Video Age International November-December 2008

BY ERIN SOMERS In This Issue: Antalya’s S&S TV Slots As Gold AFM’s Big Numbers MIPCOM’s Biz Buzz THE BUSINESS JOURNAL OF FILM, BROADCASTING, BROADBAND, PRODUCTION, DISTRIBUTION NOVEMBER/DECEMBER 2008 VOL. 28 NO. 6 $9.75 ® www.videoage.org The entertainment industry in Asia is experiencing a rise in international co-productions, the development and spread of new technology and, perhaps most importantly, an increase in global interest in programming from the region. Christopher Chia, CEO of Singapore’s Media Development Authority (MDA), pointed to these factors and more as reasons why Asia’s TV biz is booming, and he expects it to expand even further in the next few years. Indeed, as indicated by several research companies, despite the stagnant DVD market in Hong Kong and Korea, the Asia-Pacific region is poised to become an area with the highest annual growth rate for filmed entertainment. Singapore Stresses Market’s Strength, ATF’s Weakness (Continued on Page 24) (Continued on Page 20) BY LEAH HOCHBAUMROSNER We at Video Age understand that those with spouses must travel sometimes, but the upcoming 2009 market season’s opening salvo is too much, even for vagabonds. Just imagine — a distribution company that sells movies internationally will need to be at three markets on three separate continents, all in the space of 30 days. First comes NATPE, which will be held January 26-29 in Las Vegas, Nevada. Shortly thereafter is the Berlin International Film Festival, February 515 in Germany, followed by the first ever DISCOP Africa, which will take place February 25-27 in Dakar, Senegal. With markets so close together, it’ll be tough for distribution executives to breathe, let alone get home for even a short stretch. Yet, as incredible as it might sound, many companies will be attending all three markets — but not with the same people. The combinations will vary, but only a few who go to NATPE will travel to Germany, while many more will make NATPE, Berlin, Africa Marts Claim Triple Play Middle East As Venue Gets Praise, Criticism For the past 65 years, film festivals and television markets have been held in such glamorous corners of the world as Venice, Italy; Cannes, France; Antalya, Turkey and Los Angeles, California, as well as other market spots such as Las Vegas, Nevada; Singapore and Monte Carlo. These days, however, it seems like film and TV event organizers are looking to conquer new ground with (Continued on Page 22) (Continued on Page 18) BY DOMSERAFINI To understand the complex world of Starz Entertainment, one needs to start with a good breakfast, preferably with its president. Starz is a large and multifaceted entertainment group that is part of a larger conglomerate headed by Liberty Media: e.g., John Malone who, last February, swapped his 16 percent stake in Rupert Murdoch’s News Corp. for Murdoch’s 41 percent of DirecTV, the world’s largest satellite platform, plus $625 million in cash. William (Bill) D. Myers is the 50-year old president of Starz Entertainment, which is based in Englewood, a suburb of Denver, Colorado. Myers’ title, which in 2006 added the COO responsibility to his previous CFO moniker, reflects his 20 years of experience in the financial world, where he worked before joining Starz in 2002 from another Liberty subsidiary. Myers has Breakfast With Starz’s Bill Myers: TV To Change Only After 2013 Bill Myers

V I D E O A G E • N o. 6 • N o v / D e c 2 0 0 8 Cover stories: Breakfast with the Starz. Prez Bill Myers talks about TV that changes and TV that stays the same NATPE, Africa, Berlin: Gallivanting on three continents in 30 days in search of business Singapore to highlight TV market’s strength and the ATF’s weakness Middle East as market venue gets praise and criticism. The good and the bad is vented out 2. World: DTTV switch-over, U.S. travel hassle, Miami’s FMM, Latin America, wireless mics 6. Book Review. Fred Astaire’s era and his movies. Seventy-five years of pairing with a woman he disliked: Ginger Rogers 8. MIPCOM review. Latins got market dancing to their tune. U.S. studios finally showcased pilots. Financial crisis stimulated buying 12. The AFM Diary. More of the usual problems dealt some hope and even excitement 16. Antalya Film Fest reached the moon and the stars in Turkey, like the nation’s flag. Sales and co-productions also get some credit 26. Conferences and events news. It’s only a fancy name for the calendar of events 28. My 2¢: Someone who has never been a program distributor telling you what to do in content distribution

The U.S. Gets Ready for DTTV At midnight on February 17, 2009, all full-power U.S. terrestrial TV stations (those that cover large areas) will stop analog transmission and broadcast only in digital. At that time all households that are currently receiving a TV signal through an antenna — 14 percent of all TV households (15.5 million households) — will have three choices: getting a digital converter, buying a digital TV set or subscribing to a digital TV service (such as cable, satellite or IPTV). The U.S. telecommunications authority, the FCC, does not requires cable TV systems to convert to digital. Cable TV operators can therefore repeat channels in the analog system, but are then obligated to offer all local TV stations in analog. If the cable TV service becomes fully digital (to make room for new channels), reception with an analog TV set will require a converter. Satellite TV, which is always digital, uses an analog converter, while an IPTV converter makes use of the TV set’s video and audio jacks. For consumers, the least expensive choice is, of course, the purchase of a converter. To help families with the digital switch, the U.S. government has developed an elaborate support program. Through the National Telecommunication and Information Administration (NTIA), the U.S. government is running a “TV converter box coupon program.” To inform the public, NTIA has a website — www.dtv2009.gov (available in 12 languages) — and public service announcements on television. Participating stores that actually sell the digital converters are also involved in educating consumers. The focus of the program is the distribution of $40 vouchers for the purchase of a converter box (which costs between $40 and $70). Each family can request up to two vouchers. The request can be made directly through the NTIA website, by toll free telephone numbers or by mail. The coupon is mailed out 15 days after NTIA receives the