Video Age International June-July 2009

BY DOMSERAFINI Perhaps in response to FOX’s late-May Upfronts this year, NBC introduced the “Infronts,” an early-May primetime commercial bidding process in New York City. In fact, NBC started selling commercial time as early as last January, an initiative it called the “Superfronts.” And while the other U.S. nets followed FOX’s lead with their own Upfronts, televisionadvertising clients like Unilever were devising “reverse Upfronts,” where brand managers were charged with researching new TV promotion ideas. In other words, the U.S. TV industry couldn’t have found a more convoluted way to sell the networks’ commercial inventory this year. The late-May Upfronts meant that in Los Angeles, U.S. studios had to screen pilots selected by the nets through the Memorial Day holiday weekend (May 23-25), a period normally devoted exclusively to barbecues and the readying of summer homes. The reduced number of buyers (1,100 versus 1,400 last year) was mainly a result of the current recession. However, some last-minute dropouts had entirely different reasons for canceling. A few Japanese companies, for example, withheld their attendance due to the recent flu scare. Nevertheless, according to studios’ executives, 1,100 buyers is quite “the norm.” In the past, acquisition executives that were flush with cash would come to the L.A. Screenings from all over the world just to be in Hollywood, bask in the studios’ hospitality, rub elbows with the stars and have fun at the parties. With international networks cutting budgets, such extravagance has been eliminated and only the minimum number of programming personnel were shipped to the L.A. Screenings. Regarding pilots, this time around, the studios didn’t have to contend with a disastrous screenwriters’ strike, which crippled production last year. Therefore, there was a noticeable increase in the number of pilots commissioned by the nets (75 versus 54 in 2008). Even so, in the face of bleak advertising prospects, cost considerations affected some new series’ artistic and advertising values. It was reported that in some cases, networks asked production companies to reduce their license fee by up to 20 percent, which resulted in a reduced talent salary. Below-the-line savings were considered as well, such as shifting to multicamera shooting instead of singlecamera production. According to The L.A. Times , ultimately, upfront sales will be down 15 percent from last year, reaching $7.4 billion for broadcasters’ prime time TV commercials. Whatever commercial time inventory remains will be sold later in the season in what’s known as the “scatter” market. In the past, “scatter” was a hot commodity: being scarce, it demanded more money. But if the economy doesn’t improve, the inventory left unsold could become a problem. On the other hand, if the economy improves and a net finds itself with a hit show, the scatter market could bring real premiums. Last year the combined Upfronts for the broadcast nets, cable nets, syndicated shows (mostly barter) and Spanish-language TV generated about $20 billion. This time around, however, ad agencies weren’t satisfied with just guaranteed “numbers” (ratings). Rather, “targeted reach” became the name of the game at the Upfronts. In any case, broadcasters can’t complain: after all, it has been said that, collectively, they harvest 70 percent of TV ad revenues with just 40 percent of primetime viewership. Overall, the U.S. networks picked up a total of 50 new series for their 20092010 primetime season, with a mix of 15 comedies, 29 dramas and six reality shows. With 10 pilots greenlit, Warner Bros. graduated as the studio with the largest output. NBC increased the number of comedies in primetime, primarily with The Jay Leno Show, because, as NBC’s own promotion touted, “If you’re happy, we’re happy.” With The Jay Leno Show, NBC will reportedly be saving about $50 million a year for the hour program, but it could end up costing the net $100 million a year in lost ad revenues. It was back to the future for ABC: out of the 11 new shows it picked up, eight are produced outside its Disney Studios. Before vertical integration, all U.S. TV networks eliminated their risks by farming out production, picking only the best and returning the duds. According to RTE Ireland’s Dermot Horan, who was seen at the Century Plaza checking out Canada’s E1 Entertainment’s The Bridge(for CBS), this year there are three major trends: “CW is back to WB days targeting teens,” others are favoring medical shows, and many are offering high-concept shows, such as Disney’s Flash Forward and NBC’s Day One . As most buyers, Horan would not divulge his picks for fear that the studios would increase their license fees. At the Century Plaza and Intercontinental hotels in Century City, Los Angeles, 73 companies (studios and indies) exhibited along with a few distributors such as RHI, Lionsgate, Canada’s Minds Eye and India’s ZeeTV, who made reservations directly with the hotels (rather than specialized agents) and therefore did not get suites assigned in time to be listed in VideoAge ’s official “L.A. Screenings Guide.” Last year, there were 81 independent companies exhibiting. With 62 exhibitors, the Century Plaza returned as the dominant venue for indies, but its future as such was put into doubt by reports that it will be demolished and replaced with a condominium. From a recreation standpoint, only Disney staged its traditional “Upfront” party — on its lot on May 24. Among the indies, Venevision and Telefe threw parties –– the latter with a great burlesque show –– while Flor Latina gave a luncheon and Telefilms accompanied its screenings with refreshments. The traditional telenoveleros party was V I D E O • A G E JU N E 2 0 0 9 14 L . A . S c r e e n i n g s R e v i ew Getting Ahead of the Game Delays Indies’ Business Televisa’s Mario Castro (left), Carlos Castro (center) and their team Producer Ned Nalle, Legend of the Seeker’s Craig Horner, Disney’s Ben Pyne, Legend’s Bridget Regan CBS Studios International’s Armando Nuñez The stars of Dos y Dos at the Century Plaza Hotel Record TV’s Delmar Andrade and Edson Mendes (Continued on Page 16)

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