Video Age International January 2014

I N T E R N A T I O N A L www.V i deoAge.org BUSINESS JOURNAL OF FILM, BROADCASTING, BROADBAND, PRODUCTION, DISTRIBUTION January 2014 - VOL. 34 NO. 1 - $9.75 (Continued on Page 26) Why am I paying for cable channels I don’t want or ever watch? This is a common complaint/question, not just in Canada but all across North America, where in order to get a channel you really like, you have to buy a bunch you don’t. In Canada this issue is being addressed. Last October, the Canadian government announced that consumers should be allowed to choose the combination of cable channels they want. This Unbundling: WhenBreaking Up IsHardToDo My 2¢: Why small TV marts are important to small TV companies MIP-TV Preview: Get ready even if you don’t want to Sección en Español: la economia, Brasil, la irritación Miami clout disperses NATPE clouds: LATAM TV biz spices things up Page 34 Page 22 Page 13 Page 8 There are three times in the calendar year in which members of the TV and film press actually get some respect in the U.S. and perhaps internationally: During the annual Golden Globe Awards and the twice-annual Television Critics Association Press Tours. TVCriticsAssoc. Up Froma BumpyPast (Continued on Page 24) NetflixTries ItsMagic inLATAM The Internet TV player adapts to a changing game, plays multiple cards Lately,Netflixisthemost-talked about new(ish) kid on the TV block, since over the years it has been a master of adapting and transforming itself. Netflix evolved from its initial DVD rental business (flat rate for mailed DVDs) in 1998, to a DVD subscription (monthly flat fee for unlimited mailed DVDs) in 1999, to video streaming in 2007. Now it is changing its business model again, moving closer to a traditional TV delivery service. Netflix is in talks with U.S. cable TV companies to place its streaming app on set-top boxes, representing a rapprochement with the traditional TV sector. In Europe, Netflix already has similar deals with Virgin Media in the U.K. and Com Hem in Sweden. For the near future, Netflix is also targeting theaters with dayand-date releasing, seeking deals to secure theatrical films in the $15-$30 million production range released simultaneously with cinemas, and keeping them online up to 45 days (Continued on Page 28) “...and please protect us from Amazon.”

Cover Stories I N T E R N A T I O N A L www.VideoAge.org BUSINESS JOURNALOF FILM,BROADCASTING,BROADBAND,PRODUCTION,DISTRIBUTION January 2014 -VOL.34NO.1 - $9.75 (Continued onPage 26) Why am I paying for cable channels I don’t want or everwatch? This is a common complaint/question, not just in Canada but all acrossNorth America, where in order to get a channel you really like, youhave to buyabunchyoudon’t. In Canada this issue is being addressed. Last October, the Canadian government announced that consumers should be allowed to choose the combination of cable channels they want. This Unbundling: WhenBreaking UpIsHardToDo My2¢:Why small TV martsare important to small TVcompanies MIP-TVPreview:Get ready even if you don’twant to Sección en Español: la economia,Brasil, la irritación Miamicloutdisperses NATPEclouds:LATAM TVbizspices thingsup Page34 Page22 Page13 Page8 There are three times in the calendar year in which members of the TV and film press actually get some respect in the U.S. and perhaps internationally:During the annual Golden Globe Awards and the twice-annual Television Critics AssociationPressTours. TVCriticsAssoc. UpFroma BumpyPast (Continued onPage 24) NetflixTriesItsMagicinLATAM The InternetTVplayeradapts toa changinggame,playsmultiplecards Lately,Netflixisthemost-talked about new(ish) kid on the TV block, since over the years it has been amaster of adapting and transforming itself.Netflix evolved from its initialDVD rental business (flat rate formailedDVDs) in 1998, to aDVD subscription (monthly flat fee for unlimitedmailed DVDs) in 1999, tovideo streaming in2007. Now it is changing its business model again, moving closer to a traditional TV delivery service. Netflix is in talks with U.S. cable TVcompanies toplace its streaming appon set-topboxes, representinga rapprochementwith the traditional TVsector.InEurope,Netflixalready has similar deals with Virgin Media in theU.K. andComHem in Sweden. For the near future, Netflix is also targeting theaters with dayand-date releasing, seekingdeals to securetheatricalfilmsinthe$15-$30 million production range released simultaneously with cinemas, and keeping them online up to 45 days (Continued onPage 28) “...andpleaseprotectus fromAmazon.” MAIN OFFICES 216 EAST 75TH STREET NEW YORK, NY 10021 TEL: (212) 288-3933 FAX: (212) 288-3424 www.videoage.org www.videoagelatino.com www.videoage.it P.O. BOX 25282 LOS ANGELES, CA 90025 VIALE ABRUZZI 30 20123 MILAN, ITALY YUKARI MEDIA YMI BLDG. 3-3-4, UCHIHIRANOMACHI CHUO-KU, OSAKA JAPAN TEL: (816) 4790-2222 EDITOR DOM SERAFINI ASSISTANT EDITOR SARA ALESSI EDITORIAL CONTRIBUTORS Isme bennie (CANADA) ENZO CHIARULLO (ITALY) lucy cohen blatter CARLOS GUROVICH LEAH HOCHBAUM ROSNER BOB JENKINS (U.K.) AKIKO KOBAYACHI (JAPAN) DAVID SHORT (AFRICA) MARIA ZUPPELLO (BRAZIL) PUBLISHER MONICA GORGHETTO BUSINESS OFFICE LEN FINKEL LEGAL OFFICE ROBERT ACKERMANN, STEVE SCHIFFMAN WEB MANAGER MIKE FAIVRE DESIGN/LAYOUT CARMINE RASPAOLO ILLUSTRATIONS BOB SHOCHET VIDEO AGE INTERNATIONAL (ISSN 0278-5013 USPS 601-230) IS PUBLISHED SEVEN TIMES A YEAR: JANUARY, MARCH/APRIL, MAY, JUNE, JULY, OCTOBER AND NOVEMBER/DECEMBER. PLUS DAILIES BY TV TRADE MEDIA, INC. © TV TRADE MEDIA INC. 2014. THE ENTIRE CONTENTS OF VIDEO AGE INTERNATIONAL ARE PROTECTED BY COPYRIGHT IN THE U.S., U.K., AND ALL COUNTRIES SIGNATORY TO THE BERNE CONVENTIO AND THE PAN-AMERICAN CONVENTION. SEND ADDRESS CHANGES TO VIDEO AGE INTERNATIONAL, 216 EAST 75TH STREET, SUITE PW, NEW YORK, NY 10021, U.S.A. PURSUANT TO THE U.S. COPYRIGHTS ACT OF 1976, THE RIGHTS OF ALL CONTENT DONE ON ASSIGNMENT FOR ALL VIDEOAGE PUBLICATIONS ARE HELD BY THE PUBLISHER OF VIDEOAGE, WHICH COMMISSIONED THEM Small TV trade shows aid small TV companies Page 34 Features 32Calendar of film/TV events and travel news 13Sección en Español La economía de los estudios Americanos Qué irrita a los ejecutivos de la industria de la TV Brasil: Un nuevo paisaje de TV 6Book Review: Looking to finance a project? This book will show you how 4World: Singapore, Belgium, Croatia. Plus, notable quotes 22Road to MIP-TV: 10 events will feed the crowd News 10 ATF Market Report: Awaiting the content kings and Christmas 8NATPE Preview: Miami’s clout makes biz less cloudy for the TV industry Netflix tries its magic in LATAM. Around the world, the Internet TV player is adapting to a changing game, playing multiple cards Unbundling cable in Canada: When breaking up is hard to do! TCA, the U.S. TV Critics Association, is up from a bumpy start

