INTERNATIONAL www.VideoAge.org THE BUSINESS JOURNAL OF FILM, BROADCASTING, STREAMING, PRODUCTION, DISTRIBUTION June/July 2024 - VOL. 44 NO. 4 - $9.75 (Continued on Page 18) Direct-to-Consumer: New TV Biz Mantra With Pitfalls The concept seemed simple enough. And it was fully adopted by streamers. According to the April 26, 2024 edition of The Wall Street Journal: “If you’re selling something for $100 to a retailer and they’re selling it on for $200 to a consumer, you could have all of that yourself if you sell directly to customers.” In reality, the direct-to-consumer concept is more complex, and the streamers are starting to feel its true impact. Meanwhile, the business model has also been adopted by manufacturers, which in our case can be compared to content producers. Over these past few years, the streaming business model has changed, from binge to weekly releases, from ad-free to advertising-based programming, from exclusive to bundling, but it is becoming clear that the DTC busi- (Continued on Page 16) During the recent SXSW Conference in March one particular panel drew the press’s attention: “Building Brands in the Unhappiness Era.” Apparently, we are living in the grip of an unhappiness crisis and, according to the panelists, it’s affecting “almost every area of the economy.” SXSW stands for South by Southwest and it is a conference held in Austin, Texas, that, according to its official description, “celebrates Television in an Era of Viewer Unhappiness (Continued on Page 14) Asked why they would be attending three Central and Eastern European TV markets in the month of June, several international TV content distributors answered: “Because that’s where buyers are!” SimiCEE Mart Attack: Three Events in One Month L.A. Screenings: The show came back, ready for showbiz Real location spots for The Sopranos: Not an easy task The U.K.’s Freely TV could be expensive for some viewers My 2¢: Bad sound is only a challenge for streaming content Page 12 Page 8 Page 4 Page 3 vchannelsmedia.com
3 My 2¢ June 2024 MAIN OFFICES 216 EAST 75TH STREET NEW YORK, NY 10021 TEL: (212) 288-3933 WWW.VIDEOAGEINTERNATIONAL.COM WWW.VIDEOAGE.ORG P.O. BOX 25282 LOS ANGELES, CA 90025 VIALE ABRUZZI 30 20131 MILAN, ITALY EDITOR-IN-CHIEF DOM SERAFINI EDITORIAL TEAM SARA ALESSI (NY) BILL BRIOUX (CANADA) 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. 2024 On August 17, 2023, the Water Cooler, VideoAge’s twicea-week digital feature, ran an article titled “Losing the Good Sounds of Voices.” Little did we know that the loss of good sound is a problem that doesn’t only affect radio voices, but is becoming endemic to made-for-streaming television series as well. Try this experiment at home: Tune in first to a broadcast network, such as New York City’s Channel 2 (CBS), Channel 4 (NBC), Channel 5 (FOX), or Channel 7 (ABC), either during a local hour or during a network show. Then switch to any streaming service’s series, leaving the sound level untouched. You will inevitably, like me, reach for the remote control to increase the sound level. You might even have to double the volume. Since the sound will still come out garbled and the dialogue will come out as whispers, you will then activate the subtitles, hoping that the words will be easy to read (meaning not white lettering against a white background or black fonts against a black backdrop). There is also the problem of the font being too thin and unreadable, but this is a different issue for a future editorial. The sound problem is so pervasive in streaming services that 40 percent of Netflix viewers reportedly use subtitles regularly, while 80 percent activate them at least once a month. Now, there are several reasons, or justifications, for the bad sound, which is a known issue among sound engineers in the entertainment industry. Many say that it is generated at the production level, and/or at the reception level, but neither one makes sense since these issues are not manifested with made-for-broadcast shows. Indeed, in those TV series the sound is good even when shown on streaming services. At the production level, the justifications for the mumbling sounds are: foreign accents and portable microphones that let actors speak more softly. Then at the mixing the sounds are optimized for a surround sound reproduction, which is fantastic for explosions, but not so great for voices. Joe Lewis, head of Audio at the London-based The Voiceover Gallery, an agency that sources voiceover talent, sound engineers, and translators, had this to say: “Too many people use great mics but don’t pay attention to the actual sound. The gear is there to assist you, it won’t do your job for you.” He continued: “Over-use of compression and EQ [equalization],” are also issues. “Although these are great tools they are often misunderstood, and over-processed sounds can result in muddy sounds.” For the bad sound at home, the new TV sets are also to blame. As those sets have thinned in the era of HD screens, most internal speakers are built at the bottom of the set or backward from the rear. That means that the sound isn’t directly going to viewers, and may be getting dampened or absorbed by the TV set’s surroundings. Smart TV audio settings, which offer the option to automatically control the volume, could potentially help since they can turn the dynamic range on or off, thereby reducing the difference between loud and soft sounds. But the fact remains that the bad sound affects only TV shows for streaming services and not those broadcast on linear television. Dom Serafini Bad sound only affects streaming TV series — not shows broadcast on linear television channels. Despite this being a well-known problem, some streamers don’t seem to want to solve it. “Can you make me sound trustworthy?” Forty percent of Netflix viewers reportedly use subtitles.
