THE BUSINESS JOURNAL OF FILM, BROADCASTING, BROADBAND, PRODUCTION, DISTRIBUTION OCTOBER 2007 VOL. 27 NO. 5 $9.75 In This Issue: Sea Videos MIPCOM’s Biz Stars Cable’s Day & Date Sportel Goes Xtreme ® www.videoage.org Full Orders in Order at Fall Private Equity: A Tale of Mart. High Hopes for Series Money, Madness, Mayhem BY LUCY COHEN BLATTER BY BOB JENKINS media. The deals are often highly his year’s fall season series have come out of the studio lot gates with many ith half a trillion dollars leveraged and, by implication, dependent expectations. After a summer of sluggish U.S. TV network ratings, in capital, private equity on cheap loans. If an avalanche of U.S. an overabundance of copycat game shows and numerous reality flops, firms continue along mortgage defaults drives interest rates too the U.S. nets have been their path to buy the high, the arithmetic underpinning these given another chance world (the top 20 firms deals will start to unravel, and to wow the pants off control companies with (Continued on Page 22) U.S. and, indirectly, more than Tinternational viewers. fourW million employees), While the jury’s still out on many despite increasing concerns Champagne, Caviar for fall shows (as some have yet to in the money markets. Rich East Europe Markets premiere), the studios are using VideoAge took a look at MIPCOM to plan out their what’s happened so far, and hen analyzing the Eastern European TV international strategies, a process wonders if Wall Street has industry, it’s difficult to uncover hard data. that began with the L.A Screenings any lessons to learn from The industry is expanding, but information is in May. Soggy Bottom USA. W not keeping up. Although transparency has “I used to turn on the TV to get away from reality.” not yet reached those shores, VideoAge was able to “At the Screenings we found that Over the past several assemble an accurate account of some of the region’s international buyers were looking for months, private equity key markets: Russia, Poland and Serbia. The area’s TV non-continuous storylines,” said Marion Edwards, president, International Television at firms have demonstrated a trade show, DISCOP is also reviewed. Full reports can great deal of interest in the be found on pages 58, 60, 62 and 64. (Continued on Page 42) (Continued on Page 58) TV Biz Frenzy Hits Latin Countries Sugar. Passion. Ambition. It runs in the family. n a few months since VideoAge last scrutinized the Latin territory during its major TV trade show — the L.A. I Screenings — the area seems to have embarked on a whirlwind of television business activities, with Argentina, Brazil and Venezuela at the forefront. Two Brazil-based TV trade shows (one for content, the other for hardware) spotlighted the country’s great potential, which is reflected by the restructuring of the international division of TV Globo, the country’s major TV organization. Another TV trade show did the same thing for Argentina, only there, it’s Claxson that’s been restructured. This comprehensive report that unfolds on pages 48, 50, 52, 54 and 56, also takes a look at recent developments with TVes, the Venezuelan TV network that supplanted RCTV right in the middle of the L.A. Screenings. © 2007 CBS Studios Inc. (Continued on Page 48) My 2 Cents: CANE “Green” TV Generates No Interest, Greenbacks www.cpitv.com DRAMA LOVE, LUST AND LIBERATION Based on the classic novel by John Cleland and adapted by the award–winning script writer, Andrew Davies (Pride and Prejudice, Bridget Jones's Diary, Tipping The Velvet) Fanny Hill is a rollercoasting romp of youthful experimentation, complications and eventual independence. Newcomer Rebecca Night is supported by a stellar cast including Alison Steadman, Samatha Bond and Hugo Speer. 2 x 1hour or 1 x 100 mins (tbc) nfnpjst pg b xpnbo of PLEASURE www.fidtv.com FREMANTLEMEDIA ENTERPRISES Log onto a world of entertainment For further information, please contact us at FremantleMedia Village, Stand No. RB1, Riviera Beach, Cannes T: +33(0)492998912 F: +33(0)492998913 E: [email protected] E: [email protected] ONTENTSVIDEO AGE • No.5 • October 2007 Cover stories: 30. Peace Arch fighting its own war of independence Fall full orders serve MIPCOM well Caveat emptor: Take private equity money at your own risk and peril 32. Family viewing is not dead yet. “G” content makes Champagne and caviar await the TV industry in C a comeback Eastern Europe. Review of Russia, Poland and Serbia Frenetic TV business activities in Latin America pass Seeing dollar signs at sea muster. Argentina, Brazil and Venezuela are 36. with videos. Below-deck entertainment is not what it investigated used to be 4. World News: Italy, Denmark, U.S., Canada, Turkey. Plus, Letters to the Editor 47. Cable MSOs fight movie theaters for same day-and- date window 48. Latin America Report: • Argentina’s Jornadas are only about growing pains • Claxson survives lobotomy