Water Cooler

As 2009 winds down, TV buyers are focusing on the New Year and the new programming budgets that will come with it, while sellers are wrestling with sales projections and market preparations. NATPE kicks off as the first market of the year, held January 25-27 at Las Vegas, Nevada’s Mandalay Bay resort. This edition of the convention marks NATPE’s last year in Vegas before it moves to Miami in 2011. In its final Vegas iteration, NATPE has switched from a convention floor format to a suite-based event, a change that many attendees see as a good thing. VideoAge caught up with Gary Lico, president and CEO of Norwalk, Connecticut-based Cableready Corp. and Duccio Donati, senior vice president of Los Angeles-based Comcast International Media Group to talk about whether NATPE’s shift to suites is a welcome change, as well as their expectations for the market’s last hurrah in Sin City.

VAI: How is NATPE shaping up for Cableready?

Gary Lico: For us, NATPE is always about seeing people, and that’s our major goal again this year. We’re also interested in meeting with producers, and there’s a ton of them there.

VAI: How is NATPE shaping up for Comcast International Media Group?

Duccio Donati: Things look okay. On the Latin side, it’s still rather well attended. On the rest of the world side, meaning Europe and Asia, it’s a little spotty with no real discernable attendance trend. But, we have some exciting stuff coming up, including definite expansion in the digital realm and quite a few big reality shows that will help us build a better year than 2009.

VAI: Do you expect more buyers than last year?

GL: To be honest, I don’t know. Last year was so strange. Things were just starting to happen with the recession, and business was just starting to decline. This year, business is getting a little better again. Plus, because of the switchover to digital, stations need programming to fill those extra channels. Regardless, the focus for us is on meeting with producers and cable subscribers.

DD: I think there’s probably going to be fewer buyers than last year. Latin America will still probably have a strong presence, but I expect a small drop off in the smaller territories in region. European attendance will probably decline.

VAI: Are you happy about the change from the convention format of past years to the hotel suites?

GL: My thoughts have always been, “Whatever makes it easiest for the buyers.” The move to the suites this year means a shorter walk from the hotels, which is much more convenient. NATPE organizers have always been good about hearing what attendees want. This year, they heard them with the suites, and they heard them loud and clear with next year’s move to Miami, which people are excited about.

DD: The buyers will be happy, which is what’s important. It was getting really hard for the buyers to get to and from the convention floor with the layout in Vegas being so huge. Overall, it will give a more intimate feel to the market.

VAI: In your view, is the TV business improving?

GL: It’s always two steps forward and one step back. Where the recession is concerned, I don’t think anything is bouncing back. Internet ad revenue is not where is should be yet, so there’s a lot of room for growth there. Overall though, the TV industry will never be what it once was because there are too few companies out there these days.

DD: I think it’s definitely recovering a bit from 2009. Like every industry, the first two quarters of 2009 caused a lot of panic and the spending stopped. You’re going to see the spending come back a little. But overall, there are other challenges for the TV industry apart from the economy, such as fragmentation of audiences and the future of digital media. But 2010 should be a better year.

VAI: What is your company’s growth area?

GL: Original product development. For the first time, we’re taking matters into our own hands and producing our own content where as we used to be buying it from other people.

DD: The channels continue to grow. On the Style side, we’re looking to grow the distribution of the Style Network. Where formats are concerned, we’re looking to expand into Latin America. There’s also a lot of growth in licensing. There is a lot more product coming through for Style, particularly for Latin America on a pan-regional basis. With respect to digital, you’ll see expansion as well.

VAI: Which Latin territory do you see improving or increasing?

GL: Pan-regional deals are really big right now. And Brazil, without a doubt, will be a growing region leading up to the Olympics in 2012.

DD: There is definitely growth in the pan-regional space for us. E! already has a presence there and there are a lot of opportunities for Style licensing in that area, because women’s lifestyle products are enjoying so much growth at the moment.

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Even something as relentless as the Water Cooler is taking a break to wish everyone happy holidays. To those who celebrate the holidays for religious purposes and those who simply go along for the ride, we wish a great time, your needed rest, some distraction away from rating points, yearly projections, market preparations, sales estimates and all the other stressful things you deal with day to day, like annoying press, for instance.