4 World VIDEOAGE June 2024 (Continued on Page 6) One reason for the move might be due to concerns about what the U.K. entities have seen in the U.S., that when traditional TV outlets were brought under streamer umbrellas, many lost audiences. And just as importantly, there was a decrease in advertising revenues. It’s a great cost-cutting move for the BBC in particular, as it will soon lose revenue from the cessation of the national television license fee (in 2027), which is currently paid by U.K. residents. The other partners are all commercial entities but they too have been affected by higher operating costs, advertising revenue declines, and having to slash programs. How much it will affect the U.K.’s Channel 5 remains to be seen. It’s owned and operated by Channel 5 Broadcasting Limited, and is a wholly-owned subsidiary of Paramount Global’s U.K. and Australia division, therefore a sister station of the CBS TV network in the U.S. A service offering live and on-demand content via an Internet connection fits in to modern connectivity. According to a statement by Freely, it wants to “futureproof” public service broadcasting, putting on-demand, live, current, and past content together on a single service and allow viewers to pause, stop, or even rewind live content at their bidding. From the information given thus far it does not appear to require a Roku-like connection device, with everything being delivered directly through broadband. However, this may cause a problem for the elderly, many of whom still rely on the roof antenna for their TV service and don’t have a computer, or any Internet service. In terms of Freely’s business model, it is as yet unclear how it will be funded as no information about its financing has been made public. However, many are speculating that it will either be funded by commercials, product integration, or a new license fee that isn’t listed as a license fee. (By Mike Reynolds) The BBC, along with fellow U.K. broadcasters ITV, Channel 4, and Channel 5 are banding together to form Freely, a free streaming service. The channel will be available on the Everyone TV platform for households with smart TVs. Scottish (STV) and Welsh (S4C) channels will also be included in the package. At the moment, no one is talking about whether U.K. radio outlets will join them. “The launch of Freely is a historic moment for U.K. television,” said Kieran Clifton, director of BBC Distribution & Business Development. “Collaboration between the U.K. public service broadcasters is critical to connecting and protecting all audiences as we transition towards the streaming era — and delivering live TV over broadband for free is a ground-breaking innovation that will future-proof public service broadcasting.” The U.K.’s Freely TV Could be Expensive For Some Viewers G00540_VIDEO_AGE_JUNIOR_PAGE_185x230mm_THE_ACCIDENTAL_PRESIDENT_PRINT.indd 1 06/06/2024 11:40
6 World VIDEOAGE June 2024 (Continued From Page 4) er generative AI chat tools are made using text, images, music, and videos collected from material that is copyrighted. In states like Tennessee there is now a law that makes people’s voices protected personal rights. Even Disney is reportedly dealing with Microsoft for training AI tools with its library. In the meanwhile, news outlets around the world are also rushing to feature AI reports, eager to show off their knowledge of AI jargon. However, in the rush to go to press, they seem to have forgotten many of their AI basics. We’re coming to the rescue with a short, descriptive glossary. Chatbot: A software application that is designed to simulate human conversation through text or voice commands. ChatGPT: A chatbot developed by OpenAI and launched in 2022. Copilot: A chatbot developed by Microsoft (replacing Cortana). Gemini: A chatbot developed by Google (formerly known as Bard). Generative AI: A type of technology that uses AI to create content, including text, video, and images. A generative AI system is trained using large amounts of data so that it can find patterns for generating new content. GPT: Generative Pre-trained Transformers, OpenAI’s proprietary type of Large Language Model tool. Large Language Model (LLM): An AI model that has been trained on large amounts of text so that it can understand language and generate human-like text. Machine Learning (ML): The field of study that focuses on algorithms able to “learn” by extracting patterns from a large body of data. OpenAI: An American artificial intelligence research organization founded in 2015. In the entertainment biz, Artificial Intelligence (AI) is fast becoming a new, licensable window for audiovisual content. Thus, AI companies and AI start-ups are looking to train their generative AI chats with sounds and images from audiovisual works and press reports that are licensed. This is something that investors are also demanding in order to avoid lawsuits. On May 22, 2024, The Wall Street Journal struck a content-licensing partnership with Open AI worth some $250 million over five years. Earlier, a Los Angeles producer-distributor who did not want to be named licensed his lowbudget film catalog to one AI company for $150,000. “And there are 450 more AI companies in California alone to approach,” he said. AI companies are making the rounds with U.S. studios and producers to discuss potential licensing deals. This is because the language models that powAI Terminology: An Intelligent List The Weight of VideoAge Reaches unusual HEIGHTS Serving the international TV industry in good and in challenging times with print Issues, PDF editions, weekly online features, and daily e-newsletters. www.VideoAge.org www.VideoAgeDaily.com
8 Book Review VIDEOAGE June 2024 With years of insight into different areas of the entertainment business, the author walks down memory lane and serves up heartfelt and hilarious anecdotes from working behind the scenes on prestige TV’s most darling TV show, The Sopranos. Mark Kamine Shares Insights From His Days Working On The Sopranos By Luis Polanco “I ’ve always been anxious, fearful, competitive, envious and angry.” So goes the epigraph by David Chase — the creator, head writer, and executive producer of the HBO heavyweight The Sopranos — for Mark Kamine’s On Locations: Lessons Learned from My Life On Set with The Sopranos and in the Film Industry (208 pgs, Steerforth, 2024, and $25). Anxiety, fear, competition, envy, and anger — these serve not only as excellent motivators for characters in a psychological crime drama about the ruthless feuding between mob families but also, on a much less dramatic scale, for people in real life, in and out of the entertainment industry. With a storyteller’s confidence and expertise, Kamine weaves these emotional and poignant elements to depict an