LEONARD ASPER HAS ABSOLUTELY no concerns about the explosion of technology that many broadcasters perceive as a possible “death star.”
In fact, he embraces it and sees it as the provider of great opportunities as he works to expand his broadcasting company. So, Asper isn't one of the big players who are losing sleep over online piracy, cord-cutting and regulatory hurdles. He used to be, as CEO of Canwest Global, but that was then.
This is now.
Today, Asper is president of the niche combat sports channel Fight Network and has plans to add a second sports outlet in the next year in the fantasy sports genre. With all the technological opportunities out there, he sees endless possibilities.
“Linear cable is still very important, but it's not the only option any more," he says. Asper sees the likes of YouTube, video on demand and other non-traditional content carriers as a lifesaver for a channel that might be swamped in the mainstream Canadian market. “The opportunities are endless," he explains.
“Build a passionate audience and no matter what happens, they'll find you.” – Leonard Asper
What they are allowing Asper to do is reach the fight-crazed young males from across the globe, rather than having the fight channel's audience restricted just to Canada. Three-quarters of the Fight Network's YouTube views come from outside Canada, he says – amazing considering that the channel is available in only six other countries (Turkey, Belgium, Portugal, Angola, Mozambique and on a very limited basis in the U.S. after the purchase of a fledgling fight channel there earlier this year).
That allows Asper to overcome the challenges raised by what he says is a restrictive Canadian broadcasting system that favours the big players, most of whom own cable and satellite companies. Getting or maintaining a spot on the dial is a major challenge, he says – not to mention trying to maintain or grow wholesale fees.
“The challenges are huge in Canada because it really does come down to three players for the English-language market," he says. “They're definitely integrated and they definitely see independents as competitors."
Fight Network has another competitor also working the global angle too – and it is an independent Canadian broadcaster as well – Channel Zero’s Fight Now, which is carried Stateside on Cablevision in New York and Google Fiber in Kansas City, Provo Utah and Austin Texas. It has no Canadian carriage at this time.
Asper has no illusions about the Fight Network or his next project – the fantasy sports channel he plans to launch before the start of the next baseball season, likely in March – being major competitors. Staying small and appealing to a rabid fan base is the key to success, he says. “I'm not going up against the NFL Network or Sportsnet or TSN," he says. “I'm building verticals in niche sports that have a wide global audience even though they may not have a huge mass audience in any particular country.
“If only 10 or 20% of the public likes combat sports, if you manage your costs and have 10 or 20% of 200 countries, you have enough critical mass. The digital world allows that."
So far, the signs are positive for the Fight Network. Canadian subscriptions rose 20% in the past year to 1.4 million, ad revenue has jumped 75%, the number of major sponsors has spiked from 10 to 60 and average ratings have grown 50% since 2012, says the CEO of the privately held company.
That growth is one reason why Asper believes that he can survive if Ottawa's unbundling, or pick-and-pay, proposal comes to fruition. Channels with a hard-core fan base might even flourish, he says.
“We never expect to get more than a couple of million subs in Canada, but I know they'll want it and will pay for it," he says. “We have a substantial base that is paying for it a la carte. They're 22-25 years old and don't have enough money to pay for the $100 package anyway.
“I learned this from the Food Network and Home and Garden at Canwest. The two channels that nobody would give up, that advertisers wouldn't leave in the worst of times, that had huge online communities … were those two. I thought that was the way of the future.
“Build a passionate audience and no matter what happens, they'll find you.”
