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May 2, 2005

Success Story: Homer Bingo is a Winner

Max Media has shuffled its TV ownership in Great Falls, Mont. In November it sold its NBC affiliate KTGF-TV to Destiny Communications, and by December it became the owner of ABC affiliate KFBB-TV, the No. 2 station in town. But before the transactions, Max Media picked up a National Association of Broadcasters award for a KTGF ad sales promotion.

Homer Bingo was the brainchild of Linda Tracy, promotions manager for Max Media of Montana, which oversees six markets. Bingo has a large following in the market, Ms. Tracy said, so it seemed the perfect tie-in with the station's relaunch of "The Simpsons," whose family patriarch is named Homer.

Her creative team developed cards that spelled HOMER, instead of BINGO, across the top. The cards were available for pickup at various sponsor locations. To qualify as a pickup location, sponsors had to make a $2,000 advertising buy. Upward of 40 advertisers participated. Other merchants sponsored the prizes, which included a La-Z-Boy chair and a television. The grand prize was $5,000. Contestants were eligible to enter the drawing if, after hearing the on-air spots, they got all the tiles in a row or in the shape of the letter "H."

"I was amazed at the response because [the game] was so complicated," said Ms. Tracy. The promotion was so well received that the station ran it again to promote a back-to-back block with "Malcolm in the Middle." The new cards still said "Homer" across the top, but a "Malcolm" graphic was in the center square. Also, cards that filled squares in the shape of the letter "M" made contestants eligible for the grand prize drawing.

The Great Falls designated market area is expected to pull in $5.8 million in TV ad revenue, down from $6.4 million in 2004, according to BIA Financial Network of Chantilly, Va.

Fewer Films in Hopper Mean Upfront Worries

Movie studios may not deliver a good upper-cut upfront advertising punch for television networks next year.

The first goal for network TV executives before the upfront television market typically is to set prices as high as possible. Then they call the movie studios.

But with fewer theatrical releases expected next year and an overall softer TV advertising market, network sales executives are concerned they won't get the same kick-start results.

The purchase of Metro-Goldwyn-Mayer by a consortium including Sony Pictures Entertainment and Comcast Corp., as well as question marks concerning the future of a slate of movies from Disney's newly organized Miramax Films could mean fewer overall dollars for TV networks in the upfront.

"The overall number of theatrical releases will probably be down," said one veteran network advertising sales executive. "MGM doesn't exist as a company anymore [being bought by Sony]. Over the last few years, MGM's releases have gone down."

Major studio executives are just now evaluating the marketplace.

"I'm not necessarily getting a sense it's up," said Dawn Taubin, president of domestic marketing for Warner Bros. Pictures. "Our slate is roughly the same. We are just getting into evaluating that right now. "



Studios Think Young

Typically movie studios look to strike deals with young-skewing networks, such as Fox, for high-profile, high-rated, young-skewing programming such as "American Idol" as well as other top network shows such as CBS's "Survivor" and "CSI." Sometimes, in an effort to get better deals, movie studios move separately from their media agencies.

"Fox has always tried to get the movies to move separately," said Steve Siskind, executive VP of marketing for Paramount Pictures. "But this year I'm not sure they can do that. Will studios separate their media buying from their agencies? There will be some debates over that the next month."

Historically, movie studios pay the highest price for spots on TV network programs because unlike other consumer products, films need particularly strong sales around one specific time period-their opening weekend. If a film does not open strongly, the studio might pull it from release soon afterwards. To attract the most attention to a film before it opens, a studio might need to buy additional inventory on short notice-and pay dearly.

"For movie studios, you focus on getting the proper number [of spots in] tentpole programming, like 'American Idol,' as well as [in] season finales and season premieres," said Roger Schaffner, president of Palisades Media Group, a Santa Monica, Calif.-based agency whose clients include Miramax Films, Lions Gate Entertainment and a number of specialty movie studio divisions.

Theatrical movie media strategy is far different from that used for other consumer products. Imagine if Procter & Gamble had only one shot to sell a new toothpaste on a particular Friday in April, said analysts. If it failed to hit its goal, P&G would have to pull the toothpaste. That's the predicament unique to movie studios.

Movie sales goals are so crucial that before the upfront season, a studio sometimes will buy TV commercial time separately from its media agency's regular upfront buys. Media agencies typically do deals for all their clients at the same time during the May/June upfront buying market.

Sony Pictures Entertainment is just one of many studios that has purchased TV time this way. While Sony may move early, it does so with the negotiating help of its media agency, Universal McCann.

"Every single time we moved early, we did better in the market than waiting to move with the rest of McCann's clients," said Cherie Crane, president of Perspective Consulting, who was a senior media executive at Sony Pictures Entertainment from 1998 to 2004. "We got in before [networks and agencies] know what the market was going to be, before inventory started disappearing, while it's still laying on the table and the networks are a little anxious. So they sell off aggressively and you can do a better deal."

Paramount's Mr. Siskind added: "Sometimes studios think they can beat the market because they are worried about getting individual dates-say, for example, Thanksgiving or Memorial Day. Sometimes the studios feel since 'I'm changing my spending, I can get a better deal regardless what my agency is doing.'"

Movie marketers must lock in commercial time for season-ending TV programs because of their high-profile tentpole summer pictures that begin to see release in mid-May. Once the season gets under way, a movie company may need to buy additional inventory to help market the movie. For all this, movies pay a premium over other network advertisers-sometimes as high as 15 percent to 20 percent. But Palisades' Mr. Schaffner doesn't believe movie studios pay higher year-to-year increases for programs versus other network advertisers.

Even before the moves of Sony/MGM and Disney/Miramax, movie spending had been slowing. Theatrical media revenues, according to advertising research company, TNS Media Intelligence/CMR, were virtually flat in 2004, rising just 0.3 percent to $2.20 billion.



Broadcast Buys Down

The real concern has been on the part of broadcast networks. Last year, movie studios' broadcast network buying dropped 2 percent, to $1.20 billion in 2004 from $1.23 billion in 2003. Local spot TV buying fell faster-by 11 percent to $338 million from $380 million in 2003.

Movie media buying on cable networks, however, climbed about 10 percent to $513.4 million in 2004 over the year before. Syndicated television also rose 11 percent to $147.1 million.

The big change this year will be which broadcast networks sell the most time. For the first time in many years, ABC will be a strong competitor for movie dollars with Fox and CBS because of its hit shows "Desperate Housewives," "Grey's Anatomy," "Lost" and "Extreme Makeover: Home Edition," industry executives said.

NBC, on the other hand, will be at a disadvantage because of its drop in prime-time ratings, especially for its Thursday night lineup. Thursday night is a key marketing time for the movie companies as they tout films for the all-important weekend sales.

WE Initiative Reaches Out to Serve Women

WE: Women's Entertainment is giving back to women.

Kim Martin, WE's new general manager, said that since being put in charge of the network at the beginning of the year, she's focused on establishing a brand image. So far, the network has done that through original programming and marketing. And this week the network will announce its first service initiative: WE Empowers Women.

"There wasn't anything at WE or in our industry that spoke to today's modern woman, and that's where WE Empowers Women fits in," Ms. Martin said. "We're focused on supporting other organizations and charitable groups that really speak to what we feel like our network values are: That's creating strong, confident, smart women and we're doing that by providing education, financial assistance as well as providing access to health care and other programs for young women in a lot of different groups."



Topical Documentaries

WE also will reinforce its brand as a channel for modern women through a series of editorials that will begin in the second half of the year. The network is lining up well-known female politicians and celebrities, who will be given one minute to speak about issues that are relevant to women. Each message will stay on the network for about a week.

The network is also doing topical documentaries. In July, "Tammy Faye: Death Defying" will air. It follows Tammy Faye Messner's battle with cancer. "Women are very concerned about cancer. We'd expect to do more things like that," Ms. Martin said.

The first nonprofit group WE Empowers Women is hooking up with is Girls Inc.

"They're focused on at-risk girls and teenage girls and the goal is to create strong, smart, independent women who are good thinkers and have the ability to take charge of their own life so that by the time they become adults and they're having to juggle all the priorities that we professional women juggle, they feel confident and able to make some of the tough decisions as they come along," Ms. Martin said.

WE will help Girls Inc. by running public service announcements on the channel and putting a link on the "WE Empowers Women" Web site. Local Girls Inc. chapters also will have opportunities to work with WE's cable affiliates. Ms. Martin would not disclose how much direct financial aid Girls Inc. would receive from the network.

WE plans to announce partnerships with two or three other such organizations by the end of the year, Ms. Martin said, adding that WE has worked with a handful of charitable organizations in the past but not consistently.



A Disabled Olympics Sponsor

WE's rival women's network Lifetime has a long history of public service efforts for women, including Stop Violence Against Women and Stop Breast Cancer for Life. But Ms. Martin said WE's effort was based less on following Lifetime's lead than on the entire industry's history of public service efforts.

Ms. Martin will introduce WE Empowers Women at this week's meeting of the Cable Television Public Affairs Association.

The spokesperson for the initiative will be Sandy Dukat, a medal-winning member of the U.S. Disabled Ski Team. WE has sponsored Ms. Dukat in the Disabled Olympics for the past few years. The advisory board for WE Empowers Women includes Benita Fitzgerald Mosley, president and CEO of Women in Cable & Telecommunications; Suzanne Keenan, senior VP of customer service for Comcast Cable; and Dave Andersen, senior VP of communications for Charter Communications.

