INTERNATIONAL www.VideoAge.org In 2014, VideoAge spoke with Sean Cohan in New York City for an article titled, “A Frank Talk with A&E Networks’ Sean Cohan.” At that time, Cohan was its executive vice president. Ten years later, VideoAge found Cohan in Toronto, where he serves as president of Bell Media, part of Canada’s largest Telco. This time around, our frank talk was very different as it happened in a different media landscape and environment. Also different was the fact that, before our new talk, via videoconference, Cohan’s associates asked for a set of questions/topics to be sent in advance (something that they apparently require for all interviews). Despite this, Cohan’s associates were very helpful in verifying the background information that VideoAge collected on Bell Media, some of which was incorrect. Last autumn, the world hailed the agreement between the Writers’ Guild of America (WGA) and the Alliance of Motion Picture and Television Producers, Inc. (AMPTP) as a victory for writers over the threats posed to their livelihoods by generative AI. My 2¢: Starbucks, cable, TV networks must deal with changed environment Searching for “Slow Horses” TV programs at trade markets MIPCOM jitters confirm that the market is the premier content bazaar The changing geography of TV trade shows, the shifting calendar dates Page 46 Page 32 Page 16 Page 14 THE BUSINESS JOURNAL OF FILM, BROADCASTING, STREAMING, PRODUCTION, DISTRIBUTION October 2024 - VOL. 44 NO. 6 - $9.75 Sean Cohan’s Demanding New Challenges Ring a Bell The Art of Selling Difficult Content: Comparing Cases Losing Rights to GenAI-Produced TV & Film Scripts (Continued on Page 40) (Continued on Page 34) (Continued on Page 38) There is “bad” content and there is content that is “difficult” to license. The differences are reviewed in the article on page 36 by a Hollywood studio veteran, as well as the one on page 34 by an independent European niche producer/distributor. Technically, there is no such thing as “bad” content. It’s just that product that buyers don’t seem to want is classified as “bad.” But why would anyone intentionally buy bad product? The reason is simple. Distributors who have leverage effectively “force” clients to buy it by denying them the “good” product that they really want. ©2024 BUENA VISTA INTERNATIONAL, INC. ALL RIGHTS RESERVED. C M Y CM MY CY CMY K TTV_DISENY_FRONTCOVER_AMOR DA MINHA VIDA_18.5X16.pdf 1 24/9/2024 16:34:06
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) 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 VIDEO AGE INTERNATIONAL (ISSN 0278-5013 USPS 601-230) IS PUBLISHED SEVEN TIMES A YEAR,. PLUS DAILIES, BY TV TRADE MEDIA, INC. © TV TRADE MEDIA INC. 2024. THE ENTIRE CONTENTS OF VIDEO AGE INTERNATIONAL ARE PROTECTED BY COPYRIGHT IN THE U.S., U.K., AND ALL COUNTRIES SIGNATORY TO THE BERNE CONVENTIO AND THE PAN-AMERICAN CONVENTION. SEND ADDRESS CHANGES TO VIDEO AGE INTERNATIONAL, 216 EAST 75TH STREET, SUITE 1W, NEW YORK, NY 10021, U.S.A. PURSUANT TO THE U.S. COPYRIGHTS ACT OF 1976, THE RIGHTS OF ALL CONTENT DONE ON ASSIGNMENT FOR ALL VIDEOAGE PUBLICATIONS ARE HELD BY THE PUBLISHER OF VIDEOAGE, WHICH COMMISSIONED THEM Starbucks, cable TV network operators, and cable systems must learn to deal with a changed consumer environment. Page 46 Cover Stories News Sean Cohan’s considerable new challenges ring a Bell Losing exclusive rights to scripts produced with generative AI The art of selling difficult content: Comparing cases 6. World: MIP Africa, a content market for a continent 8. World: X boss Elon Musk is a service of disinformation 10. New trends in the film universe 14. The changing geography of international TV trade shows 18. AFM’s winning chances in Vegas. Mart’s gamble is not a cliché 20. MIP Cancun: some complaints, but appreciated 12. Book Review: History of controversy in the entertainment industry 16. Market Preview: MIPCOM is confirmed as premier show 22. Selling film/TV rights to AI: Litigate, engage, or ignore 24. Financing content: Not an easy task but essential for indies 26. U.S. studios’ soft power shaped European values and ideas 30. How MIPCOM was in 1991. Veteran returns to Cannes to review changes 32. Content buying: Searching for TV’s next Slow Horses 34. The art of selling culture: The independent distributors 36. The art of selling difficult content: The studios’ side 44. Int’l TV execs are travelers not tourists. Plus, calendar of industry events Features
6 (Continued on Page 8) Philippines, and Turkey. And among the distribution companies were All3Media, ACI, A&E, ATV, GMA Networks, Inter Medya, Global Agency, NBCUniversal, Sony Pictures, Impact(ed) International (formerly Discovery Learning Alliance), and Entertainment Studios. The general consensus was that this year’s market was well organized with a great database where content sellers could arrange appointments with potential buyers directly on the MIP Africa website, which went so far as to suggest possible times for meetings. In addition, the market, outside the airfare costs, was said to be very inexpensive, with participants able to get access badges for the equivalent of U.S.$155, and hotel accommodations for as low as $80 per night. On the other hand, it is still unclear how much — if any — business was conducted, despite the increased size of the market, compared to the two previous editions. The event attracted a fairly young crowd, somewhat unaccustomed to traditional business dealings. Thomas Devlin, president, International Sales & Marketing, for the Los Angelesbased Entertainment Studios Television, confirmed the market’s success: “It was good, but I really had to remind people to show up for a meeting,” he said. “The MIP Africa meeting request portal was good, but many important people didn’t register until the week before.” He then concluded: “The business continues to be challenging on so many levels.” Pictured above, l. to r.: Billy Dundee (African Entertainment Distributors), Jamila Hunter (MACRO Television Studios), Narendra Reddy (The Africa Channel), Chevonne O’Shaughnessy (American Cinema Inspires), Anthony Kimble (Arrested Industries and producer/partner, 5X Media). Among the panels held at MIP Africa 2024, which took place September 2-4 at the Cape Town International Convention Center 2, South Africa, the panel “Bridging the Gap Between Africa and the World” featured a group of five international TV executives (pictured) who explored the potential offered by the African content industry. The market drew 86 acquisition companies, 72 distribution companies, 214 content creators, and 11 media representatives, among other categories, for a total of 459 companies. This is an increase over the 289 companies that participated in the event last year. It is estimated that the market attracted some 1,300 participants. As expected, the majority of participants were from South Africa and other African countries, but there were a good number of attendees from overseas, including, the U.K., France, Germany, Spain, the U.S., the MIP Africa: A Content Market for a Continent Genre: Docu-Reality Duration: 9 X 60’ www.grbmediaranch.com l info@ grbmediaranch.com MIPCOM 2024 STAND R7.A16 Follow the drama and the talent of the best dancers in the World at the Famous Playground Dance Studio in Los Angeles. Executive Produced by Megan Thee Stallion VIDEOAGE October 2024 World
