THE BUSINESS JOURNAL OF FILM, BROADCASTING, BROADBAND, PRODUCTION, DISTRIBUTION JANUARY/FEBRUARY 2013 VOL. 33 NO. 1 $9.75 In This Issue: ATF Review Must See TV Useless Film Fests Sección en Español ® www.videoage.org

LATAM’s Content Piracy Biz is Europe Looks to Latin a $3.5-Billion-a-Year Industry America for TV Growth

BY DOM SERAFINI BY BOB JENKINS forming SevenOne (now called Red ontent piracy in Latin America is a multi-faceted issue, and even though it istorically, Latin America Arrow International) in 2005,” said Jens affects all concerned, each sector has its own reasons not to eradicate it. has been a difficult region Richter, managing director of Germany’s For example, as was pointed out during IQPC’s “Anti-Piracy & Content for European companies to Red Arrow. “It has always been a good Protection Summit,” held crack. Now, though, the market for us because our portfolio has territory is taking on growing in New York City last (Continued on Page 22) November, the business importance, model of content owners as regional encouragesC piracy because it goes Heconomies flourish and new Where Sellers Go against normal consumer behavior. players — especially those in the digital arena — offer Wrong with Buyers Nowadays, many consumers opportunities for a wider BY ISME BENNIE don’t want to wait for the industry’s range of content. But to crack imposed windows (which are necessary this market, executives have to maximize profits in order to sustain good distributor is someone who found that an on-ground understands the local market and is willing high production costs). Therefore, presence is necessary. they resort to illegal ways of obtaining to work with programmers to help solve content for immediate gratification –– “Latin America is an “Atheir scheduling needs,” said Doug Smith, without considering it a crime. important market, and VP and general sales manager for Canada at CBS it is one to which we Studios International (CBSSI). The high costs of DVDs and have paid attention since (Continued on Page 20) (Continued on Page 18) History Repeats Itself: NATPE at 50 BY SARA ALESSI

t seems the age-old adage is true — history really does repeat itself. Many of the issues that made headlines at NATPE in years past are still making news today. At the advent of NATPE’s 50th birthday (though NATPE was established in I1963, its first trade show wasn’t held until 1979) VideoAge decided to take a look back at our coverage of the event over the past 32 years (since VideoAge was founded in 1981). What we discovered might give those who have attended NATPE over the years a sense of déjà vu. The floor versus suites conundrum was as much an issue in the past as it is now. The same is true for the question of whether enough attention is paid to the international contingent, and then there’s the ongoing debate regarding the number of seminars/conferences at NATPE, which VideoAge has for years maintained is detrimental to the business of buying and selling content since it reduces the amount of floor traffic. Let’s take a look back at some of the highlights (and lowlights) of NATPE through the years.

(Continued on Page 24) C ONTENTSVIDEO AGE No.1 January 2013 a a

Cover stories: 13. Sección en Español LATAM’s content piracy business is a $3.5-billion-a-year industry

El mercado NATPE gana fuerza Europe looks to Latin America s en vísperas del festejo de sus for TV business growth margins C “Grandes Cinco” Mistakes content sellers make that Piratería de contenidos en don’t make international program s América Latina: Un tema buyers content. In other words where costoso por todos lados sellers go wrong with buyers

La vida del comprador de History repeats itself: NATPE s programas ha cambiado, at 50 is like NATPE at 35 pero no la atención hacia él

4. World: The U.S. in ads, VoD dollars; Brazil in football reais

6. Book Review. Don’t 32. Travel news, trade show calendar touch that dial: Inside the rise and fall of “Must See TV” is top of the rock 34. My 2¢: Film festivals are useless to the industry

8. ATF Review. Asia: A tough TV territory facing a difficult market It’s likely that Hurricane Sandy, VoD $ Signs which ravaged the northeast at the end of October, impacted ad spending as Getting Clearer well, since some stations opted to limit ndustry experts are predicting that or forego advertising altogether for a few U.S. Video-on-Demand /Pay-Per- days in order to provide uninterrupted View revenue data is about to become a lot more transparent. coverage of the storm. Pivotal Research As the Los Angeles Times recently Group analyst Brian Wieser estimated the noted, studio accountants have Weak Ad Signals Warner Inc., Discovery Communications storm’s impact on the U.S. advertising traditionally been criticized for not Inc. and News Corp. market could manifest as a revenue loss beingI entirely forthcoming about VoD revenue numbers, leading filmmakers Plague the U.S. As reported in The Wall Street of around $500 million, or one percent to wonder whether they’re getting a fair Journal, advertising holding companies of the volume for the fourth quarter. share of the pie. arning signs from several Interpublic Group of Cos., WPP and In October, Comcast Corp., which Arbitrage, a Roadside Attractions/ advertising companies Publicis Groupe all stated that marketers owns NBCUniversal, stated that its Lionsgate Entertainment feature film in the fall indicated a slashed their spending in September as a cable networks division recorded flat ad that was released concurrently in theaters decline in ad spending result of political uncertainty in the U.S. sales for the quarter, and News Corp. — and on VoD, is being seen as a sign of in the U.S. ahead of and the economic crisis in Europe. They the sea change, the Times reported. pending reports for the which owns Fox News, Fox and FX, as saw a decline in a number of industries, According to the two companies, VoD well as The Wall Street Journal — was September quarter from including retail, pharmaceutical and sales for Arbitrage (which include Internet, companiesW such as CBS Corp., Time consumer packaged goods. projected to report flat ad revenues. cable and satellite television), have reached about $11 million, and are expected to reach $12 million. Combined with expected box-office gross of around $7.5 million, the film will break the combined sales record for a day-and-date release. Companies like Lionsgate seek to benefit from an increase in revenue transparency, the Times explained, since they can now show off those profits when they go to buy films at festivals and markets. Usually, 70 percent of VoD revenues are allocated to the distributors, as opposed to the 50-50 theater owner/distributor split often used for box-office sales.

TV Rights Boost Brazil’s Football omestic TV rights to sports games are helping Brazilian football (soccer) clubs earn more money and hold onto talented players. The top clubs earned total revenues of R$1.93 billion (U.S.$927 million)D in the 2011 season, an increase of 29.7 percent from the year before, as reported in the Financial Times. With the rise of pay-TV in the country, 36 percent of clubs’ income stemmed from TV rights. In 2011, the top-earning club was the São Paulo-based Corinthians, which generated total revenues of R$281 million. This marked a 36 percent rise compared to the year before, according to investment bank Itaù BBA. Coming in second was São Paulo, up 15 percent with R$225m. Santos came in third, pulling in R$189m, an increase of 62 percent. Although consulting and financial advisory firm Deloitte reported that Brazilian clubs were still earning below the level of those in Europe and the U.K., Brazil’s domestic growth and plans to host the 2014 World Cup could bolster earnings. Another factor contributing to the rise in revenues were sponsorships, with state bank Caixa Econônmica Federal paying a record R$30m to put its brand on the Corinthians’ jerseys.

J ANUARY 2013

tempered with an awful lot of hard work.” When he first took on the job in the early ’90s, Cheers was the network’s top-rated comedy, but a call from the lead, Ted Book Review Danson, saying he wasn’t returning to the show sent Littlefield into a panic. Eventually, though, Littlefield bet on Seinfeld to replace the ever-popular Cheers, and that bet paid off in full. By the time the Cheers finale aired in May 1993, Seinfeld had surpassed the show in Don’t Touch That Dial: Inside ratings. Plus, at the height of Must See TV’s popularity, a 30-second advertising spot on Seinfeld garnered $800,000 (about NBC’s “Must See TV” Hits $1.28m today). Guarding every penny, the network gradually shaved 30 seconds off each episode until they ran at least a minute ctor John Lithgow, who shorter in the last few years, leading Seinfeld starred in NBC’s 3rd Rock and David to exclaim, “Stop making the from the Sun, once said, show shorter!” Ad spots for the final episode “When it’s right, there’s brought in $1.8 million (about $2.554m). nothing like a sitcom.” Well, Just as he and his team took risks with during the 1980s-1990s, Seinfeld (developing it out of the Variety NBC had it right. and Specials department because the AIt all started with NBC’s “Night of Comedy department lacked the funds), Bests,” the name the network gave its Littlefield also took risks with the other Thursday night lineup consisting of classic shows that became Must See TV. shows Cheers, The Cosby Show, Family Ties, Night Court and Hill Street Blues, He went against president of West before progressing to “Must See TV,” Coast Operations Don Ohlmeyer’s the slogan they gave the Thursday night instincts by pushing forward with Friends, lineup that graced the air in the ’90s. despite Ohlmeyer’s insistence that Monica Warren Littlefield, former president Geller’s sleeping with someone on a first of Entertainment at NBC from 1991- date made her a slut (fans disagreed, and 1998, along with author T.R. Pearson, so did Littlefield), and by agreeing to air explore the inside world of hit television a sitcom centered on gay characters (enter that had millions of Americans tuning Will & Grace). in every Thursday night in Top of the A lesson Littlefield hopes NBC will Rock: Inside the Rise and Fall of Must See TV (Doubleday, 326 pages, $27.95). relearn (and perhaps one everyone should Must See TV, of course, refers to the learn): “my guiding principle…was to get following shows: Seinfeld, Friends, Mad into business with talented people and let About You, Frasier, Will & Grace and them be talented.” For instance, the suits ER. With these shows, “From 1993 ultimately allowed Cheers creators Jimmy through 1998, NBC exploded every Burrows and Les and Glen Charles to cast conventional notion of what a broadcast Danson and Shelley Long as Sam and network could accomplish with a prime- Diane in the series, despite the fact that the time lineup. On Thursday nights in network was leaning toward another pair. particular, everybody watched the Audiences everywhere would agree that peacock [an allusion to NBC’s logo, was smart business. “That was a valuable Frasier); David Hyde Pierce (Frasier); act with Heidi Swedberg, who played which takes the shape of a peacock]. We lesson learned for me. When you get into beat the other three networks combined Paul Reiser and Helen Hunt (Mad About George’s fiancée, Susan, Louis-Dreyfus business with talented, creative people [like by wide margins,” said Littlefield. You); Lisa Kudrow, Matt LeBlanc and announced, “I just want to kill [the the Charles brothers and Burrows], listen “At its height, NBC’s Thursday David Schwimmer (Friends); Debra Susan character].” As Seinfeld fans know, Messing, Eric McCormack and Sean that’s exactly what they did. to them,” Littlefield said. It happened prime-time schedule of Must See shows again in selecting Kelsey Grammer to play attracted a staggering seventy-five million Hayes (Will & Grace); John Lithgow Friends fans may be surprised to the part of Frasier Crane. The success viewers and generated more revenue for (3rd Rock from the Sun); and Julianna learn that creators Marta Kauffman and NBC than the other six nights of the Margulies, Eriq La Salle and Anthony David Crane originally offered the part of his spin-off, Frasier, is a testament to week combined.” Putting that figure in Edwards (ER), as well as director Jimmy of Rachel Green (played by Jennifer Littlefield’s practice. perspective, Littlefield explains, “In today’s Burrows, writers, producers and suits. Aniston) to Courteney Cox, who passed Littlefield’s tone is fun and informal fractured entertainment market, NBC He even includes a “Players Guide,” on the role to play Monica Geller instead. (he writes of taking over as president averages an anemic audience of less than which is a great tool for the reader But it wasn’t that simple, because that of Entertainment at a time when the six million for its Thursday night lineup.” to flip back to for a quick refresher role almost went to Nancy McKeon network’s ratings were sinking: “My According to Littlefield, the key to when a lesser-known name pops up. from The Facts of Life. However, true to timing sucked.”). He also winks at the success lies in getting into business with And with short quotes from each person, form, Littlefield allowed the creators to reader/Must See fan through witty and talented, creative people and giving it feels as if they are seated around a decide on the cast, and Cox ultimately fun chapter titles that are a salute to the them the freedom to do their job — be table conversing about some of the most won out. And could you imagine Lisa top shows: “Yada, Yada, Yada” (Seinfeld), popular shows ever to hit the airwaves. Kudrow (who played Phoebe Buffay) as it writing, producing or acting. That was “Master of My Domain” (Seinfeld), “I’ll Rachel? Kudrow explains that when she his leadership style at NBC, and it works The talent and producers share Be There for You” (Friends) and “Batting equally well in his writing. went in for the audition, she was after a engaging and fun anecdotes that make the for the Other Team” (Will & Grace). Littlefield masterfully weaves together reader privy to inside information. Actor different part, but was told, “No. You’re an oral history with contributions from Jason Alexander, who played George this quirky girl.” Friends fans everywhere Learning about the ins and outs of the people who had a hand in creating and Costanza on Seinfeld, recalls that one can breathe a collective sigh of relief. some of the greatest shows on television sustaining Must See TV at the peacock day when he, comedian/actor/Seinfeld Seinfeld marked the beginning of is, in a word, thrilling — and reading during his tenure there. Sitting down to co-creator Jerry Seinfeld, co-creator Larry Littlefield’s reign at NBC, when he took this book is as much fun as watching the share their stories are top players such David and actress Julia Louis-Dreyfus charge of making programming decisions, shows. Littlefield’s book on Must See TV as Jerry Seinfeld and Jason Alexander (who played Elaine Benes) were out to which he describes as “part crapshoot, is a must-read. So don’t touch that dial, (Seinfeld); Kelsey Grammer (Cheers, lunch discussing how difficult it was to but…part savvy and judgment as well, open that book! SA

