INTERNATIONAL www.VideoAge.org THE BUSINESS JOURNAL OF FILM, BROADCASTING, STREAMING, PRODUCTION, DISTRIBUTION January 2024 - VOL. 44 NO. 1 - $9.75 (Continued on Page 20) Affiliates: An Inscrutable TV Model Key to U.S. Networks S ince the beginning, the foundation of the U.S. television system has been broadcasting the programs nationally, which ultimately led to the creation of an affiliate-TV model. With that model, a program developed by a central structure (or a studio) would be aired by several local TV stations. This model was developed to take advantage of both local ads (like from supermarkets and car dealers) and national sponsors (like Coca Cola). From an initial five interconnected local TV stations in 1945 (with WNBT as the originator), by 1951 there were four different networks in operation. Today, 240 TV stations are affiliated with the ABC TV network (owned by Disney), of which eight are owned and operated (O&O) by ABC, while the rest are independently owned (mostly by station groups). But while affiliation evolved because locally produced pro- (Continued on Page 26) Would Argentina’s TV sector replace successful Turkish dramas with Chinese soap operas? Would Turkish companies accept the Chinese Yuan instead of the U.S. dollar for their novelas? Both scenarios could soon play out now that Javier Milei, a 53-year-old economist, has been elected president of Argentina. Milei wants to adopt the U.S. dollar as the national currency, scrap the Central Bank of Argentina, and give priority to the U.S. over China. But China is a major buyer of Argentina’s soybeans, its lithium, and other The Weight of The Peso on Argentinian Biz (Continued on Page 24) Nowadays, the world seems to be split into two sides. Some call it “polarized.” The East confronting the West, the ecologists battling the deniers, the streamers versus the broadcasters, Wall Street against Main Street… So why shouldn’t the upcoming dueling Miami, Florida TV markets also fight in the same ring? Miami Split Over Two Dueling TV Markets My 2¢: The resilience of the middlemen that studios couldn’t eliminate Blueprint to revamp the AFM with manageable solutions Public domain films, TV shows are easy to find, hard to spot Finding MIPTV on the new content sales map Page 30 Page 18 Page 14 Page 12
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 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 We should all be impressed by the resilience of the middlemen that not even the mighty U.S. studios were able to eliminate — starting with movie theater owners and cable TV/satellite TV providers. Page 30 Cover Stories News Dollarization: The weight of the peso on Argentina’s national economy Miami is split between two dueling TV markets held close together Affiliate business: An inscrutable TV model is key to U.S. nets’ future Features 8. Book review: How the Marvel cinematic universe conquered Hollywood 12. Finding MIPTV. We know it’s somewhere, but where? 14. Little known aspects of public domain films 18. Blueprint to revamp the AFM with manageable solutions 28. How to pre-pay tickets for canceled flights. Plus, Calendar of events 4. World: After China and India, AI TV news comes to the U.S. 6. World: VideoAge replicated in the WSJ. Plus, Remembering Herb Lazarus and “His Hats” 10. Market review: Challenges facing Asia TV Forum & Market
4 World VIDEOAGE January 2024 (Continued on Page 6) However, Channel 1 news is not backing a new concept. In 2018, the state news channel in China began using AI news anchors. In fact, a female AI figure, known as Ren Xiaorong (pictured), is still providing on-air news 24 hours a day, 365 days a year. A second news channel was developed in Bhubaneswar, India, by OTV Network in July 2023. The fake anchors on Ch.1 will be modeled on real people and one has to wonder what sort of compensation those people will receive. One also wonders if the channel will have to pay into a SAG-AFTRA union fund because they are putting members out of work or if there will be a reduction in screen time for AI newscasters in order to make room for some actual human newscasters. In addition, if the channel delivers a 100 percent app-based service, will any such union concerns count anyway, as it will not fall under traditional and current broadcast guidelines? The channel is implementing another tool that will indicate the type of news viewers prefer. Once they have been watching for a certain period and established a pattern, the channel will deliver stories accordingly. The big and bold plans promised by the channel’s founder, Adam Mosam, also include the ability to translate the news into different languages. A former chief digital officer at Chicken Soup for the Soul Entertainment, Mosam has also been involved in Binspy Systems, AnyDATA, and Pivotshare, and is still involved with Startup Index Fund and Okay Bears, as well as a projected 2025 start for Momorobo, an Applied AI + Robotics Studio. He has partnered on the Channel 1 project with film/TV producer and director Scott Zabielski. Demos viewed by VideoAge show realistic-looking anchors, but one has to wonder how realistic they will be when it comes to breaking news. If the Los Angeles-based Channel 1 news debuts its AI format (funding for which is still underway) as promised, it will stream its content on FAST platforms in the first quarter of 2024, with the Channel 1 app arriving a few months later. Already, industry figures and journalists have made their feelings known about this possible development. Kristen Ruby, CEO of Ruby Media Group, commented on social media, “If you believe in the concept of ‘fake news,’ you have seen nothing. When AI news anchors replace human news anchors — the concept of fake news will have a totally different meaning.” David Sloat of The Tech Wire noted that critics have “concerns about AI news spreading misinformation and lacking journalistic standards regarding accuracy.” After China and India, AI TV News Comes to the U.S. JANUARY 29 - FEBRUARY 1, 2024 � SHERATON NEW ORLEANS Nancy Abraham EVP, Documentary & Family Programming HBO Lisa Heller EVP, Documentary & Family Programming HBO Tom McDonald EVP, Global Factual and Unscripted Content National Geographic Robert Mills EVP, Unscripted & Alternative Entertainment Walt Disney Television IF YOU’RE IN THE UNSCRIPTED BIZ, THIS IS WHERE YOU NEED TO BE SUMMIT.REALSCREEN.COM KEYNOTES INCLUDE:
