In the run–up to the annual BCWW show in Seoul, Television Asia Plus asks key content and channel providers about current opportunities and obstacles to their business in South Korea At Disney Media Distribution, which spans both content licensing and channel development, Rob Gilby, managing director, DMD Asia Pacific explains the significance of South Korea to the company’s business in the region, “not only for the strong demand we track for our content among kids and families in that market but also as it is one of the most exciting digital media markets in the world. We work with all the key television and digital media service providers in that market to make Disney’s world–class portfolio of quality feature films, critically–acclaimed scripted and reality series, as well as live action and animated kids content available to consumers across an array of platforms and devices.” Gilby says that DMD sees the demand for both its globally, and locally–produced, content growing in Korea. “Our live action scripted dramas such as Desperate Housewives and Grey’s Anatomy are hugely popular with Korean viewers. Desperate Housewives is available across a world–record seven windows in Korea currently! Our recent announcement of the intent to form a joint venture with SK Telecom to launch Korean– language Disney–branded channels in South Korea is expected to drive more demand for our live–action and animation content among kids and families in the market.” On the opportunities for growth, Gilby says that Disney’s planned joint venture with SK Telecom is expected to launch Korean– language versions of Disney Channel and Playhouse Disney Channel targeted at kids and families in South Korea. “These two channels will be available in HD multiplex, as well as SD format over cable, direct–to– home and IPTV platforms and related on–demand digital media services in the market.” He continues, “Koreans are some of the earliest adopters of digital media technologies and platforms. HD, high–speed mobile and on–demand content platforms are already broadly available to Korean audiences. We can expect to see providers trialing 3D–TV, 4G–mobile and other leading edge technologies in that market going forward.” Also spanning both content and channels business, AETN International’s managing director Asia Pacific Alan Hodges says that company has seen over 60 percent year over year growth for program sales as the Korean economy rebounded strongly. He says the increase in sales is driven primarily by an interest in Military History and HD product. “Our linear channel offering is HISTORY HD as a foreign retransmission channel; it’s carried on SkyLife, KT, SK and C&M.” “We have had excellent feedback from the market on HISTORY HD triggered by the quality of programs and the HD feed. This is a big year in Korean history with various historical landmarks including 60th Anniversary of the Korean War so our content has really resonated.” Continues Hodges, “The Korean subscription TV market is still in transition as the IPTV operators explore various business models, and with cable in the midst of a digitalization drive. That said, Korea is still a leader in all things digital including VOD and mobile. Due to consumer and industry demand, HD is now a must for international broadcasters looking to enter the Korean market. As for 3D, Korean platforms are taking a lead on 3D offerings which will afford further opportunities for 3D content leaders like AETN International.” Sharing an overview of Turner Entertainment Networks Korea Limited activities is vice president and general manager, Ron Lee. “Turner operates its business via Turner Entertainment Networks Korea (TENK), which joined with JoongAng Ilbo (JAI) in 2006 to launch Cartoon Network Korea and again in 2009 to rebrand and relaunch QTV. TENK also oversees CNN International’s cable and DTH distribution as well as other Turner products such as the CNN Korean Website, CNN mobile, CNN Broadcast (excerpt licensing), CNN Hotel Partnership Plan, Cartoon Network, CNN and CNN Headlines on WebTV, Cartoon Network Consumer Products and Cartoon Network Interactive Services (online games, etc.).” Lee explains that Turner Networks currently available in Korea include CNN, on Cable TV, DTH and IPTV as well as via DMB, mobile and WebTV with broadcast affiliates in the country including KBS, MBC, SBS, YTN, MBN and OBS. Cartoon Network has been broadcast in Korea since 2003 as a foreign retransmission channel and relaunched as a local channel in November 2006. CNK is currently available on Cable TV, DTH and WebTV. TENK entered into another joint venture with JAI in 2009 to rebrand and relaunch JAI’s Q– Channel. The new QTV, a factual entertainment channel, can be seen on cable TV, DTH and WebTV. And CNN Headline News is available on WebTV service in Korea. “The Korean cable TV industry is highly competitive and TENK’s mandate is to ensure our products and services address the local market’s needs and challenges. Full digitization