Changing the TV Channels

At a gathering of the Hollywood Radio and Television Society in Beverly Hills several weeks ago, Universal Television Group chief Michael Jackson stood out in more ways than one.

It wasn’t just the British accent or the quirky purple striped socks he was wearing in a sea of Armani suits, but his unconventional praise for “reality” TV.

Unlike many of his colleagues who have derided the popular phenomenon, the soft-spoken yet opinionated Jackson had the cheek to suggest that unscripted dramas challenge television writers to create characters as compelling as the “Joe Millionaire” crowd.

“I see the reality shows as much better at dealing with questions of class or gender than the average comedy or drama,” said Jackson, smiling faintly as he snacked from a bowl of blueberries in a recent interview at L’Ermitage hotel in Beverly Hills. “They’ve stirred the pot.”

Stirring the pot has been Jackson’s trademark since the provocative 45-year-old stormed British television several years ago with popular and sometimes controversial shows, among them “Queer as Folk,” a raw look at gay sexuality.

Now, as Jackson finds himself presiding over what many consider the crown jewels of Vivendi Universal’s far-flung entertainment empire, the Hollywood outsider is making waves inside America’s TV establishment. Bold and unconventional programming choices have helped elevate the profile of Universal Television as its corporate parent plans to unload its Universal holdings to raise much-needed cash.

The cable channels USA Network, Sci Fi and Trio are valued at about $6 billion. The TV production group, which produces the three “Law & Order” dramas, is seeking more than $550 million a year over three years from NBC to continue broadcasting the shows.

Amid corporate upheaval, Jackson has led an unlikely resurgence of the USA Network and continued growth of the Sci Fi cable channel through such hit series as the TV detective drama “Monk” and “Dead Zone,” based on the Stephen King best-seller, as well as a stable of top-rated original movies and mini-series such as Steven Spielberg’s look at alien abduction, “Taken.”

Ratings Jump

Last year, USA Network saw an 11% jump in its ratings, becoming the second-most-watched basic cable network, closely behind TNT, by the 18-to-49-year-old group most coveted by advertisers. Sci Fi jumped 20% to become the 10th-most-watched cable channel.

The group, like many in cable, is expected to post large gains in advertising sales for the coming year.

Not surprisingly, it’s the lucrative TV operation, especially Sci Fi, that is of most interest to various media companies eyeing Universal, including Viacom Inc., Liberty Media Co., MGM and General Electric Co.’s NBC. Formal bids could emerge this month.

Jackson is no stranger to the uncertainty for his division.

Media mogul Barry Diller hired Jackson in summer 2001 to head his entertainment group. Jackson was in the job only a few months when Diller sold the operation to Vivendi, which by that time had purchased Universal’s movie studios and theme parks. Diller remained chairman of a new joint venture that reunited Universal’s television and film operations.

The new Paris-based management promoted Jackson to chairman of Universal Television Group, continuing his oversight of the TV group. But over the next 18 months, Vivendi nearly collapsed, then-CEO Jean-Marie Messier was ousted and Diller resigned to focus on his electronic commerce business.

“We’ve gone from a mogul in Barry Diller to an emperor in Jean-Marie Messier to a situation where anything could happen,” Jackson said.

Industry analysts credit Jackson and his team for building momentum during such a tumultuous period.

“They’ve managed very well in a tough ad and economic environment,” said cable industry analyst Larry Gerbrandt. “It would have been very easy to get distracted.”

Despite being a stranger to Hollywood, Jackson didn’t face a steep learning curve.

“The whole British accent is a ruse,” joked David Kissinger, president of Universal Television Productions. “He’s more steeped in the history and mechanics of the TV business than most Americans.”

After last month’s upfront presentations -- when broadcast networks pick up new prime-time shows for the fall -- Jackson came into the office the following Monday having watched every new television pilot, Kissinger recalled. “I hadn’t found the time,” said Kissinger, who was stunned.

Jackson’s passion for television took root early. In the small town outside Manchester, England, where Jackson grew up, TV provided one of the few forms of entertainment. Skinny and reserved, Jackson, the son of a baker, was fascinated by American pop culture. His favorite television show was “Batman.”