honest portrayal of the ambition, frustration, and hilarity of life as a location manager for TV. Today, Kamine might best be known as an award-winning executive producer on the critically acclaimed and razor-sharp black comedy The White Lotus, a series set around the fictional White Lotus resort. Mike White, creator, director, and screenwriter of The White Lotus, as well as the HBO series Enlighted, wrote the memoir’s foreword, in which he describes the delight of Mark Kamine entering his life and of finding a writerly disposition in someone else in the TV biz (“Mark engages everyone with a writer’s curiosity and respect,” he writes). Kamine also has written discerning book reviews for The New York Times and the Times Literary Supplement, among other publications. The subject of On Locations finds Kamine revisiting moments across his career, especially during his time as a location manager for The Sopranos, a role he held for all seven seasons of the show. Mark Kamine begins his memoir by relating an anecdote of one of his father’s depressive spells. His father — who grew up near Paterson, New Jersey, served in Korea, went to college and law school, and had his own law practice — wouldn’t get out of bed for a number of weeks. When Kamine entered his father’s room, there his father was, supine, mulling over the decision he made to move his office to a new strip mall. For some readers, the opening chapter may remind them of the beginning of The Sopranos, where the gruff patriarch Tony Soprano faces his own existential crisis in the opening episode of the show. Kamine blends moments from what’s going on in his family life throughout the book, as the book is structured around chapters that alternate between his involvement in the show and what happened between seasons. When Kamine joined The Sopranos, just after the pilot, he recalled turning up to Silvercup Studios in New York City and, first thing’s first, diving into the tricky relationships and difficult issues of his job. The owner of the house where Sopranos was shot was complaining about lighting set up by the crew. Some scenes were shot at a real strip club named Satin Dolls. Kamine described its owner as “a bulky bulldog of a man,” who behaved as much in business. “I will see [club owner] Tony push people and rules and regulations as far as he can to take away as much cash as can be made,” Kamine remembers. Starting out, there was also the issue of managing 16-hour workdays, which sometimes meant clocking out at 4 or 5 in the morning. On Locations is full of surprising and compelling anecdotes, capturing both the demanding aspects of the entertainment business and the joyous ones with coworkers and collaborators. In the book’s concise chapters, readers will find mention of The Sopranos creator David Chase, the underappreciated behind-the-scenes crew, and the talented cast, including reminiscences of the beloved James Gandolfini, Edie Falco, and season six special guest Lauren Bacall, among many others. In the years after The Sopranos, Kamine grew into a career as a production manager and earned production credits on films such as Silver Linings Playbook, American Hustle, and Ted, among others. After the Covid-19 pandemic disrupted the film and television industries, he found himself landing an EP role on The White Lotus. If On Locations is any indication of his future, more writing might be on the horizon, which would be a boon for readers everywhere. On Locations is full of surprising and compelling anecdotes, capturing both the demanding aspects of the entertainment business and the joyous ones with coworkers and collaborators.
Enjoy The Drama @Suite#223 Enjoy The Drama @Suite#223
10 VIDEOAGE June 2024 Data, Political Correctness, Sequels, Prequels, Reboots: A Must No More Trends & Countertrends These days, in some sectors, the decision-making process is not influenced by personal preferences. Instead, the powers that be rely on data-driven insights to guide their choices. Data miners say that streaming, for example, with its ability to collect data from hundreds of millions of daily searches, provides an unparalleled source of information. But even though data is now the new gold standard for the entertainment biz — with “data rooms” and “data executives” popping up all over the corporate aisles — there are some potential problems with data. Most importantly, what if the data is wrong? Take the algorithm used by the streamers, for example. Content creators often complain that when their new programs premiere they don’t show up on streamers’ home pages. This is because the streamers’ home screens highlight content that corresponds to a given user’s viewing patterns. But viewers often fail to select their ideal shows because of the difficulties in finding them. This concept is known as “viewer fatigue.” Instead, they settle for the least objectionable new show, until, after one or two episodes, they simply turn the TV off because said show turns out to be unwatchable. Besides, by relying on data, even if it’s on target, the same suggested program selection line-up could, in the long run, cause the effect that the superhero genre is having on moviegoers: narcolepsy. Another problem is that accounts are shared among people with different tastes, so recommendations tend to be misguided. Recently, Apple Music developed a ranking of the 100 best albums ever made by skipping data and instead relying on the opinions of 250 people. The limitations of data were also demonstrated in 2023 when the onetime “sure winners,” like Marvel’s sequel films, failed to earn the expected $100 million at the U.S. box office, because up until recently, nothing moved in Hollywood without first knowing who wanted what and when. The “sure bets” in 2023 were reboots and sequels like Indiana Jones and the Dial of Destiny, Fast X, Creed III, Mission Impossible 7, and Scream VI, and they took the short stick from consumers. In 2024, the list of sequels is even longer, and includes: Godzilla x Kong: The New Empire (a sequel to 2021’s Godzilla Vs. Kong), which was released in March by Japan’s Toho and Warner Bros.; Dune: Part Two, also released in March by Warner Bros.; Kingdom of the Planet of the Apes, released by 20th Century (a Disney company) in May as a sequel to the 2017 movie War for the Planet of the Apes; Bad Boys: Ride or Die, a sequel to 2020’s Bad Boys for Life, distributed by Sony Pictures in June: Deadpool & Wolverine (a sequel to Deadpool’s 2016 and 2018 movies), to be released by Disney in July; Inside Out 2, released by Disney in June; Despicable Me 4, to be released by Universal in July; Twisters (an update of 1996’s Twister), to be released by Universal in July; Beetlejuice Beetlejuice (a sequel to 1988’s Beetlejuice), to be