Assessing Acquisitions Execs’ Buying or Shopping Mode
By Lucy Cohen
The U.S. dollar's
value has fallen below other currencies; the 2004-2005 season saw some
significant successes in U.S. programming and the number of channels
around the world continues to grow. In theory, buyers across the globe
should be emptying their wallets in a rushed attempt to acquire as
much U.S. product as possible at the L.A. Screenings '05, and this
could be happening, with a few exceptions.
Noticeably missing from this VideoAge survey are the opinions of program
buyers from Muslim countries, who are said to be upset at the way they're treated
by immigration and other U.S. government authorities at the port of entry and
departure. A U.S.-based consultant for many Muslim buyers has urged the studios,
through their association (the MPAA), to pressure the U.S. authorities not to
harass these executives who want to attend the L.A. Screenings. The executives
are screened by the U.S. embassies and consulates well in advance.
Among
the 1,000 or so TV programming execs from 70 countries who will be
attending the L.A. Screenings, John Stephens of Australia's Seven Network
- who acknowledged that U.S. programming accounts for 40-45 percent
of his network's programming - sees the "return to strong scripted
dramas," as a major strength of the U.S. market at the moment.
George McGhee, who runs Program Acquisitions for all four BBC Channels,
concurred: "Strengths are that narrative drama seems to be coming
back and reality shows are less prominent in the U.S. schedules." McGhee
explained that, despite a recent announcement by the BBC that it will
invest an additional 61 million pounds (U.S.$116.4 million) into programming
across all TV, radio and interactive channels (in an effort to reduce
repeats in peak-time), "It is unlikely that any of these additional
monies will be targeted for acquisitions." 90 percent of BBC One's
schedule is spent on original programming and the remaining 10 percent
is reserved for program acquisitions.
If
there's another genre that seems unanimously unpopular among buyers
it is the procedural crime show. Tim Worner of Australia's Seven referred
negatively to a "sea of CSI and Law & Order shows." Göran
Danasten of Sweden's SVT said, "This year is probably a year when
I would prioritize drama over crime, since I already have some good
crime in stock." Danasten explained: "Thanks to the quality
of things coming out of the U.S. [and] their popularity among Swedish
audiences, we are relying a lot on shows from the U.S." He stressed, "I
am on a constant lookout for high-quality, preferably one-camera comedies
with personality, smartness and edge. Series like The Office, Curb
Your Enthusiasm and Arrested Development have revitalized
an increasingly conventional genre during the recent years and I hope
they'll inspire the talent - and executives - to be more daring when
it comes to this difficult type of programming." In terms of shows
that are groundbreaking, Danasten said, "There have been a lot
of nice things happening in the cable universe in recent years. The
creative freedom in these companies has had a great effect, resulting
in shows
like Nip/Tuck and !Huff. These type of
high-profile shows are not only satisfying a personal taste, but are
also very important to SVT." He added, "The networks are
still miles behind the cable companies."
However, Peter Kolosi of RTL Klub, the biggest commercial free-to-air
networks in Hungary, which commands a 38-40 percent primetime market
share, explained that he wouldn't even look for comedies at the Screenings. "U.S. sitcoms
absolutely don't work in Hungary," he said. "Generally, American shows
play in late-night or the afternoon, but they can't get the market share we are
used to during primetime. They're just not as popular as they used to be."
Iryna Kostyuk, a buyer at Inter TV Channel in the Ukraine (which has
a programming schedule made up of 25 percent U.S. programming), said, "The Ukrainian market
is expanding and is shifting more to a local production sector . . . Our audience's
interest is shifting away from American series." Therefore, "our primary
interest at the Screenings will be looking at new series in terms of the possibility
of buying the format and producing the locally-adapted version," she said. "The
structure of the deals is due to change as well - we won't be acquiring big volume
packages any more, but rather moving into narrow-targeted acquisitions." Kolystuk
said that even the great hopefuls - Desperate Housewives and Lost -
will have limited success in the Ukraine. "[Those] series, I am sure, will
be of great interest to a younger audience, however . . . this audience nowadays
watches less TV than before, therefore I doubt these series will ever be scheduled
in primetime," she said.
