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AXN Network has recently created a new position to focus in its biggest growth market. Sunil Punjabi has been appointed as the business head and will be handling AXN and Animax in India.
Punjabi will lead the team in developing the go-to-market strategy for new channels as well as oversee the development, acquisition and production of a content mix for SPT’s networks in India. He is also charged with driving marketing strategies to grow the channel brands and to pursue further distribution opportunities.
In an interview with Indiantelevision.com‘s Ashwin Pinto, Sony Pictures Television Networks Asia executive VP, GM Ricky Ow talks about the growth prospects, particularly as India enters the digitisation era.
Excerpts: |
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Q. Has India become more of a priority market for SPT Networks Asia in the wake of an economic slowdown which has affected other Asian markets more like Japan and Singapore? |
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Q. So is India gaining importance in terms of business for SPT? This year we’ve invested in research and made a big effort to understand the change in the Indian viewers in the context of the rapid changes in the Indian pay TV landscape with digitisation and the huge increase in new players entering the market. |
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Q. What does the research show so far as AXN is concerned? Consequently, we have kept this in mind as we programme, schedule and promote the channel, which has helped us maintain AXN’s position as the No.1 English GeneralEntertainment channel in India despite the tremendous competition. |
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Q. Is that why AXN Network has created a new position and appointed a business head to run the India operations? |
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Q. In India we are seeing more players entering the English entertainment space due to anticipation of digitisation. How will this impact viewership?
Digitisation will offer the consumers more choices not only in the number of channels but also in the quality of their viewing experience which was not possible with the current analogue system. We are already seeing some of the impact of digitisation in some of the semi-digitised metros like Mumbai and Delhi where viewers are spending more time with the genres of their choice as well as heading straight to their favourite channels rather than having to surf through channels to get to their final destination.
In a fully digitised world channel brand recognition and what they stand for will become paramount. Fortunately the AXN brand is still very much loved in India and we have become synonymous with the action genre which continues to be extremely popular in India. |
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Q. Are you strengthening your localisation strategy?
So we’re not relying on acquisition alone for tent pole programming. Our original productions enable us to have better control of our own fate, the relationship we have with our viewers and key stakeholders and partners. |
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Q. Are content costs escalating with more demand for content and how do you judge whether or not a property is worth an increase in price? |
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Q. AXN Beyond was re-branded as beTV across Asia. What prompted this move?
beTV was previously AXN Beyond. A very well focused channel dedicated to fans of sci-fi, paranormal and horror programming.
We made the strategic decision to rebrand AXN Beyond because we wanted to build a mainstream Englishentertainment channel that appeals to a wider audience. One that can be a complementary and companion channel to AXN and allowing us to offer a more complete portfolio of English entertainment channels. beTV thus offers easy viewing and engaging entertainment, a place for viewers to chill and unwind much like their favourite hang-out café or hang-out joint. |
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Q. Are you launching this channel in India or are you waiting for digitisation to take concrete shape? |
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Q. How is SPT Networks Asia leveraging HD and 3D and how do you see them enhancing the TV viewing experience?
Our distribution in India is much wider than the top 10 key cities, so the plan to roll out HD is a massive effort for us. In the US, Sony Corporation together with Discovery Communications and Imax Corporation has launched the world’s first and only 3D channel – 3net.
For us, the key for launching HD and 3D is finding the right timing and formula that works for us. |
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Q. Has the pay TV business across Asia been hit by the slowdown or are consumers still willing to pay a good price if they see value?
We have also continued to see growth in our advertising business as pay TV is one of the more cost effective advertising mediums for marketers. AXN not only provides a quality environment that enhances advertisers’ brand image but also appeals to and reaches a very desired audience – the SEC A and SEC AB. Our audience is less affected by the economic crisis and continues to have considerable spending power, which is why it is important for marketers to continue investing with us. |
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Q. In the US, new media is seeing people spending more time watching shows online rather than on the TV channels. Is this a challenge you are starting to face in India and Asia?
The good news for advertisers is that pay TV, in spite of the wide choice available, is still less fragmented than the Internet and offers a well targeted, distinct brand environment for marketers to select. Pay TV brands command loyalty amongst viewer who have been relying on pay TV brands for the past 15 to 20 years and we believe they will continue to do so especially as shared family |
Category: English Entertainment
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‘India is the biggest market in which SPT Networks, Asia operates’ : Sony Pictures Television Networks Asia executive VP, GM Ricky Ow
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‘For strong ROI in India’s TV biz, price controls must go’ : Fox International Channels president & CEO Hernan Lopez
Price controls are limiting the revenue growth for broadcasters in India as they earn net income of $700 million from subscription after paying out carriage fees of $400 million. Investments in programming are muted and, as a result, India is not able to export television formats and finished content while software, music and animation is travelling overseas.
In an interview with Indiantelevision.com‘s Ashwin Pinto, Fox International channels president, CEO Hernan Lopex says price controls have to go if the industry is to see strong ROI. He also talks about the company‘s growth plans worldwide.
Excerpts:
Q. Do you see India‘s television broadcasting industry growing at the right pace?
Broadcasters in India earn net income of $700 million from subscription after paying out carriage fees of $400 million. This is holding back investments in programming. India, as a result, is not able to export television formats and finished content while software, music and animation is travelling overseas. If the industry is to see strong ROI which would encourage greater investments in programming, then price controls must go.Q. What you are suggesting is that pay-revenues should scale up. What is the ideal revenue mix between subscription and advertising revenues?
It should be in equal ratio, which is what it is in the US. But in India it is heavily skewed towards advertising. Broadcasters generate $2.6 billion a year in advertising. Subscription income is dismally low in comparison.Relative to the size of the Indian economy as measured by GDP, this is only 0.04 per cent, and this ratio keeps declining. By contrast, in Colombia, a country with 1/25th of the population, broadcasters get over $200 million in subscriber fees. That is equivalent to 0.07 per cent of the GDP in Colombia, and that ratio keeps rising – partially due to the efforts that Colombia is doing to fight content theft and subscriber under-declaration.
Q. So India should learn from Colombia and allow its content industry to flourish?
Price controls lead to creative shackles. At Fox we buy formats and content from different markets, but India is not there. This is surely not due to lack of talent, ambition and vision.In Colombia a TV episode costs $150,000 compared to India where an episode costs around $20,000. The turnaround there was the emphasis on creating a dual revenue stream. New channels were launched for underserved audiences. Consumers also wanted content in Spanish and Portugese.
That is because Colombia has a strong system of TV production, has great writers, animators, actors and the country also fights strongly against piracy. In India under declaration, along with controls, means that the broadcasters are getting squeezed.
Q. But ARPUs (average revenue per subscriber) are low in India. How do you make consumers pay more for quality content?
When consumers see that spending more money results in better content, then they will be happy to pay more. In some markets, initially consumers thought that cable and satellite services were not worth paying for. But as more options were added, they realised that they were getting value. I am looking forward to a time when my children, when searching for content, find choices that come out of India. I am keen on buying Indian formats that can be shown elsewhere.‘We have seen double-digit growth year-on-year. We run a profitable business in India that is based on strong fundamentals with dual revenue streams of affiliate and advertising‘ Q. So you are not happy with FIC‘s growth in India?
We have seen double-digit growth year-on-year. We run a profitable business that is based on strong fundamentals with dual revenue streams of affiliate and advertising, which are both showing a steady upward trend. Currently, we have six of our channels in the Documentary and Lifestyle space in India.Q. As a market how is India different from the rest of Asia in terms of challenges and opportunities?
We run our channels in over 100 countries around the globe. While there are big similarities across markets, each has some of its own peculiarities and challenges. I think that the challenge of scarce bandwidth for channels coupled with price control and carriage fees put a limit on the revenue potential. However, India is a land of huge opportunity and with mandatory digitisation in the Metros slated to kick off in 2012, we believe that a very bright future is ahead.Q. With digitisation set to take off in India, do you see the carriage fee structure being rationalised based on the experience in other markets or will disputes happen with big operators like what happened in the US with Comcast?
We believe that digitisation will help all the stakeholders in the business to realise the true value – Last Mile Operators, MSOs and broadcasters.There will be teething issues like in any new technology, but market forces will aid the stakeholders in arriving at an understanding.
Q. News Corp restructured the Fox Networks Group last year. What was the aim and how did this impact Fox International Channels?
The goal was to foster stronger cooperation between various units. As a result, Fox International Channels has strengthened its ties with the US networks in entertainment, factual and sports.Q. Aren‘t you looking at doubling operating profit and reaching $1 billion by 2015?
The gameplan is very simple: to continue to deliver to platforms, advertisers and viewers a portfolio of must-have brands.This is what we call “brands with fans” – and get a fair share of wallet for it. In order to do that, we are investing more in content (both global and local), marketing and our teams.
Q. How much revenue does Fox International Channels contribute to News Corp’s TV business and what growth has been experienced year on year?
In FY‘11, we made a little over $1.5 billion in revenues and we‘re growing at double-digit rates.Q. How do you split up the global market into regions and which are your three biggest markets globally?
We run Latin America and US Hispanic; Italy and Germany; the rest of Europe and Africa; and the Asia/Pacific/Middle East. We don‘t disclose the ranking at the country level.Q. Globally what is the split between subscription and ad sales and which area do you see growing faster?
