5 July 2007

Arch-rivals squaring up for head-on challenge
Media
(c) 2007 Haymarket Media Limited.

The original 'reality TV' networks, Discovery and National Geographic, are battling tooth and claw for share. By Sara Yin

Here's a little anecdote to illustrate what the rivalry between Discovery Channel and National Geographic Channel (NGC) has boiled down to. Last year, Discovery sent out invitations to its annual media bash several weeks in advance. But days before the soiree, the same set of invitees received another invitation for the same night: to NGC's own annual media party.

Sneaky? Underhand? A deliberate ploy to steal a rival's thunder? NGC Asia marketing director Basil Chua airily dismisses the notions. "We're both on the same cable tier. From a consumer's point of view, we should not really be competing, we should be cooperating in our marketing."

Whichever way, NGC's reputed 'me too' approach has begun to chip away at its arch-rival. "Ratings-wise, they are not far behind," says Jessica Treherne, regional account director, Carat. Although Discovery still outperforms NGC in terms of revenue, audience share and distribution, according to the latest PAX figures the gap has narrowed in recent years.

Furthermore, global unheavals have muted Discovery's roar. In January, NBC Universal president David Zaslav came on board as Discovery's new global CEO. Tom Keaveney, executive VP and MD of Discovery Networks Asia, told Media that there has been "a renewed focus on global collaboration across many aspects of the business, from programming to marketing".

To wit: the new CEO recently told the Wall Street Journal that he was planning to merge Discovery's US factory with its international business factory, where content is managed. Zaslav says that this will unlock a lot of margin opportunity: "It's also a model where we can pick up one set of programmes that will travel around the world."

But one advertiser in Asia, who wished to remain anonymous, thinks this is the wrong approach. "It has to localise more content and be more pragmatic because its gone to middle-ground - and consumers see no discernible difference to the competitors."

Regionally, the network hasn't been as active as usual, according to Treherne. "There weren't really any new channels for Discovery this year," says Treherne. "Just the launch of its high-def subscription and some new programmes."

Meanwhile, a Discovery spokes-person defended the channel's 2007 activities, which include the introduction of food/travel show host Bobby Chin, awards nights and celebrity-studded events to promote new programmes.

To all outward appearances, NGC has been busier. Vivek Couto, executive director of Media Partners Asia, says NGC's joint-venture with Fox International last year and rollout of channels such as Fox Crime and FX Asia, has done well across the region. NGC also launched video-on-demand and high definition broadcasts around Asia - albeit on the heels of Discovery - and relaunched channels such as A1 and Wild to include the National Geographic prefix. "Discovery has been turning a profit since 2002, but NGC has been successful at localising and managing its ancillary brands," says Couto.

Such advertising flexibility also puts NGC in favour with media agencies. One media executive said NGC is "much friendlier and more flexible with what its advertisers can and cannot do. Discovery had its hey-day about four to five years ago, but it has developed a degree of arrogance recently."

Tess Caven, marketing director of MEC Asia-Pacific, believes both channels could improve their digital offerings, but that NGC has taken the lead on offering integrated solutions. "NatGeo has also been leveraging the National Geographic Society more," Caven says. For example, prizes and giveaways for NGC-sponsored competition now run the gamut of rustic travel packages or fancy cameras.

Rubin Suardi, a manager at MindShare Indonesia, agrees. "NGC has been more aggressive with advertising its own programmes this year, and with using the National Geographic magazine and society for integrated campaigns. With the magazine's adsales considered, NGC has greater ad share than Discovery."

Furthermore, NGC's edge on the integration front is a result of how the company is run. "Ward Platt basically runs NGC in Asia and can function on his own. NGC lets local players decide content and advertisers. This has worked especially well in Korea, a very insular market," said an analyst. According to Chua, the channel really just serves as a revenue stream for the National Geographic Society. This is different from the Discovery Channel, which has always been a traditional broadcaster.

But if you ask Discovery, its reputed inflexibility is a result of editorial integrity. "We know, from many years of research, that the Discovery Channel viewer returns time and again because they (seek) the best in documentary film-making with the best entertainment techniques," says Keaveny.