CAKE\u2019s Ed Galton, 9 Story\u2019s Alix Wiseman and eOne Family Brands\u2019 Monica Candiani weighed in on exclusivity, AVOD deals and windowing strategies in a TV Kids Festival panel titled The Big Picture today.<\/p>\n
The panel, moderated by World Screen<\/em>\u2019s Anna Carugati, featured Galton, managing director and chief commercial officer at CAKE; Wiseman, senior VP of distribution and acquisitions at 9 Story Media Group; and Candiani, executive VP of content sales for eOne Family Brands, discussing how the kids\u2019 distribution business has evolved, both since before the pandemic and since the onset of COVID-19 shutdowns.<\/p>\n \u201cOver the past several years, the way we\u2019ve been engaging with our clients has changed,\u201d said Galton. \u201cThe types of deals we\u2019re doing have changed. The people we\u2019re working with is changing. Five years ago, we weren\u2019t doing as many deals with companies like Netflix and other SVOD platforms. We weren\u2019t working with AVOD platforms like we are today. That disrupted the way we\u2019re doing our deals. As part of that windowing strategy, there\u2019s been an evolution in our business. There was a time when the windowing structure was fairly simple and we were able to figure it out. You have your pay-TV windows; you have your free-TV windows. Now it\u2019s more complex.\u201d<\/p>\n With the emergence of global-rights-seeking global streamers, it\u2019s become harder \u201cto have a windowing strategy,\u201d Galton added. \u201cSo generally, those rights are being assumed by one company.\u201d Selling to free- and pay-TV players, and now AVOD streamers, Galton said, involves \u201ca lot of non-exclusive deals. So you\u2019re doing fully exclusive deals and then you\u2019re doing wholly non-exclusive deals. That\u2019s the evolution and change that we have been seeing in the last couple of years.\u201d<\/p>\n Meanwhile, since the start of the pandemic, demand for content has soared. \u201cWe have been busy closing a lot of deals because the platforms and TV channels were asking for content,\u201d Candiani said. \u201cAlso, a lot of our partners asked to renew what they have already because they might have had some budget but not enough to buy new content. Or there was nothing available, so they asked us to renew some old stuff that was already with them.\u201d<\/p>\n Wiseman addressed the changing needs for exclusivity. \u201cIt\u2019s slightly becoming an all-or-nothing model. The move is more generally toward exclusivity, particularly for new IP. It\u2019s that gift of rights that must be had at any cost and at the expense of any other windows, which is problematic for us distributors and producers. The non-exclusive model is an interesting one as well and another developing scenario.\u201d<\/p>\n She cited as an example CoComelon. \u201cIt\u2019s interesting from an observer\u2019s point of view to see that something that is very big on YouTube can happily coexist on Netflix and find its own audience on a streaming platform as well. Some of us on this side of the business would argue that the adamant need for such high levels of exclusivity is not necessarily commensurate with what those platforms really do need. And in fact, many of the streamers are beginning to see how there is a benefit to be had by enabling windowing on other platforms because it elevates a brand. It increases eyeballs and enables consumer products. Hopefully, that will be a trend we can all help continue to happen. We do need those additional windows. It\u2019s very difficult to give that level of exclusivity and it is problematic in that it is completely cutting out other windows, particularly linear channels.\u201d<\/p>\n Galton added to Wiseman\u2019s comments with CAKE\u2019s own experience with the Angry Birds property. \u201cIt\u2019s had billions of views on YouTube and then we\u2019ve also managed to put the series on Netflix and multiple other platforms around the world, both linear broadcasters and digital platforms. And no one seems to care because it does well on every platform. The irony is, as you said, when you have brand-new original content and you\u2019re trying to build a new brand, you\u2019re handcuffed by exclusivity. So there is somewhat of a double standard in our business. I\u2019m a big advocate of non-exclusivity when it comes to selling content in the kids\u2019 business because I don\u2019t think kids care. But obviously, the platforms that need to put money down need to justify that one way or another and by doing that is with exclusivity.