Most of all, we wish you all a fantastic 2010! This year that is ending was a tough one, but the industry managed to ride the downturn rather well. We all had a great L.A. Screenings and a successful MIPCOM. Even second-tier TV trade shows fared better than expected.

We’ll be starting the year at NATPE, followed shortly thereafter by some smaller markets in New York City, Dakar and Bologna. True to its Las Vegas location, NATPE may turn out to be a winner, but as always, it’s a crapshoot. We hope for the better because it’s always good to start the year well.

Our regular Water Cooler will return next week. Meanwhile, we’d like to take this opportunity to thank our readers, especially the TV program buyers who make VideoAge look so good in the eyes of its advertisers. Also a heartfelt thanks to our supporters, contributors, staff and suppliers.

Happy holidays and Happy New Year!

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By Dom Serafini

It’s pronounced Globalive, but for some Canadians it is written Murdoch! This seems to be the root of the fight between the Canadian government and the regulatory telecommunication agency, CRTC over the proposed relaxation of the country’s foreign ownership rule.

The case concerns wireless communications, but it has greater implications.

First, some background. Canada’s wireless market is dominated (like a cartel) by three companies; therefore, the conservative government putatively wants to break this de-facto cartel by allowing Globalive into the marketplace, presumably for more competition. The problem is that even though Globalive is a Canadian company, it is controlled by foreign interests and thus considered a non-Canadian company. Globalive relies on debt financing and technology from Egyptian wireless giant Orascom Telecom.

Reportedly, the CRTC is concerned about an agreement that allows Globalive’s Canadian chairman to sell his shares at a guaranteed minimum price, even if the company fails. To the CRTC, this reads as a guaranteed payout and implies that Orascom can oust the chairman at any time.

And so, regulators and the opposition are up in arms. “You can interpret what’s happening with Globalive as essentially changing foreign ownership rules through the back door,” complained media critic Marc Garneau to The Globe and Mail newspaper.

“Now they’ve opened the door. So what’s next? It opens the door to companies picking apart telecom and broadcasting,” Democratic Party member of Parliament, Charlie Angus is quoted as saying.

This is the crux of the matter: assuring protection of the television broadcasting industry in solid Canadian hands. Examples abound. Television groups that own unprofitable television stations are selling them to management and employees of the local stations for just C$1 each, simply to get rid of them, since they’re unable to approach potential foreign buyers for even a partnership.

Another bone of contention between the Canadian government and the telecommunications regulators is the government interpretation of the Telecommunications Act concerning the foreign ownership rule that should be enforced “when possible.” Meaning, not always.

In effect, this government action allows for a broad interpretation of Canadian telecom laws, and effectively renders the CRTC irrelevant.

Considering the sad financial state of Canadian broadcasting, politicians and the CRTC are said to be worried that allowing any loopholes within the foreign ownership rule will allow Rupert Murdoch entry to the Canadian TV market like Napoleon the Conqueror.

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By Dom Serafini

During a one-week, 35,000 km journey that included stops in France, Germany, Singapore, Italy and New York City, I had time to think about an ideal airline service for me and the thousands of TV executives who criss-cross the globe. Considering the ordeal I experienced on the Air France’s new superjet A380 on my way to the German Screenings (as documented in last week’s Water Cooler).

First of all, airlines should recognize that airports are no longer consumer friendly environments. Indeed, travelers nowadays can fully consider airports hostile, inhospitable places. In order to help alleviate travelers airports’ discomfort, airlines should have decent sit-down, full-service restaurants and not just fast-food chains. It is also important that airport restaurants and convenient stores be open at all hours and, in particular, well before the first planes are due to take off. Plus, these facilities should be inside the terminal and not in the check-in area before passengers rush through the time-consuming and disquieting security check process.

Secondly, allow passengers to disembark using multiple jetways. It’s ridiculous having to wait up to 20 minutes just to get off the plane, especially considering tightly-timed connection flights.

Thirdly, increase the number of direct flights. Avoiding U.S. hubs like Dallas-Ft.Worth, Atlanta, Cincinnati, Houston, etc., would be greatly appreciated by all.

Fourthly, make economy seats more spacious (seat pitch and legroom), from the current average of 44.3 cm wide and 81.2 cm long, to at least 90 cm deep.

Fifth. Make obese people purchase two economy seats at the price of one-and a half fare. It’s a nightmare traveling while seated next to someone who basically traps you on the seat, without any possibility of movement.

