Talking to FremantleMedia Japan KK’s recently appointed president and representative director Shingo Ishiyama, one thing becomes patently clear – the necessity for a patient approach and long-term strategy in that particular market. “Because of the structure of Japanese companies, people need an ongoing face-to-face relationship, there has to be real trust in a relationship for it to be fruitful,” says Tokyo-based Ishiyama, a 21-year veteran from Fuji Television Network, the company behind the original concept of 2008’s fastest selling format Hole In The Wall. He is now responsible for all FremantleMedia production operations in Japan as well as for raising awareness of the FremantleMedia brand there. He is also tasked with developing existing and new key strategic relationships with both broadcast and non-broadcast partners. Commenting upon the appointment, Patrick Schult, CEO, FremantleMedia Asia had said, “We believe Shingo is the perfect choice for helping the company add value for Japanese format creators by combining the uniqueness of Japanese television shows with the strength of FremantleMedia’s global network.” But Ishiyama plays down his role somewhat, “It’s not just about trying to sell (foreign) formats to Japanese broadcasters, we have set up a local production function, producing local content using local people. We are engaging in dialogue with broadcasters, local production houses, but these things take time (in Japan),” he says. Building on a relationship spanning over 30 years, BBC Worldwide has seen a healthy growth of volume sold into the market, according to Katsuhiko Waza, president BBC Worldwide Japan Ltd. “One marker of our growing success in Japan is the rise in the number of clients who attend our annual market, BBC Showcase held in the UK. This year we hosted our highest number of clients with over 20 Japanese buyers in attendance. We have a very wide customer base in Japan, taking advantage of the depth of the catalogue’s 40,000 hours of programmes. Therefore, we have something to suit each of our clients and their audiences,” he says. Waza explains that BBC Worldwide’s natural history title Planet Earth – the first HD co-production with NHK – was a big rating success on NHK gaining an average rating of 10.6 percent, a remarkable record for the 10pm slot. “Contemporary drama has also been performing exceptionally well. Robin Hood has consistently won the number one slot for LaLa TV in the Premium Theatre slot (Sunday 9pm) across 2008, while in January 2009 Primeval’s last episode won over 7.5 per cent ratings on NHK – despite transmitting during the day.” He adds that BBC Worldwide has had a branded block ‘BBC – Legend of Earth’ on BS Asahi for the past nine years and has also enjoyed box office success for natural history movies Earth and Deep Blue. “While traditionally, it is factual programming that has been the most popular genre with BBCW’s Japanese clients and they continue to be in demand, as the recent premiere of the breathtaking Superswarm series proved. In addition to factual programming, we are very pleased to see a growing demand for BBC Worldwide dramas in the past few years. Both our classic period dramas such as Little Dorrit and Tess of the D’Urbervilles as well as contemporary offerings in the form of the racy drama Mistresses.” Without naming specific titles, Waza says BBCW are in discussion on their upcoming Natural History programmes and other genres covering dramas, factual and music. He says, that while there is good demand for British drama, the trend is still for big budget American and Korean dramas. In terms of opportunities for (foreign) content, BBC Worldwide’s Waza says the growth of HD programs offers more opportunities in Japan as does an increase in different media platforms. “When analogue broadcasting ceases operations in 2011, there will be additional satellite channels for audiences to choose from, he says. “The challenges remain the same. Dubbing costs are the main obstacle and will continue to be a challenge for satellite and cable channels. In terms of digital media opportunities, the Japanese market is still struggling to find a profitable business model for streaming and downloading content.” Isao Ryuho is senior director, TV distribution, Sony Pictures Entertainment (Japan) Inc., a legal entity specializing in distribution for theatrical, home entertainment and TV. Additionally SPEJ is a sole shareholder in Mystery Channel Inc. and is a major shareholder of AXN Japan Inc. and Animax Japan Inc., all of which are carried on SkyPerfecTV! , CATV and IPTV networks. Ryuho says that Sony content, predominantly produced by the US parent company, is fairly widely licensed in Japan across all media – new media including mobile and On-Demand through to Pay TV, Terrestrial networks/local syndication/BS digital, and CS Basic stations. Foreign content, once an integral part of TV schedules, has seen its massive market share steadily eroded over the past couple of decades. But its popularity is on the