'We Needed To Prioritize'

“We needed to prioritize,” explains Raymund Miranda, managing director for Universal Networks International in Asia-Pacific. The broadcaster, recently rebranded from NBC Universal International, recently reversed out of a much-publicized venture with Indian media major NDTV, according to press reports emerging with less than US$30 million, so far, after stumping up US$150 million two years ago.

“We now have our channels in Australia, we now have HD and are entering into the next phase of the business in Japan, which is equally complex,” Miranda adds. “Then there is Southeast Asia, which is a significant foundation deal for sales. Once we have that, then let’s focus our attention on India.”

Miranda says he is unable to comment on the specifics of the NDTV deal, as negotiations were handled out of Universal Networks international headquarters in London, though he reaffirms that India and Japan remain the company’s two biggest priority markets in Asia, while insisting the company’s original business plan remains on track.

Apart from female-oriented channel Hallmark, which became part of Universal through its acquisition of Sparrowhawk Media two years ago, Universal Networks is a relatively new player in Asia, rolling out channel brands such as Sci Fi and Universal from a virtual standing start last year.

The channel portfolio is expanding too, including HD (high-definition) offerings in Japan (which should extend to other Asian markets next year), as well as new channels such as crime and suspense offering 13^th Street, set to make its Asia-Pacific debut in Australia this week.

The importance of India, Malaysia and Korea
Miranda still needs to secure carriage for Sci Fi and Universal in a few more key markets, including India, Malaysia and Korea, before these lead channel brands can start tapping regional ad budgets. He hopes ongoing discussions with Astro, Malaysia’s dominant pay-TV player, will bear fruit sometime over the next 12 months, but a deal in Korea may take longer.

Miranda also declines to commit to a timeframe for India, arguing that it is important to establish a solid revenue base elsewhere that would support future pushes or investments in the sub-continent.

“I am not going to dive into a market just because we’re not there,” he says.

Being a latecomer can have its advantages, Miranda adds, as new opportunities that didn’t exist before are becoming available. Universal Networks channels are the first – and still the only – international channels to be distributed in the Philippines by local media company Solar Entertainment, which also handles ad sales.

In Thailand meanwhile the company was the first international broadcaster to strike a deal with local cable operator Triple T Networks, though Hallmark continues to be carried by the country’s largest pay-TV player, TrueVisions.

“Because we are coming in a bit later into the game, it allows me to try new things that haven’t been tried before,” he says. “We have seen some successes there.”

Multi-million dollar rebrand
Globally, the company embarked last month on a multi-million dollar rebranding push unveiled at Mipcom, the TV industry’s global trade show, repositioning its core channel portfolio and adding the Universal name to each brand to help drive uptake among viewers, operators and advertisers. The new channel brands will start rolling out internationally early next year.

At the same time senior executives also announced a major investment in original first-run content for their suite of channels, rolling out up to five new shows globally as a prelude to more localized productions.

The first bespoke show for this region, The Biggest Loser Asia, described by Miranda as a “toe-dip” into regional production, will debut on Hallmark later this month – “a lot earlier than people would have committed to a local production”, Miranda remarks.

More tailor-made content for Asia, including potential co-productions with local pay-TV operators, might not become a reality for at least another year however, as Miranda weighs up investment profiles and advertising potential around specific markets, as well as export possibilities and what might complement his channel brands.

As the impact of the economic downturn plays out across the world, Miranda’s watchword is caution when deciding where to invest, though he says this is unconnected to a possible takeover of Universal's parent, NBC, by US cable giant Comcast.

“We’re really looking at it as a case-by-case basis,” he says. “Because of the global financial crisis, you’re not going to make long-term significant decisions based on what data is available at this stage. Even next year, the jury’s out. It’s still bumpy.”