ISSUE 7, NOV-DEC 2016
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THE PSYCHOLOGICAL ASPECT OF THE MEDIA: HOW TO COMBINE CREATIVITY AND RATIONALITY PAINLESSLY? page 49
HOW IS MEDIA BUSINESS IN BRUNEI BUILT?
page 5
WHAT CONTENT RAISES RATINGS ON KAZAKH TV CHANNELS? page 8
THE CLASH OF INTERESTS BETWEEN TV CHANNELS AND OPERATORS – WHERE IS A GRAIN OF TRUTH? page 19
Following the voice of your dream page 13
WHY YOU SHOULD VISIT THE DISCOP DUBAI? REASON #1 | A RAPIDLY GROWING MARKETPLACE
DISCOP DUBAI targets broadcasters, pay-tv and mobile operators, online distribution platforms, international and regional distributors, international and local TV and web producers, satellite companies, advertising and marketing agencies, and consumer brands driving multiplatform, multiscreen content business across 35 strategic countries in the Middle East, North Africa, the Indian Subcontinent, Oceania and South-East Asia. With birth rates that are among the highest in the world, these 35 countries boast a combined population of 3 billion people, young and educated demographics and economic resilience. For instance, with more than 20% of the world’s total population, the nations that make up the Indian Subcontinent comprise a rapidly expanding economic region, with India poised to become the most populous country in the world in the next decades. Despite the fact that like everywhere else, consumers shift their attention to multiple screens, television remains the most used by consumers and TV advertising accounts for the bigger chunk of media buying. Acceleration of Pay-Tv penetration is expected in most countries: the number of subscribers in the Middle East and North Africa, for instance, will continue to grow in coming years, reaching 6.54 million households by 2010. the most of information will really help you to make sure of correctness of your decisions and strategies developed. It’s such a time now when our life cycle transfers into a new form, and starting from 2017 we will become known as «MediaCompass» publishing house. The publishing house that is aimed to help the management to make right management decisions, telling about the experience of foreign colleagues, providing an important analytics, telling about global trends and tendencies, as well as discovering new talents and new possibilities.
REASON #2 | AN AGENDA DRIVEN BY BUSINESS AND NETWORKING OPPORTUNITIES
Built for business and designed for success DISCOP DUBAI will bring together 1500+ qualified delegates for a 3-day agenda driven essentially by a market powered by pre-organized meetings, premiere screenings of upcoming TV and web shows, and high-level networking opportunities. Among them, and at a time when optimizing TV and web content is of crucial importance, 200+ advertisers, who increasingly play decisionmaking roles in the scheduling and development of new shows, will be part of many con- versations and drive the question of content value to the forefront of DISCOP DUBAI. As sales of Ramadan content surge in the countries covered by DISCOP DUBAI where Muslims represent the majority population, the 3-day market and screenings program will also showcase scripted and educational programming - especially Arabic and Turkish series - specifically available for the month-long Ramadan celebrations. The 2760m2 market floor (MADINAT ARENA) will feature meeting tables, furnished and unfurnished 9m2 stands, 36m2 islands, country pavilions and a matchmaking lounge for non-exhibiting delegates. Within steps of the market floor, a 1880m2 area (JOHARAH) will threee private screening rooms welcoming up to 100 guests for customized morning and afternoon presentations with pre and post cocktail opportunities, and well-defined spaces for hospitality, reception, interviews and, of course, talent, VIPs, entou- rage and press.
Corporations, sponsors, media brands, and trade associations will also have the opportunity to organize morning and afternoon cocktails on a magnificent outdoor terrace located nearby the market and screenings areas, with valet access, bar and restaurant facilities. These RSVP networking events will be dedicated to specific groups of DISCOP DUBAI dele- gates and local representatives from government, the private sector and regulating bodies to allow them to meet, network, exchange ideas and conduct business in a confidential and comfortable environment.
REASON #3 | GUARANTEED MEETINGS
DISCOP DUBAI will deliver guaranteed meetings between all qualified delegates thanks to a matchmaking program to be activated two months prior to the event. The program will enable exhibitors and pre-registered delegates to view profiles of participants and select those they want to meet at the event; access an online diary allowing attendees to send requests and respond to them, and monitor confirmations; and chat 24/7 with DISCOP’s multilingual support team. For organizational purposes, delegates are required to register early, and are grouped under the following cate- gories to facilitate the preliminary organization of meetings: 1. SELLERS | International and regional distributors of content, adaptation rights and packaged channels. 2. BUYERS | Content distribution platforms operating in in the Middle East, North Africa, the Indian Subcontinent and South-East Asia; international and regional distributors; and local format producers. 3. PRODUCERS | International and local TV and web content producers with projects in development, works in progress and finished content 4. INFLUENCERS | Advertising and marketing agencies, consumer brands, star bloggers and journalists.
REASON #4 | DUBAI IS A COST-EFFECTIVE DESTINATION
The mix of a cosmopolitan city and state-of-the-art resorts make Dubai the perfect place to host and attend trade shows. Dubai is actually a hub of cutting edge style and sophistication and the MADINAT JUMEIRAH - where DISCOP DUBAI will be held - is the city’s largest resort, with its meandering waterways and canals and its superbly designed world-class amenities. The hotel is also home to venues suitable for business events, shops, restaurants, clubs, and bars and welcomes the Dubai International Film Festival. Delegates will be provided a 30% discount on official room rates, as well as a 10% discount on EMIRATES airfares, DISCOP DUBAI’s official airline partner and one of the youngest fleet in the world connecting Dubai with 150 cities in six continents.
Patrick ZUCHOWICKI JUCAUD General Manager | Head of Sales The DISCOP Organization Tel: + 1 (323) 782 13 00 patrickzuchowicki@basiclead.com
EDITORIAL
THE BOOK OF RULES
EDITOR’S NOTE Is there the Book of Rules that will lead you and your company to success? There is one. But only if you’ve written the one by yourself. And you keep on writing. As each process has its own life cycle: if we talk about business, that is Idea, Product, Characters (everyone who is involved in the business creation process), Code (of relationship between the partners and positioning of your company). This process has the ability to be updated and to start each time in new shapes and forms, but if you stop at any of these stages, your Book of Success will come to an end. It’s clear that we are all looking only forward, and all the time each of us is adding new pages at the end of the first volume of personal history, or files it in archive and creates a new one. Eternal tending of its creator is the will to note less failure moments on each of new pages. Therefore, in order to avoid potential mistakes, everyone is trying to learn other people’s archival records. This surely makes sense - you won’t do the mistakes of someone else, and remembering that experience you may avoid or evade such mistakes. In this issue, we will try to collect the most diverse experience and tell you about the possible obstacles and their solution with small losses. Sincere answers of our speakers will have a special value for you, if you are working at an international level. We hope that the most of information will really help you to make sure of correctness of your decisions and strategies developed. It’s such a time now when our life cycle transfers into a new form, and starting from 2017 we will become known as «MediaCompass» publishing house. The publishing house that is aimed to help the management to make right management decisions, telling about the experience of foreign colleagues, providing an important analytics, telling about global trends and tendencies, as well as discovering new talents and new possibilities.
DENYS MIKHEIEV
General Director & Publishing Director MK Media Group
Make sure you stand in the right direction and go!
Published by MK Media Group mkmediagroup.tv Kateryna Dmytriieva Svetlana Konar CEO & Editor In Chief
Managing Editor
Yana Sereda Editor
Dmytro Zakharevych Analytical Editor
Web: sstrnews.com E-mail: info@sstrnews.com
Andriy Bezhynov Design
Tel: +38 (067) 236-55-73 content@mk-distribution.com
© 2016 Season Screen TV Review. Reproduction without perission is prohibited
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OPPORTUNITIES IN «FRESH» TERRITORIES Kazakh viewers prefer content containing family values, and Brunei welcomes to open branches in their country emphasizing on the fact that there is an exemption from taxes in the country.
ON THE PULSE OF CHANGES Airlines spend $ 15,000 to equip one passenger seat with the video equipment on a plane. Nevertheless, these days about 60 airlines around the world provide access to WI-FI on their planes.
INSPIRED BY A DREAM What motivation and how much courage does one need to have to change his life completely and start travelling, shooting videos and making living on it?
BATTLE FOR PLACE IN THE SUN AND RATINGS. B2B IN MEDIA Providers dictate the rules of the game within «operator-channel» relationship. The audience influences the operators. Content is the king for the audience. At the peak of topicality: what are the competitive practices between the TV content providers themselves?
REACHING THE TOP TOP 5 new products and gadgets of the outgoing year, which became breakthroughs in the media industry.
IS THERE A PLACE TO MAKE YOUR TALENT KNOWN? Film festivals that are worth noticing in order to promote your content and spin up your name.
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ON THE AGENDA: CLOYING QUESTION Censorship or Business? Challenges or Opportunities? Barriers or ordinary inactivity?
ABOUT CREATIVE WITH HUMOR AND COFFEE. A LOT OF COFFEE How video commercials are created and what are the territorial differences?
HOW TO EARN MORE? Distribution of films. How much do TV channels pay for an hour long content and what is the audience of CIS, Latin America and Asia countries willing to watch?
THE ADAPTATION OF MENTALITY Without proper adaptation your brilliant script may become just a pile of weird and inadequate text for the potential foreign partners.
NEW AGE IN MEDIA What is business ethics and corporate culture and why is it important to the media business? What is the role of media psychologist?
NEW CONTENT What new products do TV productions offer the TV channels? «TerraByte» 2D cartoon (audience: 4-8 years old) and «UnFortuity» docudrama are about the great coincidences and scientific discoveries.
OPPORTUNITIES AT FRESH TERRITORIES
OPENING UAE, BRUNEI, KAZAKHSTAN
Opening New Horizons DALAL MUSALLAM BEITY TV CHANNEL United Arab Emirates Dalal, are you going to launch a new DIY channel soon? What was the reason for such decision and what are your first steps in this direction? Yes, we will really launch the Beity TV Channel soon. We were supposed to start broadcasting in September, but there were some issues that have not been settled yet. The idea of launching the channel came into my head in light of my profound interest in everything that relates to our lifestyle in general: cooking, handcrafts, decor and design, beauty, hair and make-up, nail art, fitness, etc. The reason to launch such a challenging and complicated business, as I’ve already mentioned, was the fact that I do represent the female audience in particular and prefer to watch all of those lifestyle programs on one channel, without spending too much time to searching for my favorite shows flipping through a variety of TV channels. In addition, until now we have no purely lifestyle channel in the region, which is very important for me. Are there any other DIY channels in your country? There are few cooking channels. And some general channels that broadcast various lifestyle programs at a certain time. Are you going to use the DIY format only or maybe you have some others ideas? So, these are my first steps since the time when I started to learn about media in general and how this channel can achieve people. I will use this channel to broadcast on issues related to the lifestyle, as have said before. What kind of audience would you like to attract? Who is your viewer? The channel will have various lifestyle programs, and should be interesting for every member of the family, but as for me, I think the core of the audience should be women. What shows do you currently have and which ones would you like to have in the nearest future? We have a variety of lifestyle programs, including TV shows that I have already purchased from different production companies, as well as those that we’ve produced on our own. In the future, we plan to develop the same topics but with some
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variations in order to go with the times and be in the mainstream, and also depending on what the audience will be interested in and wait for. However, there are certain types of shows, which we could not broadcast now, as they require huge efforts and sponsorship support. Which types of shows are most popular among the audience in your region? Can you explain why? Cooking programs are most popular in the region like everywhere else, to the best of my belief. Today, not only women are interested in cooking. Moreover, people have more fun making a meal than before. So, cooking is a lovely experience that all family members love to be involved in. Do you plan to promote the brand as a TV channel only or do you have some ideas to produce this kind of shows on your own? We are a TV channel first of all, but of course we have and work on others ideas as well, such as launching our magazine and website, go in the social media. Do you target only local audience or are there some other territories where your channel is viewed? The channel broadcasts programs in the MENA region, through NileSat, but we target all people who speak Arabic language, therefore I don’t want to be local at all What do you expect fot after implementation of your idea after all? I hope that it will meet the need of our audience to the greatest possible extent as we work hard to win their favour. Do you plan to carry out PR or advertising campaigns to attract more audience? Tell us about this? After launching our channel we will take some time to see how matters will stand. So if we will have a necessity to attract more audience, we will gradually launch advertising campaigns as well. For example, we can start through the social media, then engage friends, and so on. Do you have any particular plans regarding the future development and could you share them with us? As for the future development, as I said before answering one of the previous questions, it depends on what the audience we expect from us at a certain point. However, in general we have lots of ideas, but all we need is time and understanding of how the audience reacts to what we do. I can tell you one thing for sure: we will develop the live show format for certain programs.
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In the same way that we are not all similar, the TV business has its own specifics in different regions and countries. It varies depending on cultural background, history, legal system and sometimes even religion and believes. Let’s have a closer look at different environs and conditions for running the TV business in different parts of the world, compare them and find answers to some important questions about how to sharpen the TV business in the right way. Who generally owns TV stations in different countries? What kind of content do they prefer to broadcast? What do they produce and why? What are their plans for the future? And others. We decided to shed some light on the situation in the media industry in the Middle East (UEA) and Central Asia (Kazakhstan), countries that have not been so publicly available until recently and now are ready to share their experience with SSTR. Moreover, we’ve got interested with the TV industry in Brunei, which also seems to be terra incognita in every sense of the word. Let’s cross the border of the cultural diversity and have a look as is the case with the TV business the other way around. Who knows, maybe the grass is really greener there?
MARIANI ABDULLAH DM DON SQUARE ENT Brunei “Our main requirement is that the content complies with the Islamic values as the majority of people living here are Muslims.” Mariani, could you tell the truth, what is the TV in Brunei as such? Is it a business or more a tool of information influence? I can say that the state as the sole owner of all TV stations uses 80% of the whole airtime for the informational influence and only 20% for the business needs, and we do hope that the second figure will increase in the nearest future. There have many plans for the future, but our priority is definitely to strengthen the network while saving the moral values of the local audience. How can the owner of a TV channel make money in Brunei? Actually, we are searching for ways to sponsor those programs that we find matching to the local audience’s expectations. As accredited vendor for RTB, we sell programs that are in harmony with the guidelines of our client. Who generally become sponsors and what conditions do they have for TV business? What do they expect for at their end? Where do media companies get their budgets from after all? Is there any state support for production? As I have mentioned before, TV in Brunei is completely centralized. Since the state owns all TV stations, everything is controlled by the government and consequently each budget is allocated annually. There are no other TV networks alongside the state-owned ones. Becoming the sponsor is optional. The programs are usually approved by the Board of Censors and they will be broadcasted even regardless the sponsorship, if they fit well. For the local production, as I mentioned before, the common demand is that it should be within the guidelines of MIB (Malay Islamic Monarchy), which is the leading philosophy in Brunei. What governs the way you are running the media business? It may sound that everything is done just by one ‘clique’,
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OPPORTUNITIES AT FRESH TERRITORIES
OPENING UAE, BRUNEI, KAZAKHSTAN
but we do our work with perseverance, dedication and commitment to both our Client and our Principals. We really want to meet demands of our Client by delivering high-quality media contents, innovative solutions and our dedicative professionalism. We are persevering through challenges along the way to prove our reputation and to gain the trust of our audience. We’ve gained it through the years of maintaining our policy while working closely with our Clients in order to identify their specific needs and requirements. And what would you say about the filmmaking industry in Brunei? How matters stand there? Frankly speaking, Brunei has no filmmaking industry at the present moment. Local productions are mainly working for the local audience and we have very few people who are involved in this field. The reason may be small population and limited scope of content materials. Anyway, recently we could notice some positive changes, for example, we already have some really good results from our joint projects with foreign video production companies. Thus two films have already been produced, and the first one was very well accepted by our local audience, and even has good feedbacks abroad; it is still making rounds in the international film markets. How do you usually share the airtime? What is the percentage of the airtime that the local and foreign channels get and what is the origin of the foreign content? About 30% of the airtime is dedicated to local programs, and 70% come from foreign programmers, but nevertheless we are trying to encourage our local production companies to produce more content for our local TV channels. We are actively working on this issue right now. Foreign content originates mainly from the USA, Australia, Canada, Korea, Philippines, Indonesia, Singapore, Malaysia, and India among others. What are general requirements for the content that you broadcast on your channels? Our main demand is that the content complies within the Islamic values since we have Muslim population for the most part. So, in general, summarizing the above said, what contents are more preferable for the local companies to produce and why? Usually, local production companies produce dramas and documentaries to be broadcasted on local channels. We hope that very soon we will be able to produce different contents that will appeal to a wider range of viewers. Which formats are used more often and why? What does your audience prefer to watch in general? There are primarily family oriented programs, which promote our Islamic values within the audience. For example - love stories, drama, action, suspense, lifestyle, edutainment, documentary content. RTB purchases feature films to broadcast on TV only. This is especially important for some festive occasions. Our company also collaborates also with theatre owners. It gives us an opportunity to release films that we license overseas for the cinema. Tell us about some special projects. What contents are you mostly focused on? We try to pay attention to the Social Responsibility issues.
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It’s more about informing people about the current events in the country. We are trying to organize more campaigns aimed at increasing the public awareness on health and safety. Ms. Mariani, what do you think about the censorship on TV in Brunei? In my point of view, the rules set limits to the content and this is necessary considering the fact that Brunei Darussalam is a developing country, and we have certain rules to abide to and follow. Thus censorship is a very important and compulsory factor for our TV in particular and the society in general. Nevertheless we do not forget that we have ideas that should be expressed. With regard to the local channels, what are they oriented at in general? What kinds of content seem to be broadcasted more often or not so often? Our local TV channels are generally oriented at news and information contents, especially at local news and events. And what about the advertisement. What is the average amount of advertisement on TV comparing with the Brunei`s regional neighbors? Today, the common advertising practice in Brunei is not as aggressive as in our ASEAN counterparts, which is carried out more on a revenue basis. Does the state support local production companies? Or there is no such support provided in Brunei at the moment? Yes, there are some minimal budgets that are allocated to local production companies, but I cannot give you an exact figure as it depends on the type of content they are producing. Could you tell us about the ideas and plans you have already mentioned? For the last five years the changes we have faced were incredible. We have introduced new HD programs; we can use the file share server Aspera, as well as file with the .ftp extension. We are looking forward to the bright future, as we start to distribute contents for mobile applications, open new media, OTT and other platforms thus extending our audience by using new interesting segments. We hope that our company will bring some lacking technical tools to the local media. Moreover, using broadcasting possibilities and TV we plan to significantly influence further social development by promoting the economic growth and identifying relevant social programs. I am sure that Brunei has an untapped potential which should be popularized and promoted with the focus on our rich cultural heritage as well as our flora and fauna. Brunei is a tax-free country, so we would like to invite future investors and entrepreneurs to enter the market and set up regional offices, and at the same time take advantages and benefits, which our country can offer in its business friendly environment. We are looking forward to finding trusted partners for further productive collaborations on ideas that we hope to implement in the nearest future. We can facilitate the new market in the region and give all necessary support in the event of need. For example, if your office is based in Europe or America then there’s no need to send your officers to ASIA or neighboring countries as we can make transactions for foreign principals. Besides, we would like to acquire and sell the rights to other films in other countries aside from Brunei Darussalam.