Marriott Ballroom, Booth 127 Fast Production Film | Fast Production Film Studio | FilmLab ICI Productions | Idea Film around the World | Malno | Mavish Ask Profesional Film Partners | Retina Film Production 15-21 February 2024 Time to go East: Go see the Romanians! In Berlin
6 World VIDEOAGE January 2024 VideoAge Replicated in the WSJ The headlines were almost the same. “The New Trend: Migrating from Social Media to OTT” was the top story in the November 6, 2023 issue of VideoAge and: “Social Media Is Warping Into Old-Fashioned Mass Media” was the headline for the November 18, 2023 edition of The Wall Street Journal. Shelley Lazarus, an accomplished artist, painted a watercolor canvas depicting all the hats that her late husband, Herb Lazarus, wore at different jobs throughout his long career in the television business. She titled the painting, which shows five separate head coverings, “His Hats” (pictured). “He worked for Carsey-Werner till April 18, 2023, when he died”, she said. “The New York [hat] represents his birthplace [in 1935], and the Bath Lane is where we have our beach house.” From Herb Lazarus’s profile in VideoAge’s October 2015 Issue, we learned that the Cannes hat represented his time at Columbia (1971-1977), the Fox hat is from 1963-1971, and the CarseyWerner hat is from 1996-2023. Remembering Herb Lazarus With “His Hats” (Continued from Page 4) And many have noted that there could definitely be some improvements made with regard to having the anchors’ lips look like they are actually forming the words they are supposed to be saying because, at the moment, it seems like the viewer is watching an overdubbed foreign movie. Mosam has said he wants to “create a responsible use of the technology.” He’s also stated that there would be a transparency with viewers regarding AI and original content. The news itself would be sourced from freelance journalists, traditional news sources, and from public and government records. Mosam expects that a staff of 11 humans will be able to handle everything behind the scenes. (By Mike Reynolds) After China and India, AI TV News Comes to the U.S. @all3media_int all3mediainternational.com
8 Book Review VIDEOAGE January 2024 Cultural commentators Joanna Robinson, Dave Gonzales, and Gavin Edwards present an all-inclusive account that chronicles Marvel Studios’ rise in Hollywood and the MCU’s worldwide appeal. How The MCU Conquered Hollywood: A New Book Highlights Marvel Studios’ History By Luis Polanco I s it any surprise how popular the fantastical superhero movies of the Marvel Cinematic Universe (MCU) have become? While there might be the occasional flop across the network of movies and television series that make up the MCU, overall, Marvel content delivers high production value, spectacular visual effects, a combination of action-packed drama and light comedy, and an array of iconic superheroes. Marvel Studios, the film and TV production company that is a subsidiary of Walt Disney Studios, draws on the characters and storylines from Marvel Comics to create a connected universe where fans can follow characters and appreciate their character development over the course of multiple films. The interconnectedness appeals to fans, especially those who grew up reading Marvel comics, and is why the MCU has a strong fanbase. The recently published MCU: The Reign of Marvel Studios (528 pgs., Liveright, 2023, $35) takes on the enormous task of historicizing the Marvel Cinematic Universe and collecting the behind-the-scenes stories that explain why the media franchise is such a dominant force in Hollywood. The authors Joanna Robinson, Dave Gonzales, and Gavin Edwards turn to their own expertise as well as extensive interviews to capture the evolution of Marvel Studios and fill in little-known passages in that timeline. Robinson is a writer and podcaster at the sports and pop culture website The Ringer. Gonzales is also a podcaster, best known for hosting film and pop-culture podcasts, “Fighting in the War Room” and The Ringer’s “Trial By Content.” Edwards is the author of 12 previous books, including The Tao of Bill Murray. The authors have organized the book into chapters that move chronologically through time, starting with the MCU’s origins in comics and the Marvel Studios of the early aughts to the production behemoth everyone knows now. The chapters follow Marvel Studios’ different phases — the studio bunches its films into groupings called “Phases.” Phase One coincides with the rise of Kevin Feige as president of Production and the release of Iron Man in 2008, and also includes the releases of The Incredible Hulk, Thor, Captain America: The First Avenger, and The Avengers. The subsequent phases build on these characters and storylines while also introducing new ones such as Ant-Man in Phase Two and Black Panther in Phase Three, and so on. The book celebrates Marvel Studios’ successes, but it doesn’t shy away from acknowledging its humble beginnings. “Marvel Studios began with failure and ruin and bankruptcy”, the authors write. They are referring to the mid-1990s when Marvel Studios emerged out of mergers, massive debts, and Chapter 11 bankruptcy filings, newly owned by ToyBiz executives Isaac Perlmutter and Avi Arad, who ushered in the studio’s shift toward films. Each chapter of the book brings to the fore various executives and creatives whose hands have played a significant role in shaping the vision of Marvel Studios. Of course, Feige, who today serves as president and chief creative officer of Marvel Studios, appears throughout as a leader who was key to grounding the future of Marvel in its history. Very early on, as an associate producer on X-Men, “Feige would sneak issues to actors hungry to understand their characters.” Later on, the authors note how Feige would turn to the original comics to solve story problems in the films. They write, “The MCU became what it is because the person overseeing it understands that in many ways, it already existed.” Focusing in on executives from chapter to chapter, when different projects are emerging, allows for a wellrounded view of the studio’s history. The Marvel Cinematic Universe is a titanic cultural phenomenon of the 21st century. With their book, Robinson, Gonzales, and Edwards show how MCU storytelling has an influence that extends beyond the movie screen. MCU: The Reign of Marvel Studios is essential reading for fans of the ever-growing and ever-popular media franchise. The three authors have gone above and beyond in presenting a compelling book that not only pays homage to the legacy of Marvel Studios but also serves as a historical record of the overall arc of the studio and the little-known stories behind the production of each film and series. This book stands as an encyclopedic chronicle of Marvel Studios’ transformation into the Hollywood hero it is today. The book celebrates Marvel Studios’ successes, but it doesn’t shy away from acknowledging its humble beginnings.
