CONTENT MATTERS IDEAS IMPACTING THE CONTENT COMMUNITY 2015 Q4 ISSUE #5 Culled from the headlines of the TV Industry’s Trade Press, CONTENT MATTERS is a Bi-Monthly Newsletter curated and contextualized by KATZ Content Strategy’s Bill Carroll.

1. Syndicated Programs Are Millennial Magnets

While much has been made of Millennials leaving traditional linear TV, syndication is proving to be a better draw for the younger set.

2. Let’s All Slap Each Other and Fall in Love

How TV Fell Back in Love with Primetime Soaps

3. Zombie Time Slots Plague Broadcast Prime

A look at broadcast primetime’s most troubling time periods.

5 4. TV Everywhere Key To Attracting Millennials INSIGHTS Millennials aren’t TV-averse – they just want it TO KNOW when and where they choose!

5. Can the TV Guys Put the Netflix Genie Back in the Bottle?

Why the big TV networks are having second thoughts about selling their reruns to Netflix. 1 CONTENT MATTERS IDEAS IMPACTING THE CONTENT COMMUNITY 2015 Q4 ISSUE #5

This fall, at the start of the TV season, broadcast run.” syndicated programming held its ratings The “Modern Family” median age on ABC prowess among Adult 18-34 viewers is 46-years-old, but two years younger versus the same period last year. In (44) in syndication. “The Big Bang Theory,” today’s fragmented viewing environment, while older, drops from 53 on CBS in prime holding your own is as good as a gain time to 51 in syndication. There is a three- – especially as other traditional linear way tie for the top spot among 18-34 TV platforms are posting declines. For viewers between Warner Bros’ “Big Bang broadcast networks, programming dropped Theory,” Twentieth’s “Modern Family” -15% among 18-34 viewers (NTI L+SD, and “Family Guy.” excluding sports & Spanish-language This is not really a new phenomenon. pgmg), while the top 20 cable networks in syndication have always played dropped -12%. Even the top 50 cable younger than when they ran in primetime networks are seeing a -7% decline. on the broadcast networks. Reruns attract By contrast, many of syndication’s new and often younger audiences who top-rated shows are off-network comedy missed the original telecasts, likely because fare, such as Twentieth’s “Modern Family” of scheduling. Most of the syndicated and Warner Bros’ “Big Bang Theory,” which sitcoms air on non-traditional affiliates skew differently in reruns versus their original and independent stations opposite local TV network airings. Barter Sales Executives newscasts and/or the network’s nightly tell us that: “When shows segue into news---both of which have little appeal to syndication, they tend to bring a younger younger adults and teens. This drives many to audience than their concurrent primetime the sitcoms as a more palatable alternative.

CONTENT IN CONTEXT As a result of the solid younger audiences, larger, and new, theatrical business. All syndicated barter sales have been seeing of these should and can translate to gains among new young-skewing marketers continuing local market sales opportunities “especially in mobile and video gaming.” for key sitcoms on local stations. We are told that they are also attracting

