Water Cooler

By Dom Serafini

Let’s make a case for a Hollywood Standard Time. The world needs a more modern way to reference time. In 1884, 41 delegates from 25 nations gathered in Washington D.C. for the  International Meridian Conference to determine from where time and space should be measured.
     England won the vote with its Greenwich Meridian Time (GMT), aka Greenwich Mean Time (or Zulu Time in the military phonetics). As a point of reference, the Conference chose the Royal Observatory in Greenwich, London, which was assigned the imaginary longitudinal line of 0º 0’ 0”.
     Today, 126 years later, GMT has, for all practical purposes, been replaced by the HMT, aka Hollywood Mean Time. Since the word “mean” has a derogatory meaning in Hollywood, we’ll refer to it as HST or, Hollywood Standard Time, not to be confused with the “standard” definition: something that Hollywood insists on preserving.
     Therefore, today, the new longitude for the world to use as reference is 80º 09’ W. This self-importance is the reason U.S. studios are often referred to as the 809 pound gorillas. In addition, the Hollywood longitude may also be considered an “imaginary line,” since for many people, Hollywood is not “real.”
     Now, if one is not part of the international entertainment industry, it is reasonable to ask, “Why should Hollywood be the new GMT?” Well, it’s difficult to say, but the reality is that the whole world revolves around Hollywood. In the U.S. outside California, one cannot call Europe in the morning (which is afternoon over there), because executives go to their offices starting around when Hollywood opens for business. To their credit, Hollywood executives tend to feel sorry for the Europeans and thus open rather early or take calls from their homes (while exercising) or in their cars (when not listening to National Public Radio).
     From New York, for example, it’s impossible to get someone on the phone in Miami, Florida or Latin America before 12:30 PM, since Latin companies operate on HST.
     To accommodate Hollywood, film and TV executives in Australia go to work very early, because after their morning, Hollywood closes and then there is nothing for them to do in the office.
     Because of HST, newspapers in Hollywood are able to report international news a day in advance of their East Coast counterparts; therefore, they tend to look more informed then anyone else.  Even the Oscars telecast is based on HST. While California can enjoy the Academy Awards TV show during dinnertime, the rest of the world either has to stay awake past midnight or set the alarm clock for 4 AM if in Europe, to see it through to the end.
     Hollywood did not invent the expression “time is money.” Actually, it was Benjamin Franklin who coined it in 1748, and he was on the East Coast. But it took a Hollywood actor, Frank Dane, to refine it: “Time is money, especially when you are talking to your lawyer or buying commercial time.”
     Time in Hollywood is never free. To have “free time,” one has to swing by nearby San Diego.
     In Hollywood, time is appreciated more than any place else, and expressions like “big-time producer” are thrown around with abandon. Hollywood can even make “time” sentimental, as in “once upon a time.”
     Indeed, nothing is more valued in Hollywood than time. When movies aren’t completed on time, companies go bust, like what Heaven’s Gate did for United Artists in 1980 and Ishtar almost did for Columbia in 1987.
     Time is also an expression of fun –– something that Hollywood is great at generating –– as in “Having the time of my life” or “Having a good time.”
     Nowadays, when one talks about “time,” any kind of time, Hollywood always comes to mind. So at this NATPE, let’s get Hollywood’s attention back by laying down the foundation for a new International Meridian Conference where HST becomes the new GMT.
     Besides, if Hollywood was to become the new Standard Time, the merchandising rights alone will create a whole new set of billionaires.

