INTERNATIONAL www.VideoAge.org From the very start, the United States has always been concerned with national security. Indeed, on May 13, 1798, James Madison, the architect of the First Amendment (i.e., freedom of speech), wrote, in a letter to Thomas Jefferson (the principal author of the Declaration of Independence), “Perhaps it is a universal truth that the loss of liberty at home is to be charged to provisions [against] danger real or pretended from abroad.” Why would this be? Possibly because authoritarian states are always working to undermine it. In modern times, this perceived “danger” has spilled all over the debate about TikTok, which is still at risk of being banned because of a national security threat coming from its Chinese ownership. TikTok has already been banned in many countries, inNATPE Budapest will be closing the Central and Eastern European (CEE) market cycle that begins June 2-5 with Content Warsaw, and continues with the successful New European Market (NEM), June 9-12 in Dubrovnik. This year, most of the screenings Hollywood’s star power still attracts international buyers In-flight entertainment takes off with a new business model The story of Hollywood and the life story of the Schenck brothers My 2¢: The ingredients needed to revive U.S. broadcast television Page 12 Page 10 Page 8 Page 3 THE BUSINESS JOURNAL OF FILM, BROADCASTING, STREAMING, PRODUCTION, DISTRIBUTION June/July 2025 - VOL. 45 NO. 4 - $9.75 Foreign Media Ownership In The U.S. May Be Possible Luxury Brands Should Favor TV Advertising NATPE Still Holds CEE Crown Amidst Competition (Continued on Page 16) (Continued on Page 18) (Continued on Page 20) Summer is here, but for most media executives in the northern hemisphere the memory of spring still lingers on due to the sheer weight of the spring editions of consumer fashion and lifestyle publications like Vogue, Harper’s Bazaar, GQ, and Vanity Fair in the U.S.; Elle, Madame Figaro, and Marie Claire in France; Grazia, Amica, and Gioia in Italy; and Telva and Mujer Hoy in Spain, among many others in Germany, the U.K., and Mexico. Hundreds of pages in these is-
3 My 2¢ June 2025 MAIN OFFICES 216 EAST 75TH STREET NEW YORK, NY 10021 TEL: (212) 288-3933 WWW.VIDEOAGEINTERNATIONAL.COM WWW.VIDEOAGE.ORG VIALE ABRUZZI 30 20131 MILAN, ITALY EDITOR-IN-CHIEF DOM SERAFINI EDITORIAL TEAM SARA ALESSI (NY) ENZO CHIARULLO (ITALY) LEAH HOCHBAUM ROSNER (NY) SUSAN HORNIK (L.A.) CAROLINE INTERTAGLIA (FRANCE) OMAR MENDEZ (ARGENTINA) LUIS POLANCO (NY) MIKE REYNOLDS (L.A.) MARIA ZUPPELLO (BRAZIL) PUBLISHER MONICA GORGHETTO BUSINESS OFFICE LEN FINKEL LEGAL OFFICE STEVE SCHIFFMAN WEB MANAGER BRUNO MARRACINO DESIGN/LAYOUT CLAUDIO MATTIONI, CARMINE RASPAOLO © TV TRADE MEDIA INC. 2025 Television can be a refuge for the masses. Happy talk shows, temps measured in Celsius, football (soccer) coverage, and a desire to make money are useful ingredients to revive U.S. broadcast television. In the pages of The Wall Street Journal, 81-year-old Jeff Greenfield, an American television journalist and author, argued that morning TV shows are too happy-go-lucky when the mood of many viewers is the opposite. One wonders if Greenfield was influenced by the Apple-TV+ series The Morning Show and observed how unhappy the hosts of such shows actually are. And if so, it’s no wonder that he wondered, “How About a Morning Show For the Sullen And Sleepy?” in the pages of the WSJ. I vividly recall that Dick O’Leary, the ABC-TV executive who invented the “happy talk” newscasts in the 1980s, used to tell his staff that their main business was not making television, but making money. Today, however, it is difficult for broadcast TV to make money when all morning shows on U.S. television — ABC’s Good Morning America, CBS Mornings, FOX and Friends, and NBC’s The Today Show — reach a combined 7.5 million viewers. “With some 315 million Americans living in homes with TVs, there is clearly a huge market inefficiency here,” explained Greenfield. However, television, as churches and temples have always been, can be a refuge from the prevailing social environment. If society or politics tends to be progressive, people need to balance it with conservative religious values, and vice versa. With the U.S. seemingly embracing conservative values, and the economy now in shambles, television — especially broadcast television — needs to become a refuge for the masses. After all, as is inscribed on the plaque of the Statue of Liberty’s pedestal: “Give me your tired, your poor, your huddled masses yearning to breathe free.” Broadcast television, which is free, can make money, but first it needs to attract more viewers. How? By serving as a refuge from the prevailing conservative movement — but not politically, socially. For example, sports segments on broadcast news programs focus solely on basketball, American football, baseball, and hockey. In order to find any news about football (called soccer in North America), viewers — including the 4.7 million Europeans living in the U.S. and millions of other nationalities — have to tune in to Spanish-language TV stations, which, by the way, are thriving. Then, on weekends, sports programs cover all of the above, plus golf and specials about horse and car racing. To watch regular football (i.e., the soccer variety), the world’s most popular game in number of fans, one has to either tune in to Spanishlanguage TV stations or, at times, to FOX. Let’s move now to the weather services. Here, temperatures are still given in Fahrenheit instead of Celsius. Currently, in addition to the U.S., only the Bahamas, the Cayman Islands, Palau, the Federated States of Micronesia, and the Marshall Islands use the Fahrenheit scale, all other countries use the Celsius scale. This is due to historical inertia and somewhat cultural familiarity, but shows a disconnect with progressive society. And what about Jeff Greenfield’s desire for the morning shows to be sullen? I disagree. I’d leave them happy-go-lucky to contrast with the collective sullen mood of the viewers. Let me conclude with a maxim from a New York City restaurateur: “The welcoming is very important, because if patrons seated at the table are already unhappy, no matter what delicious dish you can offer, they will not come back.” Dom Serafini “Who shall we let aggravate us today, CBS…NBC… ABC… FOX?”
