Cable Chiefs: Keep Your Heads Up
Recession Aside, Panelists Sanguine About Earnings, Content Ownership, Targeted Brands
Melissa Grego -- Multichannel News, 3/4/2009 9:43:41 PM
Los Angeles — Los Angeles -- A group of top cable network executives assembled here Wednesday, exuding optimism in the face of the ongoing recession.
"I go to bed every night feeling like we're going to figure it out," said Doug Herzog, president of MTV Network Entertainment Group and a panelist at The Hollywood Radio and Television Society's "Cable Chiefs Newsmaker Luncheon" at the Hyatt Regency Century Plaza Hotel.
Even as the economy continues to careen and technology and consumer habits change in rapid-fire style, the panelists said cable networks remain in one of the best positions in the TV business. Cable's dual-revenue stream model of advertising and carriage fees, of course, is fortifying the sector.
However, the ability to exploit branded content -- particularly that the networks own -- across various technologies, platforms and partnerships is another big reason to have hope, according to the panelists.
Henry Schleiff, president andCEO of Hallmark Channel-owner Crown Media Holdings, pointed to recent conglomerate earnings reports, reflecting cable networks' areas of strength among media company portfolios.
"It's one thing that's working," he said, though "maybe they're not doing as well as they should be."
With content becoming easier to watch on-demand, content producers hold more cards, said panelist Jeff Shell, president of Comcast Programming Group: "The business models will follow that."
Particularly with strong branding, "you can exploit your content past television," noted Rich Ross, President of Disney Channels Worldwide, "but you do have to get in at the beginning."
Content ownership is key, Ross said, adding that Disney Channel owns 95% of its content. "But if people don't know who makes it and it's free, it doesn't just go off TV, it goes into thin air," he noted..
In the best-case scenario, brand leaders are able to create a 360-degree experience. "You can use technology for a greater, deeper experience," Ross said "That's better for the consumer."
Lifetime Networks President-CEO Andrea Wong called the still evolving TV landscape, tech advances and consumer habits "additive," that more people are consuming more media.
"More people are watching TV, more homes are being wired for cable," Wong said. "You can't bury your head in the sand."
Among Wong's strategies for growth is "getting more creative every day with integrations" such as the deal Lifetime made with Unilever for upcoming miniseries Maneater. The sponsor is written into the script, buying advertising, putting up marketing money and even promoting the mini in products at the store level.
It also doesn't hurt that new research and measurement systems are debunking old, unfavorable myths to much of cable's business, according to Schleiff. Hallmark has a strong following among baby boomers, a group Schleiff said research is proving more than ever to be a powerful demographic for ROI.
"One of the transforming things in our industry right now is the impact of research," he said.. "If someone's marketing budget is cut in half and they've got to move product, they have to know the best way to do that."
Finding new ways to work with operators and marketers and still keep the viewer happy is the priority going forward, Herzog averred.
One thing most panelists were not optimistic about: brand-new cable networks. Most said that aside from brand extensions, such as Hallmark Movie Channel or Lifetime Movie Network, there is little room for new channels.
Shell played the contrarian here, insisting the demand exists, particularly for networks featuring HD content: "Last decade's digital is this decade's HD."
Rod Perth, co-founder of ReelzChannel and past HRTS president, moderated the luncheon panel that was attended by approximately 700 guests.
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