumers with a pay-TV subscription. These joined an array of free-to-air live-streamed channels on the operator.<\/p>\n

\u201cIf you\u2019re solving for engagement in a 24-hour period, you have to keep experimenting, be agile and be ready to move\u2014fast,\u201d says Vishal Dembla, HOOQ\u2019s new chief commercial officer for Southeast Asia. \u201cOur objective is to be synonymous with video entertainment, regardless of whether it is linear, transactional VOD, SVOD or AVOD,\u201d he says. \u201cWe want to work with like-minded partners, whether it\u2019s rights-sharing, telcos or channels.\u201d<\/p>\n

Rewind Networks is among the operators to have aligned with HOOQ on the skinny bundle, with HITS and HITS Movies included in the package in Indonesia.<\/p>\n

\u201cWhat I love about HOOQ is it\u2019s forward-thinking in its approach and has taken a bet on aggregating linear alongside SVOD to connect with a wider OTT audience,\u201d says CEO Avi Himatsinghani. \u201cThey\u2019ve been very successful in integrating the free-to-air channels too. Early indications are that it\u2019s been a good start. The way you have to promote linear on OTT is very different. On a traditional platform, we\u2019d give the partner a promo and say, please run it across your networks. That approach becomes less relevant on an OTT service, where it\u2019s all about discoverability and getting people to click and watch. There is a lot of learning for them and us. It\u2019s early days, but I\u2019m excited.\u201d<\/p>\n

Himatsinghani is also enthusiastic about continued opportunities with legacy pay-TV players and telcos across Asia for his two channels.<\/p>\n

The recently launched HITS Movies is Himatsinghani\u2019s primary focus right now, on the heels of a strong launch on StarHub. \u201cWe put together 40 years of the best movies on a single service to see how powerful that would become in terms of viewer stickiness. We actioned our plan and it has beaten my wildest expectations. The ratings and numbers in Singapore prove it. Every month since launch, we have been in the top three out of 15 international general-entertainment channels in the basic group.\u201d<\/p>\n

In the case of the flagship HITS, Rewind expanded carriage in Taiwan, with distribution on both CNS and Chunghwa Telecom\u2019s MOD, rolled out in Vietnam with K+ and VTVcab and launched in Myanmar and the Maldives. \u201cThere are pockets [available]\u2014we\u2019re still not on True or AIS in Thailand. We want to get onto platforms like myTV SUPER, Now TV and i-Cable in Hong Kong. So there\u2019s still work to be done on the flagship channel as well.\u201d<\/p>\n

Himatsinghani says he\u2019s also looking further afield. \u201cI\u2019d love to see how we can explore additional feeds of the service in markets like India, Korea and even Africa and Eastern Europe. I think it\u2019s a good time to start exploring.\u201d<\/p>\n

He attributes the success of both services to his \u201ccurated playlist\u201d strategy. \u201cTheir clear propositions have allowed a very loyal, consistent base of followers to keep coming in and out of the playlist, recommending and requesting shows and movies they love. The more fans that come in, and the more time they spend, the better our ratings.\u201d<\/p>\n

Plus, Himatsinghani adds, these classic movies and TV shows \u201chaven\u2019t worked on the pure SVOD plays. If they\u2019re available they are scattered\u2014some on one SVOD service, some on others. And they are so deep down on the pages, even if a thumbnail pops up, people will say, I\u2019ll watch that later, [for now] I want to watch Narcos\u00a0<\/em>or House of Cards\u00a0<\/em>or Bodyguard<\/em>. On-demand works best for the latest top-of-mind content. Our curation works best on a linear playlist.\u201d<\/p>\n

FOREIGN FARE<\/strong>
\nAlexandre Muller, managing director of TV5MONDE Asia-Pacific, has also seen his business grow over the last year. \u201cDuring the course of 2018, our distribution in the region has increased by an additional 12 million subscribers on traditional pay-TV platforms,\u201d Muller notes. \u201cThe Indian sub-continent alone represents 50 percent of this growth, the other half coming mostly from mature markets (South Korea and Japan), traditional pay-TV markets (Taiwan) and emerging markets (the Philippines and Indonesia).\u201d<\/p>\n

Via pay-TV platforms, TV5MONDE reaches 102 million subscribers in the region, Muller says, plus another 250 million via mobile TV services.<\/p>\n

\u201cUnlike most players in Asia, we did start our digital journey a long time ago, back in 2002,\u201d Muller says of what has contributed to the company\u2019s success. \u201cA lot has already been done to meet the evolving ecosystem\u2019s requirements and needs. It is mandatory for us to build and maintain our relevance with the different business models available. Having a strong SVOD catalog and regularly reinforcing it is a way for us to close the loop and make our global offering even more relevant to our partners and subscribers.\u201d<\/p>\n

A first-time attendee at APOS this year, Canada-based Gusto Worldwide Media is eager to expand its Gusto TV service in the region following a launch in Singapore on StarHub. Chris Knight, president and CEO of the company, recognizes the challenges of the linear channel space globally, but sees more opportunities than obstacles.<\/p>\n

\u201cWe\u2019ve had great conversations with people who understand the subtleties and the intricacies, whether it\u2019s in Korea or Vietnam or China,\u201d Knight says. \u201cWe\u2019re looking to create partnerships with people in all the different markets we want to get into.\u201d<\/p>\n