10 VIDEOAGE January 2024 Arrow Studios, a German company based in London, was represented in SEA by Bomanbridge. It is also possible that, due to those difficulties, this time around, the French pavilion had only half the number of companies exhibiting than it did in previous years. Other Europeans, like, for example, the Italians, completely abandoned the market. Canadian companies such as 9 Story, did, however, attend and picked up some of the slack. Emblematic of this was a quote from Izzet Pinto, CEO of Turkey’s Global Agency. He was not personally seen at ATF, but his company was among the exhibitors. He was quoted in the ATF’s official daily as saying, “Global Agency has been mostly focused on Turkish and European projects, but they will now be focusing on Asia as well.” Conversely, some Asian executives, like Yinan Ding of China’s Huace, found it difficult to sell their produced content to European buyers. These issues didn’t seem to discourage Indian companies, whose presence at ATF was felt by all. Contrary to Turkish, European, and American companies, they sent their top-level executives, like Anil Khera, CEO of Mumbai-based One Take Media. As for the activities on the exhibition floor, the first day of the market was extremely hectic. Things slowed down considerably on the second day, and continued at this slower pace until Friday, the market’s closing day. Problems loom now for the 2024 ATF event since both MIPCOM and MIP Cancun will be held later than usual, with the latter actually ending November 22, leaving little time for some exhibitors to prepare for the early December Singapore market (just 10 days). For this reason, next year, VideoAge will be combining its MIP Cancun and ATF Issues into a single November edition that will be distributed at both markets. As for the next ATF, the event will be taking place December 3-6, 2024. Contrary to what VideoAge reported in its December 2023 preview, the “and Market” that was added to the name of this year’s 24th annual Asia TV Forum (ATF) didn’t indicate that the market portion of the event was simply an “afterthought” of the conference section. Indeed, even the event’s own official daily devoted 11 full pages — a record number — to the market’s activities. However, the market still lacked some basics, including a board where participants could look up exhibitors’ stand numbers (like other sister TV markets organized by the same group, RX, do) without having to waste time uploading, opening, and finally scrolling through the ATF’s online listings (which were provided through a QR code on registration badges). Notably, there was indeed a large board provided for the conference portion of the event. The official numbers released for the fourday event (of which three days were dedicated to the market) that was held at the Marina Bay Sands Convention Center in Singapore were: 715 seller companies (460 as exhibitors), including 15 pavilions and 911 in-person content buyers (as opposed to buyers who attended virtually). In 2022, ATF recorded a total of 1,000 buyers and 400 exhibitors. Nonetheless, it has been officially declared the biggest ATF market to date, and boasted a restructured exhibition floor — albeit with a somewhat confusing stand numeration: FA, FB, FC, etc. “Someone in the organization must have gotten bored”, was a passing comment from a visitor who couldn’t find a stand. This year’s ATF began on December 5, a day before the opening of the market, in order to give more time to the conference portion of the trade show that mostly attracts local Southeast Asian executives. The perceived de-emphasis of the market portion caused many top-level executives from content distribution companies to skip the event entirely and instead send their junior associates to man their stands at ATF. According to some reports, this aspect was upsetting to some top-level buyers, especially those from Japan, who found it humiliating to have to meet with lower-ranking sales executives. The trade media, too, skipped the market in droves, with only five publications (including VideoAge) distributing their printed editions, while a total of 16 were present with their QR codes. Another concern for potential attendees is how difficult it is for Western companies to sell their wares to content buyers in Asia if not supported by a local office, partially because of cultural and political (read: censorship) differences, but also because time differences make direct communication a big problem. Some of these issues induced a number of Latin companies to forgo the territory entirely, while some European companies picked up local reps. For example, Red Challenges Facing Asia TV Forum and Market ATF Review It has been officially declared the biggest ATF market to date, and boasted a restructured exhibition floor — albeit with a somewhat confusing stand numeration. Anil Khera, CEO of India’s One Take Media At the Japan networking lunch: market coordinator Matthew Bejot and WOWOW’s International Sales manager, Hideki Furutani Yinan Ding, senior manager at China’s Huace Global
