It's a throwaway moment, but an apt illustration of just how
much of a New Guy Mr. Reilly still is. He officially started his
Turner tenure at the beginning of the year, six months after
stepping down as Fox's entertainment chairman, but even so, he's
still acclimating himself to the place. Now he wants to make two
very s mainstream cable networks a little less vanilla, a bit more
current, with an eye toward playing zeitgeist tag with the likes of
FX, AMC and HBO, Turner's sibling within Time
Warner.
First, though, comes the 2015-16 upfront presentation. You're
not going to see a bunch of clips from shows that have Mr. Reilly's
fingerprints all over them when Turner unveils its upfront lineup
at the Theater at Madison Square Garden this Wednesday. "The
truth is, I just haven't been here long enough," he says. "There
will be a few new announcements, a few pieces of business on the
content side, but it's not like I'm just going to throw a light
switch and there's all this new stuff."
When he takes the stage, it will be almost a year to the day
since Mr. Reilly presided over what he thought might have been his
last upfront gig. If it appeared as if something were off with his
performance -- maybe the smile seemed a little less than genuine,
maybe his pitch was a little less polished than in years past -- it
was because Mr. Reilly already knew he was leaving. Both parties
made it official two weeks later.
But upfronts are about what lies ahead, and Mr. Reilly is again
getting ready to map out the route. During his brief interlude in
front of ad buyers and their clients, his mission will be, in part,
to suggest where he'll take TNT and TBS in the coming months.
"This is an incredibly well-managed place, but I do think the
one thing that the two brands have sort of missed out on is the
cultural transition that's taken hold at other cable networks," he
says. "But we have the resources to catch up, and a key part of
that effort will be to make shows that rise to the surface of the
cultural conversation."
The resources he mentions are abundant. Turner generated a
staggering $10.4 billion in revenue a year ago and is on track to
scare up another $10.9 billion in 2015. Turner CEO John Martin said
last fall that TNT and TBS will double their original-programming
budget to
$1 billion by 2018.
If Turner's networks -- along with TNT and TBS, they include
truTV, Adult Swim, Cartoon Network and CNN -- appear to have a
license to print money, then David Levy is the executive who built
and staffed up the mint.
While many observers thought Mr. Levy had taken leave of his
senses when Turner and CBS in 2010 agreed to join forces on a $10.8
billion deal to share the NCAA's March Madness, the cooperative
venture is now the most lucrative in all of sports. But the 29-year
Turner vet oversees everything from the entertainment portfolios to
ad and affiliate sales. Even before he began taking an interest in
bringing Mr. Reilly aboard -- Turner Entertainment Network's
programming chief, Steven Koonin, left a year ago to helm the NBA's
Atlanta Hawks -- Mr. Levy was busy unifying traditional TV and
digital ad sales under Donna Speciale, and reorganizing the Cartoon
Network and Adult Swim division under Christina Miller.
When pressed on what viewers can expect to see on TNT and TBS in
the next 12 months, Mr. Levy avoids the cliché about going
"edgy." Instead, he makes the overarching strategy sound like a
game of Tetris. "We're trying to find what I would say are open
gaps in the very concentrated areas in the television business,"
Mr. Levy says. "There are tons of networks, all trying to find
their own audiences, but if we can move ourselves down into those
gaps, we're going to be successful."
While the details are still being worked out, it sounds as if
the new-look TNT will try to steal share from FX's stronghold of
younger, male viewers without alienating its already robust female
base. That's not as much of a stretch as it may seem; FX's
ultraviolent motorcycle gang drama, "Sons of Anarchy," boasted the
network's highest concentration of female viewers.
"We're going to figure out how to balance that all out," says
Mr. Levy, who is hosting me on yet another rainy day. The wind has
picked up, and as the rain lashes at the windows overlooking
Central Park South, his office is now like being inside some
infernal car wash. "So, 'The Last Ship' was a better crossover,
'Legend' is a better crossover. And the new shows we develop for
next year are going to take that to another level."
While Mr. Reilly characterizes the programming he wants to bring
to TNT as "more adventurous," it's his track record of identifying
shows that deconstruct and reassemble genre conventions that has
Mr. Levy champing at the bit. "You've got to take your hat off to
Kevin. He put on 'Empire,' OK?" he says. "Well, there was nothing
like that anywhere on TV. And it's a phenomenon. Finding places,
finding talent that is not out there right now in the marketplace
is really what we have to do."
TBS will continue as a comedy brand, which stands to reason. The
network owns so much syndicated content that nearly 60% of its
gross ratings points are generated by off-net shows like "Seinfeld"
and "The Big Bang Theory." According to Nielsen, "Big Bang" alone
accounts for 20% of TBS's ratings deliveries. Moreover, TBS still
has yet to debut four scripted comedies that it introduced in last
year's upfront.
While TBS's original sitcoms haven't made much of a ding on
America's funny bone, Mr. Reilly says he's not giving up on the
format. The sort of improv-heavy, "snackable" shows that are Comedy
Central's bailiwick won't really cut it at Turner. "Look, I love
with a capital L 'Key & Peele,'" he says. "But I see how my
kids will simply watch clips on YouTube and never make it back to
the linear channel. It's not easy to reconstitute that
audience."
Turner will join every other network group at the annual spring
sell-a-thon with a data blitz. The company is entering the market
with three data products, two of which it has used in earlier
deals. "I really believe this upfront is the inflection point of
our business," Mr. Levy says. "The relationship between linear and
digital is now something that every advertiser is talking about.
But more importantly, I think this is an inflection point between
content and data."
Turner's Audience Now product, which lets the division sell
targeted audiences across multiple networks using virtually any
behavioral target an advertiser desires, could help encourage
brands to finally move past traditional TV demos. "It's not just
going to be about age and gender, and we're going to be able to do
daypart-agnostic. Because that's how digital is basically sold,"
Mr. Levy says.
Early adoption is likely to be rather selective, he
acknowledges. "People are going to have to change their mindset.
These are audience-based guarantees. Very, very different. Now, do
I think everybody's going to go leap in there? No. And we can't do
it for everybody."
In a sort of beta test, Turner in last year's upfront did deals
with four agencies against another platform, Targeting Now.
Activations with clients such as Taco Bell and T-Mobile began in
the fall, and the campaigns delivered an average 21% lift in
delivery of targeted viewers, according to Turner.
"I think, by really homing in now on the target audiences of
what clients really want, it's now going to really shine a light on
how TV is definitely still working," Ms. Speciale says. "This is on
all screens, but I think it's going to prove that television has
the same dynamics as digital … and it further underscores
how the two media shouldn't be siloed. The whole conversation is
all about video on every screen, regardless of where it's being
consumed, and that's now how Turner is structured and that's how we
think. That's the way it has to be."
Wednesday's upfront presentation marks the first time the Turner
nets will present a unified front to advertisers, so buyers will be
pitched by everyone from Anderson Cooper to Conan O'Brien. Ms.
Speciale is putting the finishing touches on the script for the
show, which she promises won't go over the 90-minute mark. ("I was
an agency person, so I promise you, you will not have to sit there
all afternoon," she says.)
She's looking forward to the moment when Mr. Reilly will be
ready to mash the development pedal to the floor. "Kevin's only
been here since January," Ms. Speciale says. "I know he wishes he
had a bit more time behind him, but the upfront, unfortunately, is
here. It's showtime!"
If last spring isn't likely to make Mr. Reilly's personal
highlight reel, the Fox era is now behind him. He says he's looking
forward to what lies ahead, beyond the upfront, when the real work
begins: "I'll tell you, I am having the most fun I've had in a long
time."