In This Issue: MIP’s Comin’ German Drama Studios Go EST Funny Canadians THE BUSINESS JOURNAL OF FILM, BROADCASTING, BROADBAND, PRODUCTION, DISTRIBUTION MARCH/APRIL 2008 VOL. 28 NO. 2 $9.75 ® www.videoage.org BY DOMSERAFINI Much attention has been paid to the fact that Los Angeles lost up to $23 million a day during the Hollywood writers’ strike. During those trying times, consideration was also given to the L.A. Screenings –– would the studios hold them or not? If the studios opted to cancel or even postpone the L.A. Screenings, the strategic consequence would have been to reinforce the role of MIP-TV (and indeed the market organizer was readying for such an eventuality) and to change the start of the market calendar year, which traditionally starts with the L.A. Screenings and ends with MIP-TV. Naturally, the studios would not have made such a decision unilaterally, since L.A. Screenings in Dollars & Sense For Los Angeles (Continued on Page 58) (Continued on Page 50) BY BOB JENKINS For a man who has been married three times and changed nationality once, Rupert Murdoch seems strangely keen on dynasty. And with a brood of six children, one might be forgiven for thinking that founding one would be a piece of cake: as simple as founding the News Corp media empire. But, as in the eponymous soap opera, dynasty, it seems, can be a tricky thing. In fairness to Rupert, it has to be said that, although strictly true that there is a field of six, it is one that can swiftly be narrowed to three. Prudence, his daughter from marriage number one, has always eschewed the limelight, and shown little interest in the family’s media empire, and two more of the offspring are the result of his third union, of just nine years, with Wendi Deng, and so are a tad young to be vying for senior positions in the world of media. Which leaves Lachlan, Elisabeth and James, the fruit of his middle marriage to Anna. And for years, many have speculated as to which Rupert would anoint as his successor. Murdoch Flock Builds Biz Blocks Africa: TV’s Last Frontier. DISCOP Africa Is Ready BY DAVID SHORT There’s a country that’s more than twice the size of California with a GDP of $300 billion, has one of the largest oil reserves in the world, and has a population of 135 million who own over 32 million mobile phones, but has only three TV stations — two of which are state-owned. Can you guess where it is? (Continued on Page 52) (Continued on Page 56) BY ERIN SOMERS “Pilot season is [the networks’] research and development, and drastically reducing it would be a self-defeating move.” This was a statement made by Patric M. Verrone, president of the Writers Guild of America (WGA) West, regarding the negotiating tactics used during the Hollywood writers’ strike, which finally ended in February. The writers’ union is divided into the New York City-based WGA East representing 3,770 members and headed by Michael Winship, and Los Angeles’ WGA West with 7,627 members. The WGA struck against the U.S. Alliance of Motion Picture and Television Producers (AMPTP), which basically represents the interests of the studios –– even though its official membership encompasses some WGA’s Patric M. Verrone Assesses The Writers’ Strike WGA President Patric M. Verrone FME & NI TRAT E F I LMS PRESENT A JUL I EN T EMPL E F I LM See the legendary Pistols at their best, capturing their live “30th Anniversary Never Mind The Bollocks” show as they run through all their classics including Anarchy in the UK, Pretty Vacant, and God Save the Queen Extra material includes The Knowledge - an 80min documentary giving an unprecedented insight into this iconic band. Filmed in HD and 5.1. Also available on Blu Ray www.fidtv.com Log on to a world of entertainment Visit us at NATPE: Stand No. 947 Mandalay Bay Convention Center Las Vegas, NV 89119, USA E: fidsales@fremantlemedia.com E: videodvd@fremantlemedia.com
Alongside returning successes like the phenomenal American Idol and the star-studded sessions of Live From Abbey Road, FremantleMedia Enterprises’ 2008 music programming is packed with outstanding performers. From the red carpet glamour of The Brit Awards and the virtuoso performances of The Classical Brit Awards, to films like The Night James Brown Saved Bostonand concerts like The Sex Pistols – There’ll Always Be An England, to junior crooners in reality showRock The Cradle, there’s something for every audience. OUTSTANDING PERFORMERS
For further information, contact us at MIPTV: FREMANTLEMEDIA ENTERPRISES FremantleMedia Village Stand RB1, Riviera Beach, Cannes T: +33 (0)4 92 99 8912 www.fidtv.com Log on to a world of entertainment
V I D E O A G E • N o. 2 • M a r c h / A p r i l 2 0 0 8 Cover stories: An Italian-American quakes Hollywood: WGA’s Patric M. Verrone Assesses the Writers’ Strike. L.A. Screenings is more than moneymaking appointments for the studios. For Los Angeles, it also means mucho dinero. Africa is television’s last frontier and DISCOP Africa is ready to prove it. Murdoch family values: Pay one and get a total of four — but not for free. 4. World. California, Italy, Japan, UAE. 12. Book review. Star power in Hollywood’s Golden Age. Compare it with today’s age. 14. Company profile. CinemaVault is big on the fact that it likes to be small. 16. Canada’s funny bone. But to tickle it, one has to go south. 18. Ethnic TV — no longer dirty words. 20. Euros to make dollars see green. 22. Farrell Meisel explains how Poland is a dynamic TV market 24. The drama of German TV drama makes pundits cry. 26. Technology: Getting high on hi-def. 28. Hollywood turns EST after profits went south with new media. 30. Every body part of an actor can be monetized. 32. NATPE review. Moving with the times: from show business to shoe business. 38. Berlin film market report. Call it Berlinale, but it could just as well have been AFMnale. 44. MIP-TV preview. Expect lots of action, business and some reaction to the latest events. 48. Trade advertising at TV markets such as MIP is 50 percent good. At least according to Bob Jenkins. Which 50 percent is as yet unkown. 54. Dermot Horan plays the “What if” scenario had WGA’s strike continued into the spring or summer. Plus, what’s left of TV pilots. 60. Hollywood rewritten. The calm after the storm. Assessing post-strike damages. 62. News about fairs, conventions and conferences worldwide. 64. My 2¢. Why Canadians are funny and others are not.