Cable Notes: $715M Fine for Adelphia as DOJ-SEC Probe Ends

Adelphia Communications, the bankrupt cable operator that agreed two weeks ago to be sold to Time Warner and Comcast, last Monday reached a settlement with the Department of Justice and the Securities and Exchange Commission under which Adelphia will pay a $715 million fine to settle charges related to accounting misdeeds and attempts to dupe investors about the company's financial health. The fine will go toward compensating investors. In addition, the company's founding Rigas family agreed to forfeit 95 percent of their assets, worth more than $1.5 billion and said to have derived from the fraud. Included in the forfeiture is the Rigases' interest in several cable systems managed by Adelphia.



Dolan Relents on Effort to Alter Cablevision Board

Cablevision Systems Chairman Charles Dolan is backing off a plan to reshape the cable operator's board of directors, including reducing the number of directors and having Mr. Dolan himself elect three-quarters of its members. Mr. Dolan offered no explanation for the about-face, which was outlined in a regulatory filing submitted last Tuesday to the Securities and Exchange Commission. However, his change of heart, which was reached at an April 22 board meeting, came after he lost a bruising battle with the board over the fate of his struggling satellite service Voom. Mr. Dolan had wanted to keep the venture alive, but he faced fierce opposition from several board members, including his son, Cablevision CEO James Dolan, which led Charles Dolan to oust three board members and install people he considered more aligned with his interests.

Polishing the Product

Determined not to play the part of a lame duck, Adelphia has big plans to spruce up its video-on-demand service over the next year for the company's new owners-Time Warner and Comcast.

Late last month Adelphia began pitching advertisers on the prospect of long-form ad content on VOD, free to consumers, which it will add in late May.

Adelphia also plans to expand its VOD service from the 1 million subscribers who have access to it today to about 1.5 million by the end of the year.

Adelphia did not disclose the specific terms of its deal with Comcast and Time Warner and whether it's required to deploy VOD in a certain number of markets. However, it has an obligation to turn over the company in good working order.

"We're selling assets to Time Warner and Comcast and they have an expectation that the assets be delivered in top shape," Adelphia spokeswoman Erica Stull said.

The new product offering, Ad Index, also serves as a harbinger of positive business in on-demand advertising in general.

The content will be included in a new VOD category that's a home for long-form advertisements ranging from three minutes to an hour. The service is similar to that offered on VOD platforms by Cox FreeZone, Comcast Spotlight and Charter's iWant More. Cox FreeZone was the first such platform for long-form content and has attracted Coca-Cola, Kraft and Tourism Australia. Operators sell long-form advertising opportunities directly to marketers, whereas cable programmers, such as Discovery or CNN, also sell VOD ad time, but inside their on-demand programming.



Looking Good

"We've got to build the assets for [the new owners]," said Tom Straszewski, director of new product sales for Adelphia Media Services.

Many advertisers view VOD as an experimental playground for messaging. "This is an environment and space that gives complete control to the viewer, and it's an engaged viewer rather than [someone] relying on appointment viewing," Mr. Straszewski said. "Mass marketing is also struggling at this point, and clients and agencies are becoming cognizant that there is waste with mass marketing. What VOD offers is a targeted approach, especially with interactive TV."

Adelphia likely will offer advertisers a number of ways to engage consumers through the on-demand platform. First, the operator can run long-form branded content, such as a movie trailer or an in-depth spot for a new car. In addition, Adelphia can make traditional commercials on linear networks interactive, letting a viewer click on a 30-second spot to be transported to a long-form piece of content that resides in the VOD service. Companies such as GoldPocket and Navic power such forms of interactivity.

Adelphia hasn't yet inked any deals with advertisers since the ad offering has been on the market for only a few weeks, but Mr. Straszewski said he's particularly keen on targeting the travel industry to produce long-form ads about various destinations. He's also going after real estate, movie studios and the do-it-yourself market.

Adelphia is pitching national advertisers first because they are more likely to have or develop such content. However, Mr. Straszewski envisions some opportunities for locally sponsored content, like a behind-the-scenes piece on one of Los Angeles' professional sports teams for which Adelphia could sell sponsorships.

Los Angeles is Adelphia's biggest market, with about 400,000 VOD-enabled homes. Other Adelphia VOD markets are Cleveland, Buffalo, N.Y., and West Palm Beach, Fla.

Given that it's late to the game, Adelphia is sweetening its offer to advertisers with the prospect of custom research on VOD viewing. It will offer additional measurement data beyond the information most programmers and multiple system operators supply advertisers today, such as total views per show and share of the set-top box universe. The additional data points will be tailored to specific campaigns.



Welcome Changes

Advertisers like that idea. "If we can have one or two more pieces of data, that would be good," said Mitch Oscar, executive VP of Carat Digital, who has talked with Adelphia about placing some Carat clients in Adelphia's VOD platform. "They are deploying aggressively, pricing is reasonable and they have learned from other operators. They are offering [advertisers] another opportunity."

Adelphia also has a raft of research and data options at its disposal. VOD data is now available that offers a more granular understanding of VOD viewing, such as how many viewers saw a VOD promotion and then watched the content, said Frank Foster, president and CEO of erinMedia, which measures set-top box data. Adelphia is talking with erinMedia about the type of data it provides.

Mr. Straszewski said coming to market after other operators have whittled an early path can be a good thing, allowing Adelphia to cherry-pick the best of what's worked and to avoid what hasn't. Specifically, that means eschewing ads that are more like infomercials. "It's imperative we have very compelling and entertaining content in VOD space," he said.

Adelphia customers will be able to find the long-form ads though the main navigation screen for on-demand and also from within related categories, such as fitness or lifestyle.

He expects to offer about 10 hours total per month of VOD ad space.

NBA Makes Fast Break for Playoffs

Now that the playoffs are under way, the National Basketball Association plans to launch an aggressive slate of advertisements with several new high-profile advertisers in its video-on-demand product.

The league is increasing the number of ads and advertisers incorporated into its on-demand offering at the optimum time of year for basketball viewing-the two-plus months of playoffs. Participating advertisers include Toyota, 20th Century Fox and Sprite, said Steven Justman, VP of global media at NBA TV.

20th Century Fox will be the exclusive film sponsor of on-demand content related to the finals, which begin June 9, to promote its upcoming film "Fantastic Four." Paramount is expected to advertise its movies "The Longest Yard" and "War of the Worlds" prior to and after the Finals, Mr. Justman said.

NBA TV on-demand launched in November and introduced ads earlier this year with trailers for the Warner Bros. movie "Constantine."

"VOD is really just another extension of how the NBA is embracing new technology to create new touch points for our fans," Mr. Justman said. "It's part of our ability to embrace technology, whether it be wireless, VOD, interactive [or] the Internet."

NBA TV hasn't finalized the look and feel of Toyota's VOD presence, but Mr. Justman said he expects to create branded content for the automaker and to also offer a Toyota-sponsored 30-minute show that's in development for NBA TV on an on-demand basis. Mr. Justman added that he's talking to other NBA marketing partners such as sneaker makers to create customized branded content for the on-demand platform.

The NBA on-demand service includes 30 hours per week of content, including game highlights, plays of the day, specialty plays, playoff retrospectives, interviews and greatest moments. For now it's available to Comcast customers who subscribe to NBA TV, which is part of Comcast's digital sports package, or with a subscription to NBA League Pass.

The on-demand service delivered 1 million views in its first month, NBA TV said.

Advantages of Working 'Outside-In'

By Mark Dominiak

Special to TelevisionWeek



Way back in the first week of the year I experienced a media placement error so shoddy that I made note of it for use in a future column.

While driving, I was listening to a news update jampacked with coverage of the South Asian tsunami disaster. Following a few minutes of stories of human loss and disturbing statistics, the station went to break and the first spot to grace the airwaves was for wonderful oceanfront Pacific property for sale in Mexico. Given their infinite wisdom, I will courteously leave the client anonymous.

What were they thinking? During that first week in January, the U.S. population was certainly reaching its peak awareness of tragic imagery from areas affected by the tsunami. Furthermore, significant coverage had been given to scientists discussing the unfortunate circumstance of an event occurring in the Indian Ocean, where there is no tsunami detection network, instead of in the Pacific Ocean, where tsunamis are more frequent and are monitored. Given that the property was specifically on the Pacific beachfront, why wouldn't the client pull its ads until coverage cooled down?



Environment's Importance

Whatever the reason for the oversight, the example underscores the importance of environment as a factor in media planning and execution. Why is it that environment sometimes doesn't receive the attention it deserves?

The main reason is the advertising industry's institutionalized bias toward Inside-Out versus Outside-In thinking. What does that mean? Simply put, Inside-Out thinking prioritizes the seller's perspective and Outside-In thinking honors the consumer's perspective. An Inside-Out approach considers first what's important for the seller to achieve and then reaches out to the consumer, whereas an Outside-In approach gains insight from consumer behavior and markets from that learning.

A good example of the pitfalls of an Inside-Out approach might be seen, say, when an advertiser forges forward to sell oceanfront property just because selling seasonality is ripe, without stopping to consider that consumers might at that particular time be apprehensive about said oceanfront property.