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Excerpted from New York Magazine’s on antihero-driven shows, and with that VULTURE… genre in decline, it’s been hard to identify Scandal took the world by storm a what exactly our next era entails. There’s few years ago. Then along came Empire no shortage of very good, very distinct early this year, and at last there was no shows. But the genre at the center of denying it: The age of the primetime innovative TV is the prestige soap, in prestige soap is back, and the shows no small part because shows can now are bigger,and often better, than their embrace a soapier aesthetic without having historical forebears. to be defined purely as a soap. Audiences Like any other primetime TV genre, developed a stronger appetite for Soaps go in and out of fashion. Dallas elaborate drama during the antihero era, invented the modern primetime soap in for high production values and vivid 1981, and established a few genre-defining storytelling, but after a decade of traits. The early ’80s marked the genre’s contemplating the flawed nature of man, first glory era -- alongside Dallas, the 1981 those shows were starting to feel a little lineup included Dynasty, Flamingo Road, suffocating. , and , among At their best, primetime soaps others. There was a boomlet in the ’90s, have a generalized sensation of more with shows like 90210 and Melrose Place, clashes, more crying, more secrets, more and ABC tried to jump-start the genre with twists, more changings-of-the-guard, Desperate Housewives and Ugly Betty more slaps, and more betrayal. There’s in the mid-2000s. What sets apart the a push outwards and upwards. And a modern era from most of its predecessors truly great soap isn’t only defined by its is that many don’t present explicitly as excess. While realism isn’t a priority on soaps but double as shows we classify as these shows, often, through the use of “prestige” television, from historical fiction extreme stylization, we see an almost to political intrigue. It’s the soapy twists Herzogian level of ecstatic truth, the and pervasive melodrama, however that documentarian’s theory that truth is best keep people coming back. arrived at through imagination and an The so-called Golden Age of television exaggeration of reality. centered largely (though not exclusively)

CONTENT IN CONTEXT As the article states: Primetime soaps, at Soaps are there to surprise, delight, and, their core, are about huge emotions that, as yes, even enlighten us, in ways other shows a viewer, you get to live a sliver of – albeit can’t or won’t. Thank God they’re back. vicariously. We don’t really want to cheat And we agree that the genre has revitalized on people, experience murderous rage, slap broadcast and viewer involvement and someone or disfigure them in a moment excitement. of fury ... well, maybe just a teeny tiny bit.

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Excerpted from Advertising Age… better part of the next few months, with This fall, ABC quietly yanked an eye toward premiering “Of Kings and “Wicked City”, becoming the first Prophets” in March. broadcaster to formally cancel a new series. ABC is hardly alone in suffering That’s a matter of semantics, of course, from the broadcast equivalent of recidivism. given that similarly blighted shows like The NBC Thursday 10PM slot has played “Minority Report,” “Blood & Oil” and host to a lineage of failure that runs all “The Player” are merely burning off their the way back to after “E.R.” Fox’s 9PM remaining episodes. But in doing so, ABC Thursday of late has been visited by all the same vacated TV’s most troubled itinerant efforts and “Sleepy Hollow” has time slot. ABC hasn’t had a bona fide hit in all but lost its head in the post-”Bones” the final hour of Tuesday prime since the niche. Even CBS also suffers, as it hasn’t 2000-2001 broadcast season with “NYPD been able to launch a new comedy out Blue”. Although a few workaday dramas of “The Big Bang Theory.” Of the six have stepped in to fill the gap, none have attempts made in as many years, only enjoyed breakout success. two shows managed to retain more than Things took a turn for the worse in half of that lead-in; both were canceled the 2013-14 season, when no fewer than after a single season. three dramas failed to fulfill their initial If many time slots remain challenged, episode orders. “Lucky 7” was yanked a few recent efforts have been successful. after two episodes and ABC filled the hour Noble failures have given way to the with three months’ worth of repeats -- so- phenomenon Fox’s “Empire,” and the called “spackle” programming -- “Killer Thursday 8PM slot is now one of ABC’s Women” and “Mind Games.” All told, ABC strongest anchor hours, thanks to “Grey’s that season programmed just 14 hours of Anatomy.” Dick Wolf’s Windy City civil original scripted content, leaving 60% of service dramas now beat all comers in the the allotted in-season hours to be filled Tuesday and Wednesday slots, allowing with mostly repeats. In 2014-15, ABC NBC to command the highest ad rates in aired all the episodes of “Forever” over late prime behind only its “Blindspot” and its single-season lifespan. Now ABC plans “How to Get Away with Murder.” to slot repeats of “Shark Tank” for the

CONTENT IN CONTEXT While there are those who would argue U.S. A full 61% of all TV consumption that time slots have become more or less happens in real-time, and while that irrelevant in an era in which nearly every figure is being eroded by non-linear viewer has the means to self-program via options, the primetime schedule the time-shifting of DVR, VOD and retains some measure of relevance as streaming, it’s worth noting that live long as the majority of viewers continue viewing remains the default option in the to watch it live.

