THE END OF THE DIGITAL BEGINNING: CHALLENGE FOR MEDIA COMPANIES NOW LIES IN HOW TO IMPLEMENT THEIR DIGITAL STRATEGIES
Digital migration is increasingly playing out differently across the various entertainment and media industry says PwC’s Global Entertainment and Media Outlook 2012

12 June 2012 – Despite ongoing economic uncertainty, the past year has seen global sales of tablets and smart devices reach record levels once again, underlining the growing revenue opportunities from digital delivery of entertainment and media (E&M) content and advertising to increasingly connected, and particularly mobile, consumers.

According to PwC’s annual Global Entertainment and Media Outlook 2012-2016, released today, digital opportunities are now well understood by media companies, advertising agencies and advertisers themselves: the industry is approaching the ‘end of the digital beginning’ as rising comfort levels with digital mean that it is becoming business-as-usual. Although the ‘fog’ experienced in the past few years around strategic options is lifting, there is more to be done: today’s challenge is in the implementation of those digital strategies.

A world of difference 

PwC believes that though the focus may still be on digital migration, challenges for E&M companies differ according to diverging market pictures across segments and geographies. Tipping points and contrasting market development rates highlighted by this year’s Outlook data and analysis show:

• Global entertainment and media spending on digital advertising and consumer formats increased by 17.6 percent in 2011 compared with only a 0.6 percent rise in non-digital spending. Digital’s share of total spend will grow from 28 percent in 2011 to 37.5 percent in 2016, and digital spending will account for 67 percent of total E&M spending growth to 2016.
• Digital maturity varies widely at a segment level. For example, global spending on digital recorded music formats will overtake physical distribution in 2015, reaching 55 percent of total revenues in 2016. And global spending on online and wireless video games will overtake console and PC games revenues in 2013. By contrast, the digital component of consumer magazines will account for only 10.4 percent of spending by 2016, up from 3.1 percent in 2011.
• Global spending on music rose 1.3 percent in 2011, the first gain in many years, thanks to growth in the concert and music festival market and a slower decline in recorded music. Rises in digital music spending mean that overall, global spending on recorded music will finally begin to increase in 2013.
• Mobile internet access subscriber numbers, a key driver of digital spending, will more than double during the next five years to 2.9 billion by 2016, of which almost 1 billion will be in China. In India, mobile internet subscribers will increase from a low base at a compound annual rate of 50.8 percent to 2016, making it the fastest growth market for mobile internet in the world.
• By 2016, global mobile internet advertising revenues of $24.5 billion will grow at 36.5 percent compounded annually, to almost match the size of the classified internet advertising market. However, paid search at $78.1 billion and banner/display at $46.6 billion will retain the lion’s share of the market in 2016. China’s mobile internet advertising market will grow at a compound rate of 68.4 percent to reach $6.2 billion in 2016, making it the second largest market in the world behind the United States at $9.4 billion.
• The newspaper publishing segment illustrates diverging trends across mature and growth economies. There will be ongoing declines in some territories such as the United States (declining 1.4 percent compounded annually to 2016, and expected to be worth 43.8 percent less in 2016 than 2007), but strong growth in countries where the digital infrastructure is less mature, such as Argentina (11.9 percent growth compounded annually to 2016), Indonesia (11.2 percent), and India (9.6 percent).
• France passed the United Kingdom and Germany in 2011 to become the second largest TV subscriptions market in the world behind the United States, driven by a 76 percent rise in IPTV households. In the TV advertising segment, spending in Russia surged by 20.2 percent in 2011; by 2016, Russia will overtake the UK, Germany, Italy, and France to become the largest TV advertising market in EMEA (Europe, Middle East and Africa).
• In the worldwide filmed entertainment market, over-the-top/streaming services will grow at a 21.0 percent CAGR to $11 billion in 2016, and will overtake spending through TV subscription providers in 2012.

Marcel Fenez, Global Leader, Entertainment & Media, PwC, said:

“The various segments of the E&M sector are at different stages of digital development, but they are all embracing digital to meet the ever-changing demands of consumers effectively and profitably. Entertainment and media companies have reached what we’re calling the ‘end of the digital beginning': they’ve made the commitment to a digital future, and are now striving to make the necessary changes to their products, distribution and organisations.”