request and is valid for 90 days. If the voucher is lost or damaged, it cannot be replaced. All participating stores offer technical support and are required to sell only NTIA-approved converters (of which there are currently 70 models). The program will cost the U.S. Federal Government $1.5 million (covered by the revenues from the auction of the analog frequencies, which generated $19 billion). It is estimated that, at the end of the program, NTIA will have financed a total of 50 million converters. The program will end on March 31, 2009. Latin America Gets Scolded Rampant government interference with press freedom threatens editorial independence and access to unbiased news in seven Latin American countries, according to a new report, “The Price of Silence: The Growing Threat of Soft Censorship in Latin America.” The study is published by the New York-based Open Society Justice Institute, a branch of the Open Society Institute that, in turn, is part of Hungarian-born U.S. billionaire George Soros’ Foundation Network. The study catalogues abuses in Argentina, Chile, Colombia, Costa Rica, Honduras, Peru, and Uruguay, including the widespread use of public funds to reward or punish news coverage. “The Price of Silence” documents various types of interference, including evidence of direct government payments to journalists in Colombia and Peru; local authorities in Chile dictating what journalists can write about, and a highranking official in Costa Rica attempting to use advertising contracts to influence the outcome of a protracted political battle. In addition to denouncing abuses, the study makes 11 specific recommendations to all Latin American governments. The report is available in its entirety online at: http://www.justiceinitiative.org/db/ resource2?res_id=104124 NO V E M B E R/ DE C E M B E R 2 0 0 8 (Continued on Page 4)

Miami’s FMM In Slow-Mo The third annual Florida Media Market (FMM) risked being the year’s first victim of the worldwide financial crisis. But in the end, it was held at the traditional Alexander Resort in Miami Beach, Florida, last October 23-26, and attracted the usual good number of top international film and TV players. Among the participating executives were Philip Alberstat, CEO of 49 North Media, Millennium’s Lonnie Ramati (both from Los Angeles) and Canada’s Michel Zgarka, who premiered his latest movie, Misbehaviour. Other executives came from Colombia, Puerto Rico, Mexico and Argentina. A large contingent came from the Miami area, including Venevision’s Pedro Tinoco, Telemundo’s Esperanza Garay and Carsey-Werner’s Rolando Figueroa. FMM’s organizer Maritza Guimet acknowledged the difficult feat and reported half the attendance of last year –– 200 participants –– but determined to make the event a major player in the Latin American film and TV scene. Pictured: VideoAge’s Dom Serafini, Millennium’s Lonnie Ramati, 49 North Media’s Philip Alberstat at the seminar “The Business of Show Business,” which Alberstat renamed “Rip-off 101.” The seminar explored distribution and advances against sales in the current film and TV business environment. Microphones Lose Spectrum The U.S. telecommunications authority, the FCC, recently decided to sell UHF frequencies to the highest NO V E M B E R/ DE C E M B E R 2 0 0 8 bidder in advance of the February 2009 shift of broadcast television from analog to digital transmission. TV stations won’t be the only ones impacted, though. U.S. wireless products that have been operating in that spectrum will also be affected. Wireless microphone manufacturers in the U.S. have been using the VHF and UHF frequencies for years now and this decision is causing a major uproar in the industry. Most wireless microphone products will now be challenged to find an unused, licensed frequency. Owners of such microphones are trying to decide whether their existing equipment will still operate, albeit with more noise, or must be replaced. Added Checks to U.S. Travel Beginning in 2009, travel to the U.S. from abroad for pleasure or to attend a market, such as NATPE or the L.A. Screenings, will become even more time-consuming. As of January 12, all Visa Waiver Program (VWP) travelers will be required to obtain, via Internet, a travel authorization prior to boarding a carrier to the U.S. The VWP allows citizens from 27 countries to travel to the States for 90 days or less for purposes of business or tourism without obtaining a visa. Under the new system, VWP travelers who do not apply for and receive authorization may be denied boarding and entry into the U.S. The new restrictions apply to citizens and nationals from all VWP countries: Andorra, Australia, Austria, Belgium, Brunei, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Monaco, the Netherlands, New Zealand, Norway, Portugal, San Marino, Singapore, Slovenia, Spain, Sweden, Switzerland and the United Kingdom. The authorization system— called the Electronic System for Travel Authorization (ESTA) — has been operational since last August and requires that travelers apply online no later than 72 hours in advance of traveling. The application, which for now, is given only in English, asks biographical and eligibility questions similar to those found in the I-94W paper form (the form given to international travelers on planes before landing). If approved, the authorization is good for up to two years and multiple trips. The Department of Homeland Security, which administers the VWP, lists https://esta.cbp.dhs.gov/ as the site to obtain both information and forms, but it often doesn’t connect, therefore it is better to use: www.cbp.gov/xp/cgov/travel/id_visa/. (Continued from Page 2)