In media's corner of the advertising world, many decisions are made based on the commodity aspects of reaching consumers: impressions, ratings, reach. Consumer usage of media is inventory to be bought and sold. Systems and processes are geared to measuring, planning and buying that inventory as efficiently and effectively as possible.

Consumers, however, don't see their media use as inventory. There is purpose to their behavior and rationale for their media choices, each selection intended to fulfill a need the consumer may have at the time. Moment by moment, as media is consumed, needs are met.

Any given moment of media consumption represents a small piece of perceptual real estate in the consumer's mind, where attention is focused intently or modestly on the content present in that time and space. Perceptual real estate-you can't get much more Outside-In than that.

Thinking about perceptual real estate as a starting point shifts media planning's approach to Outside-In, from the consumer's perspective back to the brand, helping planners better unleash the potential a given media environment has to offer. Conjuring up the notion of real estate itself is beneficial. Real estate is a space, territory, a small piece of property waiting to be developed. As media planners, the question is not which impressions to buy with the budget, but what we should build in the perceptual real estate available to us in the consumer's mind.

Here are a number of interesting examples of efforts that leverage the strength of perceptual real estate.



The Fast-Food Arena

Back in the '90s Domino's did a great job of leveraging the perceptual real estate inherent in its NFL buy. The traditional approach for presenting advertisers was to own a quarter, secure a billboard or two and possibly build some kind of statistical feature into the game. What Domino's built in its NFL perceptual real estate reflected a much better sense of consumer perspective than the traditional approach.

Focusing placement about midway through the second quarter of the game, Domino's would air a unit with its featured pizza deal in conjunction with a billboard that invited consumers to order the pizza at that moment, prompting delivery just in time for halftime dining. It was a shrewd strategy that acknowledged exactly what was running through viewers' minds about midway through the second quarter: What should I grab to eat at halftime?

To deepen the overall communication, messages running through "Domino's at the Half" reinforced the Domino's branding as product was potentially being consumed.

McDonald's is another fast-food retailer that has demonstrated a great understanding of the perceptual real estate associated with dining. It's not uncommon to see McDonald's messaging in late prime, late news or late-night touting offerings from its breakfast menu.

The timing is perfect for consumers winding down their evenings and starting to think about the next day's schedule. Foremost among those thoughts are morning routines and gathering information needed to navigate the day ahead: news, weather and-how about a breakfast idea?



Building the Brand

An excellent current example of a brand building strong message association in consumer perceptual real estate is "Extreme Makeover: Home Edition." Much has been reported about how good a job Sears is doing with its product placement within the program. But consider for a moment the unit it runs at the end of the show that ties the brand's presence together.

Viewers of "Extreme Makeover" arguably are drawn to the positive, emotional human-interest energy the program generates, stories of families not much different from most American families, except that some twist of fate has left them down on their luck and in a bad situation with their home space.

Over the course of the hour, viewers experience the gravity of the situation the family is facing. Not only does the "Extreme Makeover" team amazingly rebuild the family's entire home over the course of a week, but they do it in a way that addresses the debilitating circumstance that burdened the family in the first place, whether it's a chronic illness or a bad septic system. In short, they don't just give the family back their home; they give them back their lives.

It makes for good television and engenders emotional engagement on behalf of the viewer. The level of viewer engagement opens up prime perceptual real estate for advertisers to leverage.

Besides supplying product to outfit the new home, in swoops Sears in the closing moments of the show, when positive emotions are at their peak. Viewers have seen the family in a horrible situation and have proceeded to watch them return to a new home, overjoyed to find that the situation has been wiped away. At that point of emotional crescendo, Sears' unit airs, showing quick clips of that week's family going from dejection to joy, pointing out in the copy that Sears' products help make people's lives better.

Lots of impressions can be purchased in "Extreme Makeover." The impressions available at that particular moment occur at an emotional high point for the viewer within the program. Sears has used the perceptual real estate present at that moment and built a presence for its brand that stakes out a higher-order benefit territory its rivals will have trouble competing against.



Other Media

To demonstrate how the notion of perceptual real estate might play out in a non-television environment, here's an example in outdoor. In the Chicago market, there's a particular location on the Kennedy Expressway where the Metra commuter rail tracks pass over the roadway. It's not uncommon to be stuck in traffic and watch one of those trains zoom by overhead.

Metra has realized the unique perceptual real estate of the location and has placed a billboard on that overpass that asks motorists if they'd rather be riding Metra. Some may look at it as salt in a wound, but the likelihood is that a number of commuters have looked at that perceptual real estate one too many times and exchanged their car keys for a train pass.

Construction Materials

So if the starting point for the media effort is a piece of perceptual real estate in the consumer's mind, the question is what sort of message do you build on the property? While creatives may be considered the primary contractors in the construction of an advertising message, media planners have a lot to say about the construction materials to be used, namely unit selection.

Many times unit selection doesn't receive the attention it deserves because budget considerations drive final choices. That scenario is another manifestation of Inside-Out decision-making. If the plan is to truly honor valuable perceptual real estate in the consumer's mind, then the choice of unit should be dictated by what will feel right to the consumer, not what feels right to the budget. That's not to say budget be damned; it means the plan can afford only as many consumer-appropriate units as the budget allows.



Possibilities of TV

Television offers a host of unit options to choose from. Most often chosen is the 30-second spot, not necessarily because it best fits the desired perceptual real estate, but because it best fits the process. The next time your targeted perceptual real estate calls for television, stop to consider the wealth of all unit possibilities before quickly going to the :30-second. Here are a few non-30-second notions to jump-start your ideating.

How about a one-second spot? Yes, you read that correctly, a one-second spot. Back in 1999 Master Lock employed one-second units to generate buzz for the brand in advance of a campaign launch featuring a couple of new, innovative products. While the notion of a one-second spot seems counterintuitive, the reality is that the shorter unit has the ability to cut through the clutter assailing perceptual real estate precisely because it is so different from the units surrounding it.

As you might expect, Master Lock's media team faced an uphill battle securing the time with targeted networks. A one-second spot flies directly in the face of the institutionalized, Inside-Out inventory management system on both the selling and buying sides. In the end, enough networks figured out how to carve out time to create inventory space for the units, and a small blitz of spots ensued.

Contrary to what one might expect, the units generated significant recall for a paltry percentage of budget investment. On top of that, the units themselves generated a significant level of incremental media coverage, attributing yet additional innovation associated with Master Lock, which was the desired intent of the campaign launch.



Reconsider five- and 10-second spots. As is implied in the aforementioned Domino's example, perceptual real estate such as billboards or promotional IDs have the potential to strongly connect with consumers when used appropriately. Why simply state "Brought to you by …"? Why not carve out some space with a call to action specifically relevant to the moment at hand?

In the ID space, think a bit more deeply about the environment in which they run. Many of the units run during game shows. Consider turning the five to 10 seconds of real estate into quizzes or contests. The viewer is already in that frame of mind. It's an opportunity for the brand to fill the viewer's cognitive need at that time, hopefully in a way that makes brand benefits shine.



Create 15-second spots as their own animal. How many times have you heard someone say, "We can cut down the 30 nicely into a 15?" Not enough attention is paid to crafting a 15 for a purpose in and of itself. Because they're short, not much info can be placed into a 15. So use them to deliver a very simple message in perceptual real estate where only a simple message is needed, like a reminder or teaser.

Use longer formats such as vignettes, sponsored segments or direct-response TV/infomercials. If the real estate you have staked out caters to a consumer's desire for information, fill that consumer need. Think beyond simply placing a unit within the programming, assuming consumers will make the connection. Directly attach the unit to information that demonstrates what your brand wants to communicate, whether the execution is sponsoring an existing segment or creating one from the ground up.

Beyond traditional news, weather and sports, local news environments include many other segments that run nationally and provide fertile perceptual real estate for consumers looking to satisfy a need for information.

"Smart Stuff With Steve Greenberg," a weekly segment carried by local stations across the country, targets consumers with a penchant for early adoption of new products. "Smart Stuff" appeals to the viewer's sense of curiosity and desire to be innovative. That's perceptual real estate that could be mined by brands ranging from the newest gadget creators to cutting-edge content providers.

Or how about "Mr. Food," another segment syndicated to local stations? Watching the segment quickly places the viewer into perceptual real estate friendly to recipe ideas and food solutions. Not only does "Mr. Food" enjoy coverage in about 40 states and 150 affiliates, but the property also provides very nice Internet possibilities as well.

Environment is an incredibly important consideration in media planning. Yet it often doesn't receive the attention it deserves. One sure way to put appropriate attention back on message environment is to consider how the consumer views any given moment of media consumption. Thoughtful consideration of those moments can lead planners to perceptual real estate that provides a powerful foundation for brand messaging.



Mark Dominiak is principal strategist of marketing, communication and context at Insight Garden. He can be reached at mark@insightgarden.com.

HD Television: Carriage Key to New Model

Though at least 18 national networks offer content in high-definition and consumer demand for programming is on the rise, many HD networks lack the distribution agreements they need for widespread visibility. How such carriage issues are resolved could set the tone in the coming months for a new business model that affects cable operators, programmers and consumers alike.