Petry Chairs ATAS Foundation Jerry Petry, executive vice president, Administration, NBC Universal Television, West Coast, has been voted chairman of the Academy of Television Arts & Sciences Foundation. Petry was elected to the volunteer position by the Foundation’s Board of Directors at a December 3 meeting. He will serve until the end of 2008. “The Television Academy Foundation is one of the most important historical and educational entities in the business today,” said Petry in a statement. “And with the rapid changes in technology and new media occurring in the television business, it is critical that we keep ahead of the curve and, at the same time, educate and guide the next generation of leaders in our field.” programs, and focuses on using the history and artistry of television to preserve the past and guide those who are the future of the telecommunications industry. Petry is a media veteran with more than 30 years of experience. He’s served as evp, Administration, NBC Universal TV, West Coast, since April 2006. Toshiba Quits HD-DVD Battle Japan’s Toshiba Corp has officially withdrawn from the highdefinition DVD biz, conceding defeat in a vicious format war with Sony. In February, the electronics giant announced that it would no longer develop, produce or sell HD DVD disc players. In doing so, it paved the way for Sony’s Blu-ray format to become the standard for high-def DVDs. During a heated two-year battle, Sony and Toshiba each tried to persuade Hollywood studios to release movies in their respective formats, and to convince game console makers to use their respective disc drives. The conflict was reminiscent of the battle fought between Matsushita’s VHS format and Sony’s Betamax for VCR control during the 1980s. The death knell tolled for HD DVD when Warner Bros. and U.S. retail giant Wal-Mart both recently opted to back Blu-ray. Toshiba halted all production of HD DVD players at the end of March, but will continue to offer customer support to the approximately 1 million buyers of the device for years to come. While no official figures have been released, some analysts have said that Toshiba stands to lose hundreds of millions of dollars by dropping HD DVD. That would be a huge blow for many companies, but Toshiba should recover quickly. The firm had $60.3 billion in sales last year. WB Sidesteps TV Networks Warner Bros. TV president Bruce Rosenblum recently told a group of California’s Stanford Law School students that studios like his will soon bypass broadcast TV networks using broadband and cellular, and go directly to consumers with content. A first glimpse of this new world he hinted at can be viewed in Warner’s growing online effort, he said, noting that distribution deals with Fox and AP R I L 2 0 0 8 YOUR GATEWAYTO LATINAMERICA. s Access to the Latin American market at the most important event in the region. s Huge potential for business deals: in 2007 the exhibition area was completely sold out and welcomed representatives from more than 20 countries around the world. s 2X the exhibition space available, with all the infrastructure required. s Participation by key industry names for global companies. s The best networking opportunities and the biggest showcase for your projects in the southern hemisphere. s International speakers in panels, debates, “30 Minutes”, pitching sessions. s Massive attendance: more than 1,000 people in 2007, including professionals from top local and global broadcasters and pay-TV channels. s The entire package comes gift-wrapped in a warm, hospitable atmosphere only Brazil can offer. The right event at the right time in the right place. Seize this excellent market moment to guarantee your presence at the9th Forum Brasil. Your best program airs here. w w w. f o r u m b r a s i l t v. c o m . b r June 3rd - 5th, 2008. São Paulo, Brazil. Exhibition and conference: June 4 & 5. More Info: (+5511) 3138.4660 info@convergecom.com.br Promotion Realization BronzeSponsor GoldSponsor Support MediaPartners TableTopPlusBronze (Continued on Page 6) Jerry Petry, chairman of the Academy of Television Arts & Sciences Foundation The non-profit Academy Foundation sponsors educational and archival
NBC Universal’s Hulu.com (an online VoD service) are imminent. Warner Bros. is also in the process of creating its own ad-supported channels. An animation channel (working name T-Works) will go live this month under an unspecified brand. Studio 2.0, which will create short videos for broadband and mobile, is working on more than 20 projects, at a total cost of less than what it takes to make an hour-long broadcast network drama. Rosenblum went on to say that by cutting out the networks, studios will make more money than they have in the past. However, he cautioned, Warner Bros. will have to spend a lot to make itself the brand that viewers connect with a show. Book Exposes Spielberg’s Affair Valerie Bertinelli’s new book, “Losing It: And Gaining My Life Back One Pound at a Time” (Free Press) chronicles much more than just the actress’s battle to lose weight. In her new autobiography, the onetime One Day at a Time star gives candid accounts of her shaky marriage with rocker Eddie Van Halen and a long-ago romance with director extraordinaire Steven Spielberg. In the book, Bertinelli, who has a son, Wolfgang, 17, with ex-husband Van Halen, revealed that she met Spielberg when she read for a part in his Raiders of the Lost Arkmore than two decades ago. She didn’t get the part, but she did get the man. The next day, Spielberg sent flowers and a short-lived romance blossomed. She met Van Halen shortly thereafter and married him in 1981. The couple divorced in 2007. Another tidbit exposed in “Losing It” is the fact that she and Van Halen cheated on each other during their marriage. Bertinelli’s been quoted as saying that their son, Wolfgang, won’t be reading the book anytime soon. AP R I L 2 0 0 8 Bavaria Media Television is a corporate member of german united distributors Programmvertrieb GmbH. www.bavaria-media.tv MEET US AT MIPTV STAND 20.01 (GERMAN UNITED DISTRIBUTORS) BAVARIA'S BEST SHOWREEL PRESENTATION MON. APR. 7, 5:30 PM AUDITORIUM K YOUNGER THAN EVER THREE NEW YOUTH SERIES SERIES 13 X 25’ SERIES 26 X 26’ SERIES 52 X 25’ (Continued on Page 8) (Continued from Page 4) Murdoch Dishes Out DirecTV In February, the U.S. Federal Communications Commission (FCC) approved an $11 billion deal between Rupert Murdoch’s News Corp and DirecTV Group Inc. The deal will allow Murdoch to exchange his 41 percent interest in El Segundo, California-based DirecTV for a larger stake in his own media company. Former cable executive John Malone and his holding company, Liberty Media, will receive Murdoch’s shares, as well as three of Fox’s regional cable/satellite channels and $625 million in cash. In return, Malone will hand over his 16.3 percent equity stake in News Corp. DirecTV has 17 million subscribers in the U.S. and five million in Latin America. Originating in 2004, the agreement has been delayed by much red tape, as both parties are hoping for a tax-free swap. This type of exchange requires approval by both the FCC and the U.S. Justice Department. Murdoch’s aim, in buying back more of his company, is to consolidate his hold on News Corp. and streamline his assets. Some FCC officials who are against the consolidation of giant media conglomerates were reluctant to endorse the deal, and warned that both parties better abide by arbitration provisions imposed on them in 2003. At press time, Justice Department approval was still pending. Martha Stewart Buys Emeril Martha Stewart Living Omnimedia Inc. “kicked it up a notch” in late February when it bought the Emeril Lagasse franchise. The acquisition, which cost the home-making maven’s company $45 million in cash and $5 million in stock, included the rights to Emeril-brand cookbooks, television shows and kitchen products. Not included in the deal were Lagasse’s 11 restaurants and corporate office. Lagassse’s cooking show, The Essence of Emeril , was launched in 1993 on the Food Network. Since its debut, he has hosted over 1,600 shows and currently reaches more than 85 million homes daily. The franchise, which brought in $14 million in revenue in 2007, is expected to add an additional $8 million per year to Martha Stewart Living’s earnings. The deal will be closed in the second quarter of 2008.
