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 |
 |
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| Roid Sin GM Carat Hong Kong |
Kaoru Matsui MD Universal McCann Japan |
Robert Hsieh CEO ZenithOptimedia Taiwan |
Audrey Kuah Director, business development MediaCom Asia-Pacific |
YES |
NO |
YES |
YES |
| "It is still worth considering investment in terrestrial TV due to new business opportunities offered by digital broadcasting. Digitisation allows terrestrial TV stations to have more channels and offer interactive advertising, helping to capture select audiences while providing a communications platform for better consumer engagement. A new business model could be built for terrestrial television through digitisation as new channels may be available for channel sponsorship or content integration to reach select consumer segments. Channel leasing can even be one new revenue stream for terrestrial TV. So far, terrestrial TV is still the most popular media activity and seems to have advantages under the current economic downturn as consumers become more cost-conscious, staying at home. ” |
“There is no doubt that terrestrial TV is the most powerful advertising medium, given its huge reach. Also, in Japan, only about 21 per cent of homes have cable/satellite TV, and terrestrial TV is still the most familiar medium to consumers. However, terrestrial TV stations are struggling. They have all reported a decline in their financial performance, except for Fuji Media Holdings, which achieved growth thanks to cost reductions. All stations must row against the current stream of advertising budget reduction. From an investment point of view, it may be worthwhile for IT companies to utilise the content derived from the resources and know-how that terrestrial TV stations own (as Rakuten and some other IT companies have already put into practice). But in terms of investment value, it is hard to say that it is worthwhile. In addition, a revised broadcast law prohibits investment of over 33 per cent for authorised broadcasting holding companies. Therefore, investments have become more meaningless as companies cannot take control.” |
"In Asia, the golden age of terrestrial TV has already gone due to the strong competition from pay-TV. Furthermore, ad revenue will be seriously affected by the downturn in coming years. If we're concentrating simply on the profitability of investing in terrestrial TV then it might not be a wise move. However, greater China integration is becoming more realistic. In Taiwan, Want Want will enjoy the benefit and take advantage of the resource integration from CTV, CTi group (invested last year in Taiwan), ATV in Hong Kong and a potential China investment. This investment in greater China scale might be worth to try. What's more, investing in media is not only a business consideration. In addition to the profitability, the value of the influence on public opinion is sometimes far more than the business value itself. If we're talking about the investment from the overall enterprise viewpoint then it might be a smart decision.” |
"In Asia-Pacific, TV spend accounts for approximately 45 per cent of all media spend. In a region where potential market sizes run to the hundreds of millions and across urban and rural areas, TV continues to be a dominant force for advertisers as it provides comprehensive coverage and is still relatively cost-efficient. Given that most clients manage a portfolio of brands targeted at various market segments, it is worth investing in terrestrial TV stations as they enable advertisers to reach broader consumer bases for more entry-level products and in regions where pay-TV has lower penetration. ” |
Off the Fence... Is it worth investing in terrestrial TV in Asia?
Is there still any point in pouring cash into the region's terrestrial TV networks?
