Malaysia’s unrelenting ascend

According to PwC’s Malaysia Entertainment and Media Outlook 2015-2019, the country’s entertainment and media industry is expected to experience an above average growth rate over the next five years. It is projected to grow at a compound annual growth rate (CAGR) of 6.1% over 2014 to 2019, compared to the global CAGR of 5.1%. Internet access is growing at a rapid rate with a CAGR of 13.4% over 2014-2019, likely resulting from the deployment of 3G and LTE networks with a rapid adoption of smartphones.

Government efforts

The National Film Development Corporation Malaysia (FINAS) has continued to increase its efforts in promoting Malaysia’s visibility in the media market at various international content markets to showcase the quality and diversity of Malaysia’s content industry. At the 2015 edition of MIPCOM, FINAS offered more than 1,600 hours of diverse creative content across feature film, animation, TV series, documentary and more.

The continuation of the Film in Malaysia Incentive (FIMI) in 2014 has also retained the momentum of estimated production spend in the country- from approximately USD34 million in 2013 to USD77 million in 2014. FIMI had attracted 21 productions, out of which 16 are foreign. Over the years, Malaysia has contributed to a number of worldclass animations, evident in the growing revenue of exports from creative content which has increased to more than USD140 million at the end of 2014 from USD46 million in 2009.

The FIMI scheme has increased the need of services by location managers with more foreign productions gathering interest to shoot in Malaysia. One of the things FINAS has done was to license people who can provide the service as location managers, in order to streamline and make known the cost and rates.

Beginning 2016, FINAS will put these location managers through courses to educate them on the area they are covering. They will also be equipped with the knowledge of logistics- nearest hotels, car rental, catering. FINAS is supporting the incentives by linking up these location managers with various relevant businesses (for logistics) so that production companies can get discounts and more.

Key developments

In February 2016, Telekom Malaysia Berhad (TM) and Viu announced their partnership with the launch of the latter in Malaysia. Viu is a freemium OTT service that brings to consumers, top quality fresh, sameday, localised and personalised content from top studios. Beginning mid-March this year, TM’s Unifiand Streamyx broadband customers will enjoy access to Viu as part of their subscriptions in addition to their existing HyppTV service.

In that same month, Primeworks Studios further strengthened its ties with Japan through a collaboration with Hokuriku Asahi Broadcasting Co. Ltd. (HAB) to produce Mad Markets Ishikawa: Japan Specials. The Japanese broadcast network came together with Primeworks Studios to produce a four-episode special of Mad Markets Ishikawa that will be aired every Sunday.

February 2016 also saw the acquisitions of rights for two football events. The Football Malaysia Limited Liability Partnership had announced Media Prima as the free-to-air broadcaster for the country’s top football leagues and cup competitions for the next three seasons from 2016 to 2018. Astro Malaysia Holdings Berhad (Astro) had also successfully secured broadcast rights to the English Premier League (EPL) for its next three seasons from 2016/17 to 2018/19. All 380 Premier Leage matches every season will be available LIVE on Astro TV in full HD and on all mobile devices via Astro on the Go (AOTG).

Astro also launched its on-demand offering (OD) last October where Malaysians can now pick their favourite shows and watch instantly on TV or a device. Consumers can select from thousands of entertainment choices. OD is available to Astro customers through an Internet-connected Personal Video Recorder (PVR) at home, or via Astro on the Go (AOTG) on a smartphone, laptop or tablet. Non-Astro customers can also enjoy OD content via AOTG.

Malaysian-owned content company, Ideate Media had teamed up with AMC Studios, IDW Entertainment and Circle of Confusion early this January to produce a new original scripted series for BBC America. Dirk Gently is a comedic thriller following an eccentric detective and his reluctant assistant. The series is an adaptation of British writer Douglas Adams’ wildly successful Dirk Gently comic novels.

Malaysia’s Prodigee Media and its digital media division, WebTVAsia signed five strategic partnerships with seven global media companies from China, Korea, U.S. and France. A film investment and co-production MOU between Prodigee and Heyi Pictures, Stellar Mega Pictures and Wanda Pictures has been signed. Three strategic partnership MOUs has been signed between Prodigee and Whaley Technology; WebTVAsia and CJ E&M; and Prodigee with Stylehaul. Dailymotion has also signed a content licensing agreement with Prodigee to develop, manage and monetise digital video content on the Dailymotion platform.