presents these new titles at MIPTV Horror Never Cry Werewolf Romantic Comedy Watching The Detectives Riviera Hall R33 . 11 Telephone : +33 (0) 4 92 99 8854 w w w . p e a c e a r c h . c o m Contact info at MIPTV Toronto 416.783.8383 Los Angeles 310.776.7200 New York 914 .747.9300 Vancouver 604.688.3937 Drama Guantanamero Comedy Delirious
Sony, Sharp Meet To Build LCDs Sony Corp. has announced that it will take a one-third stake in Sharp Corp’s new LCD panel factory in Tokyo. The plant, which will cost $3.5 billion to construct, will be completed by March 2010. The partnership is a response to the growing popularity of flat-screen televisions, which has prompted competition between Japanese manufacturers. It is projected that worldwide LCD TV sales will double to 155 million units sold per year by 2012. To keep up with increased demand, Sony has lately had to look for alternate suppliers of LCD panels for its TV sets. In teaming up with Sharp, Sony has secured its supply of screens, while Sharp has been guaranteed a reliable buyer. After South Korea’s Samsung Electronics, Sony and Sharp are, respectively, the second and third largest manufacturers of flat screen TVs. In addition to investing in Sharp, Sony will continue to partner with Samsung for LCD screens as a way to keep its panel suppliers diverse. Apollo TV Project Out of Orbit Arbitron and TV ratings giant Nielsen Co. have put a stop to Apollo, one of the most expensive and buzz-worthy market research programs in history. The program’s sole purpose had been to examine how exposure to different media and marketing approaches affects purchases by tracking consumers’ media and buying habits in a single database. Arbitron used its Portable People Meters to track consumers’ media exposure both in and out of the home among members of Nielsen’s household panel, who had to scan each and every purchase they made. But while the service attracted seven major backers (including Procter & Gamble Co.), Apollo just couldn’t seem to win enough client commitments to be able to foot the bill for a massive U.S. rollout. Arbitron and Nielsen reportedly put more than $45 million combined into the program. Procter & Gamble is said to have paid another $20 million. Ben Ammar Goes to Italy France-based Quinta Communications CEOTarak Ben Ammar has acquired control of Eagle Pictures, a leading Italian film distributor, in a deal that is part of his strategy to establish a panEuropean network supported by Goldman Sachs. This U.S. investment bank already holds significant stakes in Aurum in Spain and inMomentumPictures in the U.K. and was instrumental to CanWest Global Communications’ $2.3-billion takeover of Alliance Atlantis. The Franco-Tunisian financier, Ben Ammar, is interested in creating a “onestop shopping distribution network” for independent producers in Europe and is widely considered one of the brightest entrepreneurs in the entertainment arena. He is currently in advanced negotiations to acquire Nordic distribution company, Scanbox Entertainment, and is looking for new targets in Europe. Very few players can compete against the Ben AmmarGoldman Sachs franchise, but one could be Russia’s Gazprom Media, which owns interests in TV stations, radios and newspapers. This latest holding claims as the main objective of its activities the accumulation and development of media assets, and has access to significant liquidity for new acquisitions. Another obstacle could be presented by several Jordan and Qatari entrepreneurs, who, in the new geofinancial situation, could become main players in the entertainment industry. In the market there are signs that motion pictures are regaining their importance as an asset class to corporate finance as hedge funds and private equity houses invested heavily in this industry in 2007. For example, Dark Castle Productions, a production company headed by producer Joel Silver, was able to raise $240 million in a deal underwritten by CIT Group, a provider of commercial and consumer finance solutions with global headquarters in New York City. In recent years the listing on the stock exchange has been an important growth strategy followed by several media companies. ContentFilm plc, a British company that holds an important library of film and television assets, AP R I L 2 0 0 8 WE KNOW EVERYTHING ABOUT Every day, TV executives around the world use the most comprehensive analysis of cable network programming anywhere, to produce better programs and to buy the best programs. WWW.CABLEU.TV Know Networks Better. Pitch Smarter. (Continued on Page 10) (Continued from Page 6)
including over 2,000 hours of television and 100 feature films, should be a Harvard business case study. The company was able to grow significantly through the acquisition of certain assets of UAV Corporation and Allumination FilmWorks, and has become a leading player in Europe. By Alessandro Valentini, CEO of Dioscuri Film Group and advisor of major private equity firms in their international operations. valentini@dioscurifilm.com titles including Heroes , House , Battlestar Galacticaand Monk. “Pauline has done an outstanding job in taking our marketing efforts well beyond expectations and plays an instrumental role in our overall business,” said Menendez. “She has impeccable taste and is a master at staying ahead of the trend, providing our clients with a world-class level of support.” Poetry in Motion At Abu Dhabi TV In the 1980s, France’s Antenne 2 (now France 2) found a surprise domestic and international hit in Apostrophes , a little show about books and writers. Now, thanks to a hit show about poetry on Abu Dhabi TV, writers are back! Loosely based on the format of American Idol , Million’s Poetis the Arab world’s attempt to show the rest of the globe that it has something to offer other than oil. Now in its second season, the series has already spawned copycats, websites and tons of blog postings. In each episode, players recite a tribal form of poetry known as Nabati, which can sound incomprehensible even to Arab speakers. But within hours of the show’s debut, its website had received 11 million hits. A season’s worth of episodes (15) reportedly costs U.S.$12 million to produce, but it’s made back quickly with commercials and sponsorships. After realizing that they had a hit on their hands, the station commissioned a second poetry series, The Prince of Poets , which showcases classical Arab poetry. Famous Quotes “My son is now an ‘entrepreneur.’ That’s what you are called when you don’t have a job.” Ted Turner AP R I L 2 0 0 8 (Continued from Page 8) NBC Universal International TV’s Pauline Bohm Bohm Now SVP At NBC Universal Pauline Bohm has been promoted to senior vice president, Marketing, for NBC Universal International Television Distribution. Bohm, who is based in Los Angeles, reports to Belinda Menendez, president, NBC Universal International Television Distribution. In other NBC news, Rachel Mansson has been promoted to vice president, Marketing, for NBC Universal International Television Distribution’s international new media unit. In her new position, she will develop and implement all marketing efforts for the unit, spanning Electronic-SellThrough, VoD and SVoD, available through traditional and new platforms, including cable, satellite, digital terrestrial television, Internet and mobile. In her new role, Bohm will continue to develop and implement marketing strategies for NBC Universal International Television Distribution and its television and feature film portfolio, working closely with an international client base in more than 250 territories. In addition, she is responsible for the division’s international brand strategy and presence at all international sales markets and events, and is charged with identifying new and innovative marketing practices. Bohm manages teams based in Los Angeles and London and has worked on international marketing campaigns for
by Smeshariki Meet the Balloontoons – a hilarious group of friends, who can’t wait to explore the world together! Studio100 Media presents the animated series for 3 to 9 year olds, which took Russia by storm. With over 5.5 million viewers a day, the Balloontoons are ready to bounce into children’s hearts all over the world. Genre: Animation Format: 208 x 6.5’ Status: Season I: 104 x 6.5’ completed, Season II: 104 x 6.5’ completed by 2009 COME & SEE US AT MIPTV 2008 BOOTH AZUR.07 Studio100 Media was founded in 2007 as a global services and rights company in the family entertainment business. Based in Munich, Germany, it is a 100% subsidiary of Studio100 Belgium. STUDIO100MEDIA N.V. & Co. KG General Manager: Patrick Elmendorff tel.: +49 (0)89 54 34 478-0 | e-mail: info@studio100media.com www.studio100media.com
The concept of celebrity has greatly evolved since the golden age of the Hollywood studio system. The days of high glamour, when actors were elevated to demi-god status, have long since ceased to exist. Today, thanks to the ubiquity of the paparazzi, the shamelessness of gossip blogs and a culture that gorges on scandal, the mystique of Hollywood stars has practically been eliminated. In The Star Machine (2007, Alfred A. Knopf Publishing, 586 pages, U.S., $35), author Jeanine Basinger (no relation to actress Kim) provides an in-depth look at fame before the Internet put the minutiae of movie stars’ everyday lives on display. The book highlights the differences between the way stars are portrayed in the media today — more or less how they really are — and how they were presented by the studios in the 1930s and ’40s — polished products for public consumption. But although photographs and films depict Hollywood’s golden age as a much classier era, before the advent of bloodthirsty tabloids, The Star Machine suggests that things have never been easy for those in the spotlight. Basinger is the author of several other books on the early days of Hollywood such as Silent Stars and American Cinema: One Hundred Years of Filmmaking, and her knowledge of industry miscellany is staggering. The book is brimming over with case studies about stars, thoughtful analyses of films and detailed explanations of the business side of the movie world. It begins by introducing the studio system. By the mid-1930s, the major studios (MetroGoldwyn-Mayer, Warner Brothers, Twentieth Century Fox, etc.) had movie-making down to a science. A movie studio in the golden era was, according to Basinger, “a well-oiled machine with everything needed to make movies right on the lot.” They churned out dozens of films a year, with an efficiency that is unheard of today. The movie star was vital to this system. Though stars were treated simply as well-paid employees, they were the key to marketing films and selling movie tickets. And because the studios were making such a profusion of films (678 titles were released in 1934 and 477 in 1946), they needed a lot of stars. Hence, the inexact process of the “star machine” was adopted. In the beginning of the book, Basinger attempts to pinpoint what exactly defines a star. “A star has exceptional looks. Outstanding talent. A distinctive voice that can be easily recognized and imitated. A set of mannerisms. Palpable sexual appeal. Energy that comes off the screen. Glamour. Androgyny. Glowing health and radiance. Panache…And of course she has that something.” With such a formula in mind, the studios set out to transform ordinary people into box office legends. The first step was to find able-bodied, enthusiastic youngsters eager to hit it big. From Broadway to small-town beauty pageants, scouts left no stone unturned in their quest for “raw material.” Because studios were confident that acting could be taught and singing could be dubbed, talent was secondary to looks. Once studios heads assessed the potential of each new “property,” the would-be stars were given makeovers. Beauty experts capped crooked teeth, adjusted hairlines and implemented strict diets. Makeovers were just one of the many ways studios stripped individuals of their identities. Name changes were also an important part of the star machine assembly line. Up-and-coming stars had to have names that sounded glamorous but were generically American enough to go over well with the public. Basinger catalogues the most amusing examples of such changes: “The tall and exotic beauty Cyd Charisse had the comedy handle of Tula Finklea. Cary Grant was Archibald Leach — no elegant man of your dreams there — and Robert Taylor, a pretty man always striving to seem more masculine, carried the original name of Spangler Arlington Brugh.” Stars were allowed no say in their new names, and in fact, a contest-winning fan chose the moniker Joan Crawford for celebrity-hopeful Lucille La Sueur. Once stars were coiffed and named to satisfaction, the studio began to try them out in bit roles. If they did well, they were promoted to larger roles, and so on. On the way up the fame ladder, the studios exercised further control by creating new personal back-stories for them and having them printed in fan magazines. Such stories often had no relation to reality. MGM, for instance, made Clark Gable an avid sportsman and hunter, though he had never ridden a horse, and claimed to have discovered Lana Turner sitting on a drug store stool, though she later confessed that she could not recall the meeting. Insider anecdotes like these make up the best portions of the book. However, readers who are not classic movie aficionados may find themselves lost amongst the elaborate