V I D E O • A G E NO V E M B E R/ DE C E M B E R 2 0 0 8 6 Fred Astaire: A Dance Musical Talent For All Financial Crises of the way musicals were shot and edited. When he transitioned to the silver screen from the theater in the early ’30s, musicals generally adhered to the aesthetic favored by director Busby Berkeley. This meant a lot of geometriclooking arrangements of “dancers [coming] out of fountains, down from clouds, peeping out of immense pools, with feathers, fans, boots, headdresses flapping and flying all over the joint.” The effect was frivolous and moreover completely ignored film’s most valuable tool: the close-up. When Astaire began appearing in films, he insisted on being shot simply, in a medium shot that let the audience see his entire body at once, thus fully showcasing his talent. Additionally, he pioneered the close-up of facial expressions during songs, which allowed for a lot more emotion than Berkeley’s theatrical showgirl numbers and set a new standard for how Hollywood musicals looked. Although Astaire was a brilliant dancer There has never been a more apt time for analysis of the rise of the musical comedy in American film than in the midst of an economic crisis. Perhaps today we can all learn something about entertaining a financially stricken audience from a look at the genre that rose to popularity, and eventually dominance, during the Great Depression. A new book about one of Hollywood’s finest song-and-dance men, Fred Astaire by Joseph Epstein (2008, Yale University Press, 198 pages, U.S.$22), highlights the key component to Astaire’s success, and the success of the musical genre as a whole: It provided audiences with a much-needed dose of escapism. The biography first came toVideoAge’s attention because of an incomprehensible review in the New York Times’ weekly Book Review insert. The review focused, puzzlingly, on Astaire’s relationship with his sister, a factor that was little more than a footnote in a book that sought to explain the performer’s significance in Hollywood and American culture. The Times emphasized the fact that Astaire’s sister and original partner, Adele, was the superior dancer and of the two “loved life [more] and let it come as it may.” In centering on this triviality, the reviewer overlooked the most valuable part of the book, its examination of Astaire’s role in building a reputation for the musical. When one talks about Fred Astaire the first thing that comes to mind is dancing partner Ginger Rogers. The second thing is: Were they involved romantically? Though Epstein touches on both topics briefly, the description of Fred and Ginger’s relationship is lacking in depth and explanation. Astaire’s private life, including a marriage to a nonactress that was largely kept under wraps and even the chapter that involved Ginger, is one of the book’s most disappointing omissions. But let’s proceed in order. Astaire’s appeal to the down-at-theheels audience of the 1930s was his effortless elegance. However, Epstein points out that his early life was a far cry from the upper-crust lifestyle he came to represent. Born Frederich Austerlitz in 1899, Astaire’s lower-middle class childhood was devoid of any of the glamour of his later films. At a young age, Astaire and his sister, the aforementioned Adele, were spirited away from their Omaha, Nebraska home to New York City by their ambitious mother Ann to pursue careers in dance of income. Such exclusions occur consistently throughout the book, which seems determined to paint a rosy picture of Fred Astaire’s life at the cost of candor. Of Astaire’s talent as a hoofer (as dancers were called in those days), Epstein is adamant to communicate that Astaire was not a natural. Rather, beginning with his earliest performances as a child tapper, he was a perfectionist of “unrelenting ambition” and trained with a determination that far exceeded his sister’s. Like his dance routines, Astaire’s rise to stardom looked easily graceful, but actually required a great deal of work. By his early 30s, he was a Broadway sensation ready to make the transition to film. Adele, who was a few years older, had just about reached the age limit of female dancers and retired to marry a British aristocrat. Fred was free to fly, or rather dance, solo, but his freedom was not destined to last. Astaire might have been the man that put the musical comedy movie on the map, but he couldn’t have done it alone. When he signed on with RKO in 1933, he was paired, more or less by chance, with bombshell Ginger Rogers in Flying Down to Rio. Despite the fact that they rarely kiss on camera and despised each other in real life, something about the Fred and Ginger partnership hit a note with the American people. Fred and Ginger went on to make 10 more movies together over the course of the ’30s and early ’40s, including Top Hat, The Gay Divorcee, Roberta and Swingtime, which are considered classics of the genre. More importantly, they brought light-hearted (and cheap) entertainment to people struggling to keep food on the table. Fred and Ginger idealized romanticism in America and set the bar for many future films. As Epstein puts it “America loved Fred and Ginger together” and they were paired up in picture after picture because they never failed to sell movie tickets. However, one of Astaire’s contributions to American film topped even his duets with Ginger: His complete reinvention B o o k R e v i e w on the vaudeville circuit. Ann Austerlitz dubbed the young duo “Astaire” at the suggestion of a dance teacher, in order to evoke “a star” or, according to Epstein, “a stairway, perhaps one leading to Paradise.” With their brand new name in tow, the Astaires set out to conquer the theater world, a task that involved hours of rehearsal, seedy venues and little time for the kids to be kids. Though Epstein hints at the idea that Ann Austerlitz and the other adults involved were exploiting the vastly talented children, he never explicitly points out that the Astaire siblings were their mother’s sole source When Astaire began appearing in films, he insisted on being shot simply, in a medium shot that let the audience see his entire body at once, thus fully showcasing his talent. and excellent all-around performer, his reputation has been sullied by reports of his reticence and reluctance to be interviewed and to attend social events. Again, Epstein glosses over this imperfection in the icon’s life story. The author’s reluctance to address any problem, hardship or character flaw of his subject is the book’s biggest downfall. For although Astaire might have been perfection on stage and screen, surely he was still human. ES

