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Channels 2015

MIPTV April 2015

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Channels MIPTV 2015 > Contents

Digital TV Europe April 2015

Linear pathways Over

the last couple of years, discussion of the future of TV channels has often seemed to be the chronicle of a death foretold. We are constantly reminded that the flight of consumers to on-demand, OTT and multiscreen viewing means that linear broadcasting’s days are numbered. If this is so, the interviews in this special MIPTV issue of Digital TV Europe suggest it is a message that senior channel executives have yet to take on board. All believe at the very least that scheduling a channel has value and that the channel concept has a lot of life left in it. In our special issue, Discovery Networks International president JB Perrette talks about the opportunity to launch local version of sports service Eurosport’s second channel, while Scripps Networks international chief Jim Samples talks about the value of its acquisition of Polish national broadcaster TVN. A+E Networks’ Dean Possenniskie talks about the merits of rights ownership within a portfolio of three to six channels, while Your Family Entertainment’s Paul Robinson highlights the value of global rights to a significant content library. Trace’s Laurent Dumeau talks about opportunities in Africa and Latin America, while Sony’s John Rossiter highlights the value of the channel business in central Europe. Executives broadly share a belief that a mixed portfolio of pay and free-to-air channels can deliver returns, that localisation make sense, that ownership of rights is key, and that, while they ignore digital distribution at their peril, the linear channel – for now at least – remains at the core of what they do. l Stuart Thomson, Editor [email protected]

Channels 2015

Published By: Informa Telecoms & Media Mortimer House 37-41 Mortimer Street London W1T 3JH Tel: +44 (0) 20 7017 5000 Fax: +44 (0) 20 7017 4953 Website: www.digitaltveurope.net Editor Stuart Thomson Tel: +44 (0) 20 7017 5314 Email: [email protected] Deputy Editor Andy McDonald Tel: +44 (0) 20 7017 5293 Email: [email protected] Contributing Editor Stewart Clarke Contributors

Contents 2. Voyage of Discovery Discovery Networks International president JB Perrette on Eurosport, FTA and production.

4. RTL’s digital future RTL Group is investing in MCNs, as co-CEO Guillaume de Posch explained recently.

6 Linear still on top, says Viacom

Kate Bulkley, Andy Fry, Adrian Pennington, Adam Thomas, Anna Tobin, Jesse Whittock Sales Director Patricia Arescy Tel: +44 (0) 20 7017 5320 Email: [email protected] Art Director Matthew Humberstone Publisher Tim Banham

Viacom’s recent survey found that even young viewers still value the linear channel.

8. Scripps goes to Poland

Printing Wyndeham Grange, West Sussex

Scripps Networks’ international president Jim Samples on Scripps’ investment in TVN.

12. Making history A+E EMEA MD Dean Possenniskie on the right channel portfolio and the value of rights.

14. YFE’s Fix & Foxi go global

SUBSCRIPTION HOTLINE INFORMA GROUP TEL: +44 (0) 207 017 5533

Your Family Entertainment’s Paul Robinson on the merits of owning global rights to content.

16. Trace: in tune with the times Trace’s Laurent Dumeau on Africa, Latin America and new channel opportunities.

18. Sony and the centre ground

© 2015 Informa UK Ltd All rights reserved Reproduction without permission is prohibited

Sony’s John Rossiter on expansion of the linear channels business and the importance of SVoD.

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Channels MIPTV 2015 > Discovery

Digital TV Europe April 2015

Voyage of Discovery With its international business now accounting for over half of factual giant Discovery’s overall business, Discovery Networks International president JB Perrette talked to Stuart Thomson about plans for Eurosport, the free-to-air and pay TV markets, investing in production, and digital initiatives.

Among

global channel providers, Discovery has perhaps gone furthest over the last few years in expanding its business outside the US market, to the point where its international business now accounts for the greater proportion of revenue. Not only has the group expanded the range and distribution of its portfolio of organically developed channels, it has made major international acquisitions over the last three years in the shape of Eurosport, previously owned by France’s TF1, and the Nordic SBS-branded channels formerly owned by ProSiebenSat.1. Discovery’s channels reached a record 654 million viewers globally at the end of last year. Eurosport, majority owned by Discovery

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for the last nine months, is crucial to the broadcaster’s European plans. Discovery recently appointed former MP & Silva Group co-CEO Peter Hutton to run the sports network. The broadcaster is now moving to invest heavily in sports rights, including highend premium rights where appropriate, and using the sports network’s second channel, Eurosport 2, as its vehicle for localisation. “Strategically we are on the path to move from having the single pan-regional strategy that’s been in place for 25 years to a dualpronged pan-regional and local strategy,” says JB Perrette, who has served as Discovery Networks International’s president for the last year. “We see this as a marathon, not a sprint.” He cites the example of Sweden,

where Eurosport 2 carries local ice-hockey and handball, and France, Eurosport’s home ground, where the channel holds second league rugby rights. Eurosport has also invested in MotoGP rights for Germany and the Benelux, among other investments.

Rights portfolio Perrette says Discovery’s aim is “a strengthening of our rights portfolio in terms of each of the markets where we want to localise, while staying financially disciplined about what makes sense”. However, he says that localisation is not just restricted to acquiring specific sports properties

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01/04/2015 10:21

Channels MIPTV 2015 > Discovery

Digital TV Europe April 2015

Discovery plans to localise Eurosport 2 in a number of markets.

but extends to “making the channel feel more local not just in terms of rights but in production, promotional activity and marketing…to promote events and drive viewership”. Perrette is realistic about the financial realities of competing with incumbent pay TV platforms for very high-end premium properties such as national top-tier football rights. However, he points out that Discovery has the ability to make money from rights across multiple rather than single, national markets and also argues that there may be room to complement pay TV platform operators in certain cases. “What we can do with rights holders is very different from a single market approach. We can also see that these guys are running businesses and there is a question of how many rights can you swallow at once,” he says. As Discovery is on big basic packages, it could complement premium operator-owned sports channels by airing coverage of early rounds of premium competitions or the competitions of lower-tier leagues, allowing pay operators to defray some of the ever-growing costs of maintaining large portfolios of sports rights. In addition, Eurosport can continue to air coverage of sports that don’t have the same pulling power as football, but nevertheless remain popular. If Eurosport is aligned with its traditional focus on pay TV, Discovery’s other principal European acquisition of the last three years – of the former SBS Nordic channels previously owned by ProSiebenSat.1 – is indicative of the attention it is now paying to the potential of a dual-revenue strategy including both pay TV carriage deals and advertising-supported freeto-air channels. Discovery has also dipped into the free-to-air business in Germany, Italy, the UK and Spain. “The leadership team looked at some of the markets where pay TV was struggling or had capped out and innovated, in a creative way, to launch some free to air networks around Europe. That strategy has been a key part of what has – in a fairly moribund macro-economic environment – enabled us to grow at a double-digit rate,” says Perrette. “We love the hybrid pay and free-to-air model and it has worked very well – exploiting pay TV rights and then taking [that content] to free-to-air.”