January 2014 4 World Brussels is set to launch an anti-trust probe into sales of pay-TV rights to premium sports and newly released Hollywood blockbusters. The probe could have serious implications for U.S. studios and the industry as a whole. According to the Financial Times, this probe comes after a 2011 European Court of Justice ruling that fined a British pub owner for showing football (soccer) to customers using a satellite card from Greece. In 2012, the EU competition commissioner sanctioned a “fact finding” effort in light of the ruling to see whether barriers to cross-border access merited anti-trust scrutiny. Croatia Gets The Girl Southeast Europe has become a popular filming destination for directors from all over the world. According to a recent article in the Financial Times, directors and producers of TV series and movies are enthusiastically using the region’s cityscapes and mountain scenery for their projects, all while taking advantage of government support and lower costs. Local studios are also gaining momentum as a result. Balkan films, inparticular, havebecome increasingly high-profile. Dubrovnik, Croatia, scored a major coup when it was picked as the location for the imaginary kingdom of Westeros on Game of Thrones, a successful U.S. drama series that airs on HBO. Notable Quotes “The big challenge in advertising emerged with the dusting off of sponsored content, and this time with videos cleverly and artfully masquerading as pure content.” VideoAge, June/July 2013 Issue “U.S. warns over use of sponsored content.” The Jakarta Post, December 3, 2013 Brussels ProbeTo AffectPay-TV A contingent of film producers from Southeast Asia have formed the Southeast Asian Audio-Visual Association (SAAVA), a non-profit intended to advance creative development across the region, promote the region’s audio-visual content abroad and stimulate collaborations between members. Singapore-based film financier and founding member of SAAVA, Chan Gin Kai of Silver Media Group, said in a statement: “With the explosion of well-produced [audio-visual] content and a growing media infrastructure in our Southeast Asia film community, there needs to be strategic support and representative bodies in place to protect and properly utilize intellectual properties across platforms for international trade and investment.” Moving forward, SAAVA will be active participants in film markets, festivals and forums throughout the region and internationally. They will also offer prizes and awards to students and professionals, arrange industry exchange trips and conduct workshops for members. Southeast Asian Audio-Visual Association Is Formed SPORTELASIA27X36.indd 1 19/12/13 13:53

A Momentum TV Production In Conjunction with Neil LaBute for DirecTV THE LANDMARK TELEVISION DEBUT FROM RENOWNED AMERICAN SCREENWRITER AND PLAYWRIGHT NEIL LABUTE STARRINGTOM FELTON JULIAN MCMAHON DAVID BOREANAZ THE END IS JUST THE BEGINNING 10 x 30 mins | Drama | | NATPE 30th floor, The Tresor Tower Building, Miami www.fremantlemedia.com “...A HIGH POWERED CAST.” -MIAMI HERALD “...BOLD AND ENERGETIC PERFORMANCES...” -PHILADELPHIA INQUIRER “...RIVETING.” -ADWEEK “IT’S A HALF HOUR YOU WON’T REGRET SPENDING.” -NY DAILY NEWS

January 2014 6 Book Review With Give Me the Money and I’ll Shoot!: Finance Your Factual TV/Film Project (Bloomsbury Publishing, 431 pages, $39.95), author Nicola Lees, who has developed documentaries, docudramas, multiplatform and reality programs for network and cable channels, has attempted to pen the definitive guide to financing documentaries. And aside from a few hiccups — including some rather lengthy and boring stories about how certain documentaries were eventually funded— for the most part, she’s succeeded. While not quite a new Bible for filmmakers embarking upon reality-based projects, Give Me the Money — which introduces and explains a different type of funding opportunity in each chapter — makes a good case for why would-be documentarians ought to at least skim this rather lengthy how-to before seeking the cold hard cash they need to complete their passion projects. The orderly method is perfect for this type of step-by-step guidebook, as it unambiguously breaks down each potential source of funding, describing at length how each one — private equity investors, universities, local or foreign governments,filmfundsorgrantsandevencrowdsourcing websites like Kickstarter or IndieGoGo — would need to be approached, whether they’d need to be repaid, what your obligations to them from a filmmaking standpoint would be and even how to apply for specific funds. And while some of it might seem obvious — whowouldn’t immediately appeal to rich relatives or friends if they had them? — other pieces of advice, such as how exactly to fill out those pesky grant and foundation application forms and why accepting money from organizations that might want to push their agenda instead of yours can be a mistake — could prove invaluable to folks with few industry contacts. But the real pearls ofwisdomthis bookoffers are the little tidbits provided by the many producers, directors and documentary-making insiders who are interviewed in the final third of the tome. For example, for those who’ve already finished filming their subjects, but can’t afford to hire an editor to sculpt the footage into a finished film, it can be very useful to learn about The Edit Center. This New York City institution, which teaches aspiring editors how to use Final Cut Pro, will sometimes use real unfinished projects submitted by desperate filmmakers, notes The Edit Center’s director of Education, Rachel Mills. If you can get your partially-finished film there, you might manage to finish your movie — at no additional cost. Later, producer Lucy Stylianou, of Londonbased television production company Furnace, explains the importance of occasionally bringing in sales agents to make certain pre-sales, as many of those agents have pre-existing relationships with broadcasters, which can save everyone involved both time and money. And Carl Hall of London’s Parthenon Entertainment cautions newbie filmmakers against a practice he refers to as “blanket bombing,” in which they go to festivals like Hot Docs or MIPDoc and simply pitch everyone they see. “If you think of any other business you’d be mad to give away your trade secrets, but a couple of drinks at the conference bar and suddenly you are having off-the-cuff discussions with broadcasters… STOP, THINK, before you pitch,” he says. Other notables interviewed include Elizabeth Radshaw, director of Toronto’s Hot Docs Forum and Market, who believes in helping to educate new documentarians into the doc culture; Mark Starowicz, executive director, Documentary Programming, for Toronto’s Canadian Broadcasting Corporation, who stresses the importance of finding the right co-producing partners for your project; and TomZiessen, Public Engagement Advisor, People and Broadcast Grants for London-based global charitable foundation Wellcome Trust, who explains that filmmakers looking for a piece of the £750,000 (U.S.