Dramatically increased costs and concerns about organization have put NATPE on probation with Telefilm Canada, casting a shadow across the upcoming TV market, set for Jan. 25-27 at the Mandalay Bay Hotel & Convention Center in Las Vegas.

‘We have to re-evaluate the opportunity after 2005 and see what we do in 2006,’ says Lise Corriveau, director of festivals and markets for Telefilm and the usually upbeat hostess of the Canada Pavilion.

Corriveau says she’s not ready to throw in the NATPE towel yet, but she’s disappointed that some of the gains made by the ailing market in 2004 – at which she says Canadians did good business – seem not to be carrying momentum in 2005.

‘Companies are still questioning the value [of NATPE]’ relative to other television markets, she says. ‘We’re a bit anxious. It disappoints me.’ Telefilm surveys participants after NATPE to assess the success of the event for Canadian companies.

Corriveau says the cost of rent alone for the 3,000-square-foot Telefilm exhibit this year has increased nearly 44% (or $35,000) over 2004, and that doesn’t include other operating costs and service costs of being on the exhibition floor.

The extra expense has flowed through to Canada Pavilion participants, she adds, which has contributed to a 33% decline in the number of Canadian companies using the pavilion as home base in 2004. Only 26 Canadian companies are with the Canada Pavilion this year, compared to 39 last year and the historic high of 52 in 2003.

Dealing with the NATPE organization has also been a trial this year, suggests Corriveau, with difficulties in getting accurate lists of delegates in time to book meetings in advance of the event.

About 84 Canadian companies – including those with their own booths and those only with delegates walking the floor or those hosting hospitality suites – are on tap for the 2005 NATPE, on par with other years.

The criticism comes as a surprise to Rick Feldman, sophomore president and CEO of NATPE.

‘We have a great relationship with the Canadians,’ he says. ‘The Canadians have had a favorable rate for a long time. The increase this year gets close to the reality of 2005, but the rates are still way below the average of competitive shows [like MIP-TV].’ Renting space at NATPE costs roughly $31 per square foot, compared to $227 at MIP-TV.

Keeping rates low is what got NATPE into financial trouble, he explains, suggesting that the new costs are part of the new business reality for the market.

As for organizational problems, Feldman is unaware of any concerns and would not comment. Registered delegates have had access to attendance lists for months, he says.

According to Feldman, the trends that saw NATPE rebound somewhat in 2004 continue in 2005.

‘Yes, the trend is continuing with greater participation from buyers and sellers,’ he explains.

There were 7,000 attendees at the 2004 NATPE and, while Feldman is not keen on putting an estimate for 2005, attendance may rise 10% to 15% this year.

Vancouver’s Studio B Productions used to go to NATPE under the Canada Pavilion, but this year is just sending partner Chris Bartleman as an independent delegate.

‘[NATPE] seems to be getting smaller,’ he says. ‘The business done there doesn’t justify the expense. I’m going more for maintenance than anything. It’s an event you need to go to and I have some meetings, but I’m not going with any agenda.’

He adds: ‘NATPE’s evolved into its own thing. In certain international business, it’s not happening anymore. It’s much more a niche market. It’s big if you are into South America.’

In the challenging years – 2000 to 2003 – there was a confluence of negative factors – the declining U.S. economy, 9/11, SARS and industry consolidation. In the last couple of years, portfolios are healthier, consolidation of the industry has slowed, executives are traveling and the business is changing yet again.

‘There are more opportunities to create and monetize content,’ explains Feldman, pointing to the platforms beyond the traditional tube to HDTV, DVD, cell phones and the Web.

‘It’s an exciting time, but a difficult time,’ he adds, referring to the changing distribution. ‘We’re not seeing the same revenues [from the new platforms] as the normal syndication business in the ’90s. But a lot has yet to play out.’

NATPE’s rivalry with MIP continues, with Feldman suggesting that NATPE is more of an information exchange than a product exchange. That said, NATPE offers a greater market of U.S.-based representatives and companies, sees a greater proportion of Pacific Rim and Latin American delegates and burgeoning companies looking for entry into the lucrative U.S. market, he explains.

Of NATPE’s recent renaissance, Feldman says it’s clear that the U.S. industry has rallied.

This explains, in part, the return to the floor of the majors. In 2005, Paramount Domestic Television, Sony Pictures Television International and Warner Bros. International Television have joined the exhibitors on the floor. Also returning to the exhibition floor this year are the domestic and international operations of Metro Goldwyn Mayer Studios and Carsey-Werner.

Among those attending NATPE, 15% to 20% of companies prefer the business-by-appointment style and will continue to operate out of hospitality suites, says Feldman.

NATPE will host a variety of panel discussions addressing a range of issues, from the maturing of cable networks to the future of free over-the-air programming, from mobile enhancements of television packaging to U.S. product in the global market, and from advice on how to succeed as an independent producer to the ‘reality’ of reality television.

Panelists include Kevin Beggs, president, Lions Gate Entertainment; Bill Cella, chairman, Magna Global U.S.; Michael J. Copps, FCC commissioner; Mark Cuban, cofounder/chairman, HDNet, and others.

– www.natpe.org