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

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

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