When it comes to the upfront, arts network Ovation TV Inc. typically sells about 70% of its advertising inventory for the TV season.
This time around, though, marketplace dynamics have Executive Vice President of Network Strategy Liz Janneman considering lowering the level of inventory the network allocates during the upcoming upfront market.
Janneman, in an interview following Ovation's March 8 upfront presentation in New York, said she was not certain how the upfront will play out owing to a number of variables, including the closing of Discovery Communications Inc.'s purchase of Scripps Networks Interactive Inc., linear rating declines across an array of programmers and "the impact of networks announcing a reduction in the commercial time they are selling," she said.
She was referring to moves by NBCUniversal Media LLC calling for a 10% decline in ad time across original prime-time shows on its broadcast and cable networks and FOX (US) limiting the number of advertising pods it will offer on Sunday nights, with both initiatives slated to start this fall.
"I think there is some concern about the degree by which the market can sustain price, because the combination of reduced ratings and reduced commercial time is going to result in [higher] pricing that may not be palatable" for a number of advertisers, she said.
Ovation and other content providers need to adjust to the evolving ad market, according to Janneman. The continued reliance on the upfront, she said, "reflects historically how business has been done. Now you can see so many different opportunities" with short-term schedules, scatter, programmatic and advertisers that have experimented with digital returning parts of their budgets back to linear TV.
"Frankly, I wish we sold less in the upfront. It's a little bit more of a risk," she said, before noting an upfront reduction could yield more ad dollars overall and better position Ovation for the changing advertising world.
Ovation's primary target is adults 25 to 54. It's an affluent audience, as the network’s average household income is above $140,000.
While the ad roster includes Infiniti and Lexus, Janneman said Ovation holds appeal for companies looking to reach a group wielding discretionary income, who can become loyal customers. "That has been prevalent in a lot of our conversations," she said. "Advertisers like that we offer premium content that is safe; they don’t have to worry about the environment."
The network can also offer advertisers access to millennials via Journy, the streaming service that launched in October and offers short- and long-form fare about art and culture through the prism of adventure travel.
The app is currently supported by Roku and XUMO-connected TVs, but Ovation said Journy will become accessible via Android and iOS devices shortly.
Many advertisers are buying both linear and digital schedules as Ovation is cross-promoting content across the platforms. For instance, the travel-oriented shows on Ovation point viewers to the streaming service, while Journy is featuring behind-the-scene footage and interviews with the cast of "X Company" and directing users to watch the new espionage show on the linear channel. Based on the top-secret training facility at Lake Ontario, "X Company" trails five recruits who are trained to help the Allies change the course of World War II.
The program was one of four series Ovation spotlighted during its presentation, which was shifted from City Winery on March 7 to the SoHo Grand Hotel the following evening in deference to the Nor'easter that hit the New York area.
The third and final season of "Versailles," the period drama chronicling Louis XIV while the famed palace was being constructed that originally aired on France’s Canal +, is scheduled to bow Oct. 6.
Janneman said the Sun King series, which is Ovation’s most-watched show, will provide a promotional platform for the 10-episode first season of "Riviera," which follows an art curator (Julia Stiles), whose husband dies in a mysterious yachting accident, and she must fight to retain her share of the fortune forged amid theft and money laundering. Production on a second season could begin this summer, with Ovation interested again in obtaining rights from Sky Vision, the distribution and production unit of Sky PLC.
The network also turned to Sky Vision for the 13-hour first season of "The Wine Show," where acting buddies Matthew Goode (Netflix Inc.'s "The Crown") and Matthew Rhys (FX Network (US)'s "The Americans") reside in an Italian villa and learn about vino with an assist from experts Joe Fattorini and Amelia Singer.
Looking ahead, Janneman said Ovation is in development of its first original scripted series, set in modern times, and slated for 2019. An announcement is expected in about 30 days.
