Cable program providers expect 30% growth

Cable program providers have expressed optimism that their market in Asia and the Philippines can grow by as much as 30 percent this year as against last year, despite the economic problems facing many countries in the region.

In an interview, AXN Asia vice president for marketing and ad sales Ricky Ow said that the market for entertainment goes up unusually during bad times. "Probably, people just want to be entertained to forget about their problem and cable television is one of the cheapest forms of entertainment that offers the biggest variety," he said.

He said that almost everywhere, cable subscription goes up in a bad economy. "People go out less and seek some form of escapeism," Ow added.

Despite the problems besetting the Philippine economy and the local cable industry in particular, which is currently plagued with high cost and reduced bottom lines, Ow still expects revenues and viewership in the Philippines and the rest of Asia to grow by 30 percent this year compared to 2001, or about the same as the growth last year as against 2000.

Singapore-based AXN is the first 24-hour cable and satellite TV channel in Asia exclusively dedicated to action and adventure programming. Launched September 1997, the channel now reaches over 50 million households across Asia.

"It was probably good that we started in a difficult time. We at AXN had to learn the hard lessons first and become more conscious of our marketing and programming efforts," he said. The company was launched at the height of the Asian financial crisis.

With the move of Philippine cable TV companies Sky Cable and Home Cable and a host of others to review their programming, reduce the number of free channels and instead offer some as an add-on for a fee, and increase their subscription fees, Ow is confident that AXN will continue to be patronized by Filipinos and these cable companies. "We fit into the whole puzzle. We do not duplicate any other offering," Ow emphasized.

AXN is 100 percent owned by Sony Pictures Entertainment, the parent company of Columbia Tristar, the company that produce hit action movies such as Crouching Tiger, Hidden Dragon; Final Fantasy: The Spirits Within; Charlie’s Angels; Men in Black; Godzilla; Vertical Limit; and The Patriot.

Studies of box office and home video sales figures by Sony have shown that action is by far the most popular entertainment genre, especially in Asia.

According to Ow, AXN’s programming strategy is simple – to get the best action product from around the world and to build the channel’s distinctive brand through is programming franchises which are: action series (Relic Hunter), action movies (8MM), action animation (Sakura Wars, Curios Play, and Samurai X), action lifestyle sports (Core Culture), and action adventure-reality (Survivor, The Amazing Race).

AXN is now available in countries like the Philippines, Taiwan, India, Hong Kong, Singapore, Malaysia, Thailand, Brunei, Sri Lanka, Bangladesh, Pakistan, Indonesia, South Korea, Nepal, China, Macau, and Papua New Guinea. Separate AXN channels are operating in Japan, Latin America, Israel and Spain.

Ow said around 1.5 million Filipinos tune in to AXN because they appreciate quality and love action-adventure.

"Our perspective is that the viewer is the king, and not programming. We want to be relevant to the viewers and make sure that we meet their needs. And we believe that we have the right formula," he said.