Singapore to Showcase TV
Growth at the Asian TV Forum
Lately, when a TV distributor is asked which territories are becoming more
receptive to their international business, he or she will often mention Asia
- be it Korea, Japan or even the territory known as Australasia. And the market
that is set to benefit most from this upturn in business is the Asia TV Forum
(ATF), to be held in Singapore from November 30-December 2. The market cuts
down the cost and effort buyers put into traveling all around Asia, by creating
a one-stop-shop for sellers to reach Asian broadcasters and producers.
"Asia Television Forum is a good market for us for a number of reasons," said
Christine Fellowes, managing director, Asia, E! Networks. "It serves as
a timely follow up to MIPCOM. Many of the South East Asian clients who do not
make it to Cannes will come to Singapore for ATF, so we see many different clients
at each market. Also," she added, "the setting for ATF is in hotel
suites and the pace is more relaxed. We have a chance to be more detailed in
our presentations and to discuss specific client issues and deals in more depth."
For most Americans, soccer is played everywhere, but rarely seen on television,
in the rest of the world, the sport is played everywhere, especially on television.
Making sure that viewers in the Americas -- mostly Latins-- get their daily dose
of soccer matches is GolTV, a Miami, Florida-based specialty channel launched
in the U.S. in 2002 by two Uruguayans and one Brazilian businessman.
One of the partners, Nelson Gutierrez, is a former soccer player; Francesco
Casal, the Brazilian component, is a prominent manager of soccer players; and
Enzo Francescoli, the CEO, is a former soccer player famous both in Europe
and Latin America. Francescoli, who was nicknamed El principe (the prince)
has played for soccer teams around the world: River Plate (Argentina), Racing
de Paris and Olimpique Marseille (France) and Cagliari and Torino (Italy).
Casal and Gutierrez own Uruguay-based Tenfield, a company that holds the rights
to the Uruguayan soccer league and represents a number of international television
networks as well as hundreds of soccer players.
GolTV, a 24/7 soccer channel, is now broadcast in both the U.S. and Latin America
via The DISH Network and DirecTV; and in late August it was launched in Canada
as a category two (not a cable must-carry) digital service in partnership with
Insight Sports, a division of the Kilmer Group.
All three channels are received through either satellite or cable, and currently
are in over 8 million homes, mostly digital enabled.
According to Rodrigo Lombello, GolTV's chief financial officer, the channels
will be in 12 million homes in the Americas by the end of this year. Lombello,
a Brazilian, would not disclose any financial figures, stating only that, this
year, the company's revenue will grow by 100 percent, and he expects it will
become profitable by mid-2006.
GolTV's business model is based on two main revenue streams: per sub (affiliate
sales) and advertising. The service is sold to satellite and cable subscribers
in a sports package, usually at U.S.$12 per month.
Among its key advertisers, GolTV has Volkswagen, Visa, Coca- Cola and Adidas.
Additional revenues are generated by sublicensing some of the soccer matches
to broadcasters such as TLN in Canada, and Top Sports in Brazil.
In Lombello's view, VoD is not a viable money-making operation and most TV channels
that offer the service do it for promotional purposes only. Lombello sees VoD
as a viable option only for highlights, score reports and other "less time-sensitive" features.
For the new season, GolTV carries 11 top leagues from: Bolivia, Brazil, Colombia,
El Salvador, Ecuador, Guatemala, Honduras, Italy, Spain, Perú and Uruguay;
as well as: the UEFA (European Champions League), Copa del Rey (Spain) and Brazilian
Cup games, among others, for a total of 1,500 matches per year.
Programming consists of live coverage, taped coverage and features, for a total
of 11 categories, including "VW Gol," a look at all the goals scored
around the world, and "The Soccer Files," half-hour discussions and
analyses, with some of the programs provided by independent producers. GolTV's
key programming days are Saturdays and Sundays and, within these primary day-parts,
the block between 9 a.m. and 10 p.m., is considered prime real estate, while
primetime is the 2 p.m.-7 p.m. block, when the live games are broadcast. Because
live games are very important line-up busters, the schedule can vary accordingly.
Recently, GolTV broadcasts 12 live games in one weekend period.
Commercials are inserted during natural breaks in the game: pre-show, half time
and during post-show analysis. This is in order not to interfere with the on-going
action.
One of GolTV's most sought-after leagues, Italy's Serie A, was also one of the
most complex when it came to rights negotiations.
Indeed, of the 20 Serie A teams, four are not part of the GolTV package: Cagliari,
Lazio, Lecce and Treviso. The rights of these teams, when they play home games,
are held by Milan-based Media Partners, which, in turn, has re-sold them to Fox
Sports and Fox Soccer Channel in the U.S.
In the case of Italian soccer, GolTV acquires all rights for the Americas --
both territorial and language rights -- with the exception of Italian-language
rights, which are reserved for Rai International, the overseas cable and satellite
service of RAI, Italy's state broadcaster. Thus, Rai International's broadcast
footprint overlaps that of GolTV.
RAI's program sales division, RaiTrade, and Germany's Sport5 jointly sell Serie
A international rights. The sales terms call for GolTV to broadcast a minimum
of three Serie A games per week, but that number can go as high as seven, depending
on the number of home games played. The 16 teams for which GolTV has the rights
represent 8 matches, but some of them can be home games of teams for which GolTV
doesn't have rights.