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VELA FIDEL Deputy Director-General THE 7TH CHANNEL
Please describe, who is your viewer? The Seventh Channel is a family entertainment channel, one of the top five Kazakh channels. Our target audience is a family that prefers to watch TV in private, in the family circle. Therefore, when producing our programs, we consider that our audience consists of different family generations. Which content and formats are more preferable for broadcasting on your channel? We are constantly looking for and trying new things. Within a period of seven years of working in Kazakhstan, the Seventh Channel has become one of the leaders in production of own projects that every season launches projects in the Kazakh and Russian languages. We are not afraid to experiment, to set ambitious targets and achieve them. Case in point: adaptation of the most successful TV formats in the world. Tell us more about your experience in adapting these popular TV formats? Since 2011, we have adapted and aired three new formats: ‘Show of forty million tenge’, an adaptation of ‘The Money Drop’ show (Endemol), the musical project ‘Star Factory’ (‘Жұлдыздар фабрикасы’), Kazakh version of ‘Operaciun Triunfo’ (Endemol), ‘Star Dance’, an adaptation of the ‘Strictly Come Dancing’ format which his very popular in the world. In 2013, we successfully launched the first project in Kazakhstan devoted to weight loss, a reality show ‘Dance! Dance!’, an analogue of the popular ‘Dance You Ass OFF’ format. In 2015, the most explosive television intellectual-entertaining show in the Kazakhstan was launched on the Seventh Channel – ‘BOOM’, which is one of the most popular franchises owned by the Israeli company Keshet Broadcasting Ltd. This was the pilot project since we implemented new know-how technologies. In
the second season, we were also the first in the Kazakh media market who launched the ‘Second screen’ technology. How do you normally form you broadcast programs: what do you focus on and how do you choose the content? This autumn will be no exception for our viewers. Selection of the genre orientation for the key season projects is a very important factor, and here we do not follow our own ‘wish list’. Of course, we monitor trends in the global TV market, directions that the leading production studios focus on, but those are not the main factors that determine our content. This year, we carried out a study using the Need Scope methodology, defined characteristics of our target audience considering its emotional toiletries, and developed the guidelines to the content. The research results have pleasantly surprised us. In 2013, according to the results of the same studies, the audience had more interest in analytical programs, news and talk shows on sensational topics. But this year the picture has changed: family values and harmonious relationships with other people came to the fore. The viewers claim for the peace and stability – this is something what they can find in a circle of close friends. People close not only in terms of interests, family connections, but also in terms of where they live. As a result, in the recent years the word ‘patriotism’ can be heard more often in the society, the Kazakh product has become more interesting, the audience has become more loyal. We could observe this last year when the state-sponsored channels produced their own series that probably for the first time ever turned to be more popular than the Turkish and Indian soap operas. Tell us more about the content of your production? Considering the successful experience of the series of our own production, this fall we decided to continue this trend
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OPPORTUNITIES AT FRESH TERRITORIES
OPENING UAE, BRUNEI, KAZAKHSTAN
with the focus on patriotism and family values. In the new TV season, we will launch four series, aimed at the family audience. Each series has its own flavor. Of course, there is a series with a classic storyline, as well as those with more daring stories. We are confident that they all will make a conquest of our audience, for example, ‘People in Love’ (‘Махаббат жандары’) melodrama. This is a love story of two main characters – Zhanibek and Aruzhan – which blossoms despite all challenging life situations and circumstances. The parents and relatives of the lovers are sworn enemies. Their fathers are big businessmen, who are fighting for the leading position in the common business sphere, the one day things even came to the court, but Zhanibek and Aruzhan find out about this conflict between their fathers much later. Intrigues spun by ill-wishers become a real challenge Zhanibek and Aruzhan who want to save their feelings. Or we also have a family comedy titled ‘The Place in the Sun’. The 25-year-old man named Bob (Bobek) is a single handsome talented fashion-photographer working in the most popular magazine of the country. Bob plans to go abroad, to New York, pursuing his long-nurtured dream to work in the supercool photo studios with popular stars. But, on one ordinary days, he receives a phone call that changes his life forever. He finds out that his sister died and her three daughters are now all alone. Since he is the only relative they have, he
is asked to shelter the girls and take custody. When he has to decide whether to fly to New York and follow his dream or stay in Almaty with the girls, Bob chooses the second variant – and gets an okay and support from his friends. This comedy drama is about how children can bring love and understanding in extremely serious adult relationships, as well as how we sometimes, rushing for material values, do not notice the simplest things that make us truly happy. So, we know what has already been done. Now tell us about your hopes and plans for the future, what are your dreams and what do you strive for? Considering that the family and family values are high priority for our viewer, as well as some other factors, this fall we will launch a unique television project ‘We want to have a baby!’ The project has no analogues in the country. ‘We want to have a baby!’ is a social project that will not only allow 10 Kazakh families to realize their dream of becoming parents, but will also become an accessible and high-quality information source about the IVF procedure. For the period of 54 weeks on the air – from conception to birth – we will keep watch over the project participants and empathize with them. This is more than just a television project. This is a program that goes beyond the TV boundaries.
BAGDAT KODZHAHMETOV General Manager ASEL TOYANOVA Executive Producer 31ST CHANNEL Tell us about the current trends in the TV business in the Kazakh media market as a whole? What do you rely on and why? BAGDAT: Needless to say that we primarily rely on our own production. No doubt that those who learn how to produce a cheaper product with a higher quality, those will win. It is obvious that today the Kazakh viewers want to see our domestic product on TV. And only now, 20 years after the independent television appeared in the country, we make the first steps to meet this demand. But there is one drawback. It is referred to one peculiar feature of the Kazakh market: we are a big country and a small population, only 17 million people. Thus, the advertising market is narrow. In addition, it lost 100-120% over the last year in the foreign currency equivalent. Therefore, we are not able to produce largescale shows, which would be very popular among the Kazakhs. Our own product – the avant-garde – that we launch in the new season is unfortunately not marginal. And its production for television is always fraught with difficulties, ‘minus’ burden, so it seems to be foolish to expect that the TV channels will suddenly begin to produce something great within this period. At the same time, we as TV makers should surprise, regardless of our financial status. And this season, we have made every effort to please our viewers with our own contents. We hope that those projects that we will present in the new season will appeal to our audience.
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ASEL TOYANOVA
ASEL: All audience-related studies show that the Kazakhs wants to see the Kazakhs on TV, they want to be involved in the success of their fellow citizens, they want to see how they grow and keep up with the times, they look for beautiful faces on TV. High interest fixed to the Olympics is a direct demonstration of this. As for our own production, this season we decided to go the beaten road: new seasons of the already proven and favorite programs will be shown in the pre-prime and prime time. There will be no experiments with the genre. We are very proud of our project ‘Bride Race’, which not only became one of the most popular projects in spring 2016, but has also set a new trend – development of a female line in the future. We hope that the program will not lose momentum over the next season. The Kazakh families do like spend their free time watching humorous concerts. In the new season we will also present ‘Burak Humour Festival’ project in the new cover. Tell us what other own products will you offer to your viewers. 31st channel, External Affairs: Carrying on the tradition of the family safe and entertainment channel, we have produced a number of national TV products for the new season. These programs are specifically designed for our audience – they are understandable and close to the way the Kazakhs think. Among the premiers of the new season is showbiz news program ‘Let them talk’ with Anna Danchenko. The program launched in May this year, has already become one of the most popular and top-rated projects within a short period of time.
Since September, we also launched the Summer Games of the first Kazakhstan humor festival ‘Burak Humour Festival’. The purpose of the project is to find and support talented comic artists and collectives within the republic. In the second season, we will launch the Kazakh TV market show ‘Bride Race 2’: the participants will have to persuade the whole country that their wedding was the best one. Besides, we will continue with the already beloved public life stories of the ‘Urban legends’ characters, but this will be a new series ‘Zhenatiki’ (young husbands), just with the same characters. The film was directed by a young professional Sanjar Umarov, and the author of the idea and the producer of the project became well known comedians in the country, Daut Shaikhislamov and Sabit Rakhimbaev. In the program ‘1001 anecdote’, the celebrities will personally tell us their fanny true stories. We also plan to launch a completely new project – the working title is ‘Women’s View’ – with the participation of famous people, representatives of various sectors of society. This will be a studio interviewprogram. How to become a successful and happy person? How to define one’s life journey? How to build a strong family and save relationships? How to wend one’s way through life and stay healthy, stylish and attractive at the same time? Moreover, we are preparing to release a new social and consumer information program. This will be important economic news and consumer information put into plain and simple language, with application generalizations and infographics.
#7 / November-December 2016
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Currently, In-flight entertainment (IFE) is a very developed market. Almost all the world’s airlines offer customers a wide range of entertainment, which is designed to reduce stress and help passengers to pass the time in flight. Among them are video, and music, variety of games, dinners, shower services, massage therapists, sleeping beds and etc. Entertainment differs from company to company. There are very old airline companies that during a long time of their existence accumulated a lot of different classes of aircrafts. Therefore, people who travel with their help, especially during long flights, may change the board for two or even three times using the services of the same airline. But they will fly on three different planes, and, respectively, with different technical features. Newly established airlines usually have the aircrafts of the same type. The most common kind of entertainment of all the airlines is to show films, animation and various video in general. Almost all the companies currently have the possibility to provide this service to their customers. To find out more about in-flight video rights, we фылув the representative of one of the leading companies, which is engaged in the purchase/sale of these type of rights - Jovita Toh, CEO Encore Inflight Limited from Hong Kong. As of today, their company has 101 airline as their customers and thinking about expansion, namely, the development of indoor rights in trains, buses and ships. “When we first started 6 years ago, we had a hard time convincing airlines that passengers would be interested in nonmainstream content. Content that may not be easily accessible via Broadcast or Cable TV, Theatres, DVDs, etc., but which is created with passion and award worthy. Two years ago when platforms, such as Netflix, and Amazon, started gaining popularity, airlines started to realize that it was time to introduce some alternative content. With growing capacity of the inflight entertainment systems, airlines are under pressure to offer a wider selection of content based on passengers’ expectations. Popularity of TV content has also grown up”, – said Jovita Toh. What are the features of working with in-flight video rights today? The main feature is censorship. Censorship extends primarily on video about the plane crashes. It also has individual features depending on the voyage. For example, European companies have no objections against nudity, but do not tolerate the blood and violence in the video for airplanes. Arabian Airlines on the contrary have no objections against violent scenes, but remove naked body, drinkers and all possible references to pork. Singapore Airlines are very sensitive to manifestations of homosexuality in videos and remove them. In addition, showing of other airlines logos is prohibited almost by all the airlines. Jovita Toh adds: “Also for airlines, the differences would be subtitle languages, audio tracks and sometimes edits are required for a strong language. In general, excluding censure corrections, we format the files and deliver according to each provider’s specifications. Different
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#7 / November-December 2016
aspect ratios, audio levels, etc. Generally, we work with providers, which represent a number of airline clients. While there are no contract commitment to select our titles, we work hard at understanding the different content requirements of each airlines and include those in our acquisition activities ”. Jovita, do airlines buy broadcasting of television channels as in-flight video rights? We have not worked with TV-Channels so far. It should be noted that over the past two years provision of WIFI in flight has started to develop actively. This greatly influenced the entire market. For air carriers - it’s a very important step. It should be understood that installation of a monitor and other related equipment costs about 15 thousand US dollars to a single airline. The entire airplane equipment costs, depending on the size of the plane, from 3 to 5 million US dollars. This is the third item of expenditure after the engine and the chassis. Besides, this equipment greatly increases the weight of an airplane. Therefore, WI-FI development significantly affects the market. The cost of equipment for the airplane, which is used to receive Internet signal on board, is about 250 thousand US dollars. This is simple arithmetic and it spurs airlines nowadays to invest in development of air WI-FI. As of 2016 approximately 60 world’s airlines provide access to WI-FI on their planes. Certainly, the Internet in flight is not yet perfect, first of all it is slow and limited in terms of data transmission. But the technology goes forward and a number of companies launch satellites to improve the situation, for example, the British Global Xpress. Perhaps that is why currently this service is still provided at an extra cost of 5 to 16 US dollars per flight depending on the airline. But at the same time, these opportunities have forced operators to think about providing VOD in flight. For what period and what content is purchased for the inflight? Most of our customers will select fresh titles every month but some of them leave it on as long as a year. The showing period is generally anything between one month and a year. We sell various content. For example, we have a small selection of content for children, but it’s not the main target audience of the airlines and the budget for such content is very small. However, if you target family travel months like summer time and December, then there are generally more requests for children’s content. For a few our clients we are an exclusive content provider. We emphasize that in the last few years we see such a tendency that only 20% of passengers are watching 80% of content. All other people have changed their habits, as nowadays there are many platforms, which can be used to watch the video. The main content is a movie. Airlines buy movies right after the end of their showing in cinemas, because consumers want to watch only the most recent and new. The market has drawn attention of many players, because it significantly increased in volume. Some airlines are spending about 20 million US dollars a year to purchase videos. Various media noted that in recent years the world’s airlines collectively spend more than 3 billion US dollars per year to purchase the rights to various videos, music and games.
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ON THE PULSE OF CHANGES
TV IN AIRPALNES. DIGITAL MARKET
Features of the digital market today This year Google Inc. has made a proposal to the Federal Communications Commission of the USA regarding the authorization to transmit channels and video services of any type not via the «boxes» (box tv / set top boxes), but directly via the Internet. The representatives of the corporation insist that this way they will make the connection to the services more accessible and cheaper for all the users. This will also, according to Google representatives, simplify the search for content, as it will happen immediately among all the platforms, but not in each directory separately, as it happens now. Many cable operators and OTT platforms immediately opposed the proposal. They fear that Google could rearrange the lineup of channels or adjust the order of providing video to the audience. And most importantly - it can start selling their own ads at the beginning of each video, banner ads and more. That is, Google will be able to sell advertising services directly to the advertisers, squeezing out programmers (TV) and cable operators. And their fears are not groundless, as Google and Facebook have changed the old order: last year they took almost two-thirds of the global online advertising market, which is about 60 billion US dollars, and this year they are going to take even more as their representatives said in Cannes this spring. As of October FCC delays to vote on new rules for operators, which broadcast television channels and platforms to the customers via various «boxes». The reason is the emergence of many new proposals relating, in particular, to the confidentiality. At the same time, experts believe that the new rules could be positively voted as early as this year. To understand this matter more detailed we’ve appealed to Dmitry Kolesov, Director of TV and content department of J`son & Partners Consulting for comments. Dmitry, what do you think about the Google initiative and related imminent changes in the rules on the TV market? This initiative is not new. OTT providers, which in this case include Goggle and Apple, have repeatedly tried to negotiate with TV channels on obtaining rights to the content. But this never happened, because channels: a) do not understand how to get payment according to this scheme; b) do not understand how to monetize in advertising of sprawling audience, counting which they will need to spend extra funds. In case where the channels come to agreement with those, which broadcast channels, the latter will pay channel for each subscriber, for linear content. Moreover there is an interesting nuance - broadcaster pays for the right to broadcast, but if there is no technologic potential to do so, then the customer may never see the channel. That is, the channels are paid by the broadcaster anyway. OTT providers, such as Goggle, insist on the ability to receive content, but providing it to the audience in re-processed form. For example, repacking it in new «channels» on the Internet, which will be drawn up according to the customer’s preferences on the basis of statistics. Here lies the main problem - if not all the content is paid by the subscriber, then how to calculate payment by OTT provider to the channel? That is, in contrast to the cooperation with translators, where channels will receive money only for the used content and, possibly, only for the total content viewing time and, accordingly, related advertising. It is difficult to rate the need of audience in such an initiative - formation of channels on the basis of its needs is still too immature and underdeveloped segment. When these changes will come into force anyway - at your opinion, what is the future of linear TV channels and content distributors in the new ecosystem? The future is quite clear. Viewer is an inert creature. He uses things that are the most convenient for him. The new system can earn only under two conditions: 1) OTT providers will have enough original content; 2) recommendation systems will be based not only on the past viewing experience of the subscriber, but they also should be able to form his desire to see something new. But we are still too far away from this, so nothing will change in the next 5 years: channels and aggregators will be the main content providers to еmрtу market. It should be noted that in a recent interview Vice President of Innovation at Netflix Carlos Gomez-Uribe said that their company has recently launched an algorithm that selects between other algorithms, and sure enough it has a machine learning. Netflix was reaching this goal for over ten years. «Thanks to the program we know exactly what you’re watching and what gadget you use to watch and so on ... It is more important and useful for the predictors of what you will view in the future and this is more important, than knowing what movie stars you like», - says Gomez-Uribe, - «As of today it is already very realistic, when you simply turn on your Netflix application and the video you like automatically starts playing. If you do not want to start playing the video, you may need to run forward/scroll the interface once or twice and you
will find what will satisfy your needs. Only 10 to 20 percent of sessions switch to the browser mode». In your opinion, what shall we expect from Smart TV market in the context of future changes? As of today Smart TV as a platform is primarily used by the viewer not to watch TV, but the video on demand. Availability of new products and the convenience of payment - these are the main ingredients for success of smart TV services. The level of development of this technology directly depends on the development of the traditional pay-TV market. For example, in the US only every fourth family has a Smart TV with Internet access, but almost 96% of people are connected to TV. The important advantage of this technology is the high protection against piracy. If the viewer uses only functions of applications, then he will watch only legal content. However, I shall emphasis once more, that Smart TV in the minds of the audience is like a «box of chocolates». Usual TV provides news and entertainment, but if you want something special (for example, a movie that has been shown in cinemas recently) - turn on Smart TV application. Dmitry, let’s talk about the transition of broadcasters from analog to digital. In 2017 this transition is planned in Ukraine, earlier Lithuania, Latvia and Estonia have passed this stage. In the near future, probably, the rest of the other countries of the former USSR will pass this transition procedure. What additional challenges will the television face? And how these challenges are related to the upcoming changes in the market, which we’ve discussed earlier? In this context I really like the example of Finland, where the transition to «digital» was held in 2008. Prior to this there were 8 channels selling advertising. And suddenly their number extended to 16. All participants of the market have been waiting for X hour in fear, as in their opinion, the catastrophe was imminent. The audience of big channels should have dropped, the new players should have arranged dumping to attract the budgets, and the entire market to collapse. In fact NOTHING happened. Although no, in spite of 5 years of preparatory campaign, on 1 September 2008 4% of Finns have suddenly found that their analog TV is not working. Apart from that the same processes simply continued: a) the audience of historical leaders gradually decreases. Currently the 5% share of channel is seen as a success in the developed countries; b) advertising TV market is growing continuously. Despite the surrounding hysteria digital advertisers (especially FMCG) understand that the scope and frequency of contact at a given level could only be provided by the television. Today, digital broadcasting has pushed for an increase in the cost of television signal propagation, as the number of transmitters have increased compared to an analog TV. But at the same time it should be noted that expenditures on the development of digital broadcasting is substantially lesser, than on the development of analog broadcasting with its ubiquitous antennas. Due digital broadcasting the number of channels continue to grow. For the advertising market, this leads to a complication of the process of campaign planning. While many TV markets has experienced a boom of extension of packages with channels and now they came to the conclusion to exclude low rating channels, because people do not watch them anyway, and such broadcasters occupy broadcasting capacities. Regarding non-linear channels on the Internet situation with advertising on the contrary is becoming simplified, as in digital broadcasting you can reach directly to the entire target audience, which consequently affects the change in the advertising message that addresses not everyone, but namely to the people who are «the subject». It should also be noted that meanwhile the market of pay-TV is living in the «parallel reality». Because not all the people are still willing to pay for something that they used to get for free. For example, in Germany or the Netherlands after the shutdown of analog TV broadcasting half of the people in the country have continued to watch the good old analog TV without a cable set-top boxes. The problem of signal conversion shall be managed and solved by the operators as it was before that. In general, digitalization of television is simply the release of frequencies for the more promising technologies of distribution of information. From the point of view of the ordinary viewer, especially those living in urban areas, the new broadcasting system does not add anything. On average home TV set is changed once in 7-10 years. Given that the programs of transition to digital TV were approved 5-6 years before that, the producers in each of these countries have long been selling relevant TVs. This means that in case of shutdown of analog broadcasting (in 2-3 years), people should have no major problems to receive new signal.
#7 / November-December 2016
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INSPIRED BY A DREAM
AROUND THE WORLD WITH PAGANEL STUDIO
Following the voice of your dream This time we’ve decided to draw your attention to the story of development of the creative group PAGANEL Studio. Once, following the voice of their hearts a brave and non-trivial family couple decided to “take a total control of their lives” and they launched on investigating the most remote and hard-to-reach places of our “little blue globe”. Guys are travelling all around the world and make authentic films about beauty and mysteries of nature, culture and history. Amazing landscapes, legends and myths, mysteries of civilizations and far away cultures appear one by one before our eyes. Let’s find out, how they managed to join together everyday routine and exciting part of our lives: necessity and dream.