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He says Discovery could now take the same model into sports, and adds that the broadcaster will look at possible further free-to-air channel launches in markets where digital-terrestrial platforms provide opportunities.

Production interests In addition to acquiring channels, Discovery has also extended its production interests – a journey that began with the 2011 acquisition of UK independent production company Betty – most recently teaming up with international cable operator Liberty Global to take control of global production outfit All3Media. (The

own more IP but…we are open to a variety of ways to do it.” Perrette is more sceptical about the value of taking a deeper plunge into the fashionable world of multichannel networks. In fact, he points out that Discovery was one of the first big media companies to invest in what are now called MCNs – in its case by acquiring San Francisco-based Revision 3 in 2012. However, he emphasises that Discovery’s approach with Revision 3 was different than what he sees as the more typical MCN model. In that case, he says, Discovery took a company that effectively rented rather than owned its content and turned it into a company that “owns most of its streams”. “What we believed was that the pure MCN

“We love the hybrid pay and free-to-air model and it has worked very well – exploiting pay TV rights and then taking [that content] to free-to-air.” JB Perrette, Discovery Networks International

pair also recently joined forces again to invest in all-electric motorsports franchise Formula E, indicative of the close relationship between two companies that share a common shareholder in the form of US cable mogul John Malone). Describing Liberty Global as a “terrific partner”, Perrette says the pair had a shared interest in acquiring more intellectual property, not only in entertainment but in sports as well. Perrette says that Discovery’s approach is to be “opportunistic where it makes sense” within the framework of “a strategic rationale”. Of the acquisition of Betty, the joint acquisition of All3Media and the joint investment in Formula E, he says that “in all three of those deals, we felt there was great creative talent and great intellectual property.” Even before investing directly in production assets, Discovery had, says Perrette, looked to own the rights to the content it airs. “Without owning production companies, for 30 years we have owned the vast majority of our content. Our philosophy is that owning strong IP is critical for us as a company, and that will continue whether we own the production company or not,” he says. “That will be at the heart of what we do. We will look at studios where it makes sense. We want to

model where you aggregate rented IP is a very difficult business model. There is a lot of interest but the business model seems very unclear to us,” says Perrette. “The [MCN] model is evolving but it isn’t a great business yet.” Discovery will continue to evolve the mix of content on its own networks to cater for audiences that it hasn’t yet fully served. One area Perrette highlights is the development of crime and mystery fiction content to support its true crime-based ID channel. Another is more male-focused content for Turbo, the international variant of the US Velocity channel. However, in general, he says, Discovery will focus on developing a mix of channels with broad international appeal that is complemented by a range of channels with a more local focus, as in Latin America where it operates the number one kids channel in that market – something that has not been replicated elsewhere. Overall, Perrette says he believes the pay TV model has staying power, and that OTT will exist alongside, rather than cannibalise, the existing model: “Consumers do not want to subscribe to 10 different services. Brands that curate content will become even more important.” l

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Channels MIPTV 2015 > RTL Group

Digital TV Europe April 2015

RTL’s digital future RTL Group has made a string of important digital investments in the past two years as it plans for an online future. Andy McDonald reports.

Germany’s

RTL Group has struck a number of significant deals in the digital space in the last couple of years, investing strategically for further online growth as audience behaviour continues to change. Speaking recently at Cable Congress in Brussels, RTL Group’s co-CEO Guillaume de Posch described RTL’s strategy by saying “our strongest response to non-linear television in the last two years or three years has been to heavily invest into multi-channel networks.” In November, RTL agreed to pay US$107 million (e85 million) to take a controlling stake in StyleHaul – a YouTube multi-channel network (MCN) dedicated to fashion, beauty and lifestyle – increasing its stake from 22.3% to 93.6% and valuing the US-based business at US$151.4 million. A month later, FremantleMedia, RTL’s production arm, increased its stake in European MCN Divimove to 51%. Divimove, by RTL’s reckoning, has become Europe’s leading MCN, boasting 900 million online video views per month. RTL also now owns a majority stake in the third largest MCN globally, BroadbandTV, having first invested US$36 million (e27.7 million) into the business back in 2013. “We planned internally for about 15-20%

of usage in the next three to five years to be non-linear. Is this a disruption for us? Yes, in a way. Could it be 70%? Yes. That would be disruption and we need to hedge and get prepared for that,” said de Posch. Though De Posch admits that the future is uncertain, RTL Group’s digital strategy already appears to be paying off. RTL Group

“We planned internally for about 15-20% of usage in the next three to five years to be non-linear. Is this a disruption for us? Yes, in a way.” Guillaume de Posch, RTL Group

has interests in  52  TV and  29  radio stations and in FremantleMedia has one of the largest creators of content outside the US. However, in the firm’s 2014 financials, RTL said that it is confident that its digital businesses, with investments, “will reach such scale over the next 24 months that they become one of the growth drivers of RTL Group’s total revenue”. In 2014, RTL Group’s catch-up TV services, websites and MCNs attracted a total 36.4 billion online video views, up 117% year-onyear. Of this, FremantleMedia’s 216 YouTube channels attracted nine billion views, up 35% year-on-year. De Posch said that while the last 20 years have been all about long-form content, the rise of the internet has produced an almost infinite supply of images and videos: “What we want to do is to make sure that we hedge our future with short-form video, and that’s why we are heavily investing in multi-channel networks in the US as well into programmatic platforms.” He claims that while the company initially “didn’t have the skills within RTL Group to monetise this short-form content,” its investment in US video advertising platform RTL Group has invested heavily in multichannel networks.

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SpotXchange – a firm he describes as “a NASDAQ of online video” – helped to address this. RTL paid e107 million to take a 65% majority stake last July, in a deal it said established it as the first major broadcaster to invest in the growing market of programmatic online video advertising. At the time, RTL said “a structural move into the area of

digital monetisation” was its logical next step, following on from RTL Group’s strategy to become “a leading player in all segments of online video and online video advertising”. According to de Posch, this approach to advertising is one of three major shifts occurring in its business model, as TV becomes “more complex” in a world of proliferating distribution platforms and devices. “We used to have broad general entertainment channels. We now need to go nicher and nicher,” he said, adding that adjusting to non-linear delivery is the second major change it is coping with. Third, he says, “As far as we are concerned, as free-to-air broadcasters, we need to move away a bit from this advertiser funded model into a more sophisticated business model.” Yet despite all this disruption, De Posch says: “The good news is that if you look at TV consumption in the last 10 years, or even the last three years, it is remarkably still. Look at Germany, France and Holland. I pick these three core markets on the continent. What you see in terms of the number of hours or minutes spent per day – they are fairly stable.” Though linear TV may not be going away anytime soon, RTL is preparing for the already evident shift towards online programming, services and content delivery. l

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01/04/2015 10:26

A NEW ORIGINAL SERIES

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Channels MIPTV 2015 > VIMN

Digital TV Europe April 2015

Linear still on top, says Viacom Viewing habits are changing but linear is still the go-to place for young viewers, according to a new Viacom study. Andy McDonald reports.

