Localized formats: a toehold in crowded markets.

Over the last five years, the world's television landscape has experienced a sharp increase in local production. Some sources estimate this increase to be as high as 50 percent. Spurred by better ratings, the growth of private broadcasting and government policies mandating local content requirements,

Ideally, the success garnered in home markets can be duplicated for other broadcasters whose own fare has not performed as well. Cesar Diaz, general manager of Telefe International, said that Brazil's SBT looked to Telefe's successful half-hour series Tiny Angels to boost its 8 p.m. time slot; the time period, which had averaged a seven point or eight point share, now earns an average 15 point or 16 point share with Tiny Angels.

Marion Edwards, executive vp of Twentieth Century Fox International Television, commented: "As with the other studios, at Fox we are giving this business some thought. While we were reasonably successful with format sales of a show called Studs, we currently do not have any formats in production. However, we have some current experience, mostly as a consequence of buying MTM, in format sales of The Mary Tyler Moore Show."

A clear vision helps one avoid costly pitfalls. For example, Edwards explained that the format process is often stymied by complex negotiations involving creative talent - typically writers and producers, but sometimes stars with a participation in the revenues. Edwards added that this is especially true for Fox's comedy and drama series.

For some independents, such as Promark Entertainment, the key to staying competitive is counterprogramming. According to Jonathan Kramer, president and CEO of Promark, local production has eliminated some of the time slots that were previously available for feature films. Kramer said that this fact, along with a difficult business climate in key international territories, prompted a shift in Promark's strategic focus from feature film production to other programming genres.

Today's localized format sales tend to be more akin to co-productions than to straight program sales. The key word is collaboration, because a format often involves a very successful property, one which in this age of branding can have special value for the program provider. An example is Telefe's Tiny Angels. Telefe's arrangement with SBT provides for hands-on supervision by the creators of the original series. Furthermore, the Brazilian version is being produced in Argentina on sound stages that are next to those of its Argentinean counterpart. Local flavor is maintained via different set designs, ones that are more appropriate to the Brazilian culture. Collaboration is also evident in the way the series is written. The Brazilian writers work very closely with the Argentinean writers, taking what was learned from the experience in Argentina and adapting it to best suit Brazilian sensibilities. Furthermore, Telefe was very involved in the marketing of the Brazilian version, providing promos and other technical know-how for the Brazilian launch. Flexibility is the operative word: Diaz explained that the Brazilian version will be produced on SBT facilities once the Brazilian production team is fully up to speed and the merchandising ventures are in place. What is remarkable is the closeness that Tiny Angels has fostered between Telefe VP of Program Content Gustavo Yankelevich and his SBT counterpart. According to Diaz, Yankelevich has in his office a direct satellite feed from SBT Brazil, which allows him to monitor the progress of the Brazilian series.

Recognizing the value of playing the global marketplace with a local scorecard, Universal has promoted Ned Nalle (of Hercules and Xena fame) to the position of president of Worldwide Television Production. Nalle's responsibilities include oversight on three talk shows that are currently being produced in Europe: Vera am Mittag (Germany), Vanessa (U.K.) and Catherine (Netherlands). Nalle believes that vast opportunities exist in the international marketplace for products that meet the highest possible creative standard.

Format fever has caught on in the news as well. CNBC Europe (a service of NBC and Dow Jones) and the Global Programming Network recently inked an agreement to launch a half-hour version of Future File. Billed as a global magazine series, the venture will offer each international territory the choice of carrying the whole half-hour show as produced by CNBC (complete with CNBC's London-based multinational hosts) or inserting separate music and effects tracks and their own local hosts around each packaged segment so that the series airs in the native tongue. Furthermore, stations will be given the option of producing local segments and inserting them in place of designated packaged segments. Also interesting are CNBC's plans to create a cooperative global program similar to PM Magazine.