$1,234,000) they spend a year on broadcast, will benefit from specificity. “Applications are often very vague regarding which channels the film is aimed at,” he says. “Even at the earliest stage, we need the filmmaker to say, ‘This is an idea for such-and-such a slot on this channel…’ Clarity is important.” The book’s author, Lees, who’s developed documentaries, docudramas and reality programming for a slew of network and cable channels in both the U.S. and U.K., including the BBC, Discovery, Travel Channel, National Geographic and TLC, and has personally penned more than 370 factual TV program proposals, is a true expert with an easy, breezy writing style that makes Give Me the Moneya quick, fun read. In her introduction, she explains that she titled the book Give Me the Money and I’ll Shoot! “partly because it amused me, but also because it seemed to appropriately express the frustration felt by the growing number of TV producers and independent filmmakers who are desperately trying to get someone to fund their project before they lose access to their story or have to remortgage their house.” Youget the sense that she genuinely cares for the filmmakers frantic to finish their documentaries, and that she knows what it’s like to eat and breathe a project that might never see the light of day. She seems to truly want each and every reader looking to fund their documentaries to be a bonafide success. In her previous book, Greenlit: Developing Factual/Reality TV Ideas from Concept to Pitch, Lees demystifies the TV development and commissioning process. Now, in this new work, she does the same for the funding process, making it crystal clear that procuring the money to pay for everything from cameramen to postproduction editors to airline tickets to festivals is part hard work and part dumb luck. But the most important part, she says, is networking. “If you don’t have an existing relationship with someone who has the means to fund your project it is much more difficult, if not impossible, to get them to part with their cash,” she writes. “Start nurturing relationships with the people you might need to approach for funding long before you actually need to ask for money, whether they be commissioning editors, distributors, or that wealthy uncle you haven’t spoken to for years.” While Lees can’t make those introductions for you, she does tell you the best places to go to meet the types of people who might give you their money so you can get down to the business of shooting. The rest is up to you. LHR Producing documentaries is a question of economics and financing as much as creative ingenuity Looking to Finance a Project? This Book Will Show You How

GAUMON T I N T E R NAT I ONA LT V. COM SEE US AT NATPE IN SUITE #1516 CHATEAU TOWER, FONTAINEBLEAU HOTEL NBC AXN 26 X 1 HOUR CANAL+ 13 X 1 HOUR NETFLIX 23 X 1 HOUR

8 Few places beat South Florida at the end of January, which is why television industry executives — not only from Latin American markets, but from around the world — happily packed up their bags and caught flights to Miami Beach for the 2014 edition of NATPE at the Fontainebleau Resort, from January 2729. As Marielle Zuccarelli, managing director of International Content Distribution for A+E Networks put it, “Who doesn’t want to be in Miami in January?” Zuccarelli added, “NATPE is an important market for A+E LATAM content sales. We meet with our buyers at a point when they are making key decisions about the year ahead. Since its move to Miami, NATPE has also expanded into a market with increasing traffic from the rest of the world including U.K. domestic players.” “NATPE is a major event, not only because of its massive attendance of Latin American broadcasters and [other] clients, but also because it is held in Miami, our headquarters. Detailed preparation is needed in order to fit all of [Telemundo’s] meetings within the limited time we have during those three days,” said Joysette Rivera, Sales director of Central America, Canada, Ecuador and the Caribbean for Telemundo Internacional. The limited time tomeet with clients during the three-day market was a concern that was echoed by other exhibitors, even though the TV market in effect starts on Sunday, a day before its official kick-off. According to A+E’s Zuccarelli, “Every year it’s always a race to make the schedule work because there are so many people to see and so little time. “Since NATPE’s move to Miami, the market has been rapidly changing so it should be interesting to see what new faces pop up,” she said. According to NATPE’s president and CEO, Rod Perth, as early as last month, 225 exhibitors, including 34 first-timers, had already registered. Plus, registration for buyers, both domestic and international,was pacingwell aheadof 2013. In fact, 44 percent of the buyers who had registered in the weeks ahead of NATPE were international, hailing from 46 different countries. On the domestic front, the station groups are returning to the market after amarked absence. NATPE’s StationGroup Incentive Program,whichoffered incentives toattract various sized station groups, did the trick, with 28 station groups registered to attend. CBS Studios International’s managing director for Latin America, Stephanie Pacheco, noted, “NATPE continues to be an important market for CBS and our business in Latin America.” Saralo MacGregor, EVP of Content Television & Digital, has found that “attendance fromEuropean broadcasters is steadily increasing and, of course, Latin America, North America and Canada continue to be very busy marketplaces for us.” Indeed, Pepe Echegaray of the newly rebranded Power Entertainment Media noted that he was pleasantlysurprisedby the“qualityandthequantity of the new buyers coming from Europe, Asia and other parts of the world. In Miami, attendance has been building up.” He added that due to the fact that more Europeans are coming, their CEO, Susan Waddell, will attend for the first time. And