discussions of films and stars that have faded into obscurity. Along with the gossipy asides, the parallels Basinger draws to the stars of today are of greatest interest. Despite the hefty paychecks, constant work and having their public images micromanaged by the studios, stars still got into trouble. Lana Turner went through a slew of husbands and was eventually pigeonholed into “harlot” roles. Tyrone Power had a similarly turbulent personal life and died young, and Gail Russell became a notorious alcoholic. Basinger stresses that the studio responses to these star machine “malfunctions” were crass. Studio executives “concentrated only on success and didn’t waste much time trying to explain or analyze failure.” Even in the so-called golden age of Hollywood, stars that seemed to have it all cracked under the pressure of fame. However, unlike today, their dirty laundry could not be displayed on TV and the Internet with moment-tomoment updates for all the world to see. In fact, studios controlled much of the pop-media. What went into the fan magazines was subject to their approval. The book suggests that although the studios were demanding of stars, and often treated them like “properties” rather than people, they also did much to protect them from the public. But as history tells us, the studio system couldn’t last and, neither could the public’s idealized perception of Hollywood glamour. ES V I D E O • A G E AP R I L 2 0 0 8 12 B o o k R e v i e w Star Power In Hollywood’s Golden Age
BY LUCY COHEN BLATTER With over 300 film titles and 800 buyers i n t e r n a t i o n a l l y , CinemaVault Releasing is a fixture on the TV and film market scene, in addition to both the big and small screens worldwide. In 2008 alone, the company will attend 17 markets and festivals around the globe, one of which will be this month’s MIP-TV. “We go to MIP-TV to meet with the tremendous range of buyers that are present,” said Caroline Stern, a senior Sales executive at CinemaVault, pointing specifically to a “sizable number of video buyers” with whom she plans to meet. But, according to Stern, a worldwide collapse of the video market, in which “the volume of acquisitions in territories around the world is down,” has made TV sales increasingly important to the company. Ruby Rondina, Festivals and Publicity manager at CinemaVault, said she chooses to “attend the biggest and most important festivals — Cannes, Toronto, Berlin, Sundance — in order to acquire films.” But, she added, “we also attend festivals where our films are screening in order to push the films to buyers.” Luckily, the company has plenty of arthouse and commercial films with which to lure buyers. One of the newest theatrical features in the CinemaVault catalogue, entitled Blind Date , premiered earlier this year at the Sundance Film Festival, and will be available at MIP-TV. The film, directed by Stanley Tucci, is the second part in a three-part series based on the films of controversial Dutch filmmaker Theo van Gogh, and has been co-financed by Cinemavault. The first film in the series, Interview, starring Sienna Miller and Steve Buscemi, has already been sold to Sony Pictures Classics, which released the film theatrically and on DVD in the U.S., and to various other buyers around the world, including Kinowelt in Germany and Diaphana in France. The third and final film in the series, 1-900, will be directed by John Turturro, and will begin production this spring. The company also owns rights to the original van Gogh films from which the new titles are adapted. Another new feature is Morgan Spurlock’s Confessions of a Superhero, a documentary by the director of Supersize Me , which chronicles the lives of three men and one woman making their livings as superheros on the sidewalks of Hollywood Boulevard. Arthouse films are strongly represented in CinemaVault’s catalogue, but titles range from commercial features to documentaries to family entertainment. When asked what he looks for in a film, the company’s CEO and founder, Nick Stiliadis, said simply, “quality. At the end of the day, it’s quality that will give our films longevity.” A 30-year veteran of the film business who has produced or executive produced over 30 feature films, Stiliadis previously ran a production company called S Entertainment. In 2000, he decided to concentrate on distribution, merging his production expertise with knowledge of sales to form CinemaVault Releasing. “One thing that makes us unique,” he said, “is our ability to deal with issues related to the entire process of making and marketing a film — from pre-production to distribution.” The company, which has 18 full-time employees, launched with a five-year business plan. Having exceeded expectations, the plan was revised for another five years in 2005. The company is a member of the Independent Film & Television Alliance (the organizers of AFM), the Canadian Film and Television Production Association and the Video Software Dealers Association. Though Stiliadis chose to keep the company’s base in Toronto, Canada, where he lives, aside from location, he says there’s nothing noticeably Canadian about the company. While CinemaVault does represent some Canadian titles, they’re not the company’s focus. Thanks to today’s technology, Stiliadis said, one can be a strong force in the entertainment business without being based in Los Angeles. And contrary to some reports, a company can also be a strong force without being a studio or a mini-major. “With a smaller company, you also have lower overhead, and get to try new things you wouldn’t be able to do as a larger company,” Stern said. “Plus, we have the opportunity to work with the studios,” she said, pointing specifically to a new comedy entitled Outsourced, which is described as a “comedy of cross-cultural differences with a touch of romance” and will be released by Twentieth Century Fox in Germany. “While it’s impossible to compete with the studios,” Stiliadis said, “we can augment what they’re bringing out there. For that reason, we’re always looking for real diamonds in the rough and for producers with unique visions. “Once we find them,” he said, “we work closely with them to make sure they get the maximum exposure.” V I D E O • A G E AP R I L 2 0 0 8 14 C o m p a n y P r o f i l e CinemaVault: A Small Company That’s Big in Film, TV Sales Nick Stiliadis, CEO and founder of Cinemavault Caroline Stern, senior Sales executive at Cinemavault Interviewwas sold to Sony Pictures Classics