\u201d<\/p>\n Candiani weighed in with eOne Family Brands\u2019 experience with Peppa Pig<\/em>. \u201cMany times we have been asked, Why can\u2019t we have full exclusivity? It\u2019s impossible, not just because of the structure of the current deals, which go back many years, but also some brands need to be available to as many kids as possible. If you [do an exclusive deal with a single SVOD platform], maybe from the money perspective that can be quite interesting, but on the other side, you will not have enough awareness. You need to be on as many platforms as possible for some brands.\u201d<\/p>\n The panelists were then asked to provide examples of recent windowing strategies. At 9 Story, Wiseman referenced a property that was presold to a streaming platform, with two different launch dates slated, one for the U.S. and one for the rest of the world\u201412 months later. \u201cWe did that to try and slot in some linear first-run exclusive deals, so they would have that one year of exclusivity and be able to go crazy on the catch-up rights before having to be restricted on them. So they were able to build that brand on their own terms in the first instance. It was successful to a degree. We were able to get some of those deals done in time. For others, it wasn\u2019t a long enough period.\u201d<\/p>\n At eOne, Candiani says the company is still largely \u201cworking on the traditional linear first and then digital for most of our shows. But recently, there has been a case where we had to make linear and digital accept some windowing. It\u2019s been quite intense, but in the end, it\u2019s a matter of compromising.\u201d<\/p>\n Galton added, \u201cThere was a time in the U.S. when you were still able to do some deals with key broadcasters, the likes of Cartoon Network, and then window with a Netflix or a Hulu or something like that in second place. To me, that window seems to have collapsed and I don\u2019t think that\u2019s a possibility anymore.\u201d<\/p>\n \u201cIt\u2019s tough to find compromises,\u201d Candiani noted. \u201cThe linear still want digital rights because catch-up, especially for public broadcasters, has become more and more important. Sometimes that is by law. I think they have an obligation and that creates difficult conversations with the digital platforms because they want the full exclusivity.\u201d<\/p>\n On the challenges of creating an L&M success for a show that only has an SVOD window, Wiseman noted, \u201cIt\u2019s harder. It\u2019s not for lack of any kind of will to make it work. We are working with the streamers. A lot of them are starting to operate slightly differently. They have different objectives, but I think certainly they are all beginning to understand the huge value of consumer products and participating in those revenues, whether they control them or not. It\u2019s just quite early days. There isn\u2019t a single show that has launched on a streaming service that is a massive success at consumer products yet. And that speaks volumes for this moment in time. There is the problem of binge-viewing and how kids will burn through that content very quickly when they like it\u2014as opposed to it being seeded through on a schedule of one or two years. Also, taking us back to the question of exclusivity, hopefully there can be more windowing that maximizes that opportunity and helps them both. But it is a tough one and for retailers there is a big question mark right now. Even when you just look at the primary U.S. market around to what extent that level of exposure can garner great results on consumer products.\u201d<\/p>\n Galton agreed with Wiseman. \u201cThe digital platforms have been amazing for the life of our business. It has given us new life and new opportunities. It\u2019s not about the platforms; it\u2019s about the nature of how platforms are set up. They\u2019re not designed in the same way that we traditionally have been used to consuming content. And as Alix said, the way kids burn through content when they are on VOD platforms; there\u2019s not an opportunity for you to build momentum. There\u2019s no opportunity for them to go back to the playground and talk about it with their friends because it\u2019s not always in their face. They consume and then they move on to something else. And until we figure out the nature of how to keep shows front and center, that\u2019s a big obstacle. If you think about something like SpongeBob<\/em> or PAW Patrol<\/em> on Nickelodeon, it\u2019s on all the time and it\u2019s advertised all the time. [On streaming platforms, content is] competing with other shows, and it\u2019s just an image on the screen you click on. Then they move on to the next one after they have consumed it. It\u2019s hard to keep them coming back.