U.S. cable nets keep strong overseas grip. (Int'l TV Channels).

The digital evolution is proving to be a windfall for U.S. cable companies in the international marketplace. Channels such as Discovery, Nickelodeon, Disney and MTV have become among the world's most recognized brands because of their success at spinning off their networks into local markets in Europe, Latin America and Asia. Smaller channels are also engaging in targeted expansion, such as Bravo's Spanish-language Film & Arts Network and Bravo Brazil, and Comedy Central offering itself as a satellite direct-to-home platform in the Middle East.

In March of this year, Discovery Networks International announced a joint venture distribution partnership with Sony Entertainment TV in India creating a new platform of six channels -- Discovery Channel and Animal Planet, the flagship Sony channel AXN, SET, Max and CNBC India. When announcing the venture, Sony CEO Kunal Dasgupta said the pay channels of the two groups will be jointly marketed as a single package. The goal, he said, was to develop a wide-enough offering of channels to take full advantage of the potential subscription revenue market.

Glynn Brailsford, CEO of Promax, said that the globalization realized by these companies isn't as easy as it might appear "because we're certainly living in a world now where differences rather than similarities are being pointed up. Wrestling with those twin demands of trying to meet your company's branding goals but at the same time catering to your own individual marketplace is an exercise.

"That's a problem a global brander has to address all the time but probably has to be even more sensitive to now than ever before. How would you further your brand while at the same time recognizing cultural and social differences in the regions into which you're exporting your brand? The way MTV does it is really interesting. They really give great individual license to each area to reflect their area properly instead of trying to impose a look."

One of the most targeted regions for U.S. cablers is Latin America. Since 1992, almost 30 U.S. channels have launched in the market, including Canal de Noticias NBC, Cinemax, Discovery Latino, ESPN International, Fox Latin America Channel, HBO Ole, MTV Latino, TNT, Cartoon Network Latin America and USA Latin America.

The proliferation of "franchised" U.S. cable companies overseas is a relatively recent phenomenon. In the beginning, only pirated broadcasts were seen in what industry analysts called "inadvertent international expansion" -- when unencrypted satellite signals spilled outside U.S. borders and were illegally picked up by neighboring countries in Latin America.

Even though U.S. companies wanted to supply Latin America with channels and programming, there were significant legal, copyright and licensing issues that initially prevented many American programmers from providing the region with product.

More problematic was the limited number of platforms available to TV outlets to distribute their programming back in the early 1980s. At the time there was only one international satellite provider, Intelsat. Eventually, though, PanAmSat was created, followed by a number of private operators and government-owned satellite systems.

The Latin American boom of the 1990s was facilitated by the resolution of payment structures, expansion of satellite services, advancement of compressed digital video technologies and increased number of outlets, all of which created a huge opportunity for U.S. cable channels looking to expand beyond domestic borders. The financial benefits for going global are obvious. Nor only can the channels export formats to recreate hit U.S. shows locally, thus providing additional revenue streams, they can also amortize programming costs over several networks. This is especially important to channels such as Discovery and National Geographic, both of which invest millions in high-quality, high-cost documentaries that otherwise would be financially unfeasible.

In addition to exporting entire channels, selling individual programs originally developed for U.S. cable companies has also proven a lucrative business. For example, San Francisco based CNET Television, which produces technology programming such as CNET News.com for CNBC and other U.S. cable channels, also sells its shows in international syndication to 98 countries worldwide. TV Guide's Celebrity Dish, a cooking show featuring movie and television personalities preparing favorite dishes, was developed for The Food Network and has gone on to be sold in over 25 international markets.

"The incredible growth of niche networks delivered by cable and satellite has generated a tremendous demand for programs around the globe," said CABLEready founder Gary Lico. Currently, reality-based science shows are among the hottest trends. "All kinds of whodunits," said Lico, "whether it be accidents, crimes, police work or mysteries.