Can Once-Successful MTM Come Back From the Brink?

Can one of the most popular franchises in television history regain its former glory? MTM Entertainment is about to find out.

Once a successful producer of such beloved programs as “The Mary Tyler Moore Show,” “Hill Steet Blues” and “Lou Grant,” MTM was in a sorry state when the 1990s rolled around. The Studio City firm was on the brink of bankruptcy, and its production machine had foundered.

Then, in 1993, MTM was acquired by International Family Entertainment, the cable television concern controlled by evangelist Pat Robertson. It appeared to be a divine union. MTM got access to IFE’s cash; IFE captured a steady source of programs for its Family Channel cable network.

But for the next two years, MTM continued to drift and the hoped-for cooperation between the Hollywood production company and its Virginia Beach, Va., parent didn’t come to pass.

Now with a new chief executive and its busiest production slate in more than a decade, MTM believes it is at last on the cusp of a turnaround.

“MTM is a company that’s back in business,” declared Tony Thomopoulos, who joined MTM as chief executive in April 1995. “We’re going to succeed.”

Yet Thomopoulos faces an uphill battle. With the recent elimination of regulatory barriers that prevented networks from owning programming suppliers, many industry sources see production firms that aren’t aligned with a major network or studio being increasingly shut out.

This new world order in television gives networks the ability to extract more favorable deals from outside suppliers. Indeed, MTM’s most promising new show, the hour-long drama “The Pretender,” is co-produced by NBC, allowing the network to share in any future profits it generates.

Some independent production companies have managed to stay in the game. Carsey Werner International is probably the most successful example, with shows such as “Roseanne,” “The Cosby Show” and “3rd Rock From the Sun.”

And other production firms have come back from the brink.

Aaron Spelling Entertainment hit a low point when “Dynasty” was canceled in 1989. “We had no shows on the air, we were counted out, we were history,” recalled Spelling Co-Chairman E. Duke Vincent. Then the company roared back with its twin Fox-TV hits, “Beverly Hills 90210” and “Melrose Place,” and in 1994 media behemoth Viacom Inc. acquired a controlling interest in Spelling.

Although the market is difficult, there also are new opportunities, with two new broadcast networks, WB and UPN, and growing cable and syndication markets, Vincent said.

MTM is off to an encouraging start with “The Pretender,” about a genius on the lam from an evil organization.

In its first showing at its Saturday 9 p.m. time slot, “The Pretender” was rated second after CBS’ “Early Edition.” But even runner-up status is a big gain from last year, when NBC was in last place among the four major networks on Saturday nights.

More important, said David Nevins, NBC’s senior vice president of prime-time series, is that “The Pretender” placed first among 18-to-49-year-olds, the demographic coveted by advertisers.

MTM’s prospects for its other new series are mixed. “The Cape,” an astronaut saga starring Corbin Bernsen, made a respectable debut in first-run syndication. Its Saturday morning live-action children’s show, “Bailey Kipper’s P.O.V.” on CBS, has done so-so in the ratings.

But its new UPN sitcom, “Sparks, Sparks and Sparks,” appears headed for an early death. On its third showing, it ranked 102 out of 104 network shows that week.

If the company succeeds, credit will go to Thomopoulos, whose resume includes stints as chairman of United Artists Pictures, programming chief at ABC-TV, and president of Amblin Television. He also now oversees programming for the Family Channel.

Thomopoulos and his hand-picked president, former CBS executive Michael Ogiens, replaced the earlier MTM regime headed by former president, William C. Allen.

Thomopoulos inherited a production entity that was largely dormant. One exception was “Christy,” a widely praised drama series that bounced around CBS’ schedule for about a year before disappearing in 1995.

Recently, syndication sales of old shows such as “St. Elsewhere” have helped keep MTM alive. For all of 1995, MTM had operating income of $1.74 million, contrasted with an operating loss of $606,000 in 1994, while its revenue jumped 27%, to $82.4 million from $65.1 million.

Many of MTM’s old shows are licensed to Viacom for the Nickelodeon cable network. Those shows will begin cycling back to MTM in two years, after which MTM can license them out again or run them on the Family Channel.

Thomopoulos said he expects an increase in MTM’s operating profit this year, and he’s covered himself to a certain extent with aggressive foreign sales.

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Still, MTM is a long way from its heyday in the 1970s and ‘80s. Founded by actress Mary Tyler Moore, her then-husband Grant Tinker and others, MTM at one time had five network shows on the air.

Disaster struck in 1988, when British broadcaster TVS Entertainment acquired MTM in a debt-heavy, $320-million transaction. Five years later, loss-plagued TVS sold out to IFE for $94 million.

Now, MTM’s test will be if it can produce a popular show that runs for years. A string of bombs would be devastating, because early cancellation destroys any hope of recouping the considerable investment required to launch TV shows.

Despite the risks, Tim Robertson--who runs IFE while his father, the company’s chairman, devotes his time to the “700 Club” religious show that airs on the Family Channel--is obviously pleased with MTM’s direction.

Robertson cited MTM’s growing role as a program supplier for the Family Channel as evidence that the production company is back on track. MTM is now the Family Channel’s biggest producer of original shows.

Thomopoulos, who has met the elder Robertson just three times, said there’s been “not even a hint of a religious or political agenda” from his bosses. They share the common goal of producing “positive value programming,” he said.

Both Thomopoulos and Tim Robertson seem aware that restricting MTM to G-rated family fare could hurt them competitively. Ultimately, Thomopoulos said, some shows that MTM produces might be unsuitable for reruns on the Family Channel.

MTM now provides four hours a day of regularly scheduled programming for the Family Channel, including the “Home and Family Show,” co-hosted by Thomopoulos’ wife, Cristina Ferrare, and game shows, plus specials and TV movies such as the upcoming “Apollo 11.”

Robertson downplayed recent reports that IFE has discussed a possible merger or other alliance with several media giants, saying IFE is well-positioned to remain independent. “The whole reason we bought MTM is so we could create our own programming,” he said. The returns on original movies run on the Family Channel “are more valuable than any reruns of off-network product.”

But if IFE goes it alone, the pressure on MTM to deliver will be great. Producers that lack easy access to the networks succeed only through the sheer creative drive of their leaders, said one television producer.

“That’s the challenge for MTM. The only ones that have a shot are those that have a clear creative signature.”