Entertainment and media companies reshape and retool for life in the digital new normal

According to the Outlook, the challenge now for E&M companies in a world where digital is established as ‘business as usual’ – and in those markets where the infrastructure is suitably developed to support digital distribution and consumption – is to focus on planning out and executing their digital strategies. Uncertainty in past years triggered by digital migration is giving way to a sharper focus on identifying, choosing and executing the business models, organisational structures and skill sets to harness new consumer behaviours and deliver rising future value.

• A finger on the consumer’s pulse

E&M companies need more than ever to understand consumer behaviours and motivations in order to engage with and immerse consumers in their connected, multi-screen environment. Data analytics tools are required to mine the mass of customer data, however the development of such tools may be triggering consumer fears over risks to their privacy. PwC believes that avoiding this will require a shift of industry mindset from ‘customer ownership’, towards facilitating a position where the customer is ‘in control’.

Companies will find that giving consumers more control over how their personal data is used may deliver higher benefits back to consumers, encouraging them to volunteer even more information, as well as providing better value for advertisers and higher rewards for media owners. Businesses need to aim for a win-win model in which the medium, the advertiser and the consumer all collaborate and benefit. Ultimately, the only person who ‘owns’ the customer – and the customer’s data – is the customer him or herself.

• New roles emerge across the E&M value chain

E&M companies need to identify the role or roles they will occupy as new structures emerge across the digital value chain, and work collaboratively with other providers with complementary capabilities.

According to the Outlook, these roles could include:

• acting as the online destination or physical auditorium that hosts the customer experience (the ‘venue’)
• aggregating and filtering consumers’ content requirements (the ‘community curator’)
• providing exclusive content (the ‘content monopoliser’)
• being the ‘device developer’
• acting as the consumer’s trusted content companion across devices (the ‘digital services champion’)
• being the third-party specialist supporting experimentation, innovation and execution (the ‘ideas generator’)

For creative and media agencies, the rise of unpaid or earned media reflects an innovative new fusion of advertising, content and analytics, and presents an opportunity for sweeping change in their roles and business models. Advancing socialization is feeding into the widely-accepted concept among agencies and advertisers of “bought, owned and earned” advertising. A fourth category is emerging — “managed” advertising, (the orchestrated use of social media, such as engagement via bloggers). Everything that agencies do for their clients now has an embedded digital component and agencies are directing clients’ attention toward output measures such as earned/unpaid media reach, and purchasing intentions.

There are therefore opportunities for agencies to act as digital marketing and brand consultants, guiding their clients with insights into opportunities around the aggregation of data, socialization and content – particularly as the historical distinction between traditional and digital disappears.

• The benefits of reorganising around digital

To date, many E&M businesses have developed digital as an adjacent operating group, with separate infrastructure, solutions and staff. But in the ‘new normal’, PwC believes that companies need to move away from this siloed approach, instead embedding and integrating their digital operations into the main enterprise, and driving improvements in three key areas: profitability, by reducing operational costs through common platforms and integrated business processes; scalability, gaining greater agility to grow and flex the business; and innovation, through integration, automation and talent.

To realise these benefits, companies will have to tackle challenges around rights, royalties and piracy – areas where many E&M companies are often burdened by rigid, complex, bespoke legacy systems There are additional issues in leading and marshalling the talent and culture of innovation, needed to make digital implementation a reality, particularly in meeting the distinctive employment needs and expectations of the Millennial generation.

Added Fenez:

“As the walls of the silos come down, individuals within these organisations will need to adapt to new performance indicators and operating behaviours or face the risk of being left behind as the digital generation moves past them.”

The end of the ‘digital beginning’ arrives

In the face of sweeping change and uncertainty, the E&M industry has spent the past few years seeking effective business and operating models for the new world, through a cycle of constant experimentation, ongoing innovation and targeted analysis of the results. This will continue. But with digital now at the core of business-as-usual, PwC believes that experimentation and execution are no longer sequential but will proceed in parallel, enabling E&M companies to press ahead into the ‘new normal’ with confidence.

Said Fenez:

“We’ve reached the point at which talking specifically about ‘digital’ increasingly misses the point. As digital becomes the standard, its rising penetration ceases to be a topic for discussion in itself. What matters now is how companies capitalise on it and operate within it.”

