10 March, 2017

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Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Mar 10th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

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Kevin Jennings

Kevin Jennings

Vice President, Programme

In Hong Kong Wharf looks set to exit its pay- TV business as the company announced that no deals were reached to sell its television and internet broadband business i-Cable Communications – Hong Kong’s oldest payTV service.  In a move that could seal the operator’s fate, Wharf said it would not extend any further financial support to i-Cable.  Wharf have said they would also be reluctant to enter another 12 year pay TV licence – The HK government had provisionally renewed i-Cable’s pay-TV licence to 2029 in December, which requires HK$3.4 billion in investments for the first six years.  Meanwhile the Office of the Communications Authority said i-Cable’s Cable TV and its affiliate Fantastic Television currently hold a payTV and a free-to-air licence (the latter was set to start broadcasting in May this year) and i-Cable must fulfil its financial responsibilities before its pay-TV licence matures on May 31.

 

Christopher Slaughter

Christopher Slaughter

CEO

According to Hollywood insiders, Wanda’s billion-dollar deal to buy Dick Clark Productions is falling apart. Meanwhile, other Tinseltown wags say Paramount’s billion-dollar partnership with Shanghai Film Co. and Huahua Media is also on the skids.  Elsewhere, at the Keshet-sponsored INTV conference in Israel, China Media Capital’s Li Ruigang told Content Asia’s Janine Stein: “…Hollywood is still Hollywood and the people just offer capital. So from China, I think we should be more reasonable, more cautious and smart.” Sound advice.
John Medeiros

John Medeiros

Chief Policy Officer

There are two types of issues at stake in the continuing Indian controversy over TRAI regulation of the TV industry.   As usual, there’s a large quotient of “fighting over the carcass” in which industry stakeholders seek to have the government wield its regulatory clubs to beat “the other guys” and better the competitive position of one group or another.   So when the Supreme Court came out with its order allowing TRAI to implement its new pay-TV rules, it’s not surprising that the actual implementation involved tweaks (e.g. removal of the genre caps on channel pricing) that bettered the lot of broadcasters, to get them to pipe down.   (The cable MSOs are already very supportive of TRAI’s regulations, believing that their negotiating position vis-à-vis broadcasters would be strengthened.  And the MSOs don’t believe they would ever escape from TRAI’s heavy hand, as they provide the interface with the consumers that governments always want to protect.)    But the foundational issue here is not about who ekes out a few paise more or less in contract negotiations – it’s about the creeping Blob of “carriage” regulation that has, since 2004, enveloped more and more parts of India’s TV industry with the gooey muck of state control.   That’s the core of the case before the Madras High Court – not that the regs need to be tweaked one way or another, but that the tendrils of the state need to be withdrawn from a content industry that is active, competitive, plural, and generating huge benefits for India.  CASBAA has urged that kind of regulatory restraint for at least a decade; and we earnestly hope the High Court decision will cause a re-think of India’s slide down the slippery slope of ever-expanding regulation.
Anjan Mitra

Anjan Mitra

Executive Director, India

Netflix is upping the ante in India and has tied up with more telcos and a satellite TV operator (Videocon d2h) in an attempt to reach directly more consumers. In India, Netflix CEO Reed Hastings admitted high data prices are an issue in some parts of the globe, including India, but was optimistic they would fall over the next few years. Reed not only acknowledged Netflix’s competitiors in India, including Star’s Hotstar ,were are all working to expand the OTT space, but said faster telecom networks like Reliance Jio would help all. Being marketing savvy and a diplomat too!

 

Mark Lay

Mark Lay

Vice President, Singapore

Our internet TV roundup this week provides a few stories of note. First off, Fox+ launched in the Philippines with 11,000 hours of programming across multiple genres and is available through Cignal, PLDT and Smart. More Asian markets to come.  In the US, the BBC / ITV / AMC owned SVOD service, BritBox, launched in the US for $6.99 per month.  Also in the US, Turner, Warner Bros. to launch Boomerang Cartoon Streaming-Subscription Service for $5 monthly.  And for Netflix fans out there, here are a few ways to hack the service. This weekend, who’s up for a Slow TV marathon, using Netflix Party at double speed?

