FEATURES
Top of the world
13 June 2014
13 June 2014: There's something of a hallelujah mini-moment dawning for rights holders in the online environment. And it can't come soon enough or be applauded more loudly. "The best thing that has happened to the OTT industry in Asia so far this year is the increasing support of legal streaming among users," says Kun Gao, the co-founder and chief executive officer of online platform Crunchyroll.The secret sauce? Depends who you talk to, but the most common answers seem to include a cocktail of anti-piracy solutions that prioritise creating entertainment environments that fans flock to be part of - and are happy to pay for - as well as technical wizardry and plain old lobbying governments for stricter laws. Some markets in Asia are further behind than others in recognising the benefits of legally delivered content. "Our biggest challenge is piracy, because the people in Thailand are so used to pirated services that are either cheap or free," says TrueVisions' Soothi Na-Ranong, group senior manager, product development, business development. "We need to find an appropriate business model to win this competition," he says, adding that success involves the right pricing and content exclusivity, national reach and a simple interface that is easy to use by viewers of all ages. Running alongside the slow shift to legal is mobile take up and infrastructure development. These have given rise to innovation and over-the-top ideas that highlight convenience and put users at the centre of the experience, says Prakash Ramchandani, chief content officer of Spuul, which offers primarily Indian content on-demand to global audiences. CHALLENGES While online piracy remains a scourge in every market, challenges for online services in Asia and/or offering Asian content vary according to market maturity. Platforms in less-developed digital markets talk about educating consumers about t...
13 June 2014: There's something of a hallelujah mini-moment dawning for rights holders in the online environment. And it can't come soon enough or be applauded more loudly. "The best thing that has happened to the OTT industry in Asia so far this year is the increasing support of legal streaming among users," says Kun Gao, the co-founder and chief executive officer of online platform Crunchyroll.The secret sauce? Depends who you talk to, but the most common answers seem to include a cocktail of anti-piracy solutions that prioritise creating entertainment environments that fans flock to be part of - and are happy to pay for - as well as technical wizardry and plain old lobbying governments for stricter laws. Some markets in Asia are further behind than others in recognising the benefits of legally delivered content. "Our biggest challenge is piracy, because the people in Thailand are so used to pirated services that are either cheap or free," says TrueVisions' Soothi Na-Ranong, group senior manager, product development, business development. "We need to find an appropriate business model to win this competition," he says, adding that success involves the right pricing and content exclusivity, national reach and a simple interface that is easy to use by viewers of all ages. Running alongside the slow shift to legal is mobile take up and infrastructure development. These have given rise to innovation and over-the-top ideas that highlight convenience and put users at the centre of the experience, says Prakash Ramchandani, chief content officer of Spuul, which offers primarily Indian content on-demand to global audiences. CHALLENGES While online piracy remains a scourge in every market, challenges for online services in Asia and/or offering Asian content vary according to market maturity. Platforms in less-developed digital markets talk about educating consumers about the benefits of connectivity while those in more highly connected environments talk about levels of usage, unexpected habits, fan behaviour and the issues involved in cross-border expansion.Some of the challenges are the same as they were last year and the year before - obtaining OTT rights, licensing windows, censorship and balancing costs and revenues. For platforms going after multi-market expansion, dealing with technical delivery issues across developed and developing markets is also a challenge. U.S.