Sixth. Offer the same fare for recurrent customers (family or company) who take at least 10 trips a year with the same airline. Eliminating the fluctuating costs would make people fly more, assure loyalty to an airline and offer better budgeting to all concerned.

Seventh. Install Wi-Fi service and electrical plugs (power ports) on board.

Eight. Make connection gate information available on the on board TV monitors.

Nine. If the plane is late, give new boarding passes while on the plane to those who will miss ticketed or scheduled connections, before landing (after all the only thing needed is a printer!).

Ten. If the aircraft has technical problems, get passengers rescheduled after one hour. If rescheduling cannot be done, find nearby accommodations. It’s unfair to leave passengers on the aircraft for more than one hour, without giving the option of taking another flight or resting from the ongoing ordeal.

These ten recommendations are not necessarily listed in order of importance, but are definitely important if not necessary for all.

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By Dom Serafini

And on the fifth day it failed.

What was meant to be a memorable seven-hour flight to Munich via Paris became a 14-hour ordeal on the new Air France A380. My journey to the German Screenings, point-to-point, became a 19-hour missed connection nightmare.

Billed as one of the world’s wonders, the A380 began its Paris-to-New York (and back) service five days prior to my trip, on November 23. Able to hold 538 passengers, it is the world’s largest plane. For the time being, Air France has just one in operation, departing from JFK airport’s Terminal One.

To be among the first on board such a plane was such an exciting prospect that I called Air France’s press office seeking a tour of the aircraft for this week’s Water Cooler report. Cedric Leurquin from the airline’s Paris office directed us to Karen Gillo, who is based in the New York press office. Gillo essentially ignored our request. Leurquin then suggested we check out the A380 press kit available online.

It’s understandable that when a company has what it perceives to be a technological wonder, its press people may become arrogant if not uncharacteristically incompetent. And so, what could have been a mere technical failure has also become a public relations disaster.

At JFK’s Terminal One, the A380’s flight AF007 can only be accommodated at Gate Five, where two jetways have been specially constructed - one apiece for the lower and upper decks of the aircraft.

Boarding began 45 minutes before departure time. Considering the plane was 67 percent booked, the procedure went smoothly. Our concern, however, was not boarding time but rather deplaning, since our original connecting flight to Munich left Paris less than one hour after our scheduled arrival. Getting from arrival terminal 2E to departing terminal 2D at Charles De Gaulle (CDG) Airport is a time-consuming task on its own, even more so considering the time necessary to get more than 360 people off of the A380.

Deplaning turned out to be the least of our problems. After just 45 minutes of smooth flying, the captain announced that the plane must return to JFK due to a malfunction of one of the three navigation instruments on board. At that time, the flight attendants had begun serving beverages, a service that was immediately halted. Passengers were left without food or alcoholic drinks for the remainder of the time on board. Needless to say, I was bound to miss my connection in Paris.

Considering the ordeal, onboard personnel did a good job keeping passengers calm (only three people decided to disembark). The crew was well-mannered and aware of the historical importance of being on this particular aircraft, which may be compared to the first 747 flight or even the Concord. They had begun training for the experience in September.

But what about the plane itself, this wonder of modern technology? Well, the seats in economy class (which make up 83 percent of the plane) are just as narrow as those on Delta, which is to say, quite uncomfortable. Perhaps it would have been better for the passengers’ comfort if the carrier had eliminated one row (10 seats) to allow for more spacious seating.

Incredibly, the A380 doesn’t offer Wi-Fi service, which is now available on significantly older planes. The on-demand TV and movie selection was satisfactory, but the TV news programs are not live like on many other flights. Sadly, we cannot comment on the food or alcoholic drinks’ quality, since there were none to be savored.

Once at its cruising altitude, the A380’s speed reached 1,070 km/h, which is slightly faster than most other intercontinental planes, but it’s possible that tail wind helped to achieve that speed (the in-flight monitor did not indicate the tail wind’s force).

At 73 meters long, the A380 is about the same length as the Boeing 777 and three meters longer than a 747 (the latter of which can hold 477 passengers). However, the A380, manufactured by Europe’s Airbus, is much wider and higher and boasts a greater wingspan than the aforementioned planes.

While physically speaking the A380 is quite the marvel, at this stage and in our view, it is not advisable for those travelers with tight connections and tight arrival schedules.

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