released by Warner Bros. in September; and Joker: Folie a Deux (a sequel to 2019’s Joker), to be released by Warner Bros. in October. The “sure bets” this year are mostly prequels. Soon we’ll have Mufasa: The Lion King, a prequel to the 1994 Disney movie, The Lion King, which will be released in December; and Apartment 7A, a prequel to Rosemary’s Baby, which will be released by Paramount in the fall of 2024. We’ll get back to the origins with Transformers One, to be released by Paramount in September. Other spin-off prequels include A Quiet Place: Day One, coming from Paramount in June (with A Quiet Place Part III coming out in 2025); and Furiosa: A Mad Max Saga, which was released by Warner Bros. in May. If this new wave turns out to be successful, let’s be prepared for other variations on successful stories, like the (newly coined) “circumquel,” wherein the story revolves around both the time before and after the main story; the “interquel,” meaning the movie bridges the gap between two stories; and the “paraquel,” which will tell two parallel stories. However, there are signs that fresh movies will eventually come back. Disney’s Bob Iger, for one, admitted that his studios “have indulged in too many sequels.” And in 2023, originals such as Barbie and Oppenheimer became favorites worldwide. Indeed, in spite of data, or in the absence of data, original movies found success with audiences both in theaters and on television. For example, the documentary 20 Days in Mariupol, which documented the atrocities of Putin’s forces in Ukraine, was a big success. There was also Flora and Son (on Apple TV+) and Taylor Swift: The Eras Tour (VoD), and in cinemas, there was The Zone of Interest. All of these were favorites with audiences. Together with “data,” filmmakers, programmers, and commissioners also had the tendency to apply the political correctness mantra that put all kinds of creative limitations on film and TV content. In the case of Disney’s movie Wish, for example, this did not work at the box office, where the film generated just $180 million worldwide against a $200 million cost, prompting Disney to declare that the new priority is “to entertain.” The animated film was described as a “woke disaster” by several news outlets. And, in light of the theatrical success of If (distributed by Paramount), the movie trend of “imaginaries,” about imaginary friends, is returning, and this time includes children’s movies, whereas in the past only adults — see Psycho’s Norman Bates — seemed to have imaginary friends. Today’s “imaginary movies” include Ricky Stanicky (MGM Studios), The Imaginary (distributed by Toho), My Secret Country (a documentary by Marlo McKenzie from Parker Film Company), and the simply titled Imaginary (distributed by Lionsgate). The imaginaries trend is considered a great vehicle for storytelling that doesn’t rely on any “data” input. There are signs that fresh movies will eventually come back. Disney’s Bob Iger, for one, admitted that his studios “have indulged in too many sequels.”
12 VIDEOAGE June 2024 L.A. Screenings Review Good Content Output For Co-Exclusive Licensing Overall, the 2024 edition of the L.A. Screenings was smaller than past editions, but better in terms of content quality (albeit with reduced output), licensing opportunities, and recreational activities. Since companies cut the number of acquisition executives travelling to Hollywood to see the U.S. studios’ offerings for the new season, studios increased the number of parties, cocktails, and luncheons to keep the attraction alive, reasoning that few buyers would miss events on the studio lots. This year, for several reasons, reps for the U.S. studios were anxious to take over the L.A. Screenings from the independents. They started on Saturday morning at Paramount. Then it was Lionsgate’s turn (at a Westwood theater location) in the afternoon. That continued into the evening with a Lionsgate party at the Santa Monica Pier, providing just enough time for Argentina’s Telefilms to conclude the L.A. Screenings Independents event by staging its own Saturday afternoon screenings and party at the Fairmont Century Plaza Hotel, the venue for the L.A. Screenings Independents, located in the Century City part of Los Angeles. Studio executives were enthusiastic about showcasing their own new series for the 2024-2025 season for broadcast, cable, and streaming TV outlets that are now back to licensing internationally. However, the reduced amount of new, licensable content from the studios, as well as the increased cost of accommodations in Los Angeles, has cut the number of acquisition companies who come to the event from Latin America, including a reduced number of LatAm buyers based in Miami, while other regions sent fewer buyers from each company. MIP Cancun has also contributed to changing the “geography,” since some buyers from Latin America now skip the L.A. Screenings in favor of the November Mexican market, which is staged with all-expenses-paid for most of them by the organizers. Content output quality was good all across, but the licensing rights are checkered, in the sense that they are not available right away in territories where the studios’ streaming services operate. In certain territories there was even the oxymoronic term of “co-exclusive” rights. Lionsgate screened Hal & Harper, The Hunting Wives, Fake, and Border Line. Paramount Global Content Distribution screened three new series, plus showed clips of 12 new titles in post-production, including Transformers One (which required 3D glasses) and clips from Republic Pictures’ (a Paramount company) six titles. In terms of full episodes, Paramount screened The Darkness; the drama Happy Face, starring Dennis Quaid and Annaleigh Ashford; and darkly comedic drama Average Joe, starring Deon Cole. At Disney, buyers screened High Potential, Clipped, The Veil, and Under the Bridge. The Latin contingent was also shown three local productions. Acquisition executives’ regions were identified by the color of the ribbons on their badges. In terms of U.S. networks, NBC added three new series: Brilliant Minds, St. Denis Medical, and Happy’s Place; ABC picked up High Potential, Scamanda, and Doctor Odyssey; and FOX’s new series are Rescue: Hi-Surf, DOC, Going Dutch, Universal Basic Guys, and Murder in a Small Town. From CBS there are NCIS: Origins, Matlock, Poppa’s House, and Georgie & Mandy’s First Marriage. Watson will debut on CBS midseason. As usual, the L.A. Screenings were divided into two parts. First the traditional independent screenings at the Century Plaza Hotel, then the studio screenings on their lots. This year a third element returned to the fairgrounds: entertainment in the form of parties and cocktails. One could even say that fun was back