Exclusive Interview: Ynon Kreiz

LONDON/NEW YORK: Since joining Endemol two and a half years ago as chairman and CEO, Ynon Kreiz has led the company through a period of significant growth. In this exclusive interview he talks about acquiring production companies, setting up a diversified sports division, expanding into the scripted programming business and harnessing the powers of social media.

WS: In your international growth, what has been the strategy behind buying production companies? Are there certain territories you are looking at now where you think you need to establish more?
KREIZ: Our growth strategy has been a combination of organic activities and acquisitions. When it comes to acquisitions we’re looking at companies that have a particular expertise that will either strengthen what we already do or put us in a new area of activity. In all cases, they have to be creative, have a proven track record and be the best in their domain. If you look at the acquisitions we’ve done, each company is a very unique asset and there is nothing else like it in its space: Southern Star is the largest drama producer in Australia and one of the world’s largest distributors of English-speaking shows; Tiger Aspect is one of the U.K.’s largest and most prolific producers of drama and scripted comedy; Darlow Smithson is an award-winning factual producer; Wiedemann & Berg in Germany is led by the producers behind the Oscar-­winning film The Lives of Others; WeiT Media is managed by one of Russia’s most successful independent producers, Timur Weinstein, and already has 16 local scripted projects for this year; Underground is one of the leading telenovela producers in Argentina; and Authentic Entertainment is one of the most successful producers of reality factual and documentary programs for cable networks in America. This group of companies is varied both in terms of geographic location and business profile, and each of them is very unique in what they do.

WS: What has been the strategy behind building Endemol Sport?
KREIZ: Endemol Sport has been a great story for us. In its first year Endemol Sport has already broken even and is now regarded as the fastest-growing sports-media company in Europe. The idea is to combine our sport expertise, through the management team that we brought on board, with the creative DNA of Endemol. In doing so we offer a fresh approach to sports entertainment, which we believe delivers great content across TV and online. We provide a wide range of services and products to our clients and we work with some of the leading players in the industry. This includes the Dutch Premier League, the International Rugby Board, motor racing organizations and football clubs like Manchester City, Ajax Amsterdam and Inter Milan. The services range from covering live events, providing channel management, digital productions, online content, social media, documentaries, sports entertainment formats, magazine series and general syndication. We’ve secured some very significant deals, particularly in football, with organizations such as the Abu Dhabi Media Company, for whom we produce and manage programming across three HD Premier League and general sports channels. It’s quite a wide and varied universe of clients we work with and we believe that we have very strong partnerships with all of them. So far it’s been a great ride.

WS: Endemol has three very big and important shareholders. What is your relationship with them and is it difficult to keep them all on the same page, so to speak, when you are planning new things?
KREIZ: Our shareholders are different from one another, but each is a leader of their domain, just like the companies that are part of Endemol. Goldman Sachs is the preeminent investment bank in the world and their private-equity practice is one of the best in the business. Mediaset is one of the most successful broadcasting groups in the world. Cyrte is one of the most prolific investors in global media. So each shareholder has very strong skills in their respective area and we work with them where they can help us. They are extremely supportive and I couldn’t be more positive about the relationships with them and their commitment to the company.

WS: How did your previous experience at a venture-capital firm help inform the way you now lead Endemol?
KREIZ: There is nothing that can really prepare you to be at the head of a company like Endemol. There is nothing else like it. You work with some of the most talented and creative people in our industry within a company that is a world leader. While you have to defend your leading position, you are continually looking to expand. This is a market that is changing very dynamically and we have to react and adapt and constantly be at the top of our game to remain competitive and successful. It’s a never-ending challenge but every morning when I wake up I remind myself that it’s a piece of cake compared to my wife[’s challenge:] she has to manage four kids under the age of 6!

WS: How are you using social media to create buzz and promote shows?
KREIZ: In some situations it’s a marketing component and in others it’s a commercial proposition, but in all cases it’s got to be a key part of the programming proposition.

WS: You have been chairman and CEO a little over two years. What have been the greatest challenges and what have been the greatest surprises?
KREIZ: In some ways it seems as if I’ve been with the company for two weeks, as it’s gone by so quickly, and in other ways it feels like it’s been ten years because so much has happened. I would say that what’s exciting about the company is grasping the broad spectrum of activities and the advantages you have as a group when you connect all the dots of the Endemol platform. The challenges are to maintain that, remain competitive, be ahead of the game and continue to build on something that already is so successful.

WS:  What drove the decision to get into scripted programming and how has that business been performing?
KREIZ: Our scripted business has been doing very well recently, even better than what we planned for. And we had very high expectations! We decided to move into scripted because historically it was an area we hadn’t focused on, but as you grow, you look to diversify your offering and expand into new lines of business. In the past we had been active in just a few markets, mostly in Italy, Spain and Holland, but through our recent expansions we are also in a strong position in Germany, Russia, India, Australia and the U.K. In 2009 we produced 1,800 hours around the world and in 2010 we expect to be producing 2,000 hours, and counting.

WS:  Endemol can be compared to a creative factory. What have you found to be the best way to nurture that creativity and get the various companies to share information, ideas and know-how?
KREIZ: [That’s] a good question. This is really one of the most important things we do and we always try to do it better: share ideas, foster the exchange of creativity, know-how and best practices. It’s something that we are constantly focused on within the company. There is no one magic formula for it. It’s the culture; it’s in the DNA. As we’ve mentioned in the past, we refer to ourselves as the world’s biggest brainstorm. It’s creative people getting into a room, sharing ideas, experiences, points of view, cultures and different perspectives. You shake, stir and mix it up and you get some good shows out of this process!

WS: Are you finding business models that work for some of the new-media platforms, such as websites and mobile? Are they making money yet, or is their function primarily to support your properties and offer viewers new ways to experience and connect with what you produce on TV?
KREIZ: It’s a combination really. Some areas are already profitable, like gaming or sponsorships. It’s still early and so far there is no one proven model, but there are many opportunities out there. This is why we recently launched Endemol Worldwide Brands, which integrates all of our digital activities into the operations of the company. We used to have a stand-alone digital department, but now everything digital is embedded into our core activities. We think digital from the outset as we create shows. Probably one of the best examples of this is The Money Drop, which was developed by Endemol U.K. While the show is on air, people simultaneously play games online. The show was first commissioned as a five-day event in prime time on Channel 4 in the U.K. and during that period we had 450,000 people playing the game on their computers live in parallel to the broadcast. The show became one of the most discussed TV shows on Twitter, worldwide, generating up to half a million tweets in one day. So it’s quite a phenomenon. It’s now being rolled out worldwide and already picked up by FOX in the U.S. This is a classic example of an idea that from the outset was created as a combination of a television experience and a strong online component.