"In every group there is a brave heart, with a taste of an apple or bitterness of pepper‌"
#7 / November-December 2016
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INSPIRED BY A DREAM
AROUND THE WORLD WITH PAGANEL STUDIO
What was in the beginning and how did the idea to launch such a creative project appear? Recollect, how the dream was born (what was the very first thought and how did it start to come to life later)? Andrey (founder of the studio): The very first dreams and the idea itself to join our with wife interests, way of living with a possibility to earn arose as early as in 2008, when after our third journey full of adventures and beauty to the Papua and other Indonesian islands (before that we already had tracking to the Everest as our wedding journey, we visited Thailand, then Peru and Bolivia) it came to us that we wanted to live a totally interesting for us life and not just from case to case on the money earned by us and during our vacation. I remember calling my wife being on a business trip, from Kyiv; at that moment in summer we were living on our dacha in the Crimean mountains, at that moment she was cleaning our little pond with a hand net and taking leaves out of it; so I called her and just said: “Let’s travel, shoot films and earn our living with it. Today, when I was on moving stairways in the subway, an idea for scenario came to my mind... « Then I added: «And the National Geographic journal decided to print our article with a picture about the Comodo dragons!» These words even brought tears to Olia’s eyes ... Why Paganel, where does this name come from, who made it and what it’s related to? I made it up. I suggested, and Olga said yes immediately. Paganel is a character of Jules Verne’s book “The Children of Captain Grant” He is a geographer, he also knows history well, he speaks a few languages, he is a good painter, funny, sometimes extravagant, it’s fun with them and interesting, it’s a bright, charismatic person, on which the whole book is actually based on and thanks to him the whole team was able to cover their whole route through continents and oceans. It’s a generalized character of our initial team. I have a degree in history, I am making and developing
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routes of the journeys; Olga is a geographer, philosophy doctor, she speaks a few languages, paints. In the beginning when an idea to shoot films appeared, there were three of us, a great painter was in our team Alexandr Votsmush. In fact, three of us started travelling and were dreaming about launching the project which was born in my mind and shooting it in various countries of the world. It was Sasha, who involved us into video shooting. Then, in 2008 he shot in our journey a film-emotion about our travelling called “The Princess of Papua”, then we organized an exhibition with the same name of our pictures, his water-color paintings, Olga’s graphics and it started... And the second part of the name «Studio» means that we do not just travel but that we also produce creative pieces of work. What do you think: are you a tour operator who at the same time produces his own media product or a production unit providing services of a tour operator? And how did you see your project from the start? For us these areas of our activity do not lie just as they are on a surface, something one is emphasized in some point. Of course initially we wanted to devote ourselves exclusively to art, and we said no to everyone who wanted to go on a journey with us. But as during three years we did not manage to find finances for our project, we decided to earn money the other way and we thought it was not supposed to last long ... In 2011 we left from so-called “producer” from Kyiv, because we got tired from promises. We left into nowhere. We decided to start working with the groups, we made a company and made up the name PaganelStudio. Gradually we got so much involved that we did not even expect it to be this way. It turned out to be very interesting to work with people! It makes so many changes, so many unnecessary things, which were in you, are left behind. And so many interesting well-rounded people come to us! From absolutely different fields of activity, who you are not likely to meet, at least so many of them. It’s said that the older you are, the more difficult it’s for you to find new friends. Surely, it’s this way but it’s more valuable and more interesting when you
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meet the ones, the other issue is that how many will pass by until you find the ones, with who your perception of the world, your interests coincide... And exactly in this there is one more big advantage of communication with so many people, which we have. So, both fields complete each other. Creation feeds us, gives strength to us, we are occupied with it, it’s what we with Olga have in common; creative projects are global goals. Arrangement of journeys with people allows us to invest into ourselves, into our creative work – into hardware, equipment, to pay to a film cutter, musicians, to provide for material aspect of living and surely plus communication with people itself, which I have already talked about. Totally, still. Maybe with time focus will be shifted to creative work and mainly a well-organized team of expedition leaders will deal with journeys with the groups. How have you changed personally and how has the project changed for the period of its being, what has changed and what has remained the same? Surely, such rich with events and impressions life, which we have, can’t but change but it changes in a roper set direction. When you are trying to move to your dreams for years, despite turnings, your essence remains unchanged. Once in the past you found it inside yourself-and you remain devoted to it: you are developing, allow it uncover and come true, and then – you find something, which was dim many years ago, hardly tangible inner voice, which suddenly became not just stronger, but became totally you, and everything external has just peeled off. It’s exactly that true you, in your earth realization, and deeper under this even more internal opens. And our project is also constantly changing, transforming, forming. New people in the team have appeared during these years, who have become its integral part and without whom now it’s impossible to imagine our activity in such a view, which it has been formed as of today. What the most unexpected happened to you during your expeditions, what impressed you and which places have remained in your heart forever? The most unexpected and amusing occurred every time we visited Papua. The Papuans have their own issues all the time, it seems that we have discussed everything, wrote it down, agreed ... but no, some issues arise! The moment they arise, surely, you are overwhelmed with different emotions... but later it’s fun to recollect them. A part of these stories are on our site in the section “Stories”. We are impressed and amazed with every country we visit. There are good reasons why we choose such countries – with incredibly beautiful nature, with interesting authentic cultures, with its particular zest. But there is one place which we revisit again and again – it’s Bali. It’s an island of unique culture (unique form of Hinduism) and virtuoso craftsmen – carvers in wood, stone. You are not going to find things that they do in souvenir shops. Everything is spiritual there and beautiful in the very tiniest detail. It’s fascinating, of course, when you are able to notice and appreciate. Which insurmountable difficulties, as they seemed to be, did you have during your expeditions and how did you deal with them? Yes, force majeures happen, although they are very rare. In such situations it’s the most important not to panic, but to keep calm and find out how it’s possible to correct and more often we
#7 / November-December 2016
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INSPIRED BY A DREAM
AROUND THE WORLD WITH PAGANEL STUDIO
managed not only to correct but to find a better option than it had been planned before. I am not going to give you examples because these are back seams which must be hidden before the curtains. Do you have any ambitions and plans for the future? How do you plan to develop, maybe? Would you like to improve anything or make your dream larger? Surely, I do. For now, the very first project of us, which I’ve already mentioned, remains one of the most ambitious projects. Its initial name was “12 Legends”, it was a featureand-documentary series with an interesting story, but very complicated in its genre, it did not suit any format of television. I don’t know how one would even just try to sell it, even if it were a miracle and somebody suddenly decided to finance this project. But nevertheless its value is that everything started from it (it was the beginning of everything). We did its remake some years after, I completely rewrote its scenario for it to be a documentary-feature serial. We named it Legends of the lost civilizations. This project is ambitious because according to its idea and scenario it shall be shot in more than 60 countries of the world, many experts of the world level shall be involved, it shall be a beautiful and qualitative film, because it’s very expensive pleasure. Tell us a little bit more about your projects, which you are currently working on or you are going to work on? Legends of the lost civilizations, 12 legends of the world, Spirit of the place? What else? What would you like to work on in the future or what do you already plant to work on? Ok, I’ll give you more details. Let’s start with the “Legends of the lost civilizations”. This theme is not new, it’s been developing as early as from the 50-ties, by really well-informed world scientists, and is also spread out in the gutter press to absolute nonsense. It concerns hypotheses about existence of one or maybe a few the most ancient civilizations, which existed before beginning of times acknowledged by an orthodox science. In the research project we would like to approach this issue as close
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as possible to the facts. But it’s not the goal itself, because so much has been already said and written about it, and whose, who take interest in this issue, going into the deep, may know much about this. We focus on two main points: the first one – on exotic legends of various peoples, as it’s seen from the name. But not simply on a legend, but more on unique identity of the people. A legend should be a part of culture of the unique authentic people, after which unique interesting artifacts have been left, as well as unusual constructions, and even more – and even more whichlives or was living some time ago – of course in some beautiful place, which makes a fascinating film picture in the shot. We, as visualizers, value this moment of creation very much. Our true goal is to show bright and vivid life of various tribes and cultures to the whole world. And the second- it’s, no doubt, interesting to tell and show a story, to make an exciting artistically beautiful film. Spirit of the place – it’s a project in style of our videos – emotions about countries with beautiful music, which we edit each time after our journeys and give to public on our channels on youtube and vimeo, already of a certain duration, to which we have come with our partners from MC MediaGroup (13 minutes each). Each series is accompanied with author music composed by our musicians, these are shots only about a country and place without participants of our expeditions. We already have got a package ready for sale – the first season of 15 series. Production of the second season has already been started. Just today we have finished cutting and assembly of 52-minute film about discovery of Antarctic, which we created with the same company-partner. It’s our first feature-length documentary. We managed to do it rather good, one watches it in one sitting. From new there is one more our project, which we made together with the talented musician and guitarist Estas Tonne. It’s a thirty-minute beautiful film “Internal Flight” with fascinating music with a philosophic text, which Estas wrote and read. A person, a viewer, who is trying to find his place in this world, to find an answer to a question “Who am I?”, is striving to understand why this world is made this way as it is and no other, which place does he take in it, who having passed a certain way of internal development and finally having found a point of balance inside, simply takes this world, such person, having watched the film, will understand immediately what the film is about, will recognize questions he sent to heavens, will recognize himself, will easily feel messages to dissolve in beauty, in music... Or if he has not yet gone into flight inside himself, maybe will start thinking about it and listen to the voice which quietly sounds inside. Also, we have piles of material for a two-series film about Papua, there is material for a film about culture of the tribe in the Peruvian Amazonia -Shipibo-Konibo with their shamanism. And many other different ideas... Andrey, in addition to this you write stories, tell us, what do you write about and whether you plan to publish a book ? What other creative work does your team indulge itself into and are there any plans to implement it in the future? Yes, when I had more time, I described our journeys with pleasure and humor, illustrated with pictures, drawings of our team and posted on the Internet, now they are on our web-site. I also write articles for various magazines. We are regularly published in various magazines, give our photos and my articles about journeys. We’ve been doing this for many years already. I think, already 70 articles have appeared. At the moment we
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are arranging the section Publications on our site, so, who is interested – you are welcome! We have started with Olga to work on our book – photo album. We have made up a certain concept. Maybe, it will be published next year, we will make a presentation together with a photo exhibition. What about plans to grow and enlarge the range of the services provided? Do you have any ideas? We have grown just recently, our team has increased, which deals with group tours. For the moment we are thinking to stop here. As the Japanese say – business shall grow step by step . Tell us, who travels with you and who can afford this kind of tour (cost of this kind of tours is not that affordable for an average Ukrainian, as far as I understand) and what is the biggest and the smallest quantity of people for the expedition (only clients)? These are people from completely different fields of activity: IT-experts, businessmen, architects, animated cartoon artists, people of creative work, top-managers, lawyers, doctors, beauticians, PR-managers, veterinarians... it’s not easy to keep in mind all of them... we travel together in small easy-hearted teams, 25 - 30 persons on average. It’s rare that there are less than 20 people in the group. You have just gorgeous photos and videos from places of the Earth visited by you, which devices (and maybe secrets of its usage) do you use to create such a terrific product? Thanks! We use Canon cameras: 2 cameras 5D MarkIII, 1DX, a big number of lenses, tripods, slider, drone DJI phantom 4, a lot of special small items. Nature of the journeys offered by you to some extent has a risk for life as well, since expeditions do not exclude a factor of unknown and dangerous moments and there is always a chance that force-majeure may happen; are there any warranties for your clients? (for instance, risk insurance)? Traveling offered by us is a moderate extreme and we think about risks as much as it’s possible. Surely, force-majeure may happen to everyone. Besides people may encounter some personal problems with their health, which would occur in any way in their ordinary life. That’s why we offer people to arrange for insurance policy in advance and certainly if something happens we give assistance, take them to the hospital, arrange different issues for them. Even if someone insists on issuing of the insurance policy on one’s own - it’s a person’s right – but in any case we provide help when necessary. Tell us, when did you start selling your content and how did it happen? To which degree is it self-financing or is it just an additional by-product to expedition services? For now our creation activity does not bring considerable profits to us. We’ve been cooperating with MC MediaGroup more than a year what concerns creation of a number of commercial projects oriented for the international market, but now we are still being on the initial stage of creation of this model, which, is already, to our great joy, on its final stage. By us, assembling of the product is done on the one side rather intensively but from the other side – we make cuts only in the intervals between our journeys, and in total it takes much less time during a year than we spend on travelling. We’ll see how it’s going to develop in this direction further. For us it’s important not just make something
and sell it quickly, for us it’s important to create something, that first of all would meet our own demands and would give pleasure from watching it over and over. That’s why we try not to hurry. Once life already gave us a chance to do everything quickly, and with return of finances, but we did not take this chance. It happened this way that 5 years ago we received an offer to make a project. But everything was supposed to be done within the country. They promised to bring sponsors to us, to give air broadcasting, but the truth is that politics was added to all of this, ideas with a certain direction. But all this caused a gnawing feeling at the bottom of our hearts and we decided to feel for our own path and not just make quick money neglecting our dreams. Share your inspiration, what did you find in yourself last or in other people or some enlightenment related to your way of living? What would you like to draw everybody’s attention to? Creation in its pure form, dreams and when they come true – that’s what gives inspiration. Basic enlightenment was that all the most desired dreams can be easily made to come true, the most important is to really desire it and go in direction to tour dream. If there is movement, your way will always lead to your goal. I would like to draw everybody’s attention to global problems of our planet. It’s crying about help now, it suffocates in debris and problems of the humans, but humans do not hear it being occupied with little conflicts, wars, diving people to us and them, constant desire to deprive somebody of something, destruction of rivers, seas, forests without even looking back on the future generations and our children. It’s unbelievably depressing. Where do you take your inspiration from? I take inspiration from my muse Olia, who is also my wife, our creative tasks and what we can invent together, something unbelievably interesting, and than calmly implement it by our own efforts. ............................................... As it seems to me that not everybody is brave enough to beat new untrodden paths. Further and deeper to a place where nobody has set one’s foot on, guys create a completely new product completely in a new way. One needs even more courage in life to believe in one’s dream, but when you follow your way and don’t step aside, you give your individual soul to it, which like a tree, will certainly break into blossom and give its fruits. When your path has its soul, it’s something that becomes sense of life.
#7 / November-December 2016
18
BATTLE FOR PLACE IN THE SUN AND RATINGS
B2B IN MEDIA
RATING is a King Frankly speaking the problem of the ‘Channel – Operator – Production Company’ interaction is a burning issue for the media industry worldwide. Starting and running a media business is a vivid, vibrant and dynamic process, which is sensitive even to the slightest external influences. Thus, the whole straight structure of the busses chains and ties may be rapidly changed. Trying to generalize the common trends and differentiate the specifics, diversities and other significant peculiarities of doing the media business in different regions, we asked several media top managers in different corners of the world about how they meet challenges and get things done. We wanted to reach each and every single region, so we decide on the following chief executives:
This time SSTR is generalizing a solid experience of the media top managers in an effort to highlight recently emerged media trends, as well as factors affecting the media market. Comparing different backgrounds with the impact on the whole media environment, we will also mention about the forms and instruments of cooperation between the channels and satellite operators; regional specifics, state restrictions and rules that regulate frameworks of the media business in general; terms and conditions for different partners, approaches or policies applied by the companies while making a deal; technical problems or challenges they meet when they do their job, etc. As a first step, it is significant to notice that in the context of global transformation – from the mentality and to the use of the natural sources – media industry “Entertainment has always been in high is facing new chaldemand. Digital markets provide many lenges and tasks great platforms for entertainment, and of the present-day viewers continue to demand entertaining reality as the agencontent that is the whole purpose of the da for surviving. industry,” – FEDERICO E. MARTINEZ, PRESIDENT LEGACY ENTERTAINMENT As everything and everyone in the soHOLDINGS cial structure of the world media industry should change and transform, this is under way at the moment. The global media landscape is changing: while new players like OOT, SVOD Platforms are emerging from a new digital age of rituality, traditional players like Channels, Productions and Satellite Operators should change their old fashioned approaches to doing a business and look for new solutions. But there is something that remains constant. Those are demands, expectations and desires of the audience, which is the core of the whole media universe. “Of course, macroeconomic situation in the country has its impact on the pay-TV industry. When people have less disposable income, it definitely impacts their spending habits. However, we also understand that subscribers always want to
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enjoy the best content no matter what, and many of them are willing to switch to the operators, which offer better quality over the cost of subscription or the sheer number of channels on the platform. I hope that current situation in the country will teach many operators that they sell content and it’s impossible to build a sustainable pay-TV business without high quality channels like ours. Market leaders realized that long ago. Now it’s the time for the rest of the market to follow,” – Rodion Pryntsevsky, General Manager North East Europe, Fox Channel, Baltics States & CSI It should be mentioned that the frameworks of partnership between the satellite operators and channels are still very uncertain, have no strict rules and varies at forms and instruments in every certain occasion everywhere all over the globe. ‘We usually form and change our scheme of cooperation considering the situation at a definite time period. There is an association that unites all operators (COAB) in Bangladesh. From time to time they define new rules and declarations, and then we usually meet and seek an overall solution; sometimes particular channels offer significant amounts to the operators asking to present their channel from the very beginning,’ – Farhana Sharmin Shuchi, Manager – Foreign content acquisition and relations at Kids TV channel of Renaissance Group, Bangladesh However, the general practice shows that in this media business game, a satellite provider always controls the ball. This becomes obvious when we note that they more often initiate the contract termination than the channels. ‘If the channel is losing ground among the audience and looks worse in terms of the price/watchability than the channels with similar programs that are present in a particular package, we support the initiative of revising the commercial terms. It should be noted that the willingness of the right holder to minimize the payments for the content, and agree
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FARHANA SHARMIN SHUCHI
Manager – Foreign content acquisition and relations at Kids TV channel of Renaissance Group, Bangladesh
SERGEY TUROMSHA Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus
sometimes for a symbolic amount, does not guarantee a place on the ZALA platform. If the channel is less watchable than the other channels with similar programs, the chance to get on the platform is minimal, even when the competitors offer higher rates. It may be interesting to trasnform ZALA into a ‘reserved area’ of mediocre, but cheap channels, in terms of a one-time-only financial result, but absolutely useless in terms of preservation and growing of the subscriber base. That is why we sometimes initiate termination of the contract with TV channels, whose ratings fall below an acceptable level,” – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus Nevertheless, they set the rules and control the game. After all they depend on the content quality and consequently reliable and committed partners, i.e. channels. In this regard, newcomers in the TV industry should pay to the Satellite Providers before they boost ratings and earn money, but after reaching the summit of national popularity the scheme of partnership changes to the contrary. ‘The most important thing is our high quality and premium content, which we show across our full channel portfolio. It attracts subscribers and gives them the reason to pay for TV services. Thus, operators receive the necessary means to grow their own revenue,’ – Rodion Pryntsevsky, General Manager North East Europe, Fox Channel, Baltics States & CSI. Providers are constrained by their technical abilities and facilities, but being a mediator between the channels and the audience, the Satellite Provider shape this business. Thus, while the channels are fighting for ratings and love of their audience the satellite operators fight against one another for providing the best service at the market. After all, both of them are totally depending on ratings, demand and consequently the love of their audience. “The main principle of the ZALA content formation is to focus on the user preference. It is important that everyone can find
FEDERICO E. MARTINEZ
President Legacy Entertainment Holdings, Mexico
RODION PRYNTSEVSKY General Manager North East Europe, Fox Channel, Baltics States & CSI
something interesting for himself on ZALA channel. The main requirement for television is high rating among the subscribers,” – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus “Like any company in this business we all are after ratings or, put another way, a great number of viewers to maximally increase our revenues. We focus on the high quality content that drives ratings and/or,” – Federico E. Martinez, President Legacy Entertainment Holdings In this regard satellite providers usually make some channels rating measures, using different instrument, tools and approaches, which vary from simple tasting to complicated demand monitoring tools, among which the most popular is Nielsen Rating measurement. Thus, the results of such in- “Nielsen remains one of the biggest vestigations are laid and most recognized rating companies. upon the terms and In Latin America we have IBOPE, which conditions which here- provide ratings based on the monitoring inafter will set up the of viewing habits,” – FEDERICO E. base of further partner- MARTINEZ, PRESIDENT LEGACY ships and consequently ENTERTAINMENT HOLDINGS the frameworks of bilateral agreement between partners. “We almost never buy a ‘pig in a poke’, and offer the channels to pass the test procedure in order to obtain objective data on their rating. Afterwards, if we are interested in continuing cooperation, we discuss the financial terms and the place of this channel in the general or thematic package. When determining the rating we have the ability to abstract from our own preferences, sociological studies or reviews of the content owners regarding the television product. We rely on ‘dry figures’ of the IP-platform. The make final decisions regarding the channel broadcast based on three components: the subject, the rating and financial conditions of cooperation. Periodic review of
#7 / November-December 2016
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BATTLE FOR PLACE IN THE SUN AND RATINGS
B2B IN MEDIA the content available on the platform by these three parameters allows us to quickly adjust the conditions of cooperation with TV channels,’ – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus» As you can see, the “Boss” here is the Demand and thus the Viewer. The channel rating is the first and the main prerequisite for all further interactions. Consequently the form of cooperation depends on the place taken by the channel under the media “sun”. They are varied from mutually beneficial ones, when the channel is highly rated, and those on a paid basis (for example, for the beginners). Any way there are channels that will always have place in the provider packages regardless of where they are elements in food chain of the media industry. “It is very costly to operate a channel. Not only proper technical infrastructure is required. Costs associated with programming are also substantial. So, only government sponsored and religious channels can afford not to earn profits. Every channels that does not add value to the subscribers for their content needs to pay to the operator, for example, QVC is a 24 hour Shopping Network, they pay to the operator for distribution. There are also different types of deals like Pay Per View, where the content owner actually pays a percentage of fees to the operator for using their platform.” “Cooperation with the right holders when placing the content on ZALA television is carried out using a variety of business models. The key factors in choosing them are channel popularity among ZALA subscribers, as well as content owners’ interest in advertising audience of our television platforms with includes more than a million of housewives. Top-rated channels focused on the struggle for the advertising budgets are usually present on the platform on a conditionally paid basis. Payments for the content in this case are rather symbolic, but this partnership continues to be mutually beneficial. We, as an operator, obtain the channel with a high rating, and the owner of the channel has an additional powerful argument in negotiations with advertisers in the form of our subscriber base. Another group form TV channels with high ratings, not using advertising as a source of funding. Their high ratings are achieved through broadcasting the high-quality content, which costs to the channel owners a lot of money. Accordingly, in order to have a right to broadcast these channels, we provide certain benefits. The third group consists of low-rated channels whose owners, however, for any reason want to be present on the ZALA platform. Since the channel broadcast in any way associated with the costs, in this case, the content owner is offered a contract for the channel placement on a paid basis that also provides for payments, but in this case for the benefit of Beltelecom. The shares of these groups on the ZALA platform are our commercial information. Let me just note that channels with low ratings are willing to pay for the broadcast, the market is very small. Although the financial conditions, in our opinion, are no barrier. Rather, the right holder are unwilling to actively seek other ways to monetize a ‘serious’ audience,” – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus Comparing different cultural and social environments, as well as their impact on the media business in general, it is important to notice that there are some significant differences between the postsoviet states and those following the footsteps of the capitalism for a long time. While the first ones remain rather closed for specific foreign cross-cultural content and give preferences to the allied content (keeping the legacy of the past), the last ones rather prefer multicultural content and are open to innovative and unexpected ideas.