on the backlots. However, it has reportedly become difficult to have a good working relationship with the management over at the Fairmont Century Plaza Hotel. It is widely hoped that Isabella Marquez, who organizes the independent portion of the L.A. Screenings, can find a different venue with accommodating characteristics (including lower daily rates). Nevertheless, over 70 companies still exhibited at the Century Plaza for the indie L.A. Screenings 2024, both in its suites and at tables in the hall below the ground floor. The same number of TV sales companies were in attendance as last year, with a few newcomers, including Rabbit Films, Screenbright Media, and Seriella, in addition to returning companies that skipped the last L.A. event, such as Electric Entertainment and Latin Media. More than 130 buyers, mostly from Latin America, registered for the indie segment. Three of the six major U.S. studios (Disney, NBCUniversal, and Paramount) also had their suites at the Century Plaza, which remained open throughout the duration of the screenings, while those of the indies opened for business on May 14 and stayed open until May 17, before the studios even started their screenings on their lots. The studios’ screenings began on Saturday, May 18, with the Latins at Paramount. Next was NBCUniversal on Sunday, then WBD on Monday, Sony Pictures on Tuesday, and Disney on Wednesday. Buying contingents from other territories mingled at various studios throughout the week, with the event ending on Thursday, May 23. Missing at the Century Plaza was the Content L.A. market, which was canceled (although officials claim it’s only been rescheduled for next year) in March, after first announcing its dates as May 16-17. The host of recreational activities that took place during the Screenings started on Thursday, May 16 with a BBC party. The evening of Saturday, May 18, saw lots of action, with a Telefilms screening and cocktail, an NBCUniversal drinks party, and a Lionsgate party. Fox Studios hosted a food fiesta on Sunday afternoon, and in the evening, Paramount had a movie premiere and cocktail party. On Monday evening, Warner Bros. and MGM threw separate drinks parties. Finally, on Tuesday, drinks and food were had on the Disney lot, while Sony served cocktails after its daytime screenings, which were scheduled to end at 5:30 p.m.
INTERNATIONAL SALES Delmar Andrade dandrade@recordtv.com.br www.recordtvnetwork.com Thiago Castro tbcastro@recordtv.com.br
VIDEOAGE June 2024 CEE Mart Attack 14 (Continued from Cover) larly, in 1924, when asked why he wanted to climb Mount Everest, George Mallory answered: “Because it is there.” And in 1933 when asked why he robbed banks, Willie Sutton responded: “Because that’s where the money is.” Now, we know that both Mallory and Sutton did not fare well in their attempts, but the verdict is still out for Content Warsaw (to be held June 3-6), the New Europe Market (NEM) in Dubrovnik, Croatia (happening June 10-13), and NATPE Budapest (June 24-27). Each of the three CEE markets promises a good number of buyers, top-level conferences, many exhibitors, and plenty of recreational activities. But not all the distributors are happy about the three consecutive markets, including those who will be attending all three of them. “There is now a plethora of trade markets, and we need to make choices for budgets and timing,” said Sophie Ferron, co-founder and president of GRB Media Ranch. “One Eastern European market is plenty. NATPE invited me to speak at the event, and NATPE has been in Budapest for several years with some great buyers and broadcasters in attendance.” Despite this, GRB Media Ranch will not have an exhibition presence at any of the three markets. “We are [participating] at all three markets, but I’m going to attend NEM as a speaker,” said Muge Akar, ATV’s head of Sales. “We will not have a booth there. For Content and NATPE we will be exhibiting.” “We decided to attend [all three] markets because they’re dynamic centers for our industry in Central and Eastern Europe,” said Sinem Aliskan, Inter Medya’s senior Sales and Communication manager. “We will have two tables at NATPE Budapest, [and] two people will be there selling finished content, with very few new titles being unveiled,” said Deena Stern from Fox Entertainment Global. Rochella Salvador, officer-in-charge and senior Sales manager, GMA Network, Worldwide Division, commented, “We decided to attend NATPE Budapest because top-tier buyers and exhibitors from CEE will attend. Moreover, with several of our existing clients slated to attend NATPE Budapest, it would be an excellent opportunity to reconnect and discuss their new programming requirements.” Elif Tatoğlu, Distribution Strategy & Sales director at Kanal D, reported: “We are attending [only] NEM and NATPE.” Nonetheless, the international TV sector is preparing for another faceoff this year, with Canada’s Brunico (NATPE Budapest) squaring off against the U.K.’s C21 (Content Warsaw), with NEM cleverly leaving itself out of the fray, simply and without fanfare reporting that a record 47 exhibitors and 70 speakers will be in attendance for its theme: “Content, Telcos, and Technology.” On the other hand, both Content and NATPE are promising stellar events. Last year, the two markets battled each other in the same Hungarian capital during the same period. NATPE Budapest took place June 19-22 at the InterContinental, while Content Budapest was held June 27-29 at the nearby Kempinski Hotel. Officially, Content Warsaw replaces Content Budapest, “as Warsaw is considered a more appropriate location for an effective CEE event,” according to Content’s website. In addition, “Content Warsaw is set to bring a fresh three-day market, screenings, and conference to the heart of the CEE region [and will take place] at Kinogram, a state-of-theart cinema complex. Kinogram [in Warsaw] is home to four surround-sound cinemas, an event space, and a range of meeting rooms and networking areas.” Content’s CEE Screenings will run across the three days, “allowing distributors to showcase their programming to buyers from across the CEE region,” said the official website statement. On Wednesday, June 5, Content Warsaw “will host a cocktail to celebrate 100 leading executives from channels, platforms, and producers who are redefining the content business across Central and Eastern Europe. In addition, there will be a range of parties, lunches, and dinners around the event, along with the opportunity to build and customize branded events by our trusted content and media partners.” For its part, NATPE Budapest highlighted its “by the numbers,” which were given as 400 buyers and 125 exhibitors from 65 countries. The event is still taking place in its traditional