Inside Sky Studios: Confusion, Power Struggles & The Heavy HBO Crown
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EXCLUSIVE: Sky wanted to start 2023 with a bang. Comcast’s European pay-TV giant gathered journalists at London’s salubrious Soho Hotel and laid on a banquet table heaving with Danish pastries. A smorgasbord of upcoming Sky content was also on the menu, but there was really only one show on everyone’s lips. The Last of Us had recently premiered and Pedro Pascal’s blockbuster apocalypse series was in the mood to steal Sky’s thunder.
Sky is the home of HBO content in the UK and people who know the business will tell you it is both a blessing and a curse. In many respects, it is the diamond-studded crown atop Sky’s £500M ($630M) original content pile, but industry insiders say the headgear weighs heavy.
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HBO makes some of the best television in the world by any standard, meaning Sky is subscription bait for Succession and Game of Thrones fans. The premium Warner Bros. Discovery (WBD) network is also the yardstick by which Sky measures its own originals. Zai Bennett, Sky’s UK and Ireland content chief, told journalists at February’s event that his shows must stand “shoulder to shoulder” with their transatlantic bedfellows.
The brutal reality is that the vast majority of Sky’s major series fall short of HBO’s lofty perch, both in terms of viewing data and critical acclaim. Seven of Sky Atlantic’s top 10 shows over the past five years open with HBO’s trademark static hum, according to ratings body Barb. An eighth, the Emmy-winning triumph Chernobyl, was co-produced by WBD’s cable network.
There was no place for 2022’s splashy premieres including Kenneth Branagh’s This England and I Hate Suzie Too. Beyond Sky Atlantic, the picture is brighter, with series including The Midwich Cuckoos and The Lazarus Project making it into the top 10 across all Sky UK channels last year.
Cécile Frot-Coutaz, the Chief Executive of scripted content arm Sky Studios, is attempting to seize HBO’s ratings crown as she approaches two years in the job. One of the most accomplished media executives in Europe, her influence is being keenly felt at Sky’s sprawling west London campus.
By many accounts, Sky Studios is in a state of flux nearly four years after it was launched. More than 20 current and former Sky executives, major suppliers, and writers describe a bewildering and ruthless environment in which to do business. There is confusion over how Sky Studios works and a widely-held view that its scripted commissioning processes have become cumbersome, creatively numbing, and liable to detonating developments with little warning. “You’ve got to walk through five fields of landmines to get a Sky commission,” is how one decorated executive describes their dealings with the company.
Frot-Coutaz is characterized by her colleagues as a woman prepared to “run into bullets” to get what she wants. The question she faces is whether producers are prepared to follow her into the firing line or, as many glumly admit, they are better off taking their ideas elsewhere.
Frot-Coutaz accepts that there is some market confusion about Sky Studios, but defends its processes, producer relationships, and execution. She tells Deadline that her vision will come into focus next year when Sky Studios delivers a scaled-back slate of shows including Eddie Redmayne’s The Day of the Jackal. “I’m a big believer that the proof is in the pudding,” she says.
Stakes Sky High
The stakes are high. Concerns are growing louder about whether Comcast exercised good judgement in spending $39B on Sky in 2018. The U.S. media giant wrote $8.6B off Sky’s value last year and there is undimmed chatter pertaining to the sale of its German and Italian divisions. The jury is out on Sky Glass, satellite dish-free smart TVs unveiled by CEO Dana Strong in 2021 during an Apple-style product launch.
Sky could generously be described as being in stasis. The company remains healthily profitable, but its customer base has not budged from 23M over the past five years, while over the same period, its revenue has drifted downwards nearly 10% to $17.9B. Insiders say Sky is performing strongly in the UK, but the figures are a contrast to the swashbuckling growth under Rupert Murdoch.
Not all of this is Sky’s fault. Competition is fierce and it has had to contend with a pandemic and war in Europe. Most of Sky’s rivals bear similar bruises. But even as the content boom subsides, Sky Studios remains one of the company’s potential engine rooms for customer growth. It is also a space in which Comcast, NBCUniversal, and Sky can combine to create a coherent chorus, with Frot-Coutaz as conductor.