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8 (Continued on Page 10) require platforms to take action to address illegal content. CNBC also reported that “the Act will also require the biggest platforms to enforce their own terms of service, including where these prohibit the spreading of misinformation.” In August 2024, in Brazil, Brazilian Supreme Justice Alexandre de Moraes suspended X’s availability in the country. The suspension came after X failed to appoint a legal representative in the country as requested by a Brazilian court in regards to content moderation. At first Musk refused to comply with de Moraes’ judicial orders to remove disinformation from the platform under Brazil’s speech laws, but in late September Musk complied and appointed lawyers to represent the X platform. According to NBC News, Musk and X have used the platform to spread misleading information about how the law and government work in Brazil. X ranked around 10th in social media platforms most used by Brazilians. Musk has also targeted de Moraes from his personal X account, calling him a “fake judge,” “Brazil’s Voldemort” and a “criminal.” Musk has called for de Moraes to be imprisoned and for the U.S. government to stop sending foreign aid to Brazil and to seize Brazilian government assets. In its report, NBC News quoted David Nemer, a professor of Media Studies at the University of Virginia who is from Brazil and has studied misinformation and the rise of the Brazilian far right: “Our laws pertaining to free speech are different from the First Amendment in this country, the same way Europe has a very different understanding,” and added: “In Brazil, hate speech is not protected.” Previously, Musk had to come to terms with requirements from Turkey, India, and Australia to censor some disinformation posts. On one hand, former U.S. president Donald Trump wants Tesla CEO Elon Musk to head a new commission to identify and reduce government waste if he’s elected to a second term. But on the other hand, the U.K., Brazil, India, Turkey, and Australia are looking to reduce Musk’s political influence. The governing U.K. Labor party is looking to strengthen the country’s Online Safety Act in response to incendiary comments that X owner, billionaire Elon Musk, posted to his social media platform in the midst of the U.K’s nationwide anti-immigration protests. According to CNBC, the Labor party is considering altering the Online Safety Act, which currently requires major technology companies to prevent the spread of illegal and harmful content on their platforms. Once fully implemented, the Online Safety Act will X: A Service of Disinformation Around the World (Continued From Page 6) VIDEOAGE October 2024 World
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10 (Continued From Page 8) ducing very short films that are offered on the Internet for pennies to a multitude of people. If these micro movies — which will probably never be seen at film festivals — represent the most significant and unexpected novelty in the evolution of the species, at the other end of the transformation spectrum we are witnessing an expansion of the [film] lengths and conventions of traditional narratives. Everyone has [also] noticed that movies are becoming longer and longer, lasting and sometimes exceeding three hours. At [the Venice Film] festival, our interest lies less in discussing whether all this is a consequence of the stylistic and narrative influence exerted by TV series, which are proposed by streamers and consumed by household audiences. Instead, what interests us is observing how a growing number of filmmakers are letting themselves be tempted by the allure that experimentation with a new format offers their creative potential. The program of the 81st Venice Film Festival proposes significant examples of this expansive movement by hosting numerous movies that, to varying degrees, exceed two hours, and by screening four auteur series. Showing these four series in their entirety (which vary in length from the five-anda-half-hours of Alfonso Cuarón’s series to the eight hours of Rodrigo Sorogoyen’s) no doubt represents a challenge for spectators and a gamble for the Venice Film Festival’s programming, which in itself offers a plethora of movies. Nonetheless, we feel it was a risk worth taking, in view of the Festival’s commitment to indicating (or anticipating) the most significant trends that are taking form in the film universe. *Alberto Barbera is the director of the Venice Film Festival. This essay is edited from his introduction to the 81st edition of the festival, which took place August 28-September 7, 2024. Today, movies are offered in forms and lengths that have very little to do with requirements that were developed over time. Lengths typically vary between the canonical 90 [minutes] and 120 minutes. Many films are becoming short or very short to adapt to their new containers — no longer the traditional movie theaters, or even household TV screens. Instead, we have the socials: Instagram, TikTok, YouTube, and more. This was confirmed by a Chinese producer we encountered during one of the many useful exploratory trips we make every year. From his stories, one can deduce that production companies active in Beijing and Hong Kong now make their greatest profits by proToday’s Movies Are Very Short or Extra Long By Alberto Barbera* VIDEOAGE October 2024 World THE EMMY© WINNING FORMAT PHENOMENON G00593_VIDEO_AGE_FP_MIPCOM_2024_270x360_TRAITORS_FINAL.indd 1 26/09/2024 18:03