InterContinental Hotel. The NATPE programs calls for an opening night party on Monday, June 24, a Tuesday boat party, and a Wednesday closing party. To that, a Content official reached by VideoAge replied, “You can mention the 220-plus buyers from 30-plus countries. You can also say 500 delegates and 50 global exhibitors.” Different this year is the reduced number of off-site screenings traditionally held by the Hollywood studios, which infuriated NATPE’s exhibitors, who saw buyers leaving the InterContinental hotel for some nearby theaters. Claire Macdonald, NATPE Budapest’s executive director, who VideoAge met at the L.A. Screenings, reported that just “Sony Pictures is hosting an off-site screening, while A+E, Antenna, and ZDF are hosting on-site screenings.” In terms of strategy, GRB Media Ranch’s Ferron explained: “We are quite sensitive of the challenges and unsettling times that the CEE territory is experiencing with the wars going on, and the affected budget concerns, and will work with the region to find a way to work together. We also need to strike the right balance between localization and globalization. While audiences in this region are increasingly drawn to global content, there remains a strong demand for localized programming that resonates with their cultural and linguistic preference. Thus, the importance of formats. The economic landscape in the CEE region varies widely between countries so balancing pricing strategies to make content accessible while also ensuring profitability can be a delicate task for distributors.” To Inter Medya’s Sinem Aliskan, “While economic and political issues in some countries can impact various sectors, the CEE region remains crucial for our business. In addition to our continuous sales, we see especially growing interest in remakes and coproductions lately.” Similarly, GMA Network’s Rochella Salvador, said: “Central and Eastern European nations are key buyers of drama series. As we expand our presence in Europe, attending this market to establish our brand and showcase GMA’s content is important. This proactive approach aligns with the network’s objective of expanding its presence in Europe and strengthening its position in the global market. Through strategic engagement and effectively showcasing its titles, GMA Network aims to establish itself as the premier provider of Filipino content in Central and Eastern Europe.” As far as new content is concerned, Inter Medya’s Aliskan reported, “We’ll be introducing new content at both the Warsaw and Budapest markets. Among our highlights is our latest co-production with Mega Global Entertainment, Love and Pride. Additionally, as representatives of Gain, one of Turkey’s largest VoD platforms, we’re to present over 10 of their titles, including Hamlet and Like There Is No Tomorrow.” GRB Media Ranch’s Ferron remarked that “out of our extensive catalog of over 5,000 hours of premium scripted, unscripted, and formats, our hottest programs right now are three political documentaries, Unfit: The Psychology of Donald Trump; God & Country; and Untruth. In a historic U.S. election year where the country is sharply divided, and Donald Trump is currently facing four separate criminal indictments — a first for a former, and possibly future, U.S. President, these riveting political documentaries are mandatory viewing!” Finally, GMA Network’s Salvador will be “presenting two offerings at NATPE Budapest: Royal Blood, which delves into the tale of the estranged son of a business tycoon, and Luv Is: Love At First Read, a blend of romance and comedy.”
1964 “Screenings” 1978 “May Screenings” The L.A. Screenings Evolution In the beginning... 1983... a new name! www.videoageinternational.net/new-us-tv-season-guide 2002
VIDEOAGE June 2024 Viewer Unhappiness 16 the convergence of tech, film, music, education, and culture.” Apparently, unhappiness is growing in the U.S. and around the world — and has been for the past 10-15 years. Specifically, Americans are unhappy, concerned about inflation, global conflicts, and an acrimonious presidential election. In March 2024, the U.S. fell off a list of the top 20 happiest countries compiled by the World Happiness Report. According to a study called Future Consumer Index 13, some 95 percent of Americans are concerned about the rising costs of living, while 77 percent are concerned about their access to basic necessities. And yet, sales of products across many categories remain strong. Similarly, in a recent Wall Street Journal poll, 74 percent of respondents in the U.S. said inflation has moved up in the past year, when in fact it was moderated. Taking a look at what TV and film entities are showing audiences, one has to wonder whether the entertainment sector plays some part in this unhappy trend. According to Bill Abbott, formerly at Hallmark and now president and chief executive officer of Great American Media, two outlets known for their positive content, “Each of us (TV content providers and broadcasters) must be intentional in choosing (content) positively. Media literacy and controlling what comes into our home is as much viewer responsibility as it is media responsibility. Yes, we, as an industry, should reflect on and be conscious of, the content we are creating.” He sees the success of what he puts on air to growing audience numbers and advertisers to the channel and reveals, “Most blue-chip advertisers want to invest in content that reflects the positivity of their brands.” As Abbott reminds us, “In the past we largely received news through print media and TV (along with radio). Now there are many more platforms, like digital and social media, which are largely unregulated portals, with the potential to expose people to undesirable content,” which is likely to cause unhappiness. According to Pamela Rutledge, director of the Media Psychology Research Center in Newport Beach, California, “People who are anxious, depressed, or angry are hypersensitive to negative input and will be more reactive. This is a function of the survival instinct — when you already feel under ‘attack,’ you are primed to watch for more... People who have a steady diet of negative content (news, war, violence) tend to view the world as more dangerous and threatening than it actually is. This can create a sense of generalized anxiety, making people more suspicious and reactive.” Rutledge also revealed that for some people, “viewing graphic and violent images can be extremely stress-inducing, increasing uncertainty and fear. A steady diet of negative news can increase the risk of anxiety and depression.” That anxiety can trigger “the need to know and make us feel more in control, and, sets off the urge to search and scan, which results in (discovering) more violent content.” In turn, this