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By Erin Somers

On June 11, 2009, the U.S. became among the first 10 countries to complete the transition to digital broadcasting television (DTV). A handful of European countries beat it to the punch by three years, with Luxembourg and the Netherlands switching over as early as 2006, and Finland, Andorra, Sweden, Norway and Switzerland following suit in 2007. Unsurprisingly, the change in the U.S. was a magnet for controversy, with both broadcasters and the U.S. authority, the Federal Communications Commission (FCC), dragging their heels over deadlines and consumers in an uproar over the prospect of their terrestrial channels going black. Congress got in on the game by delaying the whole process when its digital conversion voucher program (that subsidized the digital-to-analog decoders) ran out of money, pushing back the target date from the original February 17 until mid-June.
             The U.S. government had allocated $1.34 billion to distribute coupons for converter boxes to U.S. citizens. At $40 a voucher, this sum seemed adequate to cover the expenses of those who weren’t quite ready to trade in their old analog TVs. However, with analog TVs in the U.S. numbering roughly 70 million, the program came up short.
Complications notwithstanding, the switch has been in full effect for about seven months, but the turbulence is far from over. Once again, U.S. broadcasters and the FCC are locking horns. This time, it’s over unused extra channels in the digital spectrum.
             Since the June transition, new intermediate channels have been made available for broadcast. Because of the nature of the digital spectrum, broadcasters are able to “multi-cast,” or broadcast different content from a few channels at once. These channels are known in the industry as “dot channels” for their numerical designations (7.2, 7.3, etc.), and have created airtime where once there was none. With each core channel comes a total four dot channels for standard television (hi-definition takes most of the spectrum), and broadcasters, faced with an unprecedented amount of airtime, have floundered for content to fill them (see related editorial in the October 2009 issue of VideoAge).
             For high-powered stations, meaning stations with a powerful signal that reaches a larger coverage area, the switch to a multi-cast format was mandatory. But for low-powered stations, the switch was optional, and came at the broadcaster’s own expense.
             Lately, the FCC has been claiming that broadcasters — high-powered and low-powered alike — are making poor (or no) use of the dot channels, and has begun threatening to take them back all together. The FCC argues that multi-casting was supposed to be one of the greatest advantages of DTV, yet it is largely neglected by broadcasters. The issue is complicated by the financial interests of the FCC and the newness of the situation in general.
             Tune in to one of the dot channels today, and one might find foreign language programming, a community oriented public access type show or, as is perhaps most prevalent, a rerun of an old movie or series. Over-the-air channels still reach about 12 million viewers in the U.S., which is why, contends the FCC, they should not be wasted on old episodes of Mister Ed and vintage movies.
             FCC commissioner Michael Copps, who chaired the DTV transition, has been vocal about the channels being squandered on filler material. “If the spectrum is going to be used just for home shopping and Doppler radar,” he said in a recent interview, “It’s falling short of the purpose that it could be serving.” Making good use of multi-cast has been Copps’ goal since the early 2000s, when the DTV transition was still the pie in the sky. “I have always thought that a properly fashioned [multi-cast regime] would redound very much to the interest of localism and diversity and competition.” He said. With DTV up and running, Copps maintains his dedication to making sure that, as he put it, “the enhanced digital capacity broadcasters have available to them [goes to] good and solid public interest use.”

Editors’ note: VideoAge will return to the topic of dot channels in one of its upcoming NATPE Dailies, in which broadcasters get a chance to respond to the FCC’s criticisms.

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By Erin Somers

To weigh in on where the Latins stand at this year’s NATPE and what areas of the region are poised to take off in 2010, VideoAge called on:Jose Antonio Espinal, COO of brand new Miami, Florida-based Somos Distribution; Raphael Correa Netto, head of International Sales for Sao Paulo, Brazil-based Globo TV International; and Susan Bender, president and CEO of New York-based Bender Media Services.

VAI: How is this NATPE shaping up for Somos Distribution?

Jose Antonio Espinal: This NATPE is very important to us. We are just launching the company, and this is an event where we will meet our friends and many people with whom we have had great relationships over the years. We hope to show them what we can do and demonstrate the business philosophy of the company, as well as its products and standards of service.

That being said, we have a great catalog of movies, series, animation and a variety ofprograms of high quality from the companies we represent in Latin America and Europe. We will also be showing our first original production.

VAI: How is this NATPE shaping up for Globo TV International?

Raphael Correa Netto: We always have big plans for NATPE. It’s a key market for us because it’s like the year’s kickoff game. All our Latin American partners attend NATPE, and it’s the first and best platform for meeting with them. We’re bringing a brand new catalog this year, which we’ll present at a breakfast screening on Monday the 25th.

VAI: How is this NATPE shaping up for Bender Media Services?

Susan Bender: We are always very excited about NATPE, as so many of our clients are in attendance.  Our “dance card” is very full, so it looks as though it will be a very good convention for our company.

VAI: Do you expect a lot of buyers to be in attendance?

JAE: We expect this NATPE to be on the positive side of business. The economy is improving, which should make a difference in the market’s attendance and the disposition of the buyers. It’s the ideal time for us to be present and premiere Somos Distribution.

RCN: I think we’re going to have more or less the same attendance that we’ve seen in recent years, despite the fact that the market is going through a structural change. It seems like the market continues to grow from year to year, even though the economy has been bad. Regardless of attendance, NATPE always fulfills our expectations. The quality of networking we accomplish is more important to us than the attendance figures.

SB: In our case, our client base remains practically the same as last year.

VAI: Are you happy about the hotel suite format of the market?

JAE: The suite format has worked for everybody in recent years and is more efficient in terms of cost for many participants. We know the organizers are aware of all the pros and cons of the format and do their best. We have not seen any problems in the years that this option has been made available, and in fact, it’s being used more and more by all companies, so we have to assume it’s been successful.

RCN: To be honest, it doesn’t effect us very much. Globo has been in the suites for many years, so it’s more of a continuation for us. At the end of the day, I think the change will make the market more concentrated.

SB: Bender Media Services has always been a suite exhibitor. In our opinion, having everything in the Suites will expedite the needs of our clients.

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

JAE: The TV business is always tied to the economy, since advertising revenue is the key driver in the market. As the economy moves out of the recession and businesses start spending more in media, the effect spills over to the TV business, which is what we expect this year. Positive signs were already present at the last events of 2009.

