V I D E O • A G E Se p t e m b e r/ Oc t o b e r 2 0 0 9 44 complex structure of his group (which internally is referred to as the “matrix.” You can navigate it only if you’re an insider). Having gotten past that hurdle, VideoAge was able to proceed with topics as varied as Pyne’s long list of responsibilities (including domestic (U.S.) distribution, U.S. TV network’s affiliate relations, local international productions and channels, and international distribution), as well as other subjects like broadband markets, whether one or more U.S. broadcast network will eventually become cable nets, and the future of TV trade shows such as MIP and NATPE. Now, let’s attempt to describe the “matrix.” According to various reports, this operational structure was originally a creation of former head of Miami, Florida-based Disney Latin America, Diego Lerner (now London-based president of Disney Europe, Middle East and Africa under the Walt Disney International group), created in order to facilitate intercommunications across various Latin American divisions which were initially vertically structured and therefore rather insulated from one another. Lerner’s “matrix” proved to be successful in Latin America and was thus implemented at a company-wide level. Disney ABC-ESPN Television (DAET) falls under Pyne’s auspices, who reports to Sean Bratches, executive vp ESPN and ABC Sports, for domestic responsibilities concerning ESPN. Pyne’s international TV distribution broadcast TV and HD on cable. In effect, ABC is using multiplex 7.1 and 7.4 in NYC and LA for its flagship station (in HD), mux 7.2 (or DT2) for “Live Well,” and 7.3 for a weather channel. Because of Pyne’s success with local format production through Disney’s Media Network Latin America division, Disney has amassed a large amount of original Spanish-language content, which, together with its Spanishdubbed programs, could surely be used to fill a second-language digital channel. ABC competitor NBC, for example, owns Telemundo, the U.S.’s second largest Spanish-language broadcast TV network. To Pyne, this added opportunity is another of the many options available to them, but the company is for now focusing on licensing original Spanish-language shows to U.S. Spanish networks such as Univision, for series like Amas de Casa Desesperadas ( Desperate Housewives ), which Disney later sold to Mexico’s TV Azteca. In Pyne’s view, “the format business really took off in Latin America.” This is true for two main reasons: the availability of the right kind of product and strong business relationships. The model has been so successful for Disney that it is now “looking to broaden into other territories, like Europe and India.” Pyne explained that India represents a significant challenge because of the four languages spoken in the country, but the experience acquired with the Latin American local productions will serve the company well (Disney has licensed local versions in four different countries: Argentina, Brazil, Colombia and U.S. Hispanic). Just recently, Disney Media Network Latin America announced the launch of a local version of ABC Studios’ Grey’s Anatomy ( A Corazón Abierto) in Colombia. The international distribution of all local Spanish and other language versions of Disney’s shows rests with the company. Considering the World Trade Organization’s (WTO) demand that China open up its market to foreignmade content, Disney’s Asia-Pacific area is expected to grow. Recently, WTO called on China to stop requiring foreign media suppliers to go through the costly process of distributing content through Chinese state-owned entities. Currently, the Chinese government has a monopoly on the distribution of media content. Foreign movies, for example, have to go through the China Film Group, which takes a large cut of the box office, charges content owners high fees for prints and other distribution costs and limits the number of foreign films in theaters to 20 per year. The WTO rule, however, leaves the Chinese government with the right to exclude movies that are objectionable for political or social reasons. This is something that, considering the family nature of Disney’s films, could further benefit Pyne’s company in China. For example, Warner Bros.’ blockbuster The Dark Knightwasn’t allowed to be shown in China, basically shattering all WB’s ancillary opportunities. While in China retail is the country’s main audiovisual market, in India television offers the key outlet. In terms of revenues per geographical area, Pyne would not divulge their allocation for competitive reasons, saying only that Europe is their largest market outside the U.S. Former and current executives with other studios reported that, in general, including pay and excluding the U.S., EMEA could generate anything from 50 to 65 percent for studios, while in Latin America it could vary from seven to 12 percent (with the higher figures being generated by Warner Bros. and Disney). Canada could represent anything from five to 10 percent and Asia Pacific 15 to 20 percent, with Japan generating the lions share. Recently, DAET scored another big win with the sale of ABC Studios’ (Continued from Cover) Disney’s Ben Pyne (Continued on Page 46) Ben Pyne and Courtney B. Vance of Flashforward Video-Age’s Dom Serafini interviewing Pyne at his Burbank office “ The format business really took off in Latin America. The model has been so successful for Disney, that it is now looking to broaden into Europe and India. falls under the DAET moniker, for which the world has been divided into four areas: EMEA-Canada-Russia (Europe-Middle East-Africa), Latin America, Asia-Pacific and Japan. For distribution, Pyne reports to Anne Sweeney, co-chair, Disney Media Networks and president, Disney-ABC Television Group, and Alan Bergman, president, The Walt Disney Studios. Being in charge of both Domestic Distribution (overseen by Janice Marinelli) and Disney’s broadcast TV network’s (ABC) affiliate relations (under John Rouse), Pyne is in the best position to evaluate the opportunities offered by the extra digital channels that came with the switch over from analog (see “My2¢” on pg. 66). However, Pyne would not be specific on the subject, simply saying that the network is looking at all options and that for the moment, ABC and its own 10 stations are focusing on a new health and lifestyle channel launched last April called “Live Well,” which is on SD on
RkJQdWJsaXNoZXIy MTI4OTA5