Television

viewing habits among the young are changing thanks to web-connected devices and online services. However, a new study by Viacom International Media Networks (VIMN) – the parent company of youth brands MTV and Nickelodeon – claims that TV is still the dominant content destination for 6-34 year-olds. Unveiling the TV RE[DEFINED] report at Cable Congress in Brussels in March, VIMN

TV that ‘seals the deal’ and commits them as viewers,” according to the study. While VoD and other services are redefining TV, there is still no dominant non-linear source, with 56% of viewers in the week previous to the survey claiming to have accessed VoD, 53% channel sites, 51% DVR, and 47% SVoD. Despite this, VIMN is working hard to target millennials and adapt to changing behaviour. In March, the firm launched two new web-powered services, focused around

majority of respondents was the ability to watch ‘when’ they want – not ‘where’ or ‘how’. “In other words, convenience is watching a show whenever they decide they want to watch it,” said VIMN. Kurz claims that “the biggest step-change is not the devices or the sources [but] the

“The needs that are fulfilled by linear TV are continuing to be filled by linear TV.”

Christian Kurz, VIMN

vice-president of research, insights and reporting Christian Kurz said that although the role of linear TV could still be challenged, “the needs that are fulfilled by linear TV are continuing to be filled by linear TV”. “Right now, TV is the only thing that provides that active and the passive viewing experience, and no online service is currently competing with that,” said Kurz. “That means for both content creators and TV providers that we have to embrace this old world around discovery.” According to the study, linear TV is still the dominant viewing source among those aged 6-34, with 69% of adults and 76% of kids still starting their viewing journey via channels. Overall, 71% were found to go to television first, with the box remaining “the reference to discover and watch TV programmes”. The research, based on a sample of 10,500 respondents aged 6-34 across 14 countries, found that channel-surfing is still the primary discovery method used to find content, followed by word-of-mouth and then TV ad spots and promos. “Online is very useful as a means of reinforcing interest, but it is linear

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video-on-demand and Music. MTV Play, a VoD service featuring many of MTV’s most popular shows, launched with mobile partners in Germany, Switzerland and Romania. MTV Trax, meanwhile, a music streaming app designed for consumers that may be “put off by more expensive ‘all you can eat’ services,” launched as a direct-toconsumer subscription service in the UK. For Kurz, the expectation of audiences today is that content is available everywhere, all the time. “Wherever we put rules and boundaries around that, we have to be really careful, because we do risk losing the audience. That goes for TV providers just as much as it goes for content creators,” he said. “As a consumer I don’t understand exclusivity – I’m paying for it [content] so show it to me everywhere. That means that I want it on a TV operator catch-up app, but I also want it on the channel app, because it’s my choice as the consumer to decide where I want to go and how I want to watch it. That’s what as an industry we have to really deliver on.” According to the TV RE[DEFINED] report, the defining part of TV Everywhere for the

Mobile app MTV Trax is designed to appeal to casual consumers.

engagement with content. It’s the relationship between viewer and maker, or creator. It’s that two-way conversation and that is really redefining what television is today.” However, he stresses that engagement does not purely revolve around social media. “Our customer service centre phone-lines are as good a channel to listen to what people have to say as any others,” said Kurz. He adds that TV promos and television EPGs remain “incredibly valuable” and something that VIMN should “keep innovating around”. l

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01/04/2015 10:33

S:195 mm

Premieres April 3rd Europe/Middle East/Latin America* 24 hours after US broadcast

* Limited to countries and territories where Sundance Channel is available.

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Season 2

Channels MIPTV 2015 > Scripps Networks Interactive

Scripps has produced versions of shows like Chopped in South Africa and the UK.

Digital TV Europe April 2015

Scripps

Networks Interactive, known outside the US for its portfolio of thematic lifestyle pay TV channels, made headlines in March with its dramatic acquisition of Polish commercial broadcaster TVN for e584 million. Jim Samples, Scripps’ president, international, says that TVN “checked all the boxes” of what the company looks for from international acquisitions. “Poland is a thriving market that is one of the few markets in Europe that has continued to grow through the recession. TVN is a strong player and is well managed. It has been able to take a leadership position in broadcast and has grown a suite of DTT and pay channels, including some very strong lifestyle channels. It allows us to have a second important hub for our business in Europe as we continue to expand. It was a tremendous strategic fit.”

Upmarket viewership

Scripps goes to Poland

Samples says that TVN’s audience also fitted with the profile of Scripps’ own viewership – upmarket, with a female skew – that enabled it to win premium pricing for its advertising. One of the other key attractions of TVN was the existence of “a management team that has been hugely successful”, says Samples. “It is not our expectation that we are going to go in and change their formula. Where we can help is in accelerating their strategy of building out their suite of lifestyle channels and thematic channels.” He says that TVN successfully created hit Polish versions of international formats, and Scripps can make available its own lifestyle formats and content. The learning process works both ways, with TVN’s experience in building digital platforms and content providing valuable knowledge that Scripps can use in other markets. With regards to TVN’s stake in pay TV platform nc+, Samples says that this “is an important component of its overall business” that “gives it an anchor in distribution” and that there are no plans to divest this asset. He points out that TVN is also distributed

Scripps Networks Interactive made news recently with its acquisition of a majority stake in Polish broadcaster TVN. Jim Samples, president, international at the company talked to Stuart Thomson about that investment, plans for UKTV and his priorities for the coming year.

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01/04/2015 10:31

Channels MIPTV 2015 > Scripps Networks Interactive

Digital TV Europe April 2015

internationally to expat audiences in western Europe and the US. “Markets that are large enough to support a lot of original production in language will have a different characteristic than smaller markets that rely on international production. The fact that the Polish audience is watching lots of Polish productions is a real strength,” he says. “The top broadcast networks will continue to be very important even if much of their production will flow through different platforms.” Samples says that Scripps has always taken a “three-pronged approach” to international expansion, focusing on the rollout of its own lifestyle brands, the acquisition of third-party channels like Travel Channel to further its

pool of content from the BBC. We think we bring value from our experience in lifestyle, so any changes wouldn’t change that mix.” He maintains that Scripps is open to other JVs where they make sense, and says they are “an important component” of its business. “Where there is an opportunity to come together with a partner that either brings distribution or content or geographic expertise, we see that as a way of accelerating our international expansion,” he says. “Generally we would prefer JVs where we meet the criteria for consolidation, and I don’t think we’re unique in that. We will still likely enter into other JVs where we are a minority partner, but on balance we would like to be the majority partner in order to consolidate them.”