12 Cultural historian Kliph Nesteroff contextualizes a history of controversy in the entertainment industry and considers the role of culture warriors involved. History of Controversy in The Entertainment Industry By Luis Polanco I n today’s attention economy, where news media, the entertainment industry, and politicians strive to rile emotions and get the most views, the time-honored adage that “sex sells” still holds true, but should be amended to include scandal, murder, death, war, and especially outrage. In the U.S., there’s no shortage of outrage. The government wants to confiscate your guns. Immigrants not only want your jobs but they want to abduct your pets and eat them too. The woke mob wants to indoctrinate the youth through TikTok and books. These types of divisive views are often central to the cultural and political conflict in the U.S. between conservatives and liberals and is known as “The Culture Wars.” As a term, the Culture Wars came into public discourse through the American sociologist James Davison Hunter, whose 1991 book Culture Wars: The Struggle to Define America focused on how these two cultural poles of conservatism and liberalism congealed around contemporary issues such as abortion, religion, and LGBTQ+ rights, among others. As a societal phenomenon, however, the culture wars have been raging since long before the ’90s, and battles over free speech and censorship have frequently played out in the realm of comedy and entertainment. In Outrageous: A History of Showbiz and the Culture Wars (320 pgs., Abrams Press, 2023, $30), writer and cultural historian Kliph Nesteroff compiles a chronicle of controversies in the entertainment industry that goes back long before contemporary complaints about how you can’t joke about anything anymore, people are too soft, and civil liberties such as free speech are under attack. Nesteroff outlines a period that goes back nearly 200 years and offers context to the rich U.S. history of protest and censorship in response to entertainment and media. Key to his history is the involvement of political think tanks whose funds stoke the fires of the continuing culture wars. Nesteroff is the author of two previous books on comedy, The Comedians: Drunks, Thieves, Scoundrels, and the History of American Comedy and We Had a Little Real Estate Problem: The Unheralded Story of Native Americans and Comedy. In his latest book, Nesteroff continues to focus on comedy, beginning with its theatrical roots in the U.S. “American show business essentially begins in the 1830s with the blackface minstrel show,” he writes. “Ever since that time, audiences have complained.” Blackface minstrelsy was justly criticized for the promotion of racial stereotypes that advanced racism and bigotry. Nesteroff also points out that in the 1800s, vaudeville was condemned and protested by religious communities for portraying vulgarity and sexuality. Sexuality continued to be a reason for controversy in the twentieth century. Nesteroff looks at the example of actress, singer, comedian, and sex symbol Mae West, who infamously said, “Censorship made me.” After a run in vaudeville that gained her a cult following, West performed on Broadway for the first time in 1926 in a play called Sex, an action-comedy about murder and corrupt policemen, in which she played a prostitute. The New York City Police Department raided the production, arrested the cast, stagehands, and stage manager for obscenity, and at trial the following year, the jury found Mae West guilty. She served ten days at a women’s workhouse. Outrageous is at its most exciting and provocative when Nesteroff discusses the role of corporate influence, political advocacy groups, think tanks, and culture warriors fueling controversy. “The most powerful corporations gave birth to the ‘think tanks,’ sophisticated propaganda outfits that worked to further corporate interest through elaborate disinformation campaigns,” Nesteroff explains. “Think tanks planted articles in magazines, editorials in newspapers, and placed their representatives on radio and television.” In his claim about the manufacturing of controversy by political interests, Nesteroff examines the part played by organizations like the John Birch Society and figures such as Paul Weyrich, the religious conservative who co-founded The Heritage Foundation. The John Birch Society was founded in 1958 by Robert W. Welch Jr. with the help of Fred Koch, the father of the Koch brothers who would themselves fund political think tanks in the present. “[The John Birch Society] attacked musicians, comedians, reporters, professors, and the Civil Rights Movement,” writes Nesteroff. He cites the examples of comedians Bob Newhart and Stan Freberg, who were targeted by the organization. In Outrageous, Nesteroff presents a compelling argument about the relationship between the entertainment industry, politics, and controversy. “[W]hile the showbiz of a hundred years ago may seem remote,” Nesteroff writes, “it is remarkable how similar the issues of the past are to the concerns of today.” Outrageous is at its most exciting and provocative when Nesteroff discusses the role of corporate influence, political advocacy groups, think tanks, and culture warriors fueling controversy. VIDEOAGE October 2024 Book Review
14 The Changing Geography of International TV Trade Shows The geography of international TV trade shows is changing once again, with more markets coming out every year, including a planned Istanbul TV Market in 2025 and a TIFF film and TV market in 2026. In the beginning, when the concept of a film and TV market first appeared in 1963, the only venues were Los Angeles (May Screenings, later renamed the L.A. Screenings), Milan, Italy (MIFED), and Cannes (MIPTV). Subsequently, the concept expanded to Las Vegas (NATPE), Manila, Philippines (the Manila Film Festival, popularized by Imelda Marcos, wife of the country’s one-time dictator), Monte Carlo (Monte Carlo TV Market), Brighton, England (the BBC Showcase), London (the London Multi Media Market), and Banff, Canada (Banff TV Festival). By the late 1990s the TV market frenzy subsided, with only a few yearly appointments remaining, including NATPE in Miami, Florida; MIP-TV and MIPCOM in Cannes, France; the L.A. Screenings in Los Angeles; and the American Film Market (AFM) in Santa Monica, California. The new century brought another wave of new TV markets into new countries with Budapest and Johannesburg (DISCOP), Singapore (Asia TV Forum), Rome, Italy (Rome Fiction Fest), Buenos Aires, Argentina (Jornadas Internacionales), and São Paulo, Brazil (Brazil TV Forum). Now, the international TV sector is going through another regional shift, but with a twist. While in the past, TV markets were careful to avoid overlapping dates and venues, there has been a recent explosion of markets set in the same areas and same months. For example, London will soon host Content London (December 2-5, 2024), London Screenings (February 24-28, 2025), and MIP London (February 24-27, 2025). Similarly, Miami, Florida is going to be a busy place, with Content Americas (January 21-23, 2025), followed by NATPE Global and