BY DIANE L.W. BARNES Afunny thing happened on the way to the United States. David Steinberg left Winnipeg, Canada for theology school in Chicago and ended up at The Second City comedy troupe instead. Quite a leap. Or was it? Despite Canada’s disproportionately small population compared to that south of the border, the American comedy industry is filled with big names from the north. Since the mid-60s, there’s been a steady stream of Canadian comics exported south — a fact that many Americans like to keep secret. In fact, some of the biggest comedy names in Hollywood have been Canadian: Dan Aykroyd, John Candy, Jim Carrey, Tommy Chong, Howie Mandel, Dave Foley, Michael J. Fox, Phil Hartman, Eugene Levy, Rich Little, Lorne Michaels, Rick Moranis, Mike Myers, Leslie Nielsen, Catherine O’Hara, Martin Short, comedy duo John Wayne and Frank Shuster, Dave Thomas, and of course, David Steinberg, head counselor of the all-Canadian Camp HaHa. In the late 1950s, Steinberg was one of the earliest imports to the U.S. Where he went, many followed. Steinberg described the critical role that Chicago’s Second City has played: “It was Second City that started all of it. Mike Myers started there and almost everyone from Second City TV (SCTV) came from Second City. Dan Aykroyd had huge involvement with Second City. He was a big star in Toronto for a long time and then in Chicago. Basically when I was putting together The David Steinberg Showin the 70s, I gathered everyone I knew from Second City. John Candy was the first big hit and when he came to the States, he lived in my guesthouse for a year and a half. John was such an adorable person and funny all day long... just the way he was, warm and wonderful.” It was on Steinberg’s show where many Canadian comedians honed their unique impersonation style, a style that remains prevalent in today’s hit shows such as Saturday Night Live . As Steinberg related, “We didn’t start using makeup or prosthetics to identify ourselves as others but one day I remember coming to work and everyone was laughing hysterically. It was Marty Short with this big hair and white teeth just being a really bizarre character and I didn’t know who he was playing. He was doing an impression of me! He got me down so great. He used to impersonate me endlessly — they all did — but that was the first time I saw the value of something like that. They had caught the essence — it was satirically and comedically right. It was remarkable. You just got the feeling of the person and it sort of changed the way that impressionists worked after that. They were just comedians. They weren’t trying to do great impressions. They were just approach for which Steinberg has been well known, particularly during his time with the Smothers Brothers Comedy Hour in the late 60s just prior to the cancellation of the show. Perhaps Canadian comedians feel that not being American gives them more latitude to be a little saucier. It’s about having the vantage point of an outsider. As Steinberg put it, “as Canadians we get the American culture, yet we’re still Canadian. I always told everyone I was Canadian. In fact, when I was doing The Tonight Showduring Watergate, I was sort of vehement and negative. Early on, as a comedian, I was against Nixon and the audience would always be polarized. Carson would tease me at the commercial saying, ‘You know, you’re a Canuck, you don’t even vote in this country and you’re putting down Nixon!’ And it was always his little arrow he was going to stab me with.” Then there’s the notion that Canadians are naturally comical. Steinberg described his hometown friends in Winnipeg as having always been very funny. Or perhaps it has to do with their need for self-definition. “In the 50s, I always thought that Canada somehow got the worst of Britain and the worst of the States and at some point, in terms of the culture, they essentially had to create their own, and this started to come from these comedians and actors who came from Canada.” All of this, however, would be for nothing if the American industry and audiences did not welcome Canadian talent. “The States is very aware of Canadian comedians and their influence on the culture here,” said Steinberg. “If you’re Canadian, all you have to do is be good and you’re accepted. Most of these people, especially the SCTVgroup who really established the Canadian comedy culture in the States, are as good as it gets.” V I D E O • A G E AP R I L 2 0 0 8 16 C a n a d a ’ s F u n n y B o n e Comedy Tracks Link Toronto To Hollywood Two of the six comedians interviewed in the first year were fellow Canadians Mike Myers and Martin Short. While Short was brilliant, he also shared a heartfelt story of how instrumental Steinberg had been in helping to launch his career. Myers, on the other hand, saw no need for any reverence to be bestowed upon his fellow countryman. The interview had just begun when Myers asked Steinberg, “Was that your idea of a question, dickhead?” The audience roared. It was at that moment when Steinberg reflected, “This is exactly the “ If you’re Canadian, all you have to do is be good and you’re accepted. Most of these people, especially the SCTV group who really established the Canadian comedy culture in the States, are as good as it gets. Canadian comedian David Steinberg trying to satirize the culture.” Today, Steinberg is producing and hosting his third season of Sit-Down Comedy with David Steinberg, a show that gets the laughs. “The guests are like musicians — their chops are in, they’re ready to go, they’re good. I just love that it’s two comedians talking. There’s a shorthand and the audience gets to listen in. And, because the audience is there, it’s always funny. You get enough information and you get the sense of the comedy craft in action. It’s totally spontaneous.” show I want!” Despite the fact that Canadians help other Canadians get established in the U.S., a puzzling question remains: why are there so many remarkably funny people in Canada? Is it something in the snow? Has it got something to do with the canoes they paddle to work? Maybe it’s related to all that skiing they do 12 months of the year. Or in which province they were born. Curious. Another factor may have something to do with an irreverent style, an