4 (Continued on Page 6) first buyer is willing to pay? If a piece of IP could be equated to a tangible item, like a car, a second-hand sale is not subject to tariffs, only to a sales tax. Therefore, a sale to a second buyer (for a second window) would not be subject to an entry tariff. In this case, a producer of a non-American movie could arrange a first sale for $1 to an agent, and pay $1 in tariffs if the movie is 100 percent foreign. Naturally, the U.S. Customs and Border Protection office that collects import taxes at ports of entry could demand that the importing U.S. film agent pay the tariff at retail price (not wholesale value as is normally the case for imported goods). Commented Mario Niccoló Messina, founder and CEO of the Los Angeles-based Insurgence Entertainment: “It would be absurd to deny that American cinema is in deep crisis. Bold or misguided, this proposal finally puts film at the heart of the political debate. For decades, Hollywood has been America’s stronghold; today, that position is no longer guaranteed. I’m not sure how practical or enforceable a 100 percent tariff on overseas productions would be, but if it passes, we’ll simply adapt by shifting our shoots back onto U.S. soil.” Chevonne O’Shaughnessy, president of ACI | ACI Inspires, explained from Los Angeles: “In one way the tariffs help me as a producer as I’m making all my movies and series in the U.S. However, the tariffs will also hurt me as I sell movies, and the retaliatory response will make it harder to sell to the international market.” Added Chris Philip, executive producer of Sherlock and Daughter and Departure, “Building a substantial U.S. varied tax incentive infrastructure across the counThe idea of the Hollywood tariffs that U.S. President Donald Trump wants to apply to non-Americanmade movies is clear — despite the realization that Hollywood generates a $15 billion a year surplus for the U.S. But implementation will be difficult. The first hurdle is determining what an “American” movie is. This part could be made relatively simple by applying the point system widely used by many countries to qualify for subsidies. The point system could determine the U.S. production level. If the foreign component is 70 percent, the same percentage could be the import tax. Now the question is: How can an IP’s value be determined? The value of a movie depends on what the buyer is willing to pay. So, does that mean that a tariff on a movie could be priced based on what the Hollywood Tariffs: Fuggedaboutit! Pictured above from l. to r.: O’Shaughnessy, Westlake, Messina, Philip. VIDEOAGE June 2025 World VideoAge will meet you at MIP Africa at the Cape Town International Convention Center VideoAge represents the bridge between selling and buying TV content
6 dios in the U.S. and around the world. A reintroduction of a Fin-Syn type rule might well be good if aimed at streamers. Especially Amazon Prime and Netflix have not only been acquiring intellectual property rights but also building physical studios (Amazon even acquired a studio, MGM). There’s likely not much use in considering the ever-weakening U.S. broadcast TV networks, whose production units are behind several shows. That said, the recent revelation of the new U.S. TV season hardly augurs well for sufficient scripted shows to be of concern. Add that to a seemingly blinkered view amongst decision makers to stick to “reinventing” familiar titles from the past, and one gets the huge possibility of Fin-Syn 2.0 for the networks being a no-go and a definite need for some oversight and course change recommended for streamers. (By Mike Reynolds) try would have been a good idea before shocking an already affected industry. Forcing creative decisions to accommodate a U.S. TV market, which has become less attractive over recent years for international productions, simply won’t work.” Remarked former Universal Studios executive Blair Westlake, “My bet: This [tariff] dies in the coming weeks from a lack of consensus.” Concluded entertainment consultant Anthony D. Friscia: “The Trump administration’s tariff proposal on films is never going to happen. An IP is not a physical good. The U.S. film industry is one of the very few industries that runs a financial surplus to the U.S. Why blow that? When President Trump and his tariff people meet with industry heads, this whole tariff thing will be dropped.” U.S. actor Jon Voight recently proposed the reintroduction of the Fin-Syn rules for TV content (which were killed off in 1993). Fin-Syn, officially the Financial Interest and Syndication rules, went into effect at the same time as The Prime Time Access Rule in 1970. Between them they would and did limit U.S. TV networks to supplying three hours of their own produced programming between 7 p.m. and 11 p.m. Eastern Standard Time. Voight (pictured) and Hollywood producer Steve Paul were among those who had helped provide information leading up to U.S. President Donald Trump’s movie tariff announcement. However, while the Hollywood tariff controversy caught the majority of attention, Voight’s suggestion of reintroducing the Fin-Syn rule released calmer mixed comments within the industry. Today, the industry is in a situation similar to 1970, though this time it isn’t the networks but streamers who are buying producer content for themselves, along with buying up and/or creating/building stuFin-Syn 2.0 Could Be on the U.S. TV Horizon (Continued From Page 4) Hollywood Tariffs (Continued from Page 4) VIDEOAGE June 2025 World
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8 Writers Michael Benson and Craig Singer chronicle the lives of Nicholas and Joseph Schenck, brothers whose ambition and enterprise made them legends in Hollywood. The Story of Hollywood is Synonymous With the Life Story of the Schenck Brothers By Luis Polanco What is it with brothers and enterprise? There is no shortage of stories about brothers who band together to form a business and succeed. These stories appeal to a few things in the American imagination — to enduring ideas about families succeeding together or the fact that blood is thicker than capital. A few famous examples come to mind. First off, in Roman mythology, there’s the story of Romulus and Remus, who founded Rome. In the U.S., there are the aviation pioneers, the Wright brothers. There are the brothers who founded superstore Walmart. There are the Warner brothers. And then there’s the Schenck brothers — Nicholas and Joseph — who were foundational to shaping twentiethcentury Hollywood and its future landscape. A recent book chronicles the Schenck brothers’ life story, which spreads across the realms of celebrity, entertainment, cinema, and real estate like a network of roots in the soil of the United States in the twentieth century. Michael Benson and Craig Singer’s Moguls: The Lives and Times of Hollywood Film Pioneers Nicholas and