12 VIDEOAGE January 2024 MIPTV Preview Finding MIPTV. We Know It’s Somewhere, But Where? An American content executive VideoAge reporters encountered in Singapore during Asia TV Forum in December asked if MIPTV had been scrapped. Retorted another American also at ATF who was eavesdropping, “MIPTV is getting bad press. I actually find the market good!” MIP-TV, or MIPTV, as it is now called (without the hyphen) is set to take place in Cannes, April 8-10, 2024, in the same month that it has been staged for the past 61 years. Unscripted-focused events MIPDoc and MIPFormats will take place during the weekend immediately prior to the market’s start. The question is, will the organizers make this year’s market a fulfilling one? So far, one of the drawbacks that MIPTV participants might have to face is bad weather since early April is often a rainy period in that region. But that’s nothing that a good umbrella won’t solve. Another potentially bad thing is the fact that the market is encircled by a plethora of other markets, conferences, and seminars. It all starts with the EFM in Berlin, which is ending February 21, 2024; there, exhibitors will be attracted by the Netflix executives who are expected to attend (if they can spend $55 million on a sci-fi show that never produced an episode, they can certainly invest a couple of million for an actual movie). The London Screenings follow shortly after, ending on March 1, 2024; then there’s the Sports Video Group Summit on March 4 in Las Vegas; SXSW, which is happening March 8-16 in Austin, Texas; then Series Mania in Lille, France, to be held March 15-22; then Filmart in Hong Kong, March 11-24; then the Andina Link in Cartagena, Colombia, taking place March 18-21; then Streaming Brazil in Sao Paulo on April 11; then the NAB Show, happening April 14-17 in Las Vegas; then Hot Docs in Toronto, Canada, starting on April 25. About this plethora of events, Lucy Smith, Entertainment Division director of MIPTV organizer, RX France, said: “Whilst the first half of the year has become more crowded in the calendar, we focus on what we do, and what we are the only ones to do: a major international spring market geared to deal-making and discovery. Buyers need to meet for deals to get done and we bring the global industry together in one place. Last year, we welcomed representatives from over 80 countries to Cannes. MIPTV 2024 is already poised for a strong return in April 2024. We have confirmed nearly 70 exhibitors, and are way ahead of stand renewals versus this time last year.” She continued, noting that the overall “response is positive, early, and from all regions. Last year, over 5,500 delegates gathered in person in Cannes, roughly a third of which were buyers, and this included some 500 exhibitors. We’re tracking to expect similar in 2024.” Naturally, MIPTV’s main attraction will be its business aspects since executives don’t travel that far just to hear people talking. However, it’s to be hoped that organizers will stage some seminars that would attract the market-oriented crowd, like a group of TV network executives illustrating their programming strategies for the new TV season. In order to boost participation on the exhibition floor side, some have suggested grouping several FAST providers in one area of the Cannes Palais since these hot new TV outlets that TV networks are rushing into present multiple problems and issues, not the least of which is the fact that most companies in the FAST business are struggling financially. In addition, a conference on FAST could highlight speakers representing the key elements of FAST channels: content providers, platforms, programmatic advertising, playout providers, channel providers, and brand owners (a.k.a. publishers). After all, the business model of IP owners is mostly known — sell to established FAST channels on a rev-share basis, but demand a minimum guarantee from the others. Other, relatively new, business players that could be attracted to the Spring market are the large number of Social Media talents that are striving to move into the OTT realm, as demonstrated by the November 2023 VideoAge Issue, and a subsequent report in the Wall Street Journal. Meanwhile, turning our attention to the exhibitors, Nadav Palti, CEO of the Tel-Avivbased Dori Media, reminded that “the main reasons to attend markets are sales and networking. It is important to attend markets, meet buyers and colleagues, see face-to-face what is happening in the industry and in other companies.” He also emphasized that MIPTV is “still one of the biggest and most important markets, and as such, is attractive.” Palti added that, as “a very important market, it is therefore a good time to release new content.” He also addressed the question of whether buyers at MIPTV are different from those seen at MIPCOM. “[MIPTV] has always been smaller than MIPCOM, and following the pandemic, the gap between them became even bigger. The increase in expenses required companies to be more economically efficient, which led to [a reduced] number of participating companies at the markets. Especially companies that needed to travel from far. Therefore, the buyers differ between the markets.” Jalal Merhi of Toronto’s Film One Media “feels that [MIPTV] is more focused on business”, and for that reason he always has a “positive market.” Merhi added that COVID made MIPTV lose some of its allure, “but I feel it will rebound.” Lucy Smith, Entertainment Division director of MIPTV organizer, RX France
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14 VIDEOAGE January 2024 For over 30 years Texas-based distribution company Reel Media International has distributed movies and series that have fallen into the public domain. That is, film and TV content that has lost copyright protections. We began with less than 100 films, but now have 6,000 titles in our library. So what are the benefits and potential problems of having a public domain library to supplement what international distributors already have? Public domain films can be real “evergreens” if they have recognizable stars. There are people who love to watch these films over and over again, and the movies are typically family friendly. How do you know if a film is in the public domain? Just because someone has it on a list or someone says it is isn’t enough. In fact, that could result in a future lawsuit. We recognized this at an early stage and began paying for copyright searches to be done at the Library of Congress. Yes, these are expensive, and we have paid for over 15,000 copyright searches over the years, but we did what we had to do to be on the right side of the law. There are many public domain films out there, but the quality of the master is sometimes less than perfect. Over the years, if we found a better film print or master, we would buy it in order to have the best possible quality. We’ve upgraded some titles as many as four times. Just because a foreign film might be in the public domain in the United States, odds are high that it is not internationally. For many years, the copyright laws in the United States were different from those in Berne Convention Countries (like Belgium, Germany, France, Italy, etc.) until