with more buyers attending, Echegaray reported ahead of the event that his schedule was shaping up nicely. “I generally have between 35 to 40 appointments total. In one week, I scheduled almost half of the appointments I usually have. And then of course there are always walk-ins.” To accommodate his company’s busy schedule, Cisneros Media Distribution or CMD’s (formerly Venevision Int’l) Cesar Diaz stated that, “Like every year at NATPE we will be present with our full staff of sales executives. Our set-up will be as in years past, taking over almost half an entire floor at the Tresor Tower.” This year, NATPE’s theme is “No Barriers. New Business.” It ismeant toreflectNATPE’sdedication to creating the firstmust-attendmarket of the year for the linear and digital content communities, as well as for advertisers and brands. Indeed, Diaz of CMD said, “With the increase of digital platforms, the need for content is on the rise. Having this convention at the beginning of the year is ideal for a cross network of content providers, sellers and buyers. There will not be many significant or radical differences from other years, yet, the mere growth of the industry in general will give the convention a solid dose of vibrant energy.” “We also believe we will see a more digital event as the years go by,” added Claudio Ipolitti, International Business director at Telefe Internacional. NATPE’s Perth announced that for the first time this year, NATPE will feature a presentation of findings from a two-part independent research study commissioned by NATPE and the Consumer Electronics Association (CEA) to learn how and why consumers use second screen devices. The findings will be presented in a co-branded research report, and the second part of the report will be presented at NATPE. Plus, as part of its partnership with CEA, NATPE will also feature a display of the 2014 CES Innovations Design and Engineering Awards Honorees. Of course, the elevator issue at the Tresor Tower was once again the elephant in the room. “I believe themobility times within the event should be improved,” said Telefe’s Ipolitti. Diaz of CMD agreed: “For sure the elevator issue, in particular at the Tresor Tower, will still linger on everyone’s mind. But as we progress into another year in Miami, this concern, as well as other issues, will be dealt with and resolved. Unfortunately, there seems to be no sure-fire solution to this issue, but it’s also true that it has never been as bad as it was in its first year.” Similarly, A+E’s Zuccarelli believes that “the elevators are always a concern, but the NATPE staff work hard to make the process smooth, and we pad the schedule to give everyone some wiggle room and remove some of the stress.” Content’s MacGregor joked, “An express elevator to our floor would be nice!” NATPE’s Perthnoted that “some kind of alcohol” will be served at the elevator banks again this year to alleviate the aggravation of the wait. Yet the elevatorsweren’t theonly issueweighing on participants’ minds. “Pricing continues to be an issue,” Power’s Echegaray said. “The cost of catering to the rooms is high…NATPE did something great last year by having the Happy Hours on the floor, so maybe the Fontainebleau could also do something similar.” Televisa Internacional’s Carlos Castro, general director of Sales, noted that this edition of NATPE is particularly special for the company because president and CEO Emilio Azcárraga Jean will be honored with a Brandon Tartikoff Legacy Award. The other winners of the 11th annual Brandon Tartikoff Legacy Award are Jon Feltheimer of Canada/the U.S.’s Lionsgate, Academy Awardwinner James L. Brooks and Lauren Zalaznick, EVP of Media Innovation and Cross Company Initiative at NBCUniversal. Additionally, Televisa’s Azcárraga Jean will participate in the lineup of Global Navigators, along with Alberto Ciurana, president of Programming and Content for Univision Networks, Univision; Mike Beale, director of International Formats for ITV Studios; Andy Kaplan, president of SPTNetworks, SonyPictures Television and Andrew Zein, SVP of Creative, Format Development and Sales for Warner Bros. International Television Production. On top of conferences and, of course, the vital buying and selling, NATPE participants will be kept busy at parties. “As in the past, CMDwill be one of the principal sponsors of Monday night’s opening cocktail and you can certainly expect a glamorous gathering of some of the top stars of telenovelas and a number of celebrities from the Latin world of entertainment,” said CMD’s Diaz. By Sara Alessi Miami Clout Makes Biz Less Cloudy For The TV Industry January 2014 NATPE Preview A+E Networks’ Marielle Zuccarelli

10 As usual, Singapore was in the Christmas spirit this December, with the city-state completely overtaken by the festivities, decorations and nativities; American songs and jingles played everywhere, including Chinese restaurants. However, this multi-cultural, tropical Asian shopping paradise was not waiting for the arrival of Christmas, but for the much anticipated return of TV’s content kings — the North American distributors — at the 14th Asia TV Forum and Market (ATF). But it was not just the local TV sector; the whole city-state seemed to be concerned with America. According to the Monetary Authority of Singapore, loose monetary policies in the U.S. have encouraged a build-up of debt among households and companies in Singapore. Nevertheless, if the U.S. Federal Reserve disappointed Singaporeans, the North American TVdistributors didnot. Among the newexhibitors there were 9 Story Entertainment, Paramount, Starz, Content, Veria Living Worldwide and Sony. Returning companies included GRB Entertainment, Alfred Haber, Breakthrough Entertainment, CBS Studios International and A+E Networks. Plus, the London-based North American companies such as Lionsgate, DreamWorks, and Hasbro, together with the locally based U.S. studios such as NBCUniversal and Disney, were also in attendance. But the crowd was not just limited to North Americans, since a record-breaking 50 Malaysian companies attended ATF this year. The official figures were also stellar: over 4,385 attendees from 60 countries representing 1,179 companies, of which 595 were sellers and 584 buyers. In effect one could safely say that the ratio of buyers to sellers was 1:1. Additionally, 69 top TV and film speakers were present for more than 28 conference sessions. The confusion about whether this year’s premarket day on December 3 was actually going to be a market day (as was implied on the event’s website) was clarified: It was indeed a