Marco Bassetti Talks IP Ownership, Scale

In conversation with World Screen’s Anna Carugati in the Grand Auditorium, Banijay CEO Marco Bassetti discussed the crucial role of IP ownership, the importance of scale, the challenges of working with the SVOD streamers and the rising prominence of FAST channels at MIPCOM today.

MIPCOM marks the first appearance for the new Banijay since the acquisition of Endemol Shine Group. Addressing the integration of the company amid the pandemic, Bassetti noted: “The integration went faster than we thought. We know Endemol. A big part of this integration was done by Zoom; it was not the best [way] to connect with people. But it went very well. At the end of the day, if I look at the company now, we tried to merge two cultures and maintain and implement the best of these two cultures. I think that we are there.”

Asked about the benefits of scale today, Bassetti noted, “Scale is the real reason why we believe that production companies can be in front of the change and give value to the creative people, the producers. To have scale means also to have leverage. It means to have legacy IP. It means to connect that all together. It means to have opportunities in all the territories that we are working, with all the new changes that the media landscape is offering us. To be a group like we are now, [we] are in the best position to offer the best content either with new platforms, with the traditional broadcasters, with the public broadcasters. The vision is pretty simple. You can give them what they need in order to produce new pilots and retain talent, and you can invest. That’s another important part of having leverage: retaining IP. Today you need to invest more. In order to invest more, you need to have a company that is backing you on this. Scale is super important. And I think that is not yet done, not only for us, because the consolidation will come more in the U.S. and Europe. It doesn’t mean that an independent producer can’t do a very good job. For instance, we are trying to help as much as possible independent producers, giving them what they need in order to produce.”

With a potential recession looming, “Being part of a large group can help a lot. First of all, you have the IP that our clients need to have on the screen. Maybe they are trying to squeeze some margins. Also, you can offer so many new shows that nobody else can offer.” If a recession does occur, it’s key to be as flexible as possible, Bassetti said, “to give to our talent the opportunity to reduce costs. In order to reduce costs, what do you have to do? You have to squeeze a little bit at a time in where you are producing or need to find the best place in order to catch tax credits or a country where the cost is lower. Being part of a big group, you can have intelligence, the opportunity, to share with our company. We have [more than] 120 labels in 22 countries.”

On how the recently formed SPAC assists the company in a landscape where consolidation is continuing, Bassetti said, “It is helping us to not lose all the opportunity the market can give to us. We have all we need in order to grow.”

With revenues of about €3 billion and an EBITDA of about €450 million, Bassetti said, “Our growth should follow a certain strategy. The most important thing is that we don’t want to lose our DNA. It is not important to be a company of €3 billion or €5 billion. What is important is not to lose your DNA, your flexibility, to be always agile, to give the best home for our talent. That’s something that we are looking at. We [do not have a] target to double or something like this. We try to follow the strategy: Don’t lose our DNA, because so far, it is paying off.”

Asked if today is the golden age of content, Bassetti said: “The financial market says that this is the golden age for content. For sure, content [production] is much more protected than the distribution business. There is no debate on this. It is the golden age of content, but it is not the golden age of revenue sharing. SVOD gave us a fantastic opportunity. They are [also] challenging us. There are shows that maybe will never be on the air. If you want to continue to create value, it will be smart if you leave part of the value creation to the talent and the producer. Like it is in the music business. Like it is in the publishing business. It is not fair to ask a talent or creative, Give me everything, and then, when it’s a huge success, I don’t think they are happy. When you give to a producer the opportunity to invest in order to retain part of the rights, or you give the producer the opportunity to do the best show, not just to maximize the production fee and the margin, I think that they will do a better job. They can invest more. So, definitely, all the new platforms give us a fantastic opportunity to grow and to launch new shows, to explore new markets. But we try to defend, as much as possible when we can, the model that allowed us to grow. This, for us, is important in the medium and long term. Sometimes we prefer to give up some margins, but on the opposite side, we will like to retain some rights.”

He continued, “I believe that it would be good for everybody, not only for us, if we can stick more to the European model. To defend as much as possible our IP. The real value is in if you can create the capital, if you can retain your finished tape and your format.”

On working with broadcasters versus streamers, Bassetti noted that the data provided by traditional channels is key. He expects the streamers to start sharing more data because they understand how important it is for the “creative people to understand which kind of audience, which kind of subscribers, they can attract.”

Affirming the longevity of the ad-supported television model, Bassetti noted that Banijay has 50-plus FAST channels. “It’s a new B2C business that was not there before. This is the evolution of technology, the platforms, the consumers. Our business model used to be, you create a format and then you adapt country by country, following the culture of this country, trying to use the best talent in this country. If you look at some shows in unscripted, the format is the same, but the look and feel are totally different. Also, the narrative sometimes is different. The structure of the format is the same. This is our model. So, retaining IP allows us to adapt country by country, audience by audience. And we are eager to try to maximize as much as possible, monetize as much as possible, what we retain.”

Having a production background has aided Bassetti in running a company that is home to a diverse array of creatives across the globe. “We are all producers. We speak the same language and know how difficult it is to pitch. You know how difficult it is to convince people in front of you to buy your show. You know you have to be flexible and understand their needs.”

On managing the portfolio of labels, he said, “We want our talent to be free to create what they believe can create value for them and for us. We try to give them everything they need. We are totally agnostic. We are not owned by a big media company. This gives them the freedom to do what they want. We support them. Some years ago, we saw some talent wanting to be linked to a big and attractive platform. Maybe they give you very good money, but this golden cuff is not so great in order to do what you want to do. The approach is very much independent. We have a strong country manager in each country, and below them, there are MDs that are controlling and working with label companies.”

On his vision of Banijay’s future, Bassetti said, “There will be more opportunity in the future for B2C. I think that we need to maintain our flexibility, to be as agile as possible. Also, in five or ten years, IP and talent will be the most important thing in order to create value, and it is exactly what we are doing now. Every day we try to create a place, a company like Banijay, where the people love to be and to work.”