Asia-Pacific Broadcasting (APB) November 2018 Volume 35, Issue 10 | Page 8

8 NEWS & VIEWS November 2018 ASHGABAT – Broadcasters in Asia- Pacific face multiple challenges and need to take decisive action to remain relevant, Masakazu Iwaki, chairman of the Asia-Pacific Broadcasting Union (ABU) Techni- cal Committee, said. Speaking at the 55th ABU General Assembly held last month in the capital of Turkmenistan in Central Asia, Iwaki added that emerging technologies and the ease of providing content via public Internet at reasonable costs had put traditional broadcasters in a “very difficult situation”. “On top of that, the added com- petition from new entrants to the media industry utilising these alter- nate platforms is driving audience interests towards them,” he added. Besides new media technol- ogies such as over-the-top (OTT) and integrated broadcast broad- band (IBB), the industry is also looking at rolling out advanced technologies including 4K/Ultra HD (UHD) and 8K services, as well as IP and artificial intelligence (AI) technologies. Iwaki, however, cautioned: “All of these solutions are available for Be decisive in order to overcome challenges, ABU members told Dr Javad Mottaghi, secretary-general of the ABU: “New technologies, new media platforms and wide accessibility to broadband services are increasing the demand for content to be delivered on all platforms for viewers.” the digital environment, but the sad truth is that, unfortunately, most of our members are still strug- gling with the move from analogue to full digital facilities. This digital transformation is a must, and is inevitable for our survival in the industry.” Equally important, broadcasters need to view advances in technolo- gy as an opportunity, rather than a challenge, urged Dr Javad Mottaghi, secretary-general of the ABU. He explained: “New technol- ogies, new media platforms and wide accessibility to broadband services are increasing the demand for content to be delivered on all platforms for viewers, who now prefer to consume their preferred content at their preferred times on their preferred devices.” Making use of new digital tech- nologies, such as big data, to un- derstand the preferences of audi- ences is key to developing an edge over the competition, Dr Mottaghi added, urging ABU members to start using such techniques to gauge their audiences’ needs. Seize advantages of addressable TV and be ahead in user experience & ad success 1 8 Addressable TV: The story so far To date, addressable TV deploy- ment has moved at a leisurely pace — with ad spend hitting a modest US$1.26 billion in the US last year. This is partly because the market is nascent, and partly due to early adoption barriers: primarily cost. Brands worry that addressable ads are more expensive than linear. Meanwhile, media owners fear open auctions could see premium impressions sold for lower prices and devalued. What are the advantages? Addressable TV allows varied ads to be served to different homes. Bringing together the best of linear and digital — vast reach and gran- ular targeting — allows marketers to match ads with unique audience segments at scale. With access to high-quality first- and third-party data, such as authenticated VoD log-in details or location information, intel- ligent platforms determine the interests, habits and whereabouts of viewers. Using this information, relevant ads that stand a greater chance of engaging individuals in each household are delivered. So, while addressable may involve higher short-term costs, long-term re- wards are worthwhile — enhanced response and less wastage. And for sellers, it is possible to safeguard value by setting fixed prices for premium deals within private marketplaces (PMPs). Moreover, addressable allows digital to complement linear as part of integrated campaigns. For instance, marketers can utilise second-screening: capturing the attention of individuals motivated by TV ads to research products via their smartphone. And the same applies vice versa; online content can build a buzz leading up to live TV events that enhance viewing and ad exposure. ‘Seamless viewing’ can also be created across different plat- forms — as shown in this year’s multi-channel approach around the Australian Open. Indeed, live content is an enticing addressable prospect, with real-time data about audience behaviour — online and off — harnessed to optimise in-the- moment impact. Adoption of connected TV might have been slow so far, but it is poised to explode. Malaysia alone saw smart TV set penetration rise from 1% to 22% between 2016 and 2017, while the current 67% adoption of pay-TV in India is set to escalate rapidly as an increasing number of players enter the VoD market in the region. This means the smart money is on mastering addressable now. By seizing the opportunity address- able presents to deliver targeted messages that inspire