Hit Seekers

The acquisition of nonlinear rights is a key issue on the minds of leading European buyers as they vie for the next breakout hit.

European buyers attending this spring’s MIPTV know there is one constant in the contemporary TV business: change. Consolidation continues to sweep across the sector. Meanwhile, there is intense competition from traditional rivals as well as online behemoths Amazon Prime and Netflix.

Buyers like Rüdiger Böss, executive VP of group programming acquisitions at ProSiebenSat.1 Media, need no reminding of the streaming giants’ growing presence.

“Netflix and Amazon are very aggressive, and it doesn’t cost a lot to subscribe to their services,” he says. “Personally, I think they are too cheap. Our SVOD platform, maxdome, is popular, but the cost of rights is climbing.”

With increasing competition from streaming services (both Disney and NBCUniversal announced new U.K. SVOD platforms in the last six months), European broadcasters attending MIPTV are thinking hard about issues surrounding the acquisition of linear and nonlinear rights.

“We simply wouldn’t make a deal today that didn’t cover online distribution, too, as it is such an important part of what we are doing on Viasat, Viaplay and our free-TV channels,” explains Jakob Mejlhede Andersen, executive VP of programming and content development at the Modern Times Group (MTG).

In the Nordics, MTG premiered the reboot of The X-Files by screening the sci-fi show simultaneously on free to air and streaming service Viaplay. At the same time, the entire X-Files archive was made available to binge-view on Viaplay. The next window was pay channel Viasat Series.

In Sweden, Cathrine Wiernik, director of programs at commercial broadcaster TV4 Group, says that online rights are making negotiations with distributors far from straightforward. She describes the situation as “a jungle,” adding, “If the SVOD rights have been sold already, do you want the linear license? SVOD is where the competition is. It used to be a linear war. Now it’s an SVOD war.”

BUYERS’ DEMANDS
“On-demand rights have always been very important to us,” observes Sarah Wright, Sky’s controller of entertainment acquisitions. “At Sky we have the services to use all the rights—for example, download and download to own. The Sky Store [a buy-and-keep movie service] is very important for us. Later this year we are adding series to our buy-and-keep service.”

The recently launched Sky Q set-top box enables subscribers to watch shows they’ve recorded via their PVRs on tablets, at home or on the move.

So what shows are on shopping lists as MIPTV approaches? Sky seems to be ruling out nothing, despite its recently announced extensive deal with U.S. premium channel Showtime.

“Sky is looking for great dramas, great documentaries, and concerts for Sky Arts,” Wright says. “We’re also looking for box sets. I am also interested in short-form content our customers can snack on—not huge amounts, but it’s something that’s on our radar.”

Additionally, the pay-TV firm is seeking “little foreign-language gems that don’t necessarily compete with BBC Four [the upscale British network that brought The Killing to the U.K.], but have a Sky flavor.”

Wright adds that “everybody is looking for a big light-entertainment show. We always look at what formats there are.”

With a dearth of big, new, global entertainment hits, Sky is not alone in hoping to identify a non-scripted format that could be the next The Voice or The X Factor.

At the other end of the content spectrum, the success of Netflix’s true-crime documentary Making a Murderer is on buyers’ minds. “I think Sky got there first with HBO’s The Jinx, but we do need sticky, factualized drama that’s grounded in authenticity,” Wright stresses.

In February, the BBC finally axed youth-skewed BBC Three as a TV channel to save money. BBC Three now runs an online-only service. Rivals hope their own channels can take advantage of the market gap by strengthening youth-friendly services.

TAKE FIVE
At the U.K.’s Channel 5, executives will use MIPTV to assess content aimed at the under-35s, among other things. They would like niche network 5STAR to attract some disaffected BBC Three viewers.

Recently, money was pumped into 5STAR as part of Viacom’s overall double-digit investment in Channel 5. The idea is to make 5STAR “a louder youth-entertainment channel,” explains Katie Keenan, head of acquisitions at Channel 5 and Viacom International Media Networks U.K.

In February, the broadcaster announced that its on-demand service was improving functionality as part of a rebrand. Keenan is seeking exclusive content for the offering, retitled My5. “It’s very early days. We want to understand more about the users of our VOD platform,” she says.

