Showtime

 Showtime

Ownership and Conglomeration

Showtime is a subscription-based cable television network that is owned and operated by Showtime Networks, Inc (SNI). SNI was created in 1976, when Viacom, Inc. decided to create its own subscription-based cable television network in the mold of Home Box Office. Viacom was once a part of the CBS Corporation, but spun off in 1971 as a syndication company due to anti-trust concerns. Showtime began airing on a few cable systems in California in 1976, and was launched nationally in 1978. In 1983 in a joint venture between Viacom International, Warner Communications, and the American Express Company, SNI merged with The Movie Channel (TMC) to form Showtime/ The Movie Channel, Inc. The three companies owned 50 percent, 40.5 percent, and 9.5 percent respectively.SNI also purchased a small cable service called Spotlight for about $40 million dollars.There were talks between Viacom and a cable system operator called TCI, to sell half the firm for $225 million, but these negotiations ended when TCI began developing now rival services, Encore and Starz.

In 1990, the current CEO of Showtime, Matthew Blank was brought in to the company as president and chief operating officer of SNI. Tony Cox remained the CEO and chairman, though he left in 1995 during a restructuring of Showtime in which it became a subunit of Blockbuster Entertainment, a corporation Viacom had purchased recently.  In 1996, SNI and Robert Redford launched the Sundance Channel, feature independent and foreign films. This channel has since been bought out by ComCast. Showtime invested a few million dollars in the digital television recorder company TiVo Inc. and launched some digital channels, including a high-definition channel in the late 1990s. Showtime was one of the first companies to use HD television. By 1999, Showtime had improved significantly in its subscription totals, reaching 65% more subscribers than 5 years earlier.

Viacom merged with its old parent company CBS Corp. in 2000, acquiring all of its cable channels and production units under its own umbrella. Due to internal rivalries, and low profits, the company decided to spit in two in 2005. The old Viacom was renamed CBS Corp. and took ownership of Showtime along with CBS and UPN Broadcast networks, among other companies.

Partnerships with Other Companies

Film Rights

In 1983, SNI signed a 5 year $500 million deal that gave it exclusive rights to air movies produced by Paramount Pictures. SNI would later partner with MGM, in 1993, in an exclusive seven-year deal to broadcast up to 150 of its films. SNI also partnered with New Line, TriStar, Orion, and Castle Rock at this time.

Paramount's contract with Showtime ended in 2007, and in 2009 in was announced that three of Showtime's major film suppliers would be joining together to create new premium cable channel called Epix. These companies included Paramount Pictures, MGM, and Lions Gate Entertainment. Showtime has reponded by currently relying more on original programming and making deals with somewhat smaller film production companies such as with DreamWorks, Summit Entertainment, the Weinstein Co., Miramax, and CBS Films unit.

Time, Inc.

In 1989, Viacom sued Time Inc. the owner of HBO, alleging that Showtime had been kept out of the cable line up due to antitrust violations of the cable companies. A settlement was reached in 1992, that resulted in increased placement of SNI's offerings on Time's cable systems. In addition, SNI and HBO would work together on joint marketing campaigns. The first ad campaign with HBO launched in 1993. The companies spent unprecedented amounts of money on an effort to promote cable broadcasting using television, radio, and print ads.

Roles in Production/ Distribution/ Transmission

In 1992, Showtime created a new unit called the Showtime Entertainment Group which was in charge of producing approximately 20 original movies per year that the network could air on its channels. This company would also produce some of Showtime's original series. Some of these films were subsequently released to US theaters in order to gain in popularity after they had aired on the channel. After the company was bought under Blockbuster, more profits were made on these films through video sales.

Showtime generally does not send many of its show to other channels through syndication due to their often graphic, sexual, or violent nature. However, when this does happen such as The L Word on Logo or Dexter on CBS, the shows are often censored extensively.

Scheduling and Promotional Techniques

Showtime does its scheduling based on who will be watching. Showtime tends to run its new episodes of shows at night, when most people are home from work. Friday nights are generally filled with reruns and late night movies, while Sunday nights are full of new episodes for Showtime's top shows. 