The international financial crisis was not “exhibiting” at MIPCOM, but the summerlike weather couldn’t dispel the dark cloud of a recession compounded by the Wall St. meltdown. Overall, the “real economy” was showing off really well in Cannes, with restaurants and shops buzzing with customers and five-star hotels fully booked as usual. More than the economy, on some people’s minds was the imminent closing of the Carlton Hotel for renovations. It will reopen in May 2009, but many toplevel executives are left scrambling for some 300 luxury rooms and suites for next year’s late March MIP-TV. It is expected that Cannes’ other five-star hotels will chip in some rooms for the displaced, vacated by those who will opt for apartment accommodations. The organizers are also touting the exclusive Four Seasons Resort, which, however, is in Tourrettes, some 46 km. (a 40minute ride) west of Cannes. The party circuit was also busy as usual, if not more so than last year. The many big bashes included shindigs thrown by Dori Media, RAI Trade, Disney, Flor Latina, Televisa (who called in a Mariachi band), Ukrainian media players and the grand Telemundo celebration, among others. For Americans, the dollar’s newfound strength helped to get 18 percent more buck for their money, compared to MIPTV in April. At times, it seems the U.S. exporting economic turmoil can be good for the entertainment business. For example, the possibility of a Screen Actors Guild (SAG) strike –– which could have meant another rocky winter for the U.S. entertainment industry (after the debilitating writers’ strike) –– was averted in light of the economic crisis in the U.S. and worldwide. And so, at MIPCOM, business proceeded at full speed, aided by several factors, one of which was the screening of pilots not ready during the L.A. Screenings, and the expected cuts by television outlets of their local production budgets. It was said that, ultimately, the financial crisis will help distributors, but not traditional local producers. Networks will be producing less and buying more to fill their schedules with quality programming. Commercial TV networks lowered their 2009 advertising revenue projections from the expected nine percent drop to up to 15 percent lower. Public broadcasters will not suffer as much since they rely mostly on compulsory license fees. In Cannes, RHI Entertainment’s president and CEO Robert Halmi Jr. said that he was “anxious to see how everyone is reacting to the world economical crisis.” He noted that the entertainment industry has proven to be a “bullet-proof ” sector in the past, because in times of recession people turn on the TV for a bit of escapism. Halmi was confident that RHI will not fare too badly despite the economy’s downward spiral, because, as he put it, “Fantasy tends to be a big theme when people are a little down about the world.” Appropriately, at MIPCOM, RHI premiered its new event miniseries, Meteor, an action-packed four-hour miniseries about a massive, worldwide meteor shower. Halmi remarked that this is a unique MIPCOM for his team, as they have sold three back-door pilots, including one to NBC. According to Halmi, producing a four-hour miniseries in lieu of a traditional pilot is a much more effective system for RHI than the halfhour pilot process. “With four hours you can show people much more than with an hour or a half-hour,” he said, “Especially because you have a higher budget.” RDF Rights’ COO Jane Millichip commented that, “There is a lag between commissioning and delivery and a lot of the shows that we are offering [here at MIPCOM] were commissioned before the current economic crisis really took hold, so maybe in the immediate future, programming becomes more expensive for distributors to acquire as producers find they have larger deficits to finance.” According to Millichip, “If broadcasters do start feeling the pinch and cut back on commissioning, they will still have schedules to fill and if they are not filling them with original production then they will have to fill them with acquisitions.” Herb Lazarus, president of CarseyWerner Distribution, said: “There is no precedent I can think of, but generally when the economy is crappy, inexpensive entertainment (such as television) and entertainment that takes your mind off your problems (such as movies) should be okay.” The consensus of the panelists at the “Entertainment, Media and Advertising” seminar was that advertising needs to adjust to changing media challenges. The discussion was led by Saul Berman of IBM Global Business Services and focused on where TV advertising is headed in the era of the Internet. In his introductory remarks, Berman pointed out that with network television garnering smaller audiences, TV advertisers are getting less bang for their buck. The question Berman posed to the panel was: What can be done to get through to audiences who are watching fewer and fewer commercials? Robert Friedman of Radical Media, Joe Michaels of MSN, Douglas Scott of Ogilvy Entertainment and Benjamin Faes of Google’s YouTube arm responded to Berman’s question by recommending collaboration between the various sectors of the media. Additionally, the participants noted that advertisers “need to acknowledge the conversation the Internet is causing,” and not dismiss usergenerated content as an altogether bad thing. In final analysis, Berman suggested that the solution for advertising in the future has yet to be found. Remaining on the keynote circuit, V I D E O • A G E NO V E M B E R/ DE C E M B E R 2 0 0 8 8 M I P C O M R E V I E W Latins, Economy, Fantasy Shows: Mart’s Biz Buzz Dori Media’s Jose Escalante and Nadav Palti Action Concept's Herman Joha, RTL's Tom Sänger, FME's David Ellender with the cast of 112 DMNLA’s Diego Lerner and Fernando Barbosa Telefe International’s Nancy Rolon, Diana Coifman, Michelle Wasserman and Guillermo Henrich (Continued on page 10)

www.romafictionfest.it Roma Fiction Fest The RomaFictionFest isback anddetermined to focuson themarket. Ondisplay, fromthisyear, thescreenings of Italy’s upcoming fiction productions. For a more and more international Festival. INTERNATIONALFICTIONFESTIVAL–3rd EDITION July 6-11/2009

M I P C O M R E V I E W Chad Hurley, founder and CEO of Internet video juggernaut YouTube, opened MIPCOM’s first-ever Broadband Video Summit, which went on for a full day, with panels and lectures geared towards TV on the Web. As far as territories garning attention there were several: Russia, Spain, Italy and the Latin American region as a whole. Russian companies represented a large and ever-growing contingent at MIPCOM and, on that front, the ones VideoAge contacted were mum about the recent news that Rupert Murdoch will be pulling out of Russia after Russian investigators raided the offices of News Corp.’s News Outdoor Group (NOG) in Moscow. NOG is Russia’s largest outdoor advertising company with more than 36,000 sites across 90 cities. According to one European consultant with extensive dealings in Russia, the reason why people were reluctant to talk is because “Russia is not yet a completely democratic country.” With the combination of an increasing presence of Latin American buyers and the worldwide