April 25, 2024

Pivot TV Pitches to Young Viewers

The question is more than academic for Mr. Shapiro, a former president of IFC and the Sundance Channel, who is honing his own plan for something new, a channel for young people called Pivot that will become available in 40 million homes on Thursday. Being around students has reminded him again and again how hard it will be to keep their attention.

“There are a bajillion media choices out there,” said Mr. Shapiro, now the president of Pivot, probably slightly underestimating how many options there really are. “This generation has information and data and content thrown at them at lightning speed. The idea that they will actually care about us and know about us is probably our biggest challenge.”

So Pivot is keeping expectations low — it won’t be rated by Nielsen at the outset — while trying to be on every screen it can. The channel is part of a drive into television by Participant Media, the film company behind “An Inconvenient Truth,” “Lincoln,” “A Place at the Table” and others. It comes at a time of intense skepticism about whether people under 35 are watching traditional television at all anymore, now that alternatives like Netflix and YouTube are available.

Nielsen data backs up Pivot’s claims that old-fashioned television is still paramount among young people. In the first quarter of 2013, the typical adult aged 18 to 24 watched about four hours of TV every day, most of it live, and 16 minutes of Internet programming. Those aged 25 to 34 watched about an hour more TV than the younger group, and almost as much on the Internet.

Still, the trend lines are ominous; traditional TV consumption has been slipping among those under 34 for the last two years. And many people suspect that the shift is happening faster than Nielsen’s data suggests. So why start a channel for the so-called millennial generation, besides the obvious answers involving advertisers who pay a premium for younger demographics?

Mr. Shapiro’s answer involved a great deal of flattery. Where others see stereotypes about “navel-gazing entitled narcissists,” he said, “we see the most open-minded, most connected, most generous, most giving generation alive on the planet today. We’re betting heavy on their ability to make the changes that the world so badly needs.”

Participant Media’s progressive mandate — “entertainment that inspires and compels social change” — will carry over to Pivot through on-screen graphics about how viewers can help combat, say, hunger in America, or support antibullying efforts. But Mr. Shapiro stressed that Pivot will be a general entertainment channel, complete with an original comedy called “Please Like Me” and repeats of “Friday Night Lights” and “Farscape.”

“We can’t fulfill the second part of our mandate if we can’t fulfill the first,” he said.

Mr. Shapiro, 46, is not himself a millennial, nor is his senior management team, and when told during a telephone interview that this reporter was 27, he exclaimed, “You’re a child!” At other times, he used “kids” before correcting himself and saying “young people.” But he said “half the programming group are millennials.”

The channel’s celebrity backers include Joseph Gordon-Levitt, whose variety show, “HitRECord on TV!,” will come on early next year, and Meghan McCain, whose on-the-road talk show, “Raising McCain,” will premiere in September.

In an interview Ms. McCain, 28, daughter of Senator John McCain, Republican of Arizona, admitted to some hesitation before her first meeting with Pivot, given the history of high-minded start-up channels “that quite frankly don’t do that well.” (Participant acquired two failed channels, the Documentary Channel and Halogen TV, last year to allow the creation of Pivot.) But she said she came away convinced by the channel’s potential.

“When I was growing up, MTV News had such a big impact on my life,” Ms. McCain said. Now it scarcely exists, she added, implying that Pivot could fulfill a similar purpose. Mr. Shapiro included MTV in Pivot’s competitive set, along with ABC Family, BBC America, the forthcoming FX spinoff FXX, Hulu and Netflix.

“Our bet is on a pluralistic view of the future of television,” he said, meaning viewers can choose scheduled or on-demand offerings. Kent Rees, Pivot’s top scheduler, said the channel has been constructed with binge viewing in mind: For instance, the first six episodes of “Please Like Me,” an Australian comedy starring Josh Thomas that made its debut in that country earlier this year, will be shown several times in a row during Pivot’s first week. They’ll also be available on demand.

While Pivot is dependent on the support of cable and satellite providers, some of which have declined to carry it, the channel also wants (and needs) to reach the viewers it calls “broadbanders” (and others call cord-cutters), who pay for Internet but not bundled TV channels. It is encouraging broadband providers to sell a small bundle of channels, Pivot included, for Internet streaming.