Realscreen (February 5-7, 2025). Then, there is the competition in June for CEE hegemony among New Europe Market or NEM in Dubrovnik, Croatia (June 9-12, 2025), Content East in Warsaw, Poland (June 2-5, 2025), and NATPE Budapest in Hungary (date TBA). Then there are markets that look to take advantage of the proximity to other larger markets, like the MIA (Italian Audiovisual Market) in Rome, Italy (held October 14-18, 2024), just before MIPCOM, in Cannes, France. While March is still an open month with only Series Mania (March 21-28, 2025) in Lille. With MIP moving to London, the month of April became available, but not to worry, two markets might be filling it up. One is in Istanbul, Turkey, the other in Toronto, Canada. The former is under the auspices of a coalition of Turkish TV companies. The other comes courtesy of TIFF, the film festival that took place September 5-15 in Toronto, Canada that is reportedly planning for a TV market in 2026. Also to consider is the Banff TV Festival, once a Canadian market powerhouse that Bell Media’s new CEO Sean Cohan is looking to revitalize. Currently, the renamed Banff World Media Festival is held in June (June 9-12 in 2024), a busy month in the international market calendar with TV trade shows in Warsaw, Dubrovnik, Toledo (Conecta Fiction), Cannes (Cannes Lions), and Budapest. The geographical shift is also evident with MIP Africa, which was held in Cape Town, South Africa, September 2-4, 2024, with the Dubai International Content Market (November 12-13, 2024), and with MIP Cancun, to be held in Cancun, Mexico, November 1922, 2024. MIP Cancun changed the travel geography of many LatAm buyers, who switched from MIPCOM Cannes to Cancun a few weeks later. In addition, the successful Cancun-Miami axis negatively affected participation to South American TV markets, including Jornadas, held in Buenos Aires, Argentina, October 7-8, 2024. Meet some of the market’s directors: 1) Sanja Bozic-Ljubicic, New Europe Market 2) Rakesh Chettri, Dubai International Content Market 3) Laurence Herszberg, Series Mania 4) David Jenkinson, Content Americas, Content London, Content Warsaw 5) Claire Macdonald, NATPE Global, NATPE Budapest 6) Isabella Marquez, L.A. Screenings Independent 7) Maria Perez-Belliere, MIP Cancun 8) Jean Prewitt, American Film Market 9) Lucy Smith, MIP London, MIPCOM 10) Gaia Tridente, International Audiovisual Market (MIA) 11) Carol Weaving, MIP Africa 12) Yeow Hui Leng, Asia TV Forum 12 6 10 4 8 2 11 5 9 3 7 1 VIDEOAGE October 2024 Markets Outlook
16 Market Jitters Preannounce MIPCOM’s Confirmation as Premier Show Party invitations for MIPCOM Cannes — both “Save the Dates” and actual invitations — began arriving in e-mail inboxes as early as August 1 — a whopping 81 days before the market’s opening day, October 21, 2024. Why the early start? Perhaps it’s because RX, MIPCOM’s organizers, began teasing potential participants as early as June with special offers. In addition, MIPCOM’s official site listed its exhibiting companies as early as August, when it was discovered that Paramount was going back to its tent in C14, that Disney would be returning to the third floor of the Palais at P3.C1, and that NBCUniversal was taking its usual stand on P4. There was also the fact that “over 320 stands” would be erected for 1,500 exhibiting companies, with the Riviera Halls sold out by the end of August. RX’s strategy seems to have worked, seeing as how both participants and exhibitors began planning their time in Cannes earlier than usual, and companies’ PR materials quickly made their way to members of the trade press in search of editorial coverage — especially from dubbing studios. Indeed, dubbing studios seem to be invading MIPCOM. VideoAge received an unusually large number of requests to meet representatives of dubbing studios in Cannes. According to Jacques Barreau of Barcelona, Spain-based dubbing company TransPerfect, “it is because during the strike in Hollywood, production stopped and the entire TV season became practically dead. Now, production is back on and there is more content to be dubbed.” Also, he said, “with prices dropping constantly in dubbing (at the request of the big clients), dubbing studios need more volume to survive.” Dubbing is also a key strategy for streamers. Recently, The Wall Street Journal covered Netflix’s new strategy that consists of spending less on original programs, but achieving customer retention through cheaper content. The key element for this strategy is to find a global audience for unscripted reality shows through accurate dubbing. Netflix officials are now educating performers in the U.S. and Europe on the perfect mix of authenticity and nuances. The WSJ reported that Netflix “supports 30 languages with non-English content representing one-third of all viewing on the service.” In terms of production and distribution, Chevonne O’Shaughnessy, CEO of the Los Angeles-based ACI, explained things thusly: “After 25 years in international distribution with ACI, our business is evolving to focus on niche and targeted sectors. Film markets like NATPE Global and MIPCOM align closely with this new direction.” Loni Farhi will travel from Miami, Florida to MIPCOM to present his new company, Cosmo Blue Media, which is set to replicate the success of the company he recently sold, SPI International. Similarly, Solange Attwood will be at MIPCOM to introduce her new company, Toronto-based Maven Studios. Even though Niccoló Messina will not be personally present in Cannes, his distribution staff will be leveraging MIPCOM to launch Messina’s Insurgence International, a Rome, Italy and Los Angeles-based distributor for Messina’s V Channels, which boasts a library of 100 original independent movies and over 60 feature documentaries. Veteran American TV executive Doug Friedman announced that he will return to MIPCOM after a 29-year absence and document the changes he sees in a piece for VideoAge. At the same time, Barry Chamberlain will be returning to MIPCOM for the first time since 2019, this time as COO for the Los Angelesbased Electric Entertainment. Chamberlain previously served as president of Sales for CBS and subsequently for Paramount Global. LatAm companies will have a reduced presence at the market, both for budgetary reasons and the proximity of MIP Cancun (November 19-22, 2024), with the exception of Brazil’s Record TV, which will be at MIPCOM in a big way, in terms of marketing. “Given the current economics and other factors that have been impacting our industry, many LatAm companies are opting for MIP Cancun instead of MIPCOM to close out the year,” commented Cesar O. Diaz, CEO of the Miami, Florida-based 7A