ABN confident of success | South China Morning Post

''TCI is big, but we don't just do huge deals,'' said Mr Singer. ''Our channels [such as the Discovery documentary channel in the US] have seen significant asset appreciation. That's why we see a good future for ABN.'' Mr Singer added that the Discovery channel should be available in Asia before the end of the year.

But, according to Paul France, general manager of ABN, returns will take time on the project, which has cost US$20 million to date.

''We don't have the expectation that this will have paid for itself six months down the line,'' said Mr France. ''Indeed, we don't know exactly what we will be earning yet. We just know it will be significant over time.'' ABN is owned 29.5 per cent each by Telecommunications Inc, Television New Zealand, Dow Jones, while SIM Ventures of Singapore holds a 10 per cent stake and Hong Kong's BNN, the originator of the project, 1.5 per cent.

ABN said advertising would be the main revenue earner. Subscription revenues would come at a later date.

''As a start-up, the price at which we are hitting the advertising market is very reasonable,'' said Mr France. ''We are not just selling advertising spots as a traditional service would; we are selling profile and product identity.'' As part of a two-month ''foundation'', advertisers in Hong Kong, Singapore, Malaysia, Taiwan and Thailand will not have to pay for coverage in the regional market.

Given an anticipated ''dip-in'' viewing pattern for ABN, 22 spots per week are considered the minimum for advertising campaigns to achieve an effective weekly reach, according to the station.

A 22-spot ABN advertising package is being sold for US$5,000, similar in price to Hong Kong's ATV, which offers packages at $38,888. These rates are considered inexpensive and a good buy.

''Even if they only have 20 television sets turned on [to ABN] we are willing to take time from them at that price,'' said one enthusiastic Hong Kong advertising executive.

ABN will distribute its service through terrestrial broadcasters such as TVB in Hong Kong, cable television, and via its satellite footprint on the Palapa B2P satellite.

ABN is also looking to fill the current non-broadcasting hours of several terrestrial broadcasters, including Singapore's SBC Channel 12, early next year, and on the newly announced TV4 commercial network in Malaysia, which will launch with limited hours in the middle of next year.

''There will also be two new terrestrial licences issued in Thailand and we would like to fill some hours for them,'' said Mr France.

He added that the Indonesian commercial station RCTI was also a possibility.

In Hong Kong, it will be TVB that carries the ABN signal for at least two years after mid-December; not what seems to be the logical carrier, Wharf Cable.

STAR TV is acting as the gatekeeper for Wharf Cable's non-Chinese programming, and ABN and STAR TV are not on the best of terms, after negotiations over whether STAR TV would carry the ABN service broke down.

Other possibilities include IBC cable network in Thailand, the ERA cable network in Taiwan, and the ABS-CBN subscription network in the Philippines.

In the future, ABN could well join the ''Gang of Five'' non-STAR TV programming alliance that includes TVB International. ABN also has a reservation on the Apstar2 satellite, and is holding talks with the PanAmSat group.

''But don't get too hung up on satellites,'' said Mr France. ''People watch programmes, not satellites.'' An entirely separate service in Mandarin could be a later step, while there are already plans for subtitling in a number of languages.

But the real question is who will watch such a service as ABN? Perhaps, the real test for the ABN service and its relevance will be in times of political or business crisis.

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