Hired from YouTube, Frot-Coutaz made her name at Fremantle. She helped turn Got Talent and The X Factor into global franchises and sowed the seeds for Fremantle’s move into scripted. Simon Cowell says she’s the best partner he’s ever worked with and colleagues describe her as a dazzlingly smart strategic thinker with a straight-talking sensibility. “If she doesn’t agree with you, or if she thinks you are being unreasonable or illogical, then she’ll tell you,” says an admirer who worked with her closely at Fremantle.
Frot-Coutaz inherited Sky Studios from Gary Davey, an Australian executive who had close links to Murdoch. “When Gary went it felt seismic,” says one producer, who has made shows for Sky. “Everything changed culturally and strategically. I’ve never known anybody land in a company with such force as Cécile.”
Making Sense Of Sky Studios
Davey set up Sky Studios in June 2019 with an ambition to commission scripted series for Sky’s UK, German, and Italian operations, but those familiar with its beginnings say it was confusingly conceived and poorly communicated to the wider industry, and this still ripples today.
As recently as March, Frot-Coutaz was explaining how Sky Studios works during a Series Mania keynote. In an interview with Deadline, she says the branding is “misleading” for some, who think of Sky Studios as a producer rather than a commissioner. The opposite is true, she says, adding: “Our sole mission is to bring Sky the best scripted product to attract and retain Sky customers.”
A former employee says Sky Studios is like a U.S. studio but without the clarity on who ultimately greenlights shows. “It was never properly nutted out at Sky,” this person says. “You’ve got the [UK] channels still taking a position on commissioning and the indie community saying, ‘Do I report to Zai [Bennett] or Cécile?’ … Indies feel like the children of divorced parents.”
Frot-Coutaz is unequivocal about where the commissioning power lies on Sky’s biggest series. She tells Deadline that it is a collaborative process and Bennett’s team has “input” alongside corporate affairs, marketing, PR, and finance, but “at the end of the day, when it comes to scripted, Sky Studios commissions.” Bennett is responsible for Sky’s output and performance in the UK and Ireland, with authority over entertainment, factual, movies, arts, and kids, as well as acquisitions across Europe.
People who have worked with both describe a situational struggle rather than a clash of personalities. “If there’s a disagreement, both sides listen,” a source says.
Several sources say Bennett, a highly-regarded figure in the UK, is not as happy as he once was at Sky and there is speculation about him plotting his exit after nine years. People disagree on when he might leave (some say he is waiting for his Sky shares to vest, others think he is waiting for a big opening elsewhere), but there is a consensus that he doesn’t wield the influence he once did. “Cécile is winning the power struggle,” says a regular Sky supplier.
Getting “Mangled” In Sky Machine
Frot-Coutaz has introduced more structure to Sky Studios’ commissioning processes, including an approval tick system. Increased discipline is Frot-Coutaz’s effort to create clarity, but it appears to be having the opposite effect. Some of the UK’s top showrunners complain of stodgy decision-making and say they have difficulty convincing writers that Sky is the best home for their work.
Drama developments are handed from Katherine Butler, Director of Drama Commissioning, to Meghan Lyvers, Director of Original Drama, before reaching the desk of Frot-Coutaz. This is seen as onerous by some, who say they have far fewer layers to penetrate at Sky’s biggest rivals. Former employees complain they had difficulty explaining the new structure to producers and agents.
A prominent program-maker says: “Sky might not be the first phone call you make anymore because there’s a fear that your show will get mangled in the machine. Sky used to be confident, instinctive, and aggressive in a good way. Now it feels overthought and overwrought.”
A Sky Studios spokesman says that the high-stakes nature of big-budget shows means it is right that developments are considered “carefully.” Frot-Coutaz adds that her team can move “much quicker than our competitors” on the right projects.
There is a feeling that Sky’s genre commissioners are not properly empowered, or at the very least, attempting to second-guess Frot-Coutaz. The effect of this, according to sources, is low transparency, a lack of trust, and a sense that Sky is unenthusiastic about certain projects.
