SATELLITE & CABLE: The History Channel adopts conservative expansion plan in Asia

<p>The History Channel has launched in Asia, rolling out programming </p><p>blocks across various markets. </p><p><BR><BR> </p><p>Foreign cable and satellite television networks have flooded into </p><p>Asia-Pacific in the past five years, aggressively establishing 24-hour </p><p>service channels in various markets. </p><p><BR><BR> </p><p>As a relative latecomer to the region, the History Channel has opted for </p><p>a more moderate approach to build up its presence in Asia. </p><p><BR><BR> </p><p>"We tend to be a conservative company and not to make big mistakes," </p><p>said Mr Whitney Goit, executive vice-president of A&E Television </p><p>Networks, the holding company of the History Channel. </p><p><BR><BR> </p><p>Positioning itself as a non-fiction educational channel, the History </p><p>Channel started in Asia with the rolling out of programming blocks in </p><p>joint venture deals with local partners. </p><p><BR><BR> </p><p>The History Channel managing director Carl Meyer said programming block </p><p>distribution was "the right strategy" for the network. </p><p><BR><BR> </p><p>The network's aim was not to grow big, initially, as Mr Meyer said </p><p>resources were mostly concentrated on building local partnerships, who </p><p>would individually operate the channel in local markets. </p><p><BR><BR> </p><p>"That's the way to turn a profit," said Mr Goit, who stressed the </p><p>programming block strategy allowed the channel to learn more. </p><p><BR><BR> </p><p>"When we go for a full channel, we will be more certain and the mistakes </p><p>will be far less costly." </p><p><BR><BR> </p><p>History has proven to be something of a sensational subject in Asia - </p><p>although the same was true elsewhere in the world - and Mr Goit said </p><p>that the channel occasionally needed to adjust its plans. </p><p><BR><BR> </p><p>The History Channel is seen by more than 74 million households in more </p><p>than 55 countries, featuring major events and personalities who have </p><p>shaped world history. </p><p><BR><BR> </p><p>Programming comes from three sources: the US, global and local </p><p>production. </p><p><BR><BR> </p><p>The channel is sticking to its daypart distribution formula first in </p><p>Asia, as Mr Goit said plans to go for a full channel were determined by </p><p>"how fortunate we are" market-by-market. In Asia, the non-fiction </p><p>channel is distributed in Australia with Foxtel and also in Japan, with </p><p>Tohokushinsha. </p><p><BR><BR> </p><p>The History Channel will expand into China by allying with Leung Kee </p><p>Holdings, and will launch in India, perhaps as a full channel, later </p><p>this year. </p><p><BR><BR> </p><p>The formation of joint venture partnerships is the prime business and </p><p>operating model for The History Channel, according to Mr Meyer. </p><p><BR><BR> </p><p>Revenue and costs are shared with local partners, with subscription and </p><p>advertising forming the major sources of income. </p><p><BR><BR> </p><p>Digitalisation and rapid cyber advancement on the telecommunications </p><p>platform have created significant cost-savings for regional networks in </p><p>Asia. </p><p><BR><BR> </p><p>The later one entered the cable and satellite TV market, the less costs </p><p>incurred in setting up the channel; Mr Goit said the channel could save </p><p>the re-investment cost on new infrastructure. </p><p><BR><BR> </p><p>The History Channel is looking at business opportunities on the </p><p>Internet; however, Mr Goit said television would always be the prime </p><p>distribution platform for the network. </p><p><BR><BR> </p>