As Murdoch Moves In, Concern Over Values and Revenues : Asians Resist a Western Media Invasion
International Herald Tribune
August 12, 1993
Kevin Murphy 

As large Western media groups push for access to Asia's potentially vast markets, calls are being heard throughout the region for the protection of native customs and values.

Mixed in, however, is a strong interest in safeguarding established political privilege and local advertising revenues.

"Suddenly governments are realizing they are not in control any more," said Mark Ingall of Bozell Ltd., a Hong Kong advertising agency, speaking of local media's gradual loss of domestic influence and advertising power to outsiders.

"If they had liberalized over time, they wouldn't be in this situation," he said. "But now many Asian countries have to face making their own national media more competitive."

Sharp comments last week by Malaysia's prime minister, Mahathir bin Mohamad, about ownership changes at STAR-TV, the region's dominant satellite broadcaster, have helped rekindle issues of Asian media tolerance and ownership.

Mr. Mahathir lamented that control of STAR-TV was passing from a Hong Kong mogul, Li Ka-shing, and his Hutchison Whampoa Group to that of Rupert Murdoch and his News Corp. Mr. Murdoch, who was born in Australia and is a naturalized American, controls a vast publication, broadcasting and entertainment empire.

The Malaysian leader asserted that News Corp. had paid a premium for the STAR-TV network because it was seeking to control the news that Asians receive.

But the deal has also become a flashpoint for Asian protectiveness toward its own culture and toward commercial competition in a market that has two-thirds of the world's potential television viewers.

"If someone was to buy The New York Times and his name was Li Ka-shing, how do you think the Americans would react?" asked Sondhi Limthongkul, president of Thailand's Manager Publishing Group.

"Each nationality in Asia feels different," said Mr. Sondhi, who began his career as journalist and now heads an ambitious regional media group. "They don't belong to the West or to anyone else."

With an explosion in demand for programming under way in Asia, and with local sources unable to meet the needs of hundreds of new channels, cultural sensitivity cannot be guaranteed. Given a choice between a live Koran reading competition and a Madonna rock concert, many would chose pop culture.

The Australian Broadcasting Corp. has been criticized by Malaysia in the past for running a drama series set in a fictitious Muslim Southeast Asian nation that Malaysia complained resembled it too closely.

But economic issues are also important. "Forget culture, it's coming down to dollars and cents," said Ray Wong, principal lecturer in journalism at Hong Kong's Baptist College. "They have a lot of space to fill, and it's cheaper to buy it from the West than produce it at home."

"Look around the region," he added. "Most of the indigenous programming is terrible. In many places they cannot compete with the West."

However, most observers believe that programming competition will eventually arise. They point to the impact of regional broadcasters on the growth of local television groups in Europe.

Advertising revenues have also become a touchy issue.

"In India, a lot of advertising agencies are saying STAR-TV has taken capital out of the Indian marketplace," said Mr. Ingall of Bozell Ltd. "They're putting pressure on the government to protect their revenue."

While India's government has recently moved to restrict cable television operators, many of whom carry STAR-TV programs, from showing Western films and advertisements believed to be indecent, its own state-owned television network, Doordarshan, recently began showing racy American serial dramas like "Dynasty" and "Dallas."

The STAR-TV deal is worth $525 million for a 63.6 percent stake of a five-channel network watched in 38 countries for 24 hours a day. It was struck after a complex series of negotiations that included many of the world's largest news and entertainment groups, confirming the tremendous commercial interest in Asia.

News Corp., which controls newspapers in Hong Kong and Bangkok and is looking at publishing in China and Vietnam, responded within a day to Mr. Mahathir's complaint, although STAR-TV is not broadcast in Malaysia because of the government restricts satellite receiver ownership.

The Sydney-based group, which displeased China with an abortive plan to buy into one of Hong Kong's two domestic networks, Television Broadcasts Ltd., said it planned to make STAR-TV a service that "Asian families can enjoy in their homes and a service which governments in the region will find both friendly and useful."

The News Corp. statement is seen by most analysts as a signal that Western media will make operating adjustments as revenues in Asia make up larger portions of global group revenues.

By editing profanity and Australian vernacular out of a recent police miniseries, "Phoenix," which was rebroadcast in Asia, the Australian company was going along with a Western media trend that takes into account local customs and tastes.

Copyright © 2006 The International Herald Tribune