FX Chief: Time Shifting Costs Us 40 Percent of Ad Revenue

01.14.2014

​FX Networks CEO John Landgraf told the Television Critics Association winter press tour Tuesday that lost ad revenue do to time shifting and delayed viewing is the biggest challenge for TV right now, and one of the major factors driving the launch of its FXNow authenticated service.Â

Landgraf estimated that FX loses as much as 40 percent of its ad revenue on some of their "most valuable" series.Â

"We need to find new opportunities to mitigate those losses," he told the gathering.Â

FXNow is the company's on-demand, ad-supported service that launched in December for customers of AT&T UVerse, Comcast XFinity, Midcontinent, Optimum, Suddenlink, and Wow!. It stocks a range of 21st Century Fox content, including films and shows from FX, FXX and FXM.Â

"Sons of Anarchy," according to Landgraf, gets 5 million Live+7 viewers in the demo, but only 2 million who watch live. And only 3 million currently watch the ads on the show. FXNow "will allow us to rebuild our advertising business," he told the critics. FXNow is only available to about 50 percent of FX Networks subscribers, Landgraf said, because the relationship between cablers and MVPDs is "a complicated one." But he insisted they would keep negotiating to bring FXNow to all of their subscribers.Â

Landgraf also raised the sticky subject of so-called stacking rights, or how many episodes of a current season are available for VOD or authenticated streaming. FX says it's "absolutely vital" that all in-season episodes be available to viewers watching via those platforms.Â

When the topic turned to creative control of FX's various properties, Landgraf noted that he has "tremendous amounts" of impact on some shows, and leaves others pretty much alone.Â

Ryan Murphy "has virtual carte blanche to do whatever he wants to do," while he offered that "I don't think Louis CK needs my insight. I think he's fine without it."

Read More: The Hollywood Reporter, Deadline, Variety

Brief Take: FX Networks has been beating the drum loudly for months about stacking rights, time-shifted ad revenue and authenticated streaming. Landgraf is clearly tired of waiting for someone else to force the industry to address these issues, and FX is showing itself to be willing to get out in front.Â