\u201d<\/p>\n Candiani mentioned the importance of eOne\u2019s relationship with Nickelodeon around Peppa Pig<\/em> in the U.S. \u201cWe are collaborating on a lot of marketing campaigns, activities, which at this stage you can\u2019t have with the [SVOD] platforms. That\u2019s something that hopefully, one day, there will be a different approach.\u201d<\/p>\n The conversation then shifted to the emerging importance of AVOD services in the kids\u2019 space. \u201cThere are rights issues linked to the AVOD exploitation,\u201d said Candiani. \u201cMore and more, the linear [channels] or the [SVOD] platforms try to reduce the amount of content you can put on AVOD. But we have started during the last few months to test a few. It\u2019s a new business and it\u2019s growing and becoming important. The issue is just to understand, on our side, what the kids want to watch differently from what they already have available on other services. But definitely, it\u2019s growing and becoming a key element of when you do a deal to try to keep some rights available to AVOD.\u201d<\/p>\n CAKE is also doing more in the AVOD space, Galton added, and he expects that to continue. \u201cI look at it as another portal where kids can consume content. This way, it\u2019s monetized via advertising versus Netflix and others that are supported by subscription models. There will always be a need for advertisers to get in front of kids\u2019 eyeballs and if they\u2019re not doing it on linear television, they will start migrating to the AVOD space. And if that becomes the destination, we will do our best to be there and be as present as possible. The revenue at this point doesn\u2019t come anywhere near what we are doing in our traditional deals and the SVOD deals. We are noticing that if you can stack\u2014let\u2019s say you do ten AVOD deals in one territory, in aggregate, those deals might start adding up to something meaningful if you have a brand that kids want to consume on all these different platforms. And then it becomes a real business.\u201d<\/p>\n It\u2019s been a similar experience for 9 Story, Wiseman said. \u201cIt\u2019s still in its nascent years, but it\u2019s interesting to see how much these big media corporations have paid to acquire some of those services like Pluto. It says everything that they are going to pay that much for them. I agree with Ed that that\u2019s the one to look out for in the future and we all want to be on those platforms. They are certainly not going to make up for the loss in revenues in linear and they are not going to be able to compete financially yet with the [SVOD] streamers. But it\u2019s an amazing opportunity for those of us who have catalogs with beautiful, amazing, well-produced programming, which either has had its run, so it\u2019s library, or it hasn\u2019t found a home in a particular territory. Suddenly we have a place to put that content. So we are very excited about being in that space.\u201d<\/p>\n The panelists then weighed in on if the ad crunch of 2020 is impacting kids\u2019 broadcasters\u2019 budgets and their approaches to acquisitions. Candiani at eOne said that while budgets have been impacted, its upcoming slate has not been affected.<\/p>\n \u201cWe were surprised at how unaffected we were last year,\u201d added CAKE\u2019s Galton. \u201cI think we\u2019ll start seeing it more this year. We have had some clients that have said that they don\u2019t have budgets until 2022. You haven\u2019t seen the impact yet of COVID on public broadcasters, but I think when the pinch comes down the road, maybe 2022, 2023, [governments] are going to have to figure out how to pay for all of the social services and all of that stuff. Short term, we ended up doing OK. In the latter half of 2021, I see there could be a little more difficult, and beyond that, let\u2019s see how long this pandemic lasts.\u201d<\/p>\n Wiseman pointed to the \u201cmutual support system\u201d among the kids\u2019 content community that helped companies cope with the challenges of 2020. \u201cThey needed content, maybe they didn\u2019t have the same level of budget, and you try and work together. By the same token, I think people were trying very hard to continue working with us. But I think this year, there\u2019s no question there is going to be a bit of a downturn. People are not going to have the fluidity or the flexibility with budgets. There are budget freezes left, right and center. There\u2019s the decrease in ad spend. We\u2019re all going to feel the pinch. We\u2019re so lucky to be in a business that can continue to stay afloat and that there\u2019s the demand. The demand is never really going to go away.