Darren Throop

This interview originally appeared in the MIPCOM 2012 issue of World Screen.

 

Entertainment One (eOne) is a leading independent content company with a focus on acquiring and releasing theatrical films as well as producing and distributing television series, movies and family fare. With companies in Canada, the U.K. and Europe, eOne has established a multi-territory distribution network that has allowed it to become a mini major. As CEO Darren Throop explains, eOne’s openness to international partnerships and its ability to strike creative financing deals have been the keys to its success.

 

WS: Entertainment One has posted some very good financial results, despite the difficult economy in many territories. What has been fueling this good performance?

THROOP: A number of things. Our various divisions have been performing very well. We had an excellent year last year with our television programming. We had a number of season two, season three and even season four [commissions] for Rookie Blue and Call Me Fitz that are driving our TV numbers.

 

On the film side we released 152 films theatrically last year, some very small, some very big, but overall we increased our performance in the film business and doubled our digital revenue. And, finally, there is our family division, led by Peppa Pig and other key brands that are doing quite well internationally. We’ve put Peppa on top networks around the globe, and it’s remarkable how quickly it becomes a favorite among children in those markets. That sets us up to launch successful licensing and merchandising campaigns. If you look at each one of our core pillars of business, we’ve seen good continued momentum in each of them. On top of that, of course, we invest heavily in content, so we do expect growth.

 

WS: What have been the drivers of your TV business?

THROOP: In March 2012 we relocated [Peter Emerson], the president of Entertainment One Television International, to London and announced that we were expanding our international TV business in the U.K. and Europe. Again to broaden our distribution network and give us greater access to premium television content around the globe. This gives us closer relationships with European broadcasters, European producers and European picture makers. We’ve been involved in a number of highly successful co-productions with international partners like Endemol, Impossible Pictures in the U.K. and Raw TV in the U.K. We are trying to broaden our reach and extend our relationships with both the producers and the broadcasters.

 

We just want to continue to build on our successful partnerships and co-financing models. Our new suspense drama Rogue for DIRECTV, The Movie Network and Movie Central is a great example. Saving Hope for CTV and NBC is another. Our team is exceptionally innovative in putting together co-productions with international partners, both on the broadcast side and on the creative side, and financing them in such a way that it is helpful for the broadcaster and for the producer.

 

WS: You mentioned Peppa Pig earlier. The children’s segment of the television industry has been challenged. Is the key to having success in children’s television having great properties that can be exploited across multiple platforms?

THROOP: It certainly is. It speaks to the global economy. The family business is really about licensing and merchandising. You need the broadcast platform to drive brand awareness and then a well-thought-out and carefully executed licensing-and-merchandising program. However, the disposable income that most families have is under pressure, to say the least.

 

We are very mindful and careful about the way we roll out properties like Peppa Pig in different territories. We build viewership slowly, and once it hits a critical point, then we will slowly roll out licensing and merchandising. Of course, we need that broadcast window, but again, those windows are changing and a lot of preschoolers and kids are watching more and more content online. A 2-year-old can now navigate an iPad. We are really strategic in the way we roll our properties out.

 

WS: Canada is going to be the Country of Honor at MIPCOM this year. Because the Canadian market is relatively small, Canadian companies have always been among the most internationally minded, having to partner with many in order to keep their businesses alive and vibrant. This international openness has been central to any successful Canadian media company, hasn’t it?

THROOP: It certainly has. Canada’s television and film industry is incredibly active and vibrant.

 

Overall, Canada competes very well on a global stage. We do because we have very, very talented people in the production community and we came to the realization many years ago that English-speaking content can resonate in any English-speaking territory. You can build it in Canada and you wouldn’t know if it was recorded in the U.K. or in the U.S. or in Australia, excluding the accents, of course. We’ve been pretty good at finding our niches and exploiting them on the global platform. We’ve got considerable resources and wonderful production companies here in Canada that, like eOne, continue to do many international co-productions and build great relationships with broadcasters and trading partners around the world.

 

WS: As we look out 12 to 24 months, what do you see as the major opportunities and the major challenges for eOne?

THROOP: The ebbs and flows in the global economy may prove to be a challenge in the months and years ahead. As we’re seeing ad revenue decline and shifts in consumer behavior, we’ll see fewer dollars invested in original programming. However, the changes in viewing habits give us, as a nimble, small independent, the ability to change with the consumers, and be very opportunistic with these developments in technology and the way people are interfacing with our content. It’s our biggest opportunity but also a major challenge. I also believe that further consolidation across the media space globally will continue to present opportunities for us across all divisions.