Biz of show second fiddle to market woes: Marking the end of floor stands. (NATPE Report).

NATPE 2002 started as a TV market divided in two (one at the convention center, the other at the Venetian Hotel) and ended with the possibility of being divided into five or, at best, into three next year with a remote chance that the market will be scrapped all together.

Another definite maybe: domestic divisions of the major U.S. TV companies may not be back for NATPE 2003. Meanwhile, the international arms of the large TV companies will only exhibit in a hotel suite environment (with or without NATPE's blessing).

This is the simple overview. For a more convoluted account of the 39th annual event, NATPE officials reiterated their commitment to the New Orleans venue for January 20-23, 2003. But that is not yet set in stone. While the association has definitely reserved the convention space, it has only optioned hotel rooms. The apparent reason: the cancellation fee for the convention center is relatively low, but pulling out of hotel room commitments is very costly. NATPE makes a 10 percent commission on the rooms it contracts, but it's obligated to pay for those not filled.

The New Orleans location in itself opens up a can of worms. Since the larger companies will most likely set up camp at their favorite, yet tiny, Windsor Court hotel, there would not be room for smaller distributors, who may settle for the Hilton, leaving a few exhibitors (e.g. new media, production and service companies) at the convention center adjacent to the Hilton. At this stage, NATPE has not yet given up on the very profitable concept of convention stands, which bring in floor space fees and various service commissions.

Complicating this scenario, the U.S. domestic syndicators are planning to set up two better timed markets: one in Los Angeles in the Fall or early winter for clearance (station sales), and the other in New York in March for the pre-up-front (ad sales).

Any U.S. domestic attendees at the New Orleans NATPE will just be riding the coat-tails of their international counterparts (a role reversal). And even then, they will most likely only bring a few cable sales executives (there is still some "domestic cable action" at NATPE) and production people, who hope to get commitments from foreign companies to gap deficits in order to green light first-run syndication series. It has been pointed out, for example, that a strip show like King World's Dr. Phil costs $40 million to produce and market.

Then there is the Latin American factor. Because NATPE has now become an international TV market with Latin TV companies as the key attraction, these companies want NATPE to be held in Miami, Florida, where most of them have offices and good number of Latin TV executives maintain residences.

An additional upside is that many European TV executives can benefit from direct and shorter flights to Miami (Las Vegas took them some 20 hours) and for Asian TV buyers the difference in flying time to New Orleans or to Miami is insignificant. As far as Miami hotel facilities, they are now considered on a par with those in New Orleans.

However, it was made clear that Latin American TV companies will have to follow in the footsteps of larger U.S. TV distributors. Currently some studios do not seem to have a preference between New Orleans and Miami, provided the hotel suite set-up is maintained.

In order to find a solution to this convoluted state of affairs, NATPE has formed a task force whose recommendations will be submitted this March. Unfortunately, the key aspect of the NATPE market -- the international element -- is not represented at all in the task force. In addition, out of the 19 NATPE board and executive committee members, only four (21 percent) represent international television.

The official justification for this seemingly nonsensical aspect of the NATPE organizational structure' is that it is a not-for-profit association that, by statute (the by-laws were last modified four years ago), has to represent every aspect of the television sector: domestic and international distribution, advertising, stations, networks, cable, talent agencies, new media and the production community; plus much touted but little appreciated educational activity.

RELATED ARTICLE: DIVIDE AND CONQUER

Warner Bros. Domestic Television president Dick Robertson outlined a plan that will result in a new syndication upfront presentation for advertisers in New York this March and a Los Angeles-based syndication screening event for local U.S. TV stations in the Fall, organized by the syndicators themselves through their trade association, the Syndicated Network Television Association (the SNTA web site is being set up). The Los Angeles event may be held at the Beverly Hilton or at the Century Plaza Hotel. It is not "really necessary that NATPE be involved" said Robertson.

Reportedly, Janice Marinelli, president of Disney's Buena Vista is said to be in agreement with Robertson, as well as Carsey-Werner domestic TV president Bob Raleigh.

LONG LIVE THE HOTEL SUITES

Facts and figures of the recently concluded NATPE show that 49 different companies set up offices at the Venetian hotel, one (Columbia TriStar TV International) went to the Bellagio and one was at the Mirage (National Geographic). The Las Vegas Convention Center (LVCC) boasted 530 exhibitors, with 280 being in the program distribution business.

Life at the Venetian was difficult but not impossible. The long wait for the elevators (especially one elevator bank that went to the studios' suites) was comparable to the time spent going from one point to another at the LVCC.

On the financial end, some of the studios reported savings in the range of $1 million-plus, while smaller companies said that the cost was 80 percent less than that of the convention floor arrangement. One company, Aviva, estimated an additional cost of $35,000 to be on the floor. According to Hearst's Tom Devlin, "it's too expensive to be on the convention floor. For the moment the hotel is a better idea." For LedaFilms' Pedro Leda the hotel suite arrangement at the Venetian was "fantastic", allowing for more "quality time" with buyers.

MIAMI ANYONE?

A small but influential group of Latin American television companies met behind closed doors in Las Vegas to discuss NATPE 2003 in Miami. The companies were: Televisa, TV Azteca, Coral, TV Globo and Venevision.

The rationale given for the meeting was that since NATPE is now an international market with a particular focus on the Latin American TV contingent, Miami may be a better location than New Orleans. However, since their main activity at NATPE is represented by the European and Asian TV businesses, they will not insist on Miami if the studios decide to keep New Orleans as NATPE's 2003 venue.

FEW STARS, PARTIES, GLITZ 

Sorely missed at this NATPE were parties and celebrities. The only party to write home about was King World's at the Palm Casino Resort. Other receptions included Disney Latin America's and E! Entertainment's at the Venetian and Cable Ready's get together at Dude and Betty's Beach House.

Thirty executives attended the traditional Latin American TV breakfast organized by VideoAge at the Venetian.

Among the celebrities in attendance, only a dozen were spotted, including the host of the new King World show Dr. Phil.