Anew audience measurement system in the U.S. could change the way foreignlanguage TV stations are perceived by the advertising community. Global Advertising Strategies, a New York-based consulting firm that acts as a liaison between advertisers and some ethnic television stations, is developing a way to bring the Nielsen Television Ratings system to the ethnics’ unrated programs. The firm hopes that the new system, which will tally the number of viewers of certain programs, will encourage advertisers to insert ads into programs on ethnic channels, the majority of which are currently funded by cable or satellite subscription or public sponsorship. According to a study conducted in May 2007 by Global Advertising, about 200 foreign language channels operate in the U.S. –– channels like India’s TV Asia, Channel 1 Russia, Germany’s DW, Spain’s TVE, France 5, Italy’s RAI Italia and Korea’s MK TV –– representing virtually every ethnic group found in America. Indian, Chinese, Russian, and Spanish-language shows lead the pack in the amount of programming available. However, though niche programming has experienced a boom in the past few years, many U.S. advertisers are still reluctant to jump on the foreign-language bandwagon. “Advertisers don’t consider some ethnic channels because their audiences are not monitored,” explained Max Smetannikov, vice president, Corporate Development, Global Advertising Strategies. The problem is that “ethnic channels, taken individually, do not pull in enough viewers to even be rated.” Smetannikov attributes the recent increase of ethnic channels to globalization and improvements in technology. As satellite and fiber optic cabling technology have become more affordable, more foreign programming has hit the airwaves. However, he cites changing views of immigrants in the U.S. as the biggest factor in the rise of ethnic programming. “Cultural perception has changed dramatically in the U.S.,” said Smetannikov, “and immigrants are no longer expected to assimilate. They are more inclined to cling to their homelands.” In addition to cable and satellite platforms, ethnic programming is popping up on terrestrial TV. Stations like Washington D.C.-based MHz cater to the international crowd with content from all over the globe. MHz’s main channel, for example, sells airtime to foreign TV organizations such as France 24, Nigerian Television, and Russia Today. With nine affiliates in both urban and rural areas, MHz reaches about 14 percent of the U.S. population. In recent years, the growth of foreignlanguage TV in the U.S. has also been encouraged by an organization called the Ethnic Broadcasters of America (EBA). The non-profit organization was founded in 2003 by Elie Kawkabani, president of Los Angeles-based Reach Media, which offers Arabic programming packages by subscription, in addition to Italian channels. The EBA is dedicated to advancing foreignlanguage channels and programmers broadcasting via satellite and cable. Kawkabani has said his goal was to “create a forum by which [foreignlanguage channels] can pool their resources,” in order to attract mainstream corporate advertisers. Yet despite growth in the ethnic TV market, and a wealth of statistics touting the buying power of immigrants, advertisers remain standoffish. In 2000, the U.S. Census Board reported that 47 million people in the U.S. speak a language other than English at home, and that the purchasing power of these individuals will only increase. They predict that Hispanic buying power will reach $1 trillion a year by 2011, and AsianAmerican wealth will increase 434 percent. However, the absence of a ratings system remains a deterrent for advertisers. While rated programs guarantee that the advertisers get as many viewers as they pay for, programs that are not measured under the Nielsen system pose a risk. At the moment, Global Advertising estimates that around 95 percent of ethnic channels are financed by subscription. Depending on the channel and cable provider, such services cost the viewer between $5 and $30 a month. Global Advertising expects to change this trend with its ratings method, which would adapt the Nielsen Ratings System to ethnic programming. Among its many flaws, Nielsen fails to take into account what millions of non-English speakers are watching. Global Advertising plans to rectify the problem with what it calls the MultiCultural Multi-Platform Programmer Platform (MMPP). The system would not gather ratings from individual stations, as in the Nielsen system, but rather aggregate channels together by ethnicity and count them as one entity. This way, advertisers could find out which time slots and programs are most popular among Spanish speakers, for example, and insert Spanish-language ads accordingly. The plan would bring advertising to foreign-language TV, which could prove to be a multi-million dollar industry. In fact, Global Advertising’s Smetannikov projects that the value of spots on ethnic channels would quickly become comparable to those on major stations. The value of TV advertising operates on the basis of tiers. Commercials on broadcast channels are generally the most expensive, followed by major national cable carriers, smaller cable channels, and satellite at the cheaper end. “Hispanic channels, many of them broadcast and major cable, are on par with what NBC and others charge,” said Smetannikov, “meaning it’s not uncommon to see $2,500 per 30-second spot on a hit show.” For the most part, however, Smetannikov compares 30-second ads on ethnic channels to what they would cost on other specialty channels like men’s channel Spike TV. Ads on typical premium foreign language channels like Channel One Russia Worldwide would go for about $300. MHz’s general manager Frederick Thomas echoed Smetannikov’s predictions. “The specificity of the audience could really allow advertisers to target and pinpoint who they want to reach,” he said. On the other hand, networks like MHz have audiences ranging from ages 18 to 80. Thomas called this kind of audience a “thematic demographic,” because it is connected more by its global outlook and interest in other cultures than by its age or gender. “Thematic demographics definitely have a commercial value,” said Thomas. “We just haven’t found it yet.” Despite the confidence presented by ethnic stations, Smetannikov reported that the realization of the MMPP is still a ways away. Between familiarizing Nielsen Media Research and the networks with the plan and fine-tuning the system, Smetannikov and his team have their work cut out for them. “In order to get it right from an economic standpoint,” said Smetannikov, “We need support across the board from networks, advertisers and viewers.” On a larger scale, the MMPP could change the way all niche programming operates. A variety of other specialized channels could soon make the switch from subscription to advertising. Channels like The Jewish Channel, Christian station Smile of a Child TV, and LOGO, which caters to gay, lesbian, bisexual, and transgender viewers, are all currently available for $5 to $10 a month. Ad insertion on such stations, and on publicly sponsored channels, which are typically very poor, could prove mutually beneficial to advertisers, channels and viewers alike. As for the foreseeable future of advertising on niche channels, Max Smetannikov said that, “it just doesn’t make sense not to do it.” And though it may take a while, Smetannikov is confident that his company can facilitate the transition. ES (An abridged version of this feature story originally appeared in one of VideoAge’ s NATPE Dailies). V I D E O • A G E AP R I L 2 0 0 8 18 E t h n i c T V i n t h e U . S . Do 47 Million Viewers Make An Audience For Ad Men? Elie Kawkabani
