There’s an old stock market adage that says you can predict a peak in the market by noticing when your average punter starts having a flutter on some shares. It comes to mind when you look at the global content industry. Never before have so many networks of all shapes and sizes – some of which have never before ventured into content production – placed their stakes on scripted success. Yet as audience fragment, getting a direct hit is harder than ever. The surge in supply has thrown up interesting shows but some equally intriguing business models, raising questions over just how sustainable the current content distribution business really is.
Ken: Asia-Pacific is a fascinating region with different sorts of activities from China to Korea to India. Every market is a little different and that’s why every country needs a different approach and we are doing just that. We work with a variety of partners – traditional to the new media clients. Everyone is trying out new models and that is something that we love to be part of. What remains true across all markets is that with so many services delivering programming, high-quality, premium content is more important than ever.Today, consumers have become accustomed to the fact that if they’ve subscribed to a service they expect it to be available on any screen, which is something that we have adapted. The exciting part here is that there are so many models out there and everyone is so entrepreneurial. We are looking at a wide range of models and creating deals that make sense for us.
What genre works best in Asia?
Ken: Every country has different taste. India, for example, is definitely looking at content suitable for families. Generally, they look for content that brings the family together after or during dinner, where several generations watch at the same time. They are looking at mass audience type of shows. Yet, there is also a noticeable trend of clients looking for bolder shows to differentiate their services. For example, Korea is looking at something else: ‘Hey, can I get something smarter? Can I get something that is pushing the envelope a little further?’ Titles such as Better Call Saul or Masters of Sex do well there. China has a bigger range because we are talking about potentially billions of viewers. So, it’s difficult to say what content works well across Asia-Pacific because I think they all do and the leverage we have is our heritage as Sony Pictures and the top notch content that we produce. We do not have a U.S. affiliation with networks like Disney, ABC or NBC Universal. We are an independent producer so while we work with all major networks, we also work with companies such as AMC and FX who has been looking for high-quality shows that are different from the networks. Our portfolio has a very wide range – we have premium network shows that are for general viewings, such as Breaking Bad, Better Call Saul, Masters of Sex, Start Up, Bloodline on Netflix and many more.
What are the new markets you’re looking at?
Ken: The focus right now is less on seeking new markets but strengthening within the existing market. We are only touching a portion of the population here. The content ecosystem hasn’t been able to reach out to everybody and one key reason relates to technological holdback. Today, traditional TV primetime has vanished due to the fact that content can be delivered anytime, anywhere via many devices. OTT is a great example of this delivery. However, we are already doing business in new locations such as Mongolia and we’re looking into Myanmar, too. But, I still believe if we can gain another 5% in India or China that will probably cover the entire opportunity in Mongolia. We are still focusing on the key sectors such as Indonesia, India, and China which has untapped segments. Do you see a market for VR content and a possible new revenue stream? Ken: There is some VR content in production with several more in the pipeline. Ghostbusters and a few others are already produced and will be part of the distribution catalogue. Right now, we are seeing interest from China and Korea as these are technologically the more savvy locations. VR is a very immersive way of experiencing the world and it complements the main show or series. The entire scope is simply brilliant and we will be rolling out more of this content. There’s a clear market for games and consumers are willing to pay for it. Sony just rolled out the PlayStation VR for the first time. As for other VR content related to film or TV, some are enhanced promotional companions to the main shows so the idea is to get people even more engaged with an existing TV series, or connected to an up-coming movie. There are also certain products that we will be building with an even greater experience that could be revenue generating. We are still looking at all possible models.