Joseph Schenck (304 pgs., Citadel, 2024, $28) presents a beguiling account of how the Schenck brothers gained power and notoriety in Hollywood, featuring a cast of some of the most important names in the industry, everyone from business magnate and motion picture pioneer Marcus Loew and studio head Louis B. Mayer to some of the most iconic talent from the century, including Fatty Arbuckle, Buster Keaton, and Marilyn Monroe, among many others. The book doubles as a biography of the brothers and a history of some of the most inspiring and scandalous events in the United States. Co-authors Benson and Singer bring their varied backgrounds to the book. Benson is the author of several nonfiction history and crime books, including Gangsters vs Nazis, and Betrayal in Blood. Singer is an Emmy-nominated director, producer, playwright, writer, and a former Disney executive. He directed and produced films such as Animal Room (1995) and A Good Night to Die (2003), among others. Their story is a story of humble beginnings and unhumble middles and endings. The Schenck family migrated from Russia to New York City in the early 1890s. Joseph (Joe), the older brother, and Nicholas (Nick), the younger brother, got their start in the entertainment biz working concessions at amusement parks before they partnered with Marcus Loew in movie theaters. From there, their future would see them hold “controlling interest in three major studios: Metro-Goldwyn-Mayer (MGM), Twentieth Century-Fox, and United Artists (UA).” The two brothers couldn’t be any different — and yet this is also the trope of brothers who become titans of industry. One brother represents purity and hard work, while the other represents vice and excess. Such is the case with the Schenck brothers. Nick was the family man, while Joe was the “swinger.” Nick excelled at real estate and board meetings, while Joe was a people person who had a knack for spotting star talent. Nick was feared in Hollywood, while Joe was beloved there. Their differences in character found common ground in a similar taste for lavishness: Nick lived in a “Gatsby-like mansion — 30 rooms, 20 acres — on Long Island’s North Shore” (in New York), while Joe lived in “a nine-bedroom, ten-bathroom Italian Renaissance-style mansion known as Owlwood in the enclave of Holmby Hills overlooking Sunset Boulevard,” in Los Angeles. The Schenck brothers were not ones to walk away from scandal and controversy. Joe Schenck was friends with the silent film actor and comedian Roscoe Conkling “Fatty” Arbuckle, one of the most popular and highest-paid film stars of his time. In 1921, Arbuckle attended a party where he allegedly punctured the bladder of the actress Virginia Rappe, which resulted in her death. According to party witnesses, Arbuckle locked the actress in a room with him, and they heard screams. Consequently, rumors spread that Arbuckle had sexually assaulted Rappe, and Arbuckle was charged with manslaughter. The incident made newspaper headlines, and Arbuckle’s “name became a synonym for hideous sexual violence,” Benson and Singer write. Joe Schenck would pay close to $100,000 for Arbuckle’s legal defense team. In the 1940s, Joe Schenck was also in trouble about taxes. He allegedly made deductions to his income, hid gambling winnings, and was put on trial for “tax-deductible gifts” to up-and-coming starlets. The court trials concluded with: “Joe did four months and five days in the fed pen for tax evasion — one of his deductions involved a ménage à trois — but was quickly released after allowing the USO to use one of his houses in Palm Springs.” The United Service Organization (USO) was an agency that provided morale and recreation services to U.S. uniformed military personnel. And yet, despite how the brothers courted controversy and scandal, they are associated with some of the greatest milestone achievements in Hollywood. They co-created the Motion Picture Academy and the Oscars, and they created the blueprint for the Hollywood studio system. Co-authors Benson and Singer capture something true about the subjects of ragsto-riches tales. These stories are not always about men who make people proud. Sure, at times they exhibited strength and valor and courage. And at other times they exhibited weakness and corruption. Benson and Singer note: “The Schencks’ story is also a history of the twentieth-century in America: war, jazz, prohibition, sex, Great Depression, more war, organized crime, gambling, Red Scares, and blacklists.” VIDEOAGE June 2025 Book Review
10 The New Business Model of In-Flight Entertainment It is estimated that the “Big Four” U.S. airlines (Delta, American, United, and Southwest) combined boast some 525,000 TV screens on their planes. Delta Airlines, for example, has 165,000 back-seat screens on 840 aircrafts. These make up the bulk of the in-flight entertainment (IFE) business, especially considering that eight out of 10 passengers use the entertainment system. To get an inside perspective of this business, VideoAge contacted Jeff Briller, a former executive at Los Angeles-based Anuvu, the new name of airline content licensor, Global Eagle. VideoAge: Do airlines go directly to producers or do they use agents/distributors (middlemen)? Jeff Briller: Most airlines work with content service providers, yet some of the larger carriers negotiate their own direct deals with studios. VA: Airlines reportedly select content by tracking potential content to acquire on external streaming platforms. But by doing so, they show content that passengers have most likely already watched. How does this make sense? JB: This pertains primarily to catalog or library product. Most airlines are booking 6090 days prior to the programming month. There are generally three groups of programming monthly: A) new releases, B) library programming curated to supplement new releases, such as sequels/prequels, etc., as well as thematic to holidays during the respective season, and C) the remainder are the hits for depth of selection. The SVoD services are a great bellwether as they are using the same strategy of scheduling programming that can boost the release or addition of a title’s premiere onboard. VA: How long (and when) is the airline’s window? JB: What was once known as the hospitality/airline window has shifted quite a bit with the dynamic shift in major studio and SVoD service release strategies. What was once an exclusive window pre-Video on Demand has evolved and is now different for each studio. Today, they are more aligned with their respective premieres on SVoD services — following their Premium Video on Demand availability. While they are not exclusive and no longer available prior to their pay premieres, they still perform quite well as they benefit from their promotion on pay services and shorter exhibition runs in theaters. In some cases, there are significant holdbacks, up to