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“No doubt that Russian channels prevail among the foreign channels, but this factor is largely due to the language barrier, since the relevance of the content in other languages is relatively low,” – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus. In the former case, the audience is used to consume inexpensive or even free TV services that have mainly shaped the media business in the CSI countries, even more complicated and less profitable. At the same time, the competition in the market made the environment even tougher. In the latter case, the audience inevitably holds a mentality that a worthy and valuable product comes at a price. It learns to use an expensive and, at the same time, good content. “The maximum savings on costs for the content is due nit only to the ‘imaginary ‘greed’ of operators, but also to a low solvent demand of the population. The subscribers have become accustomed that television should be either free or inexpensive. Therefore, it is very difficult for the companies to make a significant leap in the development due to the price of the product,” – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus. THE “MUST-HAVE” FOR EVERY PACKAGE At the same time, there is one global trend in public\state channel broadcasting practice that is common for all regions: it is referred to the so-called “must-have” for every single package of every single provider. Different states regulate this in a different manner, but such channels still have a great virtue compared to the others, and can significantly change the whole landscape of the media environment. “In the international markets, the same industry standards are applied. Some countries have governments that subsidize their channels and programming to maintain their roots and promote their culture. Sometimes such channel is offered for free. It is important to remember that a DTH operator also has its cost for including a channel, since it takes space on its transponder and consumes MHZ. Some countries like the US and Mexico have the co-called “must carry/must offer” rules when the operator has to carry local broadcasting stations on their PAY TV systems, and broadcast networks have to offer their networks for free. Mexico recently had great problems, because DIREC TV Mexico which is a direct competitor of Televisa’s SKY stopped paying Televisa and Azteca subscription fees for their major channels,” – Federico E. Martinez, President Legacy Entertainment Holdings DIGITAL BOOM Regardless of some problems it is important to admit that the growing interest to the digital TV opens up new opportunities for development to both the providers and the channels, but at the same time they face new challenges. In one respect, the ongoing evolution of the digital broadcasting technology considerably increases the capacity of the transmission bandwidth and enables to provide a wider range of services, better picture quality and improved coverage, and this is an essential advantage for satellite providers. In other respect, rapid expansion of the high capacity data networks offers a broadband Internet access to consumers, and the progress achieved in the TV industry during the last 20 years winds down. In fact, the television – in its traditional meaning – does not exist anymore due to the Internet and digital revolution. The Internet plays an increasingly important role in delivering the audio and visual content. This means that the whole media business is being transformed, glob-
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ally and drastically. The way of doing the media business reshapes, and this is an ongoing process. New players on the playing ground change the strategy of the game started. Along with the TV channels, Video Production Companies and Satellite Providers, there are also OTT and SVOD Platforms that simplify the consumer’s life and complicate lives of traditional media players. ”Many MSOs and programmers have launched their own OTT and SVOD platforms; the viewers seems to be heading to those platforms although Pay TV Subscriber base for Latin America is still growing. Operators are looking for added value on your programming; for example, Fox offers subscribers a comprehensive OTT video to go platform that adds value to the subscriber. Another clear tendency is the fast migration of SD signals to HD. SD Channels are going to be out of demand soon,” – Federico E. Martinez, President Legacy Entertainment Holdings “The current situation in the Belarusian market can be described as highly competitive and, therefore, very difficult for operators and TV channels. In a competitive environment complicated by the informal presence of the Russian satellite and OTT-platforms in the market that are able to offer a much wider range of channels, operators literally have to fight for each subscriber. In addition, some operators use the practice of piracy regarding some channels, hide subscriber bases from the owners in order to reduce the costs for the content. As a result, diligent market players who actually have to operate on unequal terms are forced to take an aggressive position in negotiations with the right holders,” – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus” Even though, the digital television industry is developing more rapidly in comparison to satellites and terrestrial broadcasts, the digital TV market is facing a number of challenges. In order to provide global solutions for television makers who are trying to integrate the analog and digital functions in a single design, it is important to address this challenges. In this regard provider should combine different approaches, offering malty-channels packages trying to force their audience to remain devoted to them. They are trying to attract their audience with a loyal price, multiplicity of tastes at one package and the varieties of access. Thus the requirements for the quality of content are a vital argument even more for being conquerable at the market the content ought to be unique. “Many Companies are offering multi-channel packages so that they are able to charge the operator $1 to $2 USD per subscriber for up to channels but the operator only uses 5 of those channels, sometimes even less. Sometimes the operator only wants their flagship channel but they need to pay for all the channels in the package. On our particular case we were able to secure strong distribution in Latin America for our Networks, we get paid an average of 10 cents per subscriber for the SD and HD version of the Network.” “Good content is in great demand. The famous quote ‘Content is King’ of Bill Gates also refers to the present-day media market.” “The top networks dominate the market; FOX, Discovery, ESPN are those channels that every MSO must offer to their subscribers. Newcomers can go through rough times securing distribution,” – Federico E. Martinez, President Legacy Entertainment Holdings “I will note three important factors that affect the overall market. The first and, in my opinion, the most important thing is rigid suppression of the practice of piracy and concealing subscriber bases by regulators. Such actions will put all players on equal
terms, and thus improve the competition. The second one: we should put things right with the situation around the illegal presence of Russian satellite systems (Tricolor TV, NTV) in the market, which are in a more advantageous conditions compared with the Belarusian operators, primarily in terms of broadcast content. The third one: we should align working conditions in the market for traditional cable operators and the owners of the OTT-platforms. The letter operate today in a certain legal vacuum, and, of course, enjoy benefit of it. These measures could streamline the market, force casual and unfair players to fold operations. This would give a certain impetus to the development of a civilized market,” – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus NEW ERA OF ADVERTISING The other tendency that we could not omit refers to the decline and transformation of advertising, which, in its turn, also influences the media business. First and utmost: an advertisement has always been the main source of profit, and now we have a new trend when the Global Production Companies create their own online platforms free from advertising. For example, Netflix and other subscription service providers show how suitable it can be to watch television without commercials. The irony of it is that their content is filled with TV series that became possible due to the revenues gained through commercials. But how would the channels survive without advertising? Those that have developed on a paid basis and already have their permanent customers will survive easily, but what about free television which still prevails in the CIS countries? It seems they will not be able to survive without quick adaptation in a qualitatively new environment. In conclusion it would be a good thing to summarize the above mentioned and try to understand how much can a channel earn per month on average in the current situation on the media market, but unfortunately there is no certain answer. Media players in different regions apply entirely different approaches to how they do their media business. So the answers will be different as well: one gives an amount for some specific case, while the other one generalizes some average amount they pay to partners and underlines that it is not certain. “With subscription fees one channel can earn about .5-.50 cents USD per subscriber per month. If such channel has 1 million to 80 million or even more subscribers, then earnings turn to be substantial,” – Federico E. Martinez, President Legacy Entertainment Holdings “The sum of payments depends on many factors. In addition to the previously mentioned ratings, this is also about the channel’s advertising policy, and availability of similar topics and comparable rated peers, namely exclusive content. On the one hand, if the channel has proper ratings and premium content, it has, of course, a chance of getting relatively high payouts for giving us the rights to broadcast it more often. On the other hand, it is practically impossible for the top-end, for example, of film or music oriented channels to put forward aggressive financial terms, since the list of competing high-end channels is very wide. Specific payment amounts vary considerably, so it has no sense to talk about some average figures,” – Sergey Turomsha, Deputy Director General for Commercial Issues, RUE ‘Beltelecom’ Belarus Regardless of the Great Nix in the media industry, production companies continue producing, channels continue broadcasting and satellite providers continue delivering all these cookies to the audience. Show must go no matter the odds, until the audience is pleased with the content in the TV.
#7 / November-December 2016
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TOP 5
TECHNO BREAKTHROUGHS IN 2016
TOP 5
Techno Breakthroughs of This Year Media industry is simply impossible without new technologies and the whole audiovisual media business structure is developing together with the technological development. Quality, channels and methods of provision of audiovisual product are changing. In this context, we have prepared top technological breakthroughs of this year, which will not only be a source of inspiration for media production, but also will simplify and embellish the overall creative process. So, let’s sum up this ending year with the review of technological innovations and gadgets, which are interesting and useful in the media production, and some of them actually look like visitors from the distant future and affect the imagination. We will tell you about the most amazing in our top 5.
PocemonGo
We can easily say that 2016 is the year of virtual reality (VR). All the corporations – Sony, Samsung, Google, Microsoft, HTC – are engaged in development of virtual reality goggles and other devices, which help to dive deeply into the virtual world. With the explosion of new devices and content, you might feel like virtual reality is something very new. (A similar thing happened with 3D a few years back.) However, VR, at least in its modern consumer-friendly state, has already been used since 90s. Only nowadays the technology has finally caught up its purpose: to transfer you into another world that can be experienced and interacted by using sensory devices. Now, these virtual realities could look and feel like the real world, such as flight simulator, or could be completely artificial like an imagined distant planet, but in any case, they’re computer generated. Right now, for you and me at least, these other worlds are all about gaming, powered by such devices as the Oculus Rift, Sony PlayStation VR, Samsung Gear VR and HTC Vive. There are 360-degree videos and photos that capture the entire scene around the camera -- whether it’s shot with the professional equipment or a point-and-shoot camera. When playing in a VR headset, you can feel it immersive -- but what you see is real footage, not a simulation. You can look around and even feel like you’re exploring the scenery, but mostly you can’t interact with it and you can’t travel within it. You’re limited to what cameras can record. It’s a new form of photography and filmmaking, but you can also watch most of these videos and photos on a regular flat 2D screen. 360-degree video is not the same thing as VR. But the most important is that, for most of us, 360-degree content will be the first immersive “VR” experience we will experience. There is plenty of such content available as of today, and its numder grows daily on YouTube and Facebook. I bet most people, who have so far experienced “VR” on a phone, are talking about a 360-degree video they’ve seen, not a game. The numbers of 360-degree video will also continue to grow exponentially, as they will be made by professionals with high-end rigs as well as with one of many consumer cameras coming this year. It also doesn’t require a new computer to be used to watch it. To be clear, 360-degree video can be cool, and even transformative. And it can be broadcasted live: we’ve already experienced presidential debates, pro basketball games, press conferences and boxing matches in VR -- some of them were more successful, some not.
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On 6th of July 2016 Niantic, Inc. in cooperation with Nintendo released Pokemon GO - hyper additive game based on augmented reality technology. One and a half week later after the release shares of this Japanese company showed 1.5 times increase in price, and the whole world was captured by Pokemon GO fever. The game is based on the “Niantic’s Real World Gaming Platform” technology combining real and painted objects on a screen of smartphone. The player have to move a lot in the real-world surrounding places in search for hiding Pokémons, catch them, evolve them, and to release them for a fight against other Pokémons, and so on. To work properly Pokemon Go uses satellite navigation (GPS) and the Internet allowing you not only to track the exact location of the player, but also to impose fairy, fantastic content on the real objects. In this manner, the most common public places in your area (fountains, monuments, museums, etc.) are converted into so-called PokeStops, where you can get a lot of bonuses needed for the game. Furthermore, the instruments existing in the game allow you to install lures (attractive labels) in the right places and thereby to attract Pokemons and other players. In general, there are a lot of interesting things in the game.
#7 / November-December 2016
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GoPro’s six-camera rig has made its official debut at the 2016 NAB conference. Designed to capture 360degree videos that can be used for virtual reality experiences, spherical array, called the Omni, is now available for pre-order for a complete package. The Omni has an availability date of August 17. First teased during last year’s Re/code’s Code conference and announced last week, the Omni is a rig outfitted with six GoPro Hero4 Black action cameras — all synced to capture what becomes a 360-degree video. Because each Hero4 Black can shoot up to 4K, the final product is a video with resolutions at up to 8K; you can view the high-resolution video through a headset, or downscale it for desktop viewing on YouTube. Filmmakers have been using GoPro rigs like this for the past few years to film in 360 degrees, but this isn’t just another rig. Omni doesn’t just align the cameras the right way — each camera actually plugs into a central “brain” that syncs the cameras at the pixel level, which makes the stitching better than just about anything around this price point. Omni also syncs the settings of each GoPro so that you only have to punch them in on the one main camera. The value isn’t really just about the quality of the cameras and the spherical image they come together to create, though that’s a big part of it. What will be really attractive to filmmakers is the software backend that GoPro has developed for Omni. That starts with the Omni Importer tool, which is a laughably simple way of proofing and prepping the 360-degree footage that you’ve shot. GoPro says the Omni is designed for capturing sporting events, museum and tourism installations, hotel and real estate tours, and educational tutorials, which puts the Omni toward the consumer end while the Odyssey is geared toward high-end productions (you can see examples at the GoPro VR portal). It’s also possible that this rig could be designed for drone use, considering GoPro is developing one, called the Karma. It will be interesting to see the quality difference between a 16-camera rig and a six-camera version, although it should be considerable higher than single or dual-sensor cameras. There’s also no mention about YouTube or Facebook support, or about sound quality; the Hero4’s onboard mic isn’t the best, and audio is an important part of an immersive VR experience (the Odysssey supports external mics). GoPro is presenting various VR solutions at NAB this week, including the Odyssey and the launch of the aforementioned GoPro VR platform, which is available on the Web, and for iOS and Android devices. GoPro VR will be a place for users to host and share their 360-degree captures, much like the existing GoPro Channel for non-panoramic videos.
Amazon Echo Dot is a hands-free, voice-controlled device that uses the distance voice recognition. Through its built-in speaker or by connecting to your own speakers via Bluetooth or wired connection Dot uses the Alexa Voice Assistant to play music, provide information, news, sports scores, weather, and more - instantly. Alexa Voice Assistant by Amazon gained popularity among users due to the fact that it recognizes voice much faster and is more functional than, for example, Siri by Apple. Alexa also recently received an option to connect to Spotify, Pandora, as well as many other online music services, with the access to them by using voice control. Not surprisingly, Alexa can also order products from Amazon for you. You have to spend some time getting to say voice commands, but, if you wish, you can command Alexa to make a purchase. In addition, Alexa will help you with the basic problems in mathematics, convert measurements, using Wikipedia it will get answers to your questions, and it also have an infinite number of other capabilities. Dot can be operated in connection with any Bluetooth speaker that allows you to use any speaker system for significantly better sound, than it is in Echo. It also works with any audio system that has RCA input, which offers vast options for home theaters. You do not need to have a separate speaker or sound system to use Echo Dot. Frankly speaking, there is no other device on the market as Amazon Echo Dot. Its capabilities are unique, useful, and as in case with the original Echo, it will only get better over time.
One more solution to dive into VR-world is Compact and portable Pocket-VR, which comes exclusively with CandyShell Grip, is a portable virtual reality viewer like no other. Now you can experience the amazing world of virtual reality, share the fun with friends and take it with you wherever you go. Pocket-VR is a breakthrough in virtual reality technology, an exciting development in a segment that is just beginning to emerge and change the shape of how we game, interact and learn. Like with all new devices, it’s always good to understand everything about them. Pocket-VR was created for ease and portability, with Speck’s quality and protection in mind. Pocket-VR is the only portable virtual reality viewer on the market that is collapsible, portable, and offers lens protection. It’s lightweight, requires no assembly, and is easy to share with friends! Pocket-VR is designed for the most popular smartphone devices, iPhone 6s/6 and Samsung Galaxy S7, and is similar in size. Pocket-VR will fit in most pants and jacket pockets. Pocket-VR is designed to fit with the CandyShell Grip case, which is included with this VR viewer. CandyShell Grip offers a non-slip grip and military grade drop protection, making it the perfect partner for Pocket-VR. Pocket-VR with CandyShell Grip is designed for those who want to experience virtual reality content in shorter segments or while on the go. This makes a bulky head strap unnecessary. If you are looking for an iPhone 6s/6 or a Samsung Galaxy S7 portable virtual reality viewer with a difference look no further than Pocket-VR with CandyShell Grip
#7 / November-December 2016
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WHERE TO DECLARE ABOUT TALENT
EUROPEAN DOCUMENTARY FILM FSTIVALS
REFLECTING THE REALITY Film promotion at the festivals has already become a traditional high efficacy way to become famous, business relations and confirmation of talent of a promising director, which is such a necessary thing. When participating at a film festival it is a way more easier to become known and to find investors and distributors, to get information support, which stimulates mass media interest and content buyers, as well as to get proposals for new projects, and sometimes - cash consideration. Powerful argument is that the debut films often get the most reputable awards. In short, this method is not only worth special attention, but also could be used to study all the details that accompany the showing of movies at the festival. Or maybe luck will smile for you?
