V I D E O • A G E JU N E 2 0 11 12 The big news at this past L.A. Screenings was either the money invested by both the studios and the networks, or the large number of pilots commissioned, which in effect means the same thing. As an example, Comcast has invested $200 million in programming development this year for its NBC, and an additional $100 million for its cable networks. The group has commissioned 23 pilots. This from a company that just two years ago was planning to do away with pilot season. There are also many subplots to this news report, but let’s start with the pilots. A total of 88 pilots were commissioned by the big broadcast TV networks and an additional 15 by the large cable nets. This represents a 15 percent increase from last year. By doing the math described below, we can see how the new season was a $240 million proposition even before it began. Of this amount, $100 million comes from the TV outlets, and $140 million from the studios. At the Upfronts, held in New York City prior to the L.A. Screenings, the major broadcast TV networks first cancelled 31 shows, then ordered to series 43 pilots, including those for midseason and back ups. Going back to the costs of the pilots, these vary drastically, especially if pilots are produced for broadcast networks or cable channels, so these numbers represent averages. Plus, many variables exist that would change the economic dynamics, like participation back to the network or cable channel, making it a co-production with the network or cable channel and having an 800-pound gorilla show runner/executive producer, etc. A network prime time one-hour drama pilot costs $3.5 million of which $1.5 million comes from the net’s license fee. A half-hour network sitcom pilot costs $1.25 million, minus the $500,000 net’s license fee. Cable is much cheaper, depending on the cable channel, and utilizing special effects, one can probably expect costs to be 40 to 60 percent less in each category. Considering the 25 drama and 18 comedy series picked up by the broadcast nets, studios are looking at deficits to recoup on the international market in the order of $1.2 billion for a full season (22 episodes). Also news is that broadcast networks have pushed for new series with broader age appeal. This is because marketers are now focusing on those 55 and up. Previously, advertisers and therefore TV nets based their strategy on viewers 18-49 and 25-54. The only net that catered to older viewers was CBS with their view that all age groups count. Today 35-64 has become the new target since, according to the U.S. Bureau of Labor Statistics, people 45-64 have the highest median weekly earnings of any age segment, thus becoming the ideal consumers. In addition, the median age for the audience for a broadcast network is now reported to be above 45, with FOX at 45.4 (up from 41.5 in 2006), NBC at 50.1 (from 48.5), ABC at 52.3 (from 47.4) and CBS at 56 (from 53). Another trend that will please international buyers is that studios came to the realization that “in your face” style of product placement in TV shows can generate “cognitive rejection,” which in normal parlance means that viewers reject intrusive branding, and therefore such placements are no longer in plain view, but more subtle. The L.A. Screenings were events for both the small and mid-size companies as well. The mini-majors set a record with seven exhibiting at the Century Plaza Hotel and two in their L.A. offices. Including the telenoveleros and the various indies, a total of 76 companies were actively screening in L.A.: eight more than last year. In terms of product, the telenoveleros introduced an unusually fewer number of new telenovelas, but business was reported to have been done by all indies during the Latin Screenings, which preceded the studios’ pow-wow. The overall number of buyers remained stable at 1,500 with an increase registered only from digital outlets, especially from Netflix, which this time sent 10 buyers, versus three in 2010. For many of the international buying contingent these Screenings offered quality and quantity rarely seen in recent times. The only criticism was that screening rooms (especially at Warner Bros.) were kept at very cold temperatures in order to keep buyers awake during the More Pilots, More Expenditure, More Elders, More Distributors L . A . S c r e e n i n g s R e v i e w Sony Pictures’ Steve Mosko, Oliver Platt star of SPT’s The Big C, Keith Le Goy Record TV’s Delmar Andrade, Turner’s Monica Sufar, Record TV’s Edson Mendes, Turner’s Enrique Iteredia. 20th Century Fox’s Marion Edwards, Mark Kaner NBC Universal’s Belinda Menendez
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