“TVN is a strong player and is well managed. It allows us to have a second important hub for our business in Europe as we continue to expand. It was a tremendous strategic fit.” Jim Samples, Scripps Networks Interactive

reach in new markets, and investment in jointventures such as its 50% stake in UKTV, the UK thematic channel operator it owns jointly with BBC Worldwide. There has been press speculation recently about Scripps’ interest in taking full control of its UK JV, to the point of seeking a meeting with BBC Trust chair Rona Fairhead to convince her of the merits of a sale in the face of BBC Worldwide’s reluctance to sell. Samples declines to be drawn on this, although he confirms that a meeting with Fairhead was arranged. “It is true that we will be introduced to Rona Fairhead, but that is purely an introductory meeting. We have been very happy with our investment in UKTV. They have grown their audience share beyond 9% now and they have built out free to air channels very effectively,” he says.

Free-to-air TV Samples says that “the only disadvantage [of 50:50 ownership] is that the investment is less visible from a financial reporting standpoint, but in terms of management of UKTV, it is very much managed by Darren [Childs] and his team, and they benefit from an outstanding

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Both TVN and UKTV are strong free-to-air players, and Samples says that the company has been more than willing to take the plunge into free TV where market conditions suggest that is the best model. “In markets where there is very little opportunity for distribution and where pay TV is not highly penetrated and DTT is growing we will move in that direction and that is what we’ve done in Italy,” he says, referring to the launch of Fine Living as a freeto-air channel in that market. If the economics justify the cost of transmission, he says, it will make sense to look at free-to-air opportunities, with Italy standing out as a prime example. Scripps in the UK also operates a mixed model, with Food Network and Travel Channel distributed on Freeview. Scripps’ own portfolio of channels is about the right size for most of the markets in which it is present, Scripps says. “In some markets we may have an opportunity for Home and Garden Television [HGTV], which is our leading network in the US and very solidly a top 10 US network,” he says. In Europe much of HGTV’s content goes to Fine Living. “But we are increasingly seeing interest in HGTV not only in Europe but also in Asia, where we launched it in Singapore, the Philippines and soon other markets as

well.” He says Scripps is seeing interest in the channel as a result of the presence of HGTV programming on Fine Living. Samples says that the company’s main goal in Europe is filling in gaps in distribution, and he cites the company’s recent deal with UPC as an example of the way it is making progress. He says Scripps is also eager to add further localisation of its channels in Europe. “For the lifestyle networks, the core content is our big international productions. Localisation means in the first case dubbing and subtitling. In some cases it means taking successful formats and producing them locally,” he says, citing the example of Chopped in South Africa and the UK. Beyond that, local production is a possibility. Scripps has mostly focused on doing this in the UK, South Africa and Brazil to date. “Those are the markets where we have sufficient penetration for that to make sense,” he says. Samples says he would like to see more shows produced internationally feeding back to the US, such as food show Siba’s Table, and he expects to see an acceleration of local production this year. Scripps, like other international providers, has also developed digital distribution. In the UK, Scripps channels are available on the TVPlayer free catch-up service and the company has produced content for mobile distribution: “Since we own almost all of our content the only thing that would slow us down is whether the platform is successful and is there a financial model that makes sense.” Samples is more sceptical about the multichannel network market. “We have done some of that, but generally the financial model doesn’t make a lot of sense. We have been more inclined to put resources towards our traditional model and models where there is a clear monetisation opportunity,” he says. In a number of markets, including in the US, Scripps makes more from advertising than from carriage fees. “I expect advertising will be a major driver for us for thematic channels around the world,” says Samples. “We are successful because we are very targeted and selective about which audiences we are trying to reach. For the most part, with food and home programming that is upscale women. Travel Channel is more balanced between male and female, but it’s not our goal to cover all the categories out there. We can be more successful being very targeted and being the leader in those categories – and that is what you will see us do.” l

9 01/04/2015 10:31

music - concerts - karaoke music videos - ambiance - business

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Q&A: Eric Boyko, Co-Founder & President, Stingray Eric Boyko talks about his company’s recent rebranding and its new music offerings. Why did Stingray decide to rebrand its services under a new single global brand and what goals does this help you achieve? It has been seven years since Stingray’s foundation. During this period, we have grown exponentially, including 20 acquisitions in seven years! We are now present in 111 countries and 180 million users enjoy Stingray products and services. I am very proud of everything we have achieved! At this point in our history, it seemed natural to offer our clients all our services under a single, unified brand: Stingray. This initiative will simplify communications with our customers while granting us greater international visibility. Over the next year, all of our services will be rebranded: Stingray Music, Stingray Concerts, Stingray Music Videos, Stingray Karaoke, Stingray Ambiance, Stingray Lite TV and Stingray Business. I think our new brand truly reflects the simple, approachable, user-friendly, energetic, and cool experience we offer listeners worldwide!

Our channels have always been and will continue to be, programmed by a team of more than 60 music experts from around the globe. Their expert curation of international and locally sourced content makes our offering much more attractive to listeners.

How does Stingray Music distinguish its services from those of other streaming music providers in the market? Stingray is the world-leading provider of music products and services. We are the one-stop shop for TV providers worldwide who want to provide their subscribers with the best music experiences for every moment, place and mood; whether on TV, web or mobile. Stingray Music offers a wide range of channels, featuring local and international talents, curated by music experts from around the globe. With Stingray Music, there are never any ads or interruption, only great music!

How has the Stingray Music mobile app been rolled out, both in terms of territories and in terms of the types of device and software platforms it supports?  The Stingray Music mobile app will be rolled out gradually. It has already met with incredible success in Canada and the US. This spring it will be launched in Europe, Latin America and the Caribbean. The Stingray Music mobile app is compatible with iOS and Android devices.

What is the TV Everywhere opportunity? Stingray’s product offering is unique on the market! We know that today’s consumers want to access their content anywhere and anytime they want. At Stingray, we offer them just that with music that is available for free on TV, web and mobile through their TV subscriptions. Stingray Music’s TV Everywhere provides consumers with continuous access to expertly programmed music channels and increases brand loyalty. Of course, we also offer stand-alone products for clients who wish to take part in the Stingray experience without the need for a TV subscription . Will the rebranding have an impact on the content of your music channels? The new, unified Stingray brand has no impact on the music content! As we like to say: new name, same great music!

