With an overspill of content created by the likes of Netflix Inc., Amazon.com Inc. and regional over-the-top players such as HOOQ and iflix Sdn. Bhd., industry executives are convinced that the traditional TV ecosystem should brace itself for an era of fragmentation.
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The panel at A panel of telco and broadcast representatives discussing the future of television at the annual ConnecTechAsia 2018 on June 26 in Singapore agreed that recent rounds of ambitious OTT strategies — including the release of homegrown productions — are pushing broadcasters to explore multiple platforms and new strategies for content distribution.
Anil Nihalani, head of connected media at Singapore’s MediaCorp Pte. Ltd., told delegates that broadcasters should take a leaf out of the online video playbook.
"We have started to produce original content that is not bound by linear channeling as well as explore short-form content which largely targets a younger audience," he said.
The "Netflix model," where everyone has control of content from intellectual property to content conception to distribution, is where the industry is heading, according to Shad Hashmi, BBC Studios' vice president of digital development global markets and operations for Asia.
Hashmi said this model was the driver behind the merger of BBC Worldwide Ltd. and BBC Studios, which was announced at the end of 2017.
Netflix recently partnered with cable operator J:COM to grow its footprint in Japan while also adding its first Filipino and Indian titles to its content library. Regional OTT player HOOQ is also ramping up its local content offering, having backed a remake of the South Korean comedy “Miss Granny” and announcing six finalists for its HOOQ Filmmakers Guild to turn into a pilot episode in 2017.
Malaysia-headquartered iflix is expecting a jump in its Chinese-speaking subscribers, as the Chinese government approached the platform to develop a push for local content, Patrick Grove, co-founder and chairman of iflix and CEO of Catcha Group, said at a Hong Kong conference in April.
"Rather than consolidation or streamlining, there will be a lot of fragmentation for broadcasters in the region as they face the technological challenge of finding ways to keep pace with their customers and their video-on-demand competitors," said Anna Lockwood, Telstra Corp. Ltd. Broadcast Services’ head of market development.
Meanwhile, Indonesian broadcaster Dens.TV’s chief content officer for IPTV/OTT, Ario Widyatmiko, was less sanguine about the future of traditional TV players. He said in Indonesia there is a price war going on, triggered by more than 15 local channels, rather than OTT platforms, competing for viewership.
"It is challenging for us in terms of monetization of content, as it can be delivered free and at very low prices, plus infrastructure has not caught up in Indonesia,” Widyatmiko said.
Additional ConnecTechAsia 2018 coverage:
Women struggle to break the glass ceiling in broadcasting