Krakow Film Festival (Poland) AFO (Czech Republic)
Docville (Belgium)
Docudays UA (Ukraine)
The topic of the festival column of this issue we have dedicated to a documentary films, paying special attention to the most interesting and promising festivals in Central-Eastern Europe, which not only worth participation, but also just require it, especially with respect to novice filmmaker. So, our selection of the most tasty and a little more about one of the most, in our opinion, gourmet meals. We would like to tell a little more about one of the most important European festivals in the field of popular science films called AFO. This festival has a very important mission as it tends to present science as an attractive, dynamic
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#7 / November-December 2016
Belgrade Documentary and Short Film Festival (Czech Republic)
and diverse sector by using cinema. «To see and to know» — the motto of the international festival of popular science films in Olomouc. There is no place for religion or politics. There is a supremacy of only one force - Science. Every year hundreds of documentary films and television programs participate in the competition agenda of the festival. Traditionally wellknown TV channels, such as BBC, Discovery Channel and National Geographic, present their films. In recent years, the festival has presented, for example, Albert Barille, the creator of exciting and informative series about the anatomy of cartoon «Once upon a time... Life»; Jeff Lieberman known as the host of
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the popular American show «Time warp» on Discovery Channel; Marta Holmes - producer of the film called «Life» by BBC; world known geneticist and evolutionist Steve Jones; Lord Robert Winston is well known in the UK as a scientist and popularizer of science, who believes that science should be interesting; Nigel Marven - British television producer and presenter, adventurer, known as a producer and presenter of a number of TV series, which continue the «Walking with Dinosaurs», in which Marvin «travels into the past» and participates in the events together with the inhabitants of the prehistoric world and many others. The festival takes place in April in Czech city of Olomouc;. AGENDA Science films are a unique category of documentary films, which occupy a significant part of modern television air time. The creators of the AFO festival are actively seeking for significant works not only in Czech Republic, but also among other international science films and present them to the academic community that is focused not only on modern films, but also on those, which revive the history of genre in the relevant sec-
tions of the agenda. Each year, the dominant topic unites films and guests from around the world, presenting science as a thrilling adventure. The agenda of «AFO» consists of various topic sections. They represent the universe of the natural sciences and humanities. Space travel, gender issues, clashes between science and religion, global warming, legalization of marijuana, suicide problems, complexity of space and light, video games ... And these topics are only half of the festival! Here people talk about the development and popularization of science in Czech Republic, super-heroes, watch «Interstellar» and «Star Trek», discuss the number of women in science. Fight against ignorance, information barriers, development of critical thinking. These are the topics of the international festival of popular science films in Olomouc. The best scientific documentary films of the last two years are presented at AFO festival, they are selected from approximately 400 applications each year. Highly qualified jury selects the winners in the nomination «The best world science documentary film» and «The best science documentary of Czech Republic», and also festival visitors
Jihlava International Documentary Film Festival (Croatia)
Astra Film Festival (Romania)
Pärnu International Documentary and Anthropology Film Festival (Croatia)
ZagrebDox (Croatia)
choose their own best film that is acknowledged by the Audience Award. This year the festival celebrated its fiftieth anniversary. 50 years. So much for the man, but so little for scientific knowledge. Film shows, lectures, workshops are carried out every day from morning until late night. Their main goal is to uncover the little-known fields of knowledge, or shed a new light on wellknown things, as well as to establish contacts in the community. This year the number of participants reached five thousand people. Students, teachers, scientists, writers, director ... People of different ages and nationalities.
Artdocfest (Russia)
AFO is proud of its diverse accompanying agenda. Concerts, exhibitions, open-air screenings set its own special atmosphere which spreads throughout the city. AFO annually acknowledges eminent scientists for a lifetime contribution to the popularization of science, which devoted their time to impart and open their knowledge to the public through innovative and intriguing methods. They make you forget about stereotypes, radically changing the image of science. Open your small world of documentary works to a big world of cinema, and may you be lucky this time!
#7 / November-December 2016
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ON THE AGENDA: CLOYING QUESTION
To “be” or “seem to be”, or what is behind the semblance of free speech in Ukraine and in the territories of the neighboring countries? – SSTR correspondent Yana Sereda treads on the heels of the domestic TV industry.
Well then television in the context of a business trilemma “business – free speech – an instrument of political influence”. Avoiding excessive politicization, let’s try to get a clear and fair idea about the essential existence of the domestic TV production, thus answering the question of whether the post-Soviet television can be really considered to be a business today and whether it brings in profits to its owners? It is obvious that despite all socio-cultural transformations the role of media has not only saved its social significance, but also gained a new and stronger virtual influence. Nevertheless, at the back of loud declarations of noble and lofty goals there are often no such idealistic motives; and the colorful facades of supposedly objective broadcasting often keep out of the eye personal interests infested with populism. An inevitably prosaic reality of our common post-socialist experience proves that serving the public needs not always meets elementary norms of “moral integrity” and “moral health”. So: “Do apple trees blossom on Mars” or what are, in fact, TV channels in Ukraine, what prevents them from really “being” rather than “seemingly being” a business, as well as what alternatives are possible to the given circumstances? We thank out experts for the recent comments and sincere answers:
POLITICS OR PROFITABILITY? No doubt that a TV channel, like any business, must be profitable and produce a competitive product. Otherwise, due to the lack of profitability the reason for its existence as such will vanish. And no matter how loudly speaking persons of the political beau monde deny their involvement in the ownership of a number of country’s leading top-rated TV channels, an intelligent person is able to easily guess about the true purposes and the reasons for such state of affairs. However, only direct evidence of these channels operating at a loss can serve as the only evidence that we have for our expressed suspicions. According to official statements, at the beginning of 2014, Inter had an income of 680 million UAH and losses of more than 1 billion UAH, the situation with STB was much better. But the channel still showed a loss of 16 million UAH. Given the rapid collapse in the value of the hryvnia that coincided with the start of the political crisis in the country – that in late 2015 resulted in the record inflation rates at the level of 43.3% for Ukraine – such extent of losses incurred by the central TV channels for the whole period was quite expected. Therefore, there are no prerequisites to say that during this time the situation could be improved in any way. Moreover, our unpleasant findings were also confirmed by the words about the situation around the TV business said by Vladimir Borodyanka, StarLightMedia, at the recent major media meeting – Kyev Media Week: «The TV business still remains extremely unprofitable in Ukraine …» DO THE KEY SOURCES QUENCH THIRST? In all likelihood, it makes sense to assume that the export of a high-quality video product and advertising earnings would improve the situation with the channels. But we should not also forget about the influencing factor of falling prices for advertising media, as well as remember that despite the gradual improvement of the quality of our domestic TV product, it is still focused on domestic consumers and is of little interest for export. Thus, compared with the near abroad, the cost of advertising in Ukraine are 15 times less than in the neighboring Russia. In turn, raising the cost of advertising will load the price and increase the cost of consumer goods advertised to the level completely unaffordable for the consumer, who has already seriously suffered the rampant inflation plague. In turn, the attempts of the leading TV channels to raise the cost for advertising broadcast services by 40-70% in January 2013 triggered a
wave of indignation of many major clients, such as Procter & Gamble, Kyivstar, Schwarzkopf & Henkel. As a result, the companies declared an advertising boycott by completely surrendering television services. In spite of this, an union of such TV-groups as StarLightMedia owned by Victor Pinchuk, Inter owned by Dmytro Firtash and Sergei Lyovochkin, and the Media Group Ukraine owned by Rinat Akhmetov managed to increase costs by an average of 25-30%, but as we can see today, they failed to earn the expected profits. However, with regard to advertising, the country’s top channels nevertheless found a very worthy way out of this situation by incorporating into their corporate structures departments of the so-called integrated solutions: a kind of advertising agencies in the television structures that offer its clients different options and opportunities for joint advertising campaign, the so-called co-branding. Thus, the TV-channels kill not only two, but three birds with one stone: they advertise their product, acting as a partner for co-branding, as well as offer its client and partner a more attractive cost for advertising. As a result, we have nothing but a monopolized market, where media production and TV companies with less resource have no place and no chance to survive. It seems that in such situation, in order to cut losses, it would be easier to give ear to the advice of Vladimir Borodyanka, StarLightMedia team leader: «If we want to remain profitable, then only two media groups should remain. Then, these two media groups will have profitable broadcasting businesses, while others will have profitable content creating businesses.» In all likelihood, it makes sense to assume that the export of a high-quality video product and advertising earnings would improve the situation with the channels. But we should not also forget about the influencing factor of falling prices for advertising media, as well as remember that despite the gradual improvement of the quality of our domestic TV product, it is still focused on domestic consumers and is of little interest for export. ...If the club’s owner invests through a sponsorship agreement with its company, the UEFA’s competent authorities launch an inspection and, if necessary, compare the ratio of expenditures and profits under this agreement with the market prices. According to the amendments, if a legal person or several such persons relating to the same owner and the same government structure provides for more than 30% of all club earnings, then such legal person will automatically fall into the stakeholder category...
#7 / November-December 2016
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ON THE AGENDA: CLOYING QUESTION
Such solution may be implementation of the law banning (or restricting) subsidies to TV. But will it go through at least the first hearing, if it threatens the existence of the whole empire… or empires…? ARBITRARINESS OR FORCED MEASURES: TV VS TELECOMMUNICATION SERVICE PROVIDERS If we look at another profit source: cooperation with the operators of telecommunication services, the state of affairs is just like in the mirror-world. While the TV channels earn worldwide from selling their products into the package of service providers, we are doing things exactly but on the contrary. Thus, in order to get into the package, the domestic TV channel has to pay to the operator. One would think, what might be the reason for such a different approach: the telecommunication service providers are willing to pay for the imported content, but not for the domestic one. Moreover, the local TV channels are compelled to pay by themselves to get into the service package of the telecommunication provider. Could it be due to the fact that the providers are limited by law in their autonomy to choose channels to form their services? At least, by the list of channels that are compulsorily included in each package called “Universal Service Program” (USP), according to which the package should mandatorily include public, analog, regional or local (financed by local communities), as well as socially significant TV channels. Earlier this list included the so-called “licensed channels”, but now the yesterday’s happy licensees trampled a legalized loophole to USP through the socalled “social significance”. The reasoning of such social significance is rather ambiguous – ratings by views – and there may be a grab bag of criteria for the so-called “social significance”, which in turn provides the ground for all sorts of maneuvers and manipulations with concepts. Thus, telecommunication service providers are limited in their choice by the so-called must have channels. As for all others, they are standing in a long and commercialized queue on standard terms to be able to broadcast within the lists of provider not so evil in nature, but rather tired of the need to cram the interests of consumers and the so-called state into the narrow confines of their technical capabilities. According to the Road Map for reforms in the national television, all commercial TV channels will be excluded from the USP list and thus find themselves in the same position under the same market conditions as others, as soon as the Ukrainian television in general switches to the digital format, and surrenders existing analog broadcasting formats. Perhaps that is why the process of digitizing the national television until now still does not have its logical completeness. ALL FORCES IN CONTENT Theoretically, it is possible that the whole issue is about the content of the TV channels (let’s say), which have nothing else to do but to pay for their existence on the screens of their viewers. But even in spite the fact that domestic TV channels tend to decrease their video production budgets (despite the reverse global
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#7 / November-December 2016
trends), almost in a starving creativity faint and by a series of periodic desperate efforts, they manage to create an orderly harmony of form and meaning out of the “universal chaos of nothing”, Therefore, we cannot say that our production companies and TV channels have absolutely nothing to offer. It is obvious that every video production company, wishing to increase profits, is trying to maximally raise the cost for production and to have the most recognizable faces in shot and the most experienced professionals working behind the scenes, at the same time increasing the cost for the product. Thus, the more content costs, the fewer risks to be out in left field and become an outsider in the market it has. The bigger the budget is, the better chance of success and sales appeal it has. However, contrary to the global trends, domestic production is still looking for the ways to reduce production costs, according to the principle: “We will do no worse, but with a smaller budget”. And we really manage it, and even somewhere more interesting and brighter, but in order to present our domestic TV product on the export markets, the quality alone will probably not be enough; here we still need an inimitable and unique idea. Alas, things do not click with unique ideas for the creators that are used to fear to go beyond the established traditions with good reasons. FORMATS AS A LIFELINE This is what the domestic creators of the format shows, in fact, demonstrate. Their quality is not inferior to foreign analogues, but the novelty that would be able to amaze and catch the interest of a potential foreign partner still lacks. Nevertheless, it is fair to recall the recent victory: the sale of an option on Ukrainian TV series “The Servant Of Nation” on the United States territory that was recently made between the FOX Studio American Broadcasting Company and the 95 Quarter Studio, which can be safely called a breakthrough in the domestic TV production. Let us hope that this breakthrough (I dare to call it rather a “personal” achievement of the 95 Quarter Studio, than of the domestic TV production in general) will be an impetus to development of other producers of both the show formats in Ukraine, and the TV business in general. To create memorable and successful content formats, one needs to be bold, go beyond the social stereotypes, expectations of the society, and even beyond one’s own capabilities, and not to be afraid of being “too much”. Thus, we can safely assert that Ukraine augments its potential in developing its own show formats, but even with ready to launch ideas, it is still difficult for us to become a full-fledged partner in the international media market, since cooperation with Ukrainian TV channels bears certain risks related to foreign policy for the foreign partners. And the market situation would probably change and infuse the media players with hope for a brighter future, if we switch to digital broadcasting, but as the proverb says: saying is not doing. As it can be understood from the above, the conditions for the development of the TV business are, mildly speaking, adverse: “In principle, there are four sources of funding of any media: circulation sales (video content), sale of advertising media, donations from the founders and voluntary contributions (including grants). Only if the consumer pays more than twothirds of the product value and another one-third is covered by advertising, the media may feel free,” Alexander Feduta, correspondent for the people’s will (Belarus)
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PAVEL YELIZAROV at «Shuster Live»
I dare to assume that the only source of funding for our leading TV channels is donations from their “leading” founders. Thus, in fact, everything is clear with the country’s top TV channels, once pocketed for personal needs of billionaires endearing the political Olympus. Just imagine how convenient it is to have a personal storyteller, entertaining the crowd with juicy tales and fables: he will not spill the beans and will make the onlookers believe exactly what one needs them to believe today. Probably we cannot right off hand dismiss also the most naive version of a possible motivation based on a pure intention of the powerful to act as patrons that support the languishing life of the domestic TV industry, thereby prolonging its agony of death. But I think everyone will agree with me that such prospect is only possible in an alternate reality, but we still have to live in this one. CAN A BIRD SING IN THE CAGE? As for a parrot being intelligent enough, then provided systematic training and nutrition, it quickly begins to repeat everything without any discrimination, and provided good care it will also amaze the audience with a variety of colors of its plumage. But nightingales usually die when kept in the cage. “Unfortunately, in Belarus, the state is the main source of funding for the majority of the media. It also monitors the market, including the advertising one, manages advertising streams, and gives instructions, which publishing house will be put an advertising and which not. It defines the framework conditions for the existence of the media, denying registration or a license. Therefore, there are no free media players in Belarus,” Alexander Feduta, correspondent for the people’s will (Belarus) Summing up: he who calls the tune dances. In the neighboring
friendly Republic of Belarus the control and issue of licenses to the parrots is exercised on a standalone basis. In the less friendly but no less authoritarian Russia, the right to the first night is given to the nation’s favorite hero and the leader. As for Ukraine, being almost progressive, almost civil and even almost a society, that has drifted into waters following the capricious Western democracy, the situation reminds me of a story shown in some forgotten Soviet cartoon where the monkey counted the boa’s quantitative potential of consumption in terms of parrots: “One parrot, two parrots...”. However, I do not remember how it all turned out – I sincerely hope that good, but ... it is frightful to even try measuring the potential of our boas in consuming parrots. — Is there any solution? Perhaps, but who is interested in looking for it?.. In this regard, the social and political context is of vital importance. The television for the nation should be formed and be under the nation’s constant and strict supervision, otherwise the television will form and control the nation. “I have already said that two-thirds should be covered by the buyer of information, and one-third should come from advertising. But there should be a free media market in the country. Media must be a business, not a tool of influence over the government and the voters,” Alexander Feduta, correspondent for the people’s will (Belarus) STAYING ALIVE A natural question arises: how can the TV channels facing the nuclear winter ruling the TV industry stay afloat? How can the TV channels wishing to “play” honestly and “broadcast” honestly survive? We asked Pavel Yelizarov, General Director of 3S.TV, to share with us his personal experience of survival in a hostile environment.
#7 / November-December 2016
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ON THE AGENDA: CLOYING QUESTION
You have recently founded a new TV channel 3S.TV, probably as an alternative to the Schuster-live program. The project will be partially financed by the voluntary contributions (crowdfunding); tell us after all, what was the impetus for this decision and do you already observe results of your so-called experiment? In fact, the reasons are quite obvious and lie on the surface: we had no other choice; despite the popularity of the Schuster’s show, leading TV channels refuse to put us on the air and to buy our content. And if we say that the financial foundation of any media production stands on four pillars, including profits on sales of one’s own product, advertising, donations from the founders and voluntary contributions, we can only rely on voluntary contributions and donations from the founders. The cost of advertising is extremely low, and the country’s top-rated TV channels do not want to buy our product for obvious reasons that are known to everyone. Let’s talk about voluntary contributions – I would even say it’s not exactly contributions, if I’m not mistaken; you offer certain club membership with all related benefits to your patrons; you have recently launched this initiative, what results can be already observed today and how many members do you already have in the club, as well as how much, on average or in the overwhelming majority, are they ready to donate to support the “free speech”? I must say that as of today there are more than 18 thousand subscribers. As for voluntary donations, those are mainly sums not going beyond 1 thousand UAH, and about 70% of all
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donations make up sums equaling an average of 200 UAH. Tell us please, who watches you for the most part; who is your viewer? These are mainly people over 35 years of age with one or several higher educations. In general this is the audience which is able to think critically. By the way, I also occasionally watched Shuster-liver, and now I basically looking for you on the Internet. Let’s go back to the financial issues: tell us, is the sum raised from voluntary contributions sufficient to develop? I believe this is not enough to even stay afloat for some period of time. Yes, this is really a sufficient sum yet, we should have at least 4 million viewers, so that we can justify our efforts and stay firmly on our feet. In fact, a TV channel may become a business, only if we ensure the same market conditions for all market players. Now we are developing and looking for new investors, so business investments will go back to their owners in the form of capital growth invested in our TV channel. Moreover, we want to remind that we offer everyone an opportunity to use our TV platform to protect SME interests. It sounds intriguing and promising, and yet, if I understand correctly, if the shares are transferred to the stakeholders (persons «concerned»), it can be fraught with consequences and threaten the loss of autonomy and independence in decision-making? Correct me, if I’m wrong. This is true, when the controlling stake is concentrated in the
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hands of a single person. To avoid this, we have decided to sell only a little less than half of the total stock by 1%. We plan to raise about 100 independent shareholders by distributing 49% of the company’s shares between them and still holding 51% stake, if anyone will be interested in buying up all the shares being sold. So you own the controlling stake? Me and Savik: we go share and share alike. And do you succeed in finding new shareholders? We already have one happy shareholder – this woman is our viewer from the USA. Pavel, you have a vast experience; share with us how to make a TV business successful? Show me at least one channel in Ukraine, which would bring profits today? Pavel, and what about the grants, which also could help the business to hold a seat as a TV business? It seems everything concurs to make this successful? I partly agree with you that today’s conditions are really encouraging, and we as an emerging TV channel, would like to be able to take advantage of such support as the financial impetus for the launch and further development. But I am convinced that we should not abuse the grants, and after securing certain position in the rankings, as well as in the market, we would like to move to our own facilities. Grants, when used frequently, lead
to addiction and degradation. When there is a constant stable source of funding, there is no need to develop. Pavel, thank you for the time you spent with us. I sincerely hope that your project (as a matter of fact, ours as well) will be successful, in spite of all existing barriers. We wish you inspiration, new ideas, and, first of all, a healthy and adequate business environment for their realization. So, can television be considered to be a business today? This question still remains controversial. Perhaps there are those who wish to refute the above conclusions, and I sincerely hope that such people do exist. However, in the pursuit of truth, the same unchanging reality has emerged: in Ukraine, and most likely in the whole post-Soviet space, television still cannot be called a business, but rather the most powerful tool. But, in all likelihood, financial indicators should be one of the indicators of information purity as well. As a user of information services, I myself would like to have free access to information on where the TV channels spend their money, as well as where and how much money they get. However, according to the systematic socialistic tradition, public access to the information still remains only a loud phrase that is sometimes nice to use in the revolutionary appeals lulling the nation’s vigilance. How ironic it may sound, but the free speech should be able to take care of its creators, otherwise it will simply wither away from hunger and cold. And as long as the journalism is being kept on the hook by the policy, there will be no place either for the television business, or the free speech.
#7 / November-December 2016
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The Brave New Content World: 8 Challenges for TV Content Production Businesses Never ever before has the world been a better place for TV content production than in these days. Never ever before has it probably been more difficult and risky to become successful with TV content. While we can witness the heydays of TV, we also see so many production companies struggle to find their success – and not to speak of all the too many would-be-producers. In this brave new world of TV content any producer faces a set of challenges. It is also only the bravest and daring ones who are going to be successful.