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What additional functionality will your new Stingray Music mobile app bring to Stingray Music consumers and how will it be positioned in relation to your existing channels? Thanks to the new Stingray Music mobile app, listeners can now stream all their favourite Stingray Music channels on the go! The Stingray Music mobile app is free to consumers who have access to Stingray Music channels with their TV providers. Our mobile app offers unlimited streaming, the highest quality digital audio, expertly curated channels, and access to the latest releases and local and international chart-topping artists.

What other areas of innovation and new services are you considering and why? We are constantly looking for new ways to improve the customer experience! That is why we recently introduced OSE (on screen enhancements) to our Stingray Music service. While listening to your favourite channel, you will now have access to information about the current channel and artist and upcoming track. In addition, we have developed the Stingray Music Video TV app which allows our customers to watch their favourite videos anytime they want. Last but not least, we have also introduced Stingray Concerts, an ondemand service that brings you the most exhilarating live performances in the comfort of your home! It really is an exciting time in Stingray’s history!

www.stingray.com

01/04/2015 10:25

Channels MIPTV 2015 > A+E Networks

Digital TV Europe April 2015

A+E Networks’ acquisition of control of two of its JVs a year ago has opened the way to further international expansion. A+E Networks EMEA managing director Dean Possenniskie talked to Stuart Thomson about the company’s plans.

A+E

Networks has been open to partnering with a range of pay TV providers and other content companies in developing its international business over the years, with A+E Networks UK, its Londonbased joint venture with Sky – but active in markets as varied as Scandinavia, central and eastern Europe and – most recently – South Africa standing as a prime example. Over the last couple of years, however, A+E has had an ambition to take greater control of some of its joint ventures, most notably taking full control of its JV with Fox International Channels in Italy and buying Malaysian pay TV operator Astro’s stake in AETN All Asia Networks, both at the end of 2013. “We have an ambition to take greater ownership, either through full ownership or majority ownership, where it makes sense,” says Dean Possenniskie, managing director,

Europe, the Middle East and Africa at A+E Networks. In the case of Italy, he says, A+E saw a market where it could potentially expand in new directions by taking full control. “Owning and operating [the channels] means we can move more decisively and take advantage of more opportunities in the market in addition to developing pay TV,” he says.

Free-to-air possibility The creation of A+E Networks Italy was immediately followed by the launch of true crime channel CI. Possenniskie says that A+E is now mulling the launch of another channel on the Sky pay TV platform, but adds that the company is mulling free-to-air as a possibility. “We don’t rule out FTA. We could very much investigate that market,” he says.

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He says that A+E has the flexibility to enter the free broadcasting space thanks in large part to its combination of channel distribution and content sales in a single combined entity. “One of the benefits we have with content distribution and channels under one roof is that we are also very strong in distribution in the free-to-air space and we don’t rule free-to-air out,” he says. With a catalogue of over 1,500 hours of content a year at its disposal, A+E is well-placed to launch such a channel while maintaining a separate content distribution business to mainstream free-toair broadcasters, he adds. Possenniskie believes that a number of western European markets are ripe for further free-to-air launches. While Italy offers the possibility to acquire a channel from an existing licence holder, it should also be possible to acquire capacity on Freeview in the

Shipping Wars: a signature A&E franchise.

Visit us at www.digitaltveurope.net

01/04/2015 10:19

Channels MIPTV 2015 > A+E Networks

Digital TV Europe April 2015

UK or to build cable and satellite distribution in Germany, for example. Other markets – notably France and Spain – hold fewer prospects, with FTA markets that are largely closed to new entrants. In terms of the core pay TV business, Possenniskie says that A+E has maintained a goal of having three to six channels in each of the markets in which it is present. “We want brands that are well-defined with good content and we can do that with three to six channels,” he says. One of his priorities for the near term is to expand the distribution of H2, “a great partner to History”, which has already been well-received in the UK market and has recently launched in Poland, the Nordic territories and the Middle East. “I would like to

channels in some territories and rebranding them as part of its existing portfolio, as it did with Sony’s Spin in Latin America, rebranded as Lifetime. With regards to the kind of bigger international moves recently made by rivals including Discovery and Scripps Networks, Possenniskie says A+E has the capacity to invest in big terrestrial broadcaster but there is a question of whether such an investment makes sense. A+E’s recent investment in youth-oriented brand Vice, in which it owns a 10% stake, points to an alternative expansion strategy, he suggests. “Vice is a strong digital business with a young, millennial audience,” he says, adding that he believe A+E can “learn a lot about the monetisation of content in that space” from its involvement.

“One of the benefits we have with content distribution and channels under one roof is that we are also very strong in distribution in the free-to-air space.” Dean Possenniskie, A+E Networks

see it across all of our markets and we will see more H2 launches this year,” he says. Possenniskie’s other main focus is on gaining distribution for A&E, the entertainment channel that A+E is rolling out to territories outside the US. “A&E has great franchises like Storage Wars, Duck Dynasty, Wahlburgers and Shipping Wars that define the brand. It is already in lots of homes and Europe and Africa and we want to see it launch further across Europe this year,” he says. Possenniskie says A+E is pleased with the progress made by its female-focused channel Lifetime, which launched in Poland recently and which he has an ambition to take to other international markets. In the majority of markets, he says, History, Lifetime and A&E will be the leading brands, with CI, H2 and FYI bringing up the rear. Possenniskie says A+E will be cautious about launching its youth-oriented US channel FYI, which has replaced Bio, internationally. “FYI has innovative programming and its journey is now beginning. We are staring to present the channel but is important to gather data and evidence from the US [first]. We are beginning to focus on it but there is nothing definite at this stage.” A+E is open, he says, to acquiring third-party

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A+E is also investing in emerging markets – notably in Africa, where it recently opened a new office in Johannesburg and hired former DStv executive Anthea Petersen as regional director. “African as a pay TV market has so much potential for growth,” he says. A+E has invested in content in South African in particular, including a local version of the Pawn Stars franchise that has provide successful. It launched Lifetime in South Africa last year and Possenniskie says the company has an ambition to have a full portfolio of five or six channels available in African markets soon. A+E will also commission more local content, including its first local show for Lifetime, building on the success of Pawn Stars which, he says, “has every chance of going to a second season”.

