The channels survey – leading executives have their say

AMC’s The Divide

Channel providers face a growing array of opportunities and challenges. Digital TV Europe surveyed a group of leading channel executives to find out how they view the evolving distribution environment and quiz them on their current priorities.

What is your number one priority for the year ahead?

Ed Carroll, chief operating officer, AMC Networks
For the international business, our biggest priority is the launch of AMC around the world this year. We’re rebranding the MGM Channel in order to extend the AMC brand outside of North America for the first time, which will enable us to create to a broad pipeline for our original content. We’ve dramatically ramped up our original programming mandate in recent years, and we’re launching AMC globally with two great scripted dramas – Halt and Catch Fire and The Divide. Both were produced by AMC Studios and have been widely praised by critics.

Jason Webby, senior vice-president, sales, CNBC International
Provide industry-leading viewer/user engagement and action on behalf of our clients by aligning their brands with CNBC’s first in business worldwide content across all of our platforms.

Arnaud Verlhac, Euronews
The number one priority is our digital platforms. First, to reinforce our leadership and keep expanding on digital distribution. Second, to drive revenue growth. Third, to increase brand exposure. Finally, to be at the forefront of technology and make Euronews the most innovative type of media

Jim Samples, president, Scripps Networks International
Our nmber one priority is to expand the distribution of our networks internationally.   We have ambitious plans for entering new markets and reaching new viewers across EMEA, Asia Pacific and Latin America.

Dean Possenniskie, A+E Networks International
Last year was a big year for us in terms of completing our footprint. This year is about expanding our portfolio, and that’s really what we’re focusing on – building our portfolio in each of our local markets. We have launched A&E in Germany, and we are launching it in Spain and Portugal next week. We’ve launched Lifetime in Africa and we will announce a big European launch soon. History is now fully distributed, and A&E is developing well, as is Lifetime. We have a target of about four to six channel brands in each of our markets. There is still a lot of room to grow our portfolio with great brands like A&E and Lifetime.

Kate Marsh, EVP, Networks, Western Europe for Sony Pictures Television
To keep developing and delivering entertainment services that connect with audiences and operator platforms.

What do you think is the biggest single threat or challenge to your business?

Ed Carroll, AMC Networks
The biggest challenge is finding innovative ways to collaborate with our distributors as consumer consumption methods shift.  There is a bit of an arms race among platforms for the best product. We believe AMC content can help.

Jason Webby, CNBC International
Becoming reactive in a market that demands and rewards proactive innovation.

Jim Samples, Scripps Networks International
All of us in the industry are challenged by rapidly evolving changes in how people watch television and access media.  And while every market is at a different change of development, we see a consistent trend of consumers expecting to be able to watch their favourite shows where and when they want.  Internationally, we take on this challenge by tailoring our offering on a market-by-market basis – complementing our channels with broad non-linear offerings. Because we own all rights to most of our content, we can adapt our strategy to meet the market conditions and the needs of our distribution partners. That said, Scripps Networks’ brand of lifestyle content continues to drive live viewing – very attractive to advertisers.  For example, in the United States, 93% of our viewing is live, and we are the number one network group for live viewing. So in our home market, we have been less impacted by time-shifted viewing than our peers.

Dean Possenniskie, A+E Networks International
Currently in the EMEA market we are a pay TV channel network. I think the proliferation of OTT services is becoming a risk that our platform partners are increasingly mindful of. OTT providers are delivering content anytime, anywhere, on any device. But the range of content on OTT is in some ways a good thing and it is making us raise our game. Platforms are looking for clear brands they can trust and we provide that.

Kate Marsh, Sony Pictures Television
Piracy.

Arnaud Verlhac, Euronews
Inaction. Not to see that media is dramatically changing and that we need to re-think the way our media is distributed. The technology and consumers have changed, and broadcasters must change as well.

What do you think is the greatest opportunity?

Kate Marsh, Sony Pictures Television
The technology explosion that provides multiple routes to audiences and consumers.

Arnaud Verlhac, Euronews
Everyone is desperately looking for some content, especially video, and we’ve got plenty of it. Euronews has a very rich daily output in multiple languages. We are perfectly adapted to the digital world and to the new ways of consuming the news.

Dean Possenniskie, A+E Networks International
Expansion and OTT are both providing opportunities. There is a reshaping of channel offerings throughout the world of pay TV platforms. There is a big opportunity here for us because we have six big channel brands, backed by strong output and local commissioning, with some of the best original content available. We own the rights in terms of playing on subscription video-on-demand platforms and in the OTT space. It is really one of those moments where the business is being reshaped, where only the best channel brands backed by original content are going to win, and I am confident that we have what platforms are looking for.

Jason Webby, CNBC International
Investing in our creative solutions capabilities that allow clients to build positive relationships with our viewers/users that span years, representing a tier one priority for both their brand and CNBC.

Jim Samples, Scripps Networks International
The international media landscape is ripe with opportunities for growth and expansion, and we will continue to evaluate new opportunities across the globe. In addition to expanding distribution of Food Network, Travel Channel, Fine Living, Asian Food Channel and HGTV, we will look to build scale by acquiring or partnering with existing lifestyle networks in markets that we haven’t yet entered. We produce more than 2,000 hours annually of high quality programming about home, food and travel.  That output gives us a unique advantage in building our brands around the world.

Ed Carroll, AMC Networks
AMC has redefined dramatic storytelling on television over the past few years with compelling characters and cinematic production values. We’ll continue to increase our investment in original programming in the years ahead across all our brands including Sundance Channel and the channels we acquired from Chellomedia, which are known for their strong local programming. Our tag line is “the smartest global content, the strongest local brands”, and we’ll continue to take risks and innovate in the years ahead.