 

Christopher Slaughter

Christopher Slaughter

CEO

NBCU was a big buyer of Snap’s IPO last week, picking up about 15% of the shares on offer for US$500 million.  In a letter to staff, CEO Steve Burke laid out the rationale, saying the deal was part of a strategy to “…drive digital growth for our business, both organically and through investments and acquisitions.”  Meanwhile, no coincidence that this week Comcast NBCU has announced a start-up accelerator, “LIFT (Leveraging Innovation For Tomorrow) Labs for Entrepreneurs”, to kick-off early next year, targeting startups in media, entertainment, and connectivity.
John Medeiros

John Medeiros

Chief Policy Officer

Digital “ad misplacement” is a problem the world over (with major advertisers aghast that the digital ecosystem lands their ads on webpages supporting terrorism, child abuse, copyright piracy and all manner of social ills.)  The Vietnamese government is upset that Vietnamese ads appear on YouTube pages with unacceptable videos.  (Their definition of unacceptable includes politically sensitive matters as well.)   And so, we reported last week, they went right to the source of the money, not only lambasting YouTube and Facebook for not respecting local laws, but threatening the advertisers with legal sanctions.  This week, the advertisers rushed to explain themselves, and they also pulled their ads off YouTube.   How to get people’s attention!   Meanwhile, in the UK, the IP police reported that their much-praised “Infringing Website List” (and industry codes requiring ads not to be placed on rogue sites on that list) has resulted in “a 64% decrease in the amount of cash going from top ad spending companies in the UK to copyright infringing websites last year.”

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

In Pakistan an Islamabad High Court judge has said that the entire social media space could be banned in the country if blasphemous content isn’t controlled and blocked by the government. Reacting to specific pages the judge called for the ban of social media sites after questioning the inability of authorities to act.  If successful the move would also seriously hamper online video, especially on sites such as Twitter YouTube and Facebook – all of whom have previously faced the wrath of authorities and had to take remedial action.

 

John Medeiros

John Medeiros

Chief Policy Officer

Thailand used to be considered a “free” country from a media perspective.  In recent years, that rating has been downgraded.  And sadly, we have to wonder where it will go in the future.   In the last week, there are reports of deep concern by journalists about attempts to control them, possible self-censorship in the pay-TV industry, and acknowledgement that the BBC’s shortwave relay station in Thailand has closed down.  The Beeb’s statement said their shortages of funds “contributed to” inability to renew the lease, but others reported that there was a big role played by disputes over Thai-language services saying things the generals don’t like.
Kevin Jennings

Kevin Jennings

Vice President, Programme

South Korea’s SK Broadband has announced a five year plan to create a new eco-system in the media industry and become the best integrated platform operator in the country. SK Broadband is the internet-based service subsidiary of SK Telecom and has said it plans to spend 5 trillion Korean won on improved technology and infrastructure with a view to doubling its subscriber base to 27 million. Specifically the company said it will try to offer differentiated IPTV and streaming services using big data and AI algorithms, and offer high dynamic range (HDR) and other high-definition technologies to improve the quality of images on its broadband and video services in a bid to woo customers.

 

John Medeiros

John Medeiros

Chief Policy Officer

And in the US, copyright law is still under the x-ray machine; the Copyright Office is conducting a long-running consultation while key Congressmen have proposed an initial batch of legislative changes that the creative industries like.   Creatives have made known their belief that current copyright law is “broken”, as it provides for take-down of pirated content but no measures to make sure that the same content isn’t uploaded again.  Better filtering is needed, said the music industry.   Meanwhile, an ongoing “fair use” case shows the huge problems with that bit of the U.S. approach.  I don’t know who is right and who is wrong in this case – and nobody does, until a court decides what’s fair use and what’s not.   But in the meantime, huge legal costs mean that win or lose, the defendants are “****ed no matter what happens”. Lesson for Asian governments: be clear on what’s okay and what’s not; avoid a system that requires individual court judgements to draw legal lines.

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

Something to start thinking about if you aren’t already is the Tokyo Olympics, only three years away and counting!  As broadcasting plans start to take shape the Olympic Broadcasting Services, who act as the official host broadcaster and provide the international video feed of the Olympic Games, has asked that two new cables, including one backup, be installed underground across three prefectures near Tokyo.  Japanese officials have balked at the costs in excess of US$90 million and have suggested using existing cables as backup and any new cables to be installed above ground.  Local municipalities are also in line to share the costs of the cabling and Japanese Olympic organisers will face a hard time if they have to try and justify what they are calling “abnormal” costs.

 

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