one year, with “SVoD originals” being held back after their initial premieres. VA: How is content priced? JB: Library titles are flat fee for a defined exhibition window — 3/6/12 months, whether it’s a short-form episodic program that is 30 minutes or 60 minutes or a long-form feature. For new releases, they are based on length of exhibition window and flights. There is a definitely some variance in the pricing based on the size of the fleet or airline budget. VA: Do some airlines pay per viewing? JB: It’s much less prevalent today. Generally, smaller or regional airlines may still charge for pay per view, or charge for WiFi to get access to streaming. VA: What is the range of the license fees? JB: Most studios bundle the content to include new releases, catalog titles, and television episodes. The studios then allocate accordingly. The methodology is unknown if a smaller specialized title or SVoD premiere would get the same license fee as Minecraft or Thunderbolts. For clarity, a studio may offer an airline pricing of $950,000 for 10 titles, 25 library titles, and 20 hours of TV. VA: What is usually the shortest and the longest period a program is kept on the airlines’ screens? JB: This varies for new releases and library content. As there is an incurred cost for encoding files and deploying to aircraft, there is greater value to keeping a title onboard for a longer period of time. Specifically, new releases are licensed for 4-6 months. The cost is less for four months and the cost savings greatly exceeds the percentage/quantity of views in the final two months of a six-month window. Anecdotally, there are definitely airlines that have offered certain evergreen titles for extended periods of time — as they have continued, month to month, to find an audience. VA: American Airlines reportedly carries 1,500 titles, including 500 movies, and 200 titles are added each month. But all those titles aren’t shown on the screens’ interface. What do they do? Rotate some of them? JB: In some instances, an airline may not offer the entire portfolio of programming due to constraints with their onboard servers, meaning older aircraft may not have capacity to support all of the titles. A title may be licensed for six months or a year, and then removed for some brief period of time and then made available again via the UI or User Interface [the data-sharing device with the ground]. In this instance, the content is most likely still on the onboard SMU [Server Management Unit], but not accessible via the UI. There is no extension to the exhibition window in this instance, or cost savings. Jeff Briller, former executive at Los Angeles-based airline content licensor Anuvu Delta Airlines has 165,000 back-seat screens on 840 aircrafts. “What was once known as the hospitality/airline window has shifted quite a bit with the dynamic shift in major studio and SVoD service release strategies.” VIDEOAGE June 2025 In-Flight Takes Off
12 All in all, an estimated 750 international buyers gathered at this year’s L.A. Screenings — a far cry from the over 1,500 recorded at Screenings held prior to the pandemic, with the reduction attributed to the TV outlets sending fewer acquisition executives, as well as concerns about entering the U.S. under the current U.S. administration. (Indeed, a French scientist was denied U.S. entry in Houston, Texas after messages critical of President Trump were found on his phone. A May 20, 2025, front cover story in USA Today confirmed that U.S. Customs and Border Protection officers have the authority to search the content of electronic devices.) Also, many of the studios’ screenings were shorter this year, with several majors, including Fox, Amazon MGM, and Lionsgate, taking up just one day each. Paramount Global and Warner Bros. Discovery took two days each, while Disney took three days and NBCUniversal took four days. Sony Pictures TV had originally planned on taking two days, but later opted for just one day. When asked about it, a Sony Pictures spokesperson said: “We are not, in fact, having day-long screenings as we did last year, but instead doing an Upfront-style presentation on Sunday night.” Commented an English-language content buyer: “The networks themselves are commissioning far less new shows these days, and many are spin-offs and go straight to series without a pilot. It’s a very different world to years gone by when we could screen over 30 brand-new network drama and comedy pilots.” Indeed, with most new pick-ups going straight to series, all the studios had a few pilots ready for screening. Nonetheless, the Screenings lasted a full five days for most of the buying contingents, as it has for the last few years, with the exception of the LatAm buyers who were in town earlier to attend the L.A. Screenings Independents portion on May 15 and 16. Ultimately, the L.A. Screenings is still a popular event for the international buyers who attend, not only to preview the new U.S. TV season, but also to observe trends, like the fact that the 7 p.m. and 8 p.m. hours are now, according to various research firms, becoming very popular with linear TV viewers. For example, the 7 p.m. newscasts on network affiliates have grown their audiences by eight percent over the last five years, while the 8 p.m. hour is now generally considered the most popular time for live viewing. American television has always been overrun by procedurals featuring police officers, lawyers, and doctors, but this year is definitely the year of the doctors, with renewals that feature hospitals in all their glory, starting with HBO Max’s The Pitt, a medical drama set over a 15-hour emergency room shift using the real-time style of one-time FOX hit 24. Other medical dramas that aired this past season include Watson (CBS), Doc (FOX), Doctor Odyssey (ABC), Brilliant Minds and St. Denis Medical (both on NBC), and Pulse (Netflix). And these were in addition to longtime ABC hit Grey’s Anatomy. The independent portion of the L.A. Screenings 2025 concluded on Friday, May 16, following a two-day run at the newly “adopted” 12-story Roosevelt Hotel, which, for the first time in the L.A. Screenings’ 62-year history, replaced the Century Plaza Hotel. The studios’ portion began promptly on Saturday. The indies closed this year’s event on Friday with an evening panel with LatAm buyers, and, on Saturday, with an evening party and screenings from Argentina’s Telefilms — whose executives flew straight from the Cannes Film Fest to Hollywood to welcome their guests at the Roosevelt’s Blossom Ballroom. According to organizers, the L.A. Screenings Independent had 275 buyers registered, 58 content companies exhibiting at the Roosevelt Hotel in Hollywood, and a total of 500 participants. Traditionally, only an estimated 50 percent of content buyers attending the L.A. Screenings Independent tend to register with market organizers, therefore, one could assume that over 400 acquisition executives, mostly from Latin America, ultimately roamed among the 43 companies scattered on nine floors of the hotel, as well as the Academy Calinos Entertainment’s Goryana Vasileva and Cristina Duffy Inter Medya’s Beatriz Cea Okan and Sinem Aliskan Multicom Entertainment’s Irv Holender, Niloo Badie, Jesse Baritz, Ryne Dillon Kanal D International’s Duda Rodrigues Hollywood’s Star Power Still Attracts International Buyers (Continued on Page 14) VIDEOAGE June 2025 L.A. Screenings 2025