CHALLENGE 1: DISTRIBUTION The distribution landscape has changed dramatically over the past decade. In the past the outlets for TV content where TV channels only; later Video tapes and DVD emerged. Then came the digital revolution, came broadband and came Internet giants like Facebook. Today a viewer has tons of different ways to watch TV or a TV show. From cable and DTH as a base commodity, audiences consume TV via OTT, VOD service, Webstreaming portals, on their mobile and so forth. This complex distribution environment poses a challenge for producers: shall you focus on selling your production onto a TV channel only? Should you risk launching your own webstreaming service and maybe even rely on advertising income only? What about all the proper licensing rights – is catch up, storage on NPVR etc. covered…. The complexity is often hard to handle and can be quite overwhelming.
CHALLENGE 2: NICHES The variety of distribution outlets created also the opportunity for many niche communities to flourish. Now every genre seems to have its own TV services. Every theme is addressed via a specific digital outlet. Digital tribes around such themes are being nurtured and managed often by players that are not typical TV buyers. For instance, a publishing house of hiking maps might have grown its portal into the place to go for all topics related to Hiking. They might now want to add video content and could be a good client for anyone who produces such content. Finding and matching the needs of audience, gatekeepers and producers in this niche world is often difficult – especially as it is a completely different business model or involves players who have other background and expertise.
CHALLENGE 3: GLOBALIZATION The way how distribution works these days has also impacted how content can now reach to far away places all around the globe. A TV show was usually produced for local audiences and markets only. No one would have dared to sell his show in a foreign market, let alone bringing the show format only there. But content is global now. We used to have Hollywood only; and now many markets around the world watch telenovelas from Latin America; or enjoy movies produced in Bollywood or Nollywood… and any new “–wood” can emerge any time in Eastern Europe or Asia. One has to be prepared – even only in the back of his mind – to go international; to maybe also try selling his format in foreign markets; to be ready to dub a show or have the transcript ready for such localization. Content travels these days – faster than we think.
CHALLENGE 4: VIEWING HABITS Again distribution technology and the new TV outlets played a major role in this challenge. People watch now TV differently. The classic Saturday evening TV show is history. People consume TV whenever they feel like. They might watch it alone, they might watch in on their tablet in their bed or while riding on a bus to work. Even more challenging: binge watching is a different new way of TV consumption. Hence, TV content is also now released differently. Platforms like Netflix have demonstrated the impact and success with releasing complete seasons of a TV series. Overall the TV consumption has increased. This is good news: More people watching more TV increases also the demand for TV content. The cake gets bigger everyday, but how people consume their slice or bite of the cake has become more diverse.
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ON THE AGENDA: CLOYING QUESTION
CHALLENGES FOR TV CONTENT PRODUCTION
CHALLENGE 5: EVERYONE IS A PRODUCER Technology has not only changed the distribution landscape, it made it easier for everyone to become a producer. No family event, no holiday or anything else you wish: you can now record it and publish it on the internet. Mobile phones are high end cameras, digital portals like Facebook allow for live broadcasts from everyone. The content noise is like a tsunami. You as a producer must find a way to stand out. You must demonstrate that you offer more creative, high-quality content. This means investment in equipment, people and the creative process. When everyone can cook, only the best can become Chefs. That is hard work and dedication – and often also requires deep pockets of financing your productions.
CHALLENGE 6: SOCIAL MEDIA In today’s world social media has become a common place. Even the remotest little bakery shop has its Facebook presence. People twitter, snapchat, whatsapp etc about what they watch on TV. It is instant and it can create hype or doom for your production. A good TV production will be ready to address this: every production needs its social media presence; the more sophisticated ones build the social media activities into the creative process and make it a part of their production.
CHALLENGE 7: INTERACTIVITY If you think in traditional way of TV production, you will think in terms of broadcasting. A one-way communication from one sender to many recipients. Todays TV world is however, a multicast environment. Many senders reach out to many recipients – and this in a multi-way world. Today the recipients send feedback via social media or even interactive TV features. Audiences interact in many ways now with their TV shows: by simply participating in casting or voting shows; by more complex channels like social media comments or in the ‘dark’ when they discuss in dedicated forums about your show. It is not uncommon now that a production reacts to these messages and adapts a show based on feedback from the audiences. Some shows are even so daring in that they let the audience decide on how the show evolves. And the future has some more challenges in store: virtual reality is at the doorstep and will promise to be the ultimate interactive TV experience.
CHALLENGE 8: RISK While certainly all previous challenges are a risk in itself, the risk of doing business in general has become bigger in TV production. TV Channels or other buyers might require you to produce full-blown pilots. You must pre-finance such pilots and are alone with the risk of failure. TV shows can be launched and then stopped on short notice. TV channels do plan their program slate in advance, but are also more willing these days to change everything in mid-season. Only companies that are willing to take more risk than others, who have the resources and culture to face such risk are more likely to produce that next bit hit. It means naturally that the power of production gravitates for some time to larger production houses who can absorb a flop financially more easily and risk to produce various pilots. But it is also in the nature of larger organizations to become more risk-averse as they grow in size. This is the opportunity for new, daring, small entrepreneurs. Production has become one of the most entrepreneurial-spirited industries. You see some successful production now that come from smaller players, from non-traditional players; from people who believe in their dream and go for it.
In summary, TV production is nothing for the faint-hearted these days. A successful production company needs daring people who face this challenging new world. It requires often huge funding budget and a lot of patience to get return of investment. It must most of all have very creative, brilliant and dedicated people. Are you now ready to face the challenges and will surprise as all with the next big TV hit?
CHRISTIAN KNAEBEL CEO & President, Global Media Consult #7 / November-December 2016
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ABOUT CREATIVE WITH HUMOR AND COFFEE
ะกREATING THE COMMERCIALS
THE ART AND CRAFT OF ADVERTISING Following the white rabbit of advertising down the deep hole of modern digital world - with our correspondent Yana Sereda and media expert Natasha Louckevitch. We used to consider an advertisement as something usually annoying and tiresome and thus always try to omit it while watching TV. Nevertheless, keeping pace with the modern transformation the advertisement, as well as TV in general, is trying to tune in to the spirit of the times and be smart, mobile, clear and fair. After all the ultimate success of any advertisement and thus its quality are defined by its purity and creativity. In this regard the craft of focusing the camera on the product is becoming more and more complicated. It`s no longer just a craft, step by step it is transforming into the real art of film-making.
NATASHA LOUCKEVITCH Demeter Films
THE TOP 10 COUNTRIES SPENDING ON ADVERTISING SPENDING ON ADVERTISIMENT AT 2016 200000000000
100000000000
0
Per capita
Sweden
35
Norway
Ranking in accordance to per capita France
#7 / November-December 2016
South Korea
Total spelling
Canada
Japan
Ranking in accordance to total spending Germany
Australia
Overal Score
UK
USA
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Just like traditional TV is no longer existing in it`s pure form due to the development of the digital format, which has completely transformed the media industry, the advertisement is changing its face as well. For example, the United Kingdom has recently become the first country in the world where digital advertising, which has already penetrated the web and phones, overtook the traditional form of the advertisement. This trend manifests itself, while newspaper and magazine sales are slowly declining and Internet use and access is increasing significantly. Let`s first take a
400
As we can see, the United States lead the list of top 10 countries that spend the most money on advertising. Any way in different countries it is differentiated not only in terms of expenditures, since a great number of other aspects are also being considered. There is always something more behind the necessity to sell the product – a real life of real people with their hopes and fairs, an imaginary life in an ideal world: beautiful, smart, creative, successful and happy. To be interesting to the audience it should coincide with the people’s interests and desires, their dreams and believes, after all with their cultural background and even history. This is the reason why it was so important to ask for comments a professional who has been involved in this process in various regions and countries for the comments and, as the phrase goes, could “feel the differences”. So, we decided to ask Natasha Louckevtich, an experienced video advertisement producer, what it means to be an advertiser and what the specific of such kind of production is. Natasha, we are glad that you agreed to an interview and we have to put our cards on the table. We find you an extremely interesting person due to the huge and worldwide experience that you have in the advertising production sphere. So let`s start:
2016
600 500
look at the figures showing what countries are the biggest money wasters in the advertising sphere:
$472 $361 $253
$224
300
$567
$486 $310
$309
$362
$311
200 100 0 Sweden
Norway
France
South Korea
TOTAL SPENDING ON ADVERTISIMENT Sweden (1,03%) France (4,43%) Canada (3,42%) Germany (7,70%) UK (7,19%)
Norway (0,75%)
Canada
3,353,219,000
Japan
Germany
Australia
2,459,592,000 14,424,280,000 12,724,129,000 11,141,400,000
South Korea (3,91%) Japan (12%)
39,111,057,000
Australia (3,58%)
USA (55,99%) 182,445,858,000
25,094,279,000 11,648,934,000 23,427,192,000
UK
USA
ABOUT CREATIVE WITH HUMOR AND COFFEE
СREATING THE COMMERCIALS
As we can admit, you have already gained considerable experience and have taken part in a variety of projects of various formats, but I am absolutely positive that you have your favorite one, so what advertisement format do you prefer the most? Well, as for me, it is not exactly about the format, but about people and creativity. Whenever I am involved in a project where I feel right from the start that it is implemented by new talented directors or that the project will definitely have sway over the industry, it is always more inspiring. Honestly speaking, this is more frequently true for a film rather than an advertisement. Natasha, do you remember the most interesting person that you were lucky to work with, for example, as a co-producer, and that really impressed you? What was significant that you gained from this experience? Yes, of course. I can say that I am really lucky in that sense. I have worked with so many amazing and inspiring people, and I gained something significant from every project. From the first short film, Daddy’s Little Girl, that I ended up being shot at Sammo Kam-Bo Hung’s house – to the sequence that I made while shooting jingle commercials for France2 in Brazil. The sequence was eventually chosen for the movie Le prophet nominated for the Oscar. Or a pitch for a beauty campaign in Brazil with Darren Aranofsky. We have already noticed that you put more focus on advertising at your job and it seems that advertising takes pride of place in your life, so the question is: what does advertising mean for you personally? Don’t get me wrong. I think that advertising can do amazing things for the world and for the community. And sometimes, I actually go crazy about some ideas I see, especially now, when we have all this new formats: VR, transmedia, digital. But mostly, this is a way to make money and still be close to inspiring people. What is the specific of doing advertising in terms of the content being produced (I mean the difference between an advertisement and a show, a film or series) and how do you usually build a team, is there any difference? When it comes to advertising, we usually have to deal with red tape and have many rounds to pass (namely budget approval, client approval, offline, online, etc.). As for the content, it is always more primitive. You are not pressed for time, and at least in my case, the money for the content was always way shorter than for advertising. In regards to the team, the passion component prevails. With a great leader pulling every string (producer, director…) the team will be tightly-welded and be able to make things happen to create a dream. This is a process of creating beauty.
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When looking at you portfolio there’s no denying that you also have a great experience of working in various cultural environments (parts of the world); could you tell us about the difference and specific that you noticed? I worked in and for France, Brazil, USA, Argentina, the Czech Republic, Germany, Spain, Italy, and others. Every place has its specificity. But, I do have a feeling that they all share some similarities, especially with regard to the teams that I worked with in different countries. The team needs some time (sometimes several days) to get used to each other and come to an announced or silent agreement: Okay, let’s make it happen. This will be difficult for sure. And sometimes we will have to work for 48 hours at a time (I did it twice, and once when being pregnant with my second baby!), but let’s make it happen. And somehow, everyone wins through. Of course, there are gruesome stories as well. And I know plenty of them. Fortunately, I have never been personally involved in either of such stories. As for me, even though I can sometimes make moan, I am always satisfied with the ultimate result. Is there any significant difference in running production business in different parts of world or countries? Can you tell us some interesting or curious (fanny) story in this regard? Well, there are some obvious issues like different types of insurance in different countries, or specific union rules. The process of airing has its specifics in different regions as well. Today, it is a very common practice for the big brands to shoot one video and adapt it for other countries. Some countries have protective laws where you must re-shoot the video in any circumstance, for instance, Venezuela. Sometimes it is a casting that makes the project more expensive, sometimes it is a location, and sometimes it is Brazil, where everything is much more expensive! How could you describe the current situation in the advertising market, for example, in terms of figures: general trends, new challenges, global leading market players, recently emerged directions/ trends, or something at your choice? I think that there is a very interesting transformation that we observe today. The brands and advertisers can easily reach the consumer 24 hours a day. This is exactly what intelligent people working in this industry mean when they say the focus should be made on storytelling and
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the content? When I was young, the cable has not been founded yet. So, basically you had those few slots to fill, and that was that! Then the cable network appeared, and then the mobile network. And today, if you don’t drag your costumer or audience in, you will lose them! They have the power to tune you out so fast. And they can look at your competitors as well. They have so many options. So it is truly the age of creative people. Advertising, social media and content merge and everyone wins. A great example is Lego. Nowadays, advertising has become some kind of art, it requires creativity and ability to generate new ideas and approaches, with every passing day it becomes a more complicated task to make an impact and impress the audience. What is the must for a good advertisement in your opinion: a format, a storyline or an idea? How the modern audience can be attracted? I really like this article. It gives answers to the above questions most accurately. When possible, please quote this in my name. I am not the author of this article; I don’t have any relations with the publisher. I just really think that Lego can perfectly serve as an example in this case. Lego actually is one of the clear examples of creative brand management. They rebuild and transform their brand brick by brick from breaking point to the world’s biggest toymaker, with a consumer centric approach at its heart. They brought the outside in, ushering the company into a new era of content, cocreation and listening. Co-creation with its fans has become an intrinsic part of the Lego marketing strategy. The benefits are obvious; the most dedicated fans often know the product better than the company itself. And in the last 10 years, the company has embraced content like no other toy brand. It has realized the value of drawing on the wealth of knowledge, enthusiasm and engagement to be found in its own fan-base to help it meet the demand for content. Could you reveal your secrets: what approaches do you apply in producing advertisements (I mean something like the 25th shoot effect)? As far as I know, the 25th shot effect is forbidden in almost all western countries. And I find this approach really stupid. If you want to trick your audience, as a filmmaker or an
…about what really matters: I have fun. I meet intelligent and talented people all the time! Ultimately, all that really matters is human connections.
advertiser, you are just lazy and are doing your job badly!
Today, we have many advertising festivals; some of them are even more largescale than some film festivals. Could you tell us what is the main purpose of these festivals and what profits does advertisement production actually bring? The main purpose of all these festivals is an award, which is supposed to big up the status and to help the agency and creative thinkers to win recognition, thus drawing more clients. However in actual practice, many such events are being held today for the purpose of the festival itself, keeping away from the clients and consumers. In other words, advertising festivals for the most part, for example, Cannes are simply an ego trip that can result in embarrassing moments like Apple Pulls Ad Agency’s Fake Refugee Boat-Spotting App That Doesn’t Actually Spot Refugee Boats. It is a shame that something like that is still allowed. These festivals have nothing to do with creativity as such, with the clients who actually approve, go on the air and have approved budgets and deadlines. That is a very hard work and it is in there. However, it tends to vanish. What is the biggest challenge you advertisements? Dealing with people who work for awards.
face
making
You have got very famous clients; can you tell us how you managed to “net” them? I can honestly say that these clients are hard-won! You’ve mentioned in your portfolio that you are also working as a freelancer. Tell us a little bit more about it, for example, what do you do in this capacity and what benefits and drawbacks does this approach to work has? I produce for agencies and production companies in Paris on job/film basis. I like to be a freelancer due to flexibility that I have, and this is perfectly congruent with my lifestyle at the present moment. Besides, it’s a new global trend when fulfilment of specific tasks in production requires only short-term involvement. I see, so there is a strong tendency for freelance in the production sphere just as in our modern life in general. Anyway, when it comes to the art of filmmaking or production, what is the key to success (I mean personal qualities)? I think that most important is to keep your mind open and
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ABOUT CREATIVE WITH HUMOR AND COFFEE
СREATING THE COMMERCIALS
believe in people. Production is about helping each other. So whether you are involved in a big or small production project, this all is always about being with the right group of people who are talented and have their finger on the pulse. How do you think, is there any social responsibility for commercial advertisement with regard to production? Most of the time I spent producing in Brazil. And I can honestly say that it is a very inclusive market (with regard to production). I wouldn’t go as far as saying that there is a direct social responsibility with regard to production, but I can affirm that this has a profoundly positive impact there. Many leading brands have recently produced mini serials, which are not an ordinary advertisement, but a continuous video content, often with a profound idea. Should we talk about being honest with the audience in this case (this brings up an issues of social responsibility once again) or, if there are millions ($) at stake, it is not so important how are you going to reach the goal after all? I think that the consumer globally is getting more intelligent and better informed. Smart brands are picking up on this trend and irrespective of whether there are millions invested or not, they are taking advantage of it instead of fighting against it, which in the end may fatten the profits, as it was, for instance, for Unilever. …about tricks and secrets: No, I have no tricks, except for coffee in large quantities and laughing, but not laughing myself into convulsions. Too much laughter might be harmful.
Today it is held that that every advertisement concept should be based on one of the following ideas: a) superiority of a human being; b) from indifference to compassion; c) from words to deeds (experience), d) tender emotion, e) fascination, f) irony, g) inspiration. What concepts can make an advertisement efficient? Are there any changes in common trends or are they still the same? At the heart of advertising always was, is, and will be one simple thing, which is the human desire. Are there any moral and ethical norms that must be followed when an advertisement is produced? As for me, everything that can harm other human beings should obviously be avoided. Unfortunately, in production just like everywhere where people are involved, there will always be those who can overstep some bounds for the sake of the ultimate result. Can you tell from your own experience, what type of advertisement is more investment attractive – an Internet or TV one? Can you compare different regions and countries which are more focused on the Internet or TV advertising? TV advertising still prevails, though digital advertising is snapping at its heels, and digital advertising will ultimately win this race. Today, the consumer has the choice when and where to get the content and how to “consume” advertisement; a new media is being formed, namely content driven advertising.
THEREFORE THERE ARE FEW GENERAL TENDENCIES IN ADVERTISING: It has become a real video content just like movies and shows.
The number and variety of means to distribute advertisements is growing with every passing day (digital, broadcasting, printed, visual, audio, audio-visual means)
An advertisement does not cheat the audience as it was earlier and tries to interactively communicate with the consumers showing interest in their needs and expectation
The number and variety of means to distribute advertisements is growing with every passing day (digital, broadcasting, printed, visual, audio, audio-visual means)
New approaches like co-branding that make an informational impact sometimes even harder already exist.
Summing up the above, it seems that modern advertisement is the most powerful instrument of running business and when prepared and implemented professionally it may be even more interesting than a film and a show. Thus, advertising production is likely to be a very profitable and rewarding niche to occupy in the short term. According to the study carried out in 2014 by a pioneer in the field of neuroeconomics Paul Zak, three out of eight people now love brands more than their spouses, because thinking of brands releases more oxytocin – the same reaction generated when being hugged. …and the final message is: let`s be aware of who we are, what we do and what we consume…
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HOW TO EARN MORE?
TENDENCIES OF FILM DISTRIBUTION
TERRITORIAL DISTINCTIVE FEATURES OF FILM DISTRIBUTION Latin America, Central and Eastern Europe, CIS countries, Asia
Markets in Western Europe, USA and Canada, Australia and New Zealand, Japan and South Korea are almost oversupplied by propositions of film and television products, their needs, volumes and operating principles are well understood and they have their own leaders. In this regard, many distributors and manufacturers of video products are looking nowadays for opportunities to increase their revenues and maintain their leading positions in television and film business. For this purpose they carry out expansion to the world markets, where there is still room for those who are unable to gain a foothold in the above territories or looking for new opportunities to increase capitalization. To this effect they use new technologies, new services, produce expensive shows and invest in successful local and regional projects. In this connection it is important to look at the regions, which are of particular growing interest among international companies. This will help to understand the prospects of regions and to suggest, what may happen to the world market of entertainment in the future. Definitely, the Asia-Pacific market is still one of the “new” territories, which is reclaimed the last few years, with a focus more
on the Asian part of the region and its huge number of people. However, no less interesting regions are Central and Eastern Europe, together with CIS countries, as well as Latin America. These territories appeared now in a field of view of the worldwide leading providers of video content, including Netflix and Amazon. Almost all the worldwide pay television channels, from Discovery to НВО, are present here, as well as a sufficient number of US film majors with their movies. All “new” territories have a number of distinctive features that distinguish them from other markets. And if you have already taken an interested look in their direction, then based on the experience of distributors and content producers you may now take the first step and transcend the basic barriers of ignorance of the specifics of these media markets. We made practical overview of these features and found out precious knowledge for you from the representatives of the following companies: “A-Company” (Germany), “SNAPTV” (Argentina), “VIP2000” (Miami, USA), “MK Media Group” (Ukraine) as well as data from “Media Partners Asia” (MPA) and “Ed Barton” (Ovum).