can mean, the worse we feel and the more vulnerable we are to anyone who offers up ‘answers,’ whether it’s conspiracy theorists or politicians. Many experts have suggested that horror, post-apocalyptical, and crime content can prompt feelings of unhappiness, but in her studies Rutledge has found that “horror and true crime serve different psychological functions than news. Horror films and other post-apocalyptic movies can help us handle real-life anxiety and fear — existential and real. Horror films can alleviate psychological distress because fiction enables fans to explore imagined outcomes at a safe psychological distance and be more emotionally prepared. Fiction can provide all kinds of learning experiences, but horror is the only fiction genre specifically created to consistently and intentionally elicit fear throughout a narrative. The resolution delivers neurochemical rewards from relief and closure. This emotional rollercoaster is the basis of its appeal.” On the other hand, people living alone, having difficulty getting, or even losing, a relationship, can feel very unhappy seeing others having a wonderful time together. The answer to the argument about whether the media (and TV in particular) can or will do anything about the negative content is down to one thing, according to Rutledge. “Unfortunately, the incentives for success in media are at odds with wellness.” Great American Media’s Abbott believes that what appears on our screens should be down to “media literacy and controlling what comes into our homes, which is as much viewer responsibility as it is media responsibility. Each of us must be intentional in choosing positively.” Echoing some of that, the final thoughts on this conundrum rest with Rutledge: “The best course of action would be for media companies to push for media and digital literacy training in schools. There is no way that producers can control the responses and behaviors of audience members. Preparing viewers to critically view news and intentionally manage their media consumption behaviors is the only real solution — not limiting access as most politicians propose. People need tools to think about whether what they are doing aligns with their goals since most media behaviors are automatic, not intentional.” (By Mike Reynolds) (Continued from Cover) Bill Abbott, president and chief executive officer of Great American Media Pamela Rutledge, director of the Media Psychology Research Center in Newport Beach Americans are unhappy, concerned about inflation, global conflicts, and an acrimonious presidential election.
Join Us ! 21-24 October 2024 Palais des Festivals Cannes, France The mother of all Entertainment content markets 19-20 October 2024 Pre-opening 18 Oct. JW Marriott Cannes, France The pre-MIPCOM international kids screenings & co-production market MIPCOM MIPJUNIOR
VIDEOAGE June 2024 Direct-to-Consumer (Continued From Cover) (Continued on Page 20) 18 ness model still needs to be redefined because it rests on four pillars that are not fully grounded: the finicky and unstable subscription model in the case of streaming (plus it’s still unclear whether a monthly or yearly subscription model should be used to reduce churn), the risky vertical integration used by DTC operators, the unequal supply and demand, and the reliance on data. The elimination of binge-viewing for original content contributed to the so-called “viewer fatigue” resulting from the difficulties in finding new suitable shows. The data used for the streamers’ home screens to highlight a given user’s viewing patterns are not helping since viewers often fail to select their ideal shows because of the difficulties in finding them. Instead, they settle for the least objectionable new show, until, after one or two episodes, they simply turn the TV off because said show turns out to be unwatchable. Economists tell us that, in actuality, the business basis is the same for every business: make a sale. But of course, the process of making a sale with the direct-to-consumer model differs from the process of making a sale using the wholesale model (which employs the so-called middleman concept, which was also adopted in broadcasting). And indeed, as the WSJ explained in the headline of the article quoted above: “Direct-to-Consumer Shift Brings Challenge.” It used to be simpler for a producer to be in business: focus on the product and rely on a wholesaler to determine the quantity to produce, and produce only to fulfill sales orders. Today, producers have also become retailers since Wall Street pushed U.S. studios to follow the Netflix model, which had no legacy business to protect. In the process, the studios lost the discipline that characterized the traditional business model. With streaming the studios lost the cost factor — the cost of acquiring subscribers and the cost of producing original content. In the past, new technologies did not cause the premature dismantling of legacy businesses: Home video did not crash broadcast TV, and cable TV did not destroy home video, which evolved into streaming services. What happened with DTC is unprecedented, forcing an untimely dismantling of the profitable linear model and pushing for a premature adoption of the on-demand model that only generated losses, more mergers, and more layoffs. The evolution of the buying and selling business was a slow process that started as barter as early as 9000 BC. Sales in exchange for currency started back in 3000 BC, while the first retail store was found in ancient Greece in 800 BC. Wholesaling came into the picture during the Industrial Revolution in the 1800s, when mass production was developed. However, middlemen have existed since ancient times, but have gotten a bum rap for millennia even though they played a fundamental role in market operations in ancient Greece. According to Plato, middlemen were supposed to be unfit for any other job. To Aristotle, they were not even worthy of being full citizens. The hostility towards middlemen eventually translated into legislation. Laws from various nations limited their profit margins, and price increases were attributed to the greediness of middlemen. Every time a famine struck there was even a temptation to blame them for it. Nonetheless, they survived. The creation of the mail order business (a precursor of direct-to-consumer) was a consequence of the wholesale concept, and in the U.S. it was developed in Chicago by Aaron Montgomery Ward, who in 1872 was buying goods from various producers and then reselling them directly to customers and removing the middlemen in the form of the general store. But over the years, wholesalers and middlemen became synonymous. Around the same period, in the 1880s, two business models emerged: the “vertical” integration” model