For the first time this year, RAI lost the Serie A domestic rights to Italian
prime minister Silvio Berlusconi's Mediaset. However, RaiTrade is still providing
the international satellite feed through their long-held agreement with Sky Italia,
Rupert Murdoch's satellite TV service in Italy, which has the pay-TV domestic
rights (and before that with the former owner of Sky Italia, Tele Piú).
This clean feed from all the stadia is transmitted via RAI's transport arm, RaiWay,
to the European Broadcasting Union's Rome TV center, and via optical fiber, it
is sent first to Geneva, Switzerland (EBU's headquarters) and then to Washington,
DC where it is uplinked.
In addition to the domestic analog terrestrial TV rights, Mediaset owns the digital
TV terrestrial rights to Series A games, which means that, at any particular
time, there could be as many as 40 fixed TV cameras and a few mobile ones on
each soccer field.
Games are broadcast by GolTV in both English and Spanish with the viewers selecting
their language of choice. During major matches such as Milan-Juventus, GolTV
sends its own commentators to Italy. Usually, though, commentary is added to
the clean feed received at their Miami studios.
In Italy, GolTV maintains correspondent Pablo Monsalvo, who, from his Milan base,
produces features and background stories on players and teams.Hong Kong-based
Robert Chua, who is bringing his new technology, The Interactive Channel (TIC),
to the Asia TV Forum, said that Singapore is quick becoming an important Asian
TV hotspot. "Right now, Shanghai is most important, Singapore is getting
there and Hong Kong is trying to make its place," he said. Chua is taking
advantage of Asia, and the rest of the world's move toward IPTV, by licensing
a new interactive technology which sees a channel simulcast on TV and the Internet,
and allows viewers to participate in their favorite shows. Chua stressed that
while his company, Robert Chua Productions, has provided content to broadcasters
for years, now it is focused on licensing only its technology, and that it is
the job of local content providers and broadcasters to provide content on the
platform.
ATF, which has had a strategic partnership with MIP and MIPCOM since 2003, is
co-organized by Reed Exhibitions, TV magazine Television Asia, and Singapore's
Media Development Authority (MDA) and the Singapore Exhibition & Convention
Bureau. In 2003, a merger of the Singapore Broadcasting Authority, the Films
and Publications Department and the Singapore Film Commission formed the MDA.
The MDA's mission is to position Singapore as a center for media exchange.
Last year, ATF saw 164 distribution companies, from 41 countries. That number
was a huge increase from the 103 companies that attended in 2003. Of the sellers,
the majority came from Europe, with Asia, America and Australia trailing, in
that order. The majority of buyers were primarily from South East Asia (including
Brunei Darussalam, Cambodia, Indonesia, Singapore and Thailand), East Asia (including
China, Japan, South Korea), South Asia (including India and Pakistan) and Oceania
(Australia and New Zealand) respectively. A small percentage hailed from France,
Qatar, Russia, South Africa, the U.K. and the U.S.
"ATF is important to E! Networks, particularly for the South East Asian
markets. We believe in addition to having a catalog of quality programming that
is popular with Asian television audiences, the reason buyers keep coming back
to us, is because our client service is excellent. We pride ourselves on understanding
our clients' schedules, on proactively developing ideas for our clients and on
having a personal relationship with them that makes it fun to do business. ATF
provides a further contact point that helps us achieve this," said E!'s
Fellowes.
She continued, "In Asia we focus on programming that has the greatest appeal
to audiences. From E!, blockbuster movies and A-list celebrities are known everywhere
so we focus on celebrity profiles and clip based programming that fans love.
The Style Network's makeover programs also have regional appeal as the urbanization
of cities continues around the region and the middle class audience base develops.
There are certain reality programs that will not work in Asia as cultural differences
drive audience reaction. For example, there are usually big variations in what
each country finds humorous, and in their ability to relate their own experiences
to 'real' situations on camera. In many conservative markets in Asia, we also
have to be aware of censorship issues governing what is appropriate entertainment
product for local audiences."
When it comes to East Asia the focus, according to Robert Chua, "is on local
programming - first city, then provincial, then national and then international." Which
is something that works well with his TIC technology. He said, "because
many countries place restrictions on foreign programming and Asian viewers would
rather see Asian faces on their favorite programs, the area is changing toward
localization." And because Asian audiences want their own version of shows,
Chua predicted that formats would be hot at the Asia TV Forum. But Chua mentioned
that the Asian market is also open to movies, quality dramas, and has been especially
receptive to BBC programming.
When it comes to his own interactive technology, Chua has already licensed the
technology to China, and just got back from Hanoi and Vietnam, where he saw great
interest. "As long as a country has broadband technology available, then
it can work." He explained that the Japanese and Korean territories are
very advanced and are well suited for groundbreaking innovations.
Chua added that at Asia TV Forum he will be looking to license TIC to content
providers or directly to cable operators. He is also open to considering partners
and investments from holding companies.
When asked what the advantage to attending ATF really is for E!, Christine Fellowes
said, "Formal markets are time and cost effective as we can see many clients
in a short period of time and they serve as a great launch platform for new program
franchises and new brands."