For FX, challenge is honing the edge

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For FX, challenge is honing the edge
By Kevin Downey
Mar 20, 2008 - 8:49:13 AM

With cable upfront presentations kicking off this month, Media Life will carry a series of network profiles with information important to media buyers and planners heading into negotiations. This is the second in the series.

Years ago, if you talked about appointment viewing, you were talking about network TV, but that's been changing as cable networks roll out more and more original series of their own that people set aside time to watch each week. Leading that change has been FX, which arguably has as many or more appointment-viewing shows as any other cable network.

With “The Shield,” which begins its final season in September, and “Nip/Tuck,” plus movies like “Batman Begins,” FX in only a few years has gone from a nondescript network to becoming the closest thing to HBO on basic cable.

“They have some great, great cutting-edge, gritty shows that have become appointment viewing for millions of people,” says Brad Adgate, senior vice president and corporate research director at Horizon Media.

That makes the network a top choice for advertisers in the upcoming upfront market, where ad time is auctioned off for the coming year.

Another big plus: The diversity of that programming makes FX a top-five network in virtually every demographic advertisers care about, putting it on par with broadcast TV in another important regard.

Going forward, FX faces two challenges, and one is where to grow next as it takes on the very largest cable networks, TNT, TBS and USA.

The answer there is feature films, as media buyers will learn in upfront meetings over the next few months.

“Our big focus is on movies,” says Bruce Lefkowitz, executive vice president of ad sales at FX. “Frankly, people know our originals. Now it’s about focusing on our movies and the performance of our movies.”

The other challenge facing FX may prove thornier. The network must deal with the failure of many of its newer series to perform up to the level of "The Shield” and “Nip/Tuck." FX will debut one new drama this September but it's also bringing back three of its newer dramas, “Damages,” the Glenn Close series, "The Riches," and "Dirt," and none has fulfilled their critical promise in the ratings.

What makes it such a thorny challenge is that FX can't air just any new series. It has to be edgy, pushing the limits, and it also has to be a substantial drama. There just aren't that many scripts that meet those high standards. In a sense, being like HBO, FX shares HBO's programming challenge--one that has hobbled the pay network for several years.

The network’s identity
FX’s tagline for advertisers is “There is No Box,” meaning it’s not confined to any demographic group or any particular genre.

That’s to say it's an edgy network airing original series and movies that you’d sooner find on pay TV than on cable or broadcast TV.

“The whole strategy of originals, which goes back to ‘The Shield,’ is to bring people in by providing fare they can’t get anywhere else,” says Lefkowitz.

The network’s target audience
FX’s target is adults 18-49, but its originals zero in on a variety of demographics. It targets men with the firefighter drama “Rescue Me,” women with “Damages,” and younger adults with the comedy “It’s Always Sunny in Philadelphia.”

The network’s ratings
FX ranks among the top five cable networks in the 18-34, 18-49 and 25-54 demographics.

Its average primetime audience in February was 1.5 million viewers, up 26 percent from February 2007. Among 18-49s, FX ranked No. 4 behind USA, TBS and TNT with 875,000 viewers, up 28 percent.

The network’s competitive set
FX’s primary competitors are ad-supported networks with big audiences, including USA, TBS and TNT. It has a wide demographic reach, however, so some of its shows compete with programs on smaller networks like Spike TV.

What’s new for 2008/2009
“The Shield” will soon be gone but several originals are returning, including “Sunny,” “Damages,” “Nip/Tuck” and “Rescue Me.” No word yet on “The Riches,” which had its second season premiere on Tuesday, or “Dirt,” now also in its second season.

Box office hits such as “Batman Begins” have pulled big ratings for the network, and it’s planning on beefing up its ratings with more top-tier films.

The network’s upfront outlook
On a scale of 1 to 5, with 5 being excellent: 3.5.

FX’s appeal to advertisers is its big ratings and broad demographic reach, notably with edgy programs that build loyalty among viewers. It's among the strongest brands on cable.

But the network faces a real challenge in keeping itself fresh with yet more edgy shows that draw viewers, as the “The Shield” has done, without going so edgy and dark that advertisers shy away.

A LOOK AT FX Launched in 1994
Parent Company	News Corp.
No. of subscribers	95 million
Median viewer age	37 years old
Average primetime viewers	1,499,000
Average total-day viewers	802,000
Avg. primetime 18-49 viewers	875,000
Avg. total-day 18-49 viewers	490,000
Target audience	Adults 18-49
Main competitors	Competitors include big networks like TNT, TBS, USA but also Discovery, Comedy Central and A&E.
Upfront presentation	Individual meetings with agencies
Source: Nielsen Media Research, Feb. 2008

Links to past upfront stories:

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