Owning the rights Possenniskie also points out that distribution opportunities in Africa are expanding, with digital-terrestrial rollouts possibly adding freeto-air opportunities to complement what is still primarily a pay TV market. The penetration of mobile and the rollout of mobile networks

also affords a further opportunity for video-ondemand distribution. Aside from territorial expansion, A+E is also continuing to develop digital distribution. Possenniskie is clear that “OTT is not where we are currently”. He says that A+E is committed to develop digital apps and multiscreen distribution in partnership with pay TV providers. The company is open to experiment about what form this might take, however. Possenniskie says that A+E could develop its own branded apps internationally as part of an authentication-based model, following the example of the US where content providers have made access to their programming on their own branded portals contingent on users subscribing to pay TV services. “I would like to see our own branded apps pushed to the consumer if they are authenticated,” he says. He admits that the space to do this in Europe could be limited, given that pay TV distributors were much quicker off the mark than US operators in developing their own OTT multiscreen services as complements to their linear pay TV platforms. However, he says, “having branded authenticated apps we can manage direct would add further value – but it is something we would have to discuss.” In general, says Possenniskie, the key to success is increasingly about rights ownership. A+E has had a strong focus on owning rights to the content it airs, enabling it to distribute over linear and digital platforms in multiple markets and create a consistent proposition. The development of A+E Studios, the group’s in-house production arm, is part and parcel of this. In addition to its traditional focus on factual content, A+E Studios is also taking it into the world of scripted content, with series such as American revolutionary war drama Sons of Liberty and forthcoming comedydrama UnREAL. Possenniskie says that both Lifetime and History are great vehicles for this content, with History’s Vikings – a drama that predated A+E Studios ­– emerging as “far and away the biggest generator of audiences on any facdtual channel in the UK”. “I think owning the rights to content is critical. That is the first thing that platforms want to talk to us about,” he says. “It is at the top of our agenda. The great thing is we have always been focused on owning rights, but it is increasingly about when we release those rights and what the value is in doing so.” l

13 01/04/2015 10:19

Channels MIPTV 2015 > YFE

Digital TV Europe April 2015

YFE’s Fix & Foxi go global German-language kids broadcaster YFE has ambitious goals for its Fix & Foxi channel. International chief Paul Robinson talked to Stuart Thomson about his plans. Comic characters Fix & Foxi provide YFE’s flagship channel with its identity.

Kids

programmer Your Family Entertainment (YFE) has burst onto the international stage in the past year, rebranding its flagship channel and launching in multiple markets. German-language area channel provider YFE’s profile has been boosted by its hiring one year ago of former KidsCo managing director Paul Robinson as executive vicepresident, international. However, the company’s key strength is its ownership of a significant library of content with global rights in multiple windows and for distribution across linear and non-linear platforms. “That’s a big plus. Our goal has been to see what we can do about rolling out the channel outside the German-speaking market but it’s still early days,” says Robinson. Last year, YFE launched a Middle East and Africa feed, with a deal in place with East African platform operator Azam Media. “Operators like to see the service on air before they commit, unless you are global brand. Our strategy is basically to get deals, get launched and add digital distribution on the back of that,” says Robinson. Next up is a Latin American feed, launching April 3. “We don’t have distribution deals yet but we are talking to about 30 affiliates and that will be targeted at Hispanic communities in North, Central and South America,” says Robinson. YFE has teamed up with

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Eutelsat-owned distributor AlternaTV, which is providing technical and sales services, with playout provided separately by Level 3 in Atlanta. Robinson says that the Latin American launch will also give the channel a ‘back-door’ route into the challenging US market, allowing it to build an audience among the underserved Hispanic population as a first step. YFE also has plans for a South-East Asia feed and is pushing the channel in Europe. As part of its international drive, YFE rebranded its main channel Fix & Foxi after characters created by famous comic artist Rolf Kauka. YFE owns about 104 episodes of the Fix & Foxi show, but the characters also “host” the channel and provide its identity. Fix & Foxi is currently present in Germany, Switzerland, Austria, Romania and Bulgaria, with the MEA feed set to be rebranded later this year. “Pitching that has had good traction – you can do something that looks fun and adds value and differentiates the channel,” says Robinson.

one Chilean and one Colombian producer to deliver a mix with pan-continental appeal. YFE also owns a free-to-air channel, RiC, which it recently launched internationally (as RiK) in Slovakia, a joint-venture with Bratislava-based broadcaster Joj TV. “It is a complementary channel with different shows and windowing,” says Robinson,. The Slovakian venture has been successful because there was no previous Slovakianlanguage dedicated kids channel. While the free-to-air market “carries higher risk”, the group will look at opportunities on a case-bycase basis, says Robinson. RiC aside, YFE is focusing on a singlechannel strategy, although Robinson recognises that non-linear services are important in this genre. “We want to add branded SVoD and that is certainly something for the future,” he says. “As part of a deal with an MSO we will contribute to their existing SVoD service or create a separate SVoD service that is either bundled in or sold separately.” In addition, he says, YFE will need to develop a broader digital and licensing and merchandising strategy, but that is for the future.

“Our strategy is basically to get deals, get launched and add digital distribution on the back of that.” Paul Robinson, Your Family Entertainment

Family-friendly The channel targets 5-11 year-olds with familyfriendly, non-violent content. Robinson says the characters have strong resonance in Germany, while the original Kauka comic series was also popular in Latin America. In the latter market, YFE will add Spanishlanguage content and has struck deals with

For now, Robinson says that the 5-11 age range is relatively underserved, even if the kids market as a whole is increasingly competitive, while a library of family-oriented and genderneutral content offers an alternative to the typical Hollywood kids diet of male-skewed action properties. “The critical differentiator for us is the library,” he says. “With that you can create a schedule and marketing that is consistent across the world.” l

Visit us at www.digitaltveurope.net

01/04/2015 10:34

Untitled-2 p15 Televisa 1 Channels MIPTV15.indd 1

31/03/2015 25/03/15 19:20 18:48

Channels MIPTV 2015 > Trace

Digital TV Europe April 2015

Trace: in tune with the times One year on from Modern Times Group’s 75% buyout of Trace, Trace Sport Stars CEO Laurent Dumeau talked to Andy McDonald about the group’s new strategy.

Youth

-focused channel group Trace has had a busy year. In February 2014 Modern Times Group (MTG) agreed to buy a 75% controlling stake in the Europe-based channel provider for e30 million, a deal that has both given the firm a major industrial partner as well as spurred it towards a new corporate strategy focused around expansion, digital gains and premium content. “Last year the big focus for us was of course the acquisition and the early stage of the integration, and I would say things are [now] much clearer and easier,” says Laurent Dumeau, CEO of Trace Sport Stars and senior vice-president, distribution. “The good news is we now have the backup of a very strong industrial partner who is actually pushing us to go beyond our comfort zone. They have a lot of hope and see a lot of potential in the Trace brand.”