popularity of Latin TV shows at an all-time high, it’s no wonder that Latin American companies were having a very busy MIPCOM. Diego Lerner, president of Disney Media Networks Latin American (DMNLA) announced that DMNLA’s distribution unit will now distribute all Disney and non-Disney branded content to the Hispanic market in the U.S. Fernando Barbosa, svp Distribution for DMNLA, and his Miami-based team will lead the new business venture, reporting to both Lerner and Janice Marinelli, president of Disney-ABC Domestic Television. During the same press conference, DMNLA and Discovery Networks Latin America announced a production agreement to create a local version of the reality show The Amazing Race for the entire region. In addition, DMNLA and Internet company Terra TV have expanded their partnership and announced a host of new programs for 2009. Terra will host Disney LA’s new “Catch Up” format, which will make primetime series such as Lost and Grey’s Anatomy available on the Web shortly after their TV premieres. In other Latin America news, executives from Buenos Aires-based company Flor Latina (previously known as the Latin Flower Company) were at MIPCOM for the first time with the new name, and said that the climate for Latins couldn’t be better. Raphael Correa Netto, director of International Sales for Brazil-based Globo TV International, also found that MIPCOM is, more than ever, a productive place for his company. “Taking part in MIPCOM [also] gives us a great opportunity to get closer to our clients in Africa and Asia,” he said. Cesar Diaz, vp of Sales for Miamibased Venevision International, remarked that, “it’s very important to us that people recognize that we’re not only about telenovelas.” Venevision is emphasizing its documentary content in addition to its usual arsenal of telenovelas. Spain was this MIPCOM’s country of honor, and one could say that the country’s TV sector is losing (with honor), the battle to win the hearts, minds and wallets of Latin America, Spain’s close kin. Indeed, the lack of a major presence of Spanish TV companies at both NATPE and the L.A. Screenings, two of the major Latin American trade shows, indicates what would seem to be capitulation. The trend, now, is for Spanish companies to leave their imprint on the region through co-ventures with Latin America and U.S.-based companies. On the domestic front, Spain is also facing a few drawbacks. For Ignacio Orive, president of Spain’s Elastic Rights, major changes loom in the immediate future. “We are rapidly moving from a market dominated by a few FTA channels, to one in which 40 to 45 channels are fighting over an NO V E M B E R/ DE C E M B E R 2 0 0 8 V I D E O • A G E 10 Above: Peace Arch’s Jacques de Suze, Victor Rodriguez, Mary Herne and Kevin Byles Above left: VideoAge’s traditional breakfast meeting Left: Televisa’s Fernando Perez Gavilan, A3’s Mercedes Gamero, Televisa’s Manuel Gilardi, Claudia Sahab and Ricardo Ehrsam Lionsgate’s Craig Cegielski, Sandra Stern and Kevin Beggs advertising pie that will not have grown, and may have even shrunk,” he asserted. Orive went on to explain that “pay-TV never really took off in Spain, so the owners of the pay channels have all started to move to DTT, which, especially in tough economic times, must be a bigger attraction than pay.” Currently, however, Spanish laws don’t allow for pay-DTT, and Orive questions whether 40 or 45 channels can survive on the same advertising pie, which hitherto had supported a maximum of 10. Imagina’s Geraldine Gonard is also concerned about the imminent fragmentation of Spain’s broadcasting market, “Distributors will have to make more sales as each of the sales made will be for less money,” she said. She also believes that “fragmentation is likely to lead to some early consolidation in the broadcast sector.” The theme of Wednesday’s traditional VideoAge breakfast was Africa, and in particular, the launch — next February 25-27 — of DISCOP Africa in the seaside city of Dakar. Patrick Jucaud of DISCOP East organizer Basic Lead, and Rick Feldman, president of event partner NATPE, were on hand to talk about their plans for the new market. Special guests from Nigerian company Daar Group, as well as representatives from eight other countries were in agreement that, for a variety of reasons, DISCOP Africa could take the place of the now-defunct Monte Carlo market. In his remarks, Jucaud stressed the importance of advertisers to the future development of broadcasting in Africa. As he put it, “they are crucial to the process.” Feldman, for his part, offered his outfit’s complete support for DISCOP Africa and went on to highlight a few additions to NATPE ’09. Participants can look forward to an expanded convention floor with a restaurant, a theater for high-tech demonstrations and double the floor space. Going back to MIPCOM, a surprise for some was the elimination of buyers’ pigeonholes, making it more difficult to reach them. Next to go are the press pigeonholes, while this year the organizers did away with all printed press information, since, it was said, it’s all available online. While it’s true that journalists don’t have the time to retype press releases and therefore it’s better to receive them online, the Internet is not too practical and rather time-consuming when in need of quick reference material or just to check people’s names and affiliations. Because the flow of people is now shifting from the Palais’ basement to the Riviera side of the convention center and, lately to the seaside next to the Riviera, the traffic in the “bunker” seemed light. This, however, did not indicate a reduced number of participants, which was tallied at 13,588, or a 1.6 percent increase over last October’s event. (Continued from page 8)

A LIFE-SAVING FOOD FOR ETHIOPIA (DOCUMENTARY) 24’ ON THE THRESHOLD OF SUCCESS (DOCUMENTARY) 45’ IN THE NAME OF MAN (DOCUMENTARY) 50’ PEO GALLERY (CHILDREN) 32 x 3’