At issue, primarily, is the question of license fees. Most cable operators offer HD tiers free to consumers and are not inclined to pay extra for that content. In addition, HD channels are notoriously taxing to an operator's system, occupying about the same amount of space as five standard-definition digital channels.

Still, many of the incipient HD networks are optimistic that their carriage will increase dramatically as consumer demand rises.

Scripps Networks, for example, has predicted that HGTV in HD will be fully distributed when it launches early next year. "My expectation is we will be in every single hi-def household," said John Baird, executive VP of affiliates sales and marketing at Scripps. Scripps also expects to command a license fee for HGTV and Food Network in HD.

Those are bullish predictions, given that other HD networks that launched first are still angling for carriage deals with multiple system operators.

Comcast, which late last month announced it would add TNT's HD feed to its lineup, said it maintains a policy of not paying license fees for HD content.

Generally, Time Warner does not pay extra for HD either, unless the content is exclusive to the HD platform and does not have an underlying standard-definition component. Time Warner does pay for networks such as HDNet and INHD and INHD2, but it recoups that expense by charging consumers an additional fee in a paid HD tier to cover the costs. The operator also has a free HD tier with other content, such as Discovery HD Theater.



Fees in the 'Tens of Cents'

The no-license-fee stance also allows cable operators to look local broadcasters in the eye and say they don't pay twice for HD content when local stations want to be paid for their HD signals.

HD programmers need to look toward ad revenue as their core, said WealthTV CEO Charles Herring. "It seems clear the business model needs to be ad revenue, but to supplement the ad revenue, there needs to be a small amount of fees," he said.

Mr. Herring said his network has been getting license fees in the "tens of cents" per sub. WealthTV is available through some small cable operators and has inked a deal with Charter.

As a new round of networks such as HGTV, Food Network and National Geographic Channel gears up to enter the HD world next year, no one seems to doubt that demand for HD is rapidly expanding. The Consumer Electronics Association predicts 31 million digital TV sets total will have been shipped to retail by the end of this year, up from a base of 16 million at the end of last year. Nearly 90 percent of those sets are HD sets.

But when customers unwrap their shiny new sets, they may not be able to watch all that much in HD. Many networks, including Universal HD, TNT HD, HDNet, ESPN2 and new entrants such as WealthTV and the Outdoor Channel, are still in pursuit of mass distribution. Despite the broad license fee philosophy shared by the MSOs, most distribution agreements are complex, allowing for compensation to be worked out in indirect forms. These could include carriage of other digital networks, a longer-term deal or a higher license fee for other networks.

"HD is often part of a broader affiliation agreement," said Clint Stinchcomb, senior VP for Discovery HD Theater and VOD, which is fully distributed, with the exception of Cablevision. "It's not one for one, which makes it challenging for new entrants with no additional services."

Universal HD, for instance, is part of the larger NBC Universal family, with 14 properties. Universal HD, now available to 26 million homes, has been gaining momentum with new carriage deals, partly as a result of its parent company's overall attractiveness as a program supplier. "We have a lot of stuff we make available," said Ron Lamprecht, VP of new media at NBC Universal Cable.



Parceling Bandwidth

In addition to business issues, operators face bandwidth constraints. They need to parcel out capacity among SD, HD, digital, VOD, high-speed Internet and telephony, said Bob Wilson, senior VP of programming with Cox.

Still, he said it's important to try to carry as many new HD networks as possible to support a natural evolution in TV format to HD and to compete effectively with satellite. But Cox does not intend to pay license fees for HD content, he said, characterizing HD as a basic investment networks must make for the future.

Until then, networks that launched during the initial HD land grab earlier this decade are sitting pretty as new players scramble for space. "There are some networks that had a long-term vision and got in the game early," Mr. Wilson said, citing Discovery HD Theater and ESPN HD as among the networks with foresight.

Those networks are widely available in HD, but HDNet, which was launched at about the same time, is not. Mark Cuban, HDNet's co-founder, chairman and president, said bandwidth is one reason his network isn't fully distributed. Bandwidth is likely to remain an overhang until cable operators transition to all-digital infrastructure, he said.

Capacity issues are temporary, said Pamela Euler Halling, senior VP of marketing and programming for Insight. "When you launch phone, high-speed, then all the video requirements, you have to manage it carefully," she said.

HD Television: Nat Geo in Total HD Mode

National Geographic Channel has instituted a new programming strategy to ramp up its high-definition production this year as it prepares for the possible launch of an HD service. National Geographic hasn't said what form the service will take or when and if it will launch, but the network has begun telling producers that shooting in HD is the rule, not the exception.

"We are saying if you are not going to produce in HD, we don't want it," said John Ford, the channel's executive VP of programming. Producers now must have a waiver if they want to shoot in standard definition. Limited exceptions are possible.

Under the new approach, National Geographic expects to have collected 150 hours of content in HD by January 2006. By then, about 60 percent of the network's prime-time schedule will be available in HD, with close to 100 percent in HD by the end of 2006, said Laureen Ong, president of National Geographic Channel.

"There is no doubt when you think about HD, that our brand is synonymous with HD," Ms. Ong said. "It's not a matter of if, but when."

Fox Cable Networks, which distributes National Geographic Channel, has not yet approved an HD channel. Options under discussion include a high-definition simulcast of the National Geographic Channel and HD content offered on-demand.

An April study by Beta covering cable brands found that consumers ranked National Geographic as the network they'd most like to see in HD.

Changes Keep Things Lively

By Lee Alan Hill

Special to TelevisionWeek



During the 57-year history of the Primetime Emmy Awards, one would be hard-pressed to find two years in which the categories, presentation and rules were the same. The Emmys have been consistently tweaked and altered to fit the changes in television.

And this year a change that some would call radical is under way.

Come the CBS telecast Sept. 18, none of the categories honoring writers or directors will include acceptance speeches. Such speeches will be replaced by short sequences taped before the event and featuring behind-the-scenes peeks at the creative process involved in writing a winning script or directing a winning show.

How these sequences actually will be presented won't be determined until an executive producer of the telecast is named, but the change to the traditional presentation is firm. It is also firm that the snippets will not be taped acceptance speeches by every nominee, which had been speculated.

"The purpose of these changes is to make the show better, more entertaining," said Todd Leavitt, president and chief operating officer of the Academy of Television Arts & Sciences, which administers the Primetime Emmys.

"Every award show is facing a balancing act," Mr. Leavitt said. "The audience wants to be entertained, and by making this change we will be freeing up 20 to 25 minutes from the three-hour telecast for other entertaining possibilities. At the same time, we respect the work of the writers and directors, and we have obligations to put their categories on the telecast."

Since last year, Mr. Leavitt said, ATAS has spent $100,000 on both "qualitative research and focus groups" to discover what the audience wants to see on the show. What the academy found was that the audience does not know the writers and directors, he said, and "is not interested in hearing them thank their families and agents. But they would be interested in finding out more about the creative process and how it happens."

The academy is contractually bound to telecast the writing and directing awards by the terms of the agreements among the Writers Guild, Directors Guild and the networks that rotate airing the show. In return, the WGA and DGA forego any claims for residuals or royalties on clips that are aired.

An original idea offered by the ATAS board of governors in late March suggested that variety show as well as movie and miniseries writing and directing categories be shifted to the Creative Arts banquet Sept. 11, which is not televised. This sparked an instant uproar from the WGA and DGA.

Mr. Leavitt said that after discussions with the two guilds, "the directors came up with the suggestion that we've all agreed to."

Immediately after the announcement of the plan in early April, both WGA West President Daniel Petrie Jr. and DGA President Michael Apted issued statements in support of the changes. Since then, neither has been available for interview on the subject.

CBS executives declined comment on the pending changes. A network spokesman said it was "too early to comment" in light of the fact that final details of the changes had yet to be announced by the show's production team. The network will pay about $7 million for the Emmys telecast this year (TelevisionWeek, Aug. 16, 2004).

It is a telecast that, like most other televised award shows, has suffered ratings declines in recent years. According to Nielsen's NTI service, overall household ratings for the telecast last year on ABC dipped to 9.4 or 13.8 million viewers. In 2003 on Fox it nabbed an 11.8 rating and 18 million viewers.

Adding to the woes, Nielsen Monitor Plus reported that the cost per 30-second spot has also dipped. In 2004 the benchmark ad cost was $441,900 per spot. In 2003 it was $520,000 per spot.

This may explain why the changes have support from Madison Avenue, according to a top agency executive who asked not to be identified.

Bill Carroll, VP and director of programming, Katz Media TV, agreed. "The goal of the show has to be offering entertainment that celebrates achievement," Mr. Carroll said. "The reality is people want to see the stars; they don't want to see the others-however talented they are-thanking people they never heard of.

"If that sounds cold, I'm sorry, but I'm in the column of people who think there needs to be changes on awards shows, and I am glad the television academy faced up to this," he said.

The new presentation of the writing and directing categories has overshadowed other changes ATAS is considering making to the telecast, most notably the reintroduction of the best new series category, which once was an Emmy staple but has not been bestowed in 25 years.

There is also the possibility, still unresolved at press time, that the outstanding reality series category will be moved to the telecast, as was the outstanding reality series-competition category last year.