of television service is expected to take place in 2012 but analog cable TV with very limited bandwidth and channel space is still the dominant player. Therefore, the entry of foreign or local channels into the Korean cable TV market (still the key player in the local subscription TV market and way ahead of DTH and IPTV) is challenging to say the least. However, the demand for good content is there and should rise once full digitalization takes place. As well, the multi–media environment in Korea allows for diversity in which content providers can reach their audience. With Korea being a leader in mobile broadcasting as well as other new media devices, this demand is expected to continue to grow.” Continues Lee, “TENK is always keen to explore the many new opportunities opening up in this country. With full digitization to take place in 2012, HD content is already in high demand. In fact, it’s no longer an option but a necessity to remain competitive in the market. Also, with Korea being a leader in 3D technology, the industry demand for 3D content is expected to rise. We are also aware that cross platform content will also play a key role as demand is likely to continue to grow for products that can live on various multi– platforms.” “Korean legislation for broadcasting is still relatively restrictive for foreign players hence TENK’s strategic partnership with JAI. The Korean government still levies ownership restrictions for the broadcasting business in Korea and there is a highly restrictive foreign vs. domestic content quota. Having said this, there have been recent moves towards some relaxation of policies, especially the recently legislated Media Law. On the economic front, Korea managed to avoid a recession in 2009. In 2010, major global sporting events, including the World Cup, are expected to fuel higher spending. As well, the advertising industry is expected to see an 8% growth in revenue this year, indicating that the overall world–wide economic depression will not be a significant hindrance to growth.” Joyce Yeung, SVP & GM Asia for BBC Worldwide Sales & Distribution comments, “We are very active selling into terrestrial, cable/satellite and IPTV platforms. Our natural history, factual and children programs are popular among FTA and cable channels. In recent years, we have seen an increasing demand for our contemporary dramas series such as Primeval, Hotel Babylon, Robin Hood and Being Erica.” Despite the market being perceived as traditionally dominated by local fare, Yeung says there is always demand for high quality imported content, especially by cable and satellite channels which are growing fast in numbers. “Local channels are always looking for good general entertainment programs, movies, factual entertainment and natural history programs. Also recently there is a growing demand for high profile formats.” Yeung says the ad sales market potential is growing and expected to be more relaxed around regulations related to media and advertising, “and we expect more opportunities for foreign program production. Basically, the ad sales pie stands to grow once the government deregulates some of the terms for ad sales market, by for example, introducing commercial breaks/product placement onto FTA.” And Tommy Lin, SVP and General Manager, Discovery Networks Asia–Pacific, North Asia shares an update on Discovery’s activities in Korea. “DNAP is currently broadcasting Discovery Channel, Animal Planet and Discovery HD World in Korea. Discovery Channel has been in the market for over 15 years – we introduced it in 1994 and are carried on CMB and Skylife . Animal Planet entered the market in 2002 and is now distributed on Skylife. The first international market outside the US we introduced Discovery HD in was South Korea – we launched it as a block on Korea Digital Broadcasting’s SkyHD in February 2005. Last year in March we launched it as a 24–7 HD channel. We have several non–linear content sales partnerships in Korea (e.g. KFN).” Lin says there is still a demand for imported channels if these are well–known, global brands with high–quality content like Discovery. “Viewers know what they get when they tune in to Discovery Channel, Discovery HD World or Animal Planet – we’re synonymous with providing the best factual entertainment in the market. In terms of programming, there is a strong interest in military content and our global hit series like Man vs Wild are popular as well as blue– chip documentaries.” “Discovery Networks Asia– Pacific has a portfolio of seven channels in the region – Discovery Channel, Animal Planet, Discovery Travel & Living (soon to be TLC from 1 September), Discovery Turbo, Discovery HD World, Discovery Science and Discovery Home & Health. We are always pursuing opportunities to launch new channels in the market and continue to grow our business. 3D content is something that has a lot of potential in Korea and we believe there will be a demand for Discovery 3D content when we make it available.”