What is the single most important thing channel providers need to do to secure the future of their business?

Dean Possenniskie, A+E Networks International
In a word, content, but that involves a few different layers. This is something we have been doing for a decade – developing talent in-house, building partnerships with production companies and securing rights ownership. This means a win-win for channels, platform owners and production companies alike. What we are doing is bringing to the market new original content that we own the rights to.

Ed Carroll, AMC Networks
The channels that will thrive in the future will be the ones with the strongest programming. There is a strong appetite for both scripted and non-fiction content around the world, and pay-TV operators are looking for the best programming to attract new audiences. We believe that we can be very supportive in that effort. Operators are also increasingly looking to offer content on demand, and our advanced rights enable us to work closely with them to tailor our offering for each individual market.

Jim Samples, Scripps Networks International
Channel providers need to become increasingly nimble in the face of the evolving media landscape. While pay-TV is still at the heart of what we do, we will always evaluate new opportunities for growth. Our international strategy is not a one-size-fits all strategy; we adjust our approach to fit the dynamics of each market. We will find that right balance of: pay TV – at the heart of our business; free-to-air; digital-terrestrial TV – Fine Living in Italy; OTT – TVPlayer and AOL in the UK;  and programme licensing opportunities – which is heading to MIPCOM with over 1,200 hours of original content.

Jason Webby, CNBC International
Provide timely, relevant, unique, habit-forming, and must-consume content, constantly optimised across the brand’s broadcast, digital, mobile and social platforms.

Arnaud Verlhac, Euronews
Take risks. Change. Innovate. Be inventive.

Kate Marsh, Sony Pictures Television
Distinctive, must-see content for target audiences with the rights utility to take advantage of our greatest opportunity.

What has been the biggest highlight of 2014 so far for your business?

Dean Possenniskie, A+E Networks International
Africa, and there are a few different elements to that. Africa is a region with high potential, and we are very focused on the continent. A few key highlights are the launch of Lifetime in Africa, on the DStv platform. It was the only new international channel to launch on DStv to date in 2014. We have also demonstrated our commitment to Africa by putting a local team in place – based in Johannesburg but working across the continent. The final element related to Africa is our commitment to local format development. Pawn Stars South Africa will launch on History across Africa, and also across all our international networks, soon. The chemistry on the show is brilliant, and we have been very excited to see a big A&E licensed format like this.

Jim Samples, Scripps Networks International
Our greatest accomplishments this year will be the upcoming launch of HGTV in Asia.  The HGTV launch is a key milestone for the company as the channel just celebrated its 20th anniversary in the United States. This launch marks HGTV’s first international launch outside of North America. The channel will bow in December in Asia.

Arnaud Verlhac, Euronews
In term of distribution the growth of revenues is the most relevant point here. In terms of our distribution performance, things like bringing Euronews onto quite highly innovative projects like Google Glass or going on smart watches is something we are really proud of.

Kate Marsh, Sony Pictures Television
The Sony Pictures Television Networks team’s performance across western Europe. A business highlight was the recent acquisition of the CSC Media Group, adding 16 channels to our UK portfolio and making SPT Networks the number five cable/satellite/multichannel ad sales player in the UK market.

Jason Webby, CNBC International
We’re fortunate that everyday is a virtual highlight reel on CNBC where the world’s most influential business luminaries such as Jack Ma on the morning of Alibaba’s IPO, to political leaders like Vladimir Putin, in the Russian President’s first interview with western media since entering the Crimea, choose to appear first or exclusively on CNBC.

Ed Carroll, AMC Networks
Completing the Chellomedia acquisition has been a highlight. The channels we acquired are known for their histories of strong local programming. This includes cooking channels La Cucina, Paprika and El Gourmet, kids channels JimJam, Panda and Minimax, lifestyle channels for men and women, and our strong sports business in central Europe. When combined with Sundance Channel and AMC, we’re now offering a strong portfolio of diverse and engaging services to operators and audiences worldwide.

What is your favourite current TV show and why?

Jason Webby, CNBC International
The Tonight Show Starring Jimmy Fallon – being American, it gives me a nice dose of NYC in London, and helps me relax at the end of a busy day while still watching CNBC!

Ed Carroll, AMC Networks
The Walking Dead – it’s big, it’s scary and we own it.

Dean Possenniskie, A+E Networks International
Right now, the coverage of the Ryder Cup, but I’m also a big Walking Dead fan. It is just a show that is incredibly well-produced, delivering engagement and sympathy with the characters, and you never know where it’s going to go next. I love it.

Jim Samples, Scripps Networks International
Property Brothers, starring Canadian twins and real estate experts Drew and Jonathan Scott, is a favorite in my house and many, many other homes across the United States. The programme gives viewers a voyeuristic glimpse into the lives of real couples who are looking to transform extreme fixer-uppers into their ultimate dream homes. It’s a testament to the power of storytelling that Scripps Networks does so well – the show is hosted by engaging, trusted personalities and there’s the dramatic reveal of the renovation as well, but we also get to experience people’s stories and see the challenges they face and the obstacles that they overcome.

Arnaud Verlhac, Euronews
Le Petit Journal from Canal+ with Yann Barthes.

Kate Marsh, Sony Pictures Television
The Blacklist. It delivers smart, gripping story-lines and broad audience appeal in one package with the fantastic James Spader at its centre.