Last June, iflix had announced the launch of its revolutionary new service. Consumers in Malaysia and the Philippines can sign up for a 14-day trial granting full access to all of iflix’s world-class features and content without having to submit credit card or payment details to participate.

 

Steady waters in Philippines

With a population of over 102 million and internet penetration up by 8% to 44%, the Philippines proves good business for the pay-TV industry, especially direct-to-home (DTH) satellite and cable TV broadcast services.

According to SNL Kagan, the multichannel industry in the Asia- Pacific region is positioned for another year of growth. Market fragmentation is expected to impede digital upgrades due to localized ownership of last-mile networks. Consolidation of local small operators into largescale MSOs is therefore called for to facilitate digitization initiatives.

The Philippines is the one market in Southeast Asia experiencing relatively robust macro fundamentals, boosting telecoms, pay-TV and advertising industry growth, according to the Asia Pacific Multichannel TV Advertising 2016 by CASBAA. The publication also foresees Cignal to add ~250,000 new customers this year but ARPU growth will be muted until up-selling and packaging improves. SkyCable on the other hand is adding a modest level of new customers every year with ARPU remaining healthy.

Broadcasting scene

For the first 9 months of 2015, ABS-CBN Corporation has reported billion in consolidated revenue, bringing its net income to PhP1.9 billion which is 23% higher compared to the same period last year. The company reported higher third quarter revenues of PhP10.1 billion, 8% higher than the revenues generated during the second quarter of 2015.

According to Kantar Media, the top 10 programmes for free-to-air television during this period were all produced by ABS-CBN. Also, Star Cinema has continued to dominate the local box office, generating close to PhP2 billion in ticket sales. Star Cinema’s 10th release for the year, The Love Affair has become the group’s highest-grossing film shown overseas. Kantar Media uses a nationwide panel size of 2,609 urban and rural homes that represent 100% of the total Philippine TV viewing population.

As at January 2016, the list of the most watched programmes include FPJ’s Ang Probinsyano with an average national TV rating of 39.8% followed by Pangako Sa’Yo with 31.4% which tied at second with Maalaala Mo Kaya and Wansapanataym. Dance Kids maintained its good showing (29.8%) at third place.

Primetime newscast TV Patrol continues to be the choice news source of most Filipinos as the only news programme in the top 10 programmes of January 2016, landing at the fourth spot with an average national TV rating of 28.7%.

Key developments

Early August last year saw the launch of Mezzo Live HD, a premier classical music, jazz and dance channel. The channel launched on SKYCable and Destiny Cable in the Philippines, available 24/7 to subscribers of the cable network. Marking the first agreement for the channel in the Philippines, this is a major step in the channel’s development in South-east Asia.

In July 2015, E! Entertainment Television launched the I Heart Pinoy block, registering significant ratings growth. The block features features back-to-back premieres of hit original reality series It Takes Gutz To Be A Gutierrez and The StyleList, Inc. Viewing of the block was dominated by a young and affluent demographic, which improved significantly from historical averages.

Armoza Formats’ I Can Do That! had scored a commission with ABS-CBN last May. The show will be produced in-house and marks the first time that ABS-CBN has acquired an Israeli format, and the first format from Armoza to air in the Philippines.

On 16 March 2015, 9TV officially rebranded to become CNN Philippines, the predominantly English 24 hour free-to-air news channel and website. CNN Philippines will operate from studio facilities in Manila and offers a dynamic combination of local and international news as well as current affairs, feature programming and documentaries.

Scripps Networks Interactive had announced the launch of HGTV in the Philippines on two platforms SKYCable and Cignal Digital TV. The home lifestyle channel premiered on 1 March 2015 with a robust lineup of top-rated programmes about property, hybrid construction, design and extreme spaces. To cater to local audiences, Scripps Networks will also produce localised original short-form content Extreme Homes and I Like This.

RTL CBS Entertainment HD also announced in February 2015 the launch of a dedicated feed for the Philippines. The separate feed comes just over a year after the channel’s launch in the country. The same day telecasted line-up includes Entertainment Tonight, The Insider, The Late Show with David Letterman and Scorpion.