Just the Facts

The 57th Annual Primetime Emmy Awards

Administered by: The Academy of Television Arts & Sciences

Why: To recognize excellence in prime-time television

Voting process: The academy's 12,000 members cast ballots in their areas of expertise

Date of ceremony: Sept. 18

Where: Shrine Auditorium, Los Angeles

Telecast network: CBS







Key Dates for Primetime Emmys of Television Arts & Sciences Web site:



Week of June 6

Nominating ballots are mailed and posted on the academy's Web site (www.emmys.tv)



June 22

Postmark deadline for returning the nominating ballots to Ernst & Young



July 14

Nominations are announced from the Leonard H. Goldenson Theatre in North Hollywood, Calif., 5:35 a.m. (PT)



Week of Aug. 1

At-home judging tapes for Creative Arts Awards categories are mailed



Week of Aug. 8

At-home judging tapes for Telecast Awards categories are mailed



Aug. 24

Postmark deadline for returning at-home judging ballots for Creative Arts Awards categories to Ernst & Young



Aug. 31

Postmark deadline for returning at-home judging ballots for Telecast Awards categories to Ernst & Young



Sept. 11

Creative Arts, Engineering and Interactive Television Awards and banquet at the Shrine Auditorium in Los Angeles



Sept. 18

CBS telecast and Governors Ball at Shrine Auditorium

Road to the Emmys: Waxing About the Award's Impact

By Lee Alan Hill

Special to TelevisionWeek



With some industry awards, such as the Oscars, the effects of winning-instant international celebrity, a skyrocketing compensation quote-are easily definable.

In the case of the Emmys, the impact of winning is often not as immediately clear. Many winners are already under contract to series where salary bumps have been pre-negotiated and aren't tied to awards. In television career growth is determined by, in the words of Irving Berlin, "Anything the traffic will allow."

Whether those little gold statuettes will eventually lead to better roles, bigger trailers or none of the above, at the end of the night, as actor Gordon Clapp said, "The thrill is in the winning."

Here are some other observations, reflections and anecdotes about Emmy's impact from eight recent winners:



Allison Janney

Outstanding Supporting Actress in a Drama Series (2000, 2001) and Outstanding Lead Actress in a Drama Series (2002, 2004), "The West Wing"


"The day after I won the first Emmy was one of my favorite days professionally and psychologically. Most actors are self-deprecating. We think someone will discover 'I'm not talented.' So psychologically, having that Emmy that day was a release. And I now permanently have a title: 'Four-time Emmy winner Allison Janney.' Hopefully, when this run (on "West Wing") is over, that will get me some respect as well as my next job. There are also jokes to be had from the Emmy. When you're on the set and the director is giving you notes, you can pull it out and say, 'Excuse me?'"



Robert Cort

Outstanding Made for Television Movie (2004), "Something the Lord Made"


"I think if you look at the record, the types of films that win Emmys are the ones that in some ways are the most difficult to get made, that take more than usual perseverance and effort. So winning the Emmy for a project like 'Something the Lord Made' meant to us that our peers in the industry responded to that effort. They are saying, 'You guys were right to fight for this project.' The second thing is that when a project wins an Emmy more people will want to take a look at it. We know from HBO's subsequent repeat showings that this was the case. So with the Emmy, your satisfaction is multiplied."



Dennis Franz

Outstanding Actor in a Drama Series (1994, 1996, 1997, 1999), "NYPD Blue"


"I know whenever I am introduced on a talk show or at an event it will always be as 'Emmy winner,' just as I've accepted that people will always know me as Detective Andy Sipowicz, though I hope they'll know me for other roles as well. And it's nice to be introduced as an Emmy winner, but I have to say that when you win one, there's an instant gratification. Afterward, for the first week and maybe the second, people you didn't even know knew you are calling to say congratulations. Then it begins to fade, and after two months people can't remember who won. But the Emmy opens doors and has given me other opportunities."





Halle Berry

Outstanding Lead Actress in a Movie or Miniseries (2000), "Introducing Dorothy Dandridge"


"The Emmy was the most important thing at the time for me. It meant I was recognized for my work as an actor, not just for my physical [appearance], which had been the case. I thought after, at first, that the script angel was going to drop off several wonderful projects. I was that na%EF;ve. But instead, I grew the confidence to develop my own projects. When I went to speak to Colin Callendar (president of HBO Films) about 'Lackawanna Blues,' I truly believe he trusted me that this was a good project because he was thinking, 'Well, she was right about Dorothy Dandridge. She won an Emmy for that. Let's give her a shot.'"





Arnold Shapiro

Outstanding Informational Program (1979), "Scared Straight!"; Outstanding Children's Program (1994), "Kids Killing Kids"; and Outstanding Children's Program (1999, 2001), "The Teen Files"


"When I won my first Emmy for 'Scared Straight,' I couldn't have asked for more. It brought me to the attention of Norman Lear, and I joined his company as vice president of movies for two years. But the subsequent Emmys were given at the Creative Arts ceremonies, which are not telecast. So unless I decide to take them out for air and walk down the street carrying them, which of course I am not inclined to do, no one [in the industry] even knows I won them. I lobbied the Academy [of Television Arts & Sciences] to maybe give out the awards at commercial breaks or before the telecast so they can do the recipient some good, but to no avail."





Gordon Clapp

Outstanding Supporting Actor in a Drama Series (1998), "NYPD Blue"


"The immediate effect of the Emmy is the honor of being nominated, though the thrill is in the winning. But I have to say that while it was a validation of a lot of years of hard work, I don't think it made a whole lot of difference careerwise, for the simple reason I was tied up with the show. My next chance to do anything that might have been propelled by the Emmy was a year away, and you get maybe a year's window to ride the Emmy, sometimes not even that. I have a friend who won an Emmy and didn't work for a year. But the Emmy is on my resume, and I'm proud of it."





Robert Cochran

Outstanding Writing for a Drama Series (2002), "24" (pilot episode)


"What's weird about the Emmys-and in no way do I want to put them down-is that you write a script a year before, and then they are honoring you for it, and the next morning it's a greater script than it was hours earlier. One of the nicest things is that an awful lot of people from my past got back in touch with me [after] having seen me accepting the award, and we had some very meaningful, positive reunions. I don't know of anyone who regrets rejecting me, but reconnecting was very sweet. And my kids went to school the next day thinking their father wasn't quite the loser they thought he was."





John Spencer

Outstanding Supporting Actor in a Drama Series (2002), "The West Wing"


"I don't want to minimize winning the Emmy-it's sort of a celebration of you by your peers-but for me, I had been nominated two times before, so it was like getting the monkey off my back. I didn't find any sort of unique things happened after. I don't say this as a complaint. It's an observation. Even with my family. They've had esteem for me since the first time they saw me walk out on stage in a school play in elementary school. They've been wonderful about that. So winning the Emmy for me was, 'OK. Wonderful. Now on with the show.'"

GLAAD to Laud Shows

The Gay & Lesbian Alliance Against Defamation was scheduled to present the Los Angeles portion of its 16th annual GLAAD Media Awards Saturday evening at the Kodak Theatre.

Winners in the television categories being honored in the L.A. event were:

"Six Feet Under" (HBO), outstanding drama series; the "Lost Boys" episode of "Jack & Bobby," outstanding individual episode in a series without a regular gay character; "Jack" (Showtime), outstanding television movie; "Queer Eye for the Straight Guy" (Bravo) and "The Real World: Philadelphia" (MTV), which tied for outstanding reality program; and "`Los Muxes' Aqu%ED; y Ahora" (Univision), named outstanding Spanish-language TV newsmagazine.

Craig Zadan, Neil Meron and Michael Dempsey Productions are producing a TV version of the ceremony scheduled to be telecast on Viacom's Logo network on a yet-to-be-determined date during the summer.

Previous GLAAD Media Awards were handed out in New York in March, and the third and final 2005 ceremony is scheduled for June 11 in San Francisco.

Kids Upfront Gets Moving

The kids upfront is moving. But it may be going nowhere fast, buyers said.

While networks say that they've received budgets from most of the agencies and clients they deal with, the parties might be far apart on pricing, sources said.

"It's begun. We're doing business," Jim Perry, senior VP of Nickelodeon Ad Sales, said Friday. He said budgets from advertisers began coming in the week of April 17 and then picked up: "Most of the budgets came in this week, and we're almost fully registered at this point."

Based on the budgets registered, "There is without question more business than there was a year ago," he said. "Demand is up, and it's up across the movie studios, it's up across the mid-tiered toy companies, it's up for video games and it's up for packaged goods business. We like what we're seeing."

Mr. Perry said pricing varied depending on the time of year in which the advertising will run. "There are significant price increases happening in the holiday fourth quarter and in pre-Easter," he said. But for the rest of the year, the increases are "a couple of ticks below where they were a year ago."

He said this week will be the telling week as the pace of deal-making picks up.

Mr. Perry added that advertisers are showing much more interest this year in advertising on Nickelodeon's online properties and are buying it during the upfront. Sources said Cartoon Network has received the bulk of its budgets and has begun making deals.

"We have a larger percent of our budgets in as well," said Tricia Wilber, senior VP of advertising sales and promotions for the Disney ABC Cable Networks Group. She said the budgets were about what she'd expected, with no big surprises: "We're pleased with it."

No deals had been closed as of last Thursday. "We're negotiating at this time," she said.

