Guilherme Ravache

When a company cuts hundreds of employees, we sympathize with those who leave. When that company is Globo, one of the largest and richest media companies in the world, and those laid off are professionals we admire and get used to seeing on TV for decades, solidarity often turns into revolt.

Journalists raged pointing out what they saw as the broadcaster’s disrespect for its “household silver”. Others, ignoring the billions of reais in the company’s cash, said that Globo was going bankrupt. Fans posted thousands of outraged messages and comments on social media.

As I said in a text from October last year, the rise of the dollar in Brazil and the pandemic, combined with a deep economic crisis in the country and the flight of advertisers and audience from TV to online, forced Globo to take a bitter medicine and helped create one of the biggest image crises in the company’s history.

The bitter medicine was a tough restructuring plan started in 2018, accelerated in the pandemic, with large cuts in employees as the most visible measures. The company also reduced investment in live sports, such as football and F1 championships, as well as cutting expenses in several areas, including selling properties such as buildings and broadcast towers.

Globo copied Netflix and everyone copies Globo

If a few months ago the departure of stars shocked and generated indignation, today it has become just another piece of news. Galvão Bueno not renewing his contract with Globo, for example, is no longer surprising, the narrator was one of the biggest salaries of the station.

But let’s be honest, what’s the alternative for Galvão Bueno or any star who leaves Globo? Internet, social networks, streaming? Undoubtedly, but in none of these platforms there is a millionaire fixed salary or even in the hundreds of thousands of reais.

Leaving Globo for competing TVs? It is possible, but no television executive is willing to sign contracts at the same rates as two or three years ago. The logic is simple, Globo has released several stars and there are a lot of professionals in the market.

“Negotiations are increasingly difficult,” says a famous businesswoman. “The past spree in which there was an artist who, despite having an exclusive contract, said he had no agenda to do a project. If Globo lives without Faustão, it lives without any name in the house. And Globo is the reference. The other stations observe,” he adds.

Basically, work contracts are cheaper. Just as Globo copied Netflix’s contract model, now other broadcasters copy Globo.

Sabrina Sato at Globo

When broadcasters are not willing to pay the same fixed salaries as in the past, the strategy of the famous also changes. Sabrina Sato would have accepted to go to Globo earning five times less, around R$ 200 thousand. How much she would earn if she had agreed to stay on Record was not disclosed, but she also did not have a fixed contract with the São Paulo broadcaster.

For Sabrina, who earns thousands of reais as a digital influencer and in her other businesses, the logic has changed radically in recent years. TV no longer carries the same weight and salaries are worse, and when it comes to brand exposure, Globo is still unbeatable. Globo is still the absolute leader in audience, and now with fewer fixed contracts, it can “test” more and more new talents.

Sabrina knows this and may be able to do what Fernanda Gentil could not: give Globo a “younger” program that appeals to the public. Between jumping from one show to another on Record or Globo, better to do it on Globo and still be able to carry out projects on Multishow, Globoplay or other streaming platforms.

Marcos Mion is an example. He was hired by Netflix, then Multishow, but jumped to Globo “helped” by the unexpected departures of Faustão and Tiago Leifert from Globo.

Luciano Huck, in turn, went to Sunday, and would have taken over Faustão’s place without major impacts on Globo’s commercial revenue. But the change allowed the network to prove that the programming schedule and the channel’s brand are stronger than the name of a talent. It’s also clear that life outside the platinum giant is “tough”.

The departure of Faustão and Xuxa

Faustão’s success in the Band is still unknown. The show’s ratings are far from spectacular. The presenter managed to attract large advertisers, but whether brands are renewing investments, and especially, what is the relationship between the cost and commercial revenue of the program, are difficult to assess.

Band, unlike Globo, SBT and Record, does not disclose its balance sheets, so it is more difficult to understand the account on the Morumbi station. But some news surrounding Faustão’s attraction is worrying. According to the columnist Mauricio Stycer reportedthe São Paulo Broadcasting and Television Workers Union sent a letter to Band denouncing the poor working conditions of the presenter’s production teams.

We also learned from the journalist Luiza Leão that the Band left employees without a restaurant to create a gourmet space for Faustão. There are also complaints from other productions of the station that the presenter and his team would receive disproportionately favorable treatment, reducing the quality of other programs, as revealed by columnist Ricardo Feltrin.

Xuxa, the biggest signing in the recent history of Record, outside Globo did not have any great success. Back to the carioca station in occasional appearances, he triumphantly returned to the media. In other words, if leaving Globo brought risks for Faustão and Xuxa, imagine for the other celebrities.

Galvão Bueno on another station?

Galvão narrating on Band, SBT or Record? It would be possible. But it’s a growing challenge to keep millionaire-earning stars on any channel. When Globo changed the contract model, it changed because the market is different. If it’s difficult to “close” the account on the audience leader, imagine the others.

In the coming weeks, the SBT will release its 2021 balance sheet. Profit should be over 200 million, reversing the downward trend of recent years. One of the key players in the good result is José Roberto Maciel. vice president of SBT. The executive’s mission in recent years has been to cut costs, promote layoffs and increase revenue by putting the accounts in order.

Maciel, in March, was promoted to president of Grupo Silvio Santos. Before assuming the vice-presidency of SBT, the executive was administrative and financial director of the channel. Now, he will take care of all the companies in the group, such as Jequiti, Jequitimar, Leadership Capitalização and Sisan, among others.

At SBT, as at Globo, passions are increasingly giving space to a model based on numbers. Galvão understands the media and the market like few others. By announcing his departure, but waving that he will continue in “his house” in other projects, he shows that he understands the game.

Admit it, Globo was right

Globo’s strategy is winning. Whether it will work in the next few years is anyone’s guess. Netflix is ​​showing signs that its model is starting to run out and competitors are catching up faster and faster. When all the stars are “available in the market”, the strategy becomes as, if not more important, as in the past it was to have the resources to hire the best known actors and presenters. But Netflix’s challenges are the subject of an upcoming column.

Artists are also finding that working with streaming platforms and their rigid formulas is far from easy. Globo’s structure and the exposure of its various platforms (websites, open and cable TV, Globoplay, radio, newspapers and magazines) are another advantage.

The fact is that Globo can celebrate. The company cut wages, reduced costs and increased profits, reversing years of losses. It can be argued that Globo still lacks a resounding new artistic success on open TV, as there are several on Globoplay, especially Verdades Secretas 2.

Slow death of open TV?

Perhaps Pantanal has the purpose of being a project to show that the broadcaster has increased Globoplay’s profits and relevance without losing its creative capacity to produce great hits on open TV.

This is probably just another “account” on how to reduce investment in TV at the right pace, without alienating the audience that is there and not killing the goose that lays the golden eggs, since the profit is still on TV and not on digital. .

Using broadcast TV profits to create a new digital business is a valid strategy. However, as in the case of restructuring and cutting artists and employees, it would be an unpopular measure. Possibly another bitter but inescapable remedy. There will be complaints that Globo stopped being creative and that it killed soap operas and so on.

Be that as it may, there will be no shortage of talent. The line of stars willing to earn less, as long as it is to be at Globo, continues to grow.

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