Alon Shtruzman is an Israeli media executive and television producer. He is CEO of Keshet International, Keshet Media Group's global distribution and production arm. In a career spanning four decades Alon has had a front row seat in the transformation of the TV industry, working across various entertainment businesses, commissioning and producing some of the biggest shows of recent decades. He is based in Los Angeles.
WHY READ: Everyone thinks they know what makes a good TV show, but few people actually know HOW to make a good TV show. How to find the right talent, the right script, the right format and then package and sell that to the right media companies. And to consistently do it again and again in what is to some extent a hits-based business. Alon knows how to do this.
So, who better to ask to share some thoughts on what the future direction of the TV industry may look like as it grapples with streamers, digital advertising, increased competition, and a myriad other different challenges.
Tell us a bit about yourself?
Keshet International develop, sell and produce TV shows. We do all types – small, big, huge. At the moment we are producing the biggest TV show in the US – Echo 3 with Luke Evans (produced by Keshet Studios and based on Omri Givon’s When Heroes Fly for Keshet 12).
I started when I was a teenager, so I have a good view of the industry over the least four decades.
There used to be only public channels, and then cable came, and then VHS and DVDs and then VOD came, and then the streamers, it keeps changing. If there’s one thing you can predict, it’s change. It’s a constantly changing and evolving business – and that’s what keeps it interesting.
Are we really living in the ‘Golden Age’ of TV production as some claim?
The number of TV shows produced keeps growing, every year there’s more being produced in the US than ever before - 400 to 700 shows. A few dozen shows used to excite us! The industry has never been so big.
There are lots of opportunities for actors, writers, producers, and directors, but it doesn’t change the fundamental need to stand out. To be remembered; you really need to do something different. Shows need to be good to succeed!
From a commercial point of view, what does ‘good’ look like?
We are a commercial organisation, so our perspective is different from that of a producer. But if a show is good – as in audiences and buyers like it - it makes money. The audience has so many options, these days, you have to fight to win the audiences’ love. So, whatever you create you have to fight for it. But the best way to do that is to create something good.
But after you’ve got something good, then, as a volume business, you have to really optimise what you have, when you have it.
That could be either creating or selling more episodes or making more versions for different markets. For example, In Treatment – originally an Israeli show, has been made in 25 different languages.
We’ve seen many print publications faced with dwindling ad revenue pivot into new directions in recent years – ecommerce, events, subscriptions - will we see something similar in TV but the other way around?
What I can see happening now in the new TV ad ecosystem, is there are not enough places to run top quality TV advertising. The entire American primetime doesn’t amount to more than 10 per cent anymore.
TV traditionally creates those big tent moments, like the Superbowl. It used to be exciting to create those moments, even for shows like in the finale of Lost, or Seinfeld.
But nowadays you can’t do that, there’s no way for an ad to get involved, let alone become bigger than the event.
Digital doesn’t gain the momentum that TV can. Everything is shrinking.
As a studio, does it have any impact on your business?
From our perspective as a studio, we can see this holistic commercial interest. We tend to do pretty big American shows with big buyers, who are less interested in individual ads or ad formats. What’s more appealing for them is to add a line of merchandising based on the series. They want to take all the rights and build ancillary businesses on the back of that. Now it’s much more integrated – not just about advertising.
Almost every major streamer and media company is now involved in some ancillary businesses through licensing or so forth. Disney has always made more money doing this, than through their original content. Interestingly, and kind of quietly, Netflix recently launched a collaboration with Halston the brand to support the Halston show on Netflix. That shows the opportunities that could open up for Netflix in that area. Amazon Prime is basically a giant TV ad for the world’s biggest shop.
How do you feel about MGM becoming part of Amazon?
It’s a brilliant move, they know what they’re doing. They need more library. Disney’s launch was relatively easy – they own Pixar, Star Wars, Marvel. One of the ways to do it quickly is to buy a library. The content deals are so big. It makes sense for Amazon.
Do you feel like you’re making shows for streamers or traditional TV channels?
The market has gone through massive consolidation. The media groups are consolidating around the streamers. We still have NBC, Nat Geo, but at the end of the day Disney is now Disney+. Disney is totally centred around the streamer business. Subscribers for them are really growing and competing with Netflix – the only one that is.
Do you think these platforms will open to connected TV advertising?
There is so much paid-for-subscription services that there is increasingly nowhere for advertisers to advertise. So, the AVOD model is going to grow, because there are subscribers who can’t afford more SVOD payments. For many households, introducing ads is a bargain.
It’s happening already - and I think it’ll grow over the next few years, cannibalising the subscription streamers. Creating new business models.
2020 was a challenging year for studios and production, but now we are through it, how do you think your industry will adjust to the whole new WHF/life balance trend?
It’s amazing how much time you save when you don’t have to travel. I used to spend maybe 30 per cent of my life in transfer! I’d go to Beijing, spend maybe 3 days there but 2 days in transit. It was such a hassle!
In LA you can spend half a day just travelling to your meetings! So, you can save so much time! I have to say that I can’t see that going back to exactly how it was. This change would have happened anyhow, it just happened sooner.
If you were going to start up a new business today, what would you do?
Farming! To solve the supply chain. Obviously, we are going to face the whole issue of resources in the next few decades.
Thanks for reading.
Past Issues:
Issue 1:The Soup is Getting Cold with Martin Lindstrom, best-selling author, brand expert and TIME magazine’s one of the “world’s 100 most influential people.”
Issue 2: The Soup is Getting Cold with Nick Entwistle, the founder and Creative Director of The Bank of Creativity and One Minute Briefs, a social media phenomenon
Next Month: Sheree Atcheson, author, Demanding More: Why Diversity and Inclusion Don't Happen and What You Can Do About It
when during covid lockdown forced people to buy direct from farmers, it became clear that the term supply chain's days are numbered. become a farmer and you have your OWN supply chain. it may not make you rich, but it'll feed the hungry.