Value-added: KCM features factual entertainment programming like Taylor Swift: Dare to Dream. – Photo: KC Global Media
PETALING JAYA: Free ad-supported streaming TV (Fast) channels are growing in popularity today due to the increasing availability of high-speed Internet as well as the growth of connected TV devices.
However its growth is also stimulated by the rise of cord-cutting as a trend among consumers who are looking for more affordable and flexible alternatives to traditional pay-TV services.
No doubt since the advent of the television, home entertainment has come a long way for consumers and it’s something that hasn’t escaped the attention of George Chien.
As the co-founder, CEO and president of KC Global Media, Chien is at the forefront of bringing the worlds of traditional and digital media together to captivate and entertain audiences worldwide.
Part of that focus has resulted in the birth of KCM, KC Global Media’s first Fast channel in Malaysia. Launched through a strategic partnership with Sooka, Malaysia’s premier streaming content provider, KCM is set to deliver a diverse array of premium content, including engaging drama series, blockbuster films, and acclaimed documentaries.
“If you take a step back and see the evolution of the industry it’s been terrestrial or free TV and then pay-TV where everything was linear and then came YouTubes of the world and that paved the way forward for streamers.
And we now have all this content out there that’s just waiting to be consumed,” he explains.
Despite of the glut of content available on the Internet and on our phones, Chien opines that launching a Fast channel is the next logical step in the realm of home entertainment.
George Chien, Co-founder, CEO and President of KC Global Media. – Photo: KC Global Media
Growing popularity
Chien’s assessment is sound. Free ad-supported streaming TV channels are growing popular amongst consumers for their affordability, convenience as well as genre variety.
According to a study by Horowitz Research, 73% of Fast users agree that TV is more enjoyable now that they can turn on these free services.
Ultimately, Chien says, it is about understanding the market and identifying the segment of consumers in the entertainment space.
“The market now is spoilt for choice; there are cinemas, cable, and satellite TV as well as streaming and shortform platforms. It is also getting pretty expensive because subscriptions, Internet fees and so forth that you need to access these channels and services will start to add up,” he explains.
“Due to this rationalisation effect, a Fast channel fits in perfectly for a market that doesn’t necessarily want to pay for content.”
In the United States itself, 66% of TV content viewers use Fast platforms in a month. As adverts run on these platforms these channels have also proven to be a viable advertising space for brands and companies.
According to statistics by Omdia, global Fast revenue is expected to triple from 2022 to 2027, reaching US$12bil.
Revenue from Fast platforms has also grown almost 20-fold from 2019 to 2022 to more than US$4bil. This is no doubt a lucrative space that both KCM and Sooka aim to capitalise on.
“The revenue model for Fast channels is ad supported but in the case of KCM it differs from every market that we are in,” reveals Chien. “I’ll put it in layman’s terms – if there is food to be served, we all get to eat. How much we get to eat is dependent on how much is put on the table,” he says with a laugh.
Complementing an ecosystem
Launched in October, KCM represents KC Global Media’s commitment to expanding accessible, diverse content for today’s connected viewers.
But Chien stresses that the launch of the channel is in no way shape or form is designed to compete with what’s available on Astro
but rather complement the service itself.
Chien opines that there is often a misconception when launching a Fast channel and that it risks cannibalising the pay-TV platform. He stresses though that it is hardly the case because it’s a different offering, proposition and caters to a different audience.
“I believe Astro saw the opportunity and they created Sooka to cater to this specific segment that wasn’t subscribing to cable, satellite or some of these streaming services,” adds Chien.
“We recognise there is a community here and we looked and them and tried to understand their viewing habits and what they are consuming and how we can provide content that is complimentary to this market.”
“We have been around for two decades and had notable successes with channels like AXN, Animax, ONE and now KCM. Each of our brands has a specific identity that caters to a distinct audience,” he stresses. “What we’re doing is not brain surgery – we just want to entertain people.”
As far as marketing appeal goes, Chien opines that as long as KCM continues to offer the proper content and the right experience and environment like Sooka, the advertisers will see the advantage and proposition a Fast channel like KCM can offer.
