PART I
Adapting the Global Idols Format Chapter 1
Strategic Behaviour in the International Exploitation of TV Formats: A Case Study of the Idols Format1
Sukhpreet Singh and Martin Kretschmer
Introduction
The international trade in TV formats has been increasing steadily. According to the Format Recognition and Protection Association (a format producersâ industry association) the value of the global TV format business exceeds âŹ9.3 billion (FRAPA 2009). In the early 2000s, the market grew more than 30 per cent in three years, and the UK became one of the lead exporters of formats, along with the USA and the Netherlands (Financial Times 13 April 2005). This case study investigates how Idols became one of the most successful television formats sold worldwide â with, as noted in the Introduction, over 40 global versions â in the absence of specific format rights. Component parts of an Idols-type format may attract copyright protection in its production manual (also known as âformat bibleâ), set design, programming sequence, episode segments and musical content, but in a court of law the underlying concept and the format arrangement of the components do not attract copyright protection. From a legal perspective, if there is no formal protection regime provided by law, competitors should be able to copy the product freely and hence the price of such a product should be zero. However, formats are bought and sold for large sums of money. The license fee alone for a sought-after format, such as Idols, can cost broadcasters in a Western European territory upwards of âŹ35,000 for one series of 20 to 30 episodes of one-hour duration besides additional fees for consultancy in the form of flying producers.
This case study identifies the strategies employed by producers of the Idols format to counter the limited legal protection available to their cultural products. The case study is structured as follows. The first section gives an introductory overview of international trade in the Idols format, circumscribing the issue of format imitation from a legal and commercial point of view. Secondly, the research design for the case study is explained. Thirdly, market-based patterns of format protection and exploitation are identified from the empirical data. The chapter concludes with a discussion section, in which these patterns of exploitation are grouped into three overarching strategies pursued by the producers of the Idols format.
The International Trade in Idols
From the bold and glitzy American Idol to Indian Idol (infused by Bollywood and family values), Idols is one of the most successful global television format franchises. The origins of the Idols format were explored in 2004 in a dispute between Simon Fuller of 19TV and Simon Cowell of Syco (jointly with multinational TV producer and distributor FremantleMedia). This dispute was settled out of court in the UK. Fuller had brought the format to be co-developed with Talkback Thames â the production wing of FremantleMedia â whereupon it was broadcast first as Pop Idol on ITV, the UKâs main commercial terrestrial channel. FremantleMedia later on also co-produced a show called The X Factor created by Simon Cowell, who had been a show judge on Pop Idol. There were striking similarities between the two shows and hence Fuller sued Cowell and FremantleMedia in the UK on various counts (BBC 2004). Some of the charges included infringement of the â300 page production bibleâ of Pop Idol for The X Factor, imitation of technical aspects such as music, lighting, the showâs structure, use of the phrase âWeâre looking for the X Factorâ originally employed on Pop Idol, as well as using almost half of 59 staff, including senior producers, from the Pop Idol team to produce The X Factor (Singh 2009). However, a confidential commercial settlement allowed FremantleMedia and Simon Cowell to continue producing The X Factor format in the UK and other territories while giving Fuller a stake in The X Factor (Hinton 2006). Pop Idol was discontinued in the UK to make way for The X Factor, while Pop Idol (as per previous agreements between Fuller and FremantleMedia) continued to be exported as a format to other territories.
The Idols format saw a slow initial roll-out in various countries; notable amongst the first few were South Africa and Poland. A major push only followed after the success of American Idol. Tape sales of American Idol were initially secured in several territories within the English geo-linguistic cultural markets or with market potential for Western music and Western cultural values (such as Canada, Australia and Puerto Rico). In the industryâs understanding, tape sales test the market and stimulate demand in these territories to create local versions, leading to the sale of a format. From its beginning in 2001, Idols has aired more than 42 national territory versions (see the appendix to this book) while its taped versions have reached more than 154 countries (Elber 2006).