Rival British broadcaster Channel 4 is also targeting content appealing to a younger demographic. E4 wants shows with the potential to play well next to the channel’s stable of established U.S. network comedy and drama, according to Nick Lee, Channel 4’s acquired series manager. More4 needs lifestyle-based factual, international drama and some “select documentaries.” All 4, Channel 4’s AVOD service, has experienced recent success with exclusive shows “that land squarely with linear catch-up,” Lee says.

Lee adds, “The successful launch of Walter Presents [an online foreign-language scripted initiative] has proven to All 4 the value of curated acquisitions.”

ITV, the U.K.’s most popular terrestrial station, faces big changes following the departure of Peter Fincham, director of television. However, for Sasha Breslau, ITV’s head of acquired series, it looks like business as usual at the market.

Breslau is mainly looking for non-scripted shows for ITVBe and ITV4 at MIPTV. ITVBe is aimed at younger women. High on Breslau’s buying agenda are U.S. reality shows covering plastic surgery, dating and glamorous home makeovers.

In view of the success of The Great British Bake Off on BBC One, her wish list also includes a cake show that can cook up a ratings storm. Last October Bake Off was the U.K.’s most popular show of the year. “I’d love something like Ace of Cakes,” Breslau says.

As a lot of ITVBe’s shows are stripped, volume is important. Ideally series should have 20 to 30 episodes, Breslau says, “which is not to say I won’t buy a show that has one series and has been recommissioned.”

ITV4, which features a lot of live sports, including the Tour de France, is aimed at men 24 to 45. Dangerous-job shows and transactional shows are on Breslau’s radar. So are extreme fishing and car shows. “We’ve just bought the second window to The Classic Car Show,” Breslau says. The first window was on Channel 5.

WHERE’S THE COMEDY?
In mainland Europe, ProSiebenSat.1’s top priority is comedy. “Comedy is the genre that ProSiebenSat.1 needs most right now,” Böss says. “For three to four years we’ve been coming to markets looking for new sitcoms and other comedies.”

Böss adds, “We have many hours of comedy a day on ProSieben. We need fresh blood. There has been little that’s new, from either the major studios or the big independents.”

He is targeting the 14-to-29 and 14-to-49 demographics. “In my opinion, the British have the best sense of humor in the world, but it’s the U.S. comedy shows that play best on German TV,” Böss states.

Sky’s Wright is more upbeat regarding the prospects for American comedy. “From what I’ve heard of this year’s L.A. Screenings, comedy seems to be coming through. Modern Family works really well for us. It would be great to find a companion piece to that.”

Inevitably fiction remains a big schedule driver for most major European TV channels. But with the recent glut of U.S. drama, are broadcasters and other commissioners in danger of overdosing on the genre?

“There are a lot of drama series on the market, maybe even too many of them,” opines Böss. “There were more than 400 new U.S. drama series last year. I think the drama bubble might burst soon.”

He adds, “When there is so much drama, the question is how to best monetize it. Audiences are continuing to fragment and non-linear is getting bigger. But police procedurals still perform very well for us.”

“American network series are too generic and don’t really connect with the Swedish way of life anymore,” complains TV4’s Wiernik. “There is too little relevance to our audience for them to actively tune in week on week. Over the years we’ve seen so many U.S. crime shows. They still work well as box sets and on other SVOD services, but not in linear prime time.”

At MIPTV her peak-time focuses are high-end British crime drama and one-off documentaries. “We’re looking for tabloid documentaries that can make an impact. They can fill holes in peak time.”

Also in Scandinavia, Anette Romer, the head of acquisitions and formats at Denmark’s TV 2, will be eyeing a broad range of genres for prime-time slots across its portfolio.

Format-wise, factual entertainment is always a focus for TV 2. Shows that have wide appeal and can perform well among 20- to 60-year-olds are in her sights.

“They have to be authentic and credible, with high potential for emotional engagement,” Romer explains. “Within the realm of drama, we are looking for broad, heartwarming British series. Crime is always in demand. Zulu (aimed at 15- to 30-year-olds) is looking for stand-out edgy comedy and cool, entertaining youth programming. Feature films are in favor with our audience. We are continually looking to build our inventory.”

Regarding the requirements of his channels, MTG’s Andersen is clear: “I’m looking for great scripted series. The trend toward high-quality scripted series is here to stay.”

