Bruce Johansen: 'We Are All Under an Enormous Amount of Pressure'
NATPE's president and CEO says the economic downturn is having a big impact on the television industry, adding, "We all need to develop more efficient business models."

I Want Media, 01/17/02

Bruce Johansen is president and CEO of the National Association of Television Program Executives (NATPE), the leading television program and media content group, which is holding its annual convention in Las Vegas Jan. 21-24. The industry get-together attracts thousands of communications executives from around the globe. Johansen spoke with I Want Media about challenges facing all content producers and the hard times that have hit both the television industry and NATPE.

I Want Media: Some executive shuffling and layoffs took place at NATPE during the past year. How come?

Bruce Johansen: The economic downturn that hit this country early last year took its toll on most businesses and NATPE was no exception. Like everyone, we needed to temper our financial projections and trim our expenses accordingly.

IWM: A number of exhibitors canceled their booths at NATPE 2002. What happened?

Johansen: We witnessed a kind of ground swell. After one of the majors decided to pull off the floor back in the spring there was relatively little interest on the part of other exhibitors to follow. Once the seriousness of the economic situation was clear, and with the resulting implosion of the advertising market, however, many companies were forced to re-evaluate their expense lines. Marketing events are an easy target.

IWM: Recent trade publication articles say the NATPE convention "isn't what it used to be." How do you address such a charge?

Johansen: Of course NATPE isn't what it used to be. It has evolved each year of its existence and that's a healthy thing. The one constant in any thriving industry is you cannot be constant.

IWM: What is expected to be the attendance at NATPE 2002?

Johansen: It's hard to say at this point because we traditionally witness 45 to 55 percent registration on-site. At the moment, our pre-registration is running about 40 percent behind last year.

IWM: "Content, consolidation and convergence" marked last year's convention, according to your NATPE 2001 welcome address. What about this year's?

Johansen: It's a new era and we all need to develop more efficient business models, non-profit associations included.

IWM: What do you expect will be the highlights of this year's gathering?

Johansen: We're thrilled to have the opportunity of honoring one of television's most prolific producers, Dick Wolf, as well as an innovator in his own right, Ted Koppel. FCC Chairman Michael Powell's remarks are greatly anticipated, and we are excited over the inclusion of John Walsh in our formidable lineup of speakers.

IWM: What will be the hot topics in discussion at NATPE 2002?

Johansen: We are placing a new focus on sports as a programming genre and will continue to underscore the critical impact of advertising on the business. Many of our attendees stress the importance of demonstrations and seminars on HDTV and alternative media. We are happy to continue our tradition of offering a full slate of sessions on this important subject.

IWM: What are the biggest challenges facing the television programming and content industries?

Johansen: We are all under an enormous amount of pressure: on delivering audiences, on reining in costs and in figuring out how to beat our competition. It is tougher and tougher for an independent producer to survive in this post-consolidation climate, and I think the challenges of nurturing new generations of creative thinkers will be right out there in front.

IWM: A new NATPE 2002 event, "The Best of the Ad Client Pitches," sounds interesting. What's it about?

Johansen: This session, sponsored by Brandweek magazine, takes the premise of our "Pitch Me!" session into the world of advertising. Prominent advertisers -- including David Cowan of Procter & Gamble, Kaki Hinton of Pfizer Consumer Group and Andy Jung of Kellogg Company -- will critique media proposals submitted by TV sales execs. The winner will get the opportunity to present their proposal to the Association of National Advertisers Television Committee in March in New York. We expect this to be a very fun and informative seminar.

IWM: What is the "Pitch Me!" competition about?

Johansen: The wildly fun "Pitch Me!" competition gives 16 lucky contestants one minute to pitch their idea for a television project to a panel of industry decision-makers. The emcee this year is George Gray, host of the syndicated version of "The Weakest Link." The winner gets a series of pitch meetings with key Hollywood TV development execs. "Pitch Me!" Is consistently one of the best-attended sessions each year at NATPE.

IWM: Have any previous years' "Pitch Me!" proposals ever come to fruition?

Johansen: Many of the "Pitch Me!" winners and losers have at least ended up with an agent for their efforts. One year a runner-up did have their show go into syndication development, but it was never green-lighted. All participants agree that the experience taught them a lot about pitching and prepared them for future pitch meetings.

IWM: Last year was one of the most economically challenged ever. What were some of 2001's major developments?

Johansen: Some of the challenges included a difficult ad market, the continuing consolidation of the media industry, and a return to a very conservative approach to business decisions after many years of a boom mentality.

IWM: What will be some of the challenges related to advertising in 2002?

Johansen: Depending on who to you talk to, the advertising industry should be looking at a rebound in the third or fourth quarter this year; some even think not until next year. With that rebound I think advertisers will be re-evaluating audience measurement, the use of specific spots announcements versus product placement, an increased involvement in the creative process, and the perceived threat of PVRs.

IWM: How will pending deregulation impact the TV industry?

Johansen: If the caps on station ownership evaporate, as many believe, it will further the consolidation of media companies and make it even more difficult for a small company or independent producer to survive.

IWM: What's the latest on HDTV?

Johansen: Currently, 229 stations in 80 markets representing almost 74 percent of the country have made the transition to broadcasting a digital signal. However, the high cost of HDTV has slowed the acceptance by consumers to the new digital technology. As the costs come down, so will the reluctance to purchase. Currently, three major networks, ABC, CBS and NBC, are producing prime time programming in HDTV, and ABC and CBS are producing most of their prime time lineups in HDTV.

IWM: Has NATPE broadened its focus from television to incorporate other media content and convergence?

Johansen: When we first started adding new media activities to the conference in 1997, we asked ourselves, "How will this benefit our members?" And the answer remains the same today as it was five years ago: The showcases and demos we offer on alternative methods of media distribution provide our attendees with a great way to remain competitive in today's marketplace. They rely on us to help them stay ahead of the curve, especially since it's only a matter of time before digital becomes the standard in business and in homes. We continue to monitor and examine the digital transition and Internet and broadband opportunities because they affect our core members on so many levels.



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