Top Programmers on Scripted, Exclusivity & OTT

MTG’s Jakob Mejlhede, FOX International Channels’ Jason Simms, Channel 5’s Katie Keenan and SVT’s Christian Wikander spoke about trends in drama, the battle for exclusive rights, the impact of OTT platforms and day-and-date premieres in conversation with World Screen’s Anna Carugati at MIPCOM.

The four programmers took part in the Acquisition Superpanel: What Do Buyers Want? session in the Grand Auditorium at MIPCOM. After the panel discussion they each received a World Screen Content Trendsetter Award, in association with Reed MIDEM, for their contributions to the international programming business.

Simms, senior VP of global acquisitions at FOX International Channels, buys content to be deployed in more than 120 countries. “These days it’s easier to say where we’re not,” Simms quipped of FIC’s global portfolio. Most of his shows are acquired, but FIC is exploring other models, including making its own shows, like the upcoming Outcast. There are territories that are more reliant on local originals, including Turkey and markets in Asia.

Mejlhede, the executive VP of programming and content development at Modern Times Group (MTG), acquires for a portfolio that spans Scandinavia, Central and Eastern Europe and Africa, covering more than 50 countries. He said that 80 to 90 percent of the MTG channels’ grids are acquired.

Keenan, head of acquisitions at Channel 5 and Viacom International Media Networks U.K., now buys for the free-to-air Channel 5, 5USA, 5*, MTV, Comedy Central and Spike. Her acquired-to-original ratio varies across the portfolio. 5USA is 100 percent acquired. Channel 5 is about 50/50. Comedy Central is 90 percent acquired.

Wikander, the head of drama at SVT, looks for ideas locally and globally that can be co-produced or adapted in Sweden. Most of SVT’s prime time is produced in-house, but acquisitions are important, Wikander said.

Carugati, World Screen’s group editorial director, began by asking the panelists what their most surprising acquisition or co-production has been.

For Keenan, it’s been FremantleMedia International’s Wentworth, a reboot of Prisoner: Cell Block H, from Australia. Prisoner: Cell Block H had previously aired in a late-night slot on Channel 5. “We saw the first three episodes and found some really compelling female characters. I absolutely loved it. An Australian prison drama in the heart of the Channel 5 schedule was quite a risk, but I said we should go for this. The show has delivered for three seasons, and [it] draws in a young female audience.”

Mejlhede mentioned FOX’s Empire. “It was a show that our linear channels shied away from. We premiered it on SVOD and it absolutely shot through the roof.”

For Simms, The Walking Dead was a surprise hit. “We all felt really strongly about the story and the characters. But we couldn’t have anticipated the mega success.”

Wikander spoke about Bron/Broen. “We were quite bored being always second in line co-producing with the Danish. We wanted to produce something that they had to co-produce with us! It took us seven years before we were rewarded.” He was also happily surprised by the domestic and international success of the mystery crime Jordskott. “It was quite a high-risk project.”

There are imported dramas airing on SVT, among them Mr. Robot, currently in a Friday 10 p.m. slot. In the peak season, prime time is dedicated to local content.

Mejlhede said that his flagship channels mainly program homegrown shows in prime time. “Acquired shows take space on the secondary channels.”

Carugati moved the conversation to the issue of rights, with all panelists noting the importance of being able to deploy shows on their linear and digital platforms. “Our linear live ratings have reduced dramatically because of the way people are watching content,” Keenan said. “It’s very important for us to make up the difference between the live viewing and the consolidated viewing. We’re working very hard with our suppliers to reach agreement around those rights. Otherwise it’s going to be a challenge to maintain the types of license fees we’ve been paying over the last few years.”

MTG’s Mejlhede added, “We are seeing significant linear decrease across our markets,” making SVOD and catch-up rights especially important. “We’re not interested” in just doing linear deals, he said.

Holdbacks and exclusivities have always been part of the conversation, Simms said, but may be “more pronounced now” given the shifts in the market.

Catch-up rights are “well established,” Keenan said. The issue today is more about “how viewers are using the catch-up services on devices in and out of the home. That’s one of the biggest challenges for us at the moment, the ability to give our viewers access when and where they want it. It’s been very centered within the home.”

Mejlhede said catch-up is important, “but it’s also in our interest to have an SVOD service.” A show can live on a catch-up service for a few weeks before going behind a subscription wall, he explained.

“Stacking and catch-up have always been important to us,” Simms said, adding that technology, and new devices, have made the business of licensing rights much more complicated.

Keenan added, “When you’re spending a lot of money on a drama, you are how a show becomes a breakout hit in a country. We may have a show for four years, but beyond that it will have a life elsewhere. It’s key that the initial broadcaster is very successful in order for a show to have a 10-, 20-year lifespan in a territory.”