V I D E O • A G E 12 NO V E M B E R/ DE C E M B E R 2 0 0 8 T H E A F M D I A R Y broadcast, “big titles” or A-movies do poorly on free over-the-air television. This problem is less often associated with the B-movies that are so popular at the AFM. Other AFM characteristics are its presale agreements that filmmakers take to the banks as guarantees to secure production money. In addition, the bad state of the world economy is proving a boon for DVD rentals. Blockbuster has already recorded an increase in rentals and it has projected further gains in the coming months. It was this DVD sales news that brought a number of companies to the AFM for the first time. Said Andrew Schreiber of U.K.’s Power: “We’re here for the first time to expand our presence in the DVD market.” Another first-timer was Jill Keenleyside of Canada’s CCI, who reported brisk sales for Alice Upside Down, with an all-rights deal concluded in the U.K., and with negotiations conducted with Germany, Latin America and the Middle East. Italy’s RAI Trade, back at the AFM after a year’s sabbatical, announced several sales for two movies, Giovanna’s Father and Bad Girls, into such territories as Japan, Spain, Germany, Mexico and Scandinavia. Nonetheless, the close proximity of the powerful Cannes-based MIPCOM with the Santa Monica event continues to have a negative effect on sales at the AFM. But more than the poor economy, president-elect Obama and AFM machinations, on the mind of many sellers was the problem of too many movies chasing too few dollars. The glut of completed movies seemed to be the real economy at the AFM even though some disagreed. “Each territory has its own preference,” commented one distributor. For the AFM, the annual Santa Monica, California film market that this year began the day after an historic event in America — the election of the first AfricanAmerican U.S. president — Barack Obama was low on the list of interests of market exhibitors and buyers. At the opening day press conference, the newly elected Obama came into the picture only towards the end, when Jean Prewitt, CEO of IFTA, which organizes the AFM, briefly acknowledged the “historical day” and noted that IFTA favored Obama for his “position on net neutrality and broad diversity in the media.” Net neutrality concerns Internet sales, even though, as Prewitt explained, “We don’t yet know how to make money with digital rights.” Indeed, as also reported by U.S. studio executives, even though downloading will continue to grow, it still represents only a tiny piece of their business. Lloyd Kaufman, IFTA chairman, pointed out that the Motion Picture Association of America (MPAA), the association that represents the U.S. studios, “is against net neutrality.” While recognizing that the IFTA has “not been successful with the net neutrality issue,” Kaufman said that this is an issue that should concern not just the U.S., but also the world. About Obama’s election, Prewitt concluded: “Today we’re very hopeful for our members and for the economy. And the film industry creates jobs.” Perhaps it was purely coincidence, but it could be Obama’s victory that resulted in the elimination of the security checks at the entrance of the Loews Hotel — the AFM’s market center — an annoying (and useless) feature that had been in place for the past seven years. The MPAA came into the picture a few more times, like when Kaufman, who is also the president of production and distribution company Troma Entertainment, mentioned that IFTA “wants to be part of the regulatory process with opinion makers and politicians. They don’t have to get their info from the MPAA. Now they can get information from us at the IFTA.” Prewitt added that the MPAA business model is completely different from that of IFTA members and that legislators now recognize that there are two different views. Jonathan Wolf, IFTA’s evp and general manager of AFM, explained that, in general, the U.S business model is to get up to 70 percent financing from international sales, while in many other countries, investments are recouped domestically. Preempting the usual questions about empty corridors at the Loews Hotel, where suites were turned into sales offices, Wolf said: “I’m worried when I see crowded halls because it indicates that [buyers] are not at the screening places.” Wolf also explained that one of AFM’s greatest features is the high number of world premieres (102 films) since “buyers are always looking for new product.” In the opinion of several exhibitors, however, the AFM is primarily a DVD market, and a few buyers, such as Mario Pimentel of Portugal’s MPA, actually skipped MIPCOM this year for that reason. Masafumi Odawara of Japan’s Asterisk Corp. commented that because of the high cost of dubbing, Japanese companies are only interested in studio films, which are not found at the AFM. On the other hand, because of much exploitation prior to a film’s TV More Of The Usual Problems, But with Hope and Excitement Lloyd Kaufman, Jean Prewitt and Jonathan Wolf at the AFM opening day press briefing ACI’s George Shamieh and Chevonne O’Shaughnessy Pictured above (L. to r.): EuroVideo’s Grant Raynham, Claus Czaika, RHI’s John Alexander, EuroVideo’s Michael Mullner and MPA’s Mario Pimentel Pictured below: Image Entertainment and Brainstorm Media’s annual AFM dinner at the Marix Tex Mex Restaurant in Santa Monica (Continued on Page 14)

NO V E M B E R/ DE C E M B E R 2 0 0 8 “There are countries that prefer action and horror and others that favor romantic comedies. The quality might vary, however.” In any case, help is on the way. At one of the many AFM conferences, it was pointed out that the credit crisis will result in fewer movies being produced — at least for the next five years. The implication here was that companies had better stock up now. Also facing the indies are issues such as companies’ stock prices going down, the credit crunch, the critical financial status of countries like Iceland, the threat of a Screen Actors Guild strike, budget cuts, and the end-of-year budget cycle. The latter is a recurrent end-of the-year syndrome, when acquisition executives run out of money and go to the AFM to shop instead of buy. An acquisition boost is expected at the beginning of 2009, but then it would be NATPE (late January in Las Vegas), the Berlin Film Festival (in Germany in mid-February) and MIP-TV (in Cannes, late March) that would benefit. According to ACI’s George Shamieh, buyers dried up their budgets three months prior to the AFM. However, Chevonne O’Shaughnessy added that at the AFM, ACI completed sales of its miniseries Jack Hunter to TV Azteca, CineCanal, Channel 12 Uruguay and RCTV. And for the company’s success in Latin America, she creditedVideoAge. Similarly, it was said that the better dollar exchange rate is improving nonU.S. distributors’ sales and making locations outside the U.S. more appealing to American producers. At the same time however, the dollar gain “burned” up what was left in non- U.S. buyers’ budgets. As for the buying contingent, according to market organizers, a good