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14 ballroom. Also unprecedented was the presence of 58 journalists. Among the indies there were several Korean companies grouped under the KOCCA banner. And studios such as Disney, NBCUniversal, Lionsgate, Fox, and Amazon MGM also exhibited at the Roosevelt. As early as 9 a.m. on Thursday, May 15, distributors exhibiting in suites and at meeting tables in the Academy ballroom had backto-back meetings with buyers — mostly from Latin America. The main challenge was keeping the time of the scheduled meetings since one of the two hotel elevators was out of service, causing delays. The problem was later alleviated by opening up the emergency exit doors to the hotel stairs. Rich Oken, the Roosevelt’s general manager, was pleased with the L.A. Screenings crowd and promised that the elevator problem would be solved next year, that more restaurants on premises will be open, and that he’ll even try to get the lights in the open spaces to be brighter after attendees complained that the hotel was poorly lit. Public parking was conveniently located across from the Roosevelt’s entrance (at considerable savings for non-hotel guests). All in all, most exhibitors were pleasantly surprised to see their meeting schedules fill up in the last few weeks prior to the event, especially since LatAm buyers have reportedly reduced their content purchases since the beginning of the year, a decline that has been particularly felt by Turkish distributors. In terms of new content for the 2025-2026 U.S. TV broadcast season, the studios could preview only a few new series since most of the pick-ups were straight-to series orders. There were also many renewals. Under the theme “The Power of Windowing,” Sunday’s Paramount Global screenings filled its theater, where it screened a full episode of NCIS: Tony & Ziva. Just before breaking for lunch, Paramount’s Dan Cohen sat on the stage with (the already picked-up) Boston Blue star Donnie Wahlberg (who’s also the new CBS series’ executive producer). NBCUniversal also had a big crowd at its Monday screenings, where it previewed the pilot of the new comedy series The Fall and Rise of Reggie Dinkins, and at lunch, VideoAge met with Michael Bonner, who attended the L.A. Screenings for the first time as NBCUniversal’s president of Global TV Distribution. Wednesday, the last day of the studios’ screenings, was reserved by Disney, which took on the theme “L.A. Strong,” and whose Latin buying contingent took over the Frank G. Wells Theater on the Disney studio lot (while other territories’ acquisition contingents took the Main Theater), and among the new shows screened was Amanda, a Hulu limited series about American Amanda Knox’s conviction for murder in Italy. Among the studios’ parties attended by VideoAge, both Disney on Saturday and Fox on Sunday managed to attract large crowds. Disney featured the new theatrical movie Lilo & Stitch before its party on the Disney studio lot. Monday, May 19 was also “Deal Day,” when Canadian buyers bid for the new U.S. shows, which they started screening on May 6 in order to prepare for their own Upfront presentations to their advertisers. This year, only Bell Media and Corus were in Los Angeles, while Rogers was summoned at the broadcast standards hearings overseen by the Canadian regulator CRTC. Bell and Corus went the following week. As for the U.S. TV Upfronts, the uncertainty caused by President Trump’s tariffs is expected to further reduce the advertising revenue of U.S. broadcast TV stations. This is the prediction for the TV broadcast Upfront market that started in New York City a week before the L.A. Screenings in Hollywood. Television could be negatively affected due to the fact that its largest advertisers are among the sectors hit hardest by the tariffs. The Wall Street Journal reported that advanced TV spending could fall 20.5 percent this year to $13.9 billion, compared to last year. However, if the Upfront market slows down, but the U.S. economy rebounds later on, the scatter market (the TV inventory not committed during the Upfront market) could pick up. Another bright outlook is going to be sports programming, which is expected to make up for the lost advertising predicted from other programming. Overall, total TV advertising spending for 2025 is expected to reach $61 billion across traditional and digital television (down from the $64 billion invested as early as 2019), with the exclusion of political advertising. Overall, total U.S. TV advertising spending for 2025 is expected to reach $61 billion across traditional and digital television, with the exclusion of political advertising. (Continued from Page 12) VIDEOAGE June 2025 L.A. Screenings 2025
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16 (Continued from Cover) cluding India, Australia, and France — all due to security concerns. Then, consider this. According to Curtis LeGeyt (pictured on the cover), president of the Washington, D.C.-based National Association of Broadcasters (NAB), “the FCC must modernize local ownership rules to help broadcasters compete with technology giants.” Speaking at the Media Institute’s Communications Luncheon in February 2025 at the Fairmont Hotel in Washington, D.C., LeGeyt urged the U.S. communications agency, the FCC, to eliminate the national television ownership cap and ease local radio and TV ownership restrictions. At the luncheon, NAB’s LeGeyt pointed out that “current FCC rules prevent TV broadcasters from owning two of the top four-rated broadcast stations in a media market.” This, according to LeGeyt, undermines broadcasters’ ability to compete with tech companies like Netflix, YouTube, and Amazon, which have no such limit. Therefore, he called for the FCC to remove its local TV and radio ownership rules, which, in his view, are “relics.” It appears that the top brass at the FCC heard what he had to say. During a May 5, 2025 Q & A presentation at the Beverly Hilton in Los Angeles, as part of the 28th annual Global Conference of the Santa Monica, California-based Milken Institute, a non-profit think tank organization, FCC chairman Brendan Carr said that he would like to get rid of ownership rules and caps, that in his view, are making it harder for local broadcast stations to compete with big tech and streamers. “We have these arcane, artificial