Equally popular in Western and Eastern Europe, Idols became the highest rated series ever in the Netherlands since the start of commercial television in 1989, whereas the final of Idols in the Czech Republic (titled Äesko HledĂĄ Superstar, also see the chapter by VĂĄclav Ĺ tÄtka in this volume) was watched by over one third of the population (FremantleMedia 2009). American Idol has consistently been ranked the television series with the highest American viewing figures, averaging around 22 million viewers per year (Rosenthal, 16 January 2011).
The Idols format is a well marketed brand with brand extensions in several product merchandising and licensing categories. To address cultural sensitivities (such as the negative connotation of the word âidolâ) or operational requirements, the format title was changed in several territories. For example Idols is known as Deutschland sucht den Superstar (in Germany), Nouvelle Star (in France), Turkstar (in Turkey) or Superstar KZ (in Kazakhstan). In other countries, the company has tried to maintain a consistent brand name as seen in examples such as Pop Idol (in the UK), Australian Idol, Indian Idol, Malaysian Idol or Ădolos (in Brazil and Portugal). The naming of local Idols adaptations will also be discussed in the next chapter, which deals with official Idols websites. With a wide demographic target market (age 14 to 49), the Idols format is usually scheduled in prime time evening slots by broadcasters worldwide, as this is most suitable for reaching a young audience which is attractive to advertisers. The Idols format has also been licensed into ancillary products and merchandising such as interactive games, T-shirts, an Idols car, Idols perfume and so on.
To keep the Idols brand fresh in the audienceâs minds (thereby keeping it popular with advertisers), continuous research and detailed analysis takes place. The format owners have a research and statistics department which gathers television ratings and other data from various research and statistics companies around the world, such as AC Nielsen in the US, BARB in the UK and Eurodata in the rest of Europe. This is then analysed in-house to inform the companyâs management information system as well as make programming changes to the format. For example, in 2010, American Idol was scheduled consecutively on Tuesdays and Wednesdays on Fox to compete head to head against another very popular format, ABCâs Dancing with the Stars. Research showed that moving the Idols format in 2011 to consecutive Wednesdays and Thursdays would help it to achieve a larger audience viewing figure (Rosenthal, 16 January 2011).
Idols has also been subjected to audience research using focus groups to make sure, as the series progresses from year to year, that its product proposition remains relevant for audiences. As Idols is in its ninth or tenth series in some territories, ongoing audience research has thrown up issues on the choice of contestants, the showâs judges, the structure of the show, audition methods and so on:
When Idols was launched in 2001, it had a very distinct pattern of viewers. The auditions phase used to give us an upward curve of the viewers but during the group stage when the contestants are cut down to the final 12, the viewers will tune out for some reason. But during the final live stage, the viewers went up again. So, it was a U-shaped curve and we discovered that this was the same pattern in all countries. We made the middle section more compact and dynamic so that we didnât lose so much of the audience in between. (Research Manager, FremantleMedia 2009)
Hence, as a result of talking to their viewers, the producers are able to keep the format constantly moving. This also helps to dissuade potential imitation attempts.
Copycatting â Legal and Commercial Dimensions
Format imitation (or copycatting, as the industry prefers to call it) has emerged as a by-product of the growing international trade in formats. As there are relatively low barriers to the dissemination of information in the digital world, imitators routinely scan the international TV scene for format solutions which they can recreate without paying any licence fee. Copycats change elements of the original format, and localize it without the involvement of the originator. This, according to the original producer, is theft of their format rights â treated by the originator as âintellectual propertyâ â leading to accusations of format plagiarism or format copycatting. However, there are no specific laws anywhere in the world which govern formats as intellectual property rights:
The format industry is not necessarily reliant on legal protection. It certainly helps that there is a degree of perceived legal protection but the industry at large is aware of how dubious that legal protection is. (Senior Manager, FremantleMedia 2009)
In the last few years, in three of the biggest and most sophisticated television markets â the USA, Germany and the UK â there have been well-reported accusations of unauthorized format imitation (or copycatting), and some of these have made it to a court of law. Apart from UKâs Pop Idol and its successor The X Factor, examples include RDFâs Wife Swap and similar shows in both the USA (Trading Spouses) and Germany (Frauentausch). None of these involved any potentially suspect production houses looking for a quick dip in format success; all were highly respected large TV organizations.