*The countries specified are the locations of offices of these companies, but they operate in the territories, which are interesting for us and discussed below.
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LATIN AMERICA Roxanne, how many films is TV channel ready to buy at a time, and under which terms? Regarding movies, before now we were selling packages of 30 titles and more at a time, but the situation has changed in the market of Latin America and Hispanic channels of the US, and they now want to buy only up to 5 best films, also called blockbusters, from one company . The channels individually carry out selection from catalogs and for today the priority for them are the films for Prime Time slots. Typically, television channels buy rights for 2 - 3 years, with an average of 5 displays. But the distributor can offer a few more films of the best, in addition to the selected ones, possibly at a lower price. What kind of sums are we talking about? Yes, of course. He not only can, ideally, he must do so. It’s his job. Regarding prices, the average cost of science fiction films, for example, is $ 50,000 per hour of video. The cost of the rights depends on the country, where the film was produced (each country has its own unspoken rules - someone buys the most national content and someone is ready to buy the neighbor’s products), worldwide popularity of the film, and what kind of economic situation in the country and on the channel.
Latin America is 22 countries, where 5 pan-continental freeTV channels carry a broadcast. They are the main target audience. Certainly, if you look more globally, in the context of each country, the number of customers show ten times increase. But in this case, the specificity of cooperation is only getting worse - there may appear individual requirements to the genre, style, quality, mentality begins to dictate the rules, and also there may appear certain individual specificity of human relationships and attitude to work and doing business. Always consider all of this, these can be a crucial factors in your million worth transaction. “In Latin America, the most popular genre is still a telenovela” - says Roxanne, director of “VIP2000” Company, “We produce them by ourselves in Venezuela, Mexico, Panama, Miami (United States), Peru and Puerto Rico”. This fact should be considered, as it is one of the key indicators for content producers and distributors, when you start to get acquainted with the local television channel.
What other features should be considered by the seller of the films wishing to collaborate with Latin America countries? I think it is worth mentioning that some TV channels, Mexican, for example, would prefer to buy only those films that were shown in cinemas. But in general, Latin American channels buy different movies. For example, our company has a very large library of restored old films by MGM (Metro Goldwyn Mayer) and they are very well sold. The important point - it is impossible to do business with revenue share in Latin America, it is very difficult and television channels do not like this business model. It is worth remembering that there are still some problems with piracy in this territory. But this problem is gradually being solved, especially in the last 2 years. Proof of this is the fact that Latin American audience still prefers premiere movies. Ariel Tobi, the President of SNAP TV adds: «Latin America appears as a vast territory for the distribution of rights with one language that binds the countries. Procurement Leaders among the countries are Mexico and Brazil, pan-continental pay television channels and now it is also Netflix». It is worth noting that it was the third territory, where Netflix has decided to expand its presence and in the first 5 years the company gained 9 million subscribers here.
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HOW TO EARN MORE?
TENDENCIES OF FILM DISTRIBUTION
CENTRAL AND EASTERN EUROPE AND CIS COUNTRIES If you look at the TOP movies shown in cinemas in Eastern Europe, as a rule, at the top you will see the same movies. The lists will be 70% similar. There is Hollywood everywhere at the top with movie comics and big animation projects. Approximately the same situation is in TV market and on the Internet. However, if you look more closely and based on our experience in sales, we can say that the tastes of people in different countries still differ. This is primarily due to the mentality of people, history of the country, but at the same time, indirectly, the fate of projects, especially independent, may be affected by the experience and success of distributor managing the projects. Self-confident distributor may promote an initially little-known project in such a way that after many years it will have the status of cult movie and high ratings of showing on television. This happened in Russia with our film “Knockin’ on Heaven’s Door” with Til Schweiger. Since then, no German actor could achieve such popularity in any other country in the world. Certainly, excluding his native Germany. If we talk about genres, the “The King and the Queen” - is a thriller and a comedy. 2 in 1 - is just an ideal choice, and when you have star names on the poster, such films inevitably become golden library in any territory” - says Alexey Lazarenko, head of international sales department of “A-company”. Alexey, and if we talk about genres more closely? Certainle, there are small territorial differences. For example, in recent years in Hungary and in Russia the most popular for the family audience are animation projects. In Romania and Poland - straight-line action movies are very popular. Russia and Ukraine are also not lagging behind in this genre, but in these countries there is an imperceptible change of favorite characters. Steven Seagal with a bunch of twisted arms and legs is not so in-demand as a few years ago. Thrillers with complex twists and turns of the plot are also losing their popularity on TV. Science fiction is interesting to our customers only completed with the big names. It is more and more difficult for dramatic stories to get to the audience through the selectors of channels. Well, in some countries, public broadcasters are still trying to educate, not just entertain their audience, but in pursuit of the advertisers they are gradually moving away from such program policy. Although, for example, in Russia First Channel and TNT are successfully experimenting with loud art-house projects. Unfortunately, the majority of channels in all countries prefer to show a proven comedy for another 100th time. than to show festival drama, or cinema with a capital letter. Fortunately, there are pay movie channels, which purchase almost all genres of movies, perhaps, with the exception of horror films with a rating of 18+. When choosing movies they are more focused on the quality of movies and the audience ratings on sites like IMDB. So, basically, the movie of any genre have a chance to find the way to its audience. There is another interesting fact when we talk about genre tastes of different nations. When comparing the box office revenues in Germany the most successful film of all time, “Avatar”, is far behind “Titanic”. Unlike the majority of other countries, where “Avatar” has collected more than a quarter more than “Titanic”.
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Local content distribution show different results in our territories. In Russia, Poland, Ukraine, Czech Republic and Hungary national cinema has long been on the rise. And if not in all countries, both in Russia and Poland local films can each year compete against studio blockbusters in film distribution, but on TV market channels are willing to purchase locally produced films. As a rule, under which conditions television channels purchase movies? As a package, one or two films? What determines such decisions? And how many films could be included into one package? Pay television channels typically purchase movies in large packages. There may be hundreds of movies. In this case everything is clear - it is the only kind of content in their grid. Completely different situation with free channels. Their appetite depends mainly on the volume of annual movie distribution, number of slots for movies in their grid. If the channel shows the movie only as special programming on holidays or only once a week on weekends, then it will try to conduct spot purchase of only those movies that is really needed by the channel. If the channel shows movies every day in prime time, then it is possible to discuss small package deal with it, but the program director of such channel is limited by strict criteria of prime time movie. A large number of movies with different genres could be sold easier to channels, which besides movie slots in prime time, for example, have a morning movie showing for children, daily slot for melodramas for housewives, night air for a more explicit or more old movies. Unfortunately, in recent years there is a tendency to reduce showing movies on free TV. People’s behavior is changing in terms of consumption of movies. More and more people prefer to watch movies at a time that is convenient for them, anywhere, on a device that is not necessarily should be a TV. Due to this tendency the ratings of movies decrease, as well as any other non-original content. As a result, channels reduce the amount of movies shown. There is an increase of competition between distributors and studios for the remaining slots. This situation is in channels interest - they can choose the best and dictate prices. What is the average term of purchase of the rights to show a movie by television channel? Is it purchased for a year, to show it a couple of times, or it purchased, for example, for 5 years to be able to show it multiple times? Usually, channels purchase films at the rate of 1 show per six months. In Russia, the most often case is 2 shows per 1 year. In Ukraine, Poland and the majority of other countries - 4 shows per 2 years. In some territories, the channels purchase the rights for 3 years. If the movie is well-known, with good ratings in the past, the channels are usually willing to purchase more shows. If it is a new film in which the program director is not completely sure, then he will unlikely take risk, overpay and burden himself with unnecessary content in the future. As sellers we try to sell the most popular movies with short gaps in order to maximize revenues, but in this case there is a risk of «excess showing» of movie and doing harm to the movie in future. You need to know when to stop.
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Does your company operate under the terms of revenue share (revenue sharing)? In some regions - this is a very popular way of cooperation. How to track the reliability of the reports provided by the partner? Yes, we do operate. In such a way we try to do business with those partners to whom we trust. If this is a new online platform, we will likely insist on a prepaid model. Especially if you start the new platform, the owners usually include content in their budgets. In any case, the partners are always ready to provide access to their internal databases or documents for inspection. You know, even in the days of VHS and DVD market, when copyright holders in Russia were ordering holographic stickers with 10 degrees of protection and were binding video distributors to stick them on their movies, there were still some companies that found ways to hide part of the circulation. And it seemed that this was the perfect way of supervision. It seems to me that those wild times are in the past. I hope I’m not too naive and mistaken. What producing countries have broken into the top over the past couple of years in terms of quality of content and quantity (we are talking about the movies)? I think in this regard situation is not changing. Hollywood will long remain the main supplier of movie product for our markets. French movies is historically popular in some countries, in Russia, Hungary and Poland. It is extremely difficult to sell German movies. Asian movies were always sold sporadically. Although sometimes I have a feeling that there is a trend for that Asian movies, but usually interest of channels quickly returns back to the old tendencies. National cinema plays an increasingly important role in respective countries, but in case of some small countries it volumes are objectively cannot be large. It cannot happen that every second citizen of Montenegro starts shooting a movie. Is it easier to sell movies to be shown on television and online platforms, if the movie has already been shown in cinema? And if these movies are more expensive than those that were originally aimed at showing on television? Absolutely. After all film distribution is accompanied by an advertising campaign, which not only fuels the interest of the public, but also impacts directly on the professionals, which show it, and purchasing agents of television channels. No matter which sophisticated cynics they want to appear in this regard. If it’s no joke, then yes, it inpacts both demand and prices. Especially regarding online platforms. Often they offer movies to their customers, even when the movies are still shown in cinemas, i.e., they hit the end of the advertising campaign of the distributor. This cannot but affect the number of views. Also it happens, especially with independent projects, that the distributor does a good advertising, it comes to a potential audience and awakens its interest. But in the cinema this audience decides to watch a big studio blockbuster. Independent movie is also interesting to the audience, but people go to the cinema to watch explosions and hear sound effects, and the lesser movie can be watched at home. So independent movie lose revenues, due to which a nonhit project suddenly brings a good share for a television channel at the first showing. What is the differences for you as a distributor between cooperation with TV channels and digital operators? Whom is more difficult to work with and why? If you have a good content, then there are no differences. Everyone wants your content. Certainly, everything is much
easier with iVOD operators. They need large volumes of movies, they are less picky, because they know that any content will find its viewer on the Internet. And also they do not feel such responsibility. The costs are low, nothing will happen, if there are small number of downloads of the movie. TV channel manager cannot not make mistakes. If TV channel shows wrong movie, it will be immediately reflected in the share of the channel, its advertising revenues. Have you or your producing partners fought against piracy? How did you do this? And in which countries the piracy is the most common phenomenon? Yes, but it helped little. It can be solved only with a certain will of the government, but apparently such unpopular decision is the latest in a number of others, such as increasing of retirement age. This is all about Russia, where this is a problem of horrific proportions. Although piracy is also very widespread in Vietnam. In other territories to a lesser degree, but in Hungary, Bulgaria, Romania piracy also makes great harm to right holders. And, for example, in Poland and in Czech Republic home video market is still alive and brings us significant revenues. We fought, as everyone else with the help of partner companies that clean out links to torrent trackers for a certain period of time. It is too expensive to be done for a long period of time. It is unprofitable in respect to the library. My opinion is that the only effective way is to penalize the consumer. It works in Germany. If you download a movie or a music album via torrent, you are distributing it at the same time. It is for distributing you are punished. Your IP address is tracked in the network. Law firms that specialize in this kind of activity and having contracts with producers, sent you a letter with a fine. It may be from 1500 to 4000 Euros. Serious amounts. If you do not pay, your account will be frozen, and in any case they will collect the money. Therefore, there is a small number of people who wish to use the torrent, and DVD market in Germany still brings big revenues.
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HOW TO EARN MORE?
TENDENCIES OF FILM DISTRIBUTION
ASIAN-PACIFIC REGION The report of the research firm “Asia Pacific Pay TV & Broadband Markets” contains information that the sales of subscriptions to pay-TV in 18 major markets in the Asia-Pacific region increased to 54 billion. US dollars in 2016 and is expected to grow up to 72 billion. US dollars till 2021. This suggests that the rate of increase in pay television subscribers and revenue growth will slow down compared to previous years. Growth will be weakened by “the economic downturn and the growing competition from legal and illegal alternatives”. Media Partners Asia (MPA) claims that the increase in the number of subscribers has already “decreased or slowed significantly”. In particular, in Hong Kong, Indonesia, Malaysia and Singapore, but at the same time, India and Korea remain the two largest markets with a scalable possibilities of pay-TV in the region. Now the situation in Asia is such that “pay TV providers have focused on repackaging and re-evaluation of linear and SVOD services. Local and regional platforms are also becoming increasingly important”, - said the Executive director of MPA, Vivek Couto, and added: “Sports, Children, infotainment and Hollywood movies will remain the basis of pay-TV. Although currently channels offer Hollywood TV series both among legal and illegal OTT. Up to now few pay-TV operators were able to capture and monetize large-scale online watching of videos, although the first results in Hong Kong and Korea are encouraging”. As of today, China and India make up top 11 operators of the Asia-Pacific region in terms of number of subscribers. Chinese CRTN is the undisputed global leader with 231 million subscribers. BesTV IPTV operator is the 2nd biggest Chinese operator with 22.5 million subscribers. Indian cable and satellite operators hold the following nine positions. Growth of paid satellite services in the past few years in India is an outstanding success, as a result of which the country outrun Japan in this regard. Indonesia is on a similar trajectory. During the following years Indonesia is expected to become the third largest market for digital television in the Asia-Pacific region. Due to size of the region the Asia-Pacific TV market continues to experience massive conversion from analog to digital. Everyone is trying to capitalize on the increasingly competitive environment between the broadcasting platforms. However, Ed Barton “practice leader TV” notes that linear TV in that Asia-Pacific region remains the dominant media format in terms of audience size as it was before this. Even in countries where online views are at the highest level, the percentage of viewing OTT and non-linear TV (VOD, DVR) is closing only to 20%. The difference between linear TV and viewing online platforms is even more noticeable when comparing the advertising market. And it is still unknown whether linear TV will lose its position. Considering the above situation in the Asian market we can say only one thing - this is a developing territory with s huge potential. Although, to date, these territories are still quite specific and not open to co-production with the European market, but some companies have already started rebuilding and gradually beginning to work with European countries, such as France, Italy, Russia, Ukraine, as well as Australia and the US. Certainly, if you take in mind the mentality, this cooperation will be much more difficult because of different views on the correctness and creativity of style and presentation of information, but the new things can only be born through extraordinary parturiency and after reaching a new level of human relationships.
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“There is a very solid local market in Asia in terms of content production - says Artem Zapolskyi, head of international sales department of MK Media Group, - so they have 50/50 posters share between local production and the US production”. That is, despite all the prejudices about the mentality, people in Asia view western movies? Yes, they do). In general, western TOP-films (world premieres) are popular in Asia, and certainly the most popular movies are those produced in the USA. These products are high-budget, and therefore are of high quality that attracts audience. And what about the trends and trending genres in the local production? The majority of currently produced movies are from China, India, Hong Kong, Korea, Japan, Taiwan. Asia allocates large enough budgets for their production. Now they are increasingly inviting Hollywood stars (2nd tier) to play in their films, thus improving their ranking. As for the genre, in Hong Kong much attention is given to martial arts, confrontation between heroes and bandits, mainly action. In Japan, various horror movies are still at the peak, including all sorts of Godzilla-like characters. Korea is known for its high-quality dramas, and that is what they shoot most of all. Also, there are a lot of large-scale historical films in Asia about the history of individual countries, their heroes, myths and legends. How much could Asian television channel pay for a movie? It depends on a movie, quality, advertising campaign and the producing country. But the amount may vary between 3-11 thousand US dollars. Do Asians have some oddity-demand to the content from other countries? Currently everything shot in 4K is popular in Japan and Korea, «BOOM», so you can often find the following request - «seeking in 4K». If you take a look at the markets in three regions, the common thing for all of them is that they still have a big margin for growth. In particular, they can increase the number of subscribers and to raise a size of monthly fee for subscription in order to increase their revenues. The US is paying much attention to Latin America market due to geographic proximity; Asia-Pacific region is the market for companies from many different countries, including the richest countries of that region, which reinvest their revenues in the neighboring countries; Central and Eastern Europe and the CIS countries is the region of great interest among the companies from many parts of the world, because through these markets you can reach to the second-largest television and movie market in the world - the European Union, which also has a high paying capacity. It is obvious that in terms of population and the financial turnover in the industry countries of Latin America and Central and Eastern Europe + CIS are significantly less attractive than the Asia-Pacific region as of today. At the same time cultural and geographical proximity to Western countries opens up new possibilities for cooperation and co-production between the three regions. This cooperation for Asian companies could serve as a bridge to their further entry into the markets of Western Europe and North America.
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Why do you need three people to translate a script into a foreign language? In an era of visa-free regimes, when tens of thousands of international airline tickets are sold every day; of the omnipresence of such organizations as the EU, the UN, and the CIS, one might wonder «What barriers can there possibly still be among nations?» However, when it comes to true mutual understanding between cultures, the very moment the cultures meet, the first barrier immediately pops up. No matter how long you study a foreign language, unlike an app, you cannot load a foreign logic and mentality into your brain.
