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Rethinking Production Tony Cohen Outlining the Future of the Production Industry at the 2009 Mipcom

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Rethinking Production Tony Cohen Outlining the Future of the Production Industry at the 2009 Mipcom 8 October 2009 week 41 Rethinking Production Tony Cohen outlining the future of the production industry at the 2009 Mipcom UK / Germany The Netherlands New joint drama initiative Celebrating 20 years on air Hungary Luxembourg RTL Most, first catch-up RTL Group’s communications service in the country officers met in Brussels week 4 COVER: Tony Cohen, CEO of FremantleMedia 2 week 41 the RTL Group intranet “A new form of collaboration” Speaking at Mipcom, Tony Cohen reviewed the state of the production industry today and also outlined a new form of collaboration between producers and broadcasters. Tony Cohen at the podium during his Mipcom keynote France - 5 October 2009 With the TV advertising markets declining production does indeed have a future, “perhaps significantly throughout Europe, Backstage has even a rather good one,” Tony addressed three reported comprehensively how RTL Group is major topics: new opportunities in the online responding to the new market realities. Against world, current trends in TV viewing habits and this challenging economic background, decision- promising future strategies for production makers from the TV, film, digital media and companies when it comes to fostering creativity, advertising industries are gathering this week in increasing engagement with its audiences and Cannes, France, for the 2009 Micpom tradeshow securing funding. and conference which calls itself “the world’s entertainment content market.” Talking about audiences for online content, Tony shared his experiences from FremantleMedia’s As CEO of FremantleMedia, one of the largest TV various online projects. These range from the production groups worldwide, Tony Cohen casting portal Yourchance.de in Germany to delivered an instructive keynote entitled comedy like Toyboize in the UK and low-cost “Rethinking Production” on 5 October 2009. The dramas for online platforms such as Freak on My speech centred on one fundamental question: “Is Space in the UK. “Exercises like this are teaching there a future for the television production us a lot about what works online and what industry?”. To explain why he believes that TV doesn’t,” he said. TV viewing is going up 3 week 41 the RTL Group intranet The insights gained are clear and straightforward: “I believe that for the foreseeable future we viewers don’t mind the length of online videos should focus on what has for so long been our and they don’t want to be “manically interactive.” core business. By this I mean production for Instead, most people still just want to sit back broadcasters and the distribution and and watch. “Viewers also don’t want to decide exploitation of our programming brands.” the plot lines and what should happen to the characters. Professional writers do a much better And indeed, the fundamentals of this core job. What viewers really wanted was business remain strong: TV viewing is going up in engagement,” summarised Tony. Europe as well as in North America. The claim that young people are deserting TV is a myth as In terms of funding for online video productions, young adults in the US still spend 90 per cent of Tony said that the entertainment skills of their viewing time watching traditional scheduled producers make them a perfect partner for TV. American teenagers are actually watching 6 advertisers who want audiences totally engaged per cent more TV overall than they were five in their advertising and therefore with their years ago. In a nutshell, “young people want to product. He also advocated again for the watch television, almost as much as everyone potential of micro-payments – an approach else.” Audiences of FremantleMedia’s blockbuster shows also go up series on series which could be applied to TV content like catch- Citing the rising audience figures of popular up, exclusive previews and special material for FremantleMedia shows such as Got Talent, The ‘superfans’ of shows such as Got Talent, Farmer Wants A Wife or the UK version of The The X Factor or Idols. Apprentice, Tony explained that “blockbuster entertainment” currently works best for everyone Tony also used his keynote to present Sun Quiz – for broadcasters because they are “big, proven Live, the world’s first live online pay-to-play game and live”, for producers because they work show. The project was launched this week on the everywhere in the world. “And audiences love website of the UK tabloid The Sun and is built on them because they can identify with the a micro-charging model. “You can watch the contestants and their journey. The shows build Quiz for free or pay to play. It’s quite addictive, if such large audiences that they become national I say so myself. And this show only costs EUR events that generate that watercooler chatter we 300 an hour to make,” Tony explained. were told