BBC’s Whitehead: British Broadcasters Plans to Expand Throughout Region

The BBC is one of the most recognized names around the globe, however, the U.K.-based broadcaster only launched its channel business in Asia in the last three years. Now the broadcaster plans to bring its HD channel to more platforms in Asia as well as increase the number of its other channels across platforms in the region. Mark Whitehead, senior vice president and general manager of BBC Worldwide Channels Asia, spoke with the CommunicAsia E-Daily at the CASBAA Singapore Satellite Industry Forum about the broadcaster’s prospects in the region.

Whitehead: We are relative newcomers to the Asian market, having only launched the channel business in Asia in 2007. Having said that, we have just had a successful year with 13 channel launches in 12 months. For us, distribution on the right platforms is a key focus. Currently, we are on most major platforms in our key markets. For example, in Singapore, we are on StarHub, which has over 500,000 subscribers, and we are platform neutral in Hong Kong — on PCCW’s NowTV and Hong Kong Cable in Hong Kong.

Whitehead: South Korea, to me, offers interesting opportunities in terms of what’s happening there in IPTV, 3-D TV, HDTV and other technologies platforms are using to deliver content. There is good growth potential there, and we are well placed to engage in the market when the opportunities arise. 
 

Whitehead: We are working on plans at the moment to bring the channel to Asia. It is an ambition of many broadcasters to have more HD channels, but you need to have efficiencies in the market where consumers are ready for it. There are increased costs of delivery, programming, localization and other costs. All these must be considered when determining if and when we can have a successful business model delivering HD to our viewers.
 

Whitehead: At the moment, we distribute our channels via satellite, cable, SMATV, DTH, hotels and IPTV. We are working aggressively on growing our traditional linear channel business. We are also looking at VOD and other branded catch-up services.

Whitehead: Currently, our channels are on a regional feed. I think as you go and develop your business, you need to be local in your proposition. As we grow, we will focus more on individual markets.
 

Whitehead: Satellite is still very much a tried and tested and reliable way to deliver our signal whether we are uplinking for many or for one market. If you look at serving just one market, for example, then fiber may be more cost–efficient. At the end of the day though, we consider all the options before making any decisions.
 

Whitehead: Despite the recession, the consumption of pay-TV has remained strong in the region.  According to research, in 2009, a recessionary year for most media, the pay-TV industry added 26.6 million net new subscribers. In my opinion, China and India will continue to lead the game in terms of new subs. In Southeast Asia, Malaysia, Indonesia and Vietnam will be increasingly important in driving regional subscriber growth, and we will see continued IPTV growth in Japan and Korea. HD TV will become increasingly popular but will probably not be profitable for awhile yet.
For BBC’s channels business, we are looking to grow our distribution and increase the number of subscribers we have across the region, with increased focus in Japan and Korea in North Asia, and India in South Asia.