number were recorded from Asia, especially Japan. A total of 1,527 buyers were in attendance, 100 fewer than last year. At the obsessive urging of The Business of Film’s editor, Elspeth Tavares, who was insistent that the AFM needed to go paperless in order to become green, AFM’s Wolf explained that, in a survey, buyers clearly prefer paper-based information because they don’t always have the time needed to log onto the Internet while at a market. Prewitt said that her biggest mistake last year was to insist on providing only online information, which ushered in a flood of requests from AFM members asking her assistant to print the information. Also, she added, “We certainly cannot lobby politicians and tell them to log onto our Web site to get the needed data.” On the figures side, a total of 409 companies from 36 countries exhibited at the AFM, a two percent reduction from last year. But total registrants numbered 7,903 — a 5.3 percent decrease from 2007. At the eight-day event, 375 market premieres (films introduced for the first time at the AFM) were screened and 37 films presented at the market were selected for the AFI Fest, which runs as a parallel event in Hollywood. The market also featured 15 seminars and conferences (for which the AFM charged fees), which were held at the Merigot and Fairmont hotels. The former is also the venue that housed companies that could not be accommodated at the adjacent Loews. Several groups took advantage of the AFM to make announcements. From Italy, Andrea Galante introduced a new feature to his Milan International Film Fest, at a launch party held in Santa Monica. The AFM Diary (Continued from page 12) Hollywood producer Seth Willenson, CCI’s Jill Keenleyside MIFF Awards’ Andrea Galante

V I D E O • A G E 16 NO V E M B E R/ DE C E M B E R 2 0 0 8 A N T A L Y A F E S T R E P O R T days of business meetings and networking events. Buyers were present from such firms as Bavaria Film International, HBO Central Europe, Joint Entertainment, Kinowelt International, Maximum Films, Studio Canal, Kimmel International, Metrodome Distribution and Lighthouse Pictures, among others. The Eurasia Film Market offered up market screenings, meetings with highprofile professionals, as well as a video library. The event attracted 300 industry executives from 55 countries. Last October 10, movie stars of the caliber of Kevin Spacey, Mickey Rourke, Danny Glover, Michael York, Marisa Tomei and Matthew Modine left Hollywood and headed for Turkey, to the sea resort town of Antalya for the 45th annual Golden Orange Film Festival — Turkey’s longest-running cinema summit — which showcased 16 current Turkish films. The festival featured the fourth edition of the Golden Orange’s global gateway, the International Eurasia Film Festival, which is just a “flashy-named” Turkish Film Bazaar Mixes Star Power & Sales be planning 35 weeks of Turkish Cinema worldwide — hopefully beginning in Los Angeles. However, Turkish executives at the AFM in Santa Monica could not confirm such plans. It was not just star wattage, like the presence of Jacqueline Bisset, that made this year’s event memorable, but the intimate master classes taught by Spacey, Glover, Tomei and Modine, all of whom stole the show. In the case of Maximillian Schell, best known in Turkey for his lead role in 1964’s Topkapi, even old Hollywood stories came alive. A vast selection of international fare (Network for the Promotion of Asian Cinema) prize for best Asian film. Honorary awards went to Spacey, Paul Verhoeven (Basic Instinct), Schell, York and Zbigniew Preisner. The top prize in the international section (Eurasia) went to Karim Dridi’s Khamsa, while Japan’s Hirokazu Koreeda won the best director award for Still Walking. Prizes were awarded by an international jury led by Verhoeven and included Chinese-born actress Joan Chen. This story was compiled from various dispatches. was matched with local features that had been responsible for the recent surge in popularity of Turkish films. Best film winner The Market-A Tale of Trade from British director Ben Hopkins, was shot in Turkey with a Turkish cast. Market’s Tayanç Ayaydin won the award for best actor, while Nurgul Yesilcay won the best actress prize for Conscience. In addition, Turkish filmmaker, Ferzan Ozpetek, who resides in Italy, presented his Italian movie, Un Giorno Perfetto. The best director award went to Turkey’s Dervis Zaim for Dot, about a man who goes against the laws of God in order to help a friend. Other award winners included Ozcan Alper’s Autumn, which took home the NETPAC sideshow of the main event, and which constitutes the international competition, with 12 titles. During the 10-day Festival, the international stars mingled with Turkish stars on the shores of the Mediterranean, where continents and cultures collided for red carpet galas nearly every night. The event ended with a ceremony that revealed the 11 winners of the Golden Orange trophies. There were also two sidebar events held during and after the festival. The third edition of the Eurasia Film Market, which started October 10, was considered satisfactory by participating companies. Hosted at the Hillside Su Hotel, the market welcomed buyers and sellers from around the globe for three And at the very successful second annual Eurasia Production Platform (EPP), which began on October 22, producers from New Zealand, Taiwan, Mainland China as well as France, Germany and Turkey, were on hand to encourage co-productions, as well as to provide participants with an opportunity to meet with representatives of highquality projects looking for international audiences. As noted by EPP director Deniz Ziya Temeltas, “it seems that Antalya was the perfect venue to bring projects so dear to Turks.” Reportedly, four major co-production deals were signed on the spot. To further underline Antalya’s importance, Turkish Minister of Culture and Tourism, Ertugrul Gunay, is said to Marisa Tomei was one of the stars in attendance Pictured above is Kevin Spacey on the red carpet Below: Antalya’s grand jury, presided over by Paul Verhoeven