ENDS

Key stats from PwC’s Global Entertainment and Media Outlook 2012-2016:

 Global spending: Over the next five years, global spending on entertainment and media is projected to rise from $1.6 trillion in 2011 to $2.1 trillion in 2016, a 5.7 percent compound annual advance. This growth lags some way behind below the projected 6.6 percent compound annual increase in nominal GDP over the same period, reflecting the ongoing shift from higher-priced physical distribution to lower-priced digital distribution.

 Largest 13 E&M markets: There were 13 countries in 2011 with total E&M spending (combined advertising and consumer/end-user revenues) above $25 billion, led by the United States at $464 billion, Japan at $193 billion, China at $109 billion, and Germany at $99 billion. China passed Germany in 2011 to become the third largest E&M market in the world. Of the leading countries, China and Brazil will be the fastest growing with projected compound annual increases of 12.0 percent and 10.6 percent, respectively. Brazil overtook South Korea in 2011 to move into ninth place, and during the next five years will pass Canada and Italy to become the seventh largest market.

 Advertising spending: The most cyclically sensitive E&M spending stream, advertising spending increased by 3.6 percent in 2011. This represented a slowdown from the 7.0 percent gain in 2010 that was augmented by advertising associated with the FIFA World Cup and Winter Olympics, and by the rebound from a sluggish 2009. In spite of growth during the past two years, advertising still remained lower in 2011 than in 2007, the beginning of the Outlook’s reported period. Overall global advertising will increase at a 6.4 percent compound annual rate from $486 billion in 2011 to $661 billion in 2016.

 Advertising segment growth: Internet advertising will be the fastest-growing advertising category with a 15.9 percent compound annual increase, followed by the small video games advertising market, at 11.2 percent. Television advertising will average 6.6 percent compounded annually through 2016, out-of-home advertising will grow at a projected 5.0 percent compound annual rate, followed by radio at 3.8 percent compounded annually. The print segments—newspapers, consumer magazines, trade magazines, and directories—will average less than 3.5 percent compounded annually.

 Consumer/end-user spending: Overall consumer/end-user spending will rise from $802 billion in 2011 to $966 billion in 2016, a 3.8 percent compound annual increase. Video games are expected to rebound and become the fastest-growing segment of consumer/end-user spending during the next five years with a 7.0 percent compound annual increase, followed by TV subscriptions and license fees at 6.2 percent compounded annually. The remaining segments (see notes) will grow at rates of 4 percent or less.

 Internet access spending: Internet access – whether wired or mobile – is not an entertainment and media segment in itself, but is a fee to access content and is a key driver of entertainment and media spending in most segments. Global Internet access spending will rise from $317 billion in 2011 to $493 billion in 2016, a 9.3 percent compound annual increase.

 Mobile Internet access: Spending on mobile access increased from 26 percent of total global Internet access spending in 2007 to 40 percent in 2011 – and will account for 46 percent in 2016, almost catching up with wired access spending.

 Consumer magazines: Overall global spending declined during the past four years, although annual decreases in 2010–11 were less than 1 percent. The market is expected to begin to increase in 2012, averaging 1.3 percent compounded annually to $80 billion in 2016 from $75 billion in 2011.

 Consumer and educational books: global spending on electronic books will rise at a CAGR of 30.3 percent to $20.8 billion in 2016, taking electronic books’ share of total global book spending from 4.9 percent in 2011 to 17.9 percent in 2016.

 Out-of-home advertising: Indonesia, Russia, and India will be the fastest-growing countries for out-of-home spending through 2016, with CAGRs of 11.2 percent, 11.0 percent, and 10.9 percent, respectively.

About the Outlook

PwC’s Global Entertainment and Media Outlook 2012-2016, the 13th annual edition, contains in-depth analysis and historical and forecast data for advertising and consumer/end-user spending in 13 major industry segments across 48 countries. Find out more at http://www.pwc.com/outlook.

Segments covered by the Outlook

Business-to-business, Consumer and educational books, Consumer magazine publishing, Filmed entertainment, Internet access spending: wired and mobile, Internet advertising: wired and mobile, Newspaper publishing, Out-of-home advertising, Radio, Music, Television advertising, TV Subscriptions and license fees, Video games.