"The most important U.S. products for us are feature films, they are what
we need for primetime," said Kolosi. Alejandro Sacasa of Televicentro de
Nicaragua, Canal 2, a free-to-air national television station in Nicaragua, which
commands a 50 percent audience share during primetime, gave the studios some
advice when it comes to films. "If the studios focused on making more movies,
mid-budget with known stars, they would make a killing on the international market,
which is bigger than the U.S. domestic market last time I checked." However,
both acquisitions execs from Seven - Worner and Stephens - pointed to the falling
performance of features on TV as a major problem facing Australian broadcasters. "The
drastic fall-off in the performance of theatrical features on free-to-air, due
to DVD and PPV exposure, [is a huge problem]," said Tim Worner of Seven. "Australian
broadcasters will be seeking big license fee reductions when output deals come
around for negotiation."
Some buyers pointed to the fact that American shows have little staying
power. RTL Klub's Kolosi said "what's popular in Hungary usually doesn't get renewed
for a second season in the U.S." The BBC's George McGhee pointed to a larger
problem: "shows just are not allowed to build in the U.S., they are either
instant hits or [they] get cancelled," he said.
It remains to be seen whether buyers will rely entirely on studio product
to capture programs with staying power. Tim Worner of Seven said, "The bulk
of our programming comes from agreements with the big studios, but for the right
show, you'd certainly buy it from an independent." Göran Danasten of
SVT in Sweden echoed the same sentiment, "The studios are inevitably most
important. The fact is, most of my needs are [better] satisfied by their huge
output. But, I will attend the indie screenings as well. It is important to have
the whole picture, and to always look everywhere for the best." While admitting
that most of his programming comes from the big studios, NBC Universal vp of
programming Steve Patscheck, who, at the Screenings will be in the market for
first-run series and features for Universal Channel in Latin America and Brazil,
said "currently we're experiencing tremendous success with Medical Detectives from
CABLEready." He continued, "We have [also] had tremendous success with
series such as The 4400, Crossing Jordan and Law & Order:
Special Victims Unit, so yes, we will continue to purchase American product." He
added, "The pacing, writing and overall quality of U.S.-based programming
seems to resonate with viewers in Latin America and Brazil."
Angel Zambrano of Argentina's Claxson said he looks for independent
producers as well as studio product when programming for one of his
three movie channels. "Though
we buy more library product from the studios, we are happy to buy from independents
too." He mentioned that he tends to look for more inventive and independent
product for ISat, the movie channel geared toward younger audiences.
It seems as though U.S. shows will always find shelter in their neighbor
directly to the north: Canada. "U.S. programs are really the driving force in Canada," said
Kirstine Layfield, svp, programming for Alliance Atlantis Lifestyle Networks.
Layfield, who buys programs for eight lifestyle channels, explained that her
company buys network, cable and syndicated programming, relying mostly on reality. "We
have moved so far away from being 'how-to' networks to being 'in your life' networks,
so we'd love a sort of reality version of Desperate Housewives. Layfield
explained that as one of the littler guys, Alliance's biggest challenge is competing
with nets like the CTV and CHUM-owned stations that can simulcast. "Our
biggest challenge is to try to make ourselves known as a player in the Canadian
market. We have to be nimble enough to counter-program or program around our
simulcasting competitors," she said.
Carlos Sanchez of Mexico's LatinAmerica Broadcasting, said that 20
percent of his programming consists of U.S. product and that "American
product has never stopped being interesting. The problem is that other
markets in different parts of the world are working with great quality
and very small budgets. These people don't need to support the great
bureaucracies and pay [loads of money] to shoot in Hollywood and New
York."
Alejandro Sacasa added, "Due to production for small cable networks that
serve specific niches, a BIG problem with American programming during the last
10 years has been its trend to target smaller demographics that are normally
found only in the U.S." He continued, "There is an absence of programming
that is designed to appeal to a broad reach of people. Therefore, the appetite
for U.S. product has diminished considerably over the past 10 years. Moreover,
the people [who watch shows like] Desperate Housewives will watch it on
cable, so there is even less reason for a free-to-air to TV to buy it."
In terms of what he'd like to see more of at the Screenings, Sacasa
said, "I
would like to see studios mailing pilots and trailers ahead of the screenings.
Many studios swallow too much of your time in showing you the product when you
should be talking and negotiating. Many international stations can no longer
attend both NATPE and the L.A. Screenings so face time is at a premium now."
About 300 TV executives are expected from the Latin American territory, which
will make up the Screenings' largest buying block in terms of the number of acquisition
executives, as well as the number of hours being licensed.