Colonial Fleets - Variety article - "Giants in sci fi muscle tussle"

Hey everyone -

I found an interesting article concerning USA's "The 4400" and a network struggle over it. Here it is:

Quote:

New conglom NBC Universal's negotiating muscle is already being put to the test, as its USA Network attempts to land a second season of hot series "The 4400."
After tallying record ratings, ordering another round of the Paramount-produced sci-fi skein is a no-brainer. But at a time when Showtime, HBO, and FX are renewing their rookie series as early as the premiere, things are creeping along at NBC U.

The reason: The Peacock wants the right to put repeats of "The 4400" on any of its networks -- including mothership NBC. And it doesn't want to pay a lot extra for that privilege, arguing cable shows like "The 4400" can only benefit from added exposure on a broadcast net.

But Viacom-owned Par apparently is scoffing, demanding NBC cough up more than the nominal fee it's offering for so-called repurposing rights.

Par's new management -- read: CBS Chairman and CEO Leslie Moonves -- doesn't want NBC to be able to cheaply use a show like "The 4400" to fill gaps in the Peacock's primetime sked.

And there's no debate over how big a hit "The 4400" is.

Mini premiered to 7.4 million viewers -- the biggest bow for an original drama on basic cable -- and averaged nearly 6 million per episode over its five-seg run.

NBC suits no doubt think one reason "The 4400" did so well is the extensive marketing the conglom executed on behalf of the show. Ads for the project aired extensively on NBC U's channels, including the Peacock proper.

It's all part of NBC U's strategic goal of making all of its channels -- from USA to Bravo to MSNBC -- work together as one giant Peacock. (See Jeff Gaspin's lengthy title: president of NBC Universal Cable Entertainment & Cross-network Strategy).

And it seems NBC U has been throwing its newfound weight around on behalf of that goal -- much to the consternation of those who find themselves in a negotiating position with the company.

Producers accustomed to settling for cable-level license fees at Bravo, for instance, have found their contracts hit with an addendum in which NBC reserves the option to repurpose a program across any of its platforms.

That means a show ordered for air on Bravo may also get repeat airings on Sci Fi Channel, USA, Trio or the NBC.

One industry insider said the "multiplatform deals" have proven to be a great boon for both shows and their secondary platform, as evidenced by the big numbers "Queer Eye For the Straight Guy""Queer Eye For The Straight Guy" pulled in on both NBC and Bravo.

"NBC is not out to cannibalize anything. It would just like the ability to do that for a show going forward on all our properties," the insider says.

Not all agree. Others are arguing that runs on a broadcast network should yield much higher paydays for producers. Others say that the exposure on the major webs is payment in and of itself.

TWI prexy Bob Horowitz, who is producing the Bravo skein "Manhunt: The Search for America's Most Gorgeous Male Model," says there is a fine line between "where the promotion ends and the exploitation begins."

He says that producers of new series on cable should welcome the added promotion -- up to a point.

"You want a broadcast network to make your cable show a big hit," he says. "So I think a producer should be on board the first time around."

But what starts out as cross-promotion during a show's early days can mean the producers sacrifice network-sizzed payday if a skein becomes a hit.

"Going forward (on additional cycles) is when producers should negotiate (additional compensation) that anticipates the intentions of the network," Horowitz argues.

Other factors are complicating negotiations on "The 4400."

Producers didn't have options to hold talent on the mini for more than the planned six hours of "The 4400," and as a result, all involved have demanded raises -- pushing production costs north of $1.5 million per seg.

And since Viacom Prods.' original deal was negotiated with USA before it was aligned with NBC, the merger has put Par in a tough spot.

"The show was envisioned to play on USA alone and that was the spirit of the original agreement," one source says. For a network to come in and insist on more plays for its other channels "is unheard of," this insider insists. "The philosophy that they have the right to do that is quite new."

There could be one more wrinkle ahead.

If a deal can't be reached between Par and NBC U, USA has the right to shop the show to its own NBC U TV Studios. Recent examples offer new evidence in favor of repeating shows that are still on the air.

Most recently, the Warner Bros.-produced WB comedy "Blue Collar TV" has grabbed healthy auds in its secondary Comedy CentralComedy Central showings, which have raked in north of 2 million viewers per episode.

Repurposing has also worked the other way with cable shows re-airing on the major nets. NBC's programming of Bravo reality show "Queer Eye For the Straight Guy" boosted both series and Peacock ratings.

And ABC, which originally developed but passed on the detective drama "Monk" found modest success Saturday nights when it reran first season episodes of the drama. By all accounts, a fresh batch of 13 episodes of "The 4400" will commence production in February in time for a summer launch.

"This point isn't a dealbreaker," an insider says. "No matter who is producing, it'll get done."

Very interesting.......eh? When it's successful - everyone fights over it. You just never know what's gonna be the next big hit!

Best to all,
Bryan