Keys to Turner Broadcasting’s Success: Breaking News & Original Programming

Turner Broadcasting was one of the pioneers of multichannel television in the U.S. and internationally, with the first all-news network, CNN, and the first animation-only service, Cartoon Network, followed by TBS, TNT and more. Phil Kent describes how the focus on quality programming, across several genres, has paid off around the world with audiences and advertisers alike.

WS: Turner Broadcasting has several successful channels in various parts of the world. Where are the growth opportunities in your international business?
KENT: Turner has the benefit of a significant global footprint and two truly global brands—CNN and Cartoon Network. Our growth strategy internationally is to extend those core brands, as well as TNT and TCM; target the markets that matter most in each region; and build scale in those markets. We are the number one multichannel network provider in Latin America and we’ll continue to grow our profile and revenue there, particularly in Brazil and Mexico. We see growth opportunity for our brands in Central and Eastern Europe, the Middle East and Africa. We’re bullish on India, where we’ve been investing for more than a dozen years. And we are building our presence in Japan, where we recently acquired two more entertainment networks. Our goal over the next few years is to grow international revenues to 20 percent of Turner’s total.

WS: Following the spin-off of AOL, Turner Broadcasting now accounts for nearly half of Time Warner’s revenues. In what areas are you looking for growth in revenues?
KENT: We continue to invest in quality programming, like Conan and our partnership for NCAA basketball, to drive affiliate revenue growth. We are leading the shift of advertising dollars from broadcast to cable. And we are growing our business internationally, where we see an upside in key markets.

WS: While advertising rates for news, sports and late-night programming on cable are more or less on a par with broadcast network rates, there is still disparity between ad rates for scripted cable shows and scripted network shows. What can be done to close the gap?
KENT: The gap is narrowing. But with two-thirds of viewing going to cable networks and only one-third of the dollars, there’s [a lot] of opportunity for cable networks. We are well positioned to take more than our fair share on the strength of our brands, the quality of our programming, and the innovation and leadership of our advertising sales effort driving growth in ad dollars to our company.

WS: What are the strengths of CNN and what needs some fixing?
KENT: CNN is a portfolio of some of the most respected and most profitable brands in the media landscape. Its strengths are its brand promise—quality, nonpartisan journalism and breaking-news leadership—and its multiplatform profile on linear television, online and on mobile platforms around the world. CNN has an execution challenge in one daypart on one network: prime time on CNN in the U.S. This represents a small subset of CNN’s and Turner Broadcasting’s revenue, but it has implications for the larger brand. So we are working to make smart changes across prime time. The biggest thus far is the arrival of Piers Morgan.

WS: Is CNN International enjoying greater success than CNN in the U.S.?
KENT: CNN has the greatest reach in unduplicated viewers of any news and information television network in the U.S. CNN International is a significant global business that is building audience in the U.S. Among the factors driving its success are a new focus on programming and marketing; smarter and better integration of international content across the CNN portfolio; and a news cycle heavy on important non-U.S. stories. We are very pleased with CNN International’s momentum and results.

WS: Turner Broadcasting has made original programming a priority across several networks: TNT, TBS, even Cartoon Network and Adult Swim. Why has this been important?
KENT: Original content has been part of the programming mix of these and each of the Turner networks from their respective beginnings. Original programming differentiates our networks in the marketplace, reinforces their brand promises, builds audience, and drives advertising and distribution value.

WS: What have been the keys to TNT and TBS producing high-quality scripted shows at lower costs than broadcast network fare?
KENT: It starts with hiring the right people: show runners who embrace the opportunity to create great television within our budget models. We focus on genres built on strong characters and storytelling, as opposed to expansive set pieces and elaborate special effects. The Closer and Rizzoli & Isles draw huge audiences as character-rich procedural dramas produced within our budgets.

WS: There have been discussions about scheduling four evenings of original programming on TNT in the U.S. This would bring TNT very close to a broadcast network model. What would be the benefits of this move?
KENT: Adding a fourth night of original programming allows us to build on the audience momentum we’ve created with our current originals, while offering an expanded slate of exclusive content viewers can only see on TNT.

WS: Cable networks in the U.S. have been known for nurturing new shows and giving far more special attention than broadcast networks to developing, scheduling and marketing individual shows. If TNT does move to four nights, will it still be able to give the same attention to individual shows as it has in the past?
KENT: Even at four nights a week, given that we schedule two hours a night and use a split-season schedule for some series—ten or so episodes in the summer and shorter runs in the winter season—we’re still more than able to give each show the individual attention it needs to achieve its creative and commercial potential.

WS: As you have more original productions, is there also a move to owning more of your own original programming? And if so, what would be the benefits of this?
KENT: Owning our content is a competitive advantage that gives us greater flexibility in how and where we offer it to consumers.

WS: Despite the push for original productions, are off-net shows like Law & Order and Family Guy still important to your networks?
KENT: TNT and TBS are successful because they offer a balanced mix of programming that addresses the specific needs of advertisers, distributors and consumers. A blend of original content, marquee sports, and popular acquired series and movies drives reach and ratings with cost-efficiency. This blend has proven the right programming model for our networks.

WS: As more and more viewers find TV shows on services like Netflix, will the value of off-network shows decrease?
KENT: The marketplace will continue to determine the value of content. We are beginning to see the impact of Internet exposure on some programming coming into the syndication market. Exclusivity is a differentiator for our brands. We’ll continue to be aggressive bidders for content that has high value to us.

WS: Why is the concept of authentication, as in the TV Everywhere model, important to the cable business?
KENT: Authentication rewards consumers with more access to content on more platforms, and it protects the value of premium content to and for networks, advertisers and distributors. It both expands the consumer experience and ensures the continued health of the multichannel ecosystem.