Drama proved its worth across Europe last fall and on into the winter. At Channel 5 in the U.K., Gotham’s second season did well. Meanwhile, the station scored its highest ratings ever for a drama with the first episode of the X-Files revival; the show won a consolidated audience of 5.1 million, a 19-percent share. On Sky, Wright highlights The Affair, Supergirl, Arrow, The Flash, Madam Secretary, Criminal Minds and Elementary as successful shows. Relegated from the main terrestrial channel, season three of The Americans has gained traction on ITV Encore; the series gave ITV a healthy consolidated audience following a successful catch-up window.

Storage Wars and Pawn Stars were hits on ITV4, while The Real Housewives of New Jersey was a success for ITVBe, Breslau notes.

“In recent months, our breakout hits on SAT.1 and kabel eins have included NCIS and Criminal Minds,” Böss says. “On ProSieben, The Big Bang Theory and new series The 100 have also been big hits.”

DRAMATIC HIGHS
At Sweden’s TV4, two British crime shows scored—Safe House and season two of Broadchurch. “Occasionally a quirky show comes along that defies expectations,” Wiernik explains. A local adaptation of Passion Distribution’s Make You Laugh Out Loud “with just an added voiceover by one of our biggest comedy stars performed strongly against a Swedish version of BBC staple Antiques Roadshow, broadcast on rival station SVT1.”

Two big shows for MTG were Empire and Transparent. “Both series premiered with second seasons on Viaplay during the last six months and both have been huge successes, which is interesting because they really are each other’s opposites,” Andersen says. Empire achieved record audiences for Viaplay.

A strong performer for Denmark’s TV 2 was season three of the drama Seaside Hotel, which, according to Romer, received the station’s highest-ever audience appreciation figure. Season 12 of Strictly Come Dancing was another hugely popular show, while original formats like the factual-entertainment series Biggest (Storst) have done well.

Overall, acquisition budgets appear to be static or, in some cases, increasing. “Our budgets are certainly not being cut,” says Sky’s Wright. “We are flexible. It’s not either-or, it’s both. If there is a great drama that works for our customers, we will go for it.”

There are exceptions, however. For the first time ever, TV4’s prime-time fall schedule was composed entirely of Swedish commissions. “There have not been any radical cuts to our acquisitions spend, but as we invest more in our own shows we are spending less on acquired content,” Wiernik explains. “These days we don’t do output deals. We cherry-pick, so we’re paying more for the shows we want. We need to think about the specific needs of the schedule rather than buy in volume.”

As competition intensifies and the ever-present threat of online piracy remains, there is a greater need for European networks to provide day-and-date premieres, or as near as possible to them.

“We have to be mindful of piracy and of social-media buzz,” Wright says. “We always try to get as close to the U.S. release date as possible.”

Yet when shows need to be dubbed into German, Swedish or Danish, and also meet local compliance regulations, delays occur.

“We want to get closer to day-and-date releases, but because we have to dub U.S. shows, it takes a couple of weeks after the U.S. release before we can air them,” Böss says. “But we are getting quicker. With The X-Files, [we aired it] 15 days following the U.S. release.”

Season two of Gotham premiered in the U.S. last September, but fans in the U.K. had to wait until January for the Channel 5 transmission. Keenan says the delay was because American audiences tolerate breaks in shows during a season, whereas British viewers don’t.

FILLING THE GAP
What, in this increasingly complex rights world, is missing from MIPTV? Are there any genres that buyers desire but can’t find?

There is an appetite for more authentic documentary series in the mold of Making a Murderer that is not yet being met. “Audiences want the reality, but in another form than the produced frameworks of reality shows,” MTG’s Andersen says. “They want the real deal. Over the last year we’ve seen great examples of documentary series with stories better than fiction.”

Other buyers cite the lack of formats. TV 2’s Romer observes, “2015 was quite dry with respect to formats, within both factual and entertainment. With the high share demand (TV 2 prime time is looking for a 25- to 30-percent share), it is not an easy task digging out strong titles. Consolidation in the market has not yet paid off creatively, and I seriously doubt it will.”

On a more positive note, ITV’s Breslau regards MIPTV’s shelf space as being full of goodies. “There is nothing that’s missing from the market. There is so much content out there. It’s an embarrassment of riches, but there is only one of me. Frankly, I struggle to keep up with all the shows that are out there.”

Others doing the rounds of the Palais this spring may relate to this sentiment.

Pictured: Twentieth Century Fox’s The X-Files.