This is part 2 of a two-part post on Globe Trekker, the leading PBS Travel series created by Pilot Productions’ Ian Cross.
- Last week: Globe Trekker’s history, distribution and audience
- This post: the business model and Takeaways.
REVENUES
Public TV Revenue Model
- Stations are given programs for free or for a comparatively low license fee
- The producer sells sponsorships, and keeps this income
- The producer also keeps revenues from DVD and other product sales
Sponsors
- WETA is the presenting station for the Public TV system
- WETA also sells the sponsorships
- There are 4 sponsor slots
- Subaru has been on board for 10 years
- Others have included Merrill (footwear)and several travel companies
- Not very season is sold out
- Sponsorship revenues: “They are in the high six figures, rising to over a $ million if the season is sold out”
DVD Model
- The DVD’s are offered in a spot that directs viewers to the producer’s website or to a toll-free 800#
- This spot is embedded at the close of the program
- The producer is responsible for taking the order, maintaining inventory, and shipping the product
DVD / Other Revenues
- Contributes around 15% of revenues generated by Globe Trekker
- Sales are declining every year
- Pilot also licenses programs to the inflight entertainment market
- Other minor revenue streams include tasteful product placement, music and licensing footage
International
- International appeal is critically important to the success of the series
- 50% +/- of annual sales are for the current season, and the rest for the archive
- IMG represents the back catalog for broadcast
- Buyers include: ABC (Australia), Discovery Asia, Travel Channel (UK), YLE (Finland), TVE (Spain), PBS (Thailand), Voyage (France), ERT (Greece), France 5, ATV (Hong Kong), SVT (Sweden) and IBA (Israel)
- There’s comparatively little international DVD activity
Archive / Catalog
Pilot has created a substantial catalog:
- Planet Food (22 hours)
- World Café (34 half hours)
- Metropolis (6 half hours)
- Bazaar (13 half hours)
- Adventure Golf (14 half hours)
- Treks in a Wild World (47 half hours)
- Pilot Globe Guides (archive) (39 half hours)
Pilot has created 50 +/- ‘new’ and market-able hours out of archive
BIGGEST CHALLENGE
According to Ian Cross:
- “Deficit finance: The more we produce, the more we have to deficit finance, and the more cash flow problems we experience, and the greater the risk.”
- “And the banks aren’t there to contribute at the levels they did in the past.”
WHAT’S NEXT?
- “We’re moving into the History genre.”
- “We just produced Ottomans Versus Christians: Battle for the Mediterranean.”
- “It’s a 3 x one hour limited series that we deficit financed, and we’re out selling it now.”
TAKEAWAYS / SUCCESS SECRETS
“The U.S. Public TV model continues to be the platform for our success.”
- “It’s a unique funding model: Nowhere else in the world can producers license their programs and keep the ‘ad sales’ revenue stream as well as DVD sales.”
- “However, the model works better for long-standing franchise series, not one-offs or short runs.”
- “And the model requires the sponsors to commit upfront – otherwise producers face an enormously risky decision to deficit-finance their series.”
- “The content must be internationally-appealing to support global sales.”
- “And there are lots of ancillary sales opportunities built into the model, including DVD’s, discreet product placement, and so on.”