Media. He added: “It’s no surprise that many entities are trimming budgets. [Plus] there is still an overflow of the number of conventions, content markets, conferences, summits, and gatherings that are happening throughout the year.” “The focus is NATPE and/or Content Americas [in Miami, Florida] in early 2025,” said veteran Los Angeles-based distributor Ettore Botta, president of SpaceWow. René Leda of Los Angeles-based production company Netminds, explained: “MIP Cancun and Miami in January are more effective for LatAm sales companies. The cost is lower to exhibit and [is more affordable] for buyers too.” Nonetheless, for Jacques Barreau, “TransPerfect sees MIPCOM as the ideal platform to showcase its latest tools and services.” He added: “MIPCOM is the perfect environment for exchanging ideas in both the technical and creative domains, helping us refine our strategy and code of ethics. The latest AI trend, which is taking our industry by storm, is a prime example. This event is also more than just a showcase, it’s a chance for us to deepen our relationships and build new connections within the industry.” This year, MIPCOM’s Country of Honor is going to be Spain, which is also the sponsor for the Opening Night Party on Monday. As for an update on MIP London, that will most likely come on Wednesday, the market’s penultimate day. Meanwhile, according to some preliminary official press releases, as per mid-September, over 80 companies from 30 countries had already confirmed participation at MIP London, to be held February 2327, 2025 (replacing April’s MIPTV in Cannes). Finally, Sony Pictures will have a stand in the Palais, Level 1, Debussy Foyer, and its chairman and CEO, Tony Vinciquerra, will fly to MIPCOM to receive the Variety Vanguard Award. VIDEOAGE October 2024 Market Preview
18 AFM’s Winning Chances in Vegas. Mart’s Gamble is Not a Cliché A new day, a traditional event, a new venue, and a record number of early sign-ups — what could be better? With rumbling in recent years about the American Film Market’s (AFM) future, moving it out of the Los Angeles area to, of all places, Las Vegas, might have seemed like a final nail in the coffin for doubters. But if advance bookings are anything to go by, this upcoming edition of AFM, set for November 5-10, 2024, at the Palms Casino, looks as if it will be the best-attended event in recent years, according to the organization. In fact, “We have record attendance this year, so I am very optimistic about the future,” said AFM board member Lise Romanoff of Vision Films. On a cynical note, it’s little wonder that this year’s bookings are up for AFM. Many people would love to go to Vegas and now they’re getting the opportunity to have the company account pay for it. However, for Sam Eigen, CEO of Shoreline Entertainment, this edition of the AFM will be a breeze — no flights to book, or high hotel costs to worry about, and only a small amount of gas to put in the tank for his drive down the road — as the company is headquartered in Las Vegas. As for the event itself, Eigen sees AFM mainly affording him “face-time and the opportunity to meet with other companies about acquiring content catalogs,” amongst other things. On the surface, a rush to sign up — around 200 companies and 900 individuals are already tapped to attend as of mid-September — seems like great news. That said, many people approached for this story (who did not want to be named) suggested that it was a natural reaction. Las Vegas is a renowned destination and there’s plenty of hotel space, along with more than enough places to eat and be entertained, so it fills in many of the slots (pun intended). Whether Las Vegas and the Palms Hotel will truly be a success has to rest on respective post-mortems. Were the right people (meaning buyers and sellers) met with, and what kind of deals were secured? Only once the results have been tallied afterwards will all of that provide the full picture. Many people approached for this story felt strongly that AFM was out of touch and not doing the right thing (and had not been for some time) with the market. There are several other international markets before the end of this year and beginning of the next, and it’s repetitive and costly when companies wish to attend all — in some cases just to have a face-to-face with a couple of companies they didn’t connect with earlier. This year AFM and MIPCOM are only two weeks apart. Unless AFM takes a different path and listens to its constituencies — and gets honest answers — the collective feeling from these individuals (both buyers and sellers) was that AFM would not be around for much longer. The move last year to a different hotel in Santa Monica, California, AFM’s traditional city, did not instill confidence, and this year’s move to Las Vegas, has not necessarily warmed the heart — at least from a pure business perspective — for most companies. Many attendees felt that Santa Monica and its environs, along with the airfares and other associated costs, had become too expensive and too physically scattered among the market’s various venues. Moving to Las Vegas will not be inexpensive — further to fly for most international attendees, more expensive to travel around town, slightly higher prices to rent a space in the exhibition area, and while there are screening rooms aplenty on site and numerous stores and dining venues, the city is rather gloomy and attendees will end up hardly seeing daylight for the market’s duration. Indeed, some participants may spend nearly a week without going outdoors. When asked for her opinion on the Las Vegas move, Vision Films’ Lise Romanoff said: “It’s exciting. And I’m thrilled we will all be together at the Palms, including (for) screenings! Santa Monica was getting too fragmented, with everyone all over the place and as an AFM board member I can assure you that we tried every option and no hotel could accommodate us!” As for the fact that AFM and MIPCOM are only two weeks apart, she admitted that “it’s not good being so close, but it is a different crowd so we attend both!” On the business side, Romanoff and her team will be taking “two new action films, two new Christmas films, some family films, and some rom coms.” Incidentally, those are also the content genres she and her team will be looking to buy. Long-time AFM participant Chevonne O’Shaughnessy of ACI (American Cinema Inspires) is still unsure about her attendance. And even though she’s made the down payment for AFM, she’s looking more toward MIPCOM. In addition to the usual offices (read hotel rooms) of differing dimensions, buyers and sellers have areas with meeting tables and a few booths at which to discuss