Tom Toumazis and Cathy Payne, Endemol Worldwide Distribution

When the circus rolls into Cannes this Mipcom, production giant Endemol will showcase some of the biggest attractions in town - not least US comedian Jerry Seinfeld - under a new banner: Endemol Worldwide Distribution (see box below).

The ringmasters in this particular big top are Endemol Group’s chief commercial officer Tom Toumazis and EWD chief executive Cathy Payne.

Both are seasoned veterans of the international TV market. Toumazis joined Endemol in August 2008 from Disney; Payne previously ran leading Australian distributor Southern Star International, acquired by Endemol in January, and has relocated to London.

As they were gearing up for what is anticipated to be one of Endemol’s busiest markets to date, Broadcast met the duo to discuss the new venture, the importance of the US in its future strategy and how the recession has hit the global distribution business.

Why was the decision made to create Endemol Worldwide Distribution?
Tom Toumazis There was a feeling by [Endemol Group chief executive officer] Ynon Kreiz that we should start to focus in other areas and distribution was one of the first that he mentioned. He brought me in to focus on a plan and it was not long afterwards that we acquired 100% of Southern Star, transforming our distribution business.

We felt there was a really exciting opportunity to get into this space and when you bring those two distribution businesses together, you can put a proposition to third-party producers and IP owners with something that can be leading in the marketplace.

How long has it been in the planning?
Cathy Payne We started planning it in January when the merger was announced. I had prepared the people at Southern Star that it was likely that something would happen, as it’s a huge job to integrate 20,000 hours of programming and two cultures.

So far it’s gone extremely well, but it has not been easy. People have moved countries and have had to get to know a lot of new programming, but we are ready to go at Mipcom.

What are your ambitions for Endemol Worldwide Distribution?
TT We believe that with Cathy and the team, we can put together a very meaningful business over the next five years. We have a vision to create a successful, large distribution business that builds on what Cathy has created.

One of the areas we want to extend into is scripted entertainment and particularly the US market in scripted entertainment. Working with Jerry Seinfeld on The Marriage Ref is the first example of that. We’ve never done anything of that scale.

In terms of acquisitions, what is EWD looking for?
CP North American product is a big focus - scripted drama for tweens and adults. Network drama will be hard to secure because of the way it’s financed with the studios. But cable shows are something we’re looking at, as well as broad audience action product.

What about UK drama?
CP It would be good to pick up some strong drama from the UK but this is not a year when a lot of drama is being ordered. It’s tough if you’re an independent drama producer at the moment.

What are you not looking for?
CP Theatrical movies. We focus more on series as opposed to one-off TV movies. We also don’t really do arts programming or specific niche genres.

The ideal factual programme for us would be something that could play on both free-to-air and cable. Something like Extreme Makeover: Home Edition, Meerkat Manor or Wipeout, for example. They serve a number of audiences but could also play on a thematic channel.

Tom, you recently spent a month in Los Angeles. What did you go out there to achieve?
TT It’s important for Endemol to tap into the US market. EWD is looking at opportunities to work with US creators and production companies. My time was spent talking to talent agents, production companies and IP creators/holders about the production capabilities of Endemol and how we can become a long-term partner. The reaction was very positive. I suspect either Ynon or I will be in the US every month. We see a lot of potential there.

Moving into third-party distribution, who do you now class as competition?
TT My sense is that we’re competing with everyone, including the Hollywood studios. As we want to get into the scripted entertainment business, I’m not narrowing it down to just non-US distribution and production companies.

CP When you look at some of the current players, we’re very strong in areas that they are not. Taking Fremantle Media as an example - it’s not big in drama. Our drama business, in terms of what comes from Southern Star, is bigger. But we’re also competing with independents that can pick up one or two shows as a result of established relationships. We are competing with everyone.

How is EWD coping with the global economic downturn?
TT Broadcasters want to stick to the shows that they know are reliable and have delivered time and time again. The great thing about our business is that we’ve been around a long time and have a great track record with strong franchises.

Another strong component of Endemol - and I’ve seen the difference from where I was previously - is to have local relationships in each country. Global companies that prescribe a product around the world sometimes find it hard to react to different economic conditions. Endemol will never lose that ability to really shine a light on a market-by-market basis.

How is the distribution sector changing?
CP Over the last few years, distribution has become more about the big or the boutique. There has been a lot of consolidation in distribution because there is a business model to having a centralised service function.

But where people have struggled is that you have to have a combination of in-house production and third-party supply. If you look at some distributors without in-house production, they are finding it hard because you’re going out there competing for every show in the market.

How has Mipcom changed in recent years?
CP You don’t get too many timewasters at the stand. People are more businesslike. It’s not cheap to go down to Cannes so people are being more effective with their time.

TT There are fewer jollies and more work. It’s no less exciting, just a different way of working. It is expensive but we want to get as many people there as possible. If that means moving accommodation from the Croisette to a 10-minute bus ride away, that is what we’ll do in order to get extra people there. After all, the stand this year is going to be very busy.