About two-third of our revenues come from subscription, with the balance coming from advertising, syndication, and other fees. We strive to make all revenue sources grow at the same rate.Q. Pay TV you have said is turning from a “nice to have” to “must have” service. How is this changing the dynamics of your business?
Whereas in the past we programmed primarily shows produced in the US, we are now broadening the scope of our lineup. The aim is to include more local shows, as well as different genres.Q. What challenges is the current economic slowdown posing?
In a handful of cycles we‘ve seen ad revenues decline, but overall our profits continue to increase.Q. Has Fox International Channels done recent research to find out what consumers globally want and how they view your brands?
We are indeed finalising a brand audit in 10 countries as we speak.Q. Digitisation globally is allowing FIC to have more specialised offerings in genres like Crime. How has their offtake been?
Very positive! Fox Crime, for instance, is the number one channel in Italy, surpassing even Fox.Q. Are there any genres that are currently underserved globally? If so, how do you plan to service them?
Our portfolio globally includes entertainment, sports, factual and lifestyle – we‘re quite content with it.Q. What role does sports play in your portfolio as it is a challenge to control costs given the intense competition for rights?
Sports is the ultimate must-have content. But because of it, there is intense competition for rights.We simply must be disciplined in our approach, but we have the benefit of a wide portfolio of channels – includingentertainment channels – that can both contribute to and benefit from having sports in the portfolio.
Q. Globally, how has FIC expanded?
These are exciting times! We now have 1.1 billion cumulative subscribers, and have a presence in 57 offices. I have been to 40 of them.We have added Fox Sports to our portfolio in Latin America, and continue to increase ratings at the National Geographic Channels. And yet there is still so much more to be done.
Q. How difficult is China due to government regulation?
We have a small but profitable business in China.Q. New media is growing globally. Are you launching channels for the mobile and Internet?
We are launching mobile extensions of our TV brands, like the Fox Movies Premium Player in Asia.Q. How is Fox International Channels leveraging high definition?
My goal is to launch nearly every TV channel from now on simultaneously on HD and SD. -
‘With Revenge the studio, network and production company were all on the same page’ : Revenge executive producer Marty Bowen
Next year Star World will air the show ‘Revenge‘. It is about a woman who returns to The Hamptons to seek revenge on those who were responsible for her father‘s imprisonment and death.
Marty Bowen is one of the executive producers of the show. He spent many years as an agent representing talent like Charlie Kaufman and James Gandolfini before surprising the industry and leaving UTA to pursue a career in producing in 2006. Bowen partnered with veteran producer Wyck Godfrey, to create their own production company, Temple Hill Entertainment.
Their first film was ‘The Nativity Story‘ but the big break came in 2008 when they embarked with Summit Entertainment on production of the ‘Twilight‘ movie franchise. The films have made well over $1 billion at the box office.
Temple Hill Entertainment has gone on to make a television show ‘Revenge‘, created by Mike Kelley and starring Emily VanCamp, Madeleine Stowe and Henry Czerny. It is currently airing in the US on ABC.
Known in Hollywood for his solid work ethic Bowen is very much hands on during the production process. This includes the casting decisions. Indiantelevision.com‘s Ashwin Pinto caught up with Bowen to find out more about ‘Revenge‘ as well as the challenges of being a producer in Hollywood
Excerpts:
How did the idea for ‘Revenge‘ come about?
Temple Hill Entertainment the company that I work for had made a deal with ABC. They asked us to come up with some ideas that we thought could speak to audience that we generally like to produce programming and entertainment for. We had always been interested in doing a drama set against the backdrop of The Hamptons for which I am sure there is an Indian equivalent.It is an area where very wealthy people go to for their vacations. It was a world that we wanted to explore. We loved the idea of having rich people coming for the summer interacting with the people who live there the year round. We thought that there was really interesting drama to explore. ABC continued to challenge us to find an interesting story engine that might make it really compelling to have audiences go watch. Through a process of elimination we thought that it might be interesting to loosely use the structure of The Count of Monte Cristo to do that.
You have had a huge amount of success with ‘Twilight‘. What were the learnings from that which you incorporated into this show?
There are certain fundamental themes that one gets to explore in the ‘Twilight‘ series that we have learned from and have tried to incorporate a version of them within the story structure.I don‘t know if I want to be more specific than that but certainly there is a reason why audiences that see ‘Twilight‘ like to see it with groups of people. There is a reason why they enjoy that collective consciousness. We try to learn from that and try to instill the show with some of our elements.
The television landscape is crowded with shows vying for attention. What separates ‘Revenge‘ from the rest of the pack?
The show has a healthy old fashioned storytelling that we have not seen in a long time.The shows that I grew up with included ‘Dynasty‘, ‘Dallas‘ and all those fun soap opera from the 1980s. I think people nostalgically want to tune in to ‘Revenge‘ as they miss those kinds of programmes. At the same time our storytelling remains modern enough to have audiences seem to want to come back again and gain.
As a producer how hands on were you in the casting and creative process for the show?
I was very hands on. Certainly when it came to the pilot as it was an idea that we had generated in terms of finding a writer, picking a director and all levels of casting we were in all the meetings and were very active.But at a certain point once your baby learns to walk, you have to let them bump into furniture on their own. So we tried to keep a healthy distance to allow our writers to generate stories and write their teleplays in the best environment they can while at the same time steering the ship in the right direction.
‘We have a handful of very smart people at our company who constantly throw ideas against the wall to see if something sticks‘Was it a challenge to stick to the budget and production schedule?
It was at the very beginning absolutely. You are all learning to work with one another for the first time. You have to have a tremendous amount of energy to launch a show. This only becomes more efficient as you get into the flow of things. So it was a challenge at first but we have managed to figure it out in a way that it runs very smoothly.Could you talk about the talent involved with the show?
Let me start with Mike Kelley who is our writer, our showrunner. We were fans of his and were aware of the things he had written over the years. I loved his show ‘Swing Town‘ which was autobiographical and was something he really slaved over.I saw how good his writing was and how good that show was. When this idea came about he was literally at the top of our list of people who we thought could do the show. Actor Emily VanCamp is someone who is sympathetic. She is likeable but is also someone that you believe is capable of vengeance. Phillip Noyce made the pilot and he is one of the finest directors in Hollywood. He has made movies like ‘Salt‘.
As a producer how many scripts and ideas come your way in a month and what qualities do you look for?
We look at hundreds of ideas a month. We come up with dozens of ideas on our own from reading books, and watching other shows, documentaries, reading articles. We find themes that we are interested in.That is the nature of our business. We have a handful of very smart people at our company who constantly throw ideas against the wall to see if something sticks.
This year some high profile shows like ‘Charlie‘s Angels‘ bit the dust after a few episodes. What separates a successful show from a failure?
I think that there has to be something that an audience can connect with. I think that it is great to have a big title and it is great to have an intellectual property that people are familiar with.But you ultimately have to be engaged in what the characters are doing. I cannot speak about ‘Charlies Angels‘ as I did not watch the show but this factor is what separates great storytelling from average storytelling.
Why are channels impatient in terms of letting a show find its feet?
Many times they are impatient. But you can also point to many other times when they have been the opposite.Some of my favourite television series are shows where the networks believed in the show but which the audience did not get at first. Later on the audiences went on to love those shows. I think that it goes both ways.
In terms of how the production process works what is the difference between film and television?
In film there is beginning, middle and an end. Television never ends. You could be finishing one episode, editing another, starting production on another. A smaller budget project could more challenging than one that costs hundreds of millions of dollars.In 2006 you left your job to establish a producing partnership. What prompted you to shift track?
I wanted a creative outlet. While I loved what I was doing earlier I felt like working as a producer. I was fortunate to be able to get into a production partnership with my good friend Wyck Godfrey.How did you get your break with ‘Twilight‘?
We had worked with ‘Twilight‘ director Catherine Hardwicke earlier on ‘The Nativity Story‘. We had also worked with the head of production at Summit Entertainment Erik Feig. They wanted to make the movie and so we came on-board.As a producer what is the main challenge you face?
You have to make sure that you complete the thought. You have to ensure that the idea becomes a script which then translates into a movie.Assembling a project is a challenge. The different pieces have to come together in the way that you want it to. ‘Revenge‘ was one of those times where the studio, the network and the production company were all on the same page. It was a true collaboration.
How challenging is it to juggle different projects at once?
It is tough. However I am fortunate in terms of the people that I have working with me. I have people who are capable of picking up the slack.Do you keep the family audience in mind before giving the nod to a project?
For us it is story first and the audience second. We focus on trying to tell a strong story and then look to see which audience the project will appeal to. -
‘We will bend over backwards to be user friendly to new clients from India’ : Natpe president, CEO Rick Feldman
Natpe, the US-based media marketplace organiser, is now turning its sights toward the critically important markets in South Asia. It is working with a Mumbai-based team of Murtuza Kagalwala overseeing business development to raise its profile with Indian buyers and sellers of content and to attract more Indian and Asian attendees to both Natpe Miami and Natpe Budapest.
Indiantelevision com‘s Ashwin Pinto caught up with Natpe president, CEO Rick Feldman to find out about Natpe and what it offers Indian companies.
Excerpts:
Could you talk about the services that Natpe offers the media and entertainment industry?
