WHO'S GOT THE YOUTH'S EAR?: It's a case of claim and counter-claim in music TV

Vicious rumours, backstabbing, cut-throat competition - nothing new to the music industry. And when it comes to the battle in Asia between MTV Networks Asia and Star TV's Channel V, it's no different. When the two rivals go toe-to-toe in key markets, both vying for the coveted title of market leader, there are no holds barred. The very public war of words between the two last year remains fresh in the memory as the channels continue to battle for the hearts of 15-34 year olds across Asia. The latest figures show MTV dominating 24-hour cable and satellite distribution, with an overall household reach of almost 113 million, compared to the 46 million of Channel V. However, if syndication figures are included, the rivals are virtually neck-and-neck - MTV's total stands at 134.5 million and Channel V's at 133 million. And, there is still a long way to go, with Asia's market estimated at 400 million households. The stakes are high, although the goalposts have shifted - for Channel V at least. Having built its reputation as an edgy, renegade channel that touched the hearts and minds of Asia's youth through local programming and creativity, the channel has been practically swallowed up by News Corporation's Star TV, which raised its stake to 87.5 per cent late last year. The network that formerly raised two fingers to the suits at MTV is now part of a corporate media giant. Many industry observers believe the folding of the channel into Star TV has changed perceptions of it. It simply isn't the same any more. The steady stream of departures, including seasoned Channel V executives, will only add to the perception. It's now being said that Star TV is running Channel V like a bank rather than a music television network. However, voices have been equally loud on the other side of the fence. Supporters say Star TV's purchase will finally allow the channel to get its finances in order and leverage the synergy offered by its dominant partner. Star TV executive vice-president of programming, Steve Askew, says: "It was too disorganised before. The channel needed more focus and new levels of control. "Channel V was a very inspirational and creative place to work and it lost that freshness," admits Askew. "It was a speed bump at first, but by bringing it into the fold, we have been able to regenerate that by adding resources from other channels." He pointed to the successful Star Plus team in India that has taken charge of Channel V's future. MTV Asia currently dominates the market in India, claiming penetration into more than 18 million households, compared to 13.5 million for its rival. It was a different story in the 90s. Channel V was ahead of MTV Asia in India four to one in the first quarter of 1997, a year after the global network entered the market. But the launch of MTV India in October 1996 led to an amazing turnaround in its fortunes on the subcontinent. By the end of 1997, MTV was in the lead. MTV Asia president Frank Brown attributes the success to "an extremely strong international brand with very clear positioning and consistent, locally-relevant creative content". Industry observers say Channel V's attempt to recover, by going after a broader youth market in India two years ago, further weakened its position. But having learnt its lessons and with the help of Star Plus, Channel V is expected to launch a counter attack soon. In India, as in all markets, Channel V is keen to use the new weapon in its arsenal - Star TV. In terms of distribution, industry observers say the synergy with Star's sports and entertainment channels is a huge plus, and will provide stiff competition to MTV in attracting music talent, despite the global strength of the latter's brand. Star TV executives are eager to trumpet their trump card. "We benefit from being part of the bundle," Askew says. "That distribution is very difficult to replicate." Star TV's senior vice-president of programming, Jamie Davis, points to Taiwan, and in particular mega-star Andy Lau as examples. "In Taiwan, many artists are singers and actors, so the synergy of Channel V and Star's movie channel is an attractive proposition to many artists," he says. "Andy wouldn't give a rat's arse about MTV's global brand, but would prefer Channel V's greater access in China than MTV," adds Askew. Even so, MTV still enjoys an edge in the country. "In Taiwan, we are the market leader with two to two-and-a-half times the viewership of Channel V, according to ACNielsen ratings," says Brown. There have been a number of other hot spots lately. Channel V recently lost 2.3 million viewers in the Philippines after its carrier GMA Network dropped it this year. This occurred after GMA was acquired by Philippine Long Distance Telephone, MTV's partner. The move appears to have been planned from day one by Brown, who says the acquisition had been conceived at the time MTV Asia entered into the relationship with the telecoms and media giant. It was a coup for MTV, which now has the market all to itself. For their part, Star executives say they are unperturbed, and that a potential suitor has come knocking. However, a return to the market is unlikely to happen just yet, with the local economy still depressed. The latest market where the channels have been slugging it out is Korea, with MTV linking up with On Media and Do Re Me joining forces with Channel V. Going by current claims, Channel V is in 3.5 million homes, compared to 1.5 million for MTV. But the race is only just beginning. In China, reading the tea leaves to determine who's leading and who's following is a little more difficult. Both channels have been involved with national broadcaster China Central TV in staging shows and awards events. Naturally, both claim to be more successful than the other. On distribution, Channel V runs a 24-hour channel and claims 21 million homes, and a syndicated number of 107 million households. However, Brown questions the validity of these claims for the mainland, where he says MTV is in 66 million homes. The battle for China, as it blooms into potentially the world's largest advertising market, is shaping up to be the most ferocious of all. As Brown sees it, the high level of brand consciousness there will work in MTV's favour, because the channel's strength lies in delivering global and local programming. However, a recent study, Digital Tribes, by youth marketing agency Filter, claims that brands that dig deepest into local markets will thrive. Both channels claim a music mix that fluctuates around a 70:30 ratio in favour of local music. But the study reveals that musical tastes are fundamentally local, and there's a need for leading brands to tune into them. "Local music is still the fundamental passion. That is step one for brands," says Ian Stewart, the founder of Filter, which counts MTV Asia and Channel V among its clients. "Step two is that content is not just about commercial pop. Over the last five years there has been a move away from it and there is a growing interest in more underground music, especially in North Asia, with bands like LMF, who have punk/hip hop sound and sing subversive lyrics in Chinese." The tuning of content to local tastes and needs looks set to become the next battleground for Asia's music channels.

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