used by Andrew Carnegie to integrate his supply chain for the steel industry, and “horizontal integration,” employed by John D. Rockefeller to control the oil industry. The former was subsequently adopted by the U.S. studios for theatrical movie releases, but relinquished in 1948 because of the anti-competition laws, and horizontal integration was never implemented in the entertainment sector because of anti-monopoly laws (the antitrust laws of the 1890s). The media opened up to the wholesale business with advertising agencies (like Volney Palmer in Philadelphia in 1841), which brokered space for advertisers in newspapers. Palmer bought a large amount of space in various newspapers at a discount rate, and resold it at a markup. Over a century ago, ad agencies also started collecting 15 percent commissions for selling ads for publishers, and later for buying ad space for advertisers. Over the years, advertising agencies reinvented themselves many times, including writing both commercials and the programming for their clients. This merger of programming and advertising continued into the early years of television until regulations changed and the practice died out. The model has reemerged recently in the form of product placement. With the development of cable/satellite TV, U.S. studios found it more convenient, economical, and profitable to have intermediaries in the form of cable and satellite operators, which offered pay services to consumers either in a bundle or via a revenue-sharing model. Today, real estate agents take five percent of sales prices, literary agents grab 15 percent of book deals, and talent agencies take 10 percent of performers’ fees. However, the role of intermediaries between sellers and buyers is a role not much appreciated in American society, where dislike of all sorts of intermediaries (advertisers, lawyers, brokers, and agents) is frequently a part of the culture. The studios’ idea to eliminate the middlemen — the TV stations’ network affiliates and the ad agencies — started in 1951 when Paramount began offering its Telemeter pay-TV service for a $5 installation fee (a service that they provided directly via broadcast) and a per-program fee to 3,000 TV households. Other middlemen that the studios wanted to eliminate were the theater owners, who keep 50 percent of the box office receipts for themselves. The plot almost succeeded, until the studios realized that the theaters were the best way to promote their streaming features. DTC created additional disciplines in the form of a subscription economy and big data analysts.
VIDEOAGE June 2024 Direct-to-Consumer 20 (Continued from Page 18) Indeed, the direct-to-consumer business is not something new. It has been circling businesses for many years, but it only took flight with the so-called “dotcom era,” starting in 1995, when the acronyms B2C and DTC became popular. With the new millennium, the direct-toconsumer business model began to make believers out of folks in many different industries, especially in the retail sector. With technological advantages, and at the encouragement of their retailers, more manufacturers (producers) started operating lastmile deliveries (i.e., closer to consumers’ homes), but instead of focusing on the product, they started focusing on the market. In the DTC process, these producers discovered that they had to be vertically integrated in order to replicate the business of wholesalers. Plus, they had to master new business practices like fulfillment and home delivery. DTC effectively shifted storage and shipping costs from wholesalers to producers. And if the rewards with DTC were potentially higher, so were the risks associated with increased competition, which resulted in higher advertising costs and marketing challenges. In addition, there were more production issues, like releasing new product more often, creating more inventory, developing packaging, and making return policies. For those reasons, last year, Nike, for example, returned to selling to retailers in order to clear out merchandise (overstuffed inventory). In the case of Hollywood’s streamers, in 2022 the studios were convinced that with broadband readily available, they could have gone directly to the consumers, thereby eliminating the aggregators (middlemen in the form of cable TV operators), and doing away with the advertising agencies (by simply charging a subscription fee). A year later, in 2023, the studios’ streamers were losing an estimated $10 million a month each and quickly called back the advertising agencies to bring in clients willing to buy commercial spots. The cable TV middlemen also came back with demands that they carry the studios’ ad-supported streaming services (if they wanted to receive payments for the studios’ TV networks and their own local TV stations’ retrans fee, and also keep the studios’ cable channel carriage fees). Bundling, in which multiple services are packaged and sold as one by middlemen, is also making a comeback. DTC created additional disciplines in the form of a subscription economy and big data analysts. This subscription economy is now pervasive, spanning from streaming services and cable TV, to magazines and daily newspapers, alarm services, wine deliveries, gym memberships, digital newsletters, and even car wash services. The New York City-based consulting firm West Monroe reported that in a survey about monthly subscription expenditures, people guessed that they spent $62 on various subscriptions, when in reality they spent a whopping $273. It is also clear that the cultural environment between the two business operations — the traditional wholesale model and the DTC model — needs to better integrate. As demonstrated by the success of Netflix and some other manufacturers, those who started in the DTC business have had better results than producers who adapted to the DTC business after being previously grounded in the retail or wholesaler model. (By Dom Serafini) The studios’ idea to eliminate the middleman started in 1951 when Paramount began its Telemeter pay-TV service. Checking Ad TV Values VideoAge went snooping around inside TV outlets’ ad wallets to find out how much advertising is worth to them. For Amazon Prime, it is $2.99 per month per TVHH. Disney+ ads are valued at $6 per household ($14 a month without ads, and $8 with ads). For Hulu, ads are worth $7 per TVHH ($15 without ads, $8 with ads) per month. And Netflix is valued the most at $8.50 per month per sub ($15.50 with ads, and $7 without ads). For a FAST channel, the average viewer is worth $0.1 per hour for ad dollars, while for a TV broadcast station each viewer is worth an average of $0.23 per hour, or $34 ad dollars per month.
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