Natpe is the global content marketplace for a digital world. It is strongly committed to being the destination for TV programme buyers and sellers. Evolving to meet the demands of a changing media landscape, Natpe delivers a first look at fresh content before Mip and the LA Screenings, giving industry leaders a jump-start on monetising their projects.Now, in Miami, a major international destination, Natpe is a catalyst in the content revolution – providing thousands of chances to make a deal. Celebrating over 45 years of service to the ever-changing international televisionindustry, Natpe continues to redefine itself and the services it provides to meet the needs of its members. Today‘s industry encompasses more than ever before and Natpe has remained flexible in its effort to encourage and support the progress of the industry and all of the platforms it now serves.
What has remained constant is Natpe‘s commitment to keeping the industry appraised of the changes occurring daily in the global media environment.
Natpe implements its mission by providing the multiplatform video industry with education, networking, professional enhancement, vibrant business environment through Markets and technological guidance through year-round activities and events. The organisation also offers a full complement of online services including access to a database of industry executives to anyone interested in learning more about the digital video industry.
How has Natpe expanded on its marketplace Content First?
After operating independently for 15 years, Discop East was acquired by Natpe in 2011 as part of a continued strategy for expansion within the international arena. The market has now become Natpe||Budapest and will take place from 26-28 June, 2012.What prompted the move from Las Vegas to Miami and how has this helped?
After 10 years in Las Vegas we felt it was time for a change. Miami Beach and the Fontainebleau is an international destination that is much better for our international attendees and a welcome change to our US attendees.What is the theme of Content First next year and how is it different from previous years?
Natpe||Content First is always our theme – to feature and support the creation, distribution and funding of original global content and it will remain the same in the coming years as well.‘What has remained constant is Natpe’s commitment to keeping the industry appraised of the changes occurring daily in the global media environment‘ What sort of participation is expected for next year‘s event in Miami?
At Natpe 2012, we expect over 5000 attendees to Natpe Miami. About 70 per cent from the US and Canada, and a cumulative presence from 70 countries. We are a market that is smaller than Mipcom but larger than Budapest.Many of the sellers that are at Mipcom are also at Natpe||Miami, but we have more content being bought / sold in the US / Canada / Mexico and Latin America. We can‘t say what content is most in demand, as each platform has unique needs. But, at Natpe both packaged content and format content is bought and sold.
As we are an international, multiplatform market, we have many people from the ad and digital world at Natpe. So in addition to buyers and sellers, we have producers/agents and all matter of creative/funding/and distribution types at our market.
Who are some of the big players who will be present?
There will be companies from various sectors participating at Natpe 2012, some of the key industry players which make their presence are as follows:Traditional Entertainment: ABC, CBS, Comcast, Discovery, FremantleMedia, Fox, Globo, Hearst, Lionsgate, MGM, NBCUniversal, Shine Group, Televisa, Univision, Venevision, Warner Bros.
New Platforms: AOL, Google, YouTube, Yahoo!
Investment: American Express, Nomura Securities, Credit Suisse
Agents: APA, CAA, ICM, WME, UTA
Ad Agencies: Carat, Digitas, Group M, Mediaedge:cia, MediaCom, Ogilvy
New Media: Facebook, Demand Media, Hulu, iTunes, Netflix , SeamBI, Stickam, Tremor, YuMe
Technology: AT&T, Adobe, HP, Intel, Microsoft
Electronics: LG, Motorola, Panasonic, Sony
Research: ComScore, MediaLink, Nielsen, PricewaterhouseCoopers, SNL Kagan, Rentrak
Global Brands: American Express, Audi, IKEA, P&G, Pepsi Co., Saban Brands,
Subway, Wal-Mart
The list above is just a representation of the attendees, where Natpe is expecting over 5000 attendees from all over the world in 2012. Attendees from North America, Latin America and South America, Europe, Asia and other parts of the world will be seen for various engagement purposes like joining, attending, exhibiting, advertising, networking, experiencing and sponsoring at Natpe.
There are buyers here in the States that will not be at Mip and for the Indian market we think that Natpe||Miami is a better fit than the two events in France.
Could you give an idea of the effort and time it takes to organise each edition? How far ahead do you have to plan?
Planning for Natpe||Miami and Natpe||Budapest is a year-round activity. We look to build each year upon the growth and opportunities we see at each market.Whether it‘s booking speakers, working with programme distributors to book their space or developing new partnerships with media around the globe or keeping our web sites fresh and up-to-date, there is always something to do.
To what extent have you and your clients been affected by the on-going economic downturn? The US is one of the worst hit countries along with Greece and Spain.
Yes, the world is grappling with many economic issues…but positively the ad spend in the US continues to be strong.I think that so far the economic downturn does not seem to be hurting the transactional video market place. I am not sure why, as one would think it might. Our numbers are consistent with last year, so for now, so far so good!
How is digital impacting the business and what steps has Natpe taken to address this?
All over the world, the distribution of content is a major topic of conversation. Band width and technology is only going to make the opportunities greater, certainly in India too. Each country will get to various places at different times, but there is no doubt that more video content that people want to watch and pay for will be created in the near future than ever before.What is the USP of Content First vis-a-vis other markets like Mipcom, Nab and ATF?
Natpe delivers a first look at fresh content before MIP and the LA Screenings, giving industry leaders a jump-start on monetising their projects. Now, in Miami, a major international attraction, Natpe is a catalyst in the content revolution – providing thousands of chances to make a deal.Natpe||Miami is the only global marketplace for the buying and selling of content that takes place in the US each year. Nab is not a marketplace for those involved in producing content. It is instead a place to go to see recent advances in the technology of broadcasting and for channels to purchase equipment.
ATF is primarily a market in Asia for Asia – as we have stated Natpe is the only global marketplace based in the US that brings buyers and sellers from around the world.
How detailed is the seminar at Content First?
We offer more than 50 sessions with over 150 speakers across the three day conference which runs along with the market.The focus is on the creation/distribution/funding of original content. Most of the speakers are from the US. However we also have speakers from Latin America and Europe on the panels.
Could you talk about the importance of India for Natpe?
I would rather talk about how India will benefit from Natpe 2012 and going forward at all Natpe platforms.From an Indian broadcasters‘ point of view, they will meet all the world‘s content owners and will learn how broadcasters all around the world are operating in this creative and economic climate. There is also an advertising and digital track that will provide ideas about how best to monetise content.
The idea of the market is to see what is happening around the world, especially in the US/Canada/Latin America for the rest of the world. The South Asian market is a small but growing part of our business. But India especially has so much potential here and around the world because of your production infrastructure and common language.
The idea of the market is to see what is happening around the world, especially in the US/Canada/Latin America for the rest of the world.
What is the strategy going to be to create awareness in India for Natpe?
We have hired Murtuza to help us navigate the Indian market and provide specific outreach and information that will help those considering attending from India see the value of this market and conference.Contentino Entertainment is a content management and acquisition company owned by Murtuza Kagalwala. Murtuza had approached us a few months ago via email, and impressed us well. India is a big place and far away, and Contentino will help us extending our relationships with content sellers, buyers, content aggregators and other interested audiences in the country.
With having someone like Murtuza with his vast experience in this digital field, talking us up is a positive for us as he is there and well respected.
Some Indian broadcasters go for the LA Screenings. How will a presence at Natpe as well benefit them?
NATPE||Miami is the only global marketplace for the buying and selling of content that takes place in the US each year. LA Screenings is primarily an opportunity for the major US studios to showcase new programmes about to launch on U.S. stations. It is not a comprehensive market as only some of the US and very few of the international program distributors are at the screenings.For Indian/English content, I would think that it would be wrong to ignore the largest TV marketplace based in the US. We have the only market place in the largest market in the world and deals get done. You never know what you miss when you don‘t come. It is THAT meeting that you have with someone you didn‘t even know existed that is the magic at Natpe.
In the past what sort of participation has Natpe seen from India and what kind of business growth are you looking for from here?
In the previous years, Natpe saw participation from leading players like Star India, Shemaroo, Miditech, Accel Animation Studios, Cellcast Asia Holdings amongst the other few, whereas this year we are looking at more attendance from across industries like, film, broadcast, digital etc for both our summits combined Miami (Jan 2012) and Budapest (June 2012).And with respect to business growth, India as a country, for sure, we believe, has immense potential for its ever growing innovatively conceptualised content globally, where the fraternity attending, exhibiting have the best of opportunities to meet representatives from varied platforms from across the world, utilising our arrangements available to facilitate the best deals during these three days.
You also have Natpe Budapest. Will you be looking at doing an event in Asia for the Asian market?
We currently do not have plans to set up an expo in the Asian subcontinent. -
‘Our revenue target is to grow upwards of 30%’ : Star India senior VP, GM English Channels Saurabh Yagnik
star India is aggressively building a wide portfolio of English entertainment channels. Its aim: to capture specific needs of different viewers.
Backed by a rise in audience share, Star is eyeing a revenue growth of 30 per cent from its English channels.
In an interview with Indiantelevision.com’s Ashwin Pinto, Star India senior VP, GM English Channels Saurabh Yagnik talks about the strategy the network has adopted in growing the consumption for English entertainment channels.
Excerpts:
After Star India started overseeing the operations of the English channels, what has been the difference?
The English channels got managed in October 2009. That was when we had a transition from Hong Kong to India. We set up a full team to look into content, marketing and positioning of the channels. With our better understanding of the local market conditions and what people watch, we have added value to the viewer. This is reflected in how our category shares have grown.Could you elaborate on the growth of these channels, particularly with reference to this year?
