| Interview with Sandy Brown - president
and CEO, CNBC Asia Pacific |
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| "We
see a lot of opportunities in the weekend" |
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| Posted
on 5 February 2003 |
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No
frills. All business. That's Alexander "Sandy" Brown for you. In
and out of meetings at his headquarters in Singapore's International
Plaza, head down to the job at hand - which is to steer CNBC's operations
in the Asia Pacific after what has been a choppy 2002. The worst
seems to be over though and Brown, who took over at the helm last
May, says revenues are 200 per cent higher this quarter than during
the corresponding one last year.
If business continues to ramp upwards for the rest of the year,
Brown should be home dry. He, however, remains cautious and says
it's too early to make any assessments.
He hasn't been quite so cautious as far as his career moves
over the past nine years or so are concerned though, having tried
his hand at quite an eclectic mix of job profiles. From sports to
business - with a stopover in between as president and COO of New
York-based 3D animation technology firm Virtual Spectator Inc -
Brown has certainly added variety to his portfolio.
For Brown, Singapore is a happy hunting ground, having spent
nine years here from 1992 to 2001, first as MD of ESPN and later
as MD of ESPN Star Sports when the erstwhile rival channels joined
hands.
Brown managed to fit in "exactly half an hour" for a matter-of-fact
tete-a-tete with indiantelevision.com's managing editor Thomas
Abraham at his office in Singapore recently. Excerpts from
the interview:
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Out of the seven channels that you run in Asia, what is the
pecking order in revenue terms?
The mother ship is obviously CNBC Asia. How the others stack
up is difficult to say. I will say this though about our India operations.
India is a very important market for us. We are extremely satisfied
with TV18 and I wish our other franchises could be as well run.
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Keeping to the revenue front, how is it split between distribution
and marketing in the different markets?
The bigger share is provided by advertising. I can't give percentages.
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I assume you're in a January to December fiscal. How was 2002
for CNBC Asia?
It was a tough year no doubt, but we made it through in the
end. October was a difficult month as we laid off some people (CNBC
cut 40 jobs while restructuring its Asia-Pacific operations).
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| "I
don't have to buy cricket to drive ratings like I had to when I was
with ESPN" |
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What about 2003? What are your targets
and expectations?
Our revenues are 200 per cent higher this quarter than they were during
the corresponding one last year. If we can use the first quarter as
a proxy for the rest of the year we should be pretty sound but it's
too early to say. |
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Any major programming initiatives that you're planning in 2003?
Or is the present programming template working well enough so's
not to require any change?
We have a few things that we're looking at. One of the challenges
is dealing with the weekends really. The goal is to create a lot
more lifestyle programming for the weekends. We're also looking
at business programming that's a lot more controversial, in the
talk show format. We see a lot of opportunities in the weekend.
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Raghav Bahl manages CNBC India with
only the CNBC World feed coming in at set times. What are the inputs
from your end? How does the arrangement work?
Editorially, we really leave them to their own devices. TV18 has
done well in managing the business there. It's a good situation that
we haven't had to get involved. The ratings bear that out. And it's
all driven by the quality of programming that we generate. I don't
have to buy cricket to drive ratings like I had to when I was with
ESPN. |
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| "Looking
ahead we would certainly like to do more shows like 'The Big Heist'.
However, such programmes are very expensive to put together" |
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2002 was a bad year for the corporate world, with scandals one
after another. How does CNBC handle these issues in the light of
all that's happened? What are the important checks and balances
that have been instituted?
To go back a bit. The last two years have been tough for our
network. There's been a lot of bad news. We've seen an enormous
erosion of wealth all round. And in such times, marketing budgets
are what go for a toss first. Then there were rationalisations of
businesses all round last year.
Having said that, being associated with Dow Jones (CNBC is a joint
venture between Dow Jones and NBC) carries a quality tag that cannot
be compromised. So you do the best job you can, strained circumstances
notwithstanding.
Looking ahead, we would certainly like to do more shows like The
Big Heist (an investigative report into the AOL Time Warner
merger and it's aftermath). However, such programmes are very expensive
to put together.
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| "As
far as ad spend is concerned, even special interest channels like
Discovery are our competitors, not just news channels or Bloomberg.
It is for a piece of the same ad pie that we are all fighting"
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When we are talking Asia, who's your biggest competitor? Is
it Bloomberg or are all news channels as far as the fight for ad
dollars is concerned?
As far as ad spend is concerned, even special interest channels
like Discovery are our competitors, not just news channels or Bloomberg.
It is for a piece of the same ad pie that we are all fighting.
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Your most recent initiative has been the full encryption of
all CNBC channels across the region. Which were the feeds that were
encrypted in the recent past?
India as you know has always been an encrypted feed. The other six
(Asia, Australia, Nikkei - Japan, MBN - South Korea, Singapore and
Hong Kong), which were digital non-encrypted feeds have now become
encrypted.
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In India, one of the key issues now
is conditional access systems and its rollout. What is the distribution
environment like in the rest of Asia? I know Singapore is fully CAS
driven and addressable and I would expect Japan to be the same, but
what about the others?
Not too different from India really. We are grappling with similar
problems of underdeclaration that we see in India in places like Taiwan
and Korea as well. |
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| "I
will say this though about our India operations. India is a very important
market for us. We are extremely satisfied with TV18 and I wish our
other franchises could be as well run" |
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Last June, CNBC and TV Tokyo did a stake swap wherein CNBC
picked up a three per cent stake in TV Tokyo for $ 25 million while
TV Tokyo took a 14 per cent stake in Nikkei-CNBC. Have any similar
stake swaps happened in the recent past?
Our taking a stake in TV Tokyo was as a long-term prospect.
We hope to extract advantages out of this if and when the IPO comes.
Regarding shareholding patterns other than India, where we have
an equity relationship with TV 18 (51:49), in South Korea our presence
is through a licencing deal. The other four are wholly owned subsidiaries.
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You've made some major switches in the course of your career
and none seem to have any clear connects. There was ESPN Star Sports,
then you moved to animation company Virtual Spectator, and now you're
with CNBC. So what next for Sandy Brown?
The television business is what I've been involved with my entire
career. We've enjoyed great success with ESPN Star Sports. Right
now I have to put my head down, tail up and work. I'm not looking
beyond that at the moment.
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