COLUMBIA, Md.—Lionsgate and its TV syndicator subsidiary Debmar-Mercury have selected LTN to launch and deliver the new MovieSphereGold all-movie digital network via LTN’s multicast-enabled, purpose-built IP video distribution network.

MovieSphereGold is available in 38 million homes and continues to expand its reach across pay-TV, streaming platforms and local station groups reaching more than 86% of U.S. TV households.

The movie network is said to be the first contemporary all-movie digital network. It features premium films from Lionsgate’s 20,000-title library, including franchises like ”The Hunger Games,” “John Wick” and ”Rambo.”

LTN’s footprint and distribution expertise give MovieSphereGold seamless access to stations across all major broadcast groups, multichannel video programming distributors and virtual MVPDs including DirecTV, Dish TV, Frndly TV and Sling Freestream. LTN relies upon broadcast-grade, Transport Stream over Internet Protocol (IP-TS) video distribution technology to provide the network with a cost-efficient, reliable and flexible alternative to satellite, LTN said.

“Purpose-built LTN multicast IP-TS distribution is now the primary choice for established and new networks that want to reliably and cost-efficiently reach traditional and digital platforms,” LTN Executive Chairman and Co-Founder Malik Khan said. “Premium movie experiences hold viewer attention and drive strong ad value. MovieSphereGold is an innovative launch and a recognition of the readiness and footprint of our network, which is on course to reach 100% of U.S. pay-TV households in 2026.”

The network launch was completed in three months with LTN enabling instant activation across existing delivery points while rapidly onboarding dozens of new affiliates and hand-off sites as part of a fully managed service.

LTN enabled MovieSphereGold to deliver its high-quality HD feed while quickly providing downconverted standard-definition feeds to meet the varying needs of downstream takers. LTN’s always-on technical operations center is providing MovieSphereGold with full visibility and operational support that includes real-time feed visibility and insights into signal performance across its entire nationwide distribution footprint, the company said.

More information is available on the company’s website.

First-run (originally produced by non-TV network studio content makers, aka syndicators) shows such as "Entertainment Tonight," "Jeopardy!," "Wheel of Fortune," "Oprah," "Dr. Phil," and "Judge Judy" plus off-network (reruns) shows such as "I Love Lucy" and "Star Trek" have captured TV viewers for decades. These syndicated shows are paid for by TV stations licensing these shows for cash, a mix of cash and national advertising slots reserved for the syndicator, or a barter arrangement where the syndicator and station split the national ad revenues generated by the shows.

Of course, much has changed since the Big Three (ABC, CBS and NBC) network days of the 1960s. In particular, the advent of independent UHF TV stations, Fox and other new networks, and then the plethora of specialty channels on cable and satellite TV, has fragmented the viewing audience. This fragmentation has been increased by Netflix, Amazon, Disney+, Hulu, and YouTube, among other subscription and ad-supported streaming content providers.

Despite this, TV syndication content producers and distributors such as Fox First Run ("You Bet Your Life with Jay Leno," "Pictionary," "25 Words or Less," "Divorce Court," "Dish Nation," "TMZ," and "TMZ Live") and Lionsgate’s Debmar-Mercury ("Family Feud," "Sherri," and "People Puzzler") are still producing current hits and developing new ones, while turning a profit in the process. Here’s how they’re doing it.

Sales Process Hasn't Changed
First things first: Although TV syndicators are mindful that the TV viewing audience continues to fragment even more, they’re not frightened by this fact. That’s because they’re accustomed to it. 

“Back in the 1980s, I was at an ad agency and I did a client presentation about fragmenting television and how cable television was going to disperse our audiences and take over everything,” recalled Ira Bernstein, co-president of Debmar-Mercury. “Since then, we've been through many, many stages where the audience just fragments more and more. So we’re used to it.”

“It's harder to get a large audience than it was before,” agreed Mort Marcus, Debmar-Mercury’s other co-president. “At the same time, the sales process for syndicated TV shows is much the same as it was 30 years ago. Granted, there’s way more business consolidation. Today a prospective client may own 50 stations instead of 10. Still, you’re selling TV shows on a city-by-city basis. And although the viewership has been compromised by fragmentation, local TV stations still need non-network content.”

The Economics Have Changed ... and They Have Not
With lower ratings due to audience fragmentation, it is harder for syndicated TV shows to earn the revenues they once did. “This is why the big time syndicated hits like 'Oprah'—which made so much money for distributors in the past because TV stations just had to have them—could be a thing of the past,” said Frank Cicha, executive vice president of programming at Fox Television Stations. “'Even Dr. Phil' is not going to do any more original episodes after 21 years on air. 

