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