\u201d<\/p>\n As for content slates for the year to two ahead, \u201cOn our side, everything is continuing as planned,\u201d Candiani said, adding that she\u2019s excited for the prospects of the new content quotas in France requiring channels and platforms to invest a percentage of revenues in local shows. \u201cHopefully, this will help our sector have more options to put together funding and produce in Europe.\u201d<\/p>\n For 9 Story, too, \u201cit\u2019s business as usual,\u201d Wiseman said. \u201cWe\u2019re continuing to develop our slate. We\u2019re going to be taking out the shows when they are ready. The only difference is that we are not as beholden to these moments in the calendar\u2014the markets. We may have previously put the accelerator on to try and get a show ready to pitch in time for a market, where it might have benefitted from that extra four weeks. We\u2019ll give it those extra four weeks now before we take it to market. We are a little bit more fluid with our launch dates and our timings.\u201d Wiseman also referenced a \u201cmarked increase in the amount of European content, which for us it means we have to pivot a little bit. We do have a studio in Europe, but we have a studio in Canada as well. It may be that we have to do more of our production on some shows to tick those boxes in Europe.\u201d<\/p>\n \u201cLike Alix was saying, the necessity for getting ready for a market has gone away completely,\u201d said CAKE\u2019s Galton. \u201cIt was quite frustrating sometimes when you were working with your production colleagues and they\u2019re hurrying to get ready for a MIPCOM. It\u2019s like, don\u2019t rush development to be ready for a specific date. Make sure your development is where it needs to be because we have the best opportunity to find a home for the project. In a positive way, COVID has done that for us naturally. So we\u2019re not running around and worrying what\u2019s going to happen with the next conference.\u201d<\/p>\n The panel ended with each speaker outlining their thoughts on the challenges and opportunities in the year to two ahead. Candiani at eOne is excited to return to \u201ca sort of normality where we can meet face-to-face, exchange, meet our partners. And go back to being more confident in what is coming because now we\u2019ve always got these question marks. We don\u2019t know what 2022\/2023 [will be like], what the investments [will be].\u201d<\/p>\n Galton said the pandemic has shown him that businesses can be run efficiently with employees working remotely. \u201cI\u2019m not saying I\u2019m going to shut down my office as soon as possible, but I have now embraced the concept of flexibility, which is a positive I\u2019ve taken away from COVID. But I certainly long for the opportunity to get on an airplane and see my friends and colleagues around the world. I realized that what I like about my job and what I do for a living is that element: travel and being in front of people. Otherwise, it\u2019s just another desk job and it\u2019s not as exciting; it\u2019s not as much fun. That for me is what I\u2019m hoping will change by the latter half of 2021 maybe, when we\u2019re vaccinated, and we can emerge and see our friends again.\u201d<\/p>\n \u201cWe\u2019ve all got pretty bad Zoom fatigue,\u201d said Wiseman. \u201cYou realize the value of having those face-to-face meetings, and also the value of when we are at markets and conferences of what\u2019s happening when you\u2019re not in meetings. And how friendships grow out of business partnerships, which is part of the joy and excitement. It\u2019s such a huge international, wonderful community. I feel like we are all missing that a lot. I also think it\u2019s been interesting to see the extent to which business can continue using this medium.\u201d Wiseman also said that COVID-19 may have changed people\u2019s perspectives on business travel. \u201cI would like to think that we collectively as an industry are just a little bit more pragmatic about how and when we travel and make it work for us.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" CAKE\u2019s Ed Galton, 9 Story\u2019s Alix Wiseman and eOne Family Brands\u2019 Monica Candiani weighed in on exclusivity, AVOD deals and windowing strategies in a TV Kids Festival panel titled The Big Picture today.<\/p>\n","protected":false},"author":290,"featured_media":20049,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":0,"footnotes":""},"categories":[21],"tags":[1698,4821,5502,5723],"class_list":["post-20048","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-top-stories","tag-alix-wiseman","tag-ed-galton","tag-monica-candiani","tag-tv-kids-festival","pmpro-has-access"],"yoast_head":"\n