"That’s because viewership isn't supporting the idea of big license fees from stations as much as it used to—with exceptions like 'Wheel of Fortune' and 'Jeopardy!,' which remain as two legitimate hits," Cicha added. "Some would say that the days of the 10 million viewer talk show with the $30 million talk show talent are a thing of the past.” 

This being said, first run TV syndication program production has never been a Cadillac industry. This is why its producers favor TV talk and game shows—both of which can ‘gang shoot’ multiple shows per day in studio. 

“When it comes to our game shows, we typically shoot 180 shows over eight weeks, with two of those weeks off to pace things,” said Stephen Brown, executive vice president of Programming and Development at Fox First Run and Fox Television Stations. “It's good for the hosts because their commitment is only for six of those eight weeks, allowing them to do other things for the rest of the year. And it saves us money because we can use the same stage and crew for multiple shows, rather than setting up and tearing down after each one.”

Finding Other Revenue Streams
With the fragmentation-driven decline in their traditional revenues, syndicators are finding other ways to make money from their TV programs.

One way to do this is by franchising successful US TV syndication show formats to other countries. “For instance, game show formats like 25 Words or Less have been sold into Italy and Spain,” said Brown. “So we sell the shows, we sell the formats, and then there's streaming. When we can earn revenue from streaming shows like Divorce Court, that makes all the difference.”

Having the talent read commercials during the shows and offering paid product placements are two more ways that syndicators earn extra money from their content. Although there is debate about the additional advertising "clutter" these methods add to syndicated programs, “people generally understand that producers have to do this kind of thing or we're not going to get shows,” Cicha said. “I think it's that simple.”

Here to Stay
With their ability to produce cost-effective programming that people will watch, strike creative licensing and ad-sharing deals with TV stations, and generate a range of revenue streams from their content, syndicators are already accustomed to ‘living lean’. As such, they are better prepared to adapt to the economics of audience fragmentation than the big broadcast networks and streaming services are.

Moreover, “there will always be a need for content, especially for smaller stations that might not have a news division or lack the resources to produce original programming themselves,” said Brown. “So ultimately syndication is going to always be here. There's always going to be a need for our programming because stations need it.”

WASHINGTON, D.C.--Wendy Williams, host of “The Wendy Williams Show,” will receive the NAB Show New York Impact Award on Thursday, October 18, during the 2018 NAB Show New York. Williams will also participate in a featured main stage keynote session with Mort Marcus and Ira Bernstein, co-presidents of the talk show’s producer and distributor, Lionsgate’s Debmar-Mercury.

The NAB Show New York Impact Award honors innovative leaders in media and entertainment for their impact and influence on the overall industry, as well as in the city of New York. Williams will be honored for her 10 years of success as host of “The Wendy Williams Show,” which attracts millions of viewers every day and is produced live in New York City. The award also honors Williams for her philanthropic work, notably with The Hunter Foundation and the newly-announced Be Here Initiative. The initiative is a national awareness and call-to-action drug addiction and substance abuse campaign.

“Wendy achieved early success as one of the most popular personalities on radio and continues to influence the media and entertainment industry as host of her Emmy-nominated weekday talk show,” said NAB Executive Vice President of Conventions and Business Operations Chris Brown. “She is truly a New York success story, and we look forward to honoring her with this prestigious and well-deserved award.”

Following the award presentation, Williams and Debmar-Mercury’s Marcus and Bernstein will discuss their decade-long partnership in a session titled, “How You Doin’? – Debmar-Mercury and Wendy Williams Celebrate Ten Years of Success Together.” The session will focus on Williams’ continued appeal to a large mainstream daytime audience; her ability to hold viewers’ interest live for an hour a day on her own; and the show’s ability to attract top production talent and celebrity guests.

“The Wendy Williams Show” includes a mix of interviews with celebrity guests from television, film, music and sports. It has been nominated for multiple daytime Emmy awards and is broadcast in 53 countries. Prior to her time on television, Williams spent 23 years on radio where her career culminated with induction into the National Radio Hall of Fame in 2009. Williams has also performed on Broadway and in films and is a best-selling author and fashion designer.

Marcus and Bernstein formed Debmar-Mercury in 2003. Following its 2006 acquisition by Lionsgate, Marcus and Bernstein introduced the new summer test model in 2008 for “The Wendy Williams Show” on the Fox Television Stations. The strategy generated strong ratings, giving Debmar-Mercury the momentum to sell the show to stations across the country for a fall 2009 national syndication debut.

Prior to Debmar-Mercury, Marcus served as president of The Walt Disney Company’s syndication wing, Buena Vista Television, among other high-level posts at Disney and throughout the industry. Bernstein served as president of Worldwide Television for Lionsgate and president of Domestic Television for Cox Enterprise’s production and distribution studio division, among others.