premarket, conference-only day. This year, the exhibition floor officially opened at 10 a.m., instead of 9 a.m., giving space and prominence to a large number of conferences. This is a tactic now used by many trade show organizers to increase the number of participants without necessarily improving the buyer-to-seller ratio. However, on the floor, exhibitors seemed unaware of the 10 a.m. opening bell and by 9:30 a.m. they were in full swing with meetings and off to a very good start. The corridors were busy and the stands full of buyers, dropping off a bit on day two and dwindling to a virtual halt on day three — ATF’s last day. Nonetheless, the market left many exhibitors happy. First-time participant Erik Pack, from the London office of Paris-based Gaumont, was enthusiastic about both the way TVFI organized theFrenchPavilionand the resultsCelineCarenco reported, especially for Gaumont’s 26-episode drama series Hannibal. Key prospects included buyers from Singapore, Malaysia, Indonesia, Thailand and the Philippines. For Kate Blank of Canada’s Breakthrough, this ATF compared favorably with that of last year: “A good market to meet with buyers that I don’t see at MIP-TV and MIPCOM.” Blank, who at ATF worked from a table in the participants’ pavilion, would have liked ATF to offer the type of desk found at NATPE, which is economical and yet convenient, though she’s also “hoping for a Canadian Pavilion.” Caracol’s Estefanía Arteaga reported success with sales of formats, especially with Korean and Vietnamese buyers. Televisa’s Javier Paez also reported a “strong market” for Southeast Asia, especially Vietnamese buyers. Similarly enthusiastic were Lionsgate’s Wendy Reeds and GRB’s Benn Watson, who had a “good market” for pan-regionals. Among first-time exhibitors, Content’s Diana Zakis said that she will evaluate whether ATF is more effective than personal visits, since she cannot do both. Similarly, returning exhibitor Marcel Vinay of Comarex said that at ATF he can meet with many buyers, but personal visits tend to be more effective. Other first-timers like Passion’s Nick Tanner, Starz Todd Bartoo and Mondo TV’s Matteo Corradi, were reportedly happy with the results, but were waiting for a full evaluation. Among the buyers VideoAge interviewed, Masa Omiya of Japan’s TWA was looking for featurelength CGI animation, a genre that, apparently, was hard to come by at ATF. Highlights of this year’s event included the brand new Animation Lab, a matchmaking event for Asian animation producers and international commissioners. Thirty-five projects were selected from a total of 45 projects submitted from eight countries. MIPAcademy, organized by Reed MIDEM (organizers of MIP-TV and MIPCOM) and Reed Exhibitions Singapore (organizers of ATF), featured a full day of master classes to help with pitching, selling, brand building, global distribution and rights protection. And then there were the Asian Television Awards organized by Contineo Media and ScreenSingapore — which joined ATF two years ago, after one solo attempt in June — and featured the world premiere of Hong Kong filmFirestorm, starring Andy Lau and Gordon Lam Ka Tung. The red carpet event was attended by both stars. But aside from the red carpet, ScreenSingapore still tends to add little to ATF. According toMelvin Ang of Singapore’s MM2 Entertainment, and a ScreenSingapore board member, management is aware of the shortcomings, which are being addressed leveraging the fact that, while in the West the number of movie screens is dwindling, in Asia movie theaters are increasing. In addition, Singapore offers the right environment to produce films that can easily make money with just five territories considered a “domestic” market: China, Hong Kong, Taiwan, Malaysia and Singapore. Plus, during ATF the Association of Southeast Asian Nations announced the formation of the Southeast Asian Audio-Visual Association, a non-profit organization for the advancement of creative development across the region. Each passing year, ATF adds a new event, and 2014 will be no exception. This coming December, the ATF will also include the Singapore International Film Festival (SGIFF). Originally held in April, the 27-year-old SGIFF returns after a two-year hiatus. Awaiting Both the Content Kings and Christmas January 2014 ATF Market Report Breakthrough’s Kate Blank Caracol’s Estefanía Arteaga Veria’s Ray Donahue

©2014 A&E Television Networks, LLC. All rights reserved. 1502I. sales.aenetworks.com At NATPE, Tresor 21609/21611 The most original content lives on our networks ALWAYS ENTERTAINING SWORN TO SILENCE 1 x 2 HOURS DON’T TRUST ANDREW MAYNE 12 x 1/2 HOUR BIG HISTORY 16 x 1/2 HOUR THE MEN WHO BUILT AMERICA™ 8 x 1 HOUR CONTACTO EXTRATERRESTRE 1 x 2 HOURS BARTER KINGS™: THE GAME PRIMETIME 1/2 HOUR HIDDEN CITIES: EXTREME 14 x 1/2 HOUR MIRACLE RISING: SOUTH AFRICA 1 x 2 HOURS

I N T E R N A T I O N A L www.V i deoAge.org Edición de DISCOP WEST ASIA Edición de MIP-TV y MIP-TV Diaria Edición de L.A. Screenings — Estudios Edición de L.A. Screenings — Latina Febrero 28 Abril 1 Mayo 17 Mayo 13 BUSINESS JOURNAL OF FILM, BROADCASTING, BROADBAND, PRODUCTION, DISTRIBUTION Enero 2014 - VOL. 34 NO. 1 - $9.75 Brasil: Un nuevo paisaje de TV Mucho se ha dicho de las condiciones promisorias de la TV brasilera. ¿Cuánto de esto es verdad? ¿Cuáles son las oportunidades reales en este gigantesco mercado, con más de 190 millones de personas, 17 millones de subscriptores a la TV paga y uno de los sistemas FTA “Free to Air-Libre para ver” más vibrantes del mundo? El FTA de Brasil llega al 99% de la población, liderado por Globo, que es a su vez uno de los motores que impulsan el mercado, como así también una barrera para nuevos jugadores. Como la mayoría de los países de Latino América, los broadcasters brasileros producen los contenidos que transmiten, en (Continuación a la página 16) La economía de los Estudios Americanos Todos sabemos que es lo que amamos en este negocio, es por eso que estamos aquí en Cannes, ¿no es cierto? (Y todos amamos Cannes, especialmente durante MIPCOM, ¿cierto?). Pues, debe ser una persona particularmente valiente la que esté Qué irrita a los ejecutivos de la industria de la TV De acuerdo a un estudio realizado por IDATE con base en Francia, el mercado mundial de TV en 2013 generará un total de negocios por U$D323 billones de dólares, con un 44% proviniendo de publicidad, 47% por pago de subscripciones Pesimistas que subestiman el negocio tradicional de televisión han investigado de mejor manera el potencial de este medio. El único inconveniente podría ser que la riqueza está concentrada entre algunas de las 100 compañías mundiales, y a su vez, estas empresas reciben lamayor parte de sus contenidos solamente de siete Estudios americanos: CBS, Disney-ABC, NBCUniversal, Paramount, Sony Pictures, 20th Century Fox y Warner Bros. Antes de informar sobre los comentarios de los ejecutivos de los Estudios americanos acerca de actuales y futuras oportunidades, analicemos el mercado global audiovisual y lo que este representa para la industria de TV americana. (Continuación a la página 14) (Continuación a la página 20) Photo Caption SECCIÓN EN ESPAÑOL FEAR THE FIELD 2 hour tv movie watch the screener at www.powerentertainment.tv Natpe tresor 22311 LACEY CHABERT AND ROBIN DUNNE

