USA Network to Explore Sitcoms and Reality Shows

For most of the past decade the USA Network has lived by the mantra “blue skies,” which has translated into programming a string of upbeat hourlong drama hits, like “Burn Notice” and “Royal Pains.”

That strategy has paid off, with USA ranking as the most-watched entertainment network on cable for eight straight years. So why is the network going to make a new pitch to advertisers on May 16 that emphasizes areas previously little explored by USA, like situation comedy and reality shows?

The most obvious reason: USA paid a hefty price — $1 million to $1.5 million an episode — three years ago to acquire reruns of the hugely popular ABC comedy “Modern Family.” Those episodes become available this fall, so a shift toward some comedy-based nights was inevitable.

But the network’s top program executives also acknowledge that in order to grow, and to maintain the top position in a competitive cable environment, it is time to branch out into new programming directions.

At its advertiser presentation next week, USA is expected to announce that it has ordered its first two original sitcoms, as well as several new reality shows, and a new drama that breaks with the USA tradition by taking a bit of a walk on the dark side.

“One of the dances any network does, and we’re doing one now, is the balance between breadth and depth,” said Jeff Wachtel, the co-president of USA. “We are a very broad general entertainment network in a world that is increasingly about the depth of the commitment.”

He added, “We have a reservoir of good will. Now that’s great, but it’s also a trap. Because if anybody imputes a formula to you, you really are in danger of being formulaic. We’ve got to challenge the audience.”

Other cable networks have been doing that with great success: AE has the reality hit “Duck Dynasty;” History collected big audiences for “The Bible;” FX has forged a reputation for dark dramas like “Justified;” and AMC has the biggest drama in all of television with “The Walking Dead.”

“There are a lot of networks infringing on USA’s territory,” said Derek Baine, a media analyst with SNL Kagan. “Changing the program lineup can be done. You just have to tread carefully because it can be jarring for the audience.”

USA’s numbers are unquestionably potent. Under Bonnie Hammer, who now is the chairwoman of the cable entertainment group for NBCUniversal, USA has been a profit machine. In 2012, the network exceeded $1 billion in profit for the first time, and it projects the number to be higher in 2013.

USA still has the top overall audience among cable entertainment networks with an average of 2.92 million viewers, ahead of the 2.43 million for the History Channel. USA is down slightly, 2 percent, this season.

It has remained No. 1, though narrowly, over TBS in one of the two audience groups that dominates sales to advertisers — viewers ages 25 to 54. But it trails TBS this season so far in the most important audience category, viewers ages 18 to 49.

That might not be bad news for USA, however, and not only because TBS gets a springtime bounce from college and pro basketball. The big winner for TBS is its package of repeats of the hit CBS sitcom “The Big Bang Theory,” which runs as often as 16 to 20 times a week on TBS.

Chris McCumber, the network’s other co-president, said USA would most likely use “Modern Family” much as TBS has used “Big Bang” — all over its schedule, sometimes filling a whole night of prime time.

“We want to be careful not to overuse it,” Mr. McCumber said. “But we think it will raise all boats in prime time.”

There is some question about whether “Modern Family” can perform as “Big Bang” has. It is a filmed comedy without a laugh track, and those tend to repeat less well than taped shows with audience laughter.

Article source: http://www.nytimes.com/2013/05/06/business/media/usa-network-to-explore-sitcoms-and-reality-shows.html?partner=rss&emc=rss