After graduating from a media studies program at the Polytechnic of Central London (now University of Westminster), Jackson launched his career as a freelance producer for the BBC. His big break came in 1988 when he started an arts and culture program for BBC 2, called “Late Show.” The first episode featured author Salman Rushdie -- coincidentally on the same day that Ayatollah Khomeini issued a fatwa calling for Rushdie’s death.

Jackson rose to top executive positions at BBC 1, BBC 2 and the rival Channel 4, a commercial channel with a mandate for public programming, which he transformed into a critical and financial success. He developed a reputation for picking offbeat television shows that proved popular with young audiences. Some would become top-rated cable shows in the U.S., including home-design series “Trading Spaces” on TLC and “Da Ali G Show” on HBO, a fictional documentary series about a hip-hop-clad Jewish Londoner who does outrageous interviews.

“He left a really powerful legacy and it became a magnet for all the best talent,” said David Brook, former director of strategy at Channel 4.

Jackson also stirred controversy. The gay drama “Queer as Folk” was censured by regulators for its “celebratory” portrayal of underage sex. Jackson defended the show, which has been successfully adapted for U.S. audiences on Showtime, as an authentic and unglamorous depiction of gay life.

New Energy

The rising star of British television caught the attention of Diller, who sorely needed someone to re-energize his struggling TV group. The assets were battle-worn from ownership changes, management overhauls and strategic redirections.

Once-top-ranked USA Network in particular saw its ratings drop after losing its most popular programming, from World Wrestling Federation.

“There was previously a lack of ambition and clarity,” Kissinger said. Jackson “brought a sense that we should develop a couple of defining properties for each channel.”

Jackson also persuaded his bosses at Vivendi to loosen the purse strings and spend an additional $500 million through 2005 on cable programming that “has a clear identity, that grabs you.”

With extra cash, USA and Sci Fi ramped up programming with a host of new series and original movies. Universal also created a new production company, Reveille, which launched a hit show for USA called “Nashville Star” and another called “The Restaurant,” which debuts on NBC next month.

Jackson also promoted more sharing of resources among the two cable channels, the TV production arm and the film studio.

Emphasis on Drama

“He has been masterful, making deals possible that before were not doable,” said Bonnie Hammer, Sci Fi’s chief, citing the series “Tremors” and “Battlestar Galactica,” which were developed from the library. Jackson also is reaching into the Universal library to do TV shows based on “The Bionic Woman,” “Kojak,” “Baretta” and a miniseries based on Universal’s blockbuster movie “Traffic.”

At Sci Fi, Jackson has pushed to spend more on market research and expand the channel’s audience by emphasizing drama over special effects.

“Our thought about Sci Fi is kill the latex and bring on the human stories about alternative realities,” Jackson said.

Jackson also has worked to reposition Trio, a small Canadian arts channel bought in 2000, as an alternative popular culture channel. Its offbeat fare includes “Uncensored Comedy” and “Brilliant, But Cancelled,” which features programs dropped by other networks.

Colleagues see the channel as mirroring Jackson’s irreverent personality. They describe him as reserved and intense, with an acerbic wit and provocative style. “He’s passionate about taking an idea and injecting it with meat and substance and style,” said Patrick Vien, president of network enterprises for Universal TV.

Like former boss Diller, Jackson can be a harsh critic. “He’ll watch something and say, ‘I hate it,’ or ‘That’s awful, isn’t it?’ ” said USA President Doug Herzog. “It’s kind of deflating, but Michael has gut reactions to things.”

The one weakness Jackson has been unable to overcome is Universal’s relative lack of clout.

Unlike Viacom or Walt Disney Co., Universal has neither a huge stable of powerful cable channels nor a broadcast network. That means Universal Television Productions must vie for time periods on prime-time schedules that increasingly are dominated by the networks’ own shows. In addition, USA and Sci Fi don’t have much influence with cable operators to raise rates and launch new channels.

Typically, Jackson sees it differently. He says the splintering of TV’s audience has made broadcast networks less dominant and created more opportunities for emerging cable channels such as USA to capture audiences with distinctive shows. He contends that there’s little difference today between a network like CBS and USA.

“There’s no hierarchy anymore,” he said. “I think it’s a great time to be in television.”