January 2014 14 (Continuación a la página 16) y un 9% de fondos públicos. Considerando que la programación cuesta un 50% del total de los gastos, podemos asumir con seguridad que representa al menos U$D160 billones de dólares del total. Como punto de referencia, en los EE. UU., solamente las compañías de cable de manera colectiva gastan U$D20 billones de dólares al año en programas. Es un hecho, los EE. UU. representan cerca del 36% del mercado global de TV, pero Europa no se queda atrás con un 30%, seguida por AsiaPacífico (21%), Latinoamérica (cerca del 9%) y la zona del Oriente Medio (cerca de un 3%). En términos de exportación de derechos de TV/Videos, USA genera un estimado de U$D20 billones de dólares al año, los que agregados a los negocios domésticos dentro del país, llevaría el total deventas por contenidos cercanoa losU$D70 billones de dólares al año. Si además tomamos en cuenta que casi un 70% del negocio es controlado mayoritariamente por los Estudios americanos, unos U$D50 billones de dólares son compartidos por siete compañías, con un promedio de U$D7 billones de dólares al año para cada una. Recientemente Chase Carey, presidente de 21st Century Fox, informó que en 2016 la compañía espera generar U$D9 billones de dólares, incluyendo el negocio de las exhibiciones en salas. Esta es ciertamente una industria seria y rica, y dadas las cifras y el potencial de crecimiento, el futuro no podría ser mejor. Tan sólo cinco países absorben más del 58% de las exportaciones audiovisuales americanas (Gran Bretaña, Canadá, Alemania, Japón y Francia). Se ha informado que el valor de las importaciones en series dramáticas para 119 broadcasters europeos a lo largo de 21 países arriba a U$D7 billones de dólares al año, un 15% del total de las inversiones en programación, de las cuales los EE. UU. se llevan el 80%. Hay también países emergentes con grandes mercados domésticos tales como Brasil (U$D14.1 billones), China (U$D11.3 billones) y la India (U$D6.9 billones) que ya son grandes consumidores de películas americanas (los más grandes sonIndiaenel cuartoy laChinael séptimo lugar) con un gran potencial de crecimiento para contenidos de TV. El poder económico de los Estudios americanos, debe acomodarse a su poder financiero, considerando que cada episodio de drama adquirido por un broadcaster de TV americano acarrea un déficit de al menos U$D2 millones de dólares, por lo que una orden de 13 episodios, agrega unos U$D26 millones de dólares. Multiplicando esta cifra por 29 nuevos dramas introducidos solamente esta temporada otoñal, los episodios adicionales para completar la temporada y el descubrimiento de la nueva programación original del verano, queda claro que sólo un modelo como el sistema de los Estudios americanos puede financiar el déficit colectivo de producción cercano a los U$D1.5 billones de dólares. Afortunadamente los Estudios, para generar efectivo pueden dar como garantía el catálogo de títulos de su propiedad para recibir préstamos financieros y monetizarlos con ganancias de transacciones. Se ha informado que, un catálogo de títulos pierde un estimado 11.4% de su valor Worldwide se compone de un portafolio de más de 100 canales dirigidos a niños, toda la familia y de entretenimiento, y/o de señales disponibles en 166 países/territorios, en 34 idiomas, que generan ganancias significativas y crean conciencia de la marca”. Uno podría pensar que el mayor desafío para los Estudios americanos sería el negocio de la TV doméstica, sin embargo evoluciones recientes han mostrado lo contrario en todos los niveles: broadcast, sindicación y digital. Y si el Estudio posee también una network, agrega a estos pluses los ingresos por redifusiones. Para los Estudios, el negocio de la sindicación y las networks representan los motores que alimentan sus fábricas de contenidos. También son los conductores para producir contenido de alta calidad que generan mucho dinero a nivel internacional y permiten a las networks americanas y sus afiliadas locales percibir ingresos por las retransmisiones realizadas por operadoresde cable, satélitey telecomunicaciones americanos, y de recibir un porcentaje extra de ingresos de la redifusiones de sus propios afiliados. El mismo contenido genera efectivo en outlets americanos tales como Amazón y Netflix. Pyne de Disney explicó, “tenemos shows como La anatomía de Grey, que está disponible en iTunes como así también en nuestro servicio 24 horas después de la emisión en EE. UU., llamado ‘Hot desde USA’. Otros Estudios hacen lo mismo dependiendo de como el show es vendido a los anunciantes. Por ejemplo, con el sistema de ‘live plus tour-en vivo más cuatro días’, AC Nielsen agrega a la audiencia de la emisión del broadcast la del Video-en-demanda por cuatro días, luego de lo cual el show pasa a plataformas digitales transaccionales”. Contrario a lo que se cree popularmente, el broadcast de la televisión americana no sólo no está muriendo, sino que está prosperando. A finales de 2012-13 el primetime de CBS tenía un promedio de 11.9 millones de espectadores diarios, ABC unos 7.8 millones, FOX 7.1 millones y NBC 7 millones. Pasando al llamado ‘incierto mercado de anunciantes’, al finalizar las ventas Upfront que comenzaron a mediados de mayo, las antes mencionadas cuatro networks de broadcasters además de CW, obtuvieron compromisos de anunciantes de precompras entre los U$D8.7 a U$D9.15 billones de dólares en comerciales durante el primetime de las temporadas 2013-14 Las ventas Upfront mostraron que los canales de broadcast de televisión americanos siguen siendo una buena manera para los anunciantes de llegar y estar en frecuencia con el público y que las grandes marcas no pueden existir sin la TV de broadcast. Tal como lo explicó Kevin Reilly, presidente de FOX Broadcasting Entertainment, el reciente informe de la plataforma de Nielsen muestra que el consumo de televisión es cercano a un promedio de dos horas diarias, con 157 horas