The
Changing Business of Acquisitions in Russia
By Elena Sunbeam
The Russian television
landscape has been completely transformed since the 1991 collapse of the
Soviet Union. These days television is the primary news and entertainment
source for the majority of the countrys 130 million residents. The
number of television channels has sharply increased: approximately 100
State and 1,100 private channels currently operate in Russia. Interestingly,
Russian stations that screen an excessive amount of foreign (particularly
U.S.) programming to terrestrial or cable and satellite audiences usually
only succeed if there are no market competitors specializing in local programming.
Native Russian programming is currently favored in all territories across
the former Soviet Union.
In January, VideoAge asked
a number of key executives from leading Russian channels to detail their
impressions of current Russian acquisition politics.
Anatoly Maximov,
ORT - Public Russian Television, director of Cinema Broadcasting and Cinema
Production:
The breakthrough
event of this past season was the full-scale development of domestic drama
series/miniseries production, something weve lacked for the past decade.
The great traditions of Russian/Soviet cinema have been the major influence
on current mainstream television product. The staggering success of domestically-produced
TV product (with audience shares of up to 50 percent) has inevitably diminished
the presence of American drama series. Instead, we aim to buy recognizable
theatrical movies. Today, the new game in town is licensing game shows. We
have licensed such world-known formats as Survivor, Who Wants To
Be a Millionaire, Weakest Link, and Russian Roulette. We
finance our product ourselves. Domestic investments are rare due to our countrys
undeveloped TV market. We welcome foreign investments and look forward to discussing
potential co-productions with foreign partners since we are convinced that
our product is up to international standards. Traditionally, we participate
in the major TV markets (NATPE, MIP-TV, L.A. Screenings and MIPCOM) where we
close deals discussed during the year. For us, NATPE is a great opportunity
to sign one or two feature deals with American independent producers. We keep
product from more than 100 companies under license. Even the smallest deals
contribute to our success.
Dmitry Nesterov,
head of Acquisitions, RTR, Russian Television & Radio:
Like all other
Russian channels, growing national product is diminishing the presence of American
product. Several years ago we broadcast seven American films a week. Now were
down to only two, mainly blockbusters. We air very few foreign series. Its
very difficult to find a good foreign series for our audience; however, if we
find a good one, well will buy it. The average American product is not
successful on Russian television. This is due in part to the history of Russian
television we had very few channels and little foreign product on TV until
1993. Meanwhile, during the last few years, foreign cinema has deluged Russian
TV screens with more than 20 foreign films a week. Viewers were saturated with
foreign product. Todays Russian viewers are more interested in what is
going on domestically, and they crave product unique to Russian life. While we
work with American partners (including Paramount, Warner Bros., and Columbia)
and are always on the lookout for a great American film, our newest strategy
is to increase the national product on our channels schedule.
Alexander Oleynikov,
general producer, NTV:
Our politics
of acquisition are similar to other channels. Acquisition of foreign
product is decreasing while local product is on the upswing. Blockbusters and
good films are the only foreign products that are successful on our channel.
Currently, Russian series are replacing foreign series. At present, we broadcast
two foreign series and three Russian series daily. We will, however, continue
to work with American partners. We have a big contract with Warner. Bros.,
and we are quite content with the quality of their product. In my opinion,
there are three factors that dictate a products potential success: its
cost, its viewership shares, and the cost of advertising. We strive to buy
theatrical films and movies licensed on video because these products tend to
be very successful. The theatrical release of any film guarantees it will succeed
on television. We are planning to attend NATPE. Our main goals are to make
contacts with key majors, and to acquire films, series, and foreign formats
for our channel. The problems with acquiring American product pertain to the
peculiarities of American culture. American culture is different from European
and Asian culture in that it assumes certain universal norms of understanding.
Qualified American product must be understood by audiences everywhere, in Singapore,
Russia, Belgium, etc.