the U.S. finally signed the Berne Copyright Treaty in 1989. Under U.S. copyright law prior to the mid1900s, a film print had to be sent to the Library of Congress with the filing of a standard form. But there were production companies that simply never filed for a copyright, and so the film went into the public domain. Sometimes the production companies forgot to put a copyright notice at the beginning or end of a film, and with no copyright notice, when the film prints left the lab, it was automatically in the public domain. If they did file for a copyright, they had to renew the copyright prior to January 1 of the 29th year after the release of the film. Many production companies either forgot or had ceased business by that time. Many felt that it was not worth it to renew the copyrights on low-budget Westerns, but our company has around 470 Western movies and 28 TV series that boast such stars as John Wayne, Randolph Scott, and Roy Rogers. Starting in 1964, if a film had never been formally registered for a copyright, the copyright could be filed anytime in 95 years from the copyright notice that was placed on the film (without registration). Here again time plays a part. Many production companies only produced one or two films and then folded. Or the producers are no longer alive to deal with all of this stuff. U.S. copyright laws changed again in 1979. If someone filed prior to 1979 and wanted compensation from, let’s say a company that was selling or showing the film, they would have had to pay their own attorney’s fees. Practically, what we saw was simply a notice to cease selling the film, or they would agree on royalties from that point forward. Starting in 1979, they could ask not only for the previous royalties, but also for attorney fees. Still, the income had to be a major amount to be worth filing. We have found over the years that a number of younger entertainment attorneys had to be educated on the earlier copyright laws. Perhaps they thought they would only be dealing with new films. With classic series one has to be extra careful, since not all of a series that someone claims to be in the public domain actually are. For example, the copyrights on the first 55 episodes of The Beverly Hillbillies (out of 274 total) were not renewed. Bonanza had 31 of 431 episodes without renewed copyrights, but there were episodes before and after those 31 that were renewed. Another example was Dragnet (1951). Using general numbers, the first 100 episodes were not renewed, the second 100 were, and the last 76 were a mixture of copyright renewals and non-renewals. There are cases where some video companies changed the title of what was thought to be a public domain series, not wishing to pay for a copyright search. We actually bought an episode guidebook to match against all the episodes we bought. It was very time consuming, but we discarded many episodes after we purchased them, as we discovered their copyrights were renewed. But if a U.S. film is in the public domain in the United States, under Article 18 of the Berne Copyright Treaty, it is considered in the public domain elsewhere, and cannot regain its copyright. There are exceptions if a country has a law in place for whomever first registers the film. We found over many years that some distribution companies would license films or TV series, claiming they had exclusive rights to the films, only for the licensee to discover later that the films were in the public domain. There have even been a couple of times we saw a company file for a number of copyrights, knowing that they would be rejected, but not before they had made a sale at several times what a public domain film should be priced. Copyrights can be filed for your version of the film if you have made changes such as colorization, or made changes in the film itself, such as music and editing or dubbing or subtitling in a foreign language. As any distributor knows, demands for different sized images have risen over the years. We’ve had to increase our library to over 20,000 images (consisting of photos, posters, lobby cards, etc.) in the past few years. Those images for classic films have gotten harder to find and are a lot more expensive. Having dealt with video companies for many years, we were surprised to learn that a number of streaming companies did not want the stars to be listed on any of those images. Conversely, video companies would plaster the star’s name on the box cover to help sell the video version. Bottom line, be careful when you license public domain films. Most importantly, pay for a proper copyright search, or deal with a company that supplies them as part of the price, and for technical questions, please consult your own entertainment attorney. * Tom T. Moore is the CEO of Reel Media International, dba Reel Funds International, Inc. He first started exhibiting at the London Market around 1982, and exhibited at the first VIDCOM (now MIPCOM) in 1983. Based in Plano, Texas, Moore is also the author of six books. By Tom T. Moore* The Little Known Aspects of Public Domain Films The Moving Business Courtesy of Reel Media International
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INTERNATIONAL SALES Delmar Andrade dandrade@recordtv.com.br www.recordtvnetwork.com Thiago Castro tbcastro@recordtv.com.br
18 VIDEOAGE January 2024 Blueprint to Revamp the Film Mart with Manageable Solutions AFM Under Fire At the end of the problematic 2023 edition of the American Film Market (AFM), which was held at its new venue, the Le Méridien Delfina hotel in Santa Monica, California, October 31-November 5, the AFM’s organizing association, IFTA, sent a note to all registered companies. It stated: “We have heard from you about your disappointments with this year’s AFM venue. That feedback is helpful as we plan for 2024. IFTA and its Board of Directors are committed to a full and open evaluation of what AFM should look like in the future.” It then continued: “Here are some thoughts as we go into our next discussions: We must determine what the AFM should offer its core clients — buyers and sales companies. For our buyers, we understand that it is important to re-establish a smaller ‘campus’ so they can easily and quickly get to the locations of all the sales companies. For sales companies, cost and visibility to buyers are more important than ever. For some, a central location with flexible price