Digital Spending

Digital spending consists of broadband and mobile Internet access; online and mobile Internet advertising; mobile TV subscriptions; digital music; electronic home video; online and wireless video games; digital consumer magazine circulation spending; digital newspaper circulation spending; digital trade magazine circulation spending; electronic consumer, educational, and professional books; and satellite radio subscriptions.

About PricewaterhouseCoopers

PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.

“PwC” is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor

can it control the exercise of their professional judgment or bind them in any way.

Telecom Lead India (June 12, 2012): Global IPTV subscriptions will increase by 70 percent from 2012 to 2017.

Asia Pacific will have 100 percent growth.

Asia-Pacific region will account for more than 60 percent of total net additions in 2012. The growth will depend mainly on China, India, and other countries with low pay-TV penetration such as Indonesia, Thailand, and Vietnam.

Currently, less than 15 percent of pay-TV subscribers in the region subscribe to high-definition (HD) services.

HD service adoption is highest in North America, followed by Western Europe and the Asia-Pacific.

Read the full story at http://telecomlead.com/inner-page-details.php?id=9669&block=News

Pay-TV operator TrueVisions and Euro 2012 broadcast rights holder GMM Grammy could face future licensing hurdles as a result of their dispute over televising the football tournament.

12/06/2012: The National Broadcasting and Telecommunications Commission (NBTC) says the spat _ which has resulted in viewers missing out on early Euro 2012 games as the True platform broadcasts have been blocked _ will be taken into account when the two companies seek to renew their licences.

The regulator is also fining TrueVisions 20,000 baht per day for its failure to broadcast the Euro 2012 matches to their subscribers as ordered.

The tournament started on June 8, and the final match will be on July 1. The fine will be imposed until TrueVisions restarts broadcasts of the matches, NBTC vice chairman Nathee Sukolrat said.

The games are shown on terrestrial channels 3, 5 and Modernine TV and have been viewable on televisions with aerials, but TrueVisions’ broadcasts of these stations via satellite or cable have been scrambled during the matches.

Read the full article at http://www.bangkokpost.com/lite/topstories/297620/nbtc-issues-tv-football-spat-threat

June 11, 2012 – The national broadcasting and telecom regulator has drawn up rules on the telecasting of copyrighted programmes on free TV channels to guarantee those viewing them – whether via a TV antenna, the pay-TV set-top boxes, or any other platforms – will have equal access to some of these copyrighted programmes.

The move is in response to requests to the watchdog by pay TV operators – as well as the holders of the broadcasting rights of highly popular programmes – to set clear rules regarding the broadcasting of copyrighted programmes on free TV channels.

Natee Sukonrat, broadcasting committee chairman of the National Broadcasting and Telecommunications Commission (NBTC), said the committee was drawing up the ‘must carry’ rules to oblige all cable TV, satellite dish TV, and pay TV operators, and the future terrestrial digital TV operators, to air all free TV channels.

Read the full article at http://www.nationmultimedia.com/business/Watchdog-drawing-up-list-of-programmes-that-can-be-30183891.html

NEW DELHI: Zee Group chairman Subhash Chandra has urged the Information & Broadcasting ministry to stick to the 30 June deadline for the switchover to digital addressable systems (DAS) in the four metros. The media baron feels that any postponement of digitisation would “send a wrong signal to the stakeholders as well as investors so far as the policy implementation is concerned”. Chandra, however, said that even if the government considers extending the date because of non-arrival of digital set top boxes, this should not be more than 60 days.

In the letter which was addressed to I&B minister Ambika Soni, a copy of which is with Indiantelevision.com, Chandra said digitisation should be completed by 30 June in areas which are presently under conditional access system – South Delhi, South Mumbai, South Kolkata and whole of Chennai – which will show the government’s intent in implementing its policy. Any extension, he said, should be announced only in the last week of June “after detailed deliberations with all the stakeholders so that pace of deployment of STBs is not affected because of any negative sentiments” arising out of any deferment. “While I appreciate the concerns regarding the availability of STBs, the blanket extension of 5-6 months would adversely affect the STBs off-take and would create a mis-impression in the minds of the stakeholders that Government is not serious in implementing the digitalisation initiative,” Chandra said in the letter.