But some buyers refuse to be rushed to market.

Jon Mandel, chairman U.S. and chief global buying officer of MediaCom, said his agency, which handles a big chunk of kids advertising, hadn't submitted its budgets to the networks.

"It's like `What if they gave a market and nobody came,"' Mr. Mandel said, accusing the networks, Nickelodeon in particular, of trying to stampede buyers into making fast deals in a soft market.

"They were saying, `We've got everybody's budget.' And it's like, we all know you don't," Mr. Mandel said. "There's a difference between lying and selling, and it ain't soup yet. It isn't even out of the can."

He said as far as he knows, only a handful of deals have been done, including some with some DVD and movie companies.

As a big fish in a consolidated kids market, Mr. Mandel said he can make his deals at any time. "There is no such thing as a kids upfront. That's old school. You do it whenever you do it."

Ms. Wilber acknowledged that sellers want to see some action. "I'm sure there was a lot of push to get the market started from all realms, and I think what we saw was that when the clients were ready they registered their budgets," she said. "They wanted to have the best information, and we certainly respect that."

Sellers Seeking Increases

Last year about $800 million worth of business was done in the kids upfront, and sellers are looking for cost-per-thousand increases in the mid- to high-single-digit range after several years of little growth.

Shelly Hirsch, chairman of Summit Media Group, which has roughly 35 kids clients, said the market doesn't appear to be that strong because there is some question regarding the health of the business, specifically regarding Toys R Us and KB Toys, two large toy retailers that may be selling off or closing operations.

With Nickelodeon trying to price deals high, some buyers have moved to do deals first with Cartoon Network. Cartoon Network's inventory is tightening up because its Adult Swim block has been sectioned off as a separate network and because it is launching a preschool block. A more limited group of advertisers sponsors programming aimed at preschoolers.

Toy manufacturers still make up the majority of spending on kids television. Home video entertainment is the next biggest category, followed by food.

Some food marketers, including Kraft, have been rethinking their media efforts because of increased scrutiny on advertising for kids and its relation to juvenile obesity. While Kraft won't advertise some products, such as Oreos or Kool-Aid with sugar, to kids, it will market products that have nutritional benefits.

While the networks expect food advertising to be unchanged, analysts estimate that all food advertising targeted to kids could drop $100 million.

Discovery's Shark Week a 'Jaws' Nod

Coming off a much-needed ratings rebound last month, Discovery Channel hopes to continue its momentum as it gears up for Shark Week, the network's annual July jaws-fest.

This year Shark Week will be themed to coincide with the 30th anniversary of the release of Steven Spielberg's classic film "Jaws."

The network will air the world premieres of "Shark Attack Survivors" (survivors of great white attacks tell their stories), "Shark Hunter" (the story of Frank Mundus, who inspired the Captain Quint character in "Jaws") and "American Shark," (exploring sharks' hunting grounds throughout the United States). The week will be kicked off by a previously announced tie-in special with urban-legend-testing reality show "Mythbusters."

This is the 18th year Discovery has aired a marathon of dorsal fins, chumming and feeding frenzies that the network claims is the longest-running cable programming event. The week typically increases the network's average viewership. But according to Nielsen Media Research, last year Shark Week fell off 4 percent from 2002 and more than 36 percent from 2003.

Phil Fairclough, Discovery Channel's acting general manager and VP of production, said Shark Week hasn't, well, jumped the shark.

"I can firmly lay to rest the myth that Shark Week has jumped the shark," Mr. Fairclough said. "There's an enduring fascination with sharks and there's no shortage of amazing stories of sharks and people who've survived encounters with sharks and new shark science. It's the one creature everybody wants to talk about.

"What we've done this year is try and marry the new young dynamic audience that we've got from `Mythbusters" and use that to kick off the week."

Gay Net to Bump VH1 Spinoff

In a highly unusual move, Viacom is sacrificing one of its digital channels to secure distribution for its planned gay-themed network, Logo.

The low-profile diginet spinoff VH1 Mega Hits will be replaced by the new network, which launches next month. The move is designed to grease the wheels with bandwidth-strapped cable operators who have otherwise resisted Viacom's efforts to expand its 13-channel digital suite, especially with a brand that's prompted fears of a conservative backlash.

Logo has distribution deals with Time Warner, RNC and Adelphia and is in final negotiations with Comcast. Sources said Cox also is in negotiations for a carriage agreement.

VH1 Mega Hits debuted in 2002 and is the most recent addition to MTV Networks' 13-channel Digital Suite package, which includes VH1 Classic, Noggin and Nicktoons.

Nicole Browning, president of MTV Networks affiliate sales and marketing, said several factors influenced the decision to rebrand an existing channel. "Part of the strategy was to be responsive to the bandwidth constraints of cable operators and part of it was we thought we had a very viable product and wanted to get it out quickly," said Ms. Browning, who noted that MTV Networks' satellite bandwidth was also crowded.

Experts said Viacom's Logo distribution plan may be the first of its kind-and likely will not be the last. When cable operators began rolling out digital set-top boxes in the 1990s, there was a demand for additional channels from proven content providers such as Discovery Networks and MTV Networks. Today operator bandwidth is much more valuable and some channels that were quickly slapped together with leftover content arguably are now worth less than the channel space they occupy.

"The Logo situation is pretty unique given that the content of VHI Mega Hits is not at all the same as Logo," said Cathy Rasenberger, a cable distribution consultant. "I think it will increasingly become the necessary route for the big programming groups to use when trying to launch new networks because of the terrible bandwidth restraints these days. Even with the leverage of Viacom, they would find it very difficult to launch Logo to a meaningful number of subscribers without offering up another channel from their digital suite."

Media analyst Larry Gerbrandt agreed. "Diginets with little or no license fees are not doing very well," he said. "If some of these aren't working, switching it out for something fresher makes a lot of sense. It shows how little capacity there is out there that they would have to look to swap real estate."

Experts liken the distribution market to a town that has been built to capacity. . Developers-in this case cable programmers-may need to turn to their least valuable properties and rebuild them from the ground up in order to grow.

"As things really get saturated, we may see more rebranding of existing channels," said Brad Adgate, senior VP and director of research for Horizon Media. "Discovery would not have taken off a channel to put on Animal Planet [in 1996]. But now, to exchange one with another, yeah, that could happen."

As part of their carriage contracts, programmers cannot radically rebrand a channel space without approval from cable operators. Some operators have been inclined to carry Logo in markets deemed most open to the network's brand of programming. Time Warner, for instance, plans at this time to carry Logo only in Manhattan. MTV Networks' Ms. Browning said Logo's carriage will expand beyond the obvious markets, though she declined to name any such areas that will carry the channel.

Viacom's offer to switch out VH1 Mega Hits makes Logo more attractive to reluctant operators, while demonstrating the company's commitment to making Logo a major destination, sources said. But one senior programming cable operator executive described the swap as a mixed bag.

"By doing this, they're basically saying `We sold you a digital suite of networks, but this one isn't any good,"' he said. "On the other hand, they have a better story to tell with Logo than with the VH1 thing. And unlike most of their suite, this sounds like this is something they're going to put some money into."

Logo is one of three gay-themed networks currently vying for distribution, along with Regent Entertainment's here! TV and the independently owned Q Television.

Q is on the air in Boston, Seattle, New York and San Francisco, all through RCN. Here! TV has deals with several cable operators, including Comcast, but strictly as an on-demand service.

From the time Logo was announced in May of 2004, the network was considered a carriage front-runner due to Viacom's enormous leverage with cable operators, the ability to sacrifice an existing channel to make room for Logo being a perfect example.

Wayne Friedman contributed to this report.

ABC Adds Pickups, Sets Summer Schedule

ABC last week added the Tuesday sitcom "According to Jim" and Sunday night family show "America's Funniest Home Videos" to its list of early pickups for the 2005-06 season. The network also announced its summer slate of programming.

ABC will premiere four new reality series and the six-hour ancient Rome drama "Empire" this summer and run repeats of its current top 10 drama "Lost" and reality series "Supernanny" in new time periods, with hopes of introducing the shows to an additional audience.

  • On Wednesday, June 1, at 8 p.m. (ET), "Supernanny," which currently runs on Mondays at 10 p.m., will begin its rebroadcast. At 9 p.m. the network will launch the six-part dance competition series "Dancing With the Stars," in which six celebrities are paired with professional dancers for a ballroom dance competition. "Lost" will also rerun its first season at 10 p.m. starting June 1.

  • "The Scholar," which has high school students competing for a college scholarship, will premiere Monday, June 6, at 8 p.m.

  • A two-hour premiere of "Empire," which profiles the rise of Roman Emperor Augustus, premieres Tuesday, June 28.

  • In addition, "Brat Camp," which profiles the rehabilitation of six troubled teens, and "Welcome to the Neighborhood," which pits potential homeowners against their new neighbors for the chance to win a free house, are both slated for July debuts.

  • New episodes of the returning reality series "Wife Swap" are also slated for summer.

    ABC has already picked up "Alias," "Boston Legal," "Desperate Housewives," "Lost" and "Extreme Makeover: Home Edition" for next season.



    NBC Announces Summer Reality Slate

    NBC announced last Thursday it would premiere four new reality series and bring back new installments of its "Average Joe" and "Biggest Loser" franchises.