In the landmark case of Green v the Broadcasting Corporation of New Zealand, the British television author and presenter Hughie Green had objected to the unauthorized imitation of his talent show Opportunity Knocks, broadcast under the same title by the Broadcasting Corporation of New Zealand (BCNZ) from 1975 to 1978. Green claimed copyrights to the âscript and dramatic formatâ of the show, broadcast in England between 1956 and 1978. As a âformatâ, âstructureâ or âpackageâ, Green cited the title, the use of certain catch phrases, the use of a âclapometerâ to measure audience reaction and the use of sponsors to introduce competitors. However, the Court of Appeal of New Zealand (Green v Broadcasting Corporation of New Zealand 1988) ruled that the ever changing format elements lacked the certainty and unity of a dramatic work. The case was appealed to the Privy Council in the UK which held that a dramatic work must have sufficient unity to be capable of performance. Green was unable to show that the elements of his format were more than accessories to different dramatic performances and, as a whole, not protectable under copyright law (Green v Broadcasting Corporation of New Zealand 1989).
In another UK case, Norowzian v Arks (2000), advertising agency Arks Ltd. had used a innovatively edited jerky dance routine for a Guinness commercial which was inspired by the short film Joy, directed by Mr Norowzian. The Court of Appeal for England and Wales held that no single frame was directly copied. Editing and post-production techniques creating a âlook and feelâ did not amount to an original work itself. Following the lead of these decisions, most jurisdictions sided, in effect, with the view that restrictions on the use of new entertainment techniques might stifle innovation.2
In other words, if private parties were allowed to ring-fence patterns and general elements of making programmes, the public domain of material from which to create new works will shrink. As a consequence of legal rulings that permit imitation of programme ideas in principle, one should have expected a decrease in the market for international television formats. âIf no such rights exist, then the commercial rate for the format, at least from a legal point of view, is zeroâ (McInerney and Rose, 2 March 1999).
Although the format industry does not have access to any specific format protection right under intellectual property (IP) law anywhere in the world, it does use the signalling, stance and rhetoric of IP protection whenever it is required to justify protection of its intangible assets. At the same time, lobbying associations no longer aggressively seek statutory protection for format rights. For example, during the consultations for the Gowers Review of Intellectual Property in the UK, one of the largest format makers in the UK â the BBC â advised against the use of sui generis legal remedies to protect a format from being copied. The BBCâs response states that current laws provide âadequate protectionâ and that âa more prescriptive approach will create difficultiesâ (Gowers 2006). Our preliminary investigation through tracking of reported disputes in trade journals and interviews with format industry managers at international television media trade fairs suggests that the legal uncertainty has led to the development of market-based protection strategies to provide an environment of stability where formats can be traded internationally.
Methodology
A case study design was used to develop theory at the linkages between the disciplines of law, marketing and media economics which all appeared to offer different answers to the paradoxical observation motivating this research, that in the absence of protection under intellectual property laws the commercial rate for the TV format will be zero. This case study was conducted as the third phase of a more complex research design.
The first phase (which is not reported here) created a database of 59 format disputes between 1987 and 2007 (for an overview see http://tvformats.bournemouth.ac.uk). As a result of an analysis of these disputes and decisions, and after reviewing the literature offering possible explanations of increasing trade despite a low protection regime, 32 interviews were conducted in the second phase of the research with media sellers and buyers at three international television trade fairs (Discop East Budapest in June 2008, Asia Television Forum Singapore in December 2008 and NATPE Las Vegas in January 2009). These trade fairs, typically lasting for three or four days, occur once a year and are locations where format distributors and buyers converge from all over the world to interact and transact; hence these were ideal locations to find a large number of respondents under one roof. Although the interviews were conducted using a protocol, the interviewees were able to raise additional or complementary issues that eventually formed part of the studyâs findings. These were then transcribed and analysed using a coding technique drawn from the Grounded Theory approach (Strauss and Corbin 1998). In a first iteration of open coding, exploratory responses which did not correspond to the propositions underpinning the interview protocol were included. Thereafter, axial coding provided an opportunity for the data to be matched with the pattern of strategies assumed in the interview protocol. This was repeated for the open codes which had emerged at a la...