http://www.indiantelevision.com/headlines/y2k12/june/jun71.php

If you were a journalist would you rather work for a media house owned by industrialist Mukesh Ambani or one owned by YSR Congress leader Jagan Mohan Reddy? Currently, that may seem like a no-brainer: a Congress government in Andhra Pradesh or anywhere else would show less alacrity in setting the Central Bureau of Investigation (CBI) upon the assets of a media company owned by an Ambani. You would be financially far more secure in the corporate arms of one than the other. But that is because the YSR Congress is not in power in Andhra Pradesh today. If it was it would be a different story. You only have to go back to 2008 when Y.S. Rajasekhara Reddy was alive, leader of the party that is now harassing his son Jagan. The latter was riding high, and able to launch an attractive 23-edition newspaper at one shot.

Two developments last month have revived the debate on trends in Indian media ownership. The Aditya Birla group announced that it had bought a 27.5% stake in Living Media India Ltd, which publishes India Today and owns TV Today Network Ltd. And across Andhra Pradesh, journalists were out in the streets in support of their colleagues at Sakshi, the newspaper owned by Jagan Reddy. Its bank accounts were frozen after the CBI homed in on Jagan Reddy in a disproportionate assets case. The high court quickly “unfroze” the accounts.

In a third development, the ministry of information and broadcasting wrote to a new chairman at the Telecom Regulatory Authority of India (Trai) asking it to look afresh at the issue of cross-media ownership. Trai has done so before and made recommendations to the ministry.

The two noticeable media acquisition trends in evidence are those by corporate and political entities. Historically, neither is a new trend—back in the 1950s and 1960s, the Tatas, Birlas and the Sahu Jain group owned The Statesman, Hindustan Times and The Times of India, respectively. Political parties in West Bengal and Kerala have long owned newspapers as have political families such as the Pawars and Dardas in Maharashtra.

But over time the big business ties loosened for various reasons; the Tatas got out of The Statesman, the Birlas split and are no longer a monolithic business house, and the Sahu Jain group lost their non-media businesses and became a de facto media house. Now that we are into a different season of need, the corporate acquisition of media is growing again. Media entities have multiplied but not diversified their financing model. Media houses that were successful earlier are making losses (eg. the Dainik Bhaskar group and Zee launched DNA in Mumbai with disastrous financial results), with everybody chasing the same advertising. So they are more open to investors than before.

Business, meanwhile, is ready to rediscover the charms of media ownership for more than one reason. It is a powerful, profile-conferring industry. And given an increasingly uncertain political and regulatory environment for business, the imagined clout of the media is a welcome factor.

You could argue that the relationship between a politically powerful media house such as Eenadu and a business conglomerate such as Reliance Industries Ltd (RIL) with its offshore investment in the state, has had its useful moments for both. Rajasekhara Reddy’s attack on Eenadu owner Ramoji Rao’s chit fund business and the central government’s denial of permission to the Blackstone Group Lp to invest in Eenadu and ETV, drove Rao to seek an investment from financier Nimesh Kampani, which was later revealed to be an investment by RIL.

The advent of satellite television, its accessibility and the exposure it gives has also led to a substantial increase in political media since the early 1990s—there are some 33-plus TV channels, newspapers or magazines with political connections.

If both trends are here to stay, what do they spell for media independence in terms of the journalism practised? A self-respecting media industry should be able to put necessary walls in place between business and editorial. But guess who has been steadily chipping at the wall? Not corporate-owned media but family-owned media with its documented penchant for paid news.

Effective media regulation has eluded us so far. Trai’s writ has been extended to media but its recommendations on media ownership and cross-media ownership remain unimplemented. It suggested merger and acquisitions guidelines for the sector. But if these were made, one is not aware that anything kicked in, in January this year, when RIL entered into its complex financial arrangement involving the Network18 and Eenadu groups.

Meanwhile, major challenges loom. How to keep television content and carriage ownership separate? Should telecom companies be allowed to invest in media? Should there be restrictions on political ownership of media? This last aspect is never touched upon by either Trai or the information and broadcasting ministry.