  • On Tuesday, June 21, at 8 p.m. (ET), NBC will launch the two-hour premiere of "I Want to be a Hilton," which features Kathy Hilton (Paris and Nicky's mom) picking one of 14 contestants to spend a year living as a member of the ubiquitous family. "Hilton" will move to a one-hour 9 p.m. run starting June 28. At 8 p.m. that day, the network will debut "Average Joe 4: The Joes Strike Back."

  • David E. Kelley's eight-episode foray into the unscripted arena begins Wednesday, July 27, at 8 p.m. with "The Law Firm," in which trial attorney Roy Black supervises competing attorneys in trials that have real cases, judges and juries.

  • On Aug. 3 "Firm" moves to 9 p.m., with "Meet Mister Mom," a show that has dads taking care of their families while their wives spend a week relaxing, opening the night at 8 p.m.

  • On Tuesday, Aug. 9, at 8 p.m., "Biggest Loser 2" opens with a 90-minute premiere, followed at 9:30 p.m. by "Tommy Lee Goes to College," featuring the M%F6;tley Cr%FC;e star.

    Fox Picks Up `Nanny 911'

    Fox picked up a second season of its unscripted Granada America-produced series "Nanny 911." In its Monday 8 p.m. (ET) time period, "Nanny" has been a performer among adults 18 to 49 and teens.



    New Series in Development for Bravo

    Bravo has more than 30 new series and specials in development and production and plans to increase its original programming slate by 25 percent from last year, network President Lauren Zalaznick said at a press briefing last week. Beginning in June, the network will launch series and specials including "Sports Kids Moms and Dads," "Hidden Howie: The Private Life of a Public Nuisance," "Kathy Griffin: My Life on the D-List," "Situation: Comedy," "Being Bobby Brown" and "Battle of the Network Reality Stars." Ms. Zalaznick said the network posted its best first quarter ever, adding viewers and lowering its median age while retaining its status as No. 1 among upscale households. The new series are designed to further diversify Bravo's program lineup so the network can avoid being pigeonholed as the "Queer Eye" network, Ms. Zalaznick said. Returning shows, however, will be a foundation of the network's lineup. Those shows include "Queer Eye for the Straight Guy," "Celebrity Poker Showdown," "Blow Out," "Project Runway" and "Inside the Actors Studio."

  • Upfront Navigator

    WB Returning to Testing Pad

    Trials Still the Nets' Scheduling Staple


    By Christopher Lisotta



    The WB, which last year was the only broadcast network that opted not to incorporate pilot testing results into its scheduling decisions, is returning this week to the practice of using audience feedback to help shape its 2005-06 season lineup.

    Traditionally, in the weeks leading to the upfronts, which kick off May 16, all six networks have taken into account information gleaned from test audiences when deciding which shows to greenlight. But in March 2004 Jordan Levin, then co-CEO of The WB, told TelevisionWeek his network was abandoning pilot testing as a factor in scheduling decisions.

    Mr. Levin has since left The WB, and the network is going back to business as usual under former studio executive and producer David Janollari, who came on board as president of entertainment in June 2004. Mr. Janollari declined comment for this story, but a spokesman for The WB confirmed the network has resumed testing with audiences through an outside research firm.

    For years networks have hired research firms to select a number of viewers to watch pilots and give feedback on what they like about a potential series and why. An entire pilot testing industry of moderators and analysts has grown up around networks, which hope to gain information about how a show will do once it makes it to air. But the failure rate of shows that seemed to perform well in tests and the success of pilots that apparently fared poorly in the system drove Mr. Levin to skip the practice last season.

    "We want to filter the noise out," Mr. Levin said of audience testing in 2004. "We're investing in the management team to make tough decisions and trust their guts."

    Mr. Levin is not alone in his skepticism of the efficacy of putting pilots in front of test audiences. Insiders, for instance, consistently point out that former NBC sitcom "Seinfeld," one of the most successful series in television history, initially did not test particularly well.

    In fact, executives agree, pilot testing is not a guaranteed predictor of series' ratings success. Rather, its value is more specific, giving networks data on a pilot's tone, demographic appeal, character development and cast chemistry. This kind of information can influence or reinforce network decisions on whether or not to pick up a show.

    Despite any misgivings, network executives said that when used in the right context, the information provided from tests can be a great guide as they whittle down their options for their new schedules.

    "It will never tell you if something is going to be a success or not," Jeff Bader, executive VP for ABC Entertainment, said of pilot testing. "Where it's most useful is helping you with direction. It might help in indicating something in tonality. It does give you some insight into what an audience does latch onto the most."

    Mr. Bader said ABC, which is resurging in the ratings this season with the success of its first-season dramas "Desperate Housewives," "Lost" and most recently "Grey's Anatomy," is following the "exact same" testing strategy as last year: focus groups with selected viewers in multiple markets outside of Los Angeles and at-home testing through cable television.

    Viacom-owned CBS and UPN, both of which declined to comment for this article, are testing pilots at the company's research facility in the MGM Grand Hotel in Las Vegas. NBC confirmed it is staying the course from last season and is using focus groups and cable tests to get viewer feedback.

    Mr. Bader said one of the most important pieces of information to come from pilot testing is what demographic is likely to respond to a pilot. Last year, for example, ABC was confident "Housewives" would do well among women but expected the show to attract a limited male audience. Data yielded from audience testing of "Housewives" indicated men liked the show as much as women. The series turned out to have broad appeal out of the box, just as the testing indicated it would.

    "Had you seen the pilot and not seen the testing, you might have thought it wouldn't have male appeal," Mr. Bader said.

    Starting this week ABC also is continuing its practice of showing pilots to a range of network staffers, whether they are new assistants or veteran executives. Mr. Bader said the network is sticking to its method of employee viewing, which eschews screenings in theaterlike settings and requires staffers to watch in small groups on televisions.

    Fox also will have employees screen pilots in smaller settings starting this week.

    After Preston Beckman, Fox's executive VP of strategic program planning and research, came to Fox from NBC three years ago, he brought the practice of gathering groups of a dozen or so staffers together to watch pilots in conference rooms or offices.

    Mr. Beckman declined to discuss how Fox tests pilots with sample audiences but said Peter Liguori, the network's new president of entertainment, was keeping the in-house viewing procedure the same for this pilot season.

    "He was happy with the process," Mr. Beckman said, noting that Fox's system allows even the most lowly assistant to critique a pilot without retaliation from development executives.

    "We do it in a way that is nonthreatening," he said. "We make sure there is a real distribution in terms of titles and responsibility, so you really don't find yourself with a group of all development people."

    The Fox in-house screenings, which last about six days, also require employees to stay within the same group.

    "Because you're with the same group every day, you start getting pretty comfortable with your opinions," he said.

    The groups include some of Fox parent company News Corp.'s most senior executives, even Chairman and CEO Rupert Murdoch himself.

    "He's very respectful of people's opinions," Mr. Beckman said of Mr. Murdoch. "Most people aren't afraid to tell him what they think. And he wants to hear it."

    Like Mr. Bader, Mr. Beckman said there are things to be learned from pilot testing, beyond whether a screening audience likes a pilot or not.

    "You want people to think as broadcasters," he said. "Sometimes there is a tendency to think as art house critics."

    He also said that while a pilot may be a great piece of film, staying power has to be considered. "You really have to separate between a great pilot and a great TV series," Mr. Beckman said. "You have to stop and say, `What's episode 10?"'

    Outperforming the Norms

    Both Mr. Beckman and Mr. Bader said the key to analyzing pilot testing results, whether they're from in-house employee tests or out-of-house sample viewers, is looking beyond the general audience reaction.

    "When you say a pilot tests great, on what critique are you talking about?" said Mr. Bader, who pointed to ABC's 1990s sitcom "Home Improvement," which scored average numbers overall but performed very well in some male demos and very poorly among some groups of women.

    "If shows are polarizing at all, it's going to affect your overall score," he said. "A high negative isn't bad if you have a high positive with it."

    An NBC executive familiar with the testing process said a pilot that tests particularly high may be a sign that a show is merely comforting to the test group or is the kind of program audiences think they ought to watch but don't tune in to once it makes it to air.

    "The hits are kind of hidden in that middle, upper-middle range," he said.

    Besides narrowing down what demographic profile likes the pilot the best, focus group testing can give networks an idea of an audience's intent to view the series and what story lines and characters resonated the most.

    Often, villains in pilots can register negatively with audiences, even though viewers' reactions don't initially take into account the love-to-hate factor that the strongest black-hat characters can bring to a potential series. To override that, networks look at "norms," or audience reactions of similar characters in past pilots, to best gauge success.

    "There are villain norms," Mr. Beckman said. "You can't look at a number in a vacuum."

    Mr. Bader pointed out that anyone who touts his project as "the highest-testing pilot of the season" does so at his own peril, since just as with characters, shows with different formats have to be evaluated against comparable pilots.

    "Dramas tend to test better than comedies in general," he said. "You can't use an overall number to compare the two."

    Mr. Beckman described as accurate the "Seinfeld" testing mantra that dictates that shows that strike a tone different from what is generally expected on television fare poorly.

    "A good rule about pilot testing is that the less work you have to do on a pilot, the better it is you're going to test," he said. "If you do something that's very different, it generally doesn't test well. That doesn't mean you don't put it on your schedule."