deals at the Palms. The AFM sessions for this edition include 11 in total, including two on pitches — “Unlocking Global Distribution: What Buyers Really Want in Film & TV,” and “Finance 1: Cracking the Formula: Independent Film Financing in Today’s Financial Landscape.” The Location Expo side of the event seems to be growing, and Italy is one of the “National Umbrellas,” bringing a number of entities from that country (12), while China is another with its China Pavilion collective. In no particular order, some confirmed exhibiting companies are: German Film Services & Marketing, Audiovisual From Spain, Polish Film Institute, City of Palmdale, ThompsonNicola Film Commission (Canada), Film Development Council of the Philippines, Georgia Film Office, Department of International Trade Promotion (Thailand), Film AlUla, German Film Services + Marketing, Baja Film Commission, Italian Trade Agency, Southern Kentucky Film Commission, Nevada Film Office, Thailand Film Office, Studio Greece, Department of Tourism, Invest Barbados. Polish Film Institute, West Virginia Film Office, International Film Trust, Reading (Pennsylvania) Film Office, Tokyo Film Commission, and even a financial institution — the Western Alliance Bank. (By Mike Reynolds) Vision Films’ Lise Romanoff VIDEOAGE October 2024 Film Markets
20 LatAm Market Like Weather Service: Some Complaints, But Very Appreciated By mid-September only three press announcements had been released by RX, the Paris-based organizer of MIP Cancun. This is possibly due to the fact that this year’s Latin American TV market will be held five days later than last year’s, so even though it’s not such a big gap, announcements about new developments might not have been considered as pressing as in the past. The three-day event will start on November 19, 2024, — a mere 25 days after the final day of MIPCOM, its sister market in Cannes, and only 10 days before the Asia TV Forum (ATF), its corresponding market in Singapore, begins. These close-in-proximity dates will result in a reduced Latin presence at both MIPCOM and ATF. The event will once again be held at its traditional venue, the Moon Palace Convention Center (part of the large Moon Palace Resort), which is located just outside Cancun, Mexico. Last year’s event attracted more than 800 participants, including 172 distributors, 193 co-producers, 210 content buyers, and 43 commissioners. These all hailed from 45 countries. The event housed 130 market tables from 121 companies (some took extra tables), plus seven stands. These were located in the hall of the convention’s second floor, facing the large marketplace space where the meeting tables were located. The 71 coproduction tables were located on the first, or ground floor. For the overflow, two meetingpoint areas (A and B) were created, but had no assigned numbers, meaning that folks were free to use any available coffee tables and chairs, which at times were scarce. During last year’s edition, there were 29 prearranged meetings for each exhibiting content sales company and 23 for co-production companies. The same is expected this year. Back in 2014, MIP Cancun introduced the concept of pre-arranged meetings for exhibiting companies, which solved the problem of content buyers ignoring meeting requests from distributors with whom they were unfamiliar. LatAm buyers who are invited all-expenses-paid are required to attend meetings they are assigned to by the organizers, and exhibitors have limited discretion to reject meetings with some buyers. The secret here is to balance buyers that have a budget to acquire content with those who go to MIP Cancun just to “explore trends.” However, most invited buyers without a need to acquire content are up front and clearly state their situation at the start of each meeting. Some exhibitors’ strategy is to focus on new potential buyers and leave meetings with their current or known buyers for informal get-togethers at various gatherings within the market. Explained Thomas Devlin, president, International Sales & Marketing, for the Los Angeles-based Entertainment Studios Television, “LatAm buyers are very predictable. They buy from their loyal distributors.” In addition, a New York City-based content seller who won’t be at MIP Cancun this time due to the high cost of exhibiting for his company, pointed out that LatAm acquisition executives “don’t change much. They’re always the same [people],” and that “Miami,” meaning Content and/or NATPE “is much cheaper for me.” Now in her third year as head of MIP Cancun, Maria Perez-Belliere of RX France instructed her London-based publicists to provide VideoAge with some highlights for the market’s 11th edition: A “FAST and AVoD Americas” set of conferences will be staged across a full pre-market day on Tuesday October 19, and will focus on monetization and opportunities within advertising-led streaming. Across the main three-day program, October 20-22, two further additions are a Co-Production Summit (an invitation-only networking event and discussion) and the new Co-Production Bootcamp (a series of workshops covering areas including legal, tech, financing, and sustainability in co-productions). In addition to the pre-opening cocktail, opening party, and closing party, there will be dedicated networking lunches for all MIP Cancun attendees on November 20 and 21, 2024. About the high cost of attending with an exhibition table, last year Perez told VideoAge that the rate had “increased a bit, in line with inflation.” In 2023, participants reported various levels of costs. Those with tables paid the highest rate (and got to choose which buyers they wanted to meet with from a lengthy list), while “Visitors +” were charged a reduced rate. Both of these included hotel accommodations, as well as food and beverages. Plain “Visitors” got only an access badge and access to the list of buyers just a few days before the market’s start date and without pre-set meetings. Last year, the report from distributors was generally positive, even though it was pointed out that little content-buying took place due to the poor state of the economy in most Latin American countries. This year it is expected to be the same. Nonetheless, the market is thought to still be the best gathering place for the Latin American TV industry — an appointment that content buyers don’t want to miss, and that content sellers, producers, and the trade press cannot afford to miss. Plus, MIP Cancun is the perfect prelude to the two Miami, Florida TV markets that will take place in January and February 2025, where follow-ups take place and deals are hammered out. Insurgence’s Niccolo Messina, 7A Media’s Cesar Diaz, Netminds’ Rene Leda were among the participants at last year’s event. Record TV’s Grace Andrade, Delmar Andrade, and Thiago Castro at MIP Cancun 2023. VIDEOAGE October 2024 MIP Cancun Preview