We have seen results coming from the momentum of the things we did last year. We also launched more channels to strengthen the portfolio; HD feeds for Star Movies and Star World were recently launched. We upped the ante for marketing on Fox Crime and FX. We are going about aggressively building a portfolio that caters to specific viewer needs in various ways. We use this to build consumption and grow the share of Star as a network.Even in revenues?
The pace of growth has been fantastic. Our target is to grow upwards of 30 per cent. This is the kind of momentum we are looking at.What are the challenges before English channels at this point of time?
Growing consumption for English content is the biggest challenge; it is also an opportunity. We tackle this by driving the relativity and relevance of content. You are seeing more on-ground led activities for promotions. Last year we aired the Oscars and did a 360 degree campaign. This time we did the James Bond festival and had a 360 degree approach. This helped the viewers relate more. A similar thing was done with ‘Avatar’ to drive awareness of Star Movies and we used Star Plus as well for the film.We have done local shows on Star World like ‘Koffee With Karan’ to drive viewership. We are also doing localised promotions around shows. For Masterchef Australia, we brought a jury member down here. Among other things a live chat happened which was well received by the audience. We put legs to our promotional strategy to ensure that people find content that is relevant and relatable. Then you intersperse it with aggregator shows like Koffee With Karan. This is how you break barriers for English consumption.
‘Primarily, Star World is a destination for Hollywood shows. That is the DNA. All local content will have to be as exclusive and exquisite as Hollywood aspirations. We will be selective and bring in what fits into our criteria of exclusivity ‘Do content costs present a challenge to the business model?
We have been noticing that in some cases there is irrational pricing for content. This might not sustain itself. What gives us comfort is that we have long term strategic relationships with a lot of studios that gives us depth and width of content. While there are short term challenges in terms of costs going up, we managed to mitigate some of those risks through our long term contracts.With more players coming in, how is Star Movies fine-tuning its strategy to hold on to its position?
Star Movies positions itself not just as a destination for movies but as a destination for Hollywood. The programming strategy is about making content relatable and relevant which means having differentiated and sharply focused festivals throughout the year. We have access to the best titles from various studios. The aim is to amplify properties like a ‘Superheroes Festival’ by adopting a multi-pronged approach.Also, there are a huge amount of online viewers. We will use this to market and talk about our properties.
Is viewer loyalty growing for this genre or is it still very much title driven?
Viewership is largely determined by the titles that are placed but the differentiation that Star Movies brings in is through its premieres and sharply crafted festivals. This helps ensure a very sharp and insightful promise and we are able to reach a considerable set of viewers by going beyond just titles.Is HD the future for this genre? Do all English movie channels need to move towards it?
The future will be beyond HD as well and there will be more innovations. The viewership will move towards HD because of the viewership quality. However, we are not stopping at that as Star Movies is always inventing and innovating and will bring in the latest technology for its viewers.By when do you expect to breakeven on the HD feeds?
They are a premium offering. You need an HD STB and an HDTV. We are driven by advertising and subscription. The idea is to breakeven in the second year.Tam data shows that Star World has increased its share despite new entrants. What have been the reasons for this?
A lot has happened on Star World. We started with the stripped format on the weekdays with a sharp promise and focus. This helped grow appointment viewing. We did exclusive, glamorous local shows like Koffee With Karan. This aggregated audiences. Our digital engagement and what we did in the social media space has helped us build a loyal set of viewers. They are excited about watching us.Which are the genres that are working the best for you? Sitcoms and crime dramas work very well as does local programming. ‘Masterchef Australia’ is also performing well. The range of shows that do well is broad based.
What role does localisation play for Star World?
Primarily, Star World is a destination for Hollywood shows. That is the DNA. All local content will have to be as exclusive and exquisite as Hollywood aspirations. We will be selective and bring in what fits into our criteria of exclusivity. While localisation is important, it is not our backbone.Is non primetime becoming important?
Yes! We see viewership here as well. The scheduling is based on viewership patterns so that we get unduplicated audiences across time bands for various shows. We slot shows based on viewer profile. We run omnibuses of our weekly offerings on the weekend. So people can do a catch up. This allows more viewers to watch us outside primetime as well.Could you talk about the increase in marketing innovations?
There has been a significant step up in this area. For instance when ‘Community’ was launched, people got a customised message explaining the show by star. When we launch shows we talk to people asking them their views and why they want to watch it. We put this as a part of our promotions. We could have stars of a show coming down to India. This is an interesting possibility. On Star World, you have the biggest shows launching.We are doing a high decibel campaign around ‘Terra Nova’ which is a sci-fi show. The Torrentz property on weekends is to bring shows as close to the US airing date to India. This is how we build Star World as the destination for the best American shows fresh from the US.
Are you expanding distribution beyond DTH for FX and Fox Crime?
Digital is the right place. This is where a large part of consumption of English GECs is going to happen. The kind of audience that we target is affluent and will move towards DTH as the viewing experience there is better. That is where people consume more. We believe that digital is the right way to go. We don’t have analogue plans for them.Is the English GEC big enough to have channels according to TG and audience profile?
We have had a different strategy based on our own insights. Star World has a healthy portfolio. Fox Crime is not based on a demographic cut or of the TG; it is based on the fascination that people have for a particular genre. With FX, we looked at catering to the evolved sensibilities of the more discerning viewer. Our strategy is based on viewer behaviour and mindset.As more entrants come in, how much of a challenge is fragmentation?
There is enough penetration but lesser category share. We are the second largest English speaking population in the world. But the share of English GECs is nothing to talk about in relation to that. With more affluence, education and people becoming more global in their mindset, the consumption of English content will only grow. Also disposable incomes are growing and the propensity to consume branded products is the highest in this category. -
“We will be looking into more original productions that are local and relevant to Indian audiences” : Sony Pictures Television SVP, GM, Networks Asia Ricky Ow
Sony Pictures Television is on a major expansion course in Asia. It has widened its portfolio with the launch of a new channel, ONE. AXN HD has also launched in several markets.
The key strategy is to up localisation in language, on-air presentation and local original production so as to make the channels more relevant.
In an interview with Indiantelevision.com‘s Ashwin Pinto, Sony Pictures Television SVP, GM, Networks Asia Ricky Ow elaborates on the company‘s brand positioning, growth, challenges and expansion plans.
Excerpts:
How would you describe the performance of SPE Networks Asia over the past couple of years?
The past few years have been rather busy ones for us at SPT Networks Asia. Not only have we maintained AXN as the No. 1 English general entertainment channel (GEC) in our key markets in the face of increased competition, we have also launched AXN HD services in several markets.In addition, we have expanded our portfolio by entering the Asian GE content space with the launch of our new channel, One. In a nutshell it has been a good couple of years with strong growth and expansion.
What are the priorities and key strategies for it going forward?
The key priorities for us moving forward are expanding our Asian content offerings and gaining a wider share of the audience by increasing localisation in language, on-air presentation and/or local original production to increase relevance of our channels.To what extent was the company affected by the economic downturn?
The impact was not as great as we initially feared because pay-TV in general is relatively resistant to economic downturns. This is because during such periods, consumers actually spend more time at home and watch more pay TV.While there was some loss in ad sales momentum, it was nothing too drastic. We have always had a strong culture of prudence and the downturn actually provided us a great opportunity to further build our brand and engage our audiences by revisiting some of the basics in how we connect with them.
Are things back to normal now or are some Asian markets still feeling the impact?
Things went back to normal very quickly in Asia. Many economies are experiencing good growth and there is a strong momentum at this point in time.How has SPE Networks Asia grown the number of feeds over the past couple of years?
We now operate five linear pay TV channel brands (AXN Asia, Animax Asia, SET, AXN Beyond and One) and a total of 17 feeds.“There is the opportunity to grow our business in India, but we are unable to comment on whether we are launching new channels in this marketplace right now”Could you talk about the growing importance of HD for SPE?
HD is obviously the new standard for broadcast TV. We have seen huge penetration of HD TV sets in many markets, some more than others. This will be the de facto standard in a few years time.AXN is a channel brand that is very relevant to early technology adopters and we have already launched AXN HD in Korea and several Southeast Asian markets. We have plans to bring it to India as well.
When he was in India, Sir Howard Stringer mentioned the importance of 3D for Sony. What role will this technology play in your broadcast business in the coming two to three years?
3D is key to the SPT business globally and there is already an HD content channel launched in the US named 3net. We will explore how we can bring that channel to Asia.The last time we spoke you had mentioned revenue leakage from piracy being a concern. Is the growing digitisation in India addressing this problem?
Leakage has been and continues to be a concern in many Asian markets. Digitisation and the efforts of industry bodies will help to address the problem. But it will take time and there seems to be no simple solution.There are synergies that exist between the broadcast business and other business verticals of Sony in India and across Asia. Could you talk about how this area is being exploited?
One great example of this is Sony Style. It is a lifestyle and gadget magazine programme that is not only highly entertaining, but also showcases the great breadth and depth of Sony offerings to consumers ranging from movies, TV, games, music and electronic gadgets.We are seeing more players enter the English GEC space in India after a long time when there have been just three players. What impact will this have?