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Dumeau says that Trace is now spending a lot of time reviewing its strategy to see how it can accelerate its growth – either through its existing products, or new ones. Referring to Trace’s “new strategy” Dumeau says “clearly we have to accelerate our digital presence, our digital tools, and stop saying that we are a digital company but really embrace it.” Second on Trace’s priority list is generating more premium content. “In a world where lots of content, especially for young people, is free or close to free, you really have to get a differentiator for the brand,” says Dumeau. Third priority is further expansion – both by targeting its products in markets where Trace is already strong, but also by entering new markets, such as Brazil. MTG’s buyout of Trace closed last June after receiving regulatory approval from the French media authorities. MTG bought the shares from Citizen Capital, Entrepreneur Venture,

NextStage and company management, the latter of which retained a 25% stake, in a deal that gave Trace an enterprise value of e40 million. Though Trace is based in Europe, its pay TV and digital platforms are now available in 160 countries to more than 80 million subscribers and the firm has a strong presence across Africa. Commenting at the time of the deal, Trace CEO Olivier Laouchez said that the “African dimension” had been key to MTG’s interest in Trace. At the time of buyout, MTG’s executive vice-president, African operations, Joseph Hundah, also said that Trace “fits perfectly with what we are doing in Africa and, more broadly, with our linear and digital operations, as well as our content production houses.” He added that the takeover gives MTG “footholds from which we can expand even more in Europe, South America, Asia and Francophone countries around the world.”

Visit us at www.digitaltveurope.net

01/04/2015 10:33

Channels MIPTV 2015 > Trace

Digital TV Europe April 2015

Trace has expanded the distribution of its channels in Africa.

Dumeau says that Trace was indeed “extremely keen to really accelerate in Africa last year” and has now opened between 10 and 15 offices across the continent. The firm upped its footprint in Africa through a string of deals in 2014. In August, Trace extended the coverage of its Trace Sport Stars channel after signing a carriage deal with Nigeriabased DTH service provider Montage Cable Television. The deal was the third agreement Trace had struck for the sports lifestyle channel in Africa, after previous deals with DStv and Canalsat Afrique. In September, the firm also launched Trace Sport Stars on Angola and Mozambiquebased pay TV operator TV Cabo’s platform for the first time, and said it was significantly increasing the reach of Trace Sport Stars in the African market, after extending its deal with pay TV firm MultiChoice.

Localisation efforts Trace also last summer launched a new Portuguese-language music network in Angola and Mozambique called Trace Toca, dedicated to Afro-Lusophone music and culture. This airs popular music from Angola, Mozambique, Cape Verde, GuineaBissau, Brazil and the Caribbean, and marks an attempt by the firm to effectively localise its output – a strategy that Dumeau says Trace is keen to replicate elsewhere. “There are some very large countries in Africa that deserve to have a free localised Trace version,” says Dumeau. “Trace Toca was, within a few weeks, I think, ranking among the 15 highest ranked channels on the DStv platform.” Specifically, Dumeau says that he wants to “develop Trace Sports Stars to make it even more relevant and more localised.” This, he says, can take the form of putting more local faces on the channel. However, he says that it is more efficient to find local partners to help make the output locally relevant. Trace’s localisation plans don’t just rest on Africa. Though the firm has distribution and partnerships in place across Latin America in countries including Mexico, Colombia and Venezuela, one market that the firm has its sights firmly set on is Brazil.

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p16-17 Trace Channels MIPTV15v3st.indd 17

“Brazil is one of these very, very big markets which is extremely regulated, where you can’t just launch on the back of your international feed. You need to have a local strategy with probably some local partnerships. So we are having some discussions. It’s a complex market [but] if you know Brazil, the young kids over there, all they dream about is music and football, so I think we are quite relevant,” says Dumeau. “We want to be relevant where we have strong and large urban communities, or people who have an appetite for urban content,” he says of Trace’s global outlook. In terms of linear brands, Trace currently has five stations on air – Trace Sports Stars, Trace Urban, Trace Tropical, Trace Africa and

last year, it ran in 14 countries across subSaharan Africa, with the final held in March this year in Kenya and the winner picking up a music contract with Universal Music. Dumeau describes the show as “like The Voice” but with “disruptive casting” – with submissions done via mobile phone rather than in person. Dumeau says he hopes that Trace can take the format to “some big mature markets, probably [in] Europe,” and claims that discussions have also taken place in Central America and Asia. “It’s an interesting business model for us, because you bring the telco into the mix, and telcos are very keen to reach their young audience to retain them and to entertain them.”

“We have new ideas to launch new types of music channels, either for specific countries or specific genres.” Laurent Dumeau, Trace

Trace Toca. However, Dumeau says “we could have maybe between one and four more additional brands” in the next few years. “We have new ideas to launch new types of music channels, either for specific countries or specific genres,” he says, without giving precise details. “We will remain within our DNA, so we’re not going to go out tomorrow and launch Trace Classical or Trace Jazz. We think there is a way of slicing some genres and then capturing some really specific audiences.” While Trace has plans for new brand launches, this now goes beyond the “linear concept”. According to Dumeau, brands “will be delivered to the end-viewer in many different ways”. “This year our focus is we want to become like a hub – we want to become the relevant entry point for the urban communities,” says Dumeau. This digital vision includes embracing subscription video-on-demand, but also “a little bit more than that.” He envisions a “proper digital platform to offer urban communities all the content that they like and they want to see”. One way that Trace hopes to push the digital envelope is by developing more projects like its Trace Music Stars competition. Launched in collaboration with mobile partner Airtel

Developing content that works in the digital world is clearly a priority for Trace. Dumeau says that developing content in a “more exclusive way, with better and better access to talent” is also increasingly important as the firm strives to make its content more and more premium. “I think owning our content and delivering content people want to watch is the future. The more you go digital and the more owning the master or the piece of the content is key, because you can put it everywhere,” says Dumeau. Mobile convergence is also top of mind for Trace, with Dumeau revealing that the firm aims to launch a mobile offering in Africa by the end of the year, in partnership with an existing operator. He says that discussion are already underway for the youth-focused Trace Mobile offering, which will include “a lot of added-value services.” These will include music, news, games, as well as access to exclusive concerts and events, says Dumeau. Summing up Trace’s aspirations, Dumeau says that “our growth now is much more about how we get deeper in some of these markets: how we get more products, how we get more relevance, how we become a musthave for some of these subscribers.” l

17 01/04/2015 10:33

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Channels MIPTV 2015 > Sony

Digital TV Europe April 2015

Sony and the centre ground

Sony

Pictures Television (SPT) Networks started the year with what John Rossiter, general manager for Central Europe, described as a “milestone” deal that would boost its audience share in Hungary and across the region as a whole. In February, SPT Networks  agreed to buy Hungarian TV channels Viasat3 and Viasat6 from Modern Times Group, taking SPT’s Hungarian offering to five linear networks, with the stations sitting alongside existing brands AXN, AXN White and AXN Black. Speaking at the time of the deal, Lyle Stewart, senior vice president, SPT Networks, for the CEEMA region, said that the agreement “clearly strengthens SPT Networks’ position in the Central European market”, adding that “SPT is focused on further growing our business over the coming year”. However, the deal exemplifies just one of two main growth areas for SPT Networks in this region. The further rollout and expansion of SVoD service AXN Now, which SPT Networks provides in partnership with central European operators, is also a major focus for the company, helping to grow its business at a time of changing consumption habits.