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Asia: A Tough Territory

Facing a Difficult Market Azteca’s Marcel Vinay, Martha Contreras

their Trade Commission. ell, perseverance and Meanwhile, ATF continued to be investment in a long- driven by independents such as Zodiak, term presence in Asia GRB and Studio 100, and mini-majors seem to have paid off like FremantleMedia, Viacom, ITV, for those who made A+E and MGM. However, this time the commitment. at ATF, there was a good U.S. studio This is according to presence with exhibitors such as CBS, those few Latin American distribution W NBCUniversal and Disney. companies that returned to exhibit at Singapore’s Asia TV Forum & Market “We have been attending ATF for (ATF), despite a difficult few years. several years and it has proved to be a Companies reported full appointment valuable market for us ever since our schedules and good responses, due to first presence there, especially with those positive relationships established with broadcasters who do not attend MIPCOM buyers over the years. or MIP-TV,” said Patrick Elmendorff, managing director at Studio 100 Media. Not everyone, however, managed to Cheng-Chun Yeo, assistant CEO of Media Development Authority of Singapore (fourth from “We primarily focus on Southeast Asia the right), hosted a seminar about “China-Singapore Dialogue” stay the course. The Italians, for example, with an emphasis on Brunei, Indonesia, pulled out of ATF, betting instead on the Malaysia, the Philippines, Singapore and Hong Kong International Film Festival Thailand. Furthermore, India, South in the spring. Korea and Japan are also territories that But even if better relationships are very important to us,” he added. with Asians will eventually evolve “ATF is always a great market to into program sales, some European reconnect with current and potential distributors are feeling the pinch of partners in the Southeast Asia region, ATF’s increasing market costs and, for particularly Indonesia and Malaysia,” said the next ATF, are trying to huddle Mario Castro, director of Sales for Asia together into a mega-umbrella European and Africa at Televisa Internacional. “It is pavilion. So far, the project (which will always nice to see how emerging economies benefit from both European marketing develop and grow in presence year after subsidies and individual countries’ year at ATF. This market is consolidating export incentives) has attracted interest as the gateway to Southeast Asia’s TV from France, Spain and Germany, while industry and it’s more than clear when The opening ceremony officiated by Singapore’s Minister of Communications, Yaacob an initial approach was made to the Ibrahim, flanked by Michelle Lim, managing director of ATF organizer Reed Exhibitions and we see [a larger] presence of young or new Italians through the Singapore office of Cheng-Chun Yeo, assistant CEO of Media Development Authority of Singapore channels, networks and producers.” (Continued on Page 10)

CBS Studios International’s Paul Gilbert, Mie Horasawa, Nicole Sinclair and Alysha Chopra Studio 100’s Patrick Elmendorff

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But, judging from the level of marketing Indeed, with 27 ATF-organized activities, the trade show is still considered conference sessions involving 52 relatively small by most exhibitors who speakers, the seminar portion took up allocated few resources for it. a large chunk of the event activities. In terms of the market itself, the And this is without considering individual fact that conferences were held on the companies’ conferences, such as the one Televisa’s Javier Paez, Mario Castro third floor of the Marina Bay Sands organized by TV France International Convention Center, far away from the on “French Success Stories And New their stand. ground level of the exhibition hall, TV Programs,” and those by Singapore’s At the opening ceremony came the meant the floor was sparsely trafficked Media Development Authority (MDA). on the first day, but it did pick up on In particular, MDA had the largest announcement of an ATF collaboration the second day. Yet, floor traffic was presence in terms of exhibition space and with Paris-based Reed MIDEM (MIP and almost non-existent on the third and activities, including 10 events such as A+E Networks’ Catherine McGrath, Kerri MIPCOM organizers) for a series of events Tarmey, Ling-Sze Gan final day, December 7. general screenings and seminars, held at to take place at the next ATF (organized by Reed Exhibitions) and officially described as “the first MIP Academy.” The collaboration between the two sister companies that was announced at last year’s ATF did not materialize, even though an ATF official said that something, if undefined, actually took place this year. Something that was visible at the 13th edition of ATF was the concurrence with the second annual ScreenSingapore, a film festival that was having trouble as a stand-alone event, which added some movie-style glamour (albeit on a localized level) to the meat-and-potatoes TV business aspect of ATF. In other show news, out of 25 applications, eight Singaporean movie directors were each awarded S$250,000 (U.S.$205,000) for the first “Call-for- Proposals,” under the New Talent Feature Grant, a new initiative by the Singapore Film Commission to launch the career of Singaporean filmmakers. Officially, at ATF 2012 there were 4,000 participants from 52 countries, representing 1,065 companies, of which 526 registered as sellers and 539 as buyers from 36 countries, including Kazakhstan and Mongolia. According to ATF statements, there was a “significant increase in buyer participation from South Korea, Hong Kong and China.” On their part, some sellers reported an unusually large buying contingent from Vietnam.