We believe that competition can lead to two outcomes. The first is the rising cost of English GE programming, which is something that everyone has to watch out for. In addition, there will be improvement and increased excitement for English GE content. Increased competition is not necessarily a zero-sum game.With greater competition and more choices, the overall English GE viewership can expand and everyone wins.
From a programming perspective is AXN‘s template going to stay the same or are you looking to innovate?
The AXN formula is a winning one and we do not see the need to change it. However, it is necessary to continuously innovate within the channel brand parameters to bring AXN closer to viewers in India.An example comes in the form of AXN‘s Minute to Win It for India, which serves to localise the entertainment experience on the channel and make the content more relevant for Indian audiences.
Other English channels have introduced subtitling. Is AXN also doing this?
AXN currently airs programmes with English subtitles for the benefit of viewers who might face difficulty deciphering words spoken with different accents in shows.With CBS having launched channels in India, how will this affect deals you do with them? Will new seasons still be available?
We are unable to disclose or discuss any contractual terms agreed with CBS. But viewers can rest assured that top shows such as the CSI franchise will continue to broadcast first and exclusively on AXN in Asia.On the localisation front, how has the response been to Minute To Win It India‘?
In India, AXN‘s Minute to Win It is in its debut season and has had a relatively slow start. The show is gaining audiences and is doing well on the whole. There is definitely room for improvement and we have high expectations of the show.We are glad that Indian viewers have readily come forward to offer their honest feedback on Minute to Win It, without our having to ask. This points to real excitement and following for the show and format. We will be taking some of the suggestions to make Minute to Win It even better next season.
What is next on the local front?
We will be looking into more original productions that are local and relevant to Indian audiences and ones that can differentiate our channels from the competition..You devised a social media strategy to push this show. How effective is social media in communicating AXN‘s brand message?
Social media is especially useful not just in ‘pushing‘ AXN‘s brand messaging but more so in engaging viewers and receiving their feedback. It has been an excellent experience getting a feel of the passion of viewers who have offered their opinions of the show. Going forward, we will definitely leverage social media more.Social media means that brands lose control to an extent in terms of how information filters down and is disseminated to the consumer. That makes some companies insecure. How does SPE Networks Asia view this medium?
I believe the reactions of consumers cannot be controlled no matter which medium of information is shared through. We believe in facing up to audiences‘ tastes, preferences and reactions, as we are serving them after all.If responses received are negative, then we know we have to improve. Vice versa, if feedback is positive and we can continue in the direction which we know is right. We are never afraid of negative reactions and welcome all feedback.
Only when viewers engage with our channel brand do we understand them better and social media has enabled us to do this like never before and we will continue using it.
How is AXN perceived as a brand by viewers and advertisers? Has the perception changed over the past few years?
The perception of AXN as Asia‘s home of Action and Adventure has remained strong and the channel continues to be a premium brand in the marketplace with an extensive reach across the region.However, the definitions of ‘Action‘ and ‘Adventure‘ have probably evolved over the years. As audiences have grown increasingly sophisticated and mature in their choice of content, ‘Action‘ and ‘Adventure‘ may no longer be the same hard-boiled, head-on action in AXN programmes of yesteryear.
Instead, we find viewers embracing values such as courage, determination and irreverence embodied by key characters of popular AXN shows such as the CSI franchise, NCIS: LA, Leverage and Justified. This is also true when you consider the great support and following for local heroes from across the region who embark on the race of their lives in AXN‘s original production, The Amazing Race Asia.
What work has been done in the new media area by SPE Networks Asia in other Asian markets like Taiwan and Korea and what have the learnings been?
Online content from AXN‘s The Amazing Race Asia has been available to consumers across Asia and we have even launched the first episode of the most recent season online prior to its premiere broadcast. We are very encouraged that it has not cannibalized viewership but has instead grown the base of fans in the region.For SPT Networks Asia, we operate the Animax Mobile 3G streaming service as well as online catch-up TV for selected channels and programmes in various markets. We have found that these work for the youth who tend to be more active online and on mobile.
Is SPE Networks Asia going to launch more channels in India like AXN Beyond with digitisation growing?
There is the opportunity to grow our business in India, but we are unable to comment on that right now. -
‘In a genre that has seen a drop, Star Movies holds over 40% share’ : Star Movies& Star World VP Jyotsna Viriyala
It has not been an easy year for Star‘s English channels. In a nine-player nine scenario, Star Movies, however, has weathered the storm and held on to its leadership position. Fine-tuning its strategy this year, the channel supplement its library with locally acquired titles.
Star World has created horizontal programming bands to suit the viewing habits. The channel, ranked second in the genre, has still to plug a few gaps in its programming.
In an interview with Indiantelevision.com‘s Ashwin Pinto, Star Movies and Star World VP Jyotsna Viriyala elaborates on Star‘s plans for fortifying the position of the two channels.
Excerpts:
How has Star Movies fine-tuned its strategy this year?We are supplementing our library with locally acquired titles. We will also be more aggressive in our marketing.
Is this being pushed due to audience fragmentation with new entrants coming in?
Fragmentation ate into our nearest competitor‘s share, not ours. We managed to hold on to our share in a category that has seen a drop, thereby increasing market share. We currently hold over 40 per cent of the share in a nine-player scenario.
Which properties have delivered?
Our drivers are the ‘movie of the month,‘ the 9 pm and the 11 pm bands. Over the years we have ensured that the right mix of titles are acquired and made available on time. We have also focussed on creating appointment viewing.
Is there a different strategy in acquiring big titles this year?
The big releases include Alice In Wonderland, Percy Jackson, Australia and Avatar. The split between our library content and premieres remain largely unchanged in the coming year. Programming wise, the top three players are all playing the same combination of premieres and library content.Of course, the proportion would vary depending on the specifics of strategy and budget. Earlier, Star Movies and HBO played in this space. Pix joined the race effectively over the last one year with some big premieres.
Have you created new blocks recently to cater to different TGs?
Every title airs at a time relevant to the TG available. No new blocks have been created, but we continue to have our 11 pm festivals and movies of the month.
‘In case of Star World there are some missing pieces and we do have plans in place to fill them shortly. Our choice of drama and sitcoms is being fine tuned‘
What strategy is being followed to reach viewers in the smaller towns and cities?
Our key audience resides in the metros and we are reaching them effectively. At the same time, there is the potential to reach out better to people across 27 million + towns. It is clear where we need to focus currently.
Last year you said that the focus would be on communicating to advertisers that they should spend more on this genre compared with English news channels…We met with clients and embarked upon a ‘myth busting‘ exercise. All clients were positively surprised at the findings and they were going to ask their agencies for more information and re-evaluation of plans.
So that exercise did its job then. But it‘s a perception change exercise and when perceptions are so deep-rooted, it will take time for substantial results to start showing. But the good thing was that all clients were very receptive to the information.
Have viewers‘ perception of Star Movies changed over the years?
Research shows that Star Movies rates very high on perception and we believe that this has strengthened over the last one year.
Is there a lot of innovation in terms of the packages that Star Movies and Star World offer advertisers beyond the 30-second spot?
Yes. We invest resources, monies and time into providing solutions to our advertisers. For all substantial spenders, we extend huge value.
What new acquisitions were made for the two channels?
For Star World, we recently acquired the second season of Moment Of Truth and Masterchef Australia. We are in the process of reviewing content that was shown at other markets to make our selections.On the movies front, we signed a deal with Disney for films. It is a package of new releases and library content. We are in the process of closing the deal with another leading studio.
Could you talk about the programme restructuring that Star World went through last year?
The restructuring of the schedule was done with the objective of creating appointment viewing on the channel. We created horizontal programming bands to suit the viewing habits of the viewer better.We have seen a 24 per cent increase in viewership after this change over the previous quarter. If we replicated the scheduling pattern that is followed in the US, we would not be able to build viewing habit or attract newer audiences.
Data shows that Star World‘s share has only grown marginally and it is still a clear number two. What is the missing piece in the game plan to catch up with competition?
Data shows that the gap has reduced substantially. We have been number one twice in the last few weeks in digital homes. We have been number one now for the last 9 of 12 weeks, even amongst the SEC A,B audiences. There has been growth. Directionally therefore, we believe, we are on the right track.But you‘re right. There are some missing pieces and we do have plans in place to fill them shortly. Our choice of drama and sitcoms is being fine tuned. We have acquired popular shows like Moment Of Truth. It‘s no secret that we will have Koffee With Karan. This is just a sample of what will populate the year‘s calendar.
Is Star World also creating time slots for different TGs?
Well, not really. There is a core TG that we will cater to and all programming will necessarily appeal to this. What we will do is schedule in a manner that will best suit the audience present at any hour.
Is Star World looking at any local initiatives?
Yes we are. It is definitely a part of our programming mix.
What is the criterion for selecting shows for Star World?
Core audience appeal and fit with channel imagery are the foremost criteria. ‘Appeal‘ of course has many layers and is dictated by our understanding of the core audience and the role our channel plays in his/her life.
While action thriller remains the most watched content in this genre, the lifestyle quotient has picked up and has replaced comedies as second most popular. Have audience tastes changed recently?
That‘s true. Lifestyle has indeed picked up. However, I would not go as far as saying that they have replaced comedies because it depends on the sitcom in question.
Audience tastes have evolved as the environment around them changed. Spa and luxury holidays were not within reach earlier. A wine trail or Latin American dancing were even more niche earlier. Stand up comedy was not so big earlier.