Although sometimes it would be oh-so-useful. This may not be so much of a problem if it’s just about friendship, or perhaps even in jointly managing a business – you can learn enough, or develop an algorithm of communication to reach sufficient understanding between the partners. Higher levels of difficulty arise, however, when you are a video content producer and you want to sell your products on an international scale. You can have a brilliant script; live, individual characters with unique behavioral features and complex emotions; the plot may contain very subtle psychological aspects that reveal a deep inner drama in each character, covering all aspects of their relationships; you may have sprinkled it with wit and humor and much more. But in the absence of a professional translation of the script, and a competent adaptation of it, your work of genius turns into a pile of strange and vaguely comprehensible text. A potential foreign partner, having struggled to read it, will decide that you are simply not professional. And this of course will mean no successful completion of your venture. Indeed, despite all the seemingly boundless possibilities of our modern time, there are still only a small number of translation studios to which you can entrust your project. We’ve searched out one of the best, and interviewed the owner. William Hackett-Jones was born in the county of Suffolk, in the United Kingdom. He came to Russia more than 15 years ago, where he has successfully built a company, which is now busy with helping the film industry to be understood beyond its national boundaries. William, one of your main directions is translation of scripts for the film industry - what are the main challenges and how do you deal with them? There are four primary difficulties in translating scripts. The first is seeing things. As a translator of a script, you have the extremely difficult task of diving into the author’s head and
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trying to see, from his words alone, the film that he intends to create. Bear in mind, that the translator is a native speaker of the language she’s translating into – so not only does she have to see a film in her mind just from a script; she has to do it by understanding a foreign language, too. The second is hearing voices. Films are character-based. The author of a script has worked hard to give each character a clear personality, which is hinted at in the words they use when they speak, in the accent they have, the swear words they use, in the words with which they love. Somehow, the translator has to understand this, grasp its nuances, and translate that into her own language’s equivalent. The third is cost – a script is not yet an approved, full-budget film project. You have to do as good a job on it as possible, naturally, but the client may well be translating it with their own savings. They often can’t afford the full cost of an excellent script translation. So as a company, we have to work out how we can be flexible with the cost. Don’t forget that every translation we do goes through three professionals – a translator, an editor, and a proofreader. If it’s for translation into English, they’re all native speakers of English. That makes it expensive. But we can usually work out some sort of solution, given enough time. And finally, finding a balance between sticking close to the original text, and modifying the translation for its new language (‘localising’ if you will), is one of the greatest difficulties. Many traditionalists will say that the translation should be an exact replica of the original. But film buyers, film festival judges, and cinema audiences are not professional translators; they’re people out looking for a good story. You have to cater for what they need, and modify the script accordingly. For example, are different or the same teams working with cartoons and series for an adult audience? How do you form a team for the projects? Yes, mostly they are different people, though not always. As with any area of specialisation, someone strong in one area
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THE ADAPTATION OF MENTALITY
HOW TO TRANSLATE A SCRIPT
may not be so strong in another area, although to the lay person the areas look similar. Try asking a heart surgeon about brain tumours. He’ll be able to answer some of your questions, and give you a general idea, but he will without a doubt tell you that he is just speculating, and that you should speak to his colleague who is a professional in that sphere. What translated projects are you proud of? Why? Oh, lots! For example, we’re very proud of the work we did for Andrey Zvyagintsev’s Leviathan. Of course, we’re happy that it won Golden Globes, that it was Oscar-nominated. And we’re even proud of the end result. So many of the subtitles on that film can be held up as ideal examples of how subtitles should be done. Short, to the point, containing the characters’ individual voices, and allowing the viewers to actually watch the film, and not sit and read subtitles for two hours. We did some amazing work on the animated film Kikoriki. Team Invincible, for example. Because the brand is so unknown outside of Russia, we had to do quite a lot of script adaptation, to give international viewers more context, and to make the characters make sense in their own right. We also found that a lot of the jokes were untranslatable, so we had to write them anew. The result was a funny, engaging, internationally attractive film. Personally I’m very proud of the work we did on Bondarchuk’s Stalingrad, and for similar reasons, of our involvement in Panfilov’s 28, also a war film. Both of them are about WW2, and as such contain lots of Russia-specific themes, tonnes of slang and jargon which isn’t in use today, very specific character voices, and so on. That we were able to produce clean, meaningful, readable subtitles, while shells are firing, and people are screaming on screen, means an awful lot to me. War films are very challenging. When translating a script from Russian into English - to which country will the language constructions be closer: the United Kingdom, the United States or will it be closer to any European country? That depends on which country you do the translation for! Much of our film translation work is done not for the end users (cinema-goers), but for co-producers, prospective business partners, international film buyers, and film festival juries. As such, we like to find out as much detail about a project that we can, so that we can produce a translation which will help it achieve its goals. If a script is going to Cannes, we’ll likely use a simpler version of English. If it’s going to Sundance, we’ll use US English, with the relevant slang. It’s all a question of trying to help our clients to succeed. From which countries are the translators you work with? How do you advance their skills? What kind of recruitment system are you using? For translation into English, we work with translators, editors, and proofreaders from all over the English-speaking world. In-house we certainly have a bias towards British English speakers – that’s perhaps because I’m a Brit, but it may also be to do with the relative geographical closeness. It’s a lot easier to move to St Petersburg if it’s just a 3-hour flight from home, than a 10-hour flight, with one or two changes, and so on. We strive to give each member of the translation team feedback, so that they can see what the editor or proofreader changed in their original translation. Our Project Managers are key in that process, and they do a wonderful job of encouraging
a freelancer with feedback. We have our own testing system for people that want to work with us; it’s very difficult to pass our tests – not many people ever have. But they’re designed that way, so that we can see what areas people specialise in, and where they will need help. What was your most complex order at the ratio «due date/ volume» - was it? )) Well there’s the time when I had just 3 working days to find, sign up, arrange visas, and fly in 6 interpreters from Japan, the UK, and Germany for a huge international conference. We’d just started the company then, and we didn’t have any such people on our database, so it was pretty hairy. They were interpreting for former Prime Ministers and Chancellors. But we pulled it off. Then there was the Message to Man International Film Festival. They’ve got things under control now, but one year, not so long ago, it was chaos, and involved lots of drop-everythingeveryone-and-get-subtitling!, not to mention sleeping in the office. Exhausting, but exciting. Fortunately, most of our clients now know that if they want to get the best work from us, they need to plan ahead, and give us the work in good time. What do your customers, which request to translate the script, fear most of all? Paying the bill! But seriously, most are concerned about getting the full meaning across. Have the fruits of months, sometimes years, of writing by the script’s author, been fully translated? What have we lost in translation? Will the film do as well as it possibly can internationally? Were there precedents, when the customer told you that you disturbed his concept and he wanted to send another message by his work? How did you solve this issue? That has never happened at the end of a project, to the whole thing. Sometimes our most attentive clients will find things in the script that they want to question – why did we decide to do this or that? We discuss these concerns with them, of course, and if we’ve got it wrong, which happens sometimes, we go and fix it. Sometimes we’ve had to modify something for cultural reasons, and then we will insist on our change, or look for a similar solution. It’s never a question of ‘Disaster! Arrrggh!’ – we’ve done this enough now to know what is expected of us. What is the mission of your company? To surprise and delight. Our purpose as a company is to improve Russia’s international image, through translation. We like to think that by working on film, we’re doing exactly that. Are there any incredible strategic plans for the next couple of years? We like evolution, not revolution, so I wouldn’t say we’ve got any unbelievable plans. We are growing steadily; we will continue to do that. We are developing our film activity – it used to be called our Film Department, now it’s the Audio-Visual Department, because we’re involved in so much other than just films. Animations, dubbing & voiceover, apps, computer games – that all comes under the AV umbrella, headed up by the amazing and tireless Valya Kozyreva. Our clients are very good to us – they keep recommending us to people we don’t know, so we have a steady flow of new work and new clients coming in, which throws up new and interesting challenges all the time.
#7 / November-December 2016
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NEW AGE IN MEDIA
BUSINESS ETHICS AND CORPORATE CULTURE
The Book of Testaments of Moses for to build Corporate Policy ….to make more bearable a sense of uncertainty, which begets our life nowadays…
Probably, media business, and entertainment industry as a whole, is one of the most stressful habitats of modern white collar. Creative teams often require an intermediary, which will help not only to clear thickened clouds in the team, but also to point out the right path for those who are lost in the dense forest of corporate ethics and culture. Such intervention could easily be psychologists who are in high demand in the media as experts, consultants, which contribute not only to development of inside-story drama in reality show, but also to establishment of productive relationships within the creative team. How to establish a constructive dialogue and make the right decisions for the business as a whole? What is the business ethics and corporate culture and how important it is for the media business? How to avoid emotional burnout and find a strength to continue working despite the tension of working emotions, interact and react, make decisions, as well as to give a correct assessment of own potency: all of this and more we tried to find out in a coffee conversation with media psychologist Alevtina Shevchenko Hello, Alevtina, we are terribly worried as the experience of touching upon the psychological aspect of media business is absolutely new to us. If our sources are not mistaken, you have seen many various creative teams filming a variety of television formats. We would be extremely grateful if you could share your experience of working in efficient-creative team with our readers? Probably, it is necessary to begin with the specifics of work and is it up-to-date? In fact, there are a dime a dozen psychologists around and all of them look like skilled. Why, a media psychologist after all, what is the difference and the specifics of work, and why we cannot simply come to any psychologist, for example? In fact, the differences between ordinary and media psychologist are significant. Let’s start with the fact that quite often consulting psychologists are invited to determine the motivation of potential participants or participants already involved in the reality. The most distinguishing point of work and task of the psychologist consulting on the reality not to calm down the internal storms and fires of a client (as in classic psychoanalysis), but on the contrary: to create conditions and contribute to the desired intensity of emotions on a project. Reality is always a drama, it is a conflict. There is a certain dramatic storyline, and it should be revealed as much as possible. Thus, the role of
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psychologist on a show is often in helping the participants to understand what is going on inside them, what they have to do with all this, and perhaps push them to greater external action. You are saying that everything is real on reality show and there are true human passions? Absolutely right, because what’s the point to involve real people from a real life on the show? As soon as they start playing according to pre-written scenario, reality turns into a low-grade film with a bad play and not the best actors. One thing is playing in a movie, and the absolutely different thing is to live own life and show personal emotions on a camera. This is a completely different concepts. ... and your role in all this ..? ... sometimes to act as a catalyst of feelings and emotions of participants ... It is more or less clear how things are going when working on the reality. Tell us a little more about the right way to find a common language within creative teams? It seems that it is always difficult. Creative people themselves are very complex, and in media production they have to deal with rationality. Often, creativity and rationality are connected paradoxically in the media business. Media business is a creative process that constantly requires balanced, often cold, distant from poetry solutions, and it is extremely difficult to connect these two polarities in a rush towards a common goal. «There is no life» in a place where the interests and perspectives of creativity and pure pragmatism are clashing, and, therefore, such a motley team requires especially delicate management approach. What about those who are on different poles in this process and what should be considered as the most important when searching for a single rational truth, which ultimately would suit everyone? My way on the reality began in 2010 with a big name project called «About Love», those days it has not received particular response from the public, but over time the studio, which was engaged in filming the show, has found its place under the sun along with Katya Osadchaya and her wonderful hats liked by many people all over the country. I can say that the work in the TV environment is explicitly and very exhausting, and a psychologist who comes to the show, needs to clearly understand
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his task and purpose within the project. Mostly working with creative people I confirm: they are really very choosy in almost everything. And it’s not their whims, all such peculiarities are really caused by subtlety of mental constitution of such people. They, like no one else, need special conditions and they are practically, as with all rare species, «do not breed in captivity.» They need absolute freedom of self-expression, otherwise they would not be able to produce ideas. If people with a predominant rationality in the nature and structure of the individual deal quite comfortable with the daily routine and limitations, for the creative people these factors may sometimes seem like a real threat to the entire existence. And it often happens that this is not a whim - these brilliant ideas are born in a space of freedom. Freedom from stereotypes and principles, freedom in wear and self-expression, search and selection, sometimes even freedom from morality. In the world of creative people familiar laws of rational and balanced decisions do not always work, and earthly laws of physics lose their power and authority. The most important law: the law of inspiration, and the muses do not know how to live in a cage of social stereotypes and rationalism. Just like the chickens, which need a certain temperature to lay eggs, the creators require a favorable environment for selfrealization. Sometimes the most simple and minor criticism by colleagues can cause a storm of sincere indignation and block the pure flow of consciousness, where brilliant ideas come from. This attitude towards themselves and surrounding world is inherent for the entire «Y» generation, so the manager of the 21st century is a tightrope walker under the dome of circus at a height of 12 meters. And the person must talented to perform the necessary tricks plastically, beautifully and timely. And yet, at what stage it is time to think about inviting a psychologist in the team? Well, probably, when there is a certain task or a problem to be solved. Everything is not so simple. Media production, in its essence, is a constant conveyor of problems and issues that arise now and will always be at every stage: starting from concept and ending with post-production. Some tasks end, others - begin. And the conflicts basically as well. For all these reasons there is a logical question: how to deal with conflict situations, or, maybe, to learn to settle them properly? And why? You are just like a good parent who would like his children to live in peace and harmony. Peaceful environment is not always the most productive. Passionarity moves the world, it climbs on the peaks and conquers the cities. Conflict is not always bad, since it is an impetus to search for the truth. Live competitive environment stimulates both personal and professional growth, so some leaders deliberately cultivate conflicts in groups and it becomes an unspoken part of corporate culture. First of all it is a form of control: divide and rule. In fact, such techniques exhaust all the participants, but at the same time they make it possible to keep everything under control and find constructive solutions. In fact, even internal conflicts are necessary for the person to pass the personal crisis or stagnation. Conflict is a certain part of growing up. Growth is possible only in opposition to oneself, circumstances or environment. Yes, it’s exhausting, yes - it requires to make every effort: mental, moral and even physical. Initially, such a state requires considerable effort and energy, but with time, honing skills of resistance becomes unconscious
reflex and develops into a force that will no longer require a considerable efforts and become no more than an automatic reflex. Another issue is that any conflict should be controlled. There must be some sort of independent arbitrator moderating a constructive search for the truth. Otherwise, the victory will be on the side of someone more confident, or the one who by nature is able to manipulate concepts. And yet, if the manager
likes to benefit from conflict in its constructive meaning, there the specific technologies should be introduced in the management system at the relevant level. For example, you may use practices of brainstorming and other game techniques. Here we see not the wild west, where every person stands for oneself and the rightness depends on how fast the bullet is, but here everybody is involved in the process, and the most important the supreme Gods of management acting as moderators: «Let’s play war» - they say, - «… give your ideas, arguments «for» and «against». This can be described as a certain controlled game conflict that helps to collectively find a grain of truth and avoid going into personalities. In fact, in all the large and successful corporations, there is a culture of game techniques and encouragement. Whichever management style you choose, the working environment should always be comfortable for the staff, which should not have even minor intents to find cushy and comfortable job. Free meals, gyms, entertainment rooms and other bonuses are not due to the kindness of heart, it’s a policy to attract and retain staff. Alevtina, how do you think, whether there are some age differences in a team and whether there is a significant difference between generations, how does it reflect on the approach to work, and also what do you think about the argument that age gives some advantages? The age actually is absolutely no argument. Look around you: we are living in the time of «start-ups» that require constant research and flow of new ideas, as well as totally new approaches to their implementation. Old experience cannot help in this situation. Experience is no more an argument, because modern business is no longer willing to walk along paths well-trodden by someone else. Our time in a greater degree requires high level of individual creativity, ability to react to unusual situations when searching for effective solutions. But as to the differences between the generations - you cannot hide from it - a new «Y» generation is really significantly different in approach and look at things in almost everything, and this cannot but influence the work. For example, if people of «X» generation feel themselves due to all and everybody, because of
#7 / November-December 2016
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NEW AGE IN MEDIA
BUSINESS ETHICS AND CORPORATE CULTURE
education (we lived in a very difficult time and our existence had to be justified, so we’re still trying to justify the expediency of our existence). The new generation is educated in a way that «everybody owns them». Thus, while «X» generation often suffers from an inferiority complex, «Y» generation confidently and insistently calls for a completely objective and natural attention as to individuals, which they are under the birthright. Naturally, those who place own advantages on the top always behave themselves more confident, whether they are right or not. Such differences in perception may well be a source of misunderstanding in the team. People of «X» generation often behave in a «Socratic» way: «... I know that I know nothing», while «Y» generation behave in a «Tamerlane» and «Macedonian» way, which are self-righteous in a shimmering aim in front of them. But it in no way means that any generation is more or less efficient at work. This is absolutely no indication and the problem of conflict of generations is probably not in age, but in the values inherent in their cultural heritage. Tell me, in your opinion, should the company inculcate moral values to its employees? We are not talking about morality here, I would say: corporate values. Corporate values are formed as a common format of relations in the team, as well as with partners and customers. For example, the company sees its core value as making profit in any way, which is a prerequisite to a certain behavior. But making excess profits is realistic when not raising them to the rank of deities. They will quite logically be gained as a result of genuine fidelity and commitment to manufacturing process. When a product that is made by the company is its video content the main thing that the final consumer gets is an emotion. Giving emotions and impressions can become a creative philosophy of the company, and according to this - the basis of team values on which a team behavior in general will be formed over time. In fact, the output largely depends on the mood and the atmosphere that exists in the team. Mood or emotion prevailing in the behavior will be reflected in the product. In general, if you plan to film something in a Tarantino style, the desire to kill everybody is quite a suitable emotion for a tired and embittered team, but to act in a Tarantino way you need a talent too. In its turn, the chances of creating something more life-affirming and at the same time bright, when the team suffers from squabbling and chronic fatigue, will be equal to almost zero. Let’s suppose that the product should still be created, but would it emotionally correspond to the idea set at first?
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That is why it is very important to cultivate not only a value milestones in the creative teams, but also a good mood, good relationships, and just enjoy life in general. Comfortable living environment promotes the survival and grow of species population in general. And yet, with regard to purely relations within the team, should there be any individual moral coordinating values? Well, for sure! Let’s start with the fact that we all, as a result of public and family modeling, are the finished product with a set of certain moral qualities. With regard to the collective morality, all of this is regulated under the corporate ethics and culture, which is nothing more than a certain code of conduct. Where that code of conduct should be taken from: Book of Testaments of Moses? Perhaps the creation of such a set of value milestones is one of the main tasks of really effective management. So yes, you need to sit down and define them. Only values form the thing that will later become individual and the way we look at this world. For example, our filming team has to knock on the doors of houses and apartments of motley marginal persons, to whom I would not give hand in a real life. But there is a purpose, and it requires
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execution of not always pleasant tasks - it’s just a material and we have no right to demonstrate personal response. Please tell me at what stage it’s time to begin formation of corporate values and how to do that? Formation of corporate values begins when you have the first employed person. In the process of growth and development of the company they will certainly be modified and supplemented. Resistance to innovations is quite a natural phenomenon for a team as a whole and an individual in particular. Especially resistance to those innovations that bid to individual and personal system of rules and values that corrects usual and native behavior model. Predisposition to complying with rules and supporting social rules, as everything else in our lives, is just a matter of habit. In its turn, rejection of some habits and switching to another system of rules and standards almost always bears a nuance of emotional discomfort. Nevertheless, the need to adapt in the team requires us to accept the corporate culture as a law. We either accept the rules of the game and assimilate within it, or refuse to play it, after a painful period of resistance, which brings discomfort both for ourselves and
people around us. Lack of skills to respond to change and adapt to new conditions and circumstances is nothing but rigidity and rather deviation than standard. Professional, whether he is endowed with a creative or rational principle, must have social flexibility to be able to enter the system of shared values and, respectively speaking, to live in it. Alevtina, but if there is an arbitrator as a manager, maybe this system of shared values is not so needed in fact? Why isn’t needed? Authorities set and coordinate the rules and also takes full responsibility. But decisions have to be made by the team: together and individually, and this process needs a system of values. What is a guiding mark what you use when making decisions in your life, whether it’s your moral values? A simple example: Will you visit your mom’s anniversary meeting N-kilometers away from you, when there is a deadline period at your work? In this case your fundamental value helps to make a decision: if it’s a family - you go, if work - you don’t go. In fact, when making decisions the hardest part is responsibility for the consequences of such decisions. It just so happened that this is always a risk. In this case we come to the concept of calculated risk. This is rather about business, than about people. Very often some people risk, and the other people bear responsibility and pay for all. It seems to me that the business becomes really mature and self-sufficient, when it understands that losses are inevitable and it wills to take risks for the sake of really outstanding result. Regarding how to do it. It is always the technology. The main thing is to have a purpose. So you’re saying that in order to accomplish a breakthrough in something you need to take risks until you will be rewarded? Not exactly. In this case, as in poker, you can lose everything when risking each time and hoping only for a luck. The main thing is to have not the same cards on your hands. I mean that very often the company may not have enough of fresh perspective, so to speak: the new blood. Very often the newcomers make breakthroughs forcing the company to look at itself in a different way and to see in a new way... It’s a little bit clear with team relationships. But you also work as a psychoanalyst, if we are not mistaken. What problems of media business customers are you usually solving? Usually with asthenia and exhausting. It happens that the producers, directors and journalists cannot give any help to participants of a talk show. Also, for example, when there were high expectations, and they were not realized. Actually, disappointment, especially in themselves, not realizing expectations and hopes - these are the problems with which most often people come to any psychologist. ... and are you giving them a new hope ...? ... no, hope is an illusion. I give them the opportunity to get used to the reality.... Alevtina, thank you very much for such a in-depth conversation. We still hope that soon it won’t be necessary for us to get used to the reality, and all of our conflicts, if any, will only be constructive and functional. And though the prose of life requires to seek oblivion in illusions, let it become the creative resource for us to create a more beautiful and harmonious reality.
#7 / November-December 2016
52
NEW CONTENT
UNFORTUITY AND TERRABYTE
UNFORTUITY world premiere 13x26 min, 2017 Format: docudrama Audience: 16+ years old Producer: MK MEDIA GROUP
“UnFortuity” shows what destiny is capable of! Take a look at your life at a completely different angle. The first episode of “UnFortuity” docudrama narrates how a cup casually forgotten in 1928 led to 23% mortality decrease of British residents in 1944. These are the documentary series that tell about the most significant discoveries, inventions and events in the history of mankind, which occurred due to the fateful accidents. The visual composition of each episode includes dynamic scene-setting, historical reconstructions of events, rare archival footages and graphics. “UnFortuity” reveals the intriguing stories based on real facts and historical documents. We draw a thin line through the great random events of our ancestors, which have affected the life of humanity. We come to the conclusion that a lot of discoveries and important events have occurred by chance.