options is beneficial, for others, expansive space and privacy matter more. Can those needs be met in a single location? “Plans for AFM 2024 need to be in place by late March 2024 for all preparations to go forward on time. Are there short-term fixes to be explored while a more extensive consultation with you and other stakeholders takes place? “We hope to have face-to-face (or screento-screen) conversations with many of you about what you see as the priorities and necessities of a market today and where you see areas of improvement and change for AFM.” In addition, one IFTA board member who didn’t want to be named explained that “finding a new hotel is the solution, but it’s tricky because we don’t want to tip our hat too soon or it could jeopardize negotiations! But once we (as an organization) decide, I’d be happy to put the people concerns to rest!” Members of the press were not invited to provide comments, so VideoAge asked some veteran AFM participants to contribute their recommendations, offering a list of potential solutions, including changing hotels, changing cities, changing dates, merging with another market, making it shorter, inviting buyers all expenses paid, and splitting the conference and the market into two separate editions (and dates). VideoAge sent the request to 12 executives who exhibited at the AFM, but only six answered, and their comments centered mostly around changing the city. Said Eric Bernstein, head of Library Sales at Goldcrest: “I suggest moving it to Las Vegas. I spoke with a number of foreign buyers and they loved the idea and would definitely go should it be held in Vegas. For the Los Angeles-based companies, it’s still close to home and you can even go for just one day.” To Ryan Friscia of Neon, “This year was worse than others since the Loews was closed. The hotel that AFM selected was horrible. I’d move to a different city. The local L.A. attendees hate AFM because it is in their city. We are stuck dealing with the craziness of a market while dealing with the craziness of home. Our sales team actually stayed at hotels in Santa Monica even though they live in L.A. A city I have heard thrown around is San Diego. They also have the large convention center downtown that could be utilized.” Studio veteran and media consultant Tony Friscia, who did not exhibit at AFM but nevertheless is very familiar with the market, had this to say: “San Diego would be nice, but if you want to retain the small-town beach feeling, how about Santa Barbara? The annual Santa Barbara International Film Festival is an 11-day event, so it seems they would be able to handle the AFM. They have more luxury hotels and things to do than Santa Monica or L.A. I would not merge [because] the AFM would lose its identity.” Steve Saltman of Electric Entertainment commented: “For the AFM, there’s little need for the show in the fall before or after MIPCOM. There is no room prior to MIPCOM with TIFF happening [in Toronto] in early September. There’s little need for AFM post MIPCOM as everyone has just met at both MIPCOM and TIFF as well as ATF, and MIP Cancun being just around the corner. AFM’s best bet would be to merge with another market/festival. This could move it out of L.A. I know L.A. is part of the allure. NATPE is now owned by the folks who own Realscreen, Realscreen West and Kidscreen. However, AFM would be an interesting addition for both parties, making the combined shows more meaningful. However, you’ve got Sundance and EFM [Berlin] to compete with. Realscreen West in early summer would be an interesting merger.” Ken DuBow of Access Entertainment provided the harshest comments: “AFM is dead in Santa Monica. Nobody wants to come back. Not the buyers and certainly not the sellers. Bottom line, I won’t be back. Going to find an apartment or another hotel if they insist on going back to Santa Monica. My choice, if I had one, is Vegas. The buyers suggested it.” Here is an excerpt from a letter DuBow sent to Jean Prewitt, IFTA’s chairperson: “You must realize that AFM is now done in Santa Monica. None of my buyers want to come back. Between the jacked-up hotel prices, the homelessness, and now the strikers, their patience, as a group, is expired. It also cost me business, as buyers stopped coming to the hotel after a couple of days because of the harassment and noise [generated by the strike demonstrators].” And this is an excerpt of the initial e-mail that IFTA sent to all participants: “We want to respond to your questions about the challenges at AFM 2023 and planning for AFM 2024. The noise and picket signs at Le Méridien Delfina may be your most enduring memories of this year. We share your dismay over the jarring intrusion into our Market. While we support the rights of workers to peaceably demonstrate, it was a shocking development when Local 11 decided to trap and victimize the American Film Market as leverage in a PR effort to force Le Méridien Delfina to concede. Their plans were not fully known to IFTA until just weeks before the market, long after all AFM contracts were in place and cancellation periods had expired. There was no possibility of a change to the AFM venue or dates. When the relevant facts were known and confirmed, we notified all registered exhibitors and attendees of the situation via email.” The letter continued: “We engaged strenuously with the City of Santa Monica, the Santa Monica Police, and the City Attorney. However, nothing could be done to prevent the drumming and yelling from the sidewalks — the picketers’ conduct is protected by the First Amendment of the U.S. Constitution. Neither the City nor the police would take proactive action and no preventative legal remedy was available to IFTA. We prevailed upon the City to accept our decision to treat the Hotel as ‘closed to the public for a private event,’ blocking Local 11’s serious efforts to bring its demonstration inside. This was reinforced by the fencing installed around the venue and our extensive private Security team and a 24/7 on-site team of Santa Monica uniformed officers. Alternate shuttle bus routes were triggered quickly to avoid physical encounters at the Hotel front.” Finally, IFTA officer Lise Romanoff of Vision Films commented to VideoAge: “The board welcomes comments from the community, but have no fear that we will make AFM a fabulous market for buyers, sellers, and filmmakers in 2024 and for years to come!”