“It would be the first product of its kind,” Mr. Shapiro said, sold through the broadband provider — if any agree to do it, that is. Exuding confidence, he said the Internet version would “roll out in the next 12 months.” By then, Pivot hopes to be premiering its first scripted drama, “Will,” about Shakespeare’s life as a millennial.

Article source: http://www.nytimes.com/2013/07/30/business/media/pivot-tv-pitches-to-young-viewers.html?partner=rss&emc=rss

Authorities Raid Olympus Offices in Tokyo

TOKYO — More than two months after Olympus’s former president blew the whistle on a huge accounting fraud, Japanese authorities raided the company’s headquarters here Wednesday, emerging several hours later with boxes of documents.

TV cameras crews, tipped off in advance, were in position outside to watch dozens of investigators in dark business suits pour into the building. But it is likely to take more than symbolic action to assure foreign investors that the company will address a scandal that has caused the company’s stock market value to drop by half since early October.

Olympus is said to be looking to raise capital from a domestic investor, a move that would dilute the influence of overseas shareholders, while making fundamental changes less likely.

In fact, some foreign shareholders say the reaction to the scandal is shaping up to confirm overseas investors’ worst fears about Japan Inc.: that entrenched executives will thwart any attempts at reform, with their business-as-usual attitudes given the tacit endorsement of friendly bankers and staid Japanese institutional investors.

The eventual Olympus salvage plan could even be a Japan-wide effort. This week, the Nikkei business daily reported that Olympus might issue about 100 billion yen (about $1.3 billion) in new preferred shares, and that Japanese technology companies like Fujifilm or Sony might be possible buyers. Those two companies, though, denied that any such investment was in the works.

Foreign institutional investors are on edge. “The incumbent board should not be allowed to sell off Olympus’s independence on the cheap to protect its own interests,” an American fund manager, Southeastern Asset Management, said in a statement this week. “Allowing it to do so would deal a severe blow to the reputation of Japan’s capital markets and corporate governance,” said Southeastern, which holds about 5 percent of Olympus shares.

Top Olympus executives acknowledged last month that the company had conducted a decades-long effort to cover up $1.7 billion in investment losses in a global scheme that sparked public investigations on three continents. Last week, Olympus acknowledged some of the losses in five years’ worth of revised statements, which showed shareholders’ equity plunging to just 42.9 billion yen and casting a shadow over the company’s long-term viability.

Three executives implicated in the scheme have left the company. But the rest of the Olympus board has been scrambling to retain control of the company. Backing them are the country’s biggest banks, which hold great sway over top Japanese corporations, serving as major lenders and as major shareholders.

The Sumitomo Mitsui Financial Group is the biggest lender to Olympus with 227.5 billion yen in outstanding loans and bonds, according to Reuters, and also holds a 3.4 percent equity stake in the company. Olympus’s other main lender-cum-shareholder, Mitsubishi UFJ Financial Group, owns a 7.6 percent stake and has also stood by the company’s management.

Together, they are likely to bring in a new domestic investor to inject more capital into the company — a bid to diminish the role of foreign investors in shaping the company’s future, according to several people briefed on the plans. That has caused dismay among foreign shareholders, who say the current management is tainted and should leave, for the sake of robust corporate governance.

It is unclear how many Olympus shares are controlled by overseas investors, but analysts say the proportion could be significant.

Officials at Sumitomo Mitsui and Mitsubishi UJF declined to comment Wednesday.

Any moves by Olympus to inject new equity into the company might also thwart efforts by the whistle-blowing former chief executive, Michael C. Woodford, to return to the company’s helm with a new slate of directors. Mr. Woodford, a British national, was fired in mid-October after he questioned the Olympus board over a series of unusually large acquisition payments that were later found to be part of the company’s cover-up.

Mr. Woodford has said he had enlisted “impressive” members of the Japanese business community to join his prospective board and had outlined his own plans to raise capital, either through private equity or a rights issue.

But working with private equity firms, especially from overseas, may not go down well with Japanese investors, who often see them as vulture funds looking to feast on weak Japanese companies and sell off their assets piecemeal.

Article source: http://www.nytimes.com/2011/12/22/business/global/prosecutors-in-japan-raid-olympuss-headquarters.html?partner=rss&emc=rss