Showtime also works with other companies to promote their channel. For example, Showtime and iTunes are working together and offering a $25 iTunes gift card when a customer subscribes to Showtime.

            www.sho.com/site/promotions/giftcard25/home.do

There is also a Showtime app for iPhones and iTouches which allows users to stay updated with Showtimes news and shows. 

            itunes.apple.com/us/app/showtime/id316082177

Advertising Techniques 

Showtime does not show advertisements on its network, but focuses on drawing critical acclaim and popular buzz to keep its original programming afloat. It has a variety of promotional strategies for the shows, such as marketing on the Kindle and iPad, as well as provocative billboards etc.

In 2006, Showtime launched Showtime Interactive, which was a website that allowed subscribers to watch hundreds of hours of programming and extra footage for $1.99 per show. Showtime also now offers its shows on the iTunes store. CEO Matthew Blank has stated that offering shows online is a way to advertise for the shows as well as to entice people to subscribe to the channel. Showtime had over a million streams of the premiere episode of "The Tudors" to promote it. Blank reports "those dollars [from iTunes] are not material enough that they are going to change our business. But what does change our business is that it continues to build a brand. And it gives people access to our service that aren't in our family right now."

Branding Strategies

Showtime has had several slogans since its start. Currently its slogan is TV. At Its Best. This slogan is part of Showtime's brand and identity along with its abbreviation, the capital SHO. Showtime is also known for the content of its shows. AdFreak says that "Showtime knows what you really want: porn, weed, and violent psychos." Its shows incorporate all these ideas as in Dexter, Californication, and Weeds, thus they are part of Showtime's brand.

Signature Programming and Genre Trends

          Showtime produces edgy original programming with the hopes of drawing critical acclaim and media hype.  Showtime's major competitor in this business model is HBO, another cable network.  In years past HBO has dominated the attention of fans and critics alike, but with the series finale of "The Sopranos" in 2007 Showtime took the opportunity to raise its reputation with the premiere of "Weeds." Since then, Showtime has produced many critically acclaimed shows and has a reputation for being a strong creative force in television.  Ira Glass, host and executive producer of Showtime's documentary "This American Life," says that executives at Showtime were "explicit in saying where they are in their business plan is that they were trying to change the way people perceive them...and the most important thing is that people know this is happening."  Since Showtime airs ad-free, it does not have to aim for certain demographics in order to please advertisers.  It does, however, air original programming with similar aspects in order to brand the channel.  Many of the shows revolve around complicated women surrounded with controversial issues.  These hot-button topics and high-profile actresses draw in audiences and then reveal the smart subtleties of the programming.  Kevin Nealon, an actor on "Weeds," explains fans fascination with the plot conflicts in Showtime programs: "People like to watch train wrecks...[Weeds] deals with real people and real situations, as dysfunctional as they are." 

Original Programming

"Weeds" is a show about a suburban widow who starts dealing pot to support her family.

"Dexter" is about man who works as a bloodstain pattern analyst for the police department and is secretly a serial killer.

"Nurse Jackie" is a dark comedy about a nurse who is addicted to drugs. 

"The Big C" stars a protagonist afflicted with cancer and determined to live her life to the fullest.

"The United States of Tara" is about a woman with multiple-personality-disorder who has several alter egos.  

Related Channels

Showtime offers a variety of alternate channels that each target a somewhat different audience:

Showtime is the mother channel that features original programming, as well as boxing and mixed martial arts.

Showtime 2 offers "catch-up marathons" of original series as well as sports and feature films.

Showcase features "the best of Showtime" with movies and special programming.

Showtime Extreme shows boxing, martial arts, action movies, thrillers, and gangster films.

ShoBeyond features sci-fi programming, fantasy, and horror movies.

ShoNext offers documentaries and musical programming.

Showomen shows women-celebratory pieces.

ShoFamilyZone has only viewing appropriate for the entire family.

Showtime HD is Showtime programming in high definition.

Showtime 2 HD

Showtime On Demand offers "Convenience, Control, and Freedom" in viewing experiences.

Showtime PPV is a pay-per-view sports channel.

The Movie Channel features indie and classic films.

The Movie Channel HD offers movies in high definition.

The Movie Channel Xtra shows movies and movie extras.

The Movie Channel On Demand shows movies at viewers' choice.

FLIX features "Cool Classics for the Movie Generation"

FLIX On Demand offers DVD-like watching experiences.

Smithsonian Network is partnered with the Smithsonian Institution and features historical, scientific, and cultural programming.