MTV Networks Terminates Asian Transmission Agreement with Star TV

Strategic Insights -

Viacom Inc.'s MTV Networks unit announced yesterday the termination of its Asian transmission agreement with Star TV, effective immediately. The decision marks a significant shift in strategy, as MTV plans to launch two wholly owned channels in Asia later this year. The new channels, targeted at young people in South Asia and audiences in Taiwan, Singapore, and China, will replace the English-language programming previously provided through Star TV. This development highlights a changing landscape in the Asian media market, with global entertainment companies like Viacom seeking to establish a direct presence.

Key Takeaways:

  • MTV Networks will terminate its Asian transmission agreement with Star TV, a Hong Kong-based company owned by the News Corporation.
  • The two new MTV channels, scheduled to launch later this year, will cater to young people in South Asia and audiences in Taiwan, Singapore, and China.
  • One channel will be in English, while the other will be in Mandarin Chinese.
  • MTV Asia will initially be available in 18 Asian countries by satellite, with plans to expand to 30 countries after a second satellite is launched in 1995.
  • The new channels will directly compete with Star TV, which reaches approximately 42 million homes in 52 Asian countries.
  • Paul Kontoleon, a vice president at MTV, stated that the move is an effort to "localize" MTV's content for the Asian market.

Statistics:

  • 42 million: Number of homes that Star TV reaches in 52 Asian countries.
  • 18: Number of Asian countries where MTV Asia will be available by satellite in the fourth quarter.
  • 30: Number of countries where MTV Asia will be available after a second satellite is launched in 1995.
  • 1995: Year when a second satellite will be launched to expand MTV Asia's distribution.
  • 2: Number of new MTV channels launching later this year.
  • Rey Gutierrez, an industry analyst, noted that Viacom's decision signals a "major shift" in the Asian media market.

Sources:

  • "Viacom Inc. and Star TV Announce New Agreement for MTV Networks in Asia"
  • Statement by Gary Davey, chief executive of Star TV
  • Hong Kong-based South China Morning Post article on MTV's plans in Asia