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NATPE gana fuerza en Piratería de contenidos en América vísperas del festejo de sus Latina: Un tema costoso por todos lados n mayo ultimo, un grupo de de aplicar la legislación vigente”. La “Cumbre “Grandes Cinco” los más grandes proveedores de Propiedad Intelectual” fue organizada por e seguro, NATPE no está durmiendo. El mercado de TV de enero 2013 de contenidos de USA se el Centro de Estudios para el Desarrollo reunieron en Miami, Florida, golpeará las costas de Miami Beach como una tormenta, ganando fuerza de la Telecomunicaciones y el Acceso a a su paso. con expertos legales para una cumbre de tres días sobre la la Sociedad de la Información en América Un titular de la edición de VideoAge de enero 2012 anunciaba que “Los preponderancia de la piratería Latina (CERTAL) con base en Uruguay, la Estudios americanos ven a NATPE como un “Definitivamente tal vez”. de programas en Latinoamérica. (Continuación a la página 16) Bien, en 2013, los Estudios americanos informarán que ven a NATPE E como un “Definitivamente sí”, con todos ellos participando con creciente La cumbre fue la primera Dvigor, junto a todos los mini-majors en su tipo. La vida del comprador de tales como Starz, FremantleMedia, “La piratería es un gran Entertainment One, Lionsgate y problema para las compañías programas ha cambiado, A+E Networks. de contenidos y programadores pero no la atención hacia él en Latinoamérica”, mencionó Los Estudios latinos, que Gustavo López, vicepresidente controlarán la parte del león y asesor regional de Discovery n estos días no es fácil ser comprador de del mercado, no concederán Networks Latin America y U.S. programación. Los dólares por publicidad han su supremacía a nadie, y están Hispanic. “Este encuentro ha decrecido y las alternativas para los espectadores planeando grandes cosas. brindado la oportunidad de Ese han incrementado. La producción local de Esta vez, NATPE, que se evaluar nuevas aproximaciones programas en muchas partes del mundo ha bajado realizará entre el 28 al 30 de enero, frente a este dilema y maneras y el costo de los programas importados subido. La compartirá el centro de la atención con el Show Anual de Náutica de (Continuación a la página 14) Miami, que comienza el 14 de febrero, exactamente 15 días después del cierre del mercado de TV. Sin embargo, dado el tamaño del evento náutico (más de 100.000 participantes), los preparativos del mismo impactarán en la disponibilidad de capacidad de habitaciones de algunos hoteles cerca de los canales y definitivamente en los muelles a lo largo de la calle del Fontainebleau Resort, sitio del mercado de NATPE y centro de las conferencias. Por estas razones, los barcos anclados en los muelles de la Marina que enfrentan el Resort no tendrán exhibidores de TV. Pero el veredicto no parece ser todavía definitivo, con un Estudio declarando que la decisión final aún no ha sido tomada, y otro confirmando que los muelles quedarán fuera de consideración dado que el show náutico necesita un tiempo extenso para ser preparado. El pasado enero, Sony Pictures y eOne estuvieron entre aquellas compañías que exhibieron en los yates y los muelles. Además del tradicional Fontainebleau y el adyacente Eden Roc, los organizadores de NATPE DISTRIBUTED BY se han asegurado habitaciones extras en dos hoteles más: The Palms, a 12 bloques de la sala de exhibiciones, y el bender 150 Central Park South Grand Beach, un poco más la norte. Suite 310 media services New York, NY 10019 Para el evento del 2013, NATPE phone 212 707 8244 fue retrasado una semana, lo que no LATIN AMERICAN TELEVISION REPRESENTATION email [email protected] ayuda al negocio local de sindicación (Continuación a la página 14) and Syndication rule (Fin-Syn), ambas Considerando que el negocio de la TV impuestas en 1970 por la Autoridad paga en Latinoamérica tiene un volumen NATPE Americana de Comunicaciones FCC, que Piratería en anual de negocios de U$D10 billones de gana fuerza estimuló la creación de series populares, América Latina dólares con 45 millones de subscriptores, para ser sindicadas en una primera pasada VideoAge ha estimado las pérdidas por (first-run). piratería en América Latina a razón de (Continuación de la página 13) Además, unos pocos años después, la (Continuación de la página 13) U$D1 billón de dólares por año tan convención llevada a cabo en Las Vegas sólo por la falta de reporte de usuarios y (U.S.), pero es una bendición para los de la National Association of Broadcasters Federación Latinoamericana de Magistrados conexiones ilegales de SBT. En términos distribuidores internacionales que tienen (NAB) con base en Washington D.C. — ubicada en Argentina (FLAM) y la de DVD’s, solamente en México y los shows de media temporada. En efecto, que servía como evento principal para el Universidad de Miami. La cumbre se realizó Brasil, la mercadería pirateada representa cuanto más cercano es el evento a febrero, comercio de la sindicación — alejó a los en la Escuela de Derecho de la Universidad un volumen de negocios cercano a los más se asemeja el NATPE de Miami al ya proveedores de contenidos del centro del de Miami, y el tercer día Discovery Network U$D500 millones de dólares por año discontinuado, pero alguna vez sumamente piso de las convenciones, provocando auspició una mesa redonda titulada “Mesa (48% en Brasil, 71% en México). exitoso mercado de TV de Montecarlo que muchos de ellos abandonasen NAB de Propiedad Intelectual, Piratería desde En comparación, el negocio de la en términos de su cálida temperatura y por una convención de sindicación como la Visión de los Programadores”, que fue piratería de software IP en América Latina disponibilidad de nuevos contenidos. NATPE, mucho más amigable. moderada por Alejandro Harrison, CEO de es estimado en U$D870 millones de Pramer, Argentina. Otro cambio es la adición de las “Mesas NAB también perdió a la Association of dólares al año, o un 50% del total. de mercado” estilo NATPE Budapest, a Independent Television Stations (INTV) La mesa redonda incluyó a los panelistas Si bien no estaba interesado en dar un los cuatro tipos de espacios de exhibición: con base en Washington D.C., que había Gustavo López de Discovery, Lorenzo dato monetario de los efectos de la piratería, Stands en el piso del mercado, suites, comenzado en 1972. Cinco años después, Rainer, director senior de asuntos legales López enfatizó que las pérdidas no son sólo espacios para reuniones y las cabañas al los miembros de las estaciones de TV más y de negocios de HBO Latin America, una preocupación para los proveedores de costado de la piscina. El precio reducido fuertes (que para 1988 habían llegado a Ana Siegel, vice presidente senior y contenidos, si no también para las industrias de las “mesas” es de U$S2700 dólares cada 321), comenzaron su propio mercado de asesora general de Fox Latin American y los gobiernos locales. Los operadores una y serán ubicadas en las salas Shimmer comercialización de programas de TV, Channels, y Francisco Escutia, director legítimos ven como pierden suscriptores y Flash en el cuarto piso de la Torre pero con los cambios en el negocio de la ejecutivo de Latin America Anti-Piracy e ingresos de publicidad, mientras que la Norte pasando el piso del mercado. En sindicación, en 1990 la convención de and Intellectual Property Consulting piratería representa una pérdida de ingresos comparación, el paquete de un stand puede INTV se plegó dentro de NATPE. (LAAPIP). La mesa redonda se llevó por impuestos para los gobiernos. Además, llegar a los U$D6000 dólares, las cabañas a cabo en las oficinas de Discovery Del mismo modo, la rápida caída de las actividades ilegales impulsan el aumento desde los U$D13000 a U$D15000 dólares Channel en Miami. NATPE ocurrió debido a dos factores de los precios, dado que los proveedores de (suites junior y habitaciones de tres camas concurrentes, y así como su éxito, uno Luego de las palabras de introducción contenidos tienden a aumentar los costos también están disponibles). fue estimulado por el gobierno, y la otra y bienvenida de Enrique (Henry) por subscriptor para compensar las pérdidas El éxito del pasado NATPE en Miami Martínez, presidente y director general debido a la piratería. por manos del hombre. Primero fue la también puede ser medido por medio de los remoción de la mayoría de las regulaciones de Discovery Networks Latin America/ Para los proveedores de contenido, numerosos eventos de recreación, algunos relativas a la posesión de canales por US Hispanic, los panelistas pasaron a sin embargo, la respuesta no es hacer inclusive comenzando el sábado antes de medio del Telecommunications Act ilustrar los distintos temas a los que se hincapié en las pérdidas monetarias si no la apertura el domingo, y concluyendo el de 1996, cuando un grupo de dueños enfrenta la industria en América Latina. educar a los encargados de la regulación, jueves, el día posterior al cierre. compraron más y más canales locales Ana Siegel de Fox dijo que “combatir los fiscales y jueces locales, y al público en Este año, las celebraciones de NATPE de TV, consolidando la compra de la piratería es muy costoso”, pero como general, y trabajar conjuntamente con las continuarán luego del evento por otros programas en una sola oficina corporativa. fue marcado por un participante de la industrias locales, como así también sacar cuatro días, con otro evento latino de Esto hizo innecesario que en las ferias de audiencia, puede traer resultados, tal como provecho de las soluciones tecnológicas. TV, el Cuarto Mercado Anual de Media NATPE hubiera que realizar la licencia de fue el caso de la campaña de anti-piratería La colaboración trae resultados y López de Florida (Florida Media Market-FMM) programas mercado-por-mercado (tanto de Fox en Venezuela ocho años atrás. remarcó el éxito obtenido el año pasado llevándose a cabo entre el 30 de enero y para la primera pasada y fuera de network- De manera similar, Lorenzo Rainer, de en Perú, donde 40 operadores de cable el 3 de febrero en el Shelbourne Hotel, first-run y off-network). Lo segundo fue HBO Latin America recordó el éxito en fueron forzados a legalizarse. Dado que los a 26 bloques al sur del Fontainebleau. la pobre organización de NATPE con detener la distribución ilegal de películas proveedores de contenidos individuales no El FMM es organizado por Maritza una gerencia que gastó una gran cantidad originales de alta calidad en Cuevana.tv, poseen los recursos y/o la estructura para Guimet, que tiene su base en Miami, de sus recursos financieros y no estaba uno de los sitios de online streaming más monitorear actividades ilegales en la región, en conjunto con la firma asesora LGMA preparada para enfrentar las dificultades populares de Argentina. ellos dependen sobre todo de los informes del futuro, llegando a su pico máximo en (creadora de “Format Days” en China, Durante una entrevista telefónica, de los operadores de cable legales que se ven llevado a cabo en Beijing en 2010 y 2002, cuando el directorio de NATPE dañados por las actividades ilegales. nombró a Rick Feldman como su CEO. Gustavo López de Discovery le dijo en Sichuan en 2011), para ofrecer un a VideoAge que actualmente hay Hay conversaciones de crear una alianza Format Day — el Día de los Formatos Luego de 18 años de crecimiento, cuatro formas básicas de piratería en para combatir la piratería en Latinoamérica, — además de las actividades regulares del seguidos por seis años de dificultades y Latinoamérica, cada una floreciendo en informó López, pero por el momento FMM tales como la competencia “Listo siete años de crisis, NAPTE está entrando diferentes partes de la región. Por ejemplo, la industria debe verse satisfecha con para distribución”. La noche de Gala ahora en su cuarto año de renovado en Ecuador, el área más problemática encuentros tales como la Cumbre de Miami esta vez contará con la participación de vigor, y por ese motivo tiene mucho para en torno a la piratería y el principal y la que se realizó en Paraguay en agosto importantes anfitriones y presentadores celebrar. Ya sea festejando el 50 aniversario culpable, son los sistemas ilegales, tanto último. Por otro lado, la MPAA (Motion Latinoamericanos, y ofrecerá un Premio de su creación o la 35ª edición anual de operadores de cable como los de Picture Association of America) ha estado a la Trayectoria al ya retirado ejecutivo de la convención de mercados de TV, decodificadores satelitales (SBT). El activa monitoreando el pirateo de películas de distribución Armando Núñez Sr. Rod Perth, el nuevo CEO recientemente mismo problema se encuentra en Brasil. en América Latina, específicamente con Naturalmente, el gran alboroto de nombrado que reemplazó a Feldman, A lo largo de la región, decodificadores actividades de lobby en México y Brasil. Otra los organizadores de NATPE este año seguramente podrá verse satisfecho. AZBoxes de fabricación china usados agencia americana que está involucrada en el será de la celebración del aniversario: Aún así, haciendo un poco de historia, para piratear las señales satelitales, son monitoreo de contenidos en Latinoamérica la denominada “Grandes cinco”. Sin 1963 no fue particularmente un buen vendidos a U$D10 dólares cada uno en es la del Representante Comercial de USA, embargo, aunque NATPE (National año. Fue cuando el presidente John F. cantidades de 500 unidades. que en su lista de prioridades de control ha Association of Television Program Kennedy fue asesinado en Dallas, Texas, En México, la piratería se manifiesta por puesto como los peores países autores del Executives) fue formada en mayo de el presidente francés Charles de Gaulle medio de los viejos pero buenos DVD’s. delito de piratería a la Argentina, Chile y 1963, su primera conferencia fue llevada vetó en ingreso del Reino Unido al En Colombia, el problema pasa por los Venezuela. a cabo en Nueva York en 1964 y el Mercado Común Europeo ECC (ahora operadores de cable que reportan una Igualmente, la Cámara de Comercio mercado de TV comenzó en marzo de la Unión Europea E.U.) y también fue cantidad menor de suscriptores para pagar de USA, además de marcar a estos países, 1979 en Las Vegas basado en un modelo marcado por la huelga más larga de menos a sus proveedores de contenido. listó a otros 10 países — Bolivia, Brasil, de suites en hoteles. periódicos en Nueva York (114 días). López fue reticente en cuantificar las Colombia, Costa Rica, la República Se puede decir que el rápido éxito El inicio de los mercados fue un poco pérdidas que la piratería les causa a los Dominicana, Ecuador, Jamaica, México, del mercado NATPE se debió a la mejor, al menos para el negocio de la TV, proveedores de contenidos en América Perú, y Paraguay — con un nivel menor combinación de tres factores: La desde 1979 cuando Philips presentó el CD, Latina, pero indicó que en el caso de de delitos de piratería pero que de todas regulación del acceso al horario central Sony introdujo su Walkman (precursor del la información de menor cantidad de maneras fueron criticados de hacer poco (The Prime-Time Access Rule-PTAR) iPod), nacía ESPN y la Pinwheel Network suscriptores, las pérdidas pueden alcanzar para hacer cumplir las leyes de propiedad y la regulación del Financial Interest cambiaba su nombre por Nickelodeon. al 50%. intelectual. DS

