(Continued on Page 42) 40 These are the goals: To increase the chances thatanewTVserieswillsucceed(surpassing the current 20 percent-or-so rate of success) considering that networks nowadays order full seasons of shows and to increase both cable and broadcast channel ratings and advertising revenues. And one way to accomplish all of this: By “re-windowing,” as a form of “double-windowing.” This is the strategy behind re-windowing: Broadcasters that also own compatible cable TV channels (like, in the U.S., NBC and FOX for example) should run each episode of a new season series commissioned by the broadcasters first on their cable channel and then, the following week, on broadcast television. In effect this would move TV broadcast from Nielsen’s L3 metrics (meaning one live plus three days of time-shifted deliveries), to an organic L7, with two live and five time-shifted deliveries. Cable’s low ratings would not affect broadcast television’s ratings (e.g., two point ratings for cable versus six for broadcast); to the contrary, the buzz created by the original cable showing will certainly increase broadcast viewing. In addition, if the new shows were to be scheduled during cable’s problematic time slots, but on a different night than their broadcast repeats, ratings could improve for both windows. And all of this could be done without doubling down upfront: license fees of the series alternatively going on primetime cable and broadcast will not be doubled. The series commissioned and produced for the broadcast network will get its negotiated license fee; it’s just that the cable window gets precedence and the show is licensed at the traditional cable run fee. Currently, a broadcast network’s primetime series is developed for its primetime broadcast, produced and sold internationally simultaneously. Later, the networks can repurpose for their cable channel (for the right price) and subsequently for syndication to their own stations, too, if they are interested in a syndicated run (if not, the show can return to cable). In any case, all residuals associated with re-windowing are calculated based on a network primetime program. This is because the production crew, actors, directors, writers, producers and executive producers get paid based on either network or cable primetime rates, and residuals are calculated accordingly, based on place of initial exhibition. The rates are different and back-end values are also different. When the cable-originated programs are sold into syndication, the residuals reflect a percentage of the sale. When a network show is sold into syndication there is a fixed rate for residuals, which is much higher. Plus, budgets are different for shows created for cable compared to those created for network primetime. In the case of The CW, this smaller network is considered first-run syndication in its pricing models. Right now we have a sort of re-windowing when a show made for cable turns so successful that the parent company decides to move it to broadcast. In this case the existing deal would end and the network would have to negotiate a new deal with everyone involved. However, as we have seen, re-windowing is not a case of “bait and switch” that would create major financial renegotiations for everyone involved with the risk of double payments to cover both cable and network fees, which could send the production cost and respective deficit through the roof. Re-windowing is simply a change of current windowpractices that offers more chances for the series to succeed since, as previously mentioned, in the traditional model a new series has only about a 20 percent chance of succeeding. Owners and participants in the production will not get the impression that distributors are not maximizing revenue or that re-windowing is done at their expense, first because the final financial results will not change and second because the rewindowing model will offer a better chance for a multiple-season order. Washington, D.C.-based media consultant Jacques de Suze offered his thoughts on the Re-windowing, a Formof Double-windowing ToReduce Failure Rate of U.S. TV’sNewSeries October 2014 Looking Beyond the Future of TV The buzz created by the original cable showing will certainly increase broadcast viewing. In addition, if the new shows were to be scheduled during cable’s problematic time slots, but on a different night than their broadcast repeats, ratings could improve for both windows. Jacques de Suze: “The concept of double-windowing makes sense to me.” Mark Cutten: “Fragmentation is a root cause for making it difficult for a series to find its audience andVideoAge’s double play suggestion may be a possible solution.” Rick Feldman: “There are ways to change the development system, and perhaps reduce failure a bit, but this [VideoAge’s suggestion] isn’t it.”
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