AXN – Evolution

“AXN is an international brand born in Asia,” explains Michael Grindon, President, Sony Pictures Television International (SPTI), which is responsible for all of SPE’s television, mobile and digital distribution businesses outside of the US.“We knew that action and adventure was popular in this region; we obviously wanted movies to be an important part of the mix, and we also wanted to screen new series from the US and elsewhere. The anime component now has a channel of its own, Animax, and programming like The Amazing Race Asia is being produced.”Grindon points to the amount of production activity occurring in the region, including movies like Stephen Chow’s CJ7 and Bollywood’s Saawariya. “Apart from Japanese anime, we’re looking at live-action anime in that market. We have an active production business in China and are looking to expand our facilities in Singapore. Then via our international licensing business, we’re looking to take that international content elsewhere around the world. On the channel side for the coming year we’ll be looking to grow our newest channels, AXN Beyond and SET (Sony Entertainment Television.)”

Offering a global perspective, Grindon says the only downside has been that the growth of cable and DTH in the region hasn’t been as significant as predicted. “Ten years is a good checkpoint to compare the growth predictions made back then versus the reality today,” he says, adding that it’s worth taking such a reality check into account when looking at the exponential growth projections that are being made about new media and mobile.Offering a regional perspective, SPTI’s Hong Kong-basedExecutive Vice President and Managing Director, Asia, ToddMiller reflects on AXN’s growth and evolution in the last decade.“As much as the concept of an action adventure channel was very focused, the channel has also evolved with the times and the industry. AXN continues to expand its programming scope - such as increasing local productions - while maintaining the spirit of the channel which is to bring cutting-edge entertainment to viewers in Asia.”Miller also outlines the ways in which AXN’s evolution has mirrored the changes in pay- TV in the region. “Changes at AXN certainly reflect what’s going on in the pay-TV industry - especially the tremendous growth of our subscribers and advertisers - but in many instances AXN has led the way in Asia. AXN was the first to secure exclusive first run shows such as CSI and used that advantage in our promotions. We were the first to embark on original local productions as well as a panregional format adaptation on the scale of The Amazing Race Asia. We are also one of the few general entertainment channels to extend our brand into the mobile arena and we hope to continue to be ahead of the curve as the industry evolves.”As to starting with a blank sheet, rather than having to adapt an existing channel for Asia, Miller says it has both its benefits and challenges.“The key advantage is customization. Since we did not have a pre-existing channel brand or programming identity to follow, we literally built this channel from the ground up with Asian viewers in mind. At that time, there were no thematic channels at all let alone a channel that brought … action and adventure entertainment to the region. We felt a demand for such a channel in Asia so we heeded that call and the rest, as the saying goes, is history.“(But) with no existing brand to guide us, a major challenge was having to create everything ourselves and learn through experience and mistakes. AXN also had to differentiate itself from other international cable channels and yet appeal to local viewers across Asia. Moreover, AXN was a brand new channel in the marketplace when pay-TV was still in its infancy in many Asia countries. Not only did AXN have to educate viewers about its unique program offering, but it was a challenge for the pay-TV industry in general to attract viewers to their platforms.”“On the programming front, AXN has hit numerous milestones with its line up of action-packed series and movies over the past 10 years,” says General Manager SPE Networks – Asia Ricky Ow. “AXN was one of the first channels in Asia to bring in Survivor (which) started the reality craze in Asia. Both Crouching Tiger, Hidden Dragon & Kung Fu Hustle were first and exclusive Asia blockbuster hits that performed phenomenally on AXN,” says Ow. “Crouching Tiger, Hidden Dragon was our big TV premiere in 2002, making AXN the most-watched international channel in primetime (6pm to midnight) in Taiwan, Singapore, Philippines and India when the movie premiered. Kung Fu Hustle also rated amazingly well across all markets in 2005.”Continues Ow, “The world’s most popular TV crime drama series,CSI has become synonymous with AXN. Viewers across Asia now tune in to the channel for the latest seasons of all three installments first and exclusively. We even started AXN CSI Supreme Sundays for viewers to catch all latest installments back to back on Sundays. (We were) first to bring The Amazing Raceto Asia viewers (and then) TheAmazing Race Asia – the biggest reality production undertaken by any broadcaster in Asia. AXN acquired the format rights to create the first pan-Asia production of The Amazing Race in 2005. It attracted over 15 million viewers in its first season, season 2 has just started airing.”Asked about the low-points of AXN’s decade in Asia, Ow says the SARS period in 2003 was very challenging for many businesses in Asia. “It was a low point but being able to grow revenue during that different period was very encouraging, and that spurred us on to do more! The short suspension in India early this year was also another low point for AXN. Though I have to say, the marketresponse to AXN’s suspension proved that AXN is very popular with India viewers.”And the high-points? “The decision to bring the CSIfranchise first and exclusively on AXN was one of the turning points for AXN that has brought high ratings and created the CSI phenomenon in Asia. Not only does AXN bring the top shows from around the world to Asia viewers, we create world-class original productions that are made in Asia with Asia viewers in mind. For example, the2006 Asian Television Awards recognized two of AXN original productions - Mondo Magic Singapore and Man’s World (Best Entertainment Program). AXN has also swept upnumerous awards for its creative promotion of programs on all platforms (on-air, print, to new media) at the world stage. In fact just this year alone, SPENetworks – Asia bagged 13 Promax/BDA awards.”As for what we can expect from the next ten years in Asia, Ow is excited about AXN going digital. “Technological breakthrough creates new horizons for branded channels. Not only will we see more original content on TV, but also on new media platforms that people canwatch on a variety of devices, whether it’s in the home, the office, cars or mobile phones. Multi-platform (TV, internet, mobile) property Afterworld, will be available to Asian audiences on AXN. And Asia viewers should look forward to new spin off channels of AXN. Sci-fi, Fantasy and Horror channel – AXN Beyond will be launched in Philippines in 2008 and plans are underway for expansion into the rest of Asia.”