The Weight 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 of VideoAge Reaches unusual HEIGHTS
VIDEOAGE January 2024 Affiliates 20 (Continued from Cover) grams couldn’t attract national sponsors (mostly due to their poor quality and appeal), today, the local TV network affiliates depend on locally produced shows to attract advertisers since the networks reduced their content offerings in order to focus on their streaming services. However, the changing system revolving around the affiliate relations business model doesn’t concern just programming, but also the financial arrangements between the networks and their affiliates. What is interesting about this aspect is that few executives, analysts, consultants, trade associations, and reporters are actually familiar with the nuts and bolts of how the relationship actually works. The Washington, D.C.-based National Association of Broadcasters (NAB), for example, sent us a link to a historical book (Stay Tuned, by Christopher H. Sterling and John M. Kittross) instead of answering a few questions on the matter, perhaps thinking that the book could help. That book, like other TV books VideoAge consulted, did not even cover affiliate relations. However, before the pandemic the NAB show in Las Vegas used to have affiliate board of directors’ meetings. These meetings resumed in 2023 and were attended by reps from the ABC, CBS, FOX, and NBC TV networks. That year marked the 13th year in which the affiliate boards have met in conjunction with the NAB Show. When asked about the changed business model of network TV affiliation, one former executive of a local TV station group who was touted as an expert in the field, replied: “You’re onto a good topic here [but] I’m not currently best suited for this discussion.” Another former executive of a TV station in a major market said that he “was [just] the CEO”, implying that he was unfamiliar with affiliate business. A similar answer came from a former TV network executive, who said that he wasn’t qualified to comment. An executive currently in charge of affiliate relations at a major TV station group, simply replied: “No comment from me.” One top TV consultant who wanted to remain anonymous put it all in context with a suggestion: “This is a challenging subject and broadcast groups are very reluctant to provide any info.” Finally, no reps from TV networks wanted to comment on the record, with one anonymous FOX executive just saying, “The FOX Broadcast Distribution and Marketing team oversees 209 primary affiliates in DMAs across the country.” DMA, or Designated Market Area, is the way Nielsen ranks the 210 U.S. TV regions. It is also called Television Market Area. Former rating service Arbitron used the term “Area of Dominant Influence” (or ADI). All of this reluctance is understandable since the networks’ affiliate divisions are as convoluted as their operations, which include “Station Relations”, “Affiliate Operations”, the related “Legal” departments, plus dealings with Affiliate Boards of Directors, and Television Affiliate Associations. Each affiliate group (for ABC, NBC, FOX, CBS and The CW) has a board that is selected by the affiliates and represents the affiliates in discussions with the networks on a variety of issues concerning programming, inventory, news, sports, and digital. The boards usually have representatives from the larger groups (e.g. Nexstar, Sinclair, Tegna, etc.), but also have individual station GMs sitting on their boards. Each affiliate group has varying numbers of members based on their bylaws, so likely around eight-to-10 members. Board members are elected by vote of the entire affiliate body once a year, usually for three-year terms. In addition, each affiliate group has its own affiliate association that is comprised of all stations affiliated with the particular network in question. There is not a single Television Affiliates Association. The FCC, the U.S. government communications regulator, also got into the affiliate picture when Westinghouse Broadcasting, which had stations affiliated with each of the three networks, filed a petition with the FCC in 1976 asking for an investigation of affiliate compensation that pushed the FCC to institute an Office of Network Study Special Staff in 1978. In effect, the affiliate relation divisions of the networks are at the core of the U.S. network systems, and separate from the programming side (which is more linked to airtime sales and production divisions), and the recent possibility that Disney could sell the owned and operated (O&O) local TV stations of its ABC network, but retain the programming division, highlighted a business model that is now reaching its third level of development. The first level of this evolution can be considered the business model that started in 1952 when the television sector exploded from 108 local TV stations to 440 in 1960 and 530 in 1965. In that era, local TV stations were revered by the affiliated network, and amply compensated with cash for their airtime that was given to network programming. In addition, the networks gave local affiliates “avails” or “inventory” (a few airtime minutes) within the network programming for local ad sales. Local stations had rate cards for local sales and national sales. These later ones were handled by TV rep firms what would deal with national advertisers who, for example, wanted to reach only the top 20 TV markets (the U.S. is divided in 210 TV markets, with the New York City