-based Asian/Japanese platform Crunchyroll, for example, says "delivering the same level of services to users in international regions" is its biggest challenge. On the ground in Japan, Hulu Japan's challenge is migrating consumers from traditional terrestrial access to a subscription video-on-demand model. "Subscription VOD is still a new business model in Japan, where terrestrial television is free of charge and viewers are used to watching premium content for free. It is a challenge to get these television viewers to subscribe and pay a monthly fee for the content they watch. This has been a challenge so far and it is still a challenge," says Nippon TV, which acquired Hulu's Japan business in February this year. In the Philippines, where Blink is less than six months old, the biggest challenge is educating consumers "to support this new viewing habit, says Ronan DeGuzman, chief operating officer of Blink's parent company, Solar Entertainment. In Malaysia, dominant platform Astro's challenges revolve around shifting from targeting the home to targeting individual consumers within Astro households. "We realised that customers demand access to their TV and entertainment everywhere they go, and [don't want to] be limited to when they're in front of their TV in the living room," says Astro on the Go's (AOTG) vice president, Shaiful Zahrin Subhan. AOTG launched in May 2012. The biggest challenge? "To come up with a design that meets multiple users' needs," the platform says. Hong Kong's TVB is also grappling with the challenge of targeting all market segments and age groups with new platform GOTV, launched at the beginning of the year. These include the elderly, says Wayne Lam, tvb.com's senior product manager. "We believe that the older our customers are, the more content they are likely to revisit. So the key challenge is to consider the best user interface that is manageable (by all age demographics) and can easily be extended to cover various screens," Lam says.GOALS Traditional players with over-the-top digital solutions are pretty single-minded about their goals - to expand their universe (at home and/or abroad), adjust to changing viewership trends and audience habits, keep their borders safe from invading attractions, piracy included, and make some money. Hong Kong's TVB - often called the world's biggest and best Chinese drama producer - has the same ambitions as everyone else in this space. "We hope to bring TV lovers a new experience of watching TV," says tvb.com's Lam. In addition to offering traditional terrestrial linear channels on GOTV, "we facilitate users to choose their favourite titles to revise, anywhere, anytime on any device," he adds. Creating a clearly branded online destination for audiences with specific tastes - in this case Indian movies and TV - is at the core of global online platform Spuul's being. "The idea is to make the consumer content experience worthwhile as well as convenient," Ramchandani says. Features include HD, subtitles, the ability to resume viewing across devices and offline sync. "Offline sync that is backed by military encryption allows the user to watch content without an internet connection and this combats the challenges of infrastructure in developing markets. One can enjoy movies on the go without having to think about internet availability," he adds. International expansion is on the agenda for Hong Kong's GOTV, Lam says. The platform, which has access to TVB titles such as The Bund I, Legend of the Condor Heroes series and Triumph in the Skies, says it is "proactively studying" the possibility of expanding the service to TVB content fans around the world. Freedom seems more of a priority in the Philippines than international expansion. Established media company Solar Entertainment says the idea is not to bundle new online platform Blink with the media company's other services but to "deliver quality entertainment and for users to have the freedom and more options to watch whatever and whenever they want," DeGuzman says. Blink's aims for the rest of this year include "ingesting all content and making all the necessary versions for broadcast, archive, asset management and future monetisation," he adds. Choice and freedom also top the agenda of iWant TV, another online platform in the Philippines. Ralph Menorca, head of iWant TV and digital head for access for major free-TV broadcaster ABS-CBN, says the platform "is all about giving Filipinos the freedom to choose the way they want to enjoy content". iWant TV's priorities are creating "the best online viewing experience by offering the best lineup of shows, and by providing access in the platforms most relevant to them". As new as they are, top-tier digital platforms are as committed to traditional goals as any of the traditional players. "Our goal is to focus on providing all Japanese anime shows within minutes of original TV broadcast in high quality and professionally subtitled," says Crunchyroll's Gao. The platform's priority for 2014 is continued expansion of the content offering and global reach, Gao adds. In-house production is also on Crunchyroll's