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los mercados. “Estabas acostumbrado promocionaron y los publicitaron”, nos a regresar de una feria de TV con dijo. La vida del montañas de DVDs y catálogos para Pero, hay más de una razón para que revisar… ahora los distribuidores usan los compradores estén en contacto. discos duros y tablets para que puedas Ciertamente, uno nunca sabe cuando esos comprador tener una completa visión del contenido contactos pueden ser útiles; después de que te ofrecen durante los encuentros”, todo, dar el salto a vender puede ser una dijo Ana María Núñez Toledo de TVR, tarea simple, tal como fue recientemente del canal de TV paga de Chile. (Continuación de la página 13) demostrado en territorios como Alemania Además, “ahora podemos mostrar e Italia, pudiendo argumentarse que competencia ha aumentado y el series internacionales casi de inmediato ocurre muchas veces menos de lo que fue presupuesto para hacerle frente se ha visto luego de su emisión doméstica usando la en este caso. (En el lado de la distribución, disminuido en muchos de los casos. tecnología de los archivos en servidores. muchos vendedores son ellos mismos Además, los modelos de negocios de No obstante, tecnología también significa compradores de programas necesitados de compra van cambiando, mayormente con que esos shows pueden ser pirateados”, rellenar sus catálogos, por lo que el salto la exclusividad como algo del pasado, y las dijo Dermot Horan de la RTE irlandesa. no es tan difícil). ventanas compartidas como una nueva Los compradores también están en sintonía Además, las oportunidades de los realidad. Y los desafíos no han terminado con las mejores maneras de explotar compradores de mezclarse están en aún, con nuevos formatos de tecnologías Angus Ross, director de programación, Seven contenidos. Por ejemplo Guido Pugnetti, Network Australia. todas partes, por medio de asociaciones de TV para enfrentar, como el 3D. un comprador de la RAI de Italia, aboga por una apertura más grande en la ventana profesionales, tal como la EBU en Europa Si todo esto no fuera suficiente, debe nuestras estaciones y plataformas”. entre el pago y la emisión al aire (FTA), o NAB en USA, o durante los mercados considerar las ferias de shows de TV que Si bien Boess negó que su presupuesto especialmente para películas. Esto, a su en los llamados “Encuentros sauna” se multiplican constantemente alrededor actualmente sea más exiguo (“En los años modo de ver, va a incrementar el valor durante MIP y MIPCOM. del mundo (si bien las oportunidades recientes, la inversión en programación de las películas para los broadcasters que de participar en algunas de ellas han era cercana a los 900 millones de Euros Para poder entrar verdaderamente en podrían contar con altos ratings. disminuido). No hay que asombrarse siendo la mayor parte usualmente invertida la mente de nuestros compradores (y que en el fondo, algunos compradores en programas relacionados con los países Colocarse fuera de (la ya multitudinaria) descubrir la información que los vendedores desearían ser vendedores — quizás los germano parlantes”, dijo), él admitió multitud se ha vuelto más que un quieren saber), les preguntamos en qué desafíos son igualmente desalentadores, que los gastos son elevados: “Los costos desafío para la mayoría de todas las momento del año es el en que disponen pero pagan mejor. Aún para algunos, la ciertamente no decaen — particularmente networks — ya sea si son libres-al- de mayor dinero. La respuesta parece atención que reciben como compradores los programas americanos son de gran aire, PPV, cable o cualquier otra cosa. variar considerablemente dependiendo de sigue siendo una gran ventaja e incentivo importancia en el área de habla alemán y van “Nosotros probablemente operamos en la compañía. para no saltar del barco. acompañados por una fuerte competencia el mercado del territorio unilingue más “Depende de muchas variables”, dijo competitivo en Europa, no solamente Quizás no sorprenda, que los por estos formatos”, nos dijo. Saccone de MundoFox. “Tu compañía con competidores irlandeses domésticos, compradores entrevistados para esta nota Dejando de lado el alto costo de la puede tener acuerdos de largo plazo y si no también con un 75% de los hogares indicaron que el constante avance de la programación, la Internet también ha debido a eso confiar sólo en ello. Otras recibiendo cientos de canales del Reino tecnología ha sido un jugador principal creado más desafíos a los compradores. compañías pueden no tener el tamaño Unido, todos en la misma lengua. Por lo en los cambios en sus negocios. Algunos Aldo Di Felice, presidente de TLN necesario para sostener una gran volumen tanto, adquirir shows y hacerlos destacarse compradores mencionaron el predominio de Canadá, una cadena de TV que de acuerdos y debido a eso se ven forzados en este atestado mundo es un verdadero de los DVR’s, un desafío potencial para transmite programas en italiano, español a ser oportunistas, por lo que están en el desafío”, mencionó Horan de RTE. asegurar dinero por publicidad. Al menos, e inglés, dijo: “Actualmente estamos mercado durante todo el año”. casi siempre comprando derechos de Emiliano Saccone, del recientemente los DVR’s obligan a los compradores “Otras compañías tratan cada vez más a ser más creativos para conseguir programación en base a una plataforma lanzado canal de TV americano MundoFox de descubrir la fórmula del contenido que los productos de los anunciantes neutral. Esto permite a nuestro canal ser en idioma español, viene del mundo de original mientras reducen sus presupuestos se vean en más lugares. “Se ve que ofrecido simultáneamente en dispositivos la TV paga, y está encontrando nuevos de compras… otras compañías se rigen ocurre un gran desplazamiento durante móviles y online. También poseemos un desafíos en la TV de aire. “En lo relativo a por el calendario anual, otras por el nuestra programación (particularmente archivo de programas que son ofrecidos mi experiencia en el mundo de la TV paga, de dramas americanos) ya sea usando de manera no lineal, si no a la carta”. el negocio del broadcast es mucho más calendario anual de broadcast y otras un grabador de video digital (PVR) sensible al entorno económico, que apuesto por el calendario fiscal. Por lo tanto, La tecnología puede, de todas maneras, realmente, depende”, dijo. o por medio de nuestro servicio de ser una cosa buena. Hay ciertas ventajas, puede volverse algo extremadamente difícil actualización usando Yahoo7”, dijo como poder tener la posibilidad de atraer si las condiciones macroeconómicas no “Los primeros seis meses de cualquier Agnus Ross, director de programación más espectadores a lo largo de más medios. fueran las correctas. año son dedicados menos a la compra de la Seven Network en Australia. “Nuestra aplicación de Media Social, MundoFox es un negocio naciente en y más a obtener información, hacer Ross agregó que el mayor desafío que FANGO, ha jugado un rol principal medio de jugadores muy dominantes en inteligencia”, nos dijo Horan de RTE. enfrenta su compañía es la dura situación en atraer espectadores comprometidos un mundo que ha incrementado la elección Por otro lado, Ross de la Seven dijo que del mercado publicitario en Australia en con nuestra programación australiana de medios y grita fragmentación mientras los fondos tienden a terminarse en junio, estos momentos (que puede ser acreditado y ayuda a que los espectadores vean el que nuestro objetivo intrínseco es arribar a “cuando nos acercamos al final de nuestro en parte a la fragmentación de audiencias). programa en vivo”, dijo Ross. la masa crítica como cualquier otro canal año fiscal”. “El control de costos es la llave”, enfatizó. Ciertamente, los servicios online ayudaron de aire. Cualquiera podría argumentar que son fuerzas que se oponen”, dijo. Finalmente, nosotros en VideoAge Debido a las duras limitaciones de a las cadenas de TV a recapturar parte de nos preguntamos si los presupuestos de presupuesto, los compradores alrededor del la audiencia y la mayor parte del dinero Dado que mis compradores se publicidad y las duras condiciones del mundo deben encontrar mejores maneras de la publicidad que había sido perdido enfrentan a los mismos desafíos, no es clima económico de los últimos años de invertir sus presupuestos y decidir si a la Internet. Tal como se lo comentó una sorpresa que unos buscan el consejo significan más trabajo y menos paga, y procurar acuerdos por cantidad de volumen a VideoAge Jack Myers, economista en del otro. (Generalmente, los compradores si los vendedores han tratado de dejar de con los Estudios americanos o simplemente medios de Nueva York en mayo último conocen a los principales compradores de cortejar a sus compradores. cerrar trato de nuevas series sobre una justo antes de los “Upfronts”, “Gran parte su región como así también a aquellos que base de caso por caso. Las fórmulas para del dinero que se está desplazando del buscan el mismo nicho de programación). “Probablemente haya menos esto último podrían ser muy complicadas, mercado online lo está haciendo hacia los “Siempre hay una gran cantidad de rostros participantes de los que solía haber en el lo contrario a los films que están ahora propios activos de video de las networks” familiares en los mercados”, comentó pasado. Los compradores y vendedores vinculados a las ventas de entradas locales — como ABC.com, TV.com de la CBS y Ross de la Seven Network. están más ocupados que nunca con más competencia lineal y digital en cada (que era antes la U.S. box office). Hulu. Cerca del 50% del dinero gastado en “Estar en contacto con los otros De acuerdo a Ruediger Boess de video online irá a las networks de broadcast compradores es realmente una buena mercado”, dijo Horan de RTE. ProsiebenSat1, su compañía prefiere y cable, y la parte del león de ello va al idea. Puedes descubrir que resultado “No necesito ser cortejado”, dijo “comprar derechos exclusivos sobre broadcast”, dijo. han tenido en sus territorios algunos de simplemente Ross de la Seven, “Yo derechos no-exclusivos para poder usar Otra ventaja de las nuevas tecnologías: los shows que podrías haber comprado, sólo estoy buscando grandes ideadas de el programa de manera efectiva en todas hicieron más eficientes los encuentros en como fueron programados, como los programación al precio justo”. LCB

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and sales integration. “Programmers have a lot of pressure to show a return on investment these days and so there Program Buyers is an onus on the distributor to help to Grade Sellers make the most of the product. Upside? More ROI means more money to spend next year.”