Carugati asked the panelists about how OTT platforms are impacting the territories they operate in, especially now that some streaming services are in the business of first-run rights.

“We’re trying to get first windows, and usage online is absolutely necessary. It’s a very heated competitive situation in Scandinavia with Netflix, ourselves, HBO Nordic and other local initiatives. One of the direct consequences of the SVOD launches has been the linear difference in viewing.”

FIC is working with affiliates worldwide on nonlinear initiatives. “We’re about pushing all of our brands to as many means of distribution and platforms as we possible can. That means rolling out our Player apps. [Our parent company, 21st Century Fox] has a stake in Hulu. The Skys in Europe have very big OTT businesses.”

The panelists then talked about what their needs are in scripted. “There’s no question there’s an appetite for drama from audiences,” Mejlhede said. “The supply is maybe a bit too high.”

Simms has a range of needs at FIC. FOX wants “big-ticket procedurals” and “hot, buzz-worthy serialized shows.” Simms is also looking out for shows for FOX Crime and the female-skewing FOX Life.

Mejlhede said there’s a big difference between what works on linear versus what delivers in OTT. “In linear there is a shortage of good procedural shows. The last big launch was The Mentalist. Online we can experiment with serialized content.”

On the heels of the success of Bron/Broen, more companies are approaching SVT about co-pros, Wikander said. Scandinavian drama has been able to engage with audiences in a range of territories, he said, because they feature universal themes.

Carugati asked the panel to address a common refrain she has heard from other buyers that there is too much edgy, dark content on the market. There is a lot of “darker content out there,” Keenan said, noting the output of many U.S. networks, broadcast and cable. While there is wider variety of drama available, there is concern about these heavily serialized shows, which may not keep viewers hooked till the end of the season or bring them back for a second season.

“The need for procedurals is still there on our flagship channels,” Mejlhede added.

“I don’t think there’s too much” edgier, serialized storytelling, Simms said. “There is a lot, but there’s a lot of TV in general. If people are enjoying that kind of stuff, if they’re engaging with it, then great. If they don’t like it, the show will get canceled.”

“You do want a mix [of serialized and procedurals] across the channels,” Keenan said. High license fees means there’s a need for broadcasters to be able to amortize costs over a greater number of views, and procedurals are easier to repeat.

Wikander said there’s a need to combine “the Nordic crime with some lighter fare. On one hand you have crime, merged with drama, where you deepen the characters, and on the other hand you need more love, more hope, we need good rom-coms. The challenge is finding that. Crime is easier to co-finance for drama. Other things, like comedies, dramedies, are seen as more local” and therefore harder to co-produce.

Day-and-date premieres with the U.S. were also discussed. “It works when [it’s from] a cable channel that airs all 13 episodes back to back,” Keenan said. “The challenge is when they take hiatuses. That’s the challenge for everyone who buys a network show. You want to go as close to a U.S. air date as possible, but you don’t want people to drop off if you take a two- or three-week break. We’ve taken a different approach, depending on what type of series it is. With The Mentalist we played the show in two blocks. With the more serialized shows, like Once Upon a Time, we played it 22 weeks in a row.”

At FIC, day-and-date premieres for its high-profile shows like The Walking Dead are key. “It helps to reduce piracy. It also helps to coordinate social-media buzz around a show. It’s right for certain types of shows.” Dubbing, however, makes day-and-date in some markets a challenge.

Mejlhede said that 30 to 35 percent of Swedish households admit to using pirate streaming sites. “We all lose money if we don’t premiere a show as soon as possible” after the U.S. launch.

Carugati then asked the programmers about what they’re looking for. “It’s a real range” for Keenan given her portfolio. Channel 5 wants “big, bold, noisy drama that is highly marketable.” 5USA buys crime procedurals, and Keenan is looking to replicate the success of The Mysteries of Laura. 5* needs “noisy, 16-to-34, younger-skewing dramas.”  Comedy Central has branched out into non-scripted comedy and clip shows.

Mejlhede said he’s looking “for everything. We acquire such vast amounts. Two things specifically we need: strong procedurals for the flagship channels, and Nordic co-productions.”

Simms has his eye out for dramas, comedies and more original productions for FIC that could be any model: co-productions, pre-buys or deficit financed. “We’re hunting all the time. There’s no shortage of options. It’s just making the right choices. If you could point me to a guaranteed hit for the right price, that’ll be nice!”

Wikander would like to see a co-pro opportunity for a “feel-good” scripted show. “I also see that suspense/horror is something that could really work, especially for online, and in very short formats.”