Versión en Español
MIPTV 2009: taking advantage of the ups & downs of the Crisis
MIPTV 2009, the new encounter for the worldwide contents industry in Cannes, carries a big question for its European, American and Asian participants: Are what we have seen so far the total effects of the crisis, or this is only the tip of the iceberg? According to whom you discuss this with, the future ranges from encouraging to an apocalypse. At this report we will try to contribute some facts that can be applied as benchmarks.
Our NATPE reports stressed that 2009 appears to be the year of the Cost-Benefit ratio, achieving more with less. Since chances are that the budget with be thinner, fresh ideas that work under low budget environments, as well as ingenuity at programming and production processes, -in order to lower expenses- will be appreciated. We have also remarked that there is a wide range of opportunities concerning production, canned programming, services tailored to the client's needs, script sales, production services. The market is now like a Rubik Cube, any setting may represent an advantage.
Today, we would like to focus on the fact that, as a result of the crisis, the market exhibits an array of situations that are very different among them, sometimes even within the same nation. This discards the application of global theories and requires a detailed study of each environment, as a way to obtain a better positioning against competitors. Based on the comments obtained by Prensario since January this year, a variety of scenarios appear. Let's see...
• Spain offers one of the most complex situations. The contents market has been subject to the same transformation as the country. From being considered a powerhouse, the crisis has unveiled its structural problems. With the production euphoria emerged about a hundred producers for some ten broadcasters; nowadays, the broadcasters are not taking programming that is ready, with all the consequences this has for the producers.
This year, the Spanish broadcasters have reduced their acquisition budgets by 30%, the same as Italy. But Sergio Ramos, acquisition manager at La Sexta, underscores that this outlet has actually increased its purchases this year: 'With the entry of Cuatro and La Sexta, the market is more competitive. We are growing, have more advertisers, there is no reason to trim the budget'. Still, this year he is betting of U.S. series because 'they are as successful as in-house production, at a lower cost'.
• Germany is also feeling the distress, as commented by Jens Richter from SevenOne, the international distributor for ProSieben Sat1. The broadcasters are rolling out part of the prime-time shows as usual and in part with lower budget. The daily talk shows and dating shows are trendy because they are successful yet easy to produce.
In Austria, by contrast, the market has not been affected because it is moving from an all-public mode to a public + private mode: 'We are an emergent market' asserts Conrad Heberling, general manager at Channel 9. In France, the government is pushing towards the British model of public television without advertising, partially supported by the private channels, who retain the advertising pie. This has resulted in turmoil but not recession.
• In Latin America, Mexico and Central America are strongly tied to the U.S. state of affairs, therefore suffer more the crisis than others. Mexico has experienced a 40% devaluation that has reduced the acquisition budgets by the same proportion. TV Azteca wants now to add successful series of any origin, as anew cost-benefit opportunity. Yet, most buyers polled by Prensario have not slashed their purchasing power this year, among them Globo (it is giving new impulse to realities), pay TV networks such as MTV, Turner and Mexican MVS. Broadcasters from Colombia, Peru, Venezuela and Bolivia remark that they had already assigned a budget for 2009, that the crisis has not yet arrived or that the market is under development. There is caution, not withdrawal.
The Southern Cone nations (Argentina, Chile) have partially reduced their budgets, but production keeps its pace and there are many new projects. In these markets, fiction has once again defeated the realities. On a regional level, public television is coming of age in many territories. Andres Nieto Serpa, assistant manager of programming at RTVC (Colombia) says' "We will launch 36 new programs this year; we want to change the traditional public television. We are purchasing kiddie and teen programming and are seeking alliances with European public TV networks'.
• Asia exhibits intermediate crisis levels. According to Roxanne Barcelona, VP at GMA -one of the two leading broadcasters in the Philippines- her acquisition budgets have been trimmed by 20% because several corporations have reduced their advertising budgets. However, the day-to-day operations are protected from the crunches seen in other regions. Nations such as India consider themselves even more resistant to the crisis: Girish Malik, president at Clapstem -producer for three of the major TV broadcasters- thinks that 'in spite of the worldwide crisis, we expect a two-digit growth for this year. The internal market remains very active and the international expansion projections are kept unchanged'. Not everything is rosy, of course; but, while the Southeast Asian financial nucleus has suffered, the contents market keeps its potential.
• In the U.S., as known, commercial activity has suffered very much from the crisis. Yet, there are divisions within the companies that are faring well. Emiliano Calemzuk, in charge of International production at Fox, reports that 'we are producing major programs for the studios at a fraction of the budget that would be required in the States. We have now series under production in Mexico with Televisa and RAI, with German ProSieben, the BBC and Canadian CTV'.
• Central and Western Europe offer a double face, too: on the one hand, economies that are not very solid; on the other hand, emerging markets. The production services aimed at the region have grown strongly in the recent past and will remain expanding. As an example, South America is producing for Hungary, Bulgaria and the Czech Republic. Daily fiction has conquered prime time slots, especially in the CME Group channels after the success of Gipsy Heart, a Romanian telenovela.
Ideas to bring expenses down? Ines Nastasoiu, acquisition manager at Acasa TV -a top Romanian broadcaster-, reports: 'We have not lowered our acquisition budget, but we are more careful at second-tier slots. For instance, we repeat prime time programming instead of new programming that must be paid for. Regarding prime time, we invest as usual'. But, Dragan Petrovic, at distributor Visionary Thinking, complains from Serbia: 'The crisis opens windows of opportunities, but we cannot profit from them because our customers don't pay us'. Giorgi Lomindaze, from Imedi TV -a leading channel in Georgia-, adds: 'We are accustomed to the crisis, but the Western nations aren't. And it's them who define the Continent's figures'.
• As seen, there are many scenarios composing the world market nowadays. But, it's certain that the market is not a desert where nothing can be accomplished. For those who have been conducting business properly and are financially sound, it is a good moment for exploring traits and setting themselves apart from their competition.
Nicolás Smirnoff