Hidden Garden
22 Artificial Intelligence, specifically Generative AI, is poised to disrupt the entertainment industry like no innovation since the advent of film itself. Just as the Lumière brothers astonished Parisian audiences in 1895 with moving pictures, today’s innovators can astonish us by creating the capacity to generate cinematic clips merely by typing prompts into a computer. For content owners, this moment presents not just a revenue opportunity but also an opportunity to enhance the value of their content by influencing the future of copyright law. Generative AI video models require vast amounts of video content — millions of hours — for training. Training involves teaching AI models to understand the world like a child learns to associate words with objects. For instance, if you prompt an AI to generate “a cowboy riding a camel through the streets of Cannes,” the model needs prior exposure to images of cowboys, camels, and Cannes to produce a coherent output. Unfortunately, many AI companies have been scraping video content from the Internet without authorization, often violating platforms’ terms of service. If your content is on YouTube, there’s a real possibility it has been used in this way. These companies argue that publicly available content falls under the “fair use” exception in U.S. copyright law, a claim they bolster by highlighting the administrative burden of licensing disaggregated content. So, how can video library owners both protect their content and seize this revenue opportunity? The answer lies in leveraging new infrastructures that facilitate licensing to AI companies. Emerging companies like Calliope Networks (video), Created By Humans (books), Rightsify (music), and Human Native (which handles multimodal AI) are simplifying the licensing process. Calliope Networks, for example, has assembled a global film and TV catalog specifically for AI model training. There’s also a growing emphasis on “provenance,” wherein AI companies demonstrate that their training data is ethically sourced. Xinsere is one such company, offering secure content storage and delivery accompanied by auditable smart contracts to prove content provenance. Content owners now face a critical decision: Should they litigate against unauthorized use, engage with AI companies through licensing, or ignore the issue altogether? Consider the example of Viacom in the 2000s. Faced with unauthorized use of their content on the burgeoning platform YouTube, Viacom chose litigation over engagement. They spent seven years in court and, despite reaching a settlement, lost cultural relevance among the “MTV Generation” as competitors who chose to engage flourished. In 2024, media companies are at a similar crossroads. Engaging through licensing not only opens new revenue streams but also strengthens legal positions. By demonstrating that viable licensing options exist, content owners can weaken AI companies’ “fair use” defense in court. What does an ideal customer for training data look like? Many AI companies are willing to pay for high-quality content that isn’t readily available online. Companies like Adobe, Flawless, and BRIA.AI are committed to “Responsible Training,” using only licensed or public domain content. Adobe’s Firefly model aims to prove that ethical sourcing doesn’t compromise quality. These companies address market demands from industries wary of legal repercussions from using unlicensed content. A recent article in London-based marketing publication The Drum emphasized this point: “While our teams have already been working with generative video tools from Runway [and other companies], we’ve only been able to consider them for internal and R&D purposes due to the [unlicensed] content their models have been trained on,” wrote James Young, head of creative innovation at ad agency BBDO. He added: “Firefly’s video tool has the capacity to massively expand our sandbox.” There’s also speculation that courts might even mandate the disposal of models built on unlicensed data, positioning responsibly trained models advantageously. When negotiating deals, volume and content variety are crucial for AI companies. Some startups focus on specialized content — like talking-head avatars — and seek specific types of footage. Early pricing benchmarks suggest $6 to $14 dollars per minute of high quality video, depending on format. Content owners should strive to create real economic value while negotiating use restrictions. Establishing deal precedents with clear restrictions — such as prohibiting redistribution or reproduction of the dataset — will set industry standards and influence future agreements, even with companies that don’t yet exist. By actively participating in shaping this new marketplace, content owners compel technology companies to meet their terms and support data-licensing infrastructures that facilitate transactions. As Nick Thompson, CEO of The Atlantic, said regarding their deal with OpenAI: “AI is coming. It is coming quickly. We want to be part of whatever transition happens.” By Dave Davis and Max Einhorn AI for Content Owners: Litigate, Engage, or Ignore Dave Davis is CEO of the Los Angeles-based Calliope Networks, which aggregates global audiovisual content to license as training data to AI companies. Before Calliope Networks, Davis spent 20 years at Hollywood studios, including NBCUniversal, Paramount Pictures, and 20th Century Fox, driving international content distribution. Davis is a member of the California Bar, and serves on the Copyright Society’s AI subcommittee. Max Einhorn is the founder of the Los Angeles-based consulting firm Dangerous Ideas, which helps media companies leverage Generative AI in both business and creative production. He was recently named SVP, Acquisitions & Innovations at the Los Angeles-based Shout! Studios, and functions as an advisor to Calliope Networks. VIDEOAGE October 2024 Film-TV Rights
The Pioneers Always Standing Tall Pioneer and Guiding Force Paramount International Television president 1978-1998 Proprietor WIN Television Network Australia, 1979 ongoing Joint owner NRL team St. George Illawarra Dragons Happy Birthday from family, friends and colleagues Salute to Bruce Gordon on your 95th Birthday The Paramount Team St George Illawarra Dragons
