Top Buyers See Challenges in Rights Negotiations, Online Monetization

CANNES: The business of negotiating rights across multiple platforms and finding ways to monetize online, on-demand services were identified as the key issues facing broadcasters today by top programmers from the U.K., Canada, Australia and Norway during the Acquisition Superpanel at MIPCOM, moderated by World Screen’s Anna Carugati.

The Acquisition Superpanel: What Do Buyers Want? session featured Malcolm Dunlop, the executive VP of television programming and operations at Rogers Media in Canada; Gill Hay, the head of acquisitions at Channel 4 in the U.K.; Beverley McGarvey, the network head of programming at Network Ten in Australia; and John Ranelagh, the head of acquisitions at TV2 Norway. At the end of the panel, the four programmers were honored with the World Screen Content Trendsetter Award, presented in partnership with Reed MIDEM, for their accomplishments in spotting hit shows and building schedules that deliver both audiences and advertisers.

“We’re delighted to be partnering with World Screen for this award to recognize your outstanding contribution to the industry and of course your audiences,” said Laurine Garaude, director of Reed MIDEM’s television division, who joined Carugati on stage at the Grand Auditorium to present the buyers with their awards.

Rogers’ Dunlop acquires for a portfolio that includes the flagship Citytv, as well as a host of niche specialty services. About 60 percent of Citytv’s grid is acquired. Ten’s McGarvey buys for three channels: Ten, Eleven and One. Ten has a smaller ratio of acquired fare, at about 30 to 40 percent; the bulk of the acquisitions go to Eleven and One. Ranelagh oversees TV2, as well as Bliss and Zebra, among other brands in Norway. He noted that TV2’s acquired slate has dropped from 50 percent to 25 percent in the last year. Bliss and Zebra acquire far more, about 80 percent of their grids. Hay’s remit includes Channel 4, More4, Film4 and E4, as well as its 4OD service; the biggest acquirer is Film4, followed by E4.

Each of the programmers was asked about their current shopping lists. C4’s Hay noted, “We’re not driven by slot needs or volume needs,” but rather by the quality of the shows. Ranelagh is keen to pick up some formats, “particularly cheap and cheerful ones than can go into daytime.” Acquired dramas, he said, are not working the way they used to. As an example, he cited the second season premiere of Homeland last week, which was 40 percent down on the season one premiere.

American and British scripted product is still playing well in Australia, McGarvey said. She too, however, is looking for formats, in the entertainment and comedy veins.

Dunlop picks up most of Citytv’s acquisitions at the L.A. Screenings. “We rely on the U.S. for most of our quality top-rated programming. We’re hoping that all our shows are successful and that we don’t have to replace anything at this point…. Usually you overbuy, you have a couple of shows on the shelf that you can put in” if something is cancelled by its U.S. network.

Citytv simulcasts its purchases with the U.S. networks. Ten, meanwhile, tries to launch shows as close to the U.S. transmission as possible. That’s a strategy occasionally employed by C4. “Homeland we launched within the same week as the U.S.,” Hay said. “Other shows we like to see how they launch in the U.S. and we want to make sure they get the right launch pad in the U.K. Also, the U.K. audience doesn’t like hiatuses in the transmission schedule.” That view was echoed by Ranelagh, stating, “For the [broadcast] network shows, we wait till we have about eight shows in stock, so about two months after the U.S.”

When evaluating potential acquisitions, the programmers concurred that key considerations include the time slot, the competitive landscape, the revenue potential of a show, and a holistic view of the schedule as a whole.

The four buyers all weighed in on output deals. “When we go to the Screenings, we know what we’re getting,” said Ten’s McGarvey. TV2’s Ranelagh noted: “We have output deals and I’m very anxious to change that to cherry-picking [titles].” However, Ranelagh continued, “We’re lucky; we chose many years ago to be with CBS [Studios International]. We hitched our sails to [Les Moonves’] masts and am very glad that we’ve done so.” TV2 also shares a Warner Bros. output deal with SBS. In the U.K., cherry-picking individual shows is the model employed by Channel 4. “It’s great to be able to use your money wisely,” Hay said.

Asked by Carugati about how they’re targeting the all-important 18 to 49 demo, the programmers soon began discussing the need for online and on-demand services. While much loved by audiences, particularly younger ones, online video services are proving to be a challenge for broadcasters. “I don’t think anybody in Canada has figured out how you’re going to make money” from online video players, Rogers’ Dunlop said. Obstacles include the difficulty of measuring non-linear views, and figuring out ways to insert advertising in nonlinear broadcasts online.

Ranelagh then brought up the topic of over-the-top television services that are providing a competitive threat to broadcasters, particularly as young people embrace the binge-viewing model of online platforms that make entire series available in one sitting.

C4’s Hay said that broadcasters can remain relevant in the digital age by continuing to “buy cleverly and produce spectacular shows. When it comes to launching new shows, a terrestrial platform is still the best.” There are opportunities, she said, to work with OTT platforms in order to help drive linear viewership.

Carugati then shifted the conversation towards windowing and rights negotiations. “Next to every successful buyer is a very competent lawyer,” quipped C4’s Hay. “One has to navigate the rights very carefully. It’s as complicated as it may ever get at this particular moment.”

McGarvey added, “It’s got to the point that if we don’t get the [digital, catch-up] rights, it will be a deal breaker for the main channel. We can’t afford to relinquish bits and pieces. There’s no such thing as a straightforward deal anymore.”