SATELLITE & CABLE: Broadcasters' vision blurred by Internet

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.

Sign In

Trouble signing in?

Reset Password: Click here

Contact Customer Support at

Customerservice@campaignasia.com