The two channels use digital marketing a lot. How effective is it compared to traditional media?
We have been heavily using digital media. Television, though, will remain the primary vehicle in our media plans.
New players like FX are coming in. Will this boost viewership share for the genre or simply cause fragmentation?
If there is more of the same thing, then fragmentation is a given. Because nearly 80 per cent of the English general entertainment viewership comes from less than 20 per cent audience. Even if there are gains, they will be marginal.Unless you can get sampling from light viewers or maybe non-viewers, a viewership boost is difficult. We will be doing our bit to expand the genre.
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‘AXN prides itself on always being a challenger brand’ : Sony Pictures Entertainment senior VP, GM Ricky Ow
These are challenging times for pan Asian broadcasters. The economic downturn has meant that ad revenue targets will not be easy to meet. And for the action-oriented broadcaster AXN, this is more so with its parent Japanese electronics major Sony scaling back as it posted its first loss in many years. Sony Pictures Entertainment (SPE), however, is looking at opportunities to snap up assets in the Asian region that would come at an attractive price.
AXN, which launched in 1998 as an Asian channel, has grown in stature and moved to the matured markets, attracting male audiences. Localisation has also worked as a strategy.
In an interview with Indiantelevision.com‘s Ashwin Pinto, Sony Pictures Entertainment (SPE) Networks Asia senior VP, GM Ricky Ow elaborates on the channel‘s brand positioning, growth, challenges and expansion plans.
Excerpts:
Parent company Sony is scaling back due to a downturn in the global economy. How is this affecting SPE Networks Asia in terms of investing more in content and channels?
SPE Networks – Asia will continue to invest in content and channels because opportunities are presenting themselves in Asia. Especially during such tough economic times, people realise the need for television as an affordable form of entertainment. With the wave of TV digitisation starting to sweep through the region, there will be opportunities for us to grab some real assets in the new digital world.
What are the challenges that pan Asian broadcasters like AXN face in these tough times?
Firstly, there remains substantial revenue leakage through piracy. Secondly, competition continues to increase with more channels and choices entering the market. As audiences become increasingly fragmented with growing competition for their attention, business plans have to remain relevant.In addition, new media offers opportunities for the brand to go beyond television – for content to be consumed anytime, anywhere, in many forms. At this time, however, all players in the industry are still in the race to find the perfect business model that will work for new media platforms.
Another challenge is that the English GEC genre is perceived to be used as a ‘snack‘ by viewers. How do you go beyond that and try to build stickiness?
It is a misconception that AXN offers ‘snack TV‘. Many of our shows are of an hour‘s length per episode and others are even two hours long. AXN programmes offer a destination to escape to. One of the reasons why we have remained as the dominant player in this genre is that we offer something different and viewers actually watch and follow, not just surf through our content.
When Sony launched AXN in India way back in 1998, it was to be an action and adventure channel for male audiences. To what extent have the objectives been achieved?
When Sony launched AXN in India back in 1998, it was the first action and adventure channel. We had set out to be the first to create such a genre, and to be the best. I think we have succeeded as we continue to offer the best today, even in the face of rising competition from channels trying to replicate AXN‘s successful model.We also wanted to offer high quality English entertainment to audiences in India as well as the rest of Asia that is growing in sophistication and affluence. We felt that a channel with unique content of distinguished quality will not only excite the top end of the market, but also markets that are as a whole more mature, with viewers that are sophisticated and well-travelled. I believe that these goals have also been achieved today.
How has AXN evolved as a brand over the years?
AXN began as a high-end proposition. It was one that targetted affluent adults as well as children from affluent households. Since then, action and adventure as a genre has in many ways extended itself to mass markets because it is a universal language. With the viewership numbers that the action and adventure genre is delivering today, AXN is definitely not a niche channel, but a unique content destination with far wider appeal than we originally thought.
‘Investments of the earlier days into on-ground events, then into original programming, and more recently into the Action Awards, have all worked out well for AXN‘
What were the challenges AXN faced in establishing the brand?
AXN was blessed to have started out when competition was not that great in the market. A brand is made up of a brand promise and product fulfilment to the consumer. For AXN, our brand promises and product fulfilment have always been very closely aligned since its early days. In a lot of cases AXN over-delivered on brand promises, and that has had a long term positive impact as the channel has won over audiences‘ loyalty and affection.The best evidence of that was seen during the ban on AXN in India some years back. Viewers missed AXN and wanted the channel back on TV. This was strong testimony that AXN has indeed done well as a brand.
Investments of the earlier days into on-ground events, then into original programming, and more recently into the Action Awards, have all worked out well for what AXN stands for.
AXN started as an Asian channel and then moved elsewhere. How far has it succeeded in this?
AXN was born in Asia and was then marketed around the world. This shows that quality channels need not always be created in the West or elsewhere and then parachuted into Asia. Sony had the belief and confidence we could launch a channel first in Asia, and then bring it around the world.We have created original content like AXN Asia‘s The Amazing Race Asia. The reality race has been one of the most difficult to produce, and yet we have done well at it. In doing so, we have achieved our goal of creating original Asian productions which are good enough to be watched around the world.
AXN Asia‘s sister channel Animax, Asia‘s anime and youth entertainment channel, has also made breakthroughs. In 2009, Animax offered content in shortened broadcast windows, via simulcast deals with Japanese studios and broadcasters. Shows like InuYasha – The Final Act and Fullmetal Alchemist Brotherhood have been broadcast within the same week as the Japanese broadcast, and Tears to Tiara in a same-time-as-Japan simulcast. This has been a big step to ensure fans and viewers catch the shows on the channel and nowhere else.
AXN and Animax were among the first channels in the region to provide mobile offerings. Animax Mobile 3G streaming service was launched about two years ago, while AXN also had mobile-based content for its top shows. A highlight of AXN‘s mobile venture include exclusive video footage which was unavailable on TV, for The Amazing Race Asia in ‘The Host‘s Diary‘ where show host Allan Wu shared his thoughts and added to the entire show viewing experience for AXN viewers.
And on the marketing front?
On the marketing front, AXN prides itself on always being a challenger brand. We continue to view AXN as a challenger and are prepared to pursue innovative and creative marketing strategies to grab attention, but without offending the cultures, sensitivities and sensibilities of each market.The ads that we have created over the years have always been outstanding, and can capture viewers‘ attention and excitement of the channel, but never offensive. We have been consistently doing so and AXN is one of the few TV networks in Asia that have pursued such aggressive marketing strategies.
In 2002-2003 AXN made a deliberate shift away from movies and focussed more on top line shows like Alias, 24. What factors prompted the move and how did this help in terms of ratings?
In 2002, AXN shifted in focus away from movies, but the channel continued to offer regular movie slots. The shift in focus was to ensure AXN had a richer variety in the programming mix that still offers action and adventure to our viewers.Back then, drama series such as 24 and Alias were not as well watched as movies, but seeing that the quality of production in such series were as good as some movies, we were confident viewers would take to the new drama series on AXN.
Indeed, movies widen the overall reach of channels. However, our reduction in movies has not affected AXN‘s reach in this case; movies continued to be part of the programming mix. The increase in drama series offerings enhanced AXN‘s connection with viewers at the top end of the market. This is difficult to measure by ratings, but there are considerable viewers that AXN reaches out to. They are opinion leaders and trend-setters, and they demand such content.
AXN‘s ability to successfully market such drama series has also contributed to greater viewer ‘stickiness‘ to the channel. While a movie is a one-off show, drama series average 13-15 episodes per season, and that has worked to keep audiences coming back to AXN.
How big a role have local shows played?
We started off with local events and progressed to producing local shows, both of which added to the overall AXN experience. In recent years, AXN has focussed on regional or international shows that India is a part of. While such regional shows are not dedicated to India alone, these offer a totally different experience to Indian audiences. We will continue to produce more of such regional shows that will include India and the rest of Asia.Local events, local shows and regional shows with local elements have all brought different types of experiences and enjoyment to Indian audiences. With India becoming an increasingly important market for everyone including SPE Networks – Asia, we expect to offer more of the three different initiatives – local events, local shows and regional shows – in time to come to provide even more connectors with AXN.
Is the localisation strategy the same across Asia?
Localisation strategies are very similar across Asia, but with some markets having more localised shows and others able to participate in the regional shows that AXN creates. In that regard, we have been able to rope all markets in, and offer the same AXN touch and feel across the region.The economic downturn has helped SPE Networks – Asia as a whole to refine our plans. It has helped us re-set our priorities, re-evaluate our templates of success, and rethink if we can do things better. The economic downturn has definitely impacted us and everyone else, but we believe we can derive a positive outcome from it by re-examining what we assumed had worked in the past, and come up with new strategies to move forward.
How has AXN fine-tuned its localisation strategy this year?
We have invested in local productions such as the AXN Action Awards, and will be looking at opportunities that can bring a very different touch in original productions that are relevant to India.In addition, we have introduced English subtitling in India to enable viewers who may not be used to some of the accents to still enjoy the shows on AXN.
What is the programming focus this year?
AXN has embarked on three major changes in 2009. Firstly, we have made aggressive efforts to introduce magic-reality programming in a big way, in India. We have brought two of the biggest magicians in the world – Criss Angel and David Blaine – to AXN viewers. These two are now household names not just in the U.S., but in Asia too. Coming up, AXN will be introducing another world-class magician in our brand new original production, called Cyril: Simply Magic.All three have been some of the most sought-after street magicians. With Cyril, his exposure in India has been limited so far, but with the upcoming production, viewers can see for themselves his brand of magic.