area being the number 1 market). Under this arrangement, local TV stations became very profitable and even more rewarding with the introduction of “fin-syn” and “prime access” rules in 1970, which created a U.S. syndication market for popular off-network shows and limited the early evening networks’ programming to local TV stations. Earlier, the networks provided affiliates with morning, afternoon, and evening programming (about 60 percent of their schedules). The second level of this network-affiliate evolution started when station groups began buying local stations because they were generating lots of cash. In order to increase profits they triggered cost reduction that affected local programming, causing lower ratings. In 1995, Disney acquired ABC for $19 billion, which included the network, ABC’s eight O&O local TV stations, and the affiliate-relation contracts. CBS also owns eight local TV stations in top TV markets that include Miami and Atlanta. Viacom merged with CBS first in 1999 in a deal valued at $35 billion. In 2006, the two companies split, then merged again in 2019 in a deal valued at $15.4 billion. Today, Wells Fargo Bank analyst Steven Cahall valued ABC and Disney’s eight owned affiliate networks at about $4.5 billion. During this “devolution”, U.S. consumers began to cancel cable and satellite TV subscriptions. This “cord-cutting” meant less affiliate revenue in terms of “retrans” fees for local TV station programming and network shows. Cable-satellite TV subs now account for 56 percent of total TVHH (out of 131.5 million). Before the station groups got into the picture, local TV was in the driver’s seat vis-avis the networks. This power peaked in the mid-1990s when FOX was “stealing” affiliates. John McMorrow of Locality (formerly Cox Media Group) explained that, “Before mid-2000s there was a shift of power back to the networks in markets where their affiliate had nowhere else to go. This reversal eventually morphed into an actual reversal of compensation. This was especially true in markets where there was a viable indie or another station that was seeking an affiliation.” And this takes the U.S. TV sector to the third and current evolution of the affiliaterelation business model where the network makes demands for such things as “Preemption Reimbursement”, (because in the past local TV stations could decide which network shows they could preempt for, for example, a major local sports event. An affiliate agreement between ABC and the local stations of Hearst-Argyle reviewed by VideoAge indicated 2005 as the start of (Continued on Page 22)
22 VIDEOAGE January 2024 Affiliates (Continued From Page 20) “Reverse Compensation” (RC), however, Rick Feldman, a former broadcaster and onetime president of NATPE when it was a TV association, reported, “I left KCOP in 2000. And it was just about then that RC was bubbling.” According to a former TV station group CEO who wants to remain anonymous, “Reverse comp was phased in with each station or group based on their individual contracts with each network. I believe it began around the mid to late 2000s and likely all affiliates were paying the networks for their affiliations by approximately 2012-2015. Again, it would have depended on individual contracts, which vary in length from likely about five years to as many as 10 back then. Currently, most of the deals are much shorter, probably around three years.” An ABC agreement with WSET-TV (Lynchburg, Virginia) as a “Primary Affiliate” for the 2013-2017 period indicated rules for “regularly scheduled programs”, “preemption reimbursement” (at 100 percent for primetime to 15 percent for daytime), and even “broadcast standards” to adhere to. As for the “local inventory level for local sales” within the network programming, the agreement set it at 50 minutes and 15 seconds per week. As for compensation, the agreement stated that the station would pay an annual fee (“payable in monthly installments”), plus retrans fees (paid by cable operators to local The 1990 edition of Stay Tuned, by Christopher H. Sterling and John M. Kittross, a book on the history of American Broadcasting. TV stations) for the networkprogramming portion. One question that VideoAge was not able to clarify was the term “Primary Affiliate,” seen in the agreement between ABC and WSET-TV. “I do not know what you mean by primary affiliate,” reported a former station group executive. “There are a few smaller markets where there are stations with dual affiliations (e.g. CBS/FOX or ABC/NBC), so perhaps there is one that is considered primary? I am not sure. Most stations only have one affiliation,” the exec concluded. After the advent of the station groups, another Wall Street-driven paradigm hit corporate TV executives wanting to eliminate the middlemen (which, in this case was represented by the affiliate TV station and ad agencies) by going directly to the consumer with their streaming services, and in the process negatively affected the affiliates with the networks’ promotion of their own streaming services using the strength of the affiliates’ local TV coverage, and by the networks posting their new network content on their own streaming services, and thus competing with the affiliates. Nonetheless, local TV stations continue to generate income for TV networks, with each viewer worth an estimated $0.23 per hour to the network in ad revenue. (By Dom Serafini) VideoAge WILL GUIDE YOU AT MIPTV
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