(Continued from Cover) Knowing their clients’ broadcast schedules, where holes might be, their Programmer Ellen Baine concurred. buying cycles, what the competition “Understanding the buyer’s needs is is selling, and keeping up with the critical. Don’t try to foist something on ever-changing media world is the good a buyer that is inappropriate.” The VP distributor’s bag of tools. of Programming for Canadian movie Sometimes, though, no matter how channel group Hollywood Suite added good the information, how detailed that distributors don’t always do their the research, and how on-target the homework. She cannot run animation Rachel Goldstein-Couto, director of Specialty programming, the pitch to a buyer may Johanna Salmela, left, from Finland’s YLE because her channels’ conditions of with Riitta Pihlajamäki, head of YLE’s four Programming, Comedy and Drama for end up in a black hole, awaiting the license do not allow it. “So why waste Canada’s Bell Media channels courtesy of at least a quick “no thanks” time offering it to me?” she asked. don’t always search out opportunities or for the effort. Similarly, according to Johanna exploit their rights. She has to be pro- Neil Bregman, president of Ottawa- the right distributor for your product, Salmela, a buyer from Finland’s YLE, active in order to find classic Canadian based production company Sound whether it be for the educational or the and Riitta Pihlajamäki, head of YLE’s movies. Venture International, who has chosen to international market, and depending on four channels, the biggest mistake sellers Kevin Keeley, former sales executive self-distribute, understands marketplace its genre.” make is “not knowing our market. We for Paramount’s Canadian operation interaction. With sufficient volume and meet with new distributors, curious Going with a specialist can have elaborated: “A good distributor must a specialty catalog of arts, performance about their catalog [only] to be pitched advantages. Natalie Osborne is the EVP know the inventory, and must be able to and documentary programs, he has shows that are totally outside our genres.” of Business Development for 9 Story evaluate the programs being sold, good been selling successfully, keeping 100 Internationally, YLE buys about 2,500 Entertainment, a Toronto production or bad. Be honest about your product, or percent of the revenue, and has found it hours per year and is careful to research it will come back to haunt you.” financially advantageous to do it himself. and distribution company whose distributors before its buyers agree to “Going to the international markets core business is quality children’s and take meetings. In addition to practical considerations, being a good seller also means being a gives me a perspective on trends, pricing animation content. She said that the According to Guido Pugnetti, head good programmer. “I really consider and needs,” Bregman said. kid’s space especially, by its very nature, of TV Rights Acquisition for Italy’s Rai, a good distributor as a partner in Producer/director Wendy Watson requires particular attentiveness and the main problem with some distributors programming; the best ones take the of Zap Productions in Toronto has experience. Her company has “The is their lack of vision. “Those who time and focus in on what we want. gone in the opposite direction. “As tend to seek immediate benefits, instead expertise to ‘superserve’ our clients’ Throwing a big net into a marketplace an independent production company of looking to establish long-lasting needs starting from development and full of niche content channels is not a with limited access to local and relationships. For me, proposals and production through to distribution and strategy for success,” said Bruce Cowley, international markets, we probably suggestions are welcome and sharing marketing support.” creative head, Digital Channels, CBC would’ve not made many sales without knowledge is needed, but pressure is Network Programming. “I don’t have hiring a distributor, not only for their Ticklescratch’s Glassbourg added a mostly counterproductive.” the time to screen things that are sent in expertise, but also for their contacts caveat: “Have a clear, written contract In Athens, John Triantafyllis, who blindly,” he added. in the industry.” She summed it up with your representative, and operate in a works “for the distributors in selling Sandy Perkins, VP of Programming as follows: “Without a distributor, we relationship of trust.” their programs for Greece and Cyprus,” for Alberta-based Superchannel, would have been lost.” said “one of the major mistakes that CBC’s Cowley summed up the agreed. “A good distributor takes the Another independent producer [sellers] make is not being aware of the interaction between program buyer and time to understand what our priorities in Toronto, Michael Glassbourg of prevailing economic situation of the seller, saying, “A successful relationship are and customize their list of content Ticklescratch Productions, agreed country and the restrictions the buyers in this business is based on patience; a to suit our service,” she said. “They in principle, but added, “Do your face in acquiring programs.” good distributor will spend time getting never send stacks of DVD screeners research, get references, and choose From the northern regions of America on speculation — leaving us to sort to know what we really like, what we to the northern and southern countries through and research them for any really need; this way, no one wastes of Europe, the cry from program possibilities. It is also frustrating to get time.” buyers seems to be synchronized: Please a million e-mail messages with titles But there are also those rare understand our needs. that are totally inappropriate for our moments that happen only because the Closed captioning and described service or titles that are not available in understanding and trust between buyer video, plus rights such as streaming or our territory.” and seller is so well-defined and has VoD may be part of today’s television Rachel Goldstein-Couto, director of stood the test of time, when the buyer buyers’ requirements. CBSSI’s Smith Specialty Programming, Comedy and is willing to go out on a limb and look defines a good buyer as “someone that Drama for Bell Media, admonished: understands what rights they need as “Don’t lose track of what you’ve already at something out of left field. The seller core elements of a deal and how to value pitched me and which product I’ve might then hear the magic words “You them appropriately.” already said no to.” She added, “And are right.” It happened to this writer, “Come to us being well-informed do continue to service your product taking out Degrassi internationally for the about what we require, what rights are after the deal is done.” Goldstein-Couto first time many years ago. Who had heard available, what materials are available, expects a good distributor to keep her of tween programs then? and whether there are residual issues or apprised of start dates and preemptions, other costs involved,” said Hollywood to supply episodic info and, especially, With contributions from the Bruce Cowley, creative head, Digital Suite’s Baine. She finds distributors opportunities for promotion, publicity Channels, CBC Network Programming in U.S. and Europe Canada 18 VIDEO a AGE J ANUARY 2013