In addition to the three magicians, we also premiered Breaking the Magician‘s Code. Unveiling the secrets behind the illusions and tricks, the show is able to really bring in both the high-end viewers as well as a wider audience base. I have high hopes that the series will do very well in India.
A second new initiative that AXN has embarked on is the expansion of AXN‘s reality block to three-hours. The key difference here is that a large number of channels are now offering reality programming that have been successful on AXN, but audiences still recognize that we brought them the original, and continue to do so, and hence viewers are still watching AXN. Anchoring this block are good shows such as So You Think You Can Dance? and the latest reality game show WipeOut, which is produced by the same team that brought on Fear Factor.
Thirdly, we have also increased our movie slots over the weekends to offer a wider appeal to audiences and broaden the viewership base.
To what extent have programming costs risen over the past couple of years with attempts to bring in the latest shows and seasons?
AXN has always been bringing first-run and latest seasons of shows to offer the newest and best programming from the US, Europe and around the world on our channel. This is not new as it is one of the key reasons why viewers continue to tune-in to AXN.Indeed, the cost of programming has gone up over the years. But since this has been what we have been doing all along, the increased cost continues to be within our expectations.
Is new media going to play an important role for AXN in the coming two years like what it does in countries like Korea?
There is no doubt that new media will play an important role in the future. The Internet has already proven its importance with governments having won elections using the medium cleverly. The growth of mobile usage, with ubiquitous ownership of mobile phones and lines among the masses, make the mobile platform very attractive to marketers. However, we, like everyone else, are still figuring out the business model for new media platforms at this point in time.New media adoption however, differs from market to market. Infrastructure, strategies, timelines, and market forces determine the rate of new media adoption in individual markets. Korea and Japan are leading at this point in time as early adopters of new media, while smaller markets like Singapore and Hong Kong are also ahead as these are smaller markets that offer ease of policy implementation and infrastructure establishment.
We believe that there will be a lot more experimentation with new media in the next few years as the world races to find solutions to tap into new media platforms. As for India, it continues to be a volume game due to the size of the market. We are optimistic that with the right pricing, consumers will be persuaded to use new media, and because of the size of the market, the returns can still be very attractive for firms. We believe that once the necessary infrastructure is in place, there could be an explosion in new media take-up in India.
In the US, CBS opened an upscale restaurant where fans can experience the brand. Would this concept work in India and Asia?
We certainly believe such a concept can work in India and Asia. In fact, we have been previously approached to set up AXN Cafés and Animax Cafés in the region.We believe that with the right partners who have the necessary expertise, coupled with the right level of commitment they put behind our brands, such a business opportunity will prove an interesting proposition. We have had some discussions so far, but we believe we have yet to find the right partners at this point in time.
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English GECs: The challenge of converting snackers into loyalists
Getting in new audiences without losing the core identity. This is one of the main challenges facing the English general entertainment genre as the Indian television landscape gets more competitive. The genre is also at an interesting phase where the different players are working on new formats and varied scheduling strategies.
Tam data (c&s, 15+, six metros) shows that AXN has maintained its lead. From January to June, the six-month average share of AXN is 52 per cent. Last year, in the five-month period (as it was off air in January), it had a share of 47 per cent.
On the other hand, Zee Café has lost share. For the period last year excluding that one month (when AXN was banned), its share was 32 per cent which made it clearly ahead of Star World. This year its share has come down to 18 per cent. Star World, meanwhile, has managed to improve its share from 21 per cent to 28 per cent (January to June).
In terms of the top shows, The Simpsons on Star World heads the list. AXN has 14 shows including its local show Magic Asia India, Video Zonkers and David Blaine. Zee Café is represented with shows like The Next Best Thing.AXN Asia executive director Yan Jong-Wong notes that to continue its strong focus on the action/adventure genre this year, the action-oriented broadcaster showcased new seasons of World’s Most Amazing Videos, Whacked Out Sports and Video Zonkers. “We have also introduced one of America’s latest hit reality-competition hit shows So You Think You Can Dance. For the new drama series, we have the Emmy-nominated Damages in our line-up,” says Jong-Wong.
Local shows
The original production area continues to grow in importance. One of these was Magic Asia: India which she says captured the hearts of the Indian viewers with two American magicians, Chris Korn and JB Benn. Jong-Wong says, “They brought the real excitement of street magic to the streets of India. They performed magic amongst its people and in the process, discovered the magic of India themselves.”Another local initiative that the channel is doing is called eBuzz. This show — hosted by Indian celebrity Archana — gives viewers the lowdown on Bollywood and Hollywood.
“Our original productions are meant for all of Asia and India is very much a part of this. Our biggest original property for this year — The Amazing Race 3 — will be back on Thursday nights at 10 pm from 11 September with 20 new faces, 10 new teams, two of which are from India: a pair of cousins and a father and son team. This will be the toughest race ever. Our viewers can expect more buzz, more excitement and enjoy the thrill ride in this all new season” she explains.Jaong-Wong notes that the two slots of Elite Weekday (Mondays to Thursdays at 11 pm) and Elite Weekend (Saturdays and Sundays from noon to 3 pm), are especially branded for viewers who look for classy, high quality entertainment. “Shows like 24, CSI, Damages, House etc are perfect for the upwardly mobile, influential, well-heeled, affluent executives clued in to the best in TV entertainment,” she adds.
Meanwhile, Star World VP-programming Jyotsna Viriyala says that a new structure with well-defined slots catering to specific target groups has been created. The aim is to expand the viewer base. “We created a strong afternoon line-up, we are strengthening our weekends and we’re working towards further optimising our timeslots,” she notes.
The aim of the channel has been to strengthen the mix of sitcoms, dramas, talk shows and reality-driven content. Within this, bands like ‘happy hour’ are created which look to clearly communicate the nature of the slot. If shares are anything to go by then the channel has succeeded in its aim.Key Learnings
When asked about what the learnings have been from operating in India for many years she notes that the broadcaster is fortunate to be one of the GEC channels that has a very distinct brand identity. The aim going forward will be to capitalise on this and strengthen it further.
Top rated shows of English GECs in 2008, (Jan-June) Rank Channel Programme TVR 1 Star World The Simpsons 0.19 2 AXN David Blaine 0.17 3 AXN Video Zonkers 0.17 4 AXN Ultimate Guinness World Records 0.16 5 AXN Magic Aisa India 0.14 6 AXN Chuck 0.14 7 Zee Cafe Comedy Inc 0.14 8 AXN Magic Asia India 0.13 9 AXN Sony Style 0.13 10 AXN The Contender 0.12 11 AXN Ultimate Guinness World Records 0.12 12 Zee Cafe Bikini Destinations 0.12 13 Zee Cafe The Next Best Thing 0.12 14 Star World Seinfeld 0.11 15 Star World Koffee With Karan 0.11 16 AXN Ultimate Guinness World Records 0.11 17 AXN Anaconda (film) 0.11 18 AXN Top Chef 0.11 19 AXN Whacked Out Sports 0.11 20 AXN Video Zonkers 0.11 Sorce:- Tam Dwelling on the kind of content that works, Viriyala notes that most successes in the US and UK like Desperate Housewives and Grey’s Anatomy end up doing well here, but not all. “We will continue to be cautious keeping in mind the many factors that influence the preferences and lifestyle of the Indian viewer.”
As far as AXN is concerned, Jong-Wong points out to three key learnings. “We need to focus on the brand to keep us top-of-mind with viewers. We also need to be bold, daring and innovative. It is key for us to experiment with new genres and formats that have an Indian relevance. Therefore, we have done shows like AXN Extreme, Top Chef (with Padma Lakshmi) and Top Design. Most important though for us is not to have a herd mentality but to ensure that our position is clear, our content is unique and our offering is attractive.”.Viriyala strikes a note of optimism in saying that the English-speaking base is growing well. The sampling of English content is on the rise. According to her, the challenge is to get newer audiences without compromising on the core identity. Viewership for this genre is growing beyond the metros. Gradual growth has been noticed in places like Andhra Pradesh — 1 million+, Tamil Nadu — 1 million+ Kerala and Maharashtra she explains.
Roadblocks
Offering a media buyer‘s take Mindshare’s Amin Lakhani says that in terms of audience deliveries, this genre has a lot of room for improvement. “I would first look at the English film and infotainment genres before coming here as they fare better in terms of the rate versus efficiency equation.
The demand side by clients for the English general entertainment genre has not increased. There has not been a big increase in terms of the number of clients who use this genre. So, the rates have not gone up by more than seven to eight per cent over the past year. This genre is used by clients who target upper scale viewers who view television as a light snack.”Lakhani adds that for AXN one generally looks at males. If the product also targets women then you add Star World and Zee Cafe into the mix as shows like Desperate Housewives air.
“Star World has got aggressive this year. They have brought in new slots, which should help. Last year, Zee Café created a lot of buzz by bringing in shows immediately after their premiere in the US. The question though is does the yield justify the big rise in acquisition costs? The challenge in this genre is that you have to constantly innovate and invest. Audience’s expectations keep rising as they get exposed to the latest content from the West.”
That according to Lakhani is the first challenge.