dollar depreciation has definitely helped to stem runaway production costs that had taken place recently. “The most dramatic development has been the change in the value of the [U.S.] dollar versus the Canadian dollar,” said one observer, noting that he was not discounting the effect the dollar has had on Europe and other areas that are linked with the euro. “I’ve been told that foreign commercial producers in Germany, Japan, and all across Europe have come here to shoot because of the weak dollar. Producers of all types are always looking to where it will be most cost-effective,” said a former executive of the U.S. Association of Independent Commercial Producers, in a published interview. For those in Europe who now appear to be “crying wolf,” Numis Securities Limited analyst Lorna Tilbian has some calming words. For British and European companies with the right business model, exposure to the dollar isn’t necessarily a bad thing, said Tilbian. She said that European media firms Pearson, Reed and Thomson were among the most resilient in their sector, despite doing most of their business in dollars. Pearson, the education and publishing company, generates about two-thirds of its sales in America and, according to its last trading statement, each five-cent change in the average pound/dollar exchange rate for the full year would have an impact of about one pence on adjusted earnings per share. “We can live with the dollar exposure. It’s the lesser of all evils,” she said. Then, of course, there has been the benefit of a reduced trade imbalance. The U.S. trade gap shrank 0.6 percent to $56.5 billion in November 2007. That’s still a lot of money, but it’s the smallest deficit since May 2005. The numbers may help explain why the Bush Administration doesn’t seem too bent out of shape over the falling dollar, which has recently been hitting new lows on a nearly daily basis against the euro. In fact, analysts are predicting that the euro will head to $1.70 in the coming months. In a recent television interview, German chancellor Angela Merkel said: “We are pleased that Europe has a strong currency, but this obviously also creates problems for exports.” “Implicitly, the Federal Reserve is happy with a gradual fall in the value of the dollar,” said Nouriel Roubini, an economist at New York University and president of Roubini Global Economics, a consulting firm that also operates a popular economics Web site. “They’ll never say they favor a weak dollar, but the benefits to the U.S. in terms of competitiveness are significant.” Some European officials, though, are worried that the soaring value of the euro will hurt European exports. In this respect the U.S. silence has been thunderous. “I would like very much to hear U.S. Treasury Secretary Henry Paulson repeat loud and clear that a strong dollar is good for the American economy,” said Christine Lagarde, the French Finance Minister, in a published interview appearing in the financial daily, Les Echos . Rate cuts expected from the U.S. Federal Reserve, the Bank of England and the European Central Bank are likely to put further downward pressure on the dollar. “Predicting the bottom is very hard. I can’t see an end to it. It doesn’t look like there is anything holding it up,” said James Hughes, an analyst at Londonheadquartered CMC Markets. “It’s unbelievable,” he said. There are those who will say that the U.S. is purposely manipulating the dollar exchange rate for its own economic selfinterest, and are therefore introducing protectionist measures. However, if Europe deals with the strong euro by imposing specially crafted protectionist measures, it will lead to acrimonious trade disputes. In the final analysis, with the dollar being the world’s reserve currency, the U.S. seems well equipped to minimize the negative consequences of a sharp devaluation of its currency while taking immense advantage of the opportunities it creates. A big factor in this is the flexibility and adaptability of the U.S. economy, particularly of a private sector that is less fettered by regulations than its European counterpart. V I D E O • A G E AP R I L 2 0 0 8 20 D o l l a r s a n d S e n s e s Cheap U.S. Dollar A Bonanza For Hollywood Christine Lagarde, French Finance Minister “ “With a cheaper dollar there exists an increased appetite for more co-ventures, as well as licensing deals and cheaper coproductions.” In other words, said Moisseyev, American product can be obtained at a lesser cost to nonAmerican partners BY STEVEN M. SCHIFFMAN, ESQ. Since last year the euro has consistently gained against the U.S. dollar. The value of the U.S. dollar is a global bonanza for both Europe and Hollywood. The situation is a no-brainer, noted international European economist, Andrey Moisseyev. “With a cheaper dollar there exists an increased appetite for more coventures, as well as licensing deals and cheaper co-productions.” In other words, said Moisseyev, American product can be obtained at a lesser cost to non-American partners. Consequently, said Moisseyev, in terms of the weak dollar, American media companies have benefited twice: more sales and, for those who have foreign activities, more revenue on the books (when converting to U.S. dollars). A look at Hollywood’s foreign box office numbers clearly reflects the accuracy of Moisseyev’s statements. Some of the summer’s most staggering business took place overseas, with box office in international territories up 20 percent from last year, 30 percent ahead of 2005. And as much as moviegoers seemed to crave Hollywood product, studios benefited because of the weak dollar. The euro’s value against the dollar grew by seven percent over the past 12 months. That meant more money for studios when dollars were translated from local currencies. The cheaper dollar offers a lift to American exporters by making their products more competitive in many parts of the world. And while a weak dollar usually makes imports more expensive, import prices have climbed far less than other currencies so far because foreign producers have kept prices low in order to preserve market share in the United States. Another result of the weak dollar has been an increase in the number of foreign commercial producers coming to the U.S. to take advantage of the comparably low prices. Indeed Canada, a major film haven in recent years, has experienced its first drop in domestic production in more than a decade. The German chancellor Angela Merkel
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