recently, other considerations made piracy in LATAM a secondary issue, after dealing with restrictive local content Content quotas, spurring ad revenue growth in a two-tier business model (per sub and Piracy Biz advertising) and windows’ exploitation priorities. For example, with advertising growing (Continued from Cover) at a faster rate than subscriptions, the piracy concern was seen as a lesser issue pay-TV subscriptions are also said to so that advertisers could take advantage of contribute to piracy. The latter issue, the bonus coverage without paying for it. however, is being addressed in some Similarly, cable operators didn’t disclose countries with low-cost pay-TV their full coverage, because otherwise subscription services. they would have been admitting to the These social and economic issues have under-reporting. When countries began created an illegal content industry that restricting advertising to something like in Latin America alone generated losses 30 percent of total revenues, the growth of sub fees assumed more relevance. estimated at $1.2 billion in 2012 for local At the third IQPC “Anti-Piracy and Content Protection Summit” in New York City: Eddy Leviten cable and satellite operators, while content Also, in the past, LATAM’s stagnant of the U.K.-based Federation Against Copyright Theft (associated with MPAA), News Corp.’s owners for cable and satellite channels economy did not justify fighting piracy Janet O’Callaghan, HBO LATAM’s José Sariego, Discovery’s Gustavo Lopez, Fox International Channels’ Ana Siegel, DirecTV LATAM’s Maria Mariño and Marta Ochoa, among others alone were deprived of $800 million and just to see little potential improvement. uncollected government tax revenues for However, when the economic growth 21 countries (excluding Brazil), states carry un-reported premium channels. of the region began not to be reflected those services were estimated at $500 that by last June pay-TV piracy averaged in the number of pay-TV subscribers, Retransmission is when an illegal cable million. DVD piracy losses are set at out at 14 percent. $1 billion a year. In Mexico, the DVD content owners started to take action, operator legally buys multiple subscriptions, business is worth $510 million per year, and with relatively little effort (like The third, coming from New York which come with decoders. With each of which $450 million, or 88 percent, better monitoring), they saw increases City-based data aggregator Statista, sets decoder the cable operator can retransmit goes to piracy. In terms of units sold, to the order of 34 percent in a short 2012 pay-TV subscription numbers in one channel; therefore, in order to offer according to MPA, 261 million DVDs period of time. Latin America at 43.5 million, of which several channels, it needs many decoders. 14.4 are analog cable, 9.8 digital cable and are sold in Mexico each year. Of these, According to a presentation at the 19.3 DTH (but it gives no indication of In unauthorized systems (or colgados, about 26 million are legitimate, while 235 IQPC Summit, LATAM’s penetration which means connected), subscribers million are bootleg. In Brazil, DVD piracy whether or not it includes illegal ones). for the pay-TV business now reaches 35 connect cables to legal STBs to share with accounts for $370 million a year, or 48 In terms of piracy, Argentina, with percent, representing 45 million TVHH. other people in the same building. percent of sales. Of those, 21.6 million are in Brazil its large educated population, favors Problems facing content owners in Furthermore, the TV content acquisition where piracy is estimated at 10 percent. illegal Internet streaming. One particular business in LATAM is estimated at $1.7 The other 23.4 million TVHH are in website that fell under scrutiny registered LATAM are indeed multi-faceted and some 15 million visitors a month before billion per year. Revenues for pay-TV the Spanish-speaking region — an area cover technological, social, educational and a group of content owners decided to subscription reached $12.93 billion in 2011 where piracy is estimated at five million legal aspects. Legal is the most challenging bring the culprit to court. (figures from Statista), of which $1.6 billion TVHH, or 17.6 percent that are using because it often involves issues that are not went to content providers. Legitimate DVD some form of piracy, of which there are FTA decoders are favored by countries clearly defined. Typical cases are those seen sales generate $1 billion, 20 percent of six different types: such as Paraguay, Chile and Brazil with in Argentina and Paraguay. In the former, which goes to content owners. — Internet streaming illegal STBs coming from China and the Internet portal that acted like a search Korea, passing through Miami, Florida. Therefore, considering that the imported engine (a “library index cards” service — FTA (free-to-air) decoders The decoders descramble the encrypted entertainment sector in LATAM generates is how it was presented to the court), — Informality signals that come from satellite. $3.5 billion a year for content owners, only directed visitors to illegal streaming — Sub-reporting Reportedly, in Chile some 1.4 million and downloads. In the latter, FTA boxes piracy takes in an equal amount. This is TVHH use illegal FTA boxes, while without considering illegal downloads, — Retransmission did not contain the software necessary legal subscribers number two million. to illegally descramble encrypted signals which the MPAA estimates at 96 million — Unauthorized systems (or colgados) Recently, however, Uruguay took a stand illegal movie downloads and 28 million (users downloaded the proper software in Three other studies offer somewhat by banning the sale of FTA boxes, and television program downloads in Mexico their homes via the Internet). different pictures. The first was conducted operators such as DirecTV are regularly alone in 2010. last September by the Paris-based changing encryption codes. Additionally, judges have trouble However, only recently have content Dataxis in seven countries: Argentina, Informality concerns illegal cable systems understanding complex technology, in many owners for pay-TV services decided to deal Brazil, Chile, Colombia, Mexico, Peru prevalent in countries like Brazil, Ecuador countries the laws have not been updated in with this growing problem in LATAM, and Venezuela. It indicates that those and Honduras, with the latter considered decades and, in the case of those with current first by understanding the extent of piracy, countries have 41.78 million legal pay- the region’s biggest perpetrator. laws, they’re not readily enforced. second by formulating local solutions, and TV subscribers and 11.44 million that The social attitude is also an obstacle. A third by allocating more financial resources Recently, in Peru, 40 systems were are illegal, bringing the illegal reception legitimized thanks to a new law passed to study conducted by FOX revealed that in to combat it –– though estimated at $5 to 21.5 percent of the total. protect intellectual property. Brazil also million a year industry-wide, it is still LATAM, 35 percent of people interviewed The second study, conducted by the helped by creating C-Class packages –– considered too little. This amount has did not feel that they were doing something Buenos Aires-based Business Bureau in entry-level packages offered by satellite to cover legal fees, monitoring, auditors, illegal by taking programs without paying for distribution systems such as Embratel consultants and others. them. Others saw unpaid access to content targeting the lower middle class. These as a right, not a crime. Only 60 percent Content owners taking prominent packages are offered at about U.S.$20 per of respondents considered content piracy a leadership roles in fighting piracy in month (a lower cost than illegal systems) crime, but “not a serious one” at that. LATAM are Discovery, FOX, DirecTV, and include no more than 15 international HBO, Sony, Comcast and NBC pay-TV networks, plus the local FTA Finally, there is the “under-reported” Universal, CBS, Disney (including stations. fear factor to contend with, when ESPN), Viacom and Warner Bros. FOX The act of under-reporting subscribers executives from content owners that have for example, has allocated $1 million in order to pay less to content providers is uncovered illegal systems and are willing per year to fight piracy in LATAM. pervasive in Colombia and could reach as to negotiate settlements are met by The funds are administered by Miami, many as 30 percent of cable subscribers. perpetrators with guns prominently placed Florida-based Latin America Anti-Piracy In Colombia, cable comunitaria, offering on the negotiation tables. Reportedly, in and Intellectual Property Consulting. low-cost but limited service to poor some cases, law firms in certain countries Discovery’s Gustavo Lopez, left, in his Miami, The reason this problem is just now Florida, office explaining the extent of families, is also popular. In reality, though, refuse to take piracy cases to court for fear coming to the surface is that until LATAM piracy to VideoAge’s Dom Serafini many of these –– all legal –– systems also of violent reprisal.

20 VIDEO a AGE J ANUARY 2013

Okan explained that to penetrate LATAM, “We have an in-house sales team taking care of different regions Latin America and territories, which includes a native Spanish-speaking sales executive and a TV Growth consultant assigned for sales in the South American market. We have been working on that market for almost a year and a (Continued from Cover) half and are in the process of signing deals on scripted format sales. As for finished always contained a lot of TV movies and products, our sales team will finalize a few miniseries, which are both genres that have deals with some major Latin American historically played well in the region.” broadcasters pretty shortly.” Anything that works well in the U.S. As far as trends are concerned, Okan tends to work well in Latin America, and, said, “Dramas will be the key trend, as reported Richter, “One of the great things always, in South America and the new about the Latin American market is that trend in dramas will be Turkish dramas it has a heavy Pay presence. Not only Power’s senior representative for Latin and telenovelas.” Diana Zakis, VP of Sales, Latin America and America, Pepe Echegaray does this mean that it caters to a wide “Latin America is a crucial part Asia for U.K.-based Content Television variety of niche programming, but also with the pan-regional channels, but also of Power’s global strategy and we’ve for Nordic World, rated Latin America as that, for strong shows with a good cast, it with free TV and digital outlets, as well maintained an active presence in “an important market for us to crack [but] is possible to create up to three windows as DVD in certain territories,” said Diana the region for a decade,” said Pepe we have not achieved this yet,” he said before going to FTA.” However, he Zakis, VP of Sales, Latin America and Echegaray, Power’s senior representative, Salling tapped a number of reasons for cautioned that, “non-scripted tends to Asia for U.K.-based Content Television. Latin America. He added, “Deals Nordic’s relative lack of success “south of be a much more fragmented market, and “Pay-TV penetration, Internet and there represent a good percentage of the border.” One key reason is the absence what will work in one country will not mobile use are all growing in the region; [the company’s] overall global sales. of a local partner. “Latin America is a long necessarily work in another.” the way we see it, the increase in these Latin America’s economic potential way from Scandinavia, so it is important Aside from the right product, Richter platforms and end users creates more is continually increasing, which is for us to have someone there on the ground credits “a close collaboration” with opportunity for business,” Zakis added. particularly important at a time when — someone who understands our catalog, Miami-based Spiral — and, in particular, many economies, such as those in and is passionate about it,” he said. “A recent study by comScore stated that Europe, continue to stagnate. This is its managing director Zasha Robles — Latin America’s online population grew In fact, Nordic did once actually have local with helping Red Arrow connect with why investing in the best content for faster than any other global region in 2011, LATAM is a top priority for [us].” representation, but canceled the agreement the territory. rising 15 percent, and that online viewing due to a lack of results. “Finding the right Similarly, Studio 100, a Belgium-based grew by double digits in Mexico, Brazil, Like the other execs VideoAge partner for Nordic in Latin America will be production and distribution company Argentina and Chile. I predict this trend spoke with, Echegaray noted that “it’s our main focus at NATPE,” he said. important to have someone on the with its main sales office in Germany, will continue, and that licensing to digital But he was clear that there are other uses Mexico’s Comarex as its LATAM platforms will become an increasingly ground in such an important region,” and he has “operated on Power’s behalf challenges facing Nordic in Latin America. representative. important part of our sales activity across “For one thing, we are a boutique Latin America,” she said. from [his] office in Miami” since he Patrick Elmendorff, Studio 100 took over the company’s Latin American Scandinavian distributor and the simple Media’s managing director, said, “We handle distribution to Latin America operations in 2007. truth is that a lot of our catalog just isn’t “With numerous international and in-house — I handle television and digital suitable for Latin American audiences.” local channels, and a vast amount of sales, while Melissa Wohl handles DVD. Echegaray has found that the “major Salling continued, “We are a relatively new households with great viewing capacity, Melissa and I are based in Content’s Los trend in LATAM is toward local company and have only been selling formats Latin America has huge potential within Angeles office, close to our territories in the production. Several nations have increased since MIP 2011. This means that a lot of the TV business. In addition, television marketplace,” Zakis explained. their local production and consequently our formats have not yet had the chance to increased their inventory for distribution. technology and the infrastructure for TV Highlighting the importance of build a track record of international success. channels have developed immensely over The acquisitions departments find It is very hard to attract attention in Latin LATAM, another U.K.-based company, themselves with [fewer] funds to acquire the years in Latin America, thus opening America to a format that has only got a ITV Studios Global Entertainment, and fewer time slots to program product more opportunities for media.” track record in Scandinavia and a few of the organized a “showcase” event in Mexico from other distributors.” He added that smaller European countries.” To Jack Alfandary, the Miami, City for the first time last year. It attracted the Latin American market has shifted Florida-based SVP of FremantleMedia approximately 40 executives from what from primarily a telenovela-producing British company Optomen has enjoyed Latin America and U.S. Hispanic, “Latin Flavio Medeiros, VP Sales, Latin America market to one that produces comedies, recent success in the region. Optomen’s America has always been important…and and U.S. Hispanic, called “Mexico’s series and films that appeal to local and director of Sales, Caroline Stephenson we certainly see growth opportunities. capital and regional channels.” regional markets. Plus, “the expansion called Latin America, “a very important It’s a very vibrant market.” Describing the event as “a great success,” of the U.S. Hispanic market has opened growth area for us.” She added: “The Alfandary explained that Medeiros said, “It is likely that we will up a content opportunity for those amount of business we do there is increasing FremantleMedia Latin America has repeat [it] in 2013, although no decision LATAM producing markets [that] see an rapidly due to the success of food-related production bases in Mexico and Brazil, has yet been made as to whether next increasing demand for their product and, programming in primetime factual with local staff on the ground in those year’s event will be held in Mexico City consequently, profitability,” he said. entertainment slots on all channels.” offices working on various productions in again, or in Miami.” But Echegaray also pointed out that The one European nation that, for self- Mexico. “We also have teams in Miami Medeiros added that, “drama, movies, when a country experiences “either political evident reasons, has always had a major working on Pan-Latin productions along entertainment, factual and formats all sell or economic changes or [a] crisis, the presence in Latin America, is Spain. The with programming for the U.S. Hispanic well in Latin America.” He also expected licensing panorama is directly impacted. extent to which Spain stands out from the market,” he added. FremantleMedia also to, “announce shortly key format deals in This is especially evident in countries like rest of Europe in the region is emphasized produces in Colombia and Puerto Rico. both Brazil and Colombia.” Venezuela, Argentina and Colombia when by Carme Puig, International department In terms of programming trends, From Istanbul, Can Okan, co-founder there have been major changes in leadership coordinator at Catalan Films and TV Alfandary said, “We continue to see of ITV – Inter Medya, said, “Telenovelas, or where laws have been modified and who, while welcoming the new digital a lot of interest in our big formats — ‘Made in Turkey’ TV series, and Turkish the economy is affected. Governments platforms as “a plus” said that, “theatrical clear brands that are proven ratings feature films started to draw broad interest establish local production laws and even and television sales are still the main goals winners, particularly entertainment and from markets such as Central and Eastern quotas, limiting the licensing prospects, in distribution for Spanish companies.” game shows.” While FremantleMedia Europe, Central Asia and the Middle which in turn affects sales.” But he said, Puig also described the most important is the producer and distributor, East and North Africa. We are [now] “when, on the other hand, the economies challenge facing Spanish companies in FremantleMedia Enterprises distributes aiming to gain [a] foothold in Asia, improve and there is political stability, you Latin America as “co-production issues, content across Latin America. Western Europe, as well as the Americas, perceive an immediate positive change in especially in relation to tax-shelter supports, “We have done consistent business especially the birthplace of telenovelas: the buying/licensing patterns.” which are being developed in the majority throughout Latin America, particularly the Latin American market.” Jan Salling, COO and Sales director of South American countries.”