limits on how many TV stations any one company can own. But of course, that doesn’t apply to big tech,” he added. Neither LeGeyt nor Carr replied to specific questions for this article. Still, the U.S. prohibits foreign nationals (known as “aliens” in the U.S. bureaucracy, like those coming from outer space) from owning more than 20 percent of a radio and TV broadcast station that uses the electromagnetic spectrum in their territory. Any foreign investor seeking to acquire a substantial stake in a U.S. broadcast station must be reviewed by various U.S. executive branch agencies to ensure that there are no perceived security risks raised by the proposed acquisition. Nevertheless, the FCC has shown that, in the right circumstances, foreign ownership of U.S. broadcast stations is permissible. But acquiring broadcast TV stations in the top U.S. markets is very expensive, and while mid-size markets are more affordable, many banks no longer lend money for linear TV outlets. However, foreigners can lease airtime on any U.S. broadcast TV station, therefore they can circumvent any TV ownership restrictions by possibly permanently leasing all the station’s airtime (the station licensor would post the usual, “the station is not responsible for the content...”), and the “must carry” rule will assure cable TV carriage throughout the station’s coverage area. For extended areas, the foreign airtime leaser can make arrangements with individual cable operators. This airtime leasing option has, for years, been used by foreign broadcast networks, like Italy’s RAI did on WNJU-TV, in New Jersey, also reaching New York City. Foreign networks, including CCTV-4 (China), Nippon TV (Japan), BBC-America (U.K.), TV5 Monde (France), and even RTVI (Russia), that run their own cable-satellite TV networks in the U.S., don’t need FCC approval, but only an agreement with local cable operators. In June 2024, the FCC approved new rules that require stations to secure documentation when leasing airtime, proving that a programmer does not have foreign government connections. The then FCC chairwoman Jessica Rosenworcel said that the new rules were meant to create a process to inform consumers whether what they heard or saw over the air had been provided by a foreign government. However, according to the NAB and the Multicultural Media Telecom & Internet Council (MMTC), the new rules were burdensome and questioned whether the FCC had the authority to adopt the requirements. Carr, then an FCC commissioner, commented that the revision gave a new definition of what constitutes a lease. The FCC viewed a lease as “any agreement, written or not, where a licensee grants to another party the right to program on its station in exchange for some form of consideration.” But Carr then noted, “It creates new problems that may require us to revisit our foreign sponsorship rules in a future proceeding following another appeal.” In 2021, when the lease issue was reviewed, NAB, MMTC, and the National Association of Black Owned Broadcasters jointly noted that the FCC decision failed to address the problems with undisclosed foreign governmental programming on cable systems and the Internet. The difference between “buying” and “leasing” airtime is explained thusly: Buying airtime grants (rents) clients a specific block of time to run their programming, infomercials, or commercials, while leasing airtime grants clients broader control, essentially allowing clients to operate the entire station for a longer period and having more control over its operation. Steve Schiffman, an entertainment lawyer based in Las Vegas (as well as a VideoAge contributor and in-house counsel), explained the nuances: “Since leasing airtime is not the same thing as being the licensee of a television station, there is no restriction on ‘advertising’ except for political advertising. The legal precedence for this goes back to the early 1950s when television sponsors ‘owned’ a program and the airtime on a television station or network. It is important to note that the licensee is still legally responsible for the contents of what is being aired; that any violation of possible civil or criminal FCC chairman Brendan Carr (r.) at the Milken Institute’s Global Conference “We have these arcane, artificial limits on how many TV stations any one company can own. But of course, that doesn’t apply to big tech.” — Brendan Carr (Continued on Page 19) VIDEOAGE June 2025 U.S. Media Ownership
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(Continued From Cover) 18 sues were filled with ads from international fashion houses. There were so many ads that, in effect, they, on their own, constituted forms of editorial statements. Fashion ads also spill into daily publications’ magazines and specials, in-flight magazines, and coffee table books distributed at four- and five-star hotels. Luxury brands are everywhere it seems — except television. Once in a while we see TV ads for perfumes, but that is the extent of TV promotion for luxury brands, as clothing, accessories, dress shoes, headwear, horology (the luxury watch market), and the so-called F-segment (luxury cars) don’t use television. Instead, the luxury industry uses print media extensively for their marketing and sales campaigns. A number of years ago, a rep from Lamborghini was widely quoted as saying that his company did not spend money on TV advertising since their customers usually don’t have enough time to sit and watch TV. However, this statement conflicts with the notion that rich people don’t watch TV. After all, who else would watch such high-end TV fare as golf tournaments, the Triple Crown, or the Ascot Gold Cup? It has been widely reported that print media is on its deathbed, yet luxury brands flock to it like swarms of bees toward bright flowers — seemingly without ad budget limits, notwithstanding the sector’s financial woes. And they flock to print despite the fact that, already back in 2023, for example, consumers in the U.S. spent 76 percent less on magazines than in 2019, and there were 56 percent fewer subscriptions. Magazine circulation in the U.S. reportedly fell by 7.3 percent in 2024. One explanation for the success of print magazines with the luxury industry is that in the lobbies, offices, showrooms, and warehouses of fashion labels, print publications are prominently displayed for buyers to marvel at. Luxury houses now also trust social media influencers and fashionistas with their brands despite the fact that a good number of them can be considered “flamboyant,” but not elegant, since “elegance” traditionally means simplicity and subtlety — not flamboyance, dandyism, or in-your-face brands. Plus, as has happened in the past, influencers could be a source of embarrassment to brands. However, it has to be recognized that influencermarketing spending in the U.S. is expected to reach $10.52 billion