rebound. “Foreign content, especially US drama, was indispensable material for TV broadcasting since TV’s initiation in Japan. However, since two to three decades ago, with increased demand and catch up in production capability, more Japanese content has become more popular, generally speaking,” says Ryuho. “Sonata in Winter, starring Korean hero Bay Yo Jung, was aired by NHK a few years ago and this show has become extremely popular as social phenomenon, attracting female TV viewers in Japan. Now US shows are back on CS basic TV as well as on local syndication markets. US shows are still very important factors for the TV industry and they are consistently and stably supported by TV viewers. Korean dramas also continue to occupy a good position in the TV market.” Ryuho outlines some of the current challenges facing content and channel providers. ”In an overall downtrend in economic situation across the industry, increased cost for acquisition, inability of budget allocation to wanted foreign allocation are challenges broadcasters face. Reduction in a number of slots for foreign content, being substituted with TV shopping programs is what concerns content providers.” Sony’s fellow major Warner Bros. meanwhile, just announced that Jupiter Entertainment Co. Ltd has acquired the rights to a slate of more than 80 theatrical motion picture titles for broadcast in Japan on its movie specialty channel Movie Plus via a three-year licensing agreement with Warner Bros. International Television (WBITV), a division of Warner Entertainment Japan Inc. Announcement was made by Hiroyuki Nakatani, representative director and president, Jupiter Entertainment Co., Ltd.; and Mitsuru Oda, vice president and general manager, WBITV. Under terms of the agreement, from spring 2009, Jupiter will have the rights to broadcast, on its Movie Plus CS basic channel, a number of recent high-profile, hit feature films including The Departed, Blood Diamond, The Bodyguard and Goonies, among many others. “It is expected that the multiyear licensing agreement with Warner Bros. will enhance customer satisfaction for Movie Plus, the largest movie specialty channel in terms of its viewing households, and contribute to the further growth of the multi-channel market in Japan,” said Nakatani. “Quality feature films continue to prove a hit with viewers around the world, and we are happy to announce this multiyear deal with Jupiter’s Movie Plus channel,” said Oda. “We look forward to working closely and successfully with Jupiter to make our blockbuster movies hits with consumers in Japan.” Movie Plus started service as a cable TV channel in 1989 and is going to mark its twentieth anniversary in 2009. Movie Plus is Japan’s largest movie specialty channel, reaching 7.58 million homes as of the end of March 2009 and ranked in the top five of CS thematic channels selected by the channel-viewable households. In the CS thematic channels joint audience measurement by people meter conduced by Video Research Ltd. in 2008, Movie Plus topped the list of foreign film channels in average ratings (household) earned. Also, in digital broadcasting ratings measured by Jupiter Telecommunications Co., Ltd.’s survey on subscribers to “J:COM TV digital,” Movie Plus ranked the top of basic movie specialized channels. On the channel provision side, James Gibbons, senior vice president and general manager – Japan, Discovery Networks Asia Pacific describes the Japanese media landscape as highly competitive, due to the strength of terrestrial TV and the high penetration of broadband and mobile. On cable, Discovery Channel, Discovery HV and Animal Planet are offered by various operators throughout Japan, the largest being JCOM – Discovery Communications’ joint venture partner for Discovery Japan and, along with BBC Worldwide, for Animal Planet. The biggest IPTV platform upon which DNAP has carriage is Hikari TV; for DTH, Discovery and Animal Planet are available on the Skapa 124/128 platform and the e2 platform on CS110. “At 24 percent, overall Pay TV penetration is lower than some other markets and the industry needs to find ways to expand this base through increasing the appeal and relevance of the content and stepping up marketing efforts. Ratings information is not as comprehensive as in some other markets, which creates an additional challenge to the growth of ad sales, says Gibbons.” On the upside however, he says that as Pay TV becomes more entrenched in the Japanese market, awareness of the offering grows. “Audiences are increasingly drawn to the fact that Pay TV offers a window into some of the most successful and popular TV programming produced around the world. Our content travels and appeals to audiences all around the world – people are innately curious about the world that they live in. On Discovery Channel for example, viewers can enjoy the same hit series that have wowed audiences in the US and beyond, including Mythbusters, Man vs Wild and Deadliest Catch. This programming is not widely available on any other platform other