The company is being open-minded in its expansion plans, opting for a variety of different routes to market, well beyond just a traditional carriage deal with a pay-TV platform. \u201cWe have branded blocks that we\u2019re talking to people about,\u201d Knight says. \u201cThere are conventional content sales, which we\u2019re always keen to do. We would like to embed our content on telephones. We would like to have our content seen on refrigerator doors as they start rolling out 4K screens, as they have now in Korea.\u201d<\/p>\n

CONTENT WAVE<\/strong>
\nKnight is also looking to produce within the region, given the rising importance of locally produced fare for both pay-TV and OTT players. And everyone is acutely aware of Netflix and Amazon\u2019s regional ambitions. Netflix has been spending across the region, including in India, Korea and Japan. Amazon has focused its efforts on India and Japan, in both scripted and entertainment.<\/p>\n

\u201cIt\u2019s increasingly clear and obvious how important locally produced programming is,\u201d says HBO Asia\u2019s Spink. \u201cWe made four or five series last year; we\u2019re doing five, six, seven this year. We have great plans to increase the number we do. They get good audiences and have the beauty of never being pirated. And they\u2019re working across the region. A Taiwanese one will work in the Philippines.\u201d<\/p>\n

WarnerMedia\u2019s Turner channels are also producing more in the region, recently expanding into the scripted space with titles like The Haunt<\/em>ed Heart<\/em>, a Taiwanese co-production.<\/p>\n

Indonesia\u2019s MAXstream has set its sights on more original content after releasing the horror series Nawangsih<\/em>, in partnership with Malaysia\u2019s Astro, earlier this year. \u201cWe have a lot more planned that are already in production,\u201d says Johnston. \u201cWe aim to offer digital video content for our customers, as well as empower Indonesian creatives to hone their craft by using our platform to amplify the reach of their work to the wider public.\u201d<\/p>\n

Korean content behemoth CJ ENM picked up a majority stake in European distributor Eccho Rights at the end of last year to further its global ambitions.<\/p>\n

\u201cWe always hope our IP will travel worldwide, even beyond Asia, where our presence is now quite strong,\u201d says Chul-Yeon Kim, senior VP of the global business at CJ ENM. \u201cOur distribution strategy will remain quite unchanged. However, working with Eccho Rights, we are anticipating wider global distribution. We worked together in the past numerous times, most famously licensing the remake rights for our scripted format Tears of Heaven\u00a0<\/em>to Turkey. We hope to come up with new strategies thanks to their abundant network in Turkey and the MENA region.\u201d<\/p>\n

Within Asia, meanwhile, CJ ENM will build on its \u201cexpress drama\u201d strategy, delivering shows for broadcast within 24 hours of the original telecast. \u201cIt is vital to air Korean dramas within 24 hours on Asian OTT platforms,\u201d Kim says. \u201cAnother critical factor that cannot be overlooked is illegal streaming sites\u2014to minimize these platforms it is becoming more important for us to legally distribute our content within a [shorter] time period.\u201d<\/p>\n

Distributing to OTT platforms has been a major success story at CJ, with brisk trade with Netflix, Viu and HOOQ, Kim says. \u201cViu especially has been working with CJ ENM for a long time and is now a very powerful platform in the region. Starting last year, we embarked on a tighter partnership with Netflix, and they are increasing their Korean drama acquisitions.\u201d<\/p>\n

Sabrina Duguet, the executive VP for the Asia Pacific at all3media international, observes that the \u201cinfluence of SVOD in the region cannot be underestimated. The AsiaPac audience is now willing to leave their comfort zone, especially when it comes to drama, and enjoy more edgy and diverse content via the VOD services.\u201d<\/p>\n

Indeed, Duguet reports a boom in the company\u2019s scripted distribution business in the region, building on all3media\u2019s strong trade in entertainment formats in Asia.<\/p>\n

\u201cHistorically,\u00a0lifestyle programming\u00a0has been the driver for us. However, we have seen a move towards\u00a0broader genres, especially within drama. We have also seen\u00a0an increase in regional and second-window deals in specific territories, as well as\u00a0a surge of\u00a0deals for\u00a0our scripted formats.\u201d<\/p>\n

NEXT STEPS<\/strong>
\nThere remains a significant degree of uncertainty hanging over the Asian video business at present, largely because of the consolidation happening on a global level. The big mergers\u2014Time Warner and AT&T, Disney and Fox\u2014have yet to play out on the local leadership front (at least, at the time of writing). There are many questions about how the direct-to-consumer landscape will take shape, should Disney, WarnerMedia and NBCUniversal decide to bring their upcoming platforms to Asia. Amazon and Netflix are spending a lot of money on originals in Asia, which is likely to drive up the costs for everyone.<\/p>\n

Ultimately, some basics of the business are still strong, despite the parade of disruption.<\/p>\n

\u201cAffordable pay-TV continues to win over new customers in India and the Philippines, while the sector remains resilient in Japan and Korea, largely through telcos that have been buying cable and DTH assets and driving IPTV growth,\u201d MPA\u2019s Couto explains. \u201cIn all markets, however, the battlefield is now broadband, either as a complement or replacement for existing services, contested by incumbents and new entrants alike.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

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