Linear opportunity

Sony distributes Netflix original House of

Cards internationally.

Discussing the Viasat channels deal, Rossiter says that the rationale behind taking over the stations was based on “reach and market share” and claimed that, should another similar opportunity arise, SPT Networks would look to “replicate the strategy”. “We realised the channel business is getting much more competitive and we understand that we need a certain level of scale,” says Rossiter, citing the relatively high market share of Viasat3 and Viasat6 and the strong crossover potential the networks have in terms of audience. “What we also liked about Viasat3 in particular is that it’s more of a general entertainment channel. AXN is focused on action and drama and this GE channel allows us, particularly from a production standpoint, to have more options. So we can look at everything from comedies, to realities to crime dramas,” he says.

Sony Pictures Television Networks’ general manager for central Europe, John Rossiter, talked to Andy McDonald about the expansion of its linear channels business and the importance of SVoD. Visit us at www.digitaltveurope.net

p19-20 Sony Channels MIPTV15v3st.indd 19

19 01/04/2015 10:32

Channels MIPTV 2015 > Sony

Last year, AXN in central Europe started producing of its first local Polish content – a three-part mini-series based on Swedish crime production Morden i Sandhamm, directed by Greg Zglinski and produced by Opus Films. Rossiter describes this as SPT Networks dipping its toe in the water, but says “production is becoming more important in this more cluttered world”. Rossiter is based at SPT Networks’ regional Budapest headquarters and his remit covers localised feeds across Poland, Czech Republic, Slovakia, Hungary, Romania, Bulgaria, Slovenia, Croatia, Serbia, Bosnia and Macedonia. Discussing key growth markets in his footprint, he points to Hungary, Poland, and Romania and says that, should an opportunity

Digital TV Europe April 2015

its global expansion over the next two years, outlining plans to up its footprint from 50 to 200 countries.  In a letter to shareholders to announce its fourth quarter 2014 results, the streaming media company said it would launch in Australia and New Zealand in late Q1 2015 and then go live in “additional major countries” later this year. Rossiter says that the current absence of “those larger scale brands” in the SVoD space has provided an opportunity “to bring great products” into the market. “We’ve got a lot of benefits, because we know a lot of the players in the market, we know the price points, we know that we have the partnerships. We see an opportunity to build a business that’s very beneficial for both and we can acquire from a

“We realised the channel business is getting much more competitive and we understand that we need a certain level of scale.” John Rossiter, Sony Pictures Television Networks

like Viasat3 and 6 – an attractive business with willing buyer and seller opportunity – emerge again, SPT Networks “would definitely look at it.” He says that building market share is becoming increasingly important and “you have to find your opportunity in a market that’s so competitive.”

Online opportunity In addition to its linear channels, SPT Networks’ digital business in central Europe includes catch-up service AXN Player and its subscription video-on-demand service AXN Now. The latter is offered through operator partners and is a major component of SPT Networks’ overall strategy in the region. In the digital space, SPT Networks has two major factors playing to its advantage. First, in Sony Pictures, it has a wealth of content to draw from, and it is supplementing this by acquiring additional programming for AXN Now. Second, in central Europe, SPT has something of an advantage as the major brands that are creating waves in the SVoD market in western Europe – namely Netflix and Amazon – have not entered the region – at least not yet. In January Netflix said it plans to complete

20 p19-20 Sony Channels MIPTV15v3st.indd 20

wide range of content producers, because we understand [that],” he says. “Take AXN Now, we’ve got some great SVoD titles, the best that you can get, and we’re flexible. One of the ways [we do this] is we could buy from a wide range [of sources] and we could pick shows much more like an over-the-top independent business can do.” As Rossiter points out, Sony Pictures Television has itself been a “prolific producer” of series that have performed well on SVoD services. Breaking Bad is a case in point, picking up a huge following on Netflix following its initial run on networks such as AMC in US. House of Cards, a Netflix original drama, meanwhile, is distributed internationally by Sony Pictures Television. Both shows feature on AXN Now. “The great thing about AXN Now is it allows us to utilise that great product that we wouldn’t be able to even put on air just for commercial purposes, because it’s a different target market,” says Rossiter, claiming that certain Sony-produced content, though high quality, “doesn’t work on our linear channels”. “We see content very broadly as one big hub,” says Rossiter, claiming that the question is “what’s the best way to get it to market?” He says that certain kinds of content can reach the

viewer in some ways better than other types of programming and it is important to work this out. “We have linear TV and we have people that want to be entertained; they want lighter entertainment, and maybe something that they don’t have to tune into all the time in our markets. Whereas on the other side you’ve got that binge viewing, which is served better by SVoD,” says Rossiter.

AXN Now expansion AXN Now started life two years ago in an effort, says Rossiter, to create a service “without thinking about limits”, that would offer “1,000 hours of the best series” without charging the earth.” Though the AXN Now is still rolling out, SPT Networks secured a number of new distribution deals for it in 2014 – for example it is available on UPC’s MyPrime service in Poland and Hungary, via nc+ in Poland and through Telenor in Hungary. “The service is available via most top platforms in central Europe and [there will be] more deals to be done,” says Rossiter. “We found a business model that works, which is bundling it in on an a la carte service, and we believe that the bundle, working with operators on their bundle, is a win-win for us,” says Rossiter. He claims that continuing to roll out AXN Now is a focus and that SPT Networks is continuing to have discussions with “very big players across the region”. Discussing SPT Networks’ focus for the year ahead, Rossiter says that the further rollout of AXN Now and SPT Networks’ integration of the Viasat channels in Hungary are its top two priorities. Expanding the linear and SVoD sides of its business are equally important, he says, adding that “one is not hurting the other.” “I think that, because we’re in quite a unique position, we could build two businesses and there is content that crosses over. So I think they’re equally important, because viewer habits are changing and there are opportunities to be a first mover,” says Rossiter. “We were able to have different kinds of discussions on that SVoD side because we were first mover. At the same time, when you look at an established business like what we have with Viasat and AXN, you know that the bigger you are, the more reach you have, the more attractive you are to advertisers [and] the more attractive you are to distributers. So I think that it’s equal.” l

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