There is also insufficient regulatory recognition of media expanding into other sectors of the economy. Media houses that have acquired corporate scale now have business arms which are investing in power and construction. The Bhaskar (DB Corp. Ltd) and Zee (Essel) groups, to name two. As the trend grows, will the media influence give muscle to their corporate arms? And what sort of capitalism would you call that?

Sevanti Ninan is a media critic, author and editor of the media watch website thehoot.org. She examines the larger issues related to the media in a fortnightly column.

http://www.livemint.com/2012/06/06220324/Ownership-worries.html

June 7, 2012 – It is still uncertain whether subscribers of TrueVisions will have a chance to view the Euro 2012 soccer tournament on free-TV channels via their True set-top boxes, though the National Broadcasting and Telecommunications Commission will step in to look into the matter.

The NBTC will convene a meeting today with TrueVisions and free-TV operators – Channels 3, 5, and 9 – to seek ways to prevent problems for consumers.

This follows a complaint by TrueVisions to the watchdog on May 31 that its customers were confused and worried that they might not be able to watch the prestigious tournament – which will be aired from June 8 to July 2 – on Channels 3, 5, 9 via their set-top boxes.

The NBTC’s broadcasting committee chairman, Natee Sukonrat, said yesterday that according to the commission’s principles, free-TV operators had to treat pay-TV operators on a non-discriminatory basis.

http://www.nationmultimedia.com/business/NBTC-steps-into-Euro-2012-broadcast-dispute-30183665.html

June 4, 2012–At the 45th annual meeting of the Asian Development Bank’s Board of Governors in Manila last month, the mood of the 4,000 delegates from 48 Asian countries was upbeat, mixed with a sense of pride. Amid the recession in Europe and the tepid economic growth in North America was the revelation that the combined national wealth of India, China and the ten-member Association of Southeast Asian Nations (ASEAN) could exceed that of the U.S. and European countries put together in the next 18 years, according to an ADB study.

ADB President Haruhiko Kuroda predicted a healthy GDP of 6.9 percent for developing Asia and the Pacific this year, which is expected to climb to 7.3 per cent in 2013. “These three region and countries (India, China and ASEAN) are on a path to significantly improve the quality of life of their citizens–in aggregate approaching half of the world’s population by 2030,” he said.

For the satellite industry, the ADB disclosure only confirms a growth trend that had been going on in Asia for some time. It also assures the satellite industry of continued development to serve 4 billion people in 51 countries of Asia, 60 percent of the world’s population, and provide 30% of the earth’s landmass with services already enjoyed by the developed countries of the world.

Driven by the continued strong demand for satellite services in the Asia Pacific region, the industry’s most important drivers — high-definition TV conversion, DTH television and intercontinental video transmissions– remain in high growth mode. Multi-year contracts of satellite operators are enabling the industry to maintain a dependable revenue stream despite the turmoil in other parts of the world. Transponder fill rates have remained generally high with good revenues from transponder leasing and purchase of satellite equipment by Asian countries remain buoyant. Even more encouraging, as Asia’s economic growth increases, the market for satellite services keeps getting bigger.

http://www.satellitemarkets.com/news-analysis/strong-demand-driving-asia-pacific-satellite-market

News Corporation will fully own and operate ESS businesses in Asia after transaction closes

New York and Bristol, Conn, June 6, 2012 – News Corporation and ESPN announced today that they have entered into a definitive agreement under which a unit of News Corporation will buy ESPN’s 50 percent equity interest in ESPN STAR Sports (ESS). The transaction will allow News Corporation units to own and operate all of the ESS businesses while providing ESPN more independence and flexibility in future support of The Walt Disney Company’s overall efforts in Asia.

The transaction is subject to customary regulatory approvals and ESS will continue to be jointly managed by the two companies until the transaction closes.

“News Corporation’s acquisition of the interest of ESS that we did not already own continues the program of simplifying our operating model, consolidating our affiliate ownership structures, and furthers our commitment to delivering incredible sports programming to consumers across the globe, and particularly enhancing our position in sports programming in emerging markets,” said James Murdoch, Deputy Chief Operating Officer and Chairman & CEO International, News Corporation.