    And in terms of reality shows, Mr. Bader said it is almost impossible to test alternative pilots with sample audiences since the myriad reality formats make it difficult to make comparisons. In the age of spoiler Web sites, networks are especially wary of showing even sample audiences shows with an elimination ceremony or a surprise ending, since the reveal may be leaked to a broader audience. But editing pilots to eliminate the surprise doesn't work either.

    "If you don't show that it will completely alter the viewing experience," he said. "They are very, very difficult to test."

    Ultimately, Mr. Beckman said, networks will take into account testing reactions, but a small group of executives at each network has to eventually close the doors and decide which select pilots make it to air.

    "There's a difference between having 80 internal members of this Fox family screening pilots and scheduling the network," he said, noting that he is one of the few who gets to sit in on the meetings where the schedule gets hammered out. "I couldn't do it without hearing what other people have to say. There is no one I worked with here or at NBC who goes into the schedule room and says, `It doesn't matter what I heard from anybody, this is what I'm going to do."'



    It's Time to Put Pilots to the Test

    For Don Bellisario, Good is Not Enough

    Most of broadcast television is run by relatively youthful producers, directors and writers. Older creative types, writers in particular, often find it difficult to get assignments.

    Conventional wisdom among many studio and network executives holds that it takes a younger writer to create material that will attract a younger audience, which is what advertisers want most. Over the years this has led to charges of ageism by some writers, various guilds and others, often with justification.

    Just don't tell that to Donald P. "Don" Bellisario, who will celebrate his 70th birthday in August. He is busy executive producing the CBS series "NCIS," for which he also writes many of the scripts and often directs. He was so busy recently that he had to pass on taking an active role in the making of Sci Fi Channel's "Quantum Leap: A Bold Leap Forward," based on the hit science fiction series he created and executive produced for Universal and NBC from 1989 through 1993.

    Getting writing and producing assignments when you are old enough to qualify for Social Security "has nothing to do" with ageism, according to Mr. Bellisario: "It really goes down to talent. God gave you talent. If you've got it and you work hard at it, you can succeed. What I find with most writers who are older is that they've lost the fire in the belly, if they ever had it. What they do is they just do the old, `That's good enough. I've been down this road. I've done it before.' Well, it's not good enough. I can tell you I have never said, `That's good enough.' Never."

    That attitude has helped make Mr. Bellisario one of network TV's most prolific creators over the past quarter-century. His hits have included "Magnum, P.I.," "Airwolf" and "JAG," which this season is concluding a 10-year run. He has also had his share of flops, like "First Monday," but even those were fairly noble failures because they were well made.

    While the cancellation of "JAG" doesn't surprise Mr. Bellisario because he knew it was drawing too old of an audience, he is sorry to see it go. "What hurts me is that I have to lose people that I've worked with for a long time," he explained. "They'll get other jobs and that's fine, but it's not the same thing. You try and keep your people together. I've worked with some of those people for 20 years on different shows." Is that out of loyalty? "It's because if I find somebody who does a good job," he replied, "I keep them."

    Not everyone sticks. Mr. Bellisario can be highly critical when convinced someone is not living up to his standards. He is known for giving a lot of young talent an opportunity, but some who have worked with him said that's partly because he wears some veterans out and they move on.

    Mr. Bellisario said he has high standards as well as a strong work ethic. "I do get frustrated at times," he added. "There is a difference between meeting my standards, doing the best job you can do and not being able to do it. That's one type of person. The one I have a difficult time with is the person who says, `That's good enough' and just lets it go at that. Or the person who doesn't really work at it or gives up or takes the easy way out, or in other words, takes a shortcut rather than do it right. That's when I get very harsh, or not harsh, but say, `This is unacceptable.' And I have picked up the pieces from those kinds of people on every show I've had."

    Mr. Bellisario learned the meaning of hard work early in life. He was raised in coal-mining country about 25 miles southwest of Pittsburgh. Shortly after prohibition ended, his dad opened the only tavern in a three-town area filled with immigrant Serbs, Italians, Poles and others. "It was a melting pot," he recalled. "They were very hard-working, dedicated people who came to America to make a new life. And that work ethic stuck with me."

    When he wasn't working in the bar, the young Mr. Bellisario worked in factories, mowed lawns, did road construction and held other low-paying jobs. He went to Penn State for a short time, then joined the Marines and learned to fly. By the time he returned to finish college, he had a wife and two children. "I never envied anyone who had something," he recalled, "because I always felt some day I'll have something."

    His first career was as a newspaper reporter. His second was in advertising, during which time he taught himself how to use a 16millimeter motion picture camera so he could shoot commercials. By the time he was 39, he was a senior VP and creative director of an ad agency in Dallas. But as his 40th birthday approached, he hungered for a third career.

    After spending a year trying unsuccessfully to convince his wife that he should quit his job, pack up and move to L.A. to make movies, he just walked away from his old life. They got a divorce and he was on his way, though it was a bumpy start. He found some work as a TV commercial director but learned it wasn't easy to sell movie screenplays. Then he found an agent who asked him if he had ever considered writing for TV. With his money about to run out, he was willing to try.

    He wrote his first script for the show "Baa Baa Black Sheep," a military action hour starring Robert Conrad, drawing on his military and aviation background. Producer Stephen J. Cannell was so impressed he made Mr. Bellisario, then 42, a story editor. Soon he was writing and producing for a number of action hours at Universal, which was then a major supplier to NBC and other networks.

    Actor Tom Selleck read some of his scripts and remembered Mr. Bellisario when he was offered a new series. That became "Magnum, P.I.," which was an instant success and, from its second season on, a huge hit. And he has been at it ever since, through show after show, several more marriages and more children (he has nine, including stepchildren).

    "I never see myself retiring," he said. "I see myself slowing down. My wife hopes I'll slow down. I mean, I keep a pretty heavy, active schedule. Most of my friends my age are retired. What I've noticed is they all retire and then come out of retirement because they're going nuts ... What I want is a life where I work on my shows, or a movie, or whatever, get in the action and do it, and then take some time off and enjoy it. Because I have never had the time to enjoy what I've done. And that's what I really want to do."

    Mag Rack Eyes More Original Programming

    Rainbow Media's Mag Rack is looking to change from a video-on-demand brand to a television brand.

    "People don't watch technology," said Dan Ronayne, senior VP and general manager of Mag Rack.

    The service is using the slogan "TV for Whatever Turns You On" for marketing; it appears, for example, whenever a viewer watches one of Mag Rack's programs.

    Over the past six months Mag Rack has added 556,000 VOD-enabled households, bringing the number of households that can view the service to 3.5 million.

    Like a regular cable channel, Mag Rack gets a monthly per-subscriber fee. Actual viewership of Mag Rack's programming doesn't affect the amount it gets from operators.

    Mr. Ronayne declined to say whether Mag Rack is in the black now that it's 4 years old.

    Charter Communications has added Mag Rack in more markets, and Adelphia has put the service on systems in Colorado Springs, Colo., New England/New Hampshire and West Palm Beach, Fla.

    Mag Rack reached a distribution deal with DirectTV to include shows from Mag Rack on DirecTV's FreeView Events channel. If a viewer likes the show, he or she will have to get cable to see more Mag Rack, because video-on-demand is not available via satellite. Gregg Hill, president of Rainbow Network Sales, said Mag Rack is talking to other multiple system operators, including Cox Cable.

    Mag Rack has been creating more original programming for VOD. Mr. Ronayne said about 50 percent of its current programming was created by or for Mag Rack. The service offers viewers 40 hours of programming per month. About 25 percent is replaced per week.

    A favorite for operators has been a series of programs dealing with movies that are being released to VOD. This month, Mag Rack is working with 20th Century Fox on "`Sideways' & Wine." Segments include a walking tour of Santa Ynez, Calif., where the movie was set. Mag Rack will also offer the theatrical trailer.

    In previous months Mag Rack has run specials on films, including "Ray" and "School of Rock." These programs "drive VOD movie buys for cable operators," Mr. Ronayne said.

    Mag Rack recently launched a broadband site that is a companion to its VOD service. The site is available only to subscribers on cable systems that carry Mag Rack. Programming includes titles that are also available on the VOD services as well as some from the Mag Rack library.

    E! Exec Adds Comcast Role

    Comcast has tapped another senior E! Entertainment ad sales executive to oversee sales for the cable company's array of networks.

    Neil Baker was named executive VP of E! Networks and Comcast Network Sales. Mr. Baker had been senior VP of ad sales at E! He follows Dave Cassaro-formerly senior executive VP of sales and distribution for E! Networks-who was named president of Comcast Network Sales when the department was created last year to amalgamate the sales efforts of Comcast-controlled networks E!, Style Network, Outdoor Life Network, G4, AZN Television and Sprout.

    Mr. Baker said he's worked with Mr. Cassaro at CBS, Fox and E! and that he is excited about his new position.

    "A lot of advertisers seem to be looking for very targeted ways to reach their consumers," Mr. Baker said. "Each network is upscale and targeted. These are all passion-oriented networks."

    In some cases, Comcast will try to sell advertisers a package of several networks. "For Revlon, several make sense. For Budweiser, several others make sense," he said. "We will take a custom approach across all of our businesses."