Nine exhibitors leave LV show

Thursday, Oct. 18, 2001 | 9:54 a.m.

A big Las Vegas television industry convention has lost nine key exhibitors, another indication that the weak economy has dented the entertainment industry.

Columbia TriStar TV Distribution, a large domestic television program distributor, was the latest company to announce that it would not exhibit on the trade show floor at the 39th annual National Association of Television Program Executives convention when it meets at the Las Vegas Convention Center Jan. 21-24.

Columbia and eight other companies are blaming the economic climate for their decisions to abandon the show in favor of hosting hospitality suites at Las Vegas hotels. Several of the companies that aren't exhibiting at the show have said they are planning, instead, to meet clients at the Venetian hotel-casino.

Daily Variety reported Wednesday that some distributors have also made inquiries for space at the Bellagio.

Show syndicators are saying advertising revenues are down and budgets are tight.

"Given the current advertising and station sales environment, it is imperative that we do everything possible to cut costs," said Steve Rosenberg, president of Studios USA Domestic Television. "When you factor the diminished station attendance and the quantifiable business return, we found it very difficult to justify the expense."

Others said the expense of building a booth contributed to their decision. Exhibits at the NAPTE show are among the most elaborate on the convention circuit because they use state-of-the-art production equipment to make an impression. A spokesman for one company said booth costs, including space rental, can be in excess of $1.5 million.

An industry source who asked not to be identified said some of the escalating costs of the booths were the companies' own fault, since they are engaged in battles to out-do their rivals.

"These are cost-cutting times," said Ivey Van Allen, vice president of media relations for Twentieth Television, a division of Fox that syndicates "The Practice" and "The X Files." "Considering the way the economy is this time around, it was decided that we had to re-examine things."

The decisions by the distributors not to exhibit have forced show managers to re-evaluate show policies. Bruce Johansen, president and chief executive officer of Santa Monica, Calif.-based NATPE, said meetings are ongoing on the best way to acknowledge the distributors meeting at other venues without alienating those who paid for exhibit space.

The practice by some companies of staging meetings at alternative locations during shows -- known in the convention industry as "outboarding" -- is frowned upon by some convention managers. At some shows, the fee paid for renting space also covers the promotion of exhibits on the show floor. Exhibitors who pay for floor space don't want companies meeting elsewhere to steal customers away from the trade show.

Nancy Murphy, who heads meeting sales for the Las Vegas Convention and Visitors Authority, said outboarding is common at meetings of all sizes. Murphy said the LVCVA takes the view that any show that brings visitors to the city "puts heads in beds," even if outboarding is occurring.

Johansen said his job now is to make sure his association provides the best show experience possible for all its members.

"Out goal is to have a good conference," Johansen said. "But there's nothing we're not exploring. We feel we have to rethink the relationship between the (association) and the members."

Johansen said his group would meet with members in November to discuss the role of the association and whether members want to rethink how the convention is staged. Under consideration are whether to have several small meetings as opposed to one large show or whether hospitality suites would work better than trade shows and booths.

Ironically, he said, NATPE's show began as a group of hospitality suites sponsored by Hollywood companies and the members decided in 1982 to turn the event into a trade show.

"One thing I think we have decided is that Las Vegas is where we want to come," Johansen said. "We've heard over and over from our members that they like going there and we want to keep Las Vegas in our future."

Last year's NATPE show in Las Vegas had record attendance. The association said 20,348 came, a 16.1 percent increase over the 2000 total.

There were 870 exhibitors, up from 780 in 2000, a record at that time. Last year, there were 312 new exhibitors.