“After 16 years jointly managing ESS, we have decided to independently pursue future opportunities in Asia,” said John Skipper, President of ESPN and Co-Chairman, Disney Media Networks. “We are extremely proud of our role in building ESS into what it is today, and now with the growing digital landscape in Asia, we look forward to continuing to serve Asian sports fans through ESPN-branded digital businesses like ESPNCricinfo, the leading digital cricket brand in the world, ESPNFC and ESPN Mobile.”

News Corporation and ESPN also announced that Manu Sawhney, Managing Director of ESS, who has led ESS through significant growth over the last 16 years, will transition his role of Managing Director to Peter Hutton, currently SVP of Sports for FOX International Channels (FIC). Hutton will report to the ESS Board. Sawhney will be staying with the Company until August 31 to work with Hutton on a smooth transition.

Sawhney joined ESS’s marketing department in India in 1996 and went on to head its India business for four years, before shifting to Singapore as Head of Programming, Acquisition and Marketing. He was promoted to Managing Director in 2007. During his career at ESS, he has been responsible for various functions across the Company, including sales, distribution, programming, acquisition, marketing and network presentation.

“In his 16 years with the Company, Manu has been a key architect of ESS’s growth, and his contributions since its inception have helped ESS become a leading sports media Company in Asia, bringing world class events — from the ICC Cricket World Cup to the London 2012 Olympic Games — to fans across the region. He led ESS’s expansion to 24 countries across multiple platforms and networks, including launching STAR Cricket, ESPN HD, STAR Cricket HD, ESPNEWS and ESPN Player. We are very grateful to him for his significant contributions to the Company during his time in India and Singapore,” said Jan Koeppen, COO Europe and Asia, News Corporation and Russell Wolff, Executive Vice President and Managing Director, ESPN International.

They added, “Peter is a very talented sports media executive, and we believe his extensive experience in sports rights and production will serve ESS well as the business enters into a new phase of development.”

Sawhney said, “It has been a privilege to serve News Corporation and ESPN at ESS for 16 exciting years. I have had an opportunity to grow with the Company and work with an amazing group of people during my tenure, expanding our business to 28 networks across television, online, broadband and mobile. As the organization begins a new chapter under new ownership, I have decided to move on after the transition and I am looking forward to the next exciting phase of my career.”

“I am excited to take on this new role,” Hutton said. “I look forward to working with the ESS team to consolidate ESS’s leadership position in sports broadcasting in Asia, and to continue the Company’s record of broadcasting excellence in serving sports fans.”

Hutton joined FOX International Channels Sports in 2011 after 20 years in the international sports television business. He previously worked at Broad Reach Media, a media consultancy firm. Prior to that, Hutton was at Ten Sports in Dubai from 2002-2009, where he eventually served as Chief Operating Officer. From 1993-2002, he ran TWI, the television division of IMG, running their Indian business as well as television production for Asia. He was a radio and television journalist, commentator and presenter from 1982-1993. Hutton earned a Bachelor’s degree from the Cambridge University and will be relocating to Singapore with his family.

About News Corporation

News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) had total assets as of March 31, 2012 of approximately US$61 billion and total annual revenues of approximately US$34 billion. News Corporation is a diversified global media company with operations in six industry segments: cable network programming; filmed entertainment; television; direct broadcast satellite television; publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and Latin America.

For more information about News Corporation, please visit www.newscorp.com.

About FOX International Channels

FOX International Channels (FIC) is News Corporation¹s international multi-media business. We develop, produce and distribute 350+ wholly- and majority-owned entertainment, factual, sports and movie channels across Latin America, Europe, Asia and Africa, in 37 languages. These networks and their related mobile, non-linear and high-definition extensions, reach over 1.1 billion households worldwide. We also operate a global online advertising unit, .FOX (pronounced ³dot-fox²) specialized in online video and display, and four TV production houses. In operation since: August 14, 1993.

About ESPN Inc.