The second challenge he says lies in distribution. New Hindi GEC channels are launching and are willing to pay huge carriage fees which smaller channels cannot afford. Ensuring visibility is hence going to be an issue for this genre. Of course you have digital platforms like Tata Sky which would want to have these kinds of channels in their bouquet.”Looking Ahead
Jong-Wong notes that the growing affluence in India is helping the English general entertainment genre become the choice of entertainment for the Indian viewers. The challenge is that as the viewers get more sophisticated, they begin to demand a lot more. AXN and the other channels will have to keep pace with this. The expectation is that more thematic, unique content channels will launch in the coming years.
AXN’s sibling AXN Beyond is expected to launch later this year. “The pie for English general entertainment will increase and the quality of these viewers will be become more valuable to our advertisers” says Jong-Wong.
Conclusion
At the end of the day, the English language viewer has more entertainment options other than TV viewing. So, nailing down this viewer and building loyalty gets that much tougher. A lot of snacking and a lower degree but still a fair bit of appointment viewing is noticed.
Obviously, the challenge will be to convert the snackers into loyalists and get new audiences to snack. As has been pointed out earlier, the genre is at an interesting phase where all players are working on new formats and scheduling strategies. One will have to wait and see how this effort pays off.
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English GECs: Localisation and variety the road ahead
For the English general entertainment genre, 2007 was the year when they looked at increasing variety in their offerings and breaking out of a mould.
The aim was also to increase relevance in some cases through local shows. Besides, the channels brought in the latest shows at the same time as their US premieres.
Tam data for C&S 15+ shows that among the three channels – AXN, Star World and Zee Café – AXN‘s channel share has been well over 50 per cent. In August, it touched a peak of 66 per cent. Zee Café has managed to close the gap on Star World to an extent. In March, Star World‘s channel share was 34 per cent versus 24 per cent for Zee Café. In April, the gap came down, and for the month May Zee café overtook Star World. Its share was 21 per cent versus 15 per cent for Star World.
Since then while Star World has been ahead, the gap was close. This was until September. After that, the gap widened again. In December, while Star World has a share of 29 per cent Zee Café has a share of 13 per cent.
In terms of the top 20 shows, AXN has got 16 in that list. The top entry interestingly enough is a film Spiderman 2. Other shows that made it include Guinness World Records, Ripley‘s Believe it or Not and David Blaine.Still, it is not as though all was smooth for the leader. In January, AXN was banned for a month by the I&B Ministry for what it termed as “objectionable content.” The ministry had taken issue with the channel repeatedly telecasting such programmes such as World‘s Sexiest Commercials. The ministry found these programmes to be against good taste or decency that could adversely affect public morality.
AXN India business head Sunder Aaron puts on a brave face, saying that no corrective measures were really required as all programming conforms to Indian norms and guidelines for content. “As with any new season, we had new television series and programmes which we refreshed the channel‘s schedule with,” says Aaron.In terms of the highlights of 2007, Aaron notes that there was a strong mix of local and international fare. “We had the gorgeous Sameera Reddy host the second AXN Action Awards. This is an on-air award show that felicitates the action heroes from Bollywood.
“We also satiated the viewers‘ needs with the premiere of the internationally acclaimed series –Damages and new seasons for the loyal fans of CSI: Miami, Alias and CSI: NY.”
AXN also strengthened its focus on the reality genre. The highlight here was the second season of The Amazing Race Asia. To break out of the mould, the channel aimed to showcase diverse content within the reality genre. So the likes of Top Chef, Top Design and So You Think You Can Dance were featured.
To hook viewers to its fare, two timeslots were created. “The Reality Stash” slot showcases reality content from 9 – 10 pm. This is followed by “Elite Weekdays,” showcasing international drama series at 11 pm.
Aaron adds that the non-primetime band has grown in importance for the channel. “Our scheduling of programmes across non-primetime is also well-thought-out, keeping in mind the viewing pattern of our target audience.”
He offers the example of “Elite Weekends” which is the non-primetime slot on Saturday and Sunday from noon to 3 pm. The aim is to allow the dedicated fan base to sit back and enjoy catching up on their favourite international series which they have missed out over the week. “We have, therefore, ensured they get to watch all the series back to back and have clearly positioned the band as – ‘Catch all the week‘s action on AXN Elite Weekends‘.”As always localisation plays a key role for the channel. Besides the earlier mentioned The Amazing Race Asia initiative, the channel also finished the shoot Magic Asia. This showcased two street magicians Chris Korn and JB Benn. Aaron notes that the show actually touches a chord with the real spirit of Mumbai and is slated to go on air in March this year. One show done at a pan-Asian level was the boxing show The Contender Asia. The show produced by the czar of reality television Mark Burnett emulates the original concept with Muay Thai fighters.
Over the years, localisation has been playing a huge role in positive brand-building as it showcases the channel‘s endeavour to identify and fulfill the viewers‘ needs. The main value is in sustaining a loyal fan base besides helping manage and create an ideal mix of original and acquired content that facilitates long-term brand-building.
Aaron attributes AXN being ahead constantly to firstly having a clear brand positioning. “I think that we follow the very basic principle of being absolutely clear of our target audiences‘ needs and showcasing the kind of content that they wish to see. We have also been dynamic enough to not get stuck in a mould and constantly showcase fresh and innovative programming. This prompted our move to broadbase our reality offerings. We have also been the only international channel to create so many original productions.”
For Zee Café, the strategy has been different in that it decided not to focus much on local shows. In the past, it had done shows like Bombay Talking but the channel‘s business head Neil Chakravarti feels that Indian audiences are not ready for Indian fiction. The focus rested on showcasing the latest from the US. Since September, it started to bring in shows from the US at the same time as their premiere there.The aim was also to pick and choose shows that Indians would find the most relevant. Therefore, four of the shows including The Big Bang Theory and Aliens in America have South Asian characters. The new programming strategy had been decided after six months of intensive research among Indian viewers who said they learnt a lot about new shows from the internet or sites like YouTube. They did not want to wait several months or years later to watch them.
Star World‘s focus, meanwhile, rested partly on the tried and tested shows like Desperate Housewives, Heroes and Ugly Betty. Complementing this were special events like Miss World and the Grammy Awards.Star World tried to break out of the mould as well. To identify the need of the market it revamped its schedules. For instance, it created an afternoon slot for youth/women with shows like Bold and the Beautiful, General Hospital, etc. The block is called essential afternoons. Star VP content and communication Prem Kamath says, “We‘ve seen a change in the genre preference for English entertainment wherein comedy is the flavour of the season.”
“We have strengthened our late prime slot with male skewed programming starting 11 pm. We believe that the day prime/early prime bands are equally important, there is a definite audience in these bands and our endeavour is to bring in quality programming to build these slots. For example we have a line-up of the best of comedy shows during weekday evenings,” adds Kamath.
When asked as to whether Star World took any preventive measure to ensure that it did not suffer a similar fate like AXN, he maintains that Star World has a social responsibility and has stringent internal censorship guidelines prior to broadcast.
In terms of local initiatives, Star World has the property Koffee With Karan. The channel is exploring other local concepts.
Kamath says that on the advertising front, clients belonging to different categories like telecom, computers, mobile phones, electronics, financial, automobile, net portals are with it.“English entertainment is evolving in India and more new audiences are tuning in to the genre. Clients find English entertainment a very important differentiator in the content arena and a strong association for their brands with evolved audiences. We have new launches every month and give a variety of programming mix to our viewers and advertisers that give a light viewing environment,” avers Kamath.
At the same time, he concedes that it is really challenging to retain clients amidst a bouquet of channels in the English genre per se at the time of evaluating a media plan.
Star World offers customised packages to advertisers in partnership with their media agencies based on their brand brief. Packages consist of the shows that are associated with advertisers for sponsorships and a mix of other programmes that have synergies with the brand environment and commercial creatives. All sponsored programmes consist of sponsors commercials to derive strong brand connect with the association. RODP and ROS also form a certain component in the overall package.
From general to more specific entertainment:
As digitisation grows, more players are looking to enter this space. Last year, this genre got a new entrant in BBC Entertainment. As of now though the channel is only available on Tata Sky. The channel brings shows from the UK such as Spooks. The British sensibility is the starting point for this channel in terms of its USP. The programming strategy is such that there are horizontal and vertical strips.In the evening, it is more family oriented. There are shows like the comedy My Family, My Life In Film so that viewership is widespread across the family. Later on, it gets more specific with shows like Waking the Dead which the channel says is a more realistic version of CSI. Murder mysteries are solved using the latest forensics technology and old-fashioned police methods.
At the same time, English entertainment will move from general to more specific. For instance, later this year, AXN is expected to launch another channel called AXN Beyond. The focus is on science fiction and the supernatural.
US media conglomerate NBC Universal, through its tie-up with NDTV, will launch two channels Sci Fi and Universal. The former specialises in science fiction, fantasy, horror and paranormal programming; the latter has movies and TV series in the thriller, drama, horror, crime and investigation genres.
More specific entertainment could come from E! which might launch in India this year. This channel focuses on Hollywood extensively through news and specials around the industry. The challenge for it is to find a distribution partner.
Viacom has a JV with TV18. If digitisation moves at the expected speed, one could see the likes of the male channel Spike TV entering the country. Comedy Central might also figure in the scheme of things. So expect a lot of activity in this space.