SATELLITE & CABLE: Broadcasters' vision blurred by Internet

<p>It's been a decade since satellite broadcasters landed in Asia with big </p><p>investment plans and great hope. </p><p><BR><BR> </p><p>Amid the ups and downs of the Asian economy, regional pay television </p><p>broadcasters have been trying hard to devise a business model that could </p><p>run for the long term, as well as yield profits. </p><p><BR><BR> </p><p>Successful players who managed to build up a concrete distribution base </p><p>in the region, then started to aggressively look into regional and local </p><p>advertising sales. </p><p><BR><BR> </p><p>Failed broadcasters like Jet TV and MGM Gold withdrew when they saw </p><p>business prospects evaporate. </p><p><BR><BR> </p><p>But, at the end of the day, successful and failed satellite networks </p><p>still face the business dilemma: it is difficult to drive the business </p><p>forward through distribution and advertising sales. </p><p><BR><BR> </p><p>Television convergence, buoyed by the broadband and Internet technology, </p><p>has widened distribution; hence the revenue base of broadcasters. </p><p><BR><BR> </p><p>For broadcasters which can leverage their brands and content in the </p><p>digital world, content streaming will offer them substantial </p><p>brand-building and revenue possibilities. </p><p><BR><BR> </p><p>Many regional broadcasters have built up their multi-language websites </p><p>as part of their marketing initiatives to establish an interactive link </p><p>with viewers and advertisers. </p><p><BR><BR> </p><p>In the long term, this interactive platform will offer a range of </p><p>revenue streams to broadcasters, including database, ecommerce, sale of </p><p>merchandise and tickets, and online sponsorship. </p><p><BR><BR> </p><p>However, none of the interactive pay TV platforms in the region have yet </p><p>attracted significant subscription. </p><p><BR><BR> </p><p>Also, the pace of the digital revolution has been slower than expected </p><p>in Asia, where TV systems development varies significantly from country </p><p>to country. </p><p><BR><BR> </p><p>As a result, broadcasters are less than keen to develop more interactive </p><p>programming, with the revenue model proving difficult to sustain. </p><p><BR><BR> </p><p>"Broadcasters and cable companies are facing a technological </p><p>discontinuity that will change the way entertainment and information </p><p>reach customers," said a media and entertainment analyst from </p><p>McKinsey. </p><p><BR><BR> </p><p>"If these companies want to stay in the game, they will have to embrace </p><p>the emerging technology and use it to drive innovation and value," said </p><p>the analyst. </p><p><BR><BR> </p><p>Star's founder Richard Li was once very keen to develop interactive </p><p>multimedia services - NOW - which he may well do now that he has the </p><p>broadband and telecom infrastructure under his PCCW vehicle. </p><p><BR><BR> </p><p>But the imploding Internet bubble around the world has deflated PCCW </p><p>stock value, which could see Mr Li put his interactive ambitions for NOW </p><p>on hold for the moment. </p><p><BR><BR> </p>