Mergers Hurt NATPE
Vast consolidation of TV conglomerates changes face of syndication show
By Rachelle Crum -- Tradeshow Week, 2/7/2005
Las Vegas—Along with allowing Conan O'Brien to jokingly show clip after clip of USA Network's "Walker, Texas Ranger" during his NBC Late Night show, last year's television industry consolidation deals have affected other communication mediums — including tradeshows.
The mergers of several media giants in 2004 greatly affected their exhibits at NATPE 2005, where the massive conglomerates flexed their muscles and showed off their re-branding efforts.
"For the first time in years, we're all under one roof," celebrated John Weiser, NATPE co-chairman, referring to the show's new location at Mandalay Bay Convention Center and THEhotel.
The show has grown in some respects over last year's, which had a smaller number of exhibitors on the showfloor and in suites, but a larger showfloor. However, without the widespread consolidation among both buyers (namely cable companies and network affiliates) and sellers (major studios and small production companies), NATPE would be one of the largest shows in the country.
"If we still had every exhibitor that's been with us over the last 10 years, we'd be bigger than (Intl.) CES," said Nick Orfanopoulos, NATPE senior vice president of conference operations and sales.
"We were enormous," added Orfanopoulos. "Consolidation killed us. I hate consolidation."
Media mogul Ted Turner, NATPE's keynote speaker, said he also strongly dislikes the ever-present business strategy. In his speech, the former Time Warner head said that he ranks media consolidation on his list of the world's five biggest problems, and that his worst mistake was when he approved of the AOL Time Warner merger.
The exhibits of the two largest newly consolidated corporations (Viacom and NBC Universal) were so massive in size and overflowed with so many employees, buyers and onlookers, that adjacent, unrelated booths appeared to be part of the massive gatherings.
At 9,100 sq. ft., Viacom's booth was the Goliath of the show.
Last August, the giant media firm formed CBS Paramount Intl. Television, a global television sales and distribution entity that merged the resources of CBS Broadcast Intl. and Paramount Intl. Television. The conglomerate's booth signage also advertised its other television divisions: Paramount Domestic Television and King World.
Because of the CBS Paramount re-branding, Viacom's presence at NATPE was more unified this year than in the conglomerate's separate booth and suites at the 2004 show.
Business at neighboring exhibitor Screen Media Ventures was up because of Viacom's sprawling presence, said Melissa Falcigno, SMV's assistant operations manager. "We definitely wanted to be next to them," she said.
While Viacom's turnkey booth stood out because of its neon blue decor, newly formed NBC Universal started from scratch to create its novel image at this year's NATPE.
The company, the product of NBC's May 2004 purchase of Vivendi Universal Entertainment, showcased the NBC Universal Television Distribution division in a stark white 5,600 sq. ft. booth with walnut veneer paneling — one of few custom exhibits on the showfloor.
Pauline Bohm, vice president of international marketing for NBC Universal, said she selected the design to help the new company "break out of the pack."
However, in 2004, the separate entities' booths totaled 13,600 sq. ft. — proof that merged companies don't have double-sized budgets.
"A lot of these companies can't really justify spending a half-million dollars on a brand new booth," said James Schnauer, vice president of Button Live Communications, the design firm behind the NBC Universal exhibit.
According to Orfanopoulos, the consolidation heat may reach a near-boil at the 2006 NATPE as Sony is expected to complete its purchase of Metro Goldwyn Mayer Studios sometime this summer.
"Next year we may lose MGM, because MGM will probably be swallowed into Sony," he said. "It never stops."
The separate booths of MGM and Sony this year spanned 4,200 and 5,600 sq. ft., respectively.