agenda, although no timetable has been released. Longer term, being paid for what it delivers is one of ABS-CBN's aims for iWantTV in the Philippines. For the moment though, the media company feels content is "best made available on a free basis," Menorca says. The strategy is "constantly evolving... paid services [for iWant TV only] may be considered in the future, when we see that our [online] users have developed the appetite for paid, premium content," he adds. SURPRISES There have been a wide range of surprises - from consumer habits and technical adjustments to the leap in mobile usage and the need for more education - as platforms move into their all-screen future. "We originally thought that most of the usage for Astro on the Go would occur out of home - thus the name Astro on the Go. But what we've learned is that there are as many users choosing to watch AOTG at home, suggesting that it's being used as a second screen," AOTG's vice president, Shaiful Zahrin Subhan says. In the Philippines, Blink realised pretty quickly that it needed to supplement marketing efforts with consumer education. "We discovered that consumers in the Philippines were actually unfamiliar with watching content on multiple devices and we had to step back and teach them how to subscribe and navigate the site, etc," DeGuzman says. With five years of progress under its belt, Crunchyroll's biggest surprise these days in all about engagement. "We are always surprised at how engaged our users are! Many of them not only use Crunchyroll to watch anime and read manga, but also to communicate with others around the world who share similar passions," Gao says. Faith in the long-tail phenomenon is being confirmed and re-confirmed as rights owners put library titles online. In Hong Kong, TVB's Wayne Lam says one of the biggest surprises has been the high-demand for past titles. All time favourites on GOTV so far include Triumph in the Skies, which premiered on TVB in 2003, and The Greed of Man, an epic Cantonese drama first broadcast on TVB in 1992. Fans appetite for repeat viewing may also have been under-estimated. iWant TV's Menorca says "one of the surprises is the habit of repeating an episode again and again". Giving fans the ability to do that, and everything else they want to, has to be the digital world's Holy Grail. Who's who... acTVila (Japan)Japanese video portal, acTVila, offers more than 82,000 titles, including 23,000 karaoke songs and 39 subscription video-on-demand titles. Content includes Hollywood movies, local comedy, animation and drama. Monthly subscriptions range from ¥500/US$5 to ¥3,500/US$34. VOD episodes cost from ¥100/US$1 to ¥500/US$5. There is no live streaming of TV channels. Seven-year-old AcTVila is geoblocked for Japan and has no plans to expand outside of Japan. Astro on the Go (Malaysia/international)Astro on the Go, launched in May 2012, offers 30 live streamed local/international channels, up to 2,000 hours of catch-up and VOD content at any given time via internet-connected devices, with about 500 hours added monthly. The platform is available in Malaysia. International Astro on the Go, offering Malay and Malaysian sports content, is accessible in Singapore, the U.K. and Australia. The platform is free for Astro subscribers. Non-Astro customers in Malaysia pay RM30/US$9/pack monthly or RM5/US$1.50/pack/daily. International subscription is US$9.99 a pack (up to six live TV channels tailored to different market segments). Astro on the Go had about 475,000 registered users (as of April 2014), more than 847,000 downloads and a 75% increase in registered subscribers year on year. The average viewing time is 72 minutes a week.Blink (Philippines)Solar Entertainment subsidiary, Omni Digital Media Ventures, launched online video service Blink at the end of October 2013 and started offering blockbuster movies from U.S. studios and local and international TV series via web browsers and multiple device applications (iOS/Android) in February 2014. Blink offers both pay-per-view movies at Ps170/US$4 a title (48 hours to watch or seven days, whichever comes first) and monthly subscription of Ps450/US$10 for TV series (30 days unlimited access). Blink also live streams Solar channels, and is building up to 800 hours of TV shows and 200 movie titles. Sports content may follow. Adds an average of 15-20 new movie titles and about two new TV titles a month. Content is geo-blocked for the Philippines, and there are plans to roll out in Malaysia, Indonesia and other markets at some point. The target audience is upwardly mobile adults, 21-35 years old. 10,000 registered users signed up in the first three months; target is 25,000 by year end. Average viewing time is about 45 minutes