8
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what’sgoingonin...
NTENT ASIA
mongolia
Mongolia’s broadcasters & platforms may be battling. But their commitment to upping their game runs strong
On 1 January this year, Mongolian DTH plat-
charge US$3+. The
“Piracy is rampant... We
average is US$1/second.
form DDish TV added 30 new channels to its
have a lot more work to
platform, including RTL CBS Entertainment and
do,” says AmCham Mon-
National Geographic. Then the platform’s pro-
golia’s Jackson Cox,
grammers went on the hunt for a good movie
pointing out that the
channel. Their caution over how much is sensi-
pirated products in Mongolia are American.
The big five most-watched channels spend the most on content and production. The vast majority of
second tier spend effectively on taped content. Local research company Maxima Media
ble to spend on a premium movie line-up high-
A stronger legal framework is on regulators’
shows that 40% of audiences watch the top
lights one of Mongolia’s biggest pay-TV issues:
radar. Balgansuren B, the director of Mongo-
five channels, 20% watch the top 10 and 40%
the high costs of programming versus some of
lia’s Communications Regulatory Commission
watch the others.
the region’s lowest subscription revenues.
(CRC), talks about reducing players and cre-
Insiders say a lot more needs to happen to
One of the country’s major national platforms,
ating a “competitive sustainable environment
improve production standards and quality if
DDish offers 60 basic channels for US$35 a year
with a proper legal framework”. His comments
the balance is to shift. “Viewers are becom-
– US$2.92 a month. The premium subscription
were part of the translated presentations made
ing more sophisticated,” Maxima Media chief
tier added this year coincided with the mining/
during the second annual Mongolian TV Forum
executive, Gombojav O, says.
economic crisis insiders expect will take two
in Ulaanbaatar in February this year.
Like the rest of the world, Mongolian plat-
years to resolve. Even so, DDish remains com-
Mongolia has more than 100 TV channels, in-
forms and programmers are grappling with
mitted. Company execs say the platform has
cluding 56 local channels delivered via satel-
audience migration to device-based view-
to up its game, regardless.
lite, cable and IPTV. International brands in the
ing. “A new era of content has begun,” Unitel
Another major pay-TV player, Unitel/Univision,
market include HBO, Outdoor Channel, History,
Group vice president, Bold G, says.
has significant on-demand ambitions, point-
Deutsche Welle, Universal and Food Network,
The country has 2.6 million mobile phone us-
ing out, among other things, that VOD opens
plus a local version of Bloomberg TV Mongolia.
ers; 50% are on smartphones. Most TV viewing
up the opportunity for Mongolian production
Along with a mixed local/international news
still takes place on traditional TV sets within the
companies to access additional revenue. Uni-
and business slate, Bloomberg Mongolia licens-
home. Mobile device-based viewing was the
tel’s base is primarily urban.
es factual titles such as A+E Networks’ Mankind
lowest segment last year but the fastest grow-
Decoded, The Men Who Built America and
ing over the past two years, Unitel says. “Con-
Modern Marvels.
tent viewing on mobile devices increased by
Privately owned free-TV broadcaster Mongol TV, too, remains committed to a path set before
25% in 2014 compared to 2012,” says Bars G,
the crisis, adding, for instance, local versions of
Other international distributors active in the
FremantleMedia’s Got Talent and all3media’s
market are ITV Studios Global Entertainment,
Gogglebox to its schedule and continuing to
which sold about 150 hours into Mongolia last
Maxima Media lists three things that need
fly the flag for legal content.
year, including Mr Selfridge; CBS Studios Inter-
to happen to move the market in a positive
national; Deutsche Welle; and HBO.
direction: international standards, advertising
Across the industry though, the economic sit-
Unitel’s head of content and development.
uation has slashed expectations for advertising
Licensing fees can be as low as a few hundred
rate increases, and clarifying the relationship
growth, and expansion plans in many quarters
dollars an hour. At the high end, drama goes for
between TV stations and platforms. His last
have been put on hold.
US$5,000 an hour. And even then, there’s a call
point is a sore one for local advertising-sup-
From the inside, Mongolian regulators and op-
from some local players for local buyers to work
ported channels, which currently receive no
erators say the industry’s biggest challenge is the
together to “suppress” the cost of foreign con-
subscription fees from platforms.
sheer number of channels available in a mar-
tent and spend instead on local programming.
He has lots of support. “This market is distort-
ket of less than three million people and about
Advertising on the top five most-watched
ed,” says Mongol TV head Nomin Chinbat, add-
640,000 households. For outsiders looking in, the
channels can cost US$5 a second; channels
ing: “If we don’t eliminate the distortion, we will
issues are simple – low pricing and high piracy.
are trying to push this to US$10+. The next five
be in the same position five years from now”.
issue one, april 2015