22 VIDEO a AGE J ANUARY 2013

NATPE’s History Repeats Itself

(Continued from Cover)

1992. Irv Holender with UWF wrestlers and The 1980s their manager Herb Abrams 1993. Marion Edwards, Jim Gianopulos, During the ’80s, when oversized Len Grossi sweatshirts and skin-tight leggings were ever to be translated simultaneously all the rage in the U.S., NATPE was into Spanish,” VideoAge reported in time for the syndication business, which held in Las Vegas, New Orleans and our 1988 article, “NATPE Stresses we billed as the “bread and butter of even Houston, and the international TV Quality Programs.” Additionally, the NATPE.” contingent was struggling to make itself conference program included more In 1989, VideoAge also previewed the known in the U.S. In 1983, VideoAge activities geared toward international upcoming 1990 NATPE with an article 1994. Joe Lucas reported that there were differing opinions written by then-president Phil Corvo attendees than in years past. assured everyone that NATPE was making about whether NATPE was solely for titled, “NATPE’s New Intl Accent,” an effort to become the premier world domestic business, or whether it was an The 1990s in which Corvo stated that NATPE marketplace for the buying and selling of appropriate place for international business International was increasing its role NATPE faced a downward spiral in TV programs. to take hold. Perhaps unsurprisingly, the 1990, as indicated by our 1989 preview in international program marketing, international contingent was expected In 1990, VideoAge posed the question: titled, “NATPE Sings Blues In New and had set aside two mornings for to be smaller that year. Also in 1983, “Is NATPE A Good Market?” The main Orleans.” The theme of the market that international attendees to visit booths the conference design allowed for four without domestic buyers present. concerns were budget considerations year was “Challenges of the next decade,” days of screenings and reserved the last They also arranged an international (namely that the market was too and, as VideoAge reported, “storm two days for workshops, discussions and reception for foreign buyers, and clouds [could] be seen gathering on awards, leading some to complain that European registration paced ahead of the “conference workshops and award the previous event. ceremonies interfered with the real business of buying and selling.” Some syndicators even talked about holding a separate convention for screenings, or withdrawing from the convention format altogether to screen product for stations individually instead. By 1986 and 1987, the focus had shifted 1993. Armando Nuñez Jr., Tetsu Uemura, to the high costs in New Orleans, where Hiroyuki Nakamura, Barry Barnholtz NATPE was held. In a preview article for the 1987 edition titled, “NATPE the horizon.” One attendee complained Convention to New Orleans Again: about the domestic seminars held at 1994. Victor Tobi, Roberto Barros Problems, Solutions and Expectations,” the event, which he deemed unsuitable VideoAge noted that on top of expensive for international visitors. Additionally, expensive) and international attendance, hotels and restaurant menus, a nine NATPE implemented various restrictions 1994. Hector Beltran, Belinda Menendez, though many attendees acknowledged Carlos Bardasano percent sales tax on all goods would also on the exhibition floor, banning food, live that progress had been made. empty wallets. demonstrations and caricatures from TV The push to “beef up [NATPE’s] But not everyone was satisfied shows, which effectively “took the show international effort” continued in 1992, Despite grumblings about the high that enough was being done for the out of show business.” We recapped the when “global programming finance, costs, NATPE took aim at helping international contingent. In our 1990 1990 event with the headline: “NATPE’s technology and co-production topics the international contingent feel more article, “Pardon My Indifference: But Darkest Hour Passes Into History.” To [were] featured at the 1992 NATPE at home, and VideoAge reported in a This Is NATPE!,” VideoAge highlighted exacerbate the problem, it wasn’t a great international seminar, under the banner 1987 article titled, “NATPE changes the sense that foreign TV executives were its domestic image for a more int’l On A Clear Day, You Can See 2000: being “treated like the plague by domestic profile,” that although the market International Television in the ’90s.” U.S. syndicators.” As we reported, “The “remain[ed] a mainly domestic affair, NATPE’s then-seminar coordinator, Joe problem is the syndicators on the floor it [was] attracting more and more Barbarino, acknowledged that “making are there to do domestic business. They broadcasters and distributors from other NATPE attractive to an international aren’t there to do international wheeling continents.” According to Sunbow’s crowd has been an ongoing effort.” It and dealing. So the international buyers Fred Cohen at the time, “NATPE is seemed syndicators were beginning to really NATPE International and it’s get lost in the shuffle.” attracting more and more overseas As a response, NATPE tried to bring programming people who come over more attention to international buyers. not only to see what new productions Thus, they sent out brochures on the nuts are available, but to introduce their and bolts of the convention that were product into the marketplace.” So, printed in French, German, Spanish and it should come as no surprise that Italian, and the NATPE International attendance figures rose, as “the amount Service Center was prepared to help of floor space occupied…increased.” foreign buyers and sellers. It marked the “The tremendous growth of first time a united Germany and The Spanish-language programming [was] Association of French Program Producers 1993. Chicca Pancaldi, Guido Pugnetti 1995. Joseph Matesevac, Ray Donahue reflected at NATPE by the first session exhibited. Then-president Phil Corvo (Continued on Page 26) 24 VIDEO a AGE J ANUARY 2013

NATPE’s History Repeats Itself

(Continued from Page 24) understand the value of the international market, and by 1995, the international 1995. Greg Phillips (r.), Margaret Nicoll and contingents from Latin America, Canada Miguel Salvat and Europe were increasing, but of the more than 400 exhibitors, only 44 (11 percent U.S. and 70 percent international. percent) were from outside the U.S. Additionally, there was a 97 percent increase 1997. Susan Elkington, David Ellender 1995. Pedro Leda preparing for a press in cable network participation, a 41 percent However, the 1992 convention also conference increase in broadcast television networks NATPE’s International Pavilions…are up brought about grumblings regarding the By 1996, VideoAge spotted a new trend at “expected higher costs for NATPE ’93 [in and a 25 percent increase in new media 25 percent.” Russia and Spain had pavilions NATPE, reflected in its preview headlined, San Francisco].” According to unofficial and international companies. We reported for the first time, and there were seminars on “NATPE’s Reverse Trends; U.S. Becomes a estimates, the costs were projected to be that, “International exhibition participation both international and domestic television. 50 percent higher than in New Orleans. Minority.” Registration that year ran at 30 alone increased 21 percent from last year. This trend continued when in February of 1997, a VideoAge headline reported, “NATPE Loses Domestic Steam, Gains Int’l Status.” That year, there was an overall drop in attendance, which we

1999. Tomas Darcyl and his sales team

attributed to the fact that some companies folded and were absorbed into others, and the number of TV station groups had been reduced. But international exhibitors were strong at 242 from 87 countries, compared with 77 countries the year before. In total, 3,265 non-U.S. attendees — an increase of 10 percent over 1996 — went to NATPE. In 1998, we deemed NATPE crucial to the “expanding ‘gateway’ between Latin America and North America,” bringing to the industry’s attention the fact that Miami also serves as a gateway (a precursor to the move to Miami in 2011). The 2000s In the new millennium, VideoAge declared, “NATPE Brings Renewed Hope to Syndication.” Though the 1999 U.S. TV season was rough and syndication was losing strength, we predicted, “As NATPE [drew] closer to fostering more ‘convergence,’ an ever-increasing number of Internet and dotcom companies will begin to make deals with producers to satisfy the wants

(Continued on Page 28) J ANUARY 2013

but also set up a competing market in a hotel-suite format at the Venetian, one NATPE’s History of NATPE’s unofficial hotels during the Las Vegas conference.” We reported that, Repeats Itself “Domestic divisions of the major U.S. TV companies may not be back for NATPE 2003. Meanwhile, the international arms

(Continued from Page 26) of the large TV companies will only 2003. Marcos Santana (c.), Ernesto Carrizosa, Ignacio Barrera

