LAS VEGAS – While the makers and owners of U.S. TV shows want to protect the lucrative business models they have built over the years on broadcast and cable television, they are happy to have all of the new over-the-top players as new customers in the market.
That said though, broadcast networks remain the biggest whale in the ocean to feed – and no change is yet seen on the horizon. “Networks have always – and continue to be – the biggest, best way to create brands,” said Ira Bernstein, co-president of Debmar-Mercury (which syndicates shows like the Tyler Perry franchises and new daytime show featuring Wendy Williams) on a panel discussing the shift of programming from traditional platforms to other online or on demand platforms.
Added CBS Television Distribution president John Nogawski: “I’m excited about new customers,” adding that when it is right for a certain show, its rights will be sold to online distributors but his business is about growth, which is “good for the overall stock price,” and for the foreseeable future that will come from good ’ol broadcast TV.
While many believe all video is headed to ’net distribution at light speed and being late to the party is a path to destruction, Nogawski, Bernstein and fellow panelist Ken Werner, president of domestic TV distribution for Warner Bros. vehemently disputed that because their expensive, popular content, is not a commodity like so much other web content has become. “Out of respect for existing clients… we’ve looked at (selling to online VOD suppliers) it in a very slow and methodical way,” said Werner (Warner Bros. and CBS, for example, have not made their content available to Hulu.)
“We have to be careful how we move forward so we don’t kill the golden goose,” Werner added. There is “huge value to the ecosystem we have created that makes these kinds of shows.” (That said, the WB exec added later that barriers to entry for anyone with a great idea have never been lower, thanks to our interconnected world, and that his company has staff that scours the net looking for those next great TV show ideas.)
While the resale value is much lower in syndication for serialized dramas due to their lengthy, complicated storylines, placing those online is thought to be valuable since viewers can catch up on missed episodes and even come to love a series after a season is over. But that sort of thing doesn’t work for the business plans of sitcoms where viewers don’t have to follow a single storyline all season long – and because of that, such series’ can be sold and resold to broadcasters and cable channels for ages. “So, we’re not going to do that with Big Bang Theory,” said Werner. That show is available only on linear TV and through those broadcasting clients web sites and even then, rarely more than a single episode or two. Warner does sell the show to iTunes, but customers there have to pay $3.50 per episode.
“We don’t look at our content as being a commodity,” added Werner who also stressed high quality content is still pretty scarce. “What our companies produce is very hard to and requires a lot of capital and a lot of talent.”
Even if the likes of Hulu or Netflix came to the negotiating table with a big cheque, they aren’t likely to come away with anything but deep library content at this point, added the executives, since no one is interested in breaking the cycles of first runs, repeats, broadcast and cable syndication, which pays well for these integrated media companies.
However, allowed Nogawski, “they’re essentially just another buyer and if they want to pay top dollar, they will move higher in the food chain.”
He also added his company would make original programming for Netflix, if the company wanted to expand that. “If there’s a way to make money, we’re going to do it,” explained Nogawski.
“All of our jobs are to make as much money as we can for the product we are selling,” added Werner.
Cartt.ca editor and publisher Greg O’Brien is in Las Vegas this week covering the 2012 NAB Show.