we’d never hear again.” However, on the other side, more and more smaller shows While clearly being optimistic about the potential struggle to find an audience. for TV output online, he also made it very clear: 4 week 41 the RTL Group intranet “We need The brand extensions for The Price Is Right generate considerable ancillary revenues to be open to Based on the current state of the industry, Tony Thirdly, Tony addressed the outlined successful future strategies for biggest challenge of all – funding. discussion” producers, always sharing concrete experiences Referring to FremantleMedia’s from FremantleMedia’s international operations. successful German-British co- First, extending the scope of the most popular production Soko Leipzig/The Bill (see shows. These brand extensions can happen in also page 6 on the new joint drama several ways, for example by uploading new development unit), he said: “We’ve all got to content to special websites, even when the squeeze more value out of the resources we have shows are off the air. Or, as in the case with the that are too inefficiently spread throughout what iconic US game show The Price Is Right, by is a very fragmented industry.” In addition, board games, DVDs, online and mobile games or producers can achieve significant cost savings, even a live theatre show in Las Vegas that has without affecting the viewers’ perception of the run six days a week for the last two and a half show. Concrete measures could include years. Addressing the ‘superfans’ of The X Factor adopting more efficient technology like low-cost or Idols helped FremantleMedia to develop and low-energy LED lights, remaking the rules for considerable ancillary revenues – with the writing to save on actor time, make up and merchandising activities, live tours and The costume or trying harder “to stand up to American Idol Experience at Walt Disney World customers who demand expensive changes Resort, Florida. after a show’s already been cut”. Secondly, Tony turned to the specific challenges Tony concluded by calling for a new form of of producing drama today as reality and collaboration between producers and their oldest entertainments shows have taken over many partners, the broadcasters. “Would broadcasters narrative elements such as heroes, villains, hand over a share of advertising revenue and conflict or raw emotion. “There are things that we give more control to producers if we took on can do to make drama able to thrive in the new more risk and helped fund their programmes? realities. Viewers are demanding a much more Would producers give up some of their rights to intense experience than they used to. Most help broadcasters expand their channels and dramas already consume a great deal more story online services? Can we together create content than they did even five years ago. However, we that we can launch across multiple platforms to can still shoot more scenes and cut them faster. create compelling new brands? I am very open to We can improve production quality by moving to discussion on this. I think we all need to be.” high definition, and upgrading sets, costumes and music. In the writing we can increase the emotional stakes,” he explained. 5 week 41 the RTL Group intranet New UK/German joint drama initiative Talkback Thames and UFA Fernsehproduktion, the UK and German production companies of FremantleMedia, are to form a joint Drama Development Unit. Germany / United Kingdom - 6 October 2009 The Bill and SOKO Lepzig The Drama Development Unit, based in Berlin, FremantleMedia is working across our will be jointly managed by Gary Carter (Chief worldwide network of companies to leverage Operating Officer, FremantleMedia), Norbert our shared experience and expertise, and Sauer (Chief Operating Officer, UFA create unique opportunities in the global Fernsehproduktion) and Lorraine Heggessey market. The creation of this unit also represents (Managing Director, Talkback Thames). The our strong commitment to drama and reflects operative management will be ensured by the investment that we continue to make in our Johnathan Young (Head of Drama, Talkback global businesses around the world." Thames) and Jörg Winger (Executive Producer, UFA Fernsehproduktion). The unit will focus Lorraine Heggessey, CEO Talkback Thames primarily on producing dramas for the UK and commented: “We are very excited about this German television markets with a view to initiative and to work again with our German expanding internationally and into the digital sister company. Our success with The Bill and media market in the future. Soko Leipzig collaboration has taught us that we have a lot of common ground and a strong This follows a successful collaboration creative partnership with our German between Talkback Thames and UFA counterparts that we can build on. With the Fernsehproduktion last year on The Bill and current challenges in the drama arena and the Soko Leipzig, successful prime-time police shifting media landscape it is more important dramas in Britain and Germany respectively.
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