2002. Fernando Barbosa exhibit in a hotel suite environment (with of their consumers.” There was an or without NATPE’s blessing).” It seemed upswing in 2001 when then-president that the non-profit organization could have of NATPE Bruce Johansen announced been on the verge of financial collapse, that a record 800 advertising executives and we reported that it was “difficult to would attend the market. estimate how long the association could Yet in 2002, although there was a conceivably stay in business at its current strong contingent from Latin America, rate of yearly expenditures.” Things were still heading downhill in “The major U.S. domestic distribution 2002. Eugenio Lopez Negrete, Eduardo 2000. Charles Falzon companies not only pulled out of NATPE, Clemesha, Isabella Marquez, Mariano Vertiz 2003, the year Rick Feldman — a “savior” but not a “visionary,” as VideoAge has said in the past — was named president and CEO. But VideoAge saw “Signs of Vitality Without [a] Respirator,” as we noted in our headline, and participants were looking forward to a return to Las Vegas the following year. Vegas proved a good antidote in 2004 when the market showed “definite signs of rejuvenation” and a resurgence in floor traffic. The 2005 market was the “best it’s been in years,” according to our review titled, “Floor Gets Hot, Lifts Backfire, Biz Lights Up.” On the first day of the 2006 market, the WB and UPN announced that they would become the CW, which brought the focus back to the domestic side. More Internet companies and mobile carriers attended the event than ever before, and there was an over-20 percent increase in Latin American buyers. By 2007, VideoAge reported that NATPE had transitioned into a one- day affair, and the “question remain[ed] whether new platforms, international buyers and sellers and independent distributors [could] take the place of NATPE’s traditional bread and butter: The syndication business.” Though the 2008 event was busier than in the recent past because program buyers came to meet with studio reps to iron out plans for the writer’s strike, more and

2012. A+E Networks’ sales team

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2011. Eric Mueller, Stephanie Pacheco, John Garcia, David Stern, Gustavo Gomez, Tomas 2010. Lisette Osorio, Camila Reyes Davison 2010. Valerie Cabrera

The 2012 event marked the last under former president and CEO Rick Feldman, and the new president and CEO, Rod Perth, will have a chance to make his mark NATPE 1983: FROM VIDEOAGE’S at the 2013 event, when NATPE celebrates MARCH 1983 ISSUE its 50th anniversary. 2009. Susan Bender, Sally Treibel According to Perth, “NATPE’s 50th We don’t know how long NATPE International will remain International — however welcome that more studios abandoned the convention Anniversary is a moment that should be celebrated by everyone in this amazingly designation may be. Some syndicators and buyers are floor for the suites, and some even sent complaining about its size and unfocused schedule. vibrant and resilient industry. Our Miami reps but did not exhibit. This lack of Other international events now taking shape in the market/conference is the first must- floor presence was exacerbated by the U.S., such as AMIP-TV, and domestic events such fact that the high number of conferences attend event of the year, and our mission as INTV, could be more appealing to some (the took people away from the floor. is to catalyze the most productive and informal, relaxed atmosphere is what contributed to successful U.S.-based content market and By 2010, NATPE announced that the meteoric success of the Monte Carlo TV Market). conference. Our theme this year is ‘Beyond it would move from Vegas to Miami NATPE International could maintain its lead by once Disruption,’ which speaks to the wealth of — a move VideoAge viewed as overdue again fine-tuning its format. To us, an international opportunity that has been created in recent recognition that NATPE had morphed TV market in the U.S. makes sense. It could reduce U.S. years by technology. By facilitating ongoing into an international event. However, distributors’ increasing marketing costs, offer foreign conversations among the Hollywood, Disney did not attend in 2010, and “The distributors new opportunities and bring together all international, digital, brand and agency the major foreign buyers — Canadians, Australians, outcome wasn’t rosy, but the consensus communities, NATPE is becoming a British, Italians, Germans, Japanese, Latin Americans — seem[ed] to be that the market has hit critical bridge between content creation who make the U.S. a regular stopover. bottom and now has nowhere to go but and monetization,” he said. One suggestion is to have NATPE’s international up.” “But,” he added, “it’s not just about aspect leading the domestic event, with seminars Things were looking up in 2011, when how much business will be transacted and conferences starting a few days earlier. This NATPE moved to the Fontainebleau — with influencers and decision makers arrangement would suit the U.S. distributors, who could Hotel in Miami Beach, as indicated by from around the world, the opportunities prepare themselves while attending to a relatively small our headline, “Miami Market Marked clientele; the foreign buyers, who now feel neglected; for networking at NATPE are endless Momentous Moments.” The parties the interested U.S. TV programmers, who could pay and invaluable. returned (including two pre-parties), closer attention to foreign products; the foreign and it was evident that the market would “And finally, any birthday deserves a distributors, who could perform more effectively; and be a success before it even began. Yet, special celebration, so we are throwing a the organizers, who would be relieved of some heat. despite the upside of being in Miami, must-attend 50th Anniversary party for many felt a need for more mid-sized everyone at NATPE on Tuesday evening companies to exhibit on the floor, since at the Liv Club,” he said. a large number of companies set up Only time will tell what this year — shop in suites in the Tresor Tower of and the next 50 — hold for NATPE, the Fontainebleau, making the elevators but in the meantime, we’re grabbing our congested and causing buyers to be party hats. late for meetings, or even miss them completely.

2010. Delmar Andrade, Edson Mendes 2010. Peter Iacono, Kevin Beggs 2012. Gene George 2012. Luciana Egurrola, Mariana Fernandez

30 VIDEO a AGE J ANUARY 2013 Screening the Future

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Years at MIP-TV Coverage, Visibility, Distribution that keeps growing and gives more value

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For more info: [email protected] My Two Cents MAIN OFFICES 216 EAST 75TH STREET NEW YORK, NY 10021 TEL: (212) 288-3933 FAX: (212) 288-3424 VIDEO AGE WEBSITES: www.videoage.org et me explain why, in my view, film and TV festivals — but film festivals in particular — www.videoagelatino.com have become useless to our industry. www.videoage.it I’ve counted 360 major film festivals around the world; one held almost every day of P.O. BOX 25282 the year. The proliferation of such festivals was one of the conference topics at the 2012 LOS ANGELES, CA 90025 American Film Market (AFM). The AFM’s organizers stated that there are some 4,000 VIALE ABRUZZI 30 audiovisual festivals worldwide. 20123 MILAN, ITALY These festivals are held for a sector that employs only about one million people YUKARI MEDIA Lworldwide, which is not surprising, considering that the core of the international film YMI BLDG. 3-3-4, UCHIHIRANOMACHI business’s commercial area comprises no more than 10,000 people. CHUO-KU, OSAKA JAPAN The goal of most, if not all, of these festivals is to place American films in competition TEL: (816) 4790-2222 and to encourage Americans to participate. But, if American executives and talent (actors, EDITOR directors, scriptwriters) were to participate in even a small fraction of the festivals around the world, they would not have any time left for work. DOM SERAFINI ASSISTANT EDITOR In the past, film festivals were beneficial to the industry because they helped save publicity costs. They were also helpful for finding distribution channels or securing financing SARA ALESSI or co-producers for future projects. Today, with the evolution of the film and TV industries and their new economic and EDITORIAL CONTRIBUTORS exploitation models, the advantages festivals once provided are gone, rendering these events basically useless to the professional ENZO CHIARULLO (ITALY) sector. ISME BENNIE (CANADA) Specifically, for movies in the $100 million range, entering a competition is a risky undertaking since the film could LUCY COHEN BLATTER embarrassingly lose, but also because the producer would have to relinquish control of its marketing. Plus, imagine if a movie CARLOS GUROVICH with a genre not clearly defined were described as a “comedy” when the producer saw it as a “drama.” This is without considering LEAH HOCHBAUM ROSNER out-of-pocket costs that the festival does not cover. BOB JENKINS (U.K.) AKIKO KOBAYACHI (JAPAN) In addition, nowadays film festivals are no LORENA SANCHEZ (ARGENTINA) longer useful to companies as a means for finding LEVI SHAPIRO new content to distribute. Indeed, A-list titles DAVID SHORT (AFRICA) have distribution in place even before the movies ERIN SOMERS are produced, and B-list titles, mainly from MARIA ZUPPELLO (BRAZIL) indies, are known because they require financing, CORPORATE AND pre-sales and co-producers. The rest of the films CIRCULATION OFFICE are not invited or selected by festival organizers. Therefore, in order to find them, distributors have 216 EAST 75TH STREET to attend trade shows such as AFM or festivals that NEW YORK, NY 10021 have markets attached, such as the Cannes Film TEL: (212) 288-3933 Festival or TIFF. This is why AFI, the film festival FAX: (212) 734-9033 held in the heart of Hollywood, changed its date PUBLISHER and attached itself to the AFM in November in MONICA GORGHETTO order to survive. BUSINESS OFFICE In its AFM edition, VideoAge documented why LEN FINKEL film festivals are no longer useful to companies as LEGAL OFFICE a source of new content to distribute. ROBERT ACKERMANN The only people left to benefit from festivals are STEVE SCHIFFMAN “That trade ad must have kept people away. producers with unusual movies that actively seek It said, ‘For Mature Audiences.’” to enter as many festivals as possible to get some WEB MANAGER visibility and to find willing distributors (outside MIKE FAIVRE of those who’ve already passed on them). DESIGN/LAYOUT Unfortunately, festival organizers want to get local media attention; therefore, they do not pay attention to C-list movies CARMINE RASPAOLO that would have otherwise attracted more industry attention. In addition, some festivals have become a legal form of political ILLUSTRATIONS patronage, thus they require lots of media attention in order to justify the use of public money. BOB SHOCHET

To survive the industry’s new paradigm, festivals should first and foremost serve the industry: Only in this way will they attract FOUNDED IN 1981 attention from the sector and thus make participation necessary. This is why it is important for a festival to focus on films that MEMBER OF NBCA don’t have distribution in place, or those that have only partial distribution. Plus, festivals should organize concurrent trade (CIRCULATION) shows for those films that have not been selected for competition and are without distribution. VIDEO AGE INTERNATIONAL (ISSN 0278-5013 USPS 601-230) IS The “glamour” aspect of a festival should be found elsewhere, such as at conferences, where stars can participate without PUBLISHED SEVEN TIMES A YEAR: JANUARY, MARCH/APRIL, MAY, JUNE, JULY, OCTOBER AND NOVEMBER/DECEMBER. PLUS DAILIES BY risking negative backlash — like Robert Redford and Arnold Schwarzenegger, who hosted conferences at MIPCOM to promote TV TRADE MEDIA, INC. SINGLE COPY U.S.$9.75. YEARLY SUBSCRIPTION their projects. Another option is to create awards like the Los Angeles Press Club, which established an “Oscar for Entertainment U.S.$45 (U.S., CANADA, MEXICO); U.S.$60 (U.K. AND EUROPE). Journalism,” bestowed upon Jane Fonda. © TV TRADE MEDIA INC. 2013. 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 Dom Serafini PAN-AMERICAN CONVENTION. SEND ADDRESS CHANGES TO VIDEO AGE INTERNATIONAL, 216 EAST 75TH STREET, SUITE PW, 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.

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