in 2025 (up from $9.15 billion in 2024), and ad agencies want to tap into this growing marketing service. It is estimated that the global fashion sector is a $1.7 trillion industry. In comparison, the pharmaceutical sector is a $1.6 trillion global industry. However, while the former is under financial stress, the latter, which relies heavily on television advertising, is expected to reach $2.82 trillion by 2033. Looking at the specifics, Gucci’s revenue fell 26 percent in the third quarter of 2024 compared with the same period a year earlier. And Burberry recently reported that persisting luxury demand woes caused sales to fall by six percent. Capri Holdings, the fashion conglomerate created by John Idol that includes Michael Kors and Jimmy Choo, recently wrote down the value of the businesses by $600 million. Now owned by Prada, Versace’s revenue sank 15 percent in the period that ended December 28, 2024. However, Prada reported higher revenue for the first quarter, reaching 1.34 billion euro (U.S. $1.51 billion), compared to 1.19 billion euro in the same period in 2024, thus escaping a spending downturn that is haunting the rest of the luxury sector. Curiously, The New York Times reported in May that Miuccia Prada has been using her Miu Miu line as a platform to commission short films, and that Miu Miu is the “rare fashion brand to experience explosive growth at a time when sales in general are slowing.” In the U.S., luxury sales peaked in early 2022. A sales recovery expected this year was dowsed out by the tariff controversy. LVMH, the world’s largest luxury-goods group by revenue, reported U.S. sales down three percent from a year earlier in the first quarter. So far, 2025 is shaping up to be a down year for the luxury industry, with global sales expected to dip two percent. The Wall Street Journal recently reported that “high-end luxury brands may have taken their price increases too far.” LVMH funder Bernard Arnault was quoted in the WSJ as saying that a number of his brands have “increased their prices in a somewhat extravagant manner.” Indeed, an investigation last summer by a Milan, Italy prosecutor found that Dior (owned by LVMH) paid a supplier 53 euro (U.S. $60) to assemble a handbag that sold for 2,600 euro (U.S. $2,940). To provide another perspective on this quandary, VideoAge called upon Bruce Orosz, CEO of ACT Productions, a Miami Beach, Florida-based company that produces unique events for clients such as Vanity Fair and Hublot. Orosz is also IP Chairman of the Greater Miami Convention Visitors Bureau. “I’ve been thinking about this too,” said Orosz when asked about luxury brands shunning television advertising. He pointed out that “perfume is the exception. It’s the ‘entry-level’ luxury item and TV helps cast a wide emotional net.” He believes that the reason why the fashion industry, especially luxury brands, rarely use television for marketing and sales is because “TV feels too mass-market. Fashion, particularly at the luxury level, relies on exclusivity and mystique. TV’s broad reach doesn’t align with that. It can dilute a brand’s carefully crafted image.” Orosz added that “creative control [with TV advertising] is limited. A 30-second spot can’t match the mood, detail, or visual storytelling a brand can achieve in print, digital, or experiential formats.” Plus, he said that there are factors such as “high cost [and] low return. TV ads are expensive to produce and air, and fashion marketing isn’t about direct sales — it’s about building desire.” On the other hand, Orosz acknowledged that “fashion brands invest heavily in print and out-of-home (billboards, in-flight magazines, coffee table books) because these platforms offer prestige and audience targeting. [And] many print buys come bundled with editorial coverage or digital extensions. Strategic placement (like New York City billboards or luxury travel media) reinforces brand presence in key cultural moments.” Orosz concluded, “Yes, they do have big ad budgets, but they use them surgically. It’s not just about reach. It’s about context, environment, and brand alignment.” What is not generally understood is why the luxury brands don’t boost their standing with the demand-side economic principle. By boosting the interest of particular items with limited supply, prices would increase. To avoid the often-repeated maxim that luxury brands don’t want to be associated with pedestrian consumer products, their marketing strategy should focus only on items that the average consumer cannot afford to buy, such as the least expensive Hermes’ Birkin bag (its cheapest version is sold for $12,100). This way, magazines would be used to stimulate sales, and television to increase prices. In addition, luxury brands that are not in the category of “ultra-luxury” sell consumer products (like neckties, perfumes, gloves, umbrellas, and other accessories) that would benefit from TV advertising, as it would both generate sales and create demand for their Bruce Orosz, CEO of ACT Productions VIDEOAGE June 2025 Luxury TV Ads
19 high-end products, which due to their limited output, would increase prices. But ultimately, the luxury brand sector seems set on its marketing strategy, and the TV industry doesn’t seem to be able to present a convincing alternative. What VideoAge was able to glean from the TV industry were comparisons between local and network advertising for luxury brands, but these did not address the reason why luxury brands should be using television. Plus, U.S. networks’ ad sales executives did not answer VideoAge’s questions related to lack of luxury brands’ TV advertising. It has been reported that luxury brands have a reputation for catering to the superrich, but more than 50 percent of global luxury sales come from millions of middle-class shoppers who spend less than U.S. $2,300 a year on luxury goods. At this point, brands have to lure back middle-class consumers to jump-start growth. A report from Boston-based business consultant Bain & Company indicated that the luxury industry has lost 50 million customers since 2022, partly, it said, because hefty price increases put their goods out of reach for aspirational customers. However, international online store Mytheresa can sell $8,400 Bottega Veneta handbags, while luxury retail stores like Saks are struggling. Clearly, the luxury sector has to create demand with TV advertising, while generating sales with a supply-side marketing campaign with print media. (By Dom Serafini) law as a result of that leased program still goes to the licensee, whether a TV station airs a disclaimer or not. This includes the mandatory hourly station identification as well as technical issues such as required antenna power-output and frequency readings, etc. Consequently, any financial fine for such failure will be in the name of the licensee, not the programming source.” Schiffman