24 Financing Content: Not an Easy Task But Essential For Indies By Robin Philip* The year 2024 has been a year of growing interest rates, inflation caused by more than one war, and uncertainties surrounding change of political power in key global economies. But for independent content producers, there is a silver lining. As global financial analysts explore new avenues of investment for their clients in the midst of these uncertainties, they seem more open to media investments than ever before. If you have a great story/idea and plan to execute it to perfection, it’s a remarkable time to be an independent producer. Historically, to complete their projects, indie producers have often relied on their personal savings or gap financing by unorganized private credit firms/money lenders. This highrisk credit usually cost between two to three percent interest per month and the term was usually very short, between six and 18 months. This put a lot of pressure on producers to finish projects and start monetizing quickly, or their costs went up exponentially in terms of interest rates and penalties. Projects stopping mid-way due to lack of funds, overshooting budgets, or creativity compromised due to funding pressures are stories that are a norm in the industry. Large studios that have built a track record with a slate of successful projects and healthy financial balance sheets get funded by NonBanking Financial Companies (NBFCs) for an interest rate between nine and 15 percent per annum for a term of three to five years depending on the risk levels. They raise about 50 to 70 percent of their project costs from such sources and rely on advanced box office collections or pre-sales to platforms to settle their remaining costs around the back end of production. This drastically reduces costs for such large studios. Independent producers, unfortunately, do not have this track record of successful content or healthy financials to attract NBFCs. More often than not, these are media founders driven by their creative willpower to bring projects to life and have limited bookkeeping and legal expertise. They’re hustlers with an intent to make it happen. However, they struggle to forecast cash-flow needs, which is one of the main reasons of shutdown for many indie projects. At times, platforms do greenlight unique projects by small independent producers, but to reduce their risk, they back-load their payouts with around 60 percent paid after content delivery. This again leaves producers to look for gap financing at exorbitantly high interest rates. Government rebate programs with an objective to support small producers or boost tourism by promoting their country within foreign content is one additional avenue of indirect financing. But the payouts are usually postcompletion, which does not help immediate production cash flow, and there are multiple entry barriers which don’t make it very accessible or a credible source for all producers. The new and reliable avenues for indie producers with good projects are: 1. Content Financing Private Equity Investment Funds (PEIF): Government licensed and regulated asset management companies in many markets have started offering media content as financial products to their HNI (High Net-worth Individuals) clients for investment options with lock-in periods of three to five years. Media was not a preferred sector in the past, but it is now amidst all the uncertainties. These media funds usually set up a team of consultants from the industry who help them find promising producers and evaluate projects. The usual approach is to keep a six to 10 percent hurdle rate per annum for the fund after recovery of the invested budget and thereafter share profit at a negotiated rate with the producer. These PEIF options are ideal for indie producers looking for funding for large budget projects. Funds usually set up a Special Purpose Vehicle (SPV) with each producer to handle financials and hold the developed Intellectual Property (IP). Producers will be expected to provide regular status updates and keep an open book for audits. 2. Co-production teams created by platforms: Most large and reputed platforms globally are either listed on stock exchanges or are well funded by private investors and are usually cash-rich. They need content to keep their platforms alive. Many of these platforms have taken the opportunity to optimize their content budgets by setting up co-production teams looking for projects to invest in with indie producers and then monetize in foreign markets by partnering with global distribution companies. The platform stands to own IP (versus just licensing content), which contributes to their valuation while revenues boost their topline income. The advantage of working with such platforms for an indie producer is that there’s less pressure of 100 percent recovery since platforms retain the rights for their own consumption in certain markets for a defined percentage of the production budget. There are also some government-backed/ owned platforms in certain markets which have created co-production models such that they invest with indie producers and also facilitate sale to their own platform. This also helps with getting government rebates for showcasing their country in the content. I would call this one of the most attractive options available to producers today. 3. Working with co-production specialist companies: A result of the two above options and the growing need for production synergies is the emergence of companies like Geophil, which specialize in facilitating global co-productions and acting as the bridge between these PEIFs/platforms/individual investors and indie production houses. They manage the financial, legal, and creative aspects to ensure all stakeholder interests are managed. These companies bring their expertise in identifying content with the best monetization potential and also work with producers to optimize budgets and schedules. They also create a robust and transparent reporting model, which provides reassurance to the co-producing funds and platforms. By leveraging their experience, they find the best distribution models globally and ensure that monetization is optimized. For indie producers working with such co-production companies, they get to focus on creating good content while the onus of managing the coproducers and the risk of monetization rests with the co-production company. Similarly for co-producers, they get to work with indie producers without the risk of financial uncertainty or structured information flow, as these co-production companies are managed by media experts. * Robin Philip is managing director of the Dubai-based Geophil, which focuses on global coproductions. Their most recent Turkish co-production drama series, Alaca, was just completed. VIDEOAGE October 2024 Business & Finance
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