For A&E, brand isn't the problem

For A&E, brand
isn't the problem

That's strong. The trick now is to reverse a slide.

By Elizabeth White

   For most cable networks, A&E’s position would be enviable.
   While many networks these days are busy building an identity, A&E is already a top 10 network with a well-established brand name closely associated with an educated, affluent audience.
   The problem is, A&E has watched that audience decline recently as imitations and spinoff networks have entered the marketplace, each looking for a piece of the same affluent audience pie.
      During the first quarter of 2001, A&E's household rating declined by seven percent in primetime and by 10 percent in total day compared to the first quarter of 2000. Among adults 18-49, A&E slipped by 13 percent in primetime and 14 percent in total day. Among adults 25-54, A&E slipped by 11 and 10 percent.
   "This is an example of where cable is starting to fragment itself," says Don Cole, director of media at Fletcher, Martin, and Ewing. "[A&E’s] competitors are The History Channel, TLC, and Lifetime. The niche players are starting to chip away at each other. It's a sign that the medium is maturing."
   What that means for A&E, aside from declining numbers, is that the network faces a problem unique among cable networks: how to attract a new, hopefully younger audience, without straying too much from its brand.
    "Some of their programming is aging," says Lyle Schwartz, senior vice president and director of media research at Media Edge. "They've hung their hat on three different genres: ‘Investigative Reports,’ ‘Biography’ and mysteries. Mysteries tend to skew older, and now they need to rejuvenate that genre."
   Other, well established cable networks have faced similar problems with fragmentation and aging audiences lately, but most have escaped A&E’s acute case of strong brand association.
   For example, CNN needs only to follow the news to stay within its brand, likewise for ESPN and the latest sporting events. TBS and USA are general interest networks that can reinvent themselves according to the times, whether wrestling or something else is popular. Lifetime is also arguably a general interest network, if for only half of the population.
   But for a network identified with British mystery shows, "Biography" and documentaries, creating new, younger-skewing programming within that brand poses a particularly difficult challenge.
   "A&E may always be somewhat hindered by their own standards," says Chris Geraci, director of national TV buying at OMD/BBDO. "They've got an awful lot of integrity when it comes to the quality of their subject matter and that may be a little limiting for their audience."
    Yet like the other networks, A&E still thinks the best way to rebuild their audience is to develop original series and movies.
    "We all talk a great deal about branding, and that's what hit shows do," says Allen Sabinson, senior vice president of programming at A&E. "That's ‘Biography,’ that's mystery, and that's what our dramatic series will do."
    "The fact that you enjoyed a theatrical on our network doesn't mean you'll tune in tomorrow night. The investment for the future is in documentaries and dramatic series," says Sabinson.
    To that end, A&E is debuting its second original drama series, "Nero Wolfe," later this month. The series is based on the mystery novels by Rex Stout, and each episode will follow the plot of one of the novels.
   A&E's first original series, "100 Centre Street," has already completed its 13 episode run for this season. The show was a moderate success, averaging 1.4 million viewers per episode, and the network has renewed it for next season.
   A&E anticipates a third drama series by the first-quarter of 2002.
   A&E hopes that this past January is a sign of things to come for the network. The month was easily the network’s best in the past quarter, as the network debuted both "The Great Gatsby" starring Mira Sorvino and Sydney Lumet’s "100 Centre Street."
   A&E averaged a 1.6 primetime household rating and a 1.0 total day household rating for January, 14 percent and 11 percent better than the network averaged over the quarter.
     "A&E has and wants to grow a large audience of 25-54, educated, upscale, viewers who we feel are underserved by other choices," says Sabinson. "We've moved away from British shows to American drama. We also know that there is an audience for mystery, and our job is to broaden it, make it more fun, and give it a younger appeal."

-Elizabeth White is a staff writer for Media Life.

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