y 32 minutos mensuales por individuo. En el frente de la distribución del cable, satélite y los Telcos, según ciertas estimaciones, para el 2015 los ingresos de los broadcasters por retransmisiones se incrementará de unos U$D2.4 billones en 2012 a U$D4.3 billones de dólares. Puede que el modelo de negocio cambie hacia el streaming si los operadores de cable y satélite desdeel segundoal undécimoaño, yun7.5%desde el año 12 al 21, luego de lo cual la depreciación virtualmente cesa. Hay una ciencia para este modelo de negocio llamado “Ultimate”, una técnica única de los Estudios americanos con la cual los ejecutivos pueden estipular cuáles serán los ingresos que generará cada película o serie de TV. Los datos de “Ultimate” son actualizados mensualmente por los encargados financieros de los Estudios con datos frescos provistos por los vendedores para realizar proyecciones más detalladas. Los “Upfronts” (pre-ventas de comerciales del primetime de los broadcasters), transforman a los Estudios en máquinas de hacer dinero bien aceitadas. Sinembargo, elmotorquegeneraeldinerode los estudios americanos es su ubicuo y omnipresente aparto de distribución de contenidos, que incluye distribución internacional y doméstica (esta últimageneralmentereferidacomo‘Sindicación’), canales internacionales de cable y satélite que últimamente tienden a estar en manos de un sólo ejecutivo, tal es el caso de Steve Mosko en Sony Pictures Television; Armando Nuñez en CBS Television Studios; Ben Pyne en Disney-ABC; Jeff Schlesinger en Warner Bros.Television y Dennis Maguire en Paramount Pictures. Solo Fox y NBCUniversal mantienen el modelo tradicional de estructuras separadas para lo doméstico y lo internacional. Disney fue la primera en integrar la distribución de programas. En 2007 puso sus diferentes unidades dedistribuciónbajoun sólogrupo, “para hablar con una sola voz, tener una sola visión y una sola agenda”, explicó Ben Pyne, presidente de Global Distribution en Disney Media Networks. En Sony Pictures, las divisiones de distribución de programas y canales han sido integradas desde 2008 bajo Steve Mosko. CBS integró la venta de sus contenidos en 2012, seguida por Warner Bros en 2013. La distribución internacional y el negocio de la primera pasada doméstica (first run, sindicación) proveen a los Estudios la estrategia a corto plazo (obtener flujo de dinero), mientras que los resultados a largo plazo son generados por la sindicación fuera del sistema. Por ese motivo los ejecutivos de los Estudios son reacios a comparar ganancias, ya que cada división tiene diferentes auges financieros. Por ejemplo, los ingresos internacionales de una network suelen aparecer de inmediato, mientras que la división doméstica debe esperar cuatro años para que el ingreso neto sea contabilizado. El modelo de negocio para la ‘primera pasada’ sigue siendo: efectivo más un barter con algunos elementos de ganancias compartidas, y en ese sentido, si el show tiene una buena performance por sobre lo esperado, habrá un ingreso extra para el distribuidor. Los géneros de ‘primera pasada’ son Game-shows, shows de juzgados, shows de entrevistas y tabloides tipo noticias/magazines comoTMZyET. En Fox han dicho que la división Internacional de TV de Mark Kaner cierra ventas por unos U$D2.3 billones de dólares al año. Sony Television es responsable de más del 50% de los U$D450 millones de dólares de ganancias de Sony Pictures Entertainment. Se ha reportado que cada uno de los 124 canales de Sony en 159 países genera unos U$D1.5 billones de dólares al año. Ben Pyne de Disney comentó: “Disney Channels La economía de los estudios (Continuación de la página 13)

January 2014 16 abandonanlasnetworksenfavordeprogramación original a ‘la carta’. Después de todo se espera que se incremente ver programas por la vía digital y que esta manera supere potencialmente la distribución tradicional. Tal como lo remarcó Les Moonves de CBS Corp., la televisión por network no está muriendo, “simplemente está cambiando... no nos importa donde miran los shows”. Sin embargo, en el mundo del streaming, el juego se está desplazando hacia el terreno legal de las networks. Recientemente, las networks de broadcast americanas han ganado en la corte un primer round contra las compañías que transmiten por Internet las estaciones locales, sin su permiso o compensación. Es por ello que Sony Pictures no posee una networkdebroadcastenUSA,segúnlaapreciación de John Weiser, presidente de la distribución de TV en USA, “esto provee una ventaja competitiva, dado que vendemos productos a todos los compradores y maximizamos nuestros ingresos para nuestros productores”. De igual manera, Steve Mosko, presidente de Sony Pictures Television, actualizó un informe anterior: “hacemos programas para 16 networks. Ser neutrales como los suizos es de algunamanera algo bueno ya que podemos hacer negocios con todos. Lo que es atractivo para los productores, guionistas y actores es que pueden allegarse hasta nosotros y nosotros saldremos a vender su producto a la mejor network posible”. Sin embargo, recientemente Sony Pictures Television (SPT) Networks lanzaron getTV, un nuevo canal broadcast de televisión digital que emite películas de la era dorada de Hollywood. Principalmente la programación proviene del catálogodeSonyPictures, conmásde3500 títulos. Es el tercer canal del cual Sony es dueño por completo en USA, luego de Sony Movie Channel y Cine Sony Television. Los tres canales son gerenciados por Superna Kalle, Vicepresidente de U.S. Networks, SPT. getTV es acarreado por repetidoras del Grupo de Televisión Univisión en 24 mercados lo que cuenta casi el 44% del mercado hogareño de USA, representando más de 50 millones de hogares. Incluso en el altamente competitivo mercado del negocio de la sindicación, los Estudios ven un futuro brillante. Sin duda, para algunos Estudios, el mayor desafío es la necesidad de (proveer) más productos, especialmente películas y shows de TV. Según John Weiser de STP, en términos de ventajas, él ve una abanico de aperturas, dado que cinco de seis de los actuales shows en el aire podríantenermejoresraitings.Enfranjashorarias, Weiser ve oportunidades en la franja entre 9 Am y 2 PM; también algunos pocos productos pueden funcionar en el horario central y en la franja nocturna tardía. Con respecto a Disney dijo Pyne: “poseemos una robusta sindicación en la primera pasada en todas las franjas horarias”. ArmandoNúñez,presidenteyCEOdeCBSGlobal Distribution Group comentó, “estamos lanzando el ArsenioHall Showpor lo que claramente vemos una oportunidad de programación original en la franja tardía de la noche. Los canales