TIFFCOM welcomes to Film and TV people
Japanese Broadcasting Companies Take Advantage of Their Asset
It is in the late October. Mt.Fuji stands with a clear shape over the rainbow bridge that connects the old Tokyo town and the neo sea-front area. The five star resort hotel, Le Daiba is crowded with TV people from all around world. TIFFCOM, a content marketplace at Tokyo International Film Festival opens its three days of convention.
At TIFFCOM, there is a session called "At the Forefront of TV Format Sales -TREASURE BOX JAPAN-". This is the government support move that Japanese major TV networks together start to megaphone their TV format to the global.
TV format is an idea and concept of the TV show. In TV broadcasting industry, a concept is the intellectual product you can sell and buy. TV format sometimes included the theme music, logo and title sequence so that a broadcasting companies who buy TV format can easily localize the popular contents.
With highly competitive market, Japanese broadcasting companies have created popular format such as SASUKE from TBS, which is “Ninja Warriors” in the US, No-Kabe from Fuji TV, “Hole in the Wall”.
Japanese one-hour TV shows have two or three segments in average. Producers make one-hour TV show with scrap and build process of segments. They re-create and renew meticulously the segments along with the viewing rate result. So, only high quality segments can survive these competitions. If you watch the Japanese variety show, you can find the seeds of TV format cramming in. That is huge advantage of Japanese broadcasting industry.
The TV format made in Japan has not achieved a global fame in spite of this high quality as much as the car or home electronics brands have.
They need the global marketing strategy to gear them up.
Global TV Format Market, Tough Competition
At TIFFCOM, lots of sessions are going on simultaneously
In the global TV format market, the value of which is exceeded to 8 billion US dollars, the UK and the US are top two players.
The TV Format business heavily relies on the human relationship. Because of the regulated industry, the number of players is limited. There are 27,554 broadcast stations in the world.
The two giants in this market, FremantleMedia in the UK and Endemol from the Holland are dominant role in terms of distributing TV format all over the world. Some of the Japanese TV format has been sold with the help of the top two giants.
It could be essential for Japanese broadcasting industry to build their own global channel to the sustainable growth.
Business Opportunity of TV Format
We have lost 100 million households who watch the terrestrial broadcasting globally since 2001. Now the number of the terrestrial TV subscribers counts 600 million households.
There are 1.8 billion TV sets in the world. The number of connected devices sold so far is 1.5 billions. Smartphone will be sold 4 billions set and TV will be 2.6 billions. We will have connected device screens more than TV screens and we watch video on these small screens.
The question is “who can meet this huge demand of video viewing?”. Who can deliver the content they want.
TV industry should get the incremental revenue along with the increase of screens. The problem is, however, that they no longer watch a big screen sitting in the couch. They bite the snack size of video or watching the short form video during the lunchtime, during commuting, in the train, in the car even in the bedroom.
So, again, who could meet this “huge but decentralized demand” for video with the snack size bite of watching manner?
TV format is an idea of TV format. It could turn out to be anything from the five minutes length video to one-hour show. You can deliver these contents to all screens. So, the format is the big solution for broadcasting company to take incremental revenue in this multi screen era.
Contents is King in the Vertical Separation Market
The digital TV transition was just the way of the change of contents delivery. Some TV people might say that we have invested lots of money on digital infrastructures. But nothing has changed the viewers’ experience.
If you have a bird view and look at the whole world, the digital has changed our lives.
Smartphones and tablets deliver the video on demand service. 4G LTE mobile broadband enables to extend the viewing experience.
We live in the digital transition era. The TV industry is no exception.
The innovation of distribution layer has already brought in the market: “TV Everywhere” initiated by Time Warner, Contents on the Go such as “HBO GO”, Over the Top, “hulu” and “Netflix”.
TV format could be another industry innovation. We have varied way of contents delivery thanks to mobile broadband and Internet expansion. The technology forces the broadcasting industry to focus their resource on the production of contents. TV format will be the next solution. The industry should leverage their asset, which are contents.