ESPN, Inc., is the world’s leading multinational, multimedia sports entertainment company featuring a portfolio of more than 50 multimedia sports assets. The company is comprised of eight 24-hour domestic television networks (ESPN, ESPN2, ESPNEWS, ESPNU, ESPN Classic, ESPN Deportes, ESPN 3D and the regionally focused Longhorn Network) and five HD simulcast services (ESPN, ESPN2, ESPNU, ESPNEWS and ESPN Deportes). Other businesses include ESPN Regional Television, ESPN International (48 networks, syndication, radio, websites, mobile, apps), ESPN Audio (broadcast, satellite, online and apps, a growing category led by ScoreCenter), ESPN.com (plus a variety of sport-, college-, and market-specific sites), ESPN The Magazine, ESPN Enterprises, ESPNHS and espnW. Multi-screen offerings include WatchESPN (access to several ESPN networks online and via an app) and ESPN3 (live multi-screen network available online, on the go and via Xbox LIVE). Based in Bristol, Conn., ESPN is 80 percent owned by ABC, Inc., which is an indirect subsidiary of The Walt Disney Company. The Hearst Corporation holds a 20 percent interest in ESPN.

About ESPN International

ESPN International is a division of ESPN, Inc., and operates robust multi-media businesses in Brazil; Spanish-speaking Latin America (spanning 18 countries and territories); the UK and Ireland; Europe, the Middle East and Africa (reaching more than 35 countries in the EMEA region); Canada; the Caribbean; Australia, New Zealand and the Pacific Islands and more.

About ESPN in Asia Pacific

ESPN currently owns a variety of businesses in Asia and the Pacific Rim including the leading cricket website in the world, ESPNCricinfo.com, ESPNFC, ESPNScrum.com, ESPNfootytips.com, multiple ESPN Mobile businesses and holds an interest in JSB ESPN in Japan. ESPN is also an investor in NBA China. ESPN also continues to operate its wholly-owned multi-platform media business in Australia, New Zealand and the Pacific Islands. The Walt Disney Company owns and operates the Disney Channel in 20 countries, in addition to Disney Junior and Disney XD across the region. Additionally, Disney recently announced the acquisition of a controlling interest in UTV, one of India’s premier media and entertainment companies.

About ESPN STAR Sports

ESPN STAR Sports is a 50:50 joint venture between The Walt Disney Company (NYSE: DIS) and News Corporation Limited ((NASDAQ: NWS, NWSA; ASX: NWS, NWSLV), delivering a diverse array of international and regional sports to viewers.

ESPN STAR Sports features a comprehensive portfolio of multimedia assets including its television networks (ESPN, STAR Sports, STAR Cricket, ESPNEWS, ESPN HD, STAR Cricket HD), broadband network (ESPN Player), digital content services (espnstar.com, mobileESPN), and its on-ground Event Management Group with the aim to engage and entertain sports fans anytime, anyplace.

ESPN STAR Sports showcases an unparalleled variety of premier sports from around the globe featuring some of the most iconic sports events to viewers across 24 countries in Asia through its 28 networks, each localized to deliver differentiated programming to meet diverse needs of Asian sports fans.

Contact:

News Corporation
Jannie Poon: +852 2621 8619 / jpoon@newscorp.com
Dan Berger: +1 310 369 1274 / dberger@newscorp.com

ESPN
Katina Arnold: +1 860 839 1764 / Katina.arnold@espn.com
Chris LaPlaca: +1 860 766 2239 / Chris.laplaca@espn.com

Manila, June 4, 2012–At the 45th annual meeting of the Asian Development Bank’s Board of Governors in Manila last month, the mood of the 4,000 delegates from 48 Asian countries was upbeat, mixed with a sense of pride. Amid the recession in Europe and the tepid economic growth in North America was the revelation that the combined national wealth of India, China and the ten-member Association of Southeast Asian Nations (ASEAN) could exceed that of the U.S. and European countries put together in the next 18 years, according to an ADB study.

ADB President Haruhiko Kuroda predicted a healthy GDP of 6.9 percent for developing Asia and the Pacific this year, which is expected to climb to 7.3 per cent in 2013. “These three region and countries (India, China and ASEAN) are on a path to significantly improve the quality of life of their citizens–in aggregate approaching half of the world’s population by 2030,” he said.

For the satellite industry, the ADB disclosure only confirms a growth trend that had been going on in Asia for some time. It also assures the satellite industry of continued development to serve 4 billion people in 51 countries of Asia, 60 percent of the world’s population, and provide 30% of the earth’s landmass with services already enjoyed by the developed countries of the world.

Read the full article at http://www.satellitemarkets.com/news-analysis/strong-demand-driving-asia-pacific-satellite-market