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Ovation's growth may be worthy of applause

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The independent channel focusing on arts and culture has gone from being available in 5 million homes in 2007 to about 42 million now. It's determined to prove that such high-toned fare has a future on TV.

August 24, 2010|Meg James, Los Angeles Times

Television may be a vast wasteland, but for the last four years a group of investors has been working to establish an oasis for Ovation, an independent channel devoted to art and contemporary culture.

It's not easy being a little guy in a land of media giants, lacking leverage and deep pockets. But the Santa Monica-based Ovation has notched impressive gains and is attempting to prove that an arts channel can thrive on TV.

Available in only 5 million homes in 2007, the channel now can be seen in about 42 million homes, or nearly half of all cable and satellite households in the country. Ovation also has bolstered its roster of advertisers — including such marquee companies as Chase Bank, Wal-Mart, Acura and Subaru — and this year the channel swung into the black.

"We are here to build a profitable arts channel. It can be done," said Charles Segars, a longtime television programmer who is chief executive of Ovation. "The arts have never failed in America, and a whole new generation of artists is formed every day."

Most cable channels long ago consolidated into the hands of the major players. Only a few independents remain, including the Hallmark Channel, Current TV, the Tennis Channel, the Gospel Music Channel, the Africa Channel and ReelzChannel, owned by Hubbard Media Group, a family firm that was an early investor in DirecTV and is the controlling shareholder of Ovation.

"The track record of true independents has not been very good," said Ken Solomon, chairman of Ovation, an investor and an architect of the 2006 acquisition of the channel by its current owners for about $55 million. "There are carcasses lining the side of the road to success. We know that distributors — and advertisers — have to see the value of our programming."

In the early days of cable there were ambitious attempts to create a window into fine arts — symphony, ballet and opera — with the now-defunct Alpha Repertory Television Service and the CBS Cable channel. Next came Arts & Entertainment and Bravo, two networks that eventually abandoned their high-toned missions to chase a broader audience with shows featuring tacky housewives, a bounty hunter named Dog and Gene Simmons, the fire-exhaling rocker in KISS.

Cable operators were initially skeptical that Ovation could remain true to its mission, Solomon said. "There has been a history of leveraging this notion of servicing the creative arts community, only to have companies radically diversify away from their original concept," he said. "It took a lot of hard work and assurances, both morally and contractually, that we really do believe in this category and that we are in it for the long term."

Persuading cable operators to carry Ovation has been a challenge. Although the channel is carried by Time Warner Cable, DirecTV and the nation's largest cable company, Comcast Corp., several major providers have not signed on, including Cox Communications, which serves Orange County and San Diego.

One problem is that, because it's a stand-alone channel, Ovation doesn't have the clout to pressure cable operators to add it to their programming lineups. So it has relied on a straightforward pitch: Ovation's more thoughtful programming is a distinct alternative to the cookie-cutter channels offering movies, sports and reality shows.

"That's our advantage," said Segars, who also is an investor. "This is an audience that has been underserved."

Bowing to the realities of television in an effort to cast a wider net for viewers, however, Ovation applies a more expansive definition to the term "art." Instead of a strict diet of operas, symphonies and ballet, the channel also shows art-house films and explores photography, architecture and visual arts. It produces several original series, including "Faces of a Vanishing World," which focuses on a 19-year-old photographer who travels to Ethiopia. The channel runs documentaries, including "The Mona Lisa Curse" and "China Power: Art Now After Mao," as well as concerts and retrospectives.

If Ovation prospers, it could force a shift in the economics of television. The big profits have long come from entertaining the masses. That's why Bravo, owned by NBC Universal, ditched its art fare in favor of the likes of "The Real Housewives of New Jersey."

But now, hundreds of channels chase the same viewers. The "long tail" theory suggests that a greater number of people could be better served through dozens of niche services, such as Ovation, that provide specialized programming.

Andy Klein, president of the cable TV division of Beta Research Corp., said his group's work corroborates that view. "We have found in our surveys that some of the smaller networks, those that are not well known, often generate significant interest," Klein said. "And in many cases they have higher levels of viewer satisfaction."

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