continued: “Since the issue is not sale but simply leasing airtime, the FCC has no jurisdiction over the financial capability of the program content producer or distributor.” In order to secure airtime, a foreigner signs a financial obligation to a U.S. citizen who can then factor the contract for a bank loan in the U.S. with which to finance the acquisition or the creation of a TV station. This way the financing comes from the U.S. and not from the foreigner. “In terms of private financing arrangements between the station licensee and the time buyer,” said Schiffman, “it is strictly up to a bank to decide whether such an ‘account receivable’ is viable and is legally sufficient in case of breach of terms.” Foreign Media Ownership In The U.S. May Be Possible (Continued From Page 16) VIDEOAGE June 2025 Luxury TV Ads CEE’s #1 content market now has more reasons to attend. Screenings and sessions expand to the iconic Dorothea New to the agenda: NATPE Honors Europe Realscreen joins the agenda with a spotlight on formats Get a jump on planning; register now for earlybird savings. budapest.natpe.com Bigger is better June 23-26, 2025 InterContinental Hotel
(Continued From Cover) 20 at the NATPE Budapest market will take place on opening day, Monday, June 23, 2025, at the Dorothea Hotel, which is located just around the corner from the InterContinental Hotel (IC), the traditional venue for NATPE. Over 85 exhibiting companies and more than 350 content buyers have already confirmed their participation, which reaffirms NATPE Budapest as the principal CEE market, even though there will be some erosion, mostly from acquisition executives from Poland and Croatia. Registration and the market floor will still be at the IC, while all conferences will take place at the Dorothea on Tuesday and Wednesday. Monday will also see the opening party at the Corso Terrace of the InterContinental Hotel, and the newly introduced NATPE Honors celebration at the Dorothea, while Tuesday evening is set for the popular Boat Party. The market will close at 1 p.m. on Thursday, June 26. Reached via e-mail, Laszlo Fulop, Senior Acquisition and Contract manager, I Kids Channels at AMC Networks International in Budapest, said: “I sincerely hope to encounter a wealth of new content at NATPE, similar to previous years, especially French content. My focus is on kids’ content, ranging from toddler to five-to-10-year-olds in terms of target audience, from edutainment to comedy-adventure content-wise for our kids’ channels, JimJam and Minimax. Naturally, content quality is our top priority, but exclusivity is also crucial for us, both on linear and non-linear fronts. We value VoD rights and a minimum three-year license period.” Fulop also explained that his “calendar is typically filled with meetings arranged well in advance, thanks to the popularity of NATPE Budapest. Numerous studios and independent distributors from around the world participate in this event. However, I also enjoy walking through the stands between meetings, engaging in spontaneous conversations without pre-scheduled appointments.” Fulop also touched on the subject of the few companies who screen outside the NATPE venue: “In fact,” he said, “studio screenings are usually held in very atmospheric locations, providing a true cinema experience with the scent of popcorn during the event. Therefore, I consider it a great idea.” Caroline Hurmson, senior director, Content Strategy, Acquisition and Sales, at the London office of Greece’s Antenna Group, also offered an overall view. “NATPE is the perfect market to view content from the U.S., Europe, LatAm, and Asia, without missing out on the smaller productions and companies. We are no longer only relying on the traditional U.S. series and broadcasting season in CEE thanks to the high-quality productions from all around the world.” About distribution companies screening outside the NATPE venue, Hurmson commented: “Screenings should happen on the Monday and Tuesday morning only to give the smaller distributors a chance to meet buyers. However, some of us buyers have been to L.A. Screenings before and at NATPE we can focus more on meeting different partners and screening new content, instead of running from external screening venues back to the NATPE main area.” As for her on-the-floor strategy, Hurmson said: “As buyer and seller my meetings are very much timed and scheduled. I rarely visit distributors on the spot, but I do send members of our team out to do research and if something interesting catches their eye they do approach partners to get more information.” About particular requirements for the content acquired, Hurmson explained: “Our audience is focused on procedurals and soft crime, evergreens, and female focused drama. We do buy non-exclusive, but prefer an exclusive license if possible — it’s a must-have for premieres, first-runs, and for some of the cult series from the past. Content can be over-exposed in CEE and channels did lose audience loyalty over the past few years, which is especially hard for the traditional linear channels like ours. By making ourselves the home of certain content we are more attractive to the viewers. Our slots are the standard commercial ones. Series over the standard 60 minutes are hard to schedule and not our priority.” Here’s a summary of highlights of NATPE Budapest 2025: The Opening Keynote is from YouTube’s Andreas Briese, Country director for Germany; Regional director for Central and Northern Europe. Briese will share insights tailored to the CEE market, focusing on how creators and media companies can leverage YouTube to grow audiences and monetize content. NATPE Honors Europe – A new initiative celebrating the leaders who are reshaping the European media landscape. These awards recognize innovation, leadership, and impact in the content space. Pitch & Play LIVE! – This format competition shines a spotlight on the CEE region’s most original format concepts with international potential, in an interactive showcase. CEE Breakout Hits – Spotlighting the topperforming new series across CEE markets, analyzing the drivers behind their success, and what they signal for the future of programming and acquisition strategies. Formats Track – An event for unscripted and format buyers and sellers. This session dives into the evolving world of format transcreation, and how local success stories can be scaled for global audiences. Pictured on the cover: NATPE’s Claire Macdonald and Mary Maddever (photo Daniel Vegal) Laszlo Fulop, AMC Networks International YouTube’s Andreas Briese will deliver the opening keynote at NATPE Budapest “Screenings should happen on the Monday and Tuesday morning only to give the smaller distributors a chance to meet buyers.” — Caroline Hurmson, Antenna Group VIDEOAGE June 2025 CEE Markets C M Y CM MY CY CMY K
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