nos han dicho que están buscando alternativas para sitcoms fuera de las networks, por lo tanto es algo que estamos investigando. La franja horaria especial dramas y comedias, dejando un espacio pequeño y reducido para la importaciónde nomás de unas cuantas horas semanales de películas, documentales y algo de dibujos animados. La mayor atención está puesta ahora en el explosivo mercado de la TV paga, que ha crecido asombrosamente en un 30% anual en los últimos tres años, llegando a 17 millones de subscriptores en junio de 2013. No es mucho, considerando que Brasil posee más de 55 millones de hogares, pero es el mercado más grande de Latinoamérica y para el caso, cuenta con más espectadores que Francia, Canadá, Italia o España. Este crecimiento ha sido acompañado por la nueva Acta de TV paga, conocida como Ley 12.485/11, que tiene dos diferentes efectos: uno de ellos, desregula la distribución en el mercado, permitiendo a las empresas de telecomunicaciones competir con el mercado de cable-operadores. También facilita a nuevas compañías, tales como las ISP de Internet, iniciar sus operaciones de cable. El efecto inmediato, la telefónica Embratel sobrepasó a Globo, la compañía de cable más grande del país, en la cuota del mercado de la Net. Actualmente está expandiendo su network de 200 a 300 ciudades. Gigantes de las telecomunicaciones como Claro y Oi están invirtiendo en este negocio (Oi acaba de alquilar la capacidad total del satélite SES-6, lanzado en junio) y se espera que Dish se sume próximamente, todos compitiendo contra el actual líder de la TV directa, Sky (DirecTV). Por otro lado, el ActadeTVpaga introdujo cuotas parael contenido local. Estableciendoqueun tercio de los canales ofrecidos en un paquete deben ser brasileros (canales de noticias y deportes no son tomados en cuenta). Esto dificulta a cualquiera que desee ingresar al mercado con nuevos canales. La ley también fuerza a todos los canales a transmitir un mínimo de 3.5 horas semanales de contenidos de producciones brasileras independientes en horario central. Esta tampoco es una gran noticia para aquellos tratando de vender contenido internacional a las cadenas locales. Al mismo tiempo, la ley crea un fondo de dinero provistopor las compañías de telecomunicaciones que deviene de un impuesto por cada nuevo teléfono vendido. Este fondo, el FSA (Fundo Setorial do Audiovisual), cuenta actualmente con casi U$D500 millones de dólares para ser usados en la producción local independiente. Esta es una gran oportunidad para los productores internacionales, dado que este dinero también puede ser usado para financiar coproducciones. Por lo tanto, desde laperspectiva internacional, la nueva ley ayudará a Brasil a hacer crecer su mercado, lo que es buenas noticias para aquellos interesados en hacer negocios en el país. Pero esto tiene un precio, y es el espacio reservado en las grillas de programación al contenido local. Hay muchas oportunidades, generadas por los eventos deportivos que se acercan (la Copa del Mundo FIFA en 2014 y las Olimpíadas en 2016) y por el financiamiento público disponible para la producción de contenido original. Este es definitivamente el lugar para estar en lo próximos años. André Mermelstein es el director editorial de Converge, que publica Tela Viva, la revista líder de broadcasting y producción en Brasil. También está al frente del Foro de TV de Brasil. Por André Mermelstein de día también continua proporcionándonos la posibilidad de hablar de game shows y shows de juzgados, por lo que nos focalizamos también en el desarrollo de esa parte de la franja diaria”. A nivel internacional, “el poder del drama de TV americano incrementa sudominioanivelmundial”, explica Keith LeGoy, presidente de International Distribution en Sony Pictures Television. LeGoy ve crecimiento en todos los aspectos del negocio: broadcast, TV paga, por suscripciones y digital, esto por diversosmotivos, incluyendo el mejorado mercado de publicidad, más competencia en el mercado de la TV paga y digital y el hecho de que las series de TV americanas son el principal material del primetime en los mercados internacionales. Si bien alrededor del mundo hay grupos de TV tan poderosos como los Estudios americanos, actualmente ninguno se encuentra en una posición que les permita igualar la fortaleza económica y financiera de la producción de los Estudios. Pero, predijo LeGoy, “en un futuro cercano, grandes jugadores en el mercado de la TV como TF1 y Canal Plus serán capaces de encomendar series originales en idioma inglés a los Estudios americanos, usando el mismo modelo de las networks de TV americanas”. A la inversa, Pine, de Disney “no ve que grandes organizaciones fuera de los EE. UU. encarguen pilotos para elegir series. Después de todo, tienen todos los nuevos productos americanos disponibles. Sin embargo, si esa oportunidad surgiera, estamos preparados.” En lo que hace al lanzamiento a nivel internacional, LeGoy dijo que los grandes compradores desean el contenido americano lo más cercano posible a la fecha de lanzamiento en USA. Por lo tanto ve un acercamiento entre las fechas a nivel mundial. Para Núñez, de CBS, “como resultado de la demanda global de contenidode calidad (tal como lo evidencian los sitios sin fronteras de media social y emisoras piratas), estamos ofreciendo a nuestros licenciatarios la oportunidad de programar nuestras actuales series basándose más y más en un ‘inmediato después de USA’, o un broadcast tipo ‘día-y-fecha’. El punto central de ‘inmediato después de USA’, es que balancea el mercado de la piratería local frente a una promoción efectiva, y la entrega de una versión adecuada”. Pyne dijo que él “no prevee el colapso de las ventanas, aunque cada vez (las emisiones) son más cercanas. Tenemos series que son emitidas simultaneamente con su lanzamiento en USA. Por ejemplo Lost fue emitida la misma fecha en conjuto en 64 países. Muchas premieras internacionales de S.H.I.E.L.D. tuvieron lugar cerca del lanzamiento en USA el mes último. En algunos casos, nuestros shows son exhibidos en el exterior antes de llegar al aire en América”. Esta estrategia ha beneficiado también a los Estudios americanos de otras maneras, ya que se ha percibido que la piratería declina cuando son ofrecidas alternativas legales. Los consumidores en todas partes del mundo una vez que el material está disponible en USA, buscan fuentes ilegales si el contenido no está disponible legalmente. Por Dom Serafíni La economía de los estudios (Continuación de la página 14) (Continuación de la página 13) Brasil: Un nuevo paisaje de TV

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