Discovery Channel guards its turf

The Discovery Channel normally focuses on science and nature programming, but lately the cable empire appears to be borrowing a page from ESPN, teaching producers and a fledgling competitor a few things about playing hardball.

Under a recently implemented policy, the Bethesda, Md., company is moving to effectively block productions it buys from appearing on the National Geographic Channel, a similarly themed cable enterprise launched last year.

Industry sources say Discovery’s action is an attempt to protect its turf against a new competitor with a strong brand name, as established cable channels face the challenge of having their audience siphoned away by the similarly themed competitors sprouting up to fill expanded capacity on satellite and digital cable services.

Caught in the middle, meanwhile, are documentary producers, who object to Discovery’s approach but say they dare not risk alienating a company that operates nearly a dozen channels -- among them TLC and Animal Planet -- because it is such a major buyer of programs in their genre.

Discovery, which licenses programs from producers for up to seven years, has revised contracts to say that such productions cannot be sold to National Geographic, in any of the international territories where it operates, for at least five years once a deal with Discovery is reached.

The provision significantly expands Discovery’s control over suppliers.

In effect, the mandate seeks to deprive National Geographic of access anywhere in the world to programs Discovery acquires, while cutting off producers from a logical venue to sell their shows.

“They’re saying, ‘Take it or leave it,’ ” said one producer, who asked not to be identified.

A Discovery spokesman said the provision is nothing more than “a prudent business decision. We do not believe that our financing of program development should underwrite those of our competitors.”

Discovery officials also said that National Geographic has its own safeguards in place, among them denying producers the right to use footage from National Geographic’s library in documentaries assembled for Discovery. They stressed, however, that the channel’s stance was not retaliatory but stemmed from legitimate competitive concerns.

Discovery has a significant head start on National Geographic, which reaches 36 million homes, less than half the number that receive Discovery’s flagship channels.

Still, the newer channel -- a joint venture between the venerable magazine and Fox parent News Corp. -- has commitments that will put it in more than 55 million homes during the next few years.

Andrew Wilk, executive vice president of programming, production and news for National Geographic Channel, said the network was “flattered but concerned” to be singled out in this manner.

“This is bad for the production community,” he said. “The real negative impact is to the independent producers out there. We don’t think producers should be taken hostage in the competitive battle between networks.... It’s very unfortunate.”

John Agoglia, an entertainment industry consultant who for years oversaw business affairs at NBC, agreed, saying that Discovery’s policy creates a problem for producers because the network’s fee seldom covers all production expenses.

“It’s unusual, and it further restricts the supplier from recouping his costs,” Agoglia said. “They have a limited list of buyers in the first place.”

Producers said that Discovery has sought to impose onerous terms upon them in the past, including a proposal this year to remove on-screen credits from programs. After criticism from various quarters -- including documentary filmmakers and the Academy of Television Arts & Sciences, which presents the Emmy Awards -- Discovery made the elimination of credits optional.

Agoglia, who earned a reputation as a tough negotiator at NBC, said Discovery’s contractual guidelines reflect how the power equation in television favors networks in dealings with program suppliers. He added that compared with Discovery “we were pussycats.”