a day. Crunchyroll (international)Video streaming platform, Crunchyroll, focuses on Japanese anime and Asian content and is available on the Crunchyroll website and a wide range of mobile and other platforms. The platform, launched in 2009 out of the U.S. as a community video platform, has more than 300,000 premium global subscribers (April 2014). Crunchyroll offers more than 25,000 episodes and 15,000 hours of licensed content (mostly anime, some Korean drama and live-action) translated in multiple languages within minutes of TV broadcast. Content partners include TV Tokyo, Aniplex, Nippon Television Network, MBC and KBS. Free streaming and premium subscription services from US$6.95 a month. GOTV (Hong Kong)Hong Kong's dominant terrestrial broadcaster, Television Broadcasts Ltd (TVB), launched GOTV in January this year as a domestic subscription-based online/mobile VOD service offering TVB drama series. Non-drama content will be added this year, with third-party regional and/or international content options along with international expansion ambitions further down the line. GOTV offers two packages - monthly HK$59/US$7.60 and annual pass HK$499/US$64. GOTV plans to offer a pay-per-title service by the third quarter of 2014. Content includes about 10,000 episodes from 300 TVB dramas. Hulu (Japan)Hulu Japan is an online video service with unlimited access to over 13,000 premium programmes on multiple devices. Premium content includes Hollywood films and TV shows, Japanese films and TV shows, anime and documentaries. Content is geo-blocked for Japan. Hulu Japan launched in September 2011 by Hulu out of the U.S. Hulu's Japan business was acquired by Nippon TV in 2014. The platform offers more than 13,000 assets of premium video content from Hollywood, Japan and other countries. Hulu added Nippon TV dramas and animation from 1 April 2014, and plans to add more. Hulu Japan costs Yen933/US$9 a month. iWant TV (Philippines)iWant TV launched in December 2010 offering content from ABS-CBN, SkyCable, ABS-CBNmobile and other subsidiaries. The advertising-supported free online tier launched in December 2012. The iWant TV Mobile App launched in November 2013. iWant TV has 2.4 million registered users; 200,000 are paying subscribers of ABS-CBN's pay-TV/mobile platforms. Typical users finish at least one episode (about 20 mins) each session. Spuul (international)Spuul is an online ad-supported subscription service that legally provides film and TV content globally. The service currently offers both free and paid Indian content and a mix of new blockbusters, popular/evergreen classics, kids and TV content for family viewing. Some content is geo-blocked but most is available globally. Free streaming and pay-per-view specials (from US$0.99) and a premium monthly subscription service for US$4.99 a month. StarHub TV Anywhere (Singapore)StarHub's OTT service, launched in June 2012, offers live channel streaming and on-demand/VOD content geo-blocked for Singapore. The platform targets StarHub TV subscribers, but is also seeking new segment and customers. The service, offered free to StarHub subscribers, complements the main TV subscription and offers some content a la carte. Utilisation is expected to reach at least half of StarHub's 533,000 subscriber base. Tonton (Malaysia)Tonton offers catch-up and premium video content from Media Prima's free-TV networks - TV3, TV9, ntv7 and 8TV (also streamed live) - and international studios. Targeting urban viewers 15 -35 years old, Tonton has almost 3.7 million registered users, with expectations of hitting the four million mark by year end. The revenue model is free VOD, transactional VOD (TVOD), and ad-supported content. TVOD costs from RM8/US$2.50 a title (48-hour viewing period). Most of the shows are free, with some migrating to a premium tier after the initial free 30-day window. The newest feature is Tonton Original Series. Tonton offers about 190 hours a week or 760 hours a month of new content. TrueVisions Anywhere (Thailand)TrueVisions Anywhere offers live-TV streaming and catch-up of more than 150 local/ international channels. TVOD was introduced in February 2014 offering 140 Hollywood movies, including Thor and Frozen. The plan is to ramp up to 170 movies by mid-2014, with 10 new, current titles each month. Rates are THB39/US$1.21 to THB100/US$3.10 a title. TrueVisions Anywhere is accessible for free to TrueVisions' pay-TV subscribers. Non-subscribers pay THB200/US$6 a month for 53 local and two international channels. Available in Thailand with ambitions for Myanmar, Vietnam and Cambodia. TrueVisions Anywhere has 550,000 downloads and 100,000 registered subscribers, and is aiming for 180,000 registered subscribers by year end.