NO V E M B E R/ DE C E M B E R 2 0 0 8 their entertainment-themed conferences by holding them in some of the globe’s newest centers of commerce, such as Africa and the Middle East — more specifically, Senegal, Africa and the United Arab Emirates (UAE). But while Senegal — which, like the UAE, is a predominantly Muslim region — is garnering accolades for markets such as DISCOP Africa, other locales such as South Africa, Qatar, Kuwait, Saudi Arabia and the UAE are being griped about by some members of the Dallas, Texas-based Meeting Professionals International (MPI), an organization for meetings and events professionals. The concern is over the perception of unfair treatment of women and Jews, and the local government stances on Israel. South Africa, on the other hand is being criticized for its support of Zimbabwe’s president, Robert Mugabe, who is known to employ terror tactics. Recently, MPI came under fire for its decision to move forward with programs in the Middle East, including the Gulf Meetings and Events Conference (GMEC), which will be held March 2829, 2009 in Abu Dhabi in the UAE, and the Global Certificate in Meeting Operations (GCMO), which took place in Qatar in November. Didier Scaillet, vice president of Global Development at MPI, said that he has not been able to reconcile attendees’ actual, positive experiences in the region with the fearful comments of a minority that has never visited the area. Scaillet acknowledged that while there are certainly concerns about operating meetings in the Middle East, it all depends on where such an event is happening. “We’re very cautious about where we go,” he said. “The UAE is one thing. Kuwait and Saudi Arabia are something else entirely.” These are regions that MPI will avoid due to alleged overt prejudice against women and Jews. “There’s a huge amount of misperception about the Middle East,” said Scaillet. “It’s an extremely diverse place with different religions and different levels of tolerance.” Scaillet also insisted that Israel is always in the running as a possible MPI event venue. While Scaillet was somewhat surprised by the level of outrage at MPI’s decision to hold conventions in the Middle East, he said that it was a necessary move for a company expanding from a North Americancentric firm to a global contender, and maintained that the Gulf region is poised for growth. Scaillet also contended that while a handful of individuals have expressed concern about the Middle Eastern venues, it hasn’t been enough to warrant an organized response from MPI. Plus, he added, “It’s really a matter of respect. Same way if you go to the Vatican, you don’t go in half naked, be respectful here. In certain periods of the year, namely Ramadan, don’t eat in the streets. It’s respect, no more no less.” Regardless of many misperceptions that may revolve around the region, it still seems ripe for occupation by Hollywood-types. “The Middle East, now almost synonymous with the Arab world, is a huge media market of over 250 million people with well over 200 television channels,” said Josh Elbaum, managing director of Los Angeles-based Media Investment Group, a financial and strategic advisory firm that provides services to the global media and entertainment industries, and who has extensive knowledge of the Middle East region. Explained Elbaum: “It’s also crucial to understand that this market is a young one — about two-thirds of the population is 25 years or younger. Geographically, it’s vast. Culturally, it’s diverse with significant differences in customs, speech and traditions.” Elbaum went on to note that the entire region shares an appreciation for good storytelling, making it a great place for creators of film and television. However, many would-be Middle East market attendees allege that if you’re the wrong kind of person — namely a Jew, a woman or a homosexual — you may be denied entry into a number of Middle East countries or if allowed in, treated like a second-class citizen “I did not encounter any specific difficulties from either a logistics standpoint or the government,” commented David Tomatis, an organizer of Monte Carlo-based SPORTEL, which held one of its sports programming markets in Dubai in 2004. “I didn’t see any difference between that event and the events we organize in Monaco or Asia.” Tomatis said he was unaware of any specific restrictions or the mistreatment of females, Jews or anyone with an Israeli stamp on his or her passport, contending, “there are rules and regulations in a number of countries around the world — not just the Middle East.” However, he did acknowledge that there seemed to be more “security policies within the U.S. companies themselves, which I believe were linked to insurance issues.” While SPORTEL has yet to schedule another event in Dubai, Tomatis was optimistic that it could happen again. “We determine the venue of the market based on the results of a regular survey taken by our participants.” Right now, said participants seem to prefer a regular rotation between North America and Asia. Regardless, said Tomatis: “Our Dubai event was a success, with strong participation from many countries, including the U.S. As a SPORTEL organizer, it would not be a problem to organize another event in Dubai or elsewhere in the Middle East. Today, our main obstacle in Dubai is financial. Hotel rates and cost for rental space is very high because of strong demand, which proves that everyone is going to that part of the world.” Elbaum concurred with Tomatis that business is booming in the Middle East, but was somewhat less emphatic about the positive aspects of attending events there. “An Israeli stamp precludes entry into Lebanon,” he said. “I’ve also heard it tends to invite questions from the authorities elsewhere. Similarly, Arab stamps will ensure questions from Israeli authorities.” For years, Elbaum has spent a large chunk of time in places such as Beirut, Amman and Marrakech, attending entertainment festivals such as MEIFF (Middle East International Film Festival), which was held in Abu Dhabi in late October. “I make four-to-six visits annually,” he said. When asked if he, a man with an overtly Semitic-sounding name, has ever encountered the problems that face Jews and women in entering certain Gulf region countries, Elbaum said: “None that I’ve experienced,” before going on to say that he completely understands the reason that market organizers have opted for Middle Eastern venues. LHR (Continued from Cover) Middle East Venue Pictured above: Didier Scaillet of Texas-based Meeting Professionals International Pictured top right: a night view of Dubai Josh Elbaum of Los Angeles-based Media Investment Group “The Middle East, now almost synonymous with the Arab world, is a huge media market of over 250 million people with well over 200 TV channels.” — Josh Elbaum V I D E O • A G E 18

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