Sergey Fiks,
Film Department director, NTV Plus:
We desire quality
product regardless of its origin. In the past, we traditionally purchased American
films to attract viewers to our channel. But now we are seeing an abrupt reduction
in interest in American product. Meanwhile, national product featuring our
stars and our reality is becoming much more popular. Our goal is to create
our own libraries of programs. ORT, RTR and TV6 have their own libraries of
series and films, NTV doesnt as of yet. We plan to fill our own libraries
with national product and invest in domestic production. Currently, 50 percent
of our primetime schedule is American product; 50 percent is European and Russian.
Alexandra Vinogradova,
program manager, TV6:
Currently our
intent is to buy quality product from foreign partners. After our channel changed
its top management, our schedule and viewership changed. Our target audience
is businessmen and intellectuals. We broadcast news every two hours. Our specific
format coupled with quality product enables us to be tough and competitive,
which is very important for an independent national channel. In the past, we
broadcast foreign feature films and series. However, for the last two or three
years, we have not been able to find series abroad that could effectively compete
with our domestic product. When choosing American product, we concentrate on
films with recognizable stars and genres. Interest in national product is currently
very high and we want to invest in our own production and form our own library
of programs.
In January, TV6 shuttered after the Media Ministry revoked its broadcast license.
Igor Bortnikov,
chief editor, CENTER TV:
We continue
our relationships with our American partners: Fox, Warner Bros. and Paramount.
Films from these companies score high ratings on our channel. But recently
the number of successful foreign films has dropped. The expectations of our
American partners do not match the realities of our Russian audience. We prefer
the creation of national product over the acquisition of big foreign packages
since we cant be sure that our audience will relate to the foreign product.
National product is currently favored on our schedule with European product
right behind it. Last year, we had some good Hallmark product on our channel.
We also maintain our relationships with Russian distributors representing American
companies, Miramax in particular. Crocodile Dundee was one of the most
successful American films broadcast on our channel. Good American films cost
big money. Meanwhile, we could channel that money into the creation of national
product. At NATPE, we plan to visit the majors and buy good packages of movies
assuming the cost is not too high.
Anastasia Bialobzheskaya,
program manager, CTC:
Our channel
was founded by StoryFirst Communications (USA). We were one of first Russian
channels to position our own programming concepts. Our success began with the
series Beverly Hills 90210. Now we are considered the number one entertainment
channel. One of our biggest advantages is bright, original programming. We
concentrate on acquiring American films and adventures series. Russian viewers
will watch good television product. Since American products and actors are
well-known, they are easier to promote than European products. American series
and feature films are a big success on our channel. Currently, we are also
concentrating on producing our own series including comedies, game shows, and
drama series. Despite the fact that we continue to purchase product from the
bigger studios, our present goal is to increase our share of Russian product
by developing our own shows.
Boris Khanov,
head of Film Broadcasting, M1, First Moscow Channel:
American product
currently dominates our schedule. Our structure is very different than other
channels. Our revenues cover all our expenses including production and program
acquisition expenditures. We have our own strategy. We prefer American movies
to European films due to ratings differentials. American stars appear to be
stronger than European celebrities. When Russian viewers watch TV, they crave
recognizable scenarios and stars.
Andrei Dementiev,
chief producer of Film Broadcasting, REN TV Channel:
Russian TV
currently favors local programming. There are no American series successfully
competing with Russian series. This is not a question of quality. The quality
of American series is actually better. Its strictly a question of what
our viewers want to see. Our audience wants to watch national product: our
life, our realities, and our stars. That is why we aim to reduce our acquisition
of American series and invest in our own productions. We broadcast two Russian
series daily and one American series twice a week. In the future, we will cut
back the broadcast of American series to once a week. However, in terms of
feature films, 90 percent are of American origin. We want to buy A movies
with big stars. Our American partners are Fox, Warner Bros., Universal, and
Paramount. The X-Files and The Simpsons were the most popular
series broadcast on our channel.
Elena
Sunbeam is an author and organizer with an M.A. in linguistics and intercultural
communications. Educated in Moscows Academy of Theatre Arts and Moscow
Linguistic University, Sunbeam came to the TV business in 1997. She founded
Planet Sunbeam in 2000.