viewers and amplify the effect of linear, mar- keters can set themselves ahead of the crowd in terms of both user experience and advertising success. Rashmi Paul is commercial director, Asia-Pacific, FreeWheel, a Comcast company. Broadcasters must reorganise ops to fend off FAANG 1 8 video-on-demand (VoD) streaming service, agrees with Underwood’s point on the increasing competi- tion in the media market. He told APB: “I can confidently say that we will be seeing more content and distribution partnerships within the digital space as market gets increasingly saturated and compe- tition intensifies.” Operating predominantly in Asia, HOOQ itself is a joint ven- ture by Singtel, Sony Pictures and Warner Bros. Bithos commented: “Partnerships have always been part of HOOQ’s strategy right from the get-go. We have been in part- nership with the largest telecoms incumbents in every market we operate in, and are constantly strik- ing partnerships with consumer and tech brands to scale our reach.” From the content perspective, HOOQ has been offering both local and Hollywood content, in addition to its original productions. This blend of content, according to Bithos, presents an “exciting proposition”, especially to busi- nesses focused on consumers in emerging markets. “Built on our belief to bring ac- cessible premium entertainment to every Asian viewer, we are definitely open to partnering like-minded peers to bring our million stories to billions more people in Asia,” he added. HOOQ also welcomes the en- trance of tech giants like Facebook into the media and entertainment industry so as “to quicken the pace of the evolution of the OTT category in Asia”. He concluded: “We look for- ward to Facebook accelerating OTT viewership in the region, creating opportunities for HOOQ to expose our content to more online viewers. “The success of Facebook will not only educate more consum- ers about OTT category, but will also allow HOOQ to ride atop the shoulders of the tech giant to share the best of premium local and Hollywood entertainment to more audiences in the region.” Realising the profound changes taking place in the industry, exacer- bated by changing viewing habits and the increasingly competitive global market, BBC decided in November last year to merge its BBC Studios and BBC Worldwide to form a single commercial organisa- tion called BBC Studios. According to the public service broadcaster, the move has ensured that the range of commercial activities already carried out by BBC Worldwide, including content financing, sales and commercial channels, and BBC Studios — the BBC’s main programme produc- tion arm — are brought together in a simplified organisation with a single business plan and combined operating model. With its distribution and pro- duction divisions merged as one, BBC Studios now has 17 production companies — including Anton Cor- poration — under its name. Anton is a global content company creating, financing and distributing films, TV series, kids programmes, documentaries and short formats. The realignment saw the establishment of The Dra- ma Investment Partnership, a pool of funding secured for investment in premium British drama titles with international appeal. The initiative is also aimed to increase the “pace and flow” of pro- jects from British production com- panies by having accessible capital in place at the point of commission. Under this agreement, BBC Studios will identify projects for development and investment, and will take on global marketing and distribution of titles financed by The Drama Investment Partnership. Tim Davie, CEO of BBC Studios, stressed that the content unit of the BBC is "very focused on British IP", and have production businesses worldwide that could support that IP. Tim Davie, CEO of BBC Studios, described the company’s content unit as a “big small” global player. He explained: “It is happening to a lot of broadcasters within the market where they feel very ‘big’ in their own space, but actually this game has completely changed — it’s utterly global. And in the global context, BBC chose to be very focused on Brit- ish intellectual property (IP) and ensure its production businesses around the world support and strengthen its IP. Davie also explained that the need to attract and retain talent drove the BBC to establish BBC Studios. He said that while every CEO would maintain that content is king, BBC Studios offers a nurturing workplace for talent. “In the BBC Group, we felt that there were significant opportuni- ties and jeopardy around retaining talent and content supplier. “A broadcaster has to have a great supplier of content, and that comes straight from the talent. So to simplify these things, it is about how you secure that talent.” Indeed, to be able to fend off FAANG, broadcasters have to rethink and reorganise their opera- tions to continue engaging their fast fragmenting audiences.