“People talk about Cécile like Emperor Palpatine,” says one well-known writer. “She’s shrouded in this imperial secrecy, with people trying to get a read on what she wants.” Another writer on a major Sky series puts it rather more directly: “It’s a f**** nightmare.”
A Sky insider says that a high turnover of senior staff has been unhelpful. Lyvers joined from CBS Studios as Sky Studios’ UK drama chief last year, taking charge of the slate from Gabriel Silver, who was promoted after Cameron Roach quit in 2020. Other significant departures include Chief Content Officer Jane Millichip, who left last year to run BAFTA. Producers say Lyvers is attempting to steady the ship and is seen as a smart and approachable presence.
A Sky Studios spokesman says: “We work to be as clear with the creative community as possible on what we are looking for, while not being too prescriptive that we close off potential projects that could work for Sky.”
Frot-Coutaz’s Creative Involvement
There is talk of Frot-Coutaz giving notes on scripts and having input on casting, much to the bemusement of producers who say that she is not a creative by her own admission. Sky insiders acknowledge that Frot-Coutaz has been involved in creative processes, but now wants to take more of an “oversight” role after assembling her top commissioning team.
One project, hailing from Boffola Pictures, the company behind BBC1’s BAFTA-winning series Am I Being Unreasonable?, has been the talk of the comedy community in recent weeks.
Boffola was gearing up to produce a Sky pilot, said to be from the pen of an established American writer, but it was paused just weeks before it was due to shoot, putting people out of work. Sky Studios insiders say it was a joint decision based on the fact that those involved wanted to develop the show into a full series because of the “exciting talent” attached.
A source, who was not involved in the project but is familiar with its demise, says Sky had high expectations for the cast based on a list of stars that resonate with its customers. Hugh Grant was among those thought to be high on the wishlist, but the source says producers were laughed out of the room by agents, who were unwilling to put their clients forward for a non-broadcast pilot.
Deadline understands Frot-Coutaz was not directly involved in casting or pausing the pilot, but sources suspect that she was being second-guessed by her commissioners. “It was a car crash,” an industry insider says. “They [Boffola] were distraught. The crew was in pre-production. They had to pull everyone’s contracts and pay everyone out.”
A spokesperson, speaking on behalf of Boffola and Sky Studios, says: “We have not canceled any pilot, it has been paused as we develop the series, ready for potential commission.”
Described as a cautionary tale, producers say it speaks to Sky’s desire to “sell the poster” with eye-catching talent. “Why does it have to be a tiny little Venn diagram of names from marketing?” bemoans a producer who has experience of the expectations. This person points out that Brassic, one of Sky’s biggest hits of recent years, does not feature any Hollywood A-listers.
Ruthless Cancelations
Sources say Frot-Coutaz is being ruthless with Sky’s slate and is unafraid to make difficult decisions. She recently canceled A Town Called Malice to the surprise of producers who were gearing up for a second season of the Spanish crime drama from The Football Factory writer Nick Love. One source says that not everyone in Sky’s UK channels team was aware it had been canceled, pointing to gray areas in the company’s commissioning processes.
Love says he is friendly with Frot-Coutaz and Bennett, but is uncertain who the “ultimate decision-maker” is at Sky. “It wasn’t an easy decision,” he tells Deadline. “Everyone involved in the show was quite blindsided by it because it felt like it had a good birth. I’m certainly not someone who would cry over spilled milk because I’ve got lots of other opportunities. Sky was fantastic to work with.”
In a rare renewal reversal, Frot-Coutaz also pulled the plug on supernatural crime thriller The Rising shortly before Season 2 was due to go into production this spring. Sources say the in-house series was canceled for creative reasons, but it was understood to be a blow for those involved with the show, which is based on Belgium’s Hotel Beau Séjour. Showrunner Pete McTighe declined to comment.