RCN: The market is bouncing back from 2009. Last year at this time, we didn’t know what to expect. No one had a clue as to what the crisis would do to the industry, so it caused a lot of tension. Now, a year has passed, and we know where we are. The television environment around the world has been able to react positively to the economic downturn. We’ve been able to manage a repositioning in the new economic environment without suffering too great of a loss.

SB: In my view, the TV business is ever changing!  I began my career 35 years ago, selling product in Latin America, and over the years there has been a “revolution” in the needs of our clients and products they are looking for.

VAE: What is your company’s primary growth area?

JAE: As a new company, all areas have the potential for growth. We have been very careful in selecting attractive programming from companies that have been successful in their markets, but need support in penetrating such a complex territory as Latin America. We have been in this business for more than 25 years and know the players and the ins and outs of the industry and its audiences. We hope to be helpful to our partners on both sides: producers as well as channels.

RCN: International business has been growing in the last few years. Additionally, we expect tremendous growth in the Brazilian advertising sector this year, specifically in the free TV industry.

SB: Bender Media Services currently continues to license predominately to traditional TV, Pay/Cable, and DVD.  We are currently pursuing ancillary sales to cruise ships, airlines, mobile phones, etc.

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

JAE: We are very optimistic about several countries in Latin America: Colombia, Peru, Ecuador, Argentina and several Central American countries. We’re also looking to the increasing importance of the Hispanic market in North America, where we have great experience with all the players and the different distribution platforms.

RCN: Latin America as a whole has suffered from advertising investments. Mexico has suffered a lot. But the Latin American economy has been able to hold on. Latin America as a region will improve when it gains more maturity in the political and regulatory areas.

SB: Our company continues to license to all of the Pan-Regional Pay/Cable Channels, as well as the Free TV channels throughout Latin America.

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With NATPE 2010 less than three weeks away, buyers and sellers alike have their fingers crossed that a successful market will set the tone for the year to come. VideoAge spoke to Irv Holender from Los Angeles, principal director of Toronto-based Fremantle Corp., and Stamford, Connecticut-based Thomas Sitrin, director, International TV and Affiliate Relations of World Wrestling Entertainment (WWE). We asked how they expect this year’s market to match up against years’ past and what they see as Latin America’s primary growth areas.

VideoAge International: How is NATPE shaping up for Fremantle Corp.?

Irv Holender: The markets have gotten weaker and weaker over the last few years. Our feeling is that by expanding the amount of co-productions we have going on around the world, we will continually produce good family product. So that’s our focus for NATPE this year.

VAI: How is NATPE shaping up for WWE?

Thomas Sitrin: We are looking forward to NATPE. It’s a great way to usher in the New Year, and allows us to connect with our international affiliates and prospective broadcasters, as well as prioritize our collective agendas for 2010 and beyond. 

VAI: Do you expect more buyers than last year?

IH: From the preliminary list I’ve seen, there will be less than last year. I think the reason for that is a combination of the economy and the direction of the industry. More and more people are asking for scripted programming.

TS: With NAPTE being the inaugural trade show each year, we anticipate a healthy attendance by international buyers. Last year, most businesses and industries underwent a diligent operational examination, and the reactionary measures taken drastically impacted how business was conducted across the board. With the year behind us, there’s an increased level of comfort amongst all and this will undoubtedly restore confidence in the way we do business once again.

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

IH: We’ve been involved with suites for almost 30 years at AFM, so we’re used to it. I still like the booth concept, but unfortunately the majors turned it down. It’s becoming more of an appointment market rather than people walking in on you. But, NATPE has suffered more because the majors are not supporting it, than because of the shift to suites.

TS: WWE has been exhibiting in the suites for the past several NATPE’s and we believe it’s a great alternative to the floor.

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

IH: We’ve seen an improvement with family product, especially in the international market. With the consolidation of networks, we find that the need is for specific programming and product that has continuity.

TS: It’s still too early to tell, however, the TV business is a living organism, perpetually evolving and adapting to the changing environment. Last year, there were downturns in many areas of TV, but there was an immense progression in digital media connectivity (including analog switch offs) and platform penetration with new IPTV operations and channel availability. The increased viability of digital and mobile platforms has proven to be a brilliant balance to the temporarily deflated global economy.

VAI: What is your company’s growth area?

IH: Right now our growth areas are co-productions and family shows like The New Adventures of Black Beauty, as well as prime-time series. This year we’re also celebrating the 40th  anniversary of All My Children. And shows like Snapped and Look Alike have been renewed and picked up for additional seasons.

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

IH: I think overall, the Latin market will be improving as digital platforms mature. You’re going to see more and more regional network deals being done. From our point of view, the VOD sector, meaning distributing the back catalogs digitally, seems to be the fastest growing area in Latin America.

TS: We have broadcast partners in Mexico (Televisa and TV Azteca), all of Central America and all Spanish speaking countries in South America. We are looking forward to improving our market stature mostly in South America, with an emphasis on Argentina, Brazil, Chile, Ecuador and Peru.

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