than Pay TV. The thematic nature of Pay TV channels makes it easier for audiences to navigate to what they want. Increased efforts by foreign channels to localize the relevance of their line-ups has also driven audience acquisition and retention.” He explains that both Discovery Channel and Animal Planet are fully localized for the Japanese market. “Programme sourcing, scheduling, promotion and languaging is all done in market by the team in Tokyo, assisted by Discovery Asia’s Singapore operation. Both channels are available in 100 percent Japanese language with either voice dubbing or subtitles. The grid is designed to address Japanese viewing preferences, and the on and off air promotion is created and executed in a style relevant to the audience. Both channels work extensively with local partners to extend the brand experience beyond the channels. These include JAXA Cosmic College (for Discovery) and the Coleman Green College (for Animal Planet). Since its launch in 1997, Discovery has grown to become one of the most distributed Pay TV channels in Japan, with 6.7 million subscribers. Animal Planet launched in 2000, and has rapidly increased its sub base to a current total of 5.2 million homes. Gibbons says that in 2005, Discovery HD became the first 24-hour international HD channel to launch in Japan. “In 2008 we launched the simulcast of Discovery Channel, and renamed Discovery HD…Discovery Channel HV. It was the first HD simulcast of Discovery outside the US, and current distribution is 1.3 million homes.” “Key series on Discovery that are popular around the world do well in Japan, whether that’s Mythbusters, Man vs Wild or Deadliest Catch. However the Japanese have a special interest in Science programming, and the recent Extreme Bodies series was very well received. Space exploration also has a special appeal and the recent NASA Missions series rated very highly. On Animal Planet, dog and cat programming is very popular due to their prevalence as pets in Japan. The family audience for Animal Planet also has a special fascination for insects and dinosaurs. Like Discovery, global hits series such as Meerkat Manor have a strong following.” Gibbons adds that the RVCS peoplemeter survey shows a steady improvement in Pay TV’s share of overall viewing in Japan. “Among the factors is an increase in the audiences of channels featuring mainly foreign content.” And over at NBCU Global Networks Asia Pacific, managing director Raymund Miranda, shares the success so far of fully-owned entity SCI FI Japan, which is carried on J:COM, SkyperfecTV!, Sukapa! Hikari, BBTV, Honjo Cable, Adachi Cable He says that SCI FI Japan reaches over 2.4 million households (as of April 2009), showing steady growth since its launch in April 2008 to 1.9 million households on J:COM, SkyPerfecTV and Yahoo! BB TV. “SCI FI Japan offers its series in both subtitled and dubbed formats,” says Miranda, “viewers can expect a mix of 50/50 subtitled and dubbed series on SCI FI Japan in the future. Localisation efforts have been made to lend familiarity to the channel and raise the channel profile. They include using local popular singers in on-and-off air marketing activities like an image campaign and specials. Most recently, SCI FI Japan partnered with carriage operator, J:COM to hold a mini concert with hot Japanese celebrity Nana Tanimura.” Following a partnership with Yahoo!, Japan’s largest internet portal, to promote its brand new series Sanctuary, that show achieved three times the channel’s average rating during its premiere telecast. “The show and the webisodes from the series have been featured as part of Yahoo!’s special coverage of foreign drama series, and Sanctuary was given top billing on the Yahoo! Video page, and a link was even added to the top page of Yahoo! Japan. This partnership has been extremely helpful in raising awareness about the show and also through the link to the channel website, traffic to www.scifi.co.jp doubled in April. Many of our viewers spend many hours online as well and we need to engage them in the digital space. We will continue our relationship with Yahoo! and work with other partners going forward.” Continues Miranda, “Hollywood and Asian movies have proven to be very successful on SCI FI channel, as demonstrated by the popularity of our Saturday night SCI FI Movies slot. A recent airing of blockbuster movie Hellboy delivered the highest rating for the channel this year, propelling the channel to #1 spot amongst all foreign drama channels during its final hour of broadcast. Foreign series genre has gained momentum following the high popularity of foreign movies in Japan. Based on research amongst pay-channel users, foreign drama channels are ranked fourthin popularity after movies, sports and music respectively. (Source: INTAGE Inc) While foreign content especially in the genre of drama series have shown to be generally well received, a challenge for SCI FI Japan is to increase its top of mind recall with its target audience, and by using new media to do so.”