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According to research from strategy Yet consumer awareness of their consulting firm Altman Vilandrie & Co., TV Everywhere options remains low. younger Millennials (ages 18-24) are 23% Only about a third (36%) of all consumers less likely to cut their cable cord or switch — regardless of age demographic — providers if they know their current indicated they were aware of the ability provider offers “TV Everywhere” than if to watch programs on devices other than they think the service is not available. their televisions, according to the online Meanwhile, among those that do not survey of more than 3,400 consumers currently subscribe to a pay TV service, (which was conducted in concert with 54% of younger Millennials and 47% of premium pay TV channel EPIX). older Millennials (ages 25-34) said they Service providers looking to increase were more likely to subscribe to a service if their subscriber base (or keep current it offered TV Everywhere capabilities. subscribers from leaving) might want “It seems like there’s an opportunity to consider advertising or promotional to attract new subscribers and retain efforts around these features, Hurd says. [current subscribers], particularly among “There hasn’t necessarily been Millennials,” Jonathan Hurd, a director at a commitment across all service Altman Vilandrie & Company, who led the providers and programmers to market survey, tells Marketing Daily. “They it,” he says. “They’ve got to do more responded even more than the older and target [these] campaigns better to population to that value proposition.” reach Millennials.”

CONTENT IN CONTEXT Even though this research is not directly were to make a more concerted effort to related to broadcast television, it might demonstrate how the service can be used have significant implications for local anywhere, on any device. Is not that the market and network mobile strategies. primary aspect of the mobile applications Reiterating the finding, Millennials are for broadcast television? We must be more inclined to subscribe to a pay encouraged that this attitude underlies television service if the provider (station) Millennials thinking.

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So are the [broadcast networks] ready discussion, as well. “Some studios will to pull back on sales to Netflix and other choose to license content to SVOD digital services in the hopes of keeping services like Hulu, Amazon Prime Instant their core business intact? That is the Video and Netflix. Others may not. We question posed by an item on the RE/ have a lot of content to select from.” And, CODE website. Investors will be looking as Netflix CEO Reed Hastings argues, for an answer to that question as most the networks and studios can’t simply of the big entertainment companies announce that they won’t sell to Netflix — report their earnings, but several key TV they need to be able to demonstrate to executives have already signaled the show’s creators that they’ve gotten a that they’re going to stop selling market price for the episodes they sell. their best stuff to digital services — On the other hand, it is helpful for particularly Netflix. three of the big networks — Fox, ABC This comes in response to rising and NBC — to own Hulu, a streaming concerns that Netflix has been using the service that can compete with Netflix (and shows the TV guys have sold them to Amazon) for the rights to those networks’ build up its brand and business, while shows, and which has landed several of simultaneously pulling viewers and them in the last year or so. Another way subscribers away from the TV Industrial to pull video back from Netflix is to hold Complex. Each of those companies is likely it back from all of the digital subscription to take a different tack toward this — in services. Some programmers are talking part because they can’t work together about keeping their shows tied to their without setting off antitrust alarms — but networks — and only making them they seem to be telling Wall Street (and available to pay TV subscribers as part of each other) that they’re willing to “TV Everywhere” programs — for a longer go without some digital money in the stretch of time, so more of the value near term. (theoretically) goes to the networks that Netflix has been anticipating this paid for them.

CONTENT IN CONTEXT CBs has recently announced that on its $6-a-month “CBS All Access” they will create shows that only live streaming service. Whether viewers on their own streaming services. The will accept this remains to be seen, network will produce “Star Trek,” but be certain that this is an evolving and air all of the new shows, with circumstance that Katz will be the exception of a pilot episode, keeping a close eye on.

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