How global TV distribution houses are adapting to the cost of living crisis – TV shows in London

The cost of living crisis is wreaking havoc and the global television industry is not immune.

As hundreds of buyers and sellers flock to the UK for the annual London TV shows, retailers are considering how to adapt their catalogs and work with customers in the face of the looming recession.

However, the task is not easy. Numerous distributors tell Deadline that they have had contingencies to deal with such a macro-fiscal event for some time – contingencies that arose during Covid-19. It is often shaped by the world around them, not just the recession, they say.

“Our ongoing strategy and approach to the market is constantly evolving,” said Ruth Berry, ITV Studios’ Managing Director Global Distribution, who was recently promoted to lead the company’s combined distribution and entertainment divisions. “Thinking about this dynamic is a big part of what we do. There is always a little lag between where you think the world is and where it really is, and we really need to understand that.

Simon Cox, EVP of Content Acquisitions big brother And survivor Salesman Banijay Rights has spent the past two decades learning how to navigate the ups and downs of the global economy and apply them to the grueling world of television sales.

“We are a global company that operates and sells worldwide, so it’s about being flexible and adapting to local needs,” says Cox. “It’s so important to be aware of what’s coming. How long will this recession last? Will it be like 2020 or more like 2008?”

Producers around the world are facing shrinking budgets as broadcasters, pay-TV channels and networks reassess their spending, and this can have both positive and negative implications for television distribution.

While Berry cautions against overestimating the impact of the current economic climate on the market, she says her team has noticed that buyers are “taking a more thoughtful approach.”

“You’re looking for clarity,” she adds. “I would say things feel ‘business as usual’ but a little slower. Buyers are now thinking very hard about new commissions and contract extensions.”

Berry’s words echo those of Zai Bennett, Sky UK’s managing director of content, who emphasized a ‘less, bigger, better’ approach at an event earlier this month.

Sellers adapt

With increased demand for premium docs, Berry’s Natural History Content Outfit, raised through a $126 million mega-acquisition, makes its debut at the shows small world Producer Plimsoll Productions.

ITV Studios will be looking for partners for natural history projects, a popular genre that is nevertheless on the more expensive side of factual television and needs co-producers to get off the ground. With that in mind, the global industry’s penchant for co-productions will no doubt continue into 2023, and on the scripted side, Berry is tagging films such as Piv Bernth’s ITV Studios drama. Black waterwhich was supported early on by the Swedish broadcaster SVT and the German ARD Degeto.

Banijay’s Cox also sees opportunities in the premium documentary space, which, while expensive, is ultimately cheaper for buyers than high-end dramas. Premium docs were a big talking point at the last Mipcom in Cannes and several distributors expanded their catalogs in response, with Banijay calling people like Lara vs. Escobar.

“[Premium docs] is a growing part of the market,” explains Cox. “Where you would traditionally go for drama, they give both linear networks and streamers that premium feel at a slightly lower price point.”

While docs-about-drama can be a solution, Cox says escapist scripts tend to be in vogue in times of economic trouble. A wide range of content is crucial and major distributors such as ITV Studios and Banijay Rights tout the merits of a rich pipeline of programs from established producers.

BossaNova head of de facto sales Paul Heaney says things get tougher for smaller businesses during recessions. “There can be a push for new shows, so our pipeline slows down and it’s more about the catalog,” he adds. “Buyers take less risk.”

An established list of proven formats helps deal with risk-averse buyers, Berry and Cox say, and they’ll be in discussions with networks in London throughout the week about formats at different price points.

That strategy will guide Keshet International, according to Fleur Wheatley, the Israeli superpower’s VP of sales.

In recent months, Wheatley says, networks have “looked at our formats differently,” and she predicts that those that can be made cheaply will dominate expensive off-the-shelf tape offerings.

“Buyers want to make high-end displays more economical,” says Wheatley. “At one time they were thinking about a show’s budget [to be] too big, but now they say: “How can we make it cheaper?”. These evergreen, cost-effective formats are crucial.”

Wheatley cites several recent examples, such as Keshet’s rising star And handle itThe first of these will be remade in Brazil, Greece and Indonesia, among others, with the live components removed, which will allow them to do the shows for 40% less than the original versions. rising star, many will remember, launched at Mipcom 2013 as a groundbreaking, expensive format packed with LED screens and live voice technology. Wheatley says the same applies to scripts and Keshet will also push drama formats that can be picked up and produced at lower prices.

Lessons from Covid-19

Monitoring a patchwork of areas to forge a coherent distribution strategy becomes more difficult during a recession, and Berry notes that certain areas are hit earlier and harder than others by shifting economic headwinds.

She compares the situation to the “domino effect” of the early days of the pandemic, when waves of Covid-19 hit different countries at different times. As a result, she says, distributors have “become much better at dealing with these crises.”

Wheatley says the glut of new shows hitting screens after the lockdown ends makes it harder to sell older formats. “During the pandemic it was much easier to sell and box up older shows and give them new life,” she adds. “Now all this new content has been created and there’s just so much out there. It’s fun for the viewer, but gives the rental company less low-hanging fruit.”

But Cox thinks about how a recession could bode well for TV sales as audiences spend more time indoors in front of the small screen while theaters suffer.

“People cut their movie tickets or go to the pub, but continue to consume media at home,” he says. “There is definitely a lifestyle shift that is beneficial to those selling home-based entertainment.”

Home entertainment has been hit hard in the US. Layoffs at tech giants, streamers and studios have been rampant in recent months, most recently at Disney.

Last October, Jana Winograde, former president of Showtime Entertainment, declared that “belts are being tightened” and indicated that mid- and lower-budget shows would be hit the hardest. (Winograde and co-chairman Gary Levine’s positions were subsequently eliminated in a Showtime reorganization as it moved toward integration with sister streaming service Paramount+). Bossanovas Heaney says: “The budgets for the big, loud shows are tight and the pressure comes with cheaper stuff. From our perspective, that means making sure what we have works.”

For Cox, the uncertainty surrounding the streaming giants is causing sellers to tread carefully.

“People are very aware of how factors such as streamers’ share price influence spending decisions,” he adds. “Streamer performance is based on content spend and subscriber count, and both are taken into account.”

However, Berry notes that companies like Netflix and Prime Video are “not necessarily reducing their spending, just increasing their spending by a little less than before.” It also indicates the growth of AVOD and FAST (free ad-supported television) channels that provide alternative options for outlets. “As we move towards new business models, the streaming space will mature,” she says.

Amidst this challenging economic climate, vendors continue to radiate positivity as they head into one of their busiest weeks of the year. Heaney says there are “definitely green shoots” and points to the production boom across Europe, with these shows making their way into dealer catalogs in the coming months.

“What cost of living crisis?” jokes one distributor as he scans the list of posh events, sprawling networking sessions and cocktail parties that take place during London TV shows.

But after glasses empty and shoppers fly home, stores of all shapes and sizes must prepare for the bumpy ride ahead.