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.