and grows new limbs 12. Book Review: The guy on that • Venezuela post-RCTV: Not too many viewers for “you funny cover is uncle Walt. see yourself” TV Disney will not be pleased • Brazil pay-TV market is not just playing around with about this book the triple-play • Brazil’s TV Globo International moved to São Paolo and Scalamandré explains why • TV Forum Brazil is a winter springboard for entering the market 16. MIPCOM Preview: It’s only a formality. The full report 58. Eastern Europe TV Round-Up: we’ll never know • DISCOP starts the ball rolling • Russia TV has its three Musketeers too 18. SPORTEL goes X-treme. What would Prince Albert of • The nouveau riche of Monaco say? Russian TV • Serbian TV is growing after all • Poland loves TV formats 20. Slingbox: TV networks better take this new gizmo • New TV network Puls-ating seriously with joy 24. Touring the Food Network studios in New York for food and fun 66. Calendar of unforgettable events 28. German TV not über scrutiny. Achtung: the locusts are landing 62. Finally the end. My 2¢ cents of opinion (content sales), New York-based Rai Corp. (services), Rai Cinema (film production and distribution), in addition to RAI International and other channels, such as RaiNews24 and events such as PrixItalia (the oldest TV festival in the world). The RAI Worldwide concept is modeled after England’s BBC Worldwide, and could include other Carlo Sartori: which RAI will operate worldwide. This RAI entities such as RaiSat, RaiClick “new” division, called NewCo RAI and RaiNet (computer-based Internet RAI’s New Tsar International (and shortened to RAI services). NewCo), was originally created in 2003, but remained dormant until Sartori was The most interesting part of the project t is officially known as the “RAI appointed its president last August. Prior Carlo Sartori with VideoAge’s Dom Serafini (at least for North American audiences) is Worldwide Project,” but the awkward to this appointment, Sartori was that it calls for monetizing all RAI title is a temporary one, created by president of RaiSat, a bouquet of RAI will have the most prominent role, as its broadcast channels currently broadcast in I officials at Rome-based RAI, Italy’s channels distributed via satellite on the flagship channel. Europe (Rai1, Rai2, Rai3) through state broadcast organization. According SkyItalia platform. The plan or “project” envisions the Eutelsat’s Hot Bird satellites. These to RAI’s Carlo Sartori, the “project” serves Within NewCo, RAI International integration within NewCo of several channels (with the exclusion of RAI to better define the role and tasks of the — the radio and TV channel for RAI divisions currently operating in the International) are now available in Europe newly consolidated RAI division under expatriated Italians outside Europe — international sector — such as RaiTrade via satellite, cable and IPTV (Internet protocol for traditional TV set viewing). The RAI Worldwide project also aims to make RAI International available in Europe (Italy included), and other RAI channels available outside Europe. DR’s Headquarters Spell Trouble midst an increase in foreign investments in the Danish media and the upcoming digitalization A of airwaves, the Danish Broadcasting Corporation (known as DR) could be facing a crisis. But the source of the company’s financial woes is neither foreign investments nor the planned 2009 digitalization, but rather the building of a flashy new headquarters and symphony hall, which is turning out to be more expensive than originally intended. Cost overruns and construction delays at the Oersted, Copenhagen-based facility have accounted for more than 220 million euro (U.S.$245 million) and resulted in 300 job cuts (representing 10 percent of the total payroll). Experts fear that DR is now ill-prepared for the competition that will inevitably come with digitalization. Additionally, this financial nightmare will likely lead to programming cuts that will affect award-winning radio reportage programs, live concert transmissions, and even 2008 Olympics coverage. When the plan to build the new headquarters (and the 1,600 seat symphonic hall) was first conceived in 1999 it enjoyed political backing. The idea of consolidating radio, television and online staff as well as the upgrade in technology was welcomed. The government was eager to convince high- profile companies to make Oersted their base. But things began to go awry in 2004, when DR first appealed to the government for loans to cover its exploding budget. (Continued on Page 6) O CTOBER 2007 Service entourage — that the The former President also used the association paid. The thunderous Promax platform to exculpate his applause that welcomed the 42nd U.S. candidate wife, Hillary, from the President clearly indicated that accusation now haunting her that she expectations were high, but the sparse approved of the war in Iraq.