Similar decisions have been made in comedy. Sky was sweet on a third season of paramedic series Bloods before Frot-Coutaz pronounced it dead. Co-creator Nathan Bryon told blog The Comedy Loser that he was so “gutted” by the unexpected decision, he sulked in his pajamas for days, ignoring his other writing deadlines. Bloods producer Roughcut TV declined to comment.
Sky Studios says: “As with the industry at large, not everything has all the ingredients to get recommissioned.”
Some returning series remain foundational for Sky Studios, including AMC co-production Gangs of London. Jamie Hall, COO of scripted at Gangs of London producer Pulse Films, says: “As we enter into series three we have felt supported and energized by Cécile and Meghan’s confidence in the show.”
The Rising’s cancelation has sparked speculation that Frot-Coutaz is winding down Sky Studios’ in-house production ambitions. She has no plans to replace Preethi Mavahalli, the Creative Director of in-house drama, who joined former Bad Robot producer Ben Stephenson’s outfit Poison Pen. Sky insiders say the company was never doing “full-on in-house production” and it has an “agile” model, which includes financing and supporting independent producers.
Fewer, Bigger, Better
One strategic shift Sky does acknowledge is a refocusing of its resources into a smaller number of projects. Only last year, CEO Dana Strong was boasting about its 200 originals, but this rhetoric has changed since then to “fewer, bigger better” — an increasingly familiar refrain among content gatekeepers.
Frot-Coutaz says 2024 will be an “important year” for seeing her strategy on screen. “We’re not going to launch a lot of shows next year, but the shows that will launch will be shows that we are very proud of,” she says. Mary & George, starring Julianne Moore, and an adaptation of The Tattooist of Auschwitz are two shows she picks out, as well as Italy’s Benito Mussolini series M. Son of the Century from Darkest Hour director Joe Wright.
A series being held up as an example of Frot-Coutaz’s vision for Sky Studios is The Day of the Jackal, Sky and Peacock’s adaptation of the Frederick Forsyth novel, starring Oscar-winner Redmayne. Two sources say that Carnival Films, which is making the drama, shopped the show to different buyers and was some way down the track with a co-production partner that was not owned by Comcast. Frot-Coutaz seized on the show and asked NBC-backed Carnival to keep it at Comcast.
The drama, which will premiere in late 2024, is an example of Sky and NBC flexing their combined muscle on a series that has a rumored budget of £10M an episode. “If something comes from the family, it’s great to keep it in the family — if it’s the right show,” Frot-Coutaz says. Carnival declined to comment.
The HBO Crown
If Jackal is a hit, it is the kind of show that will stand alongside HBO content on Sky. Chernobyl, Gangs of London and Save Me are the only UK originals to have broken into the top 10 shows on Sky Atlantic, home to HBO’s top-end series, including White Lotus and Succession. The ratings serve as a reminder of HBO’s world-class content, but there are questions as to whether Sky’s exclusive output deal will be renewed beyond 2025.
Warner Bros. Discovery sources acknowledge that a new agreement with Sky is more likely than it was in 2020 when HBO Max first landed. The streaming service is not available in the UK because of the Sky deal and it has spluttered on its wider international rollout. Industry insiders are skeptical that WBD can match the revenue it makes from Sky by launching a new service into the British market several years after the streaming boom. Sky insiders are quietly confident that HBO will continue to have a home on its platform, with Director of Programs Jamie Morris telling the Edinburgh TV Festival last year that the relationship will continue “one way or the other.”
Elements of the existing deal offer clues as to how Sky might keep hold of HBO content. For example, Deadline understands that Sky has the license to broadcast House of the Dragon and The Hedge Knight, another upcoming Game of Thrones prequel, for the lifetime of the series, though not on an exclusive basis. WBD declined to comment.
Producers say there is no evidence of Sky Studios scrambling to commission a wave of big series to plug an HBO-shaped hole two years out from the deal expiring. Bennett counts the likes of I Hate Suzie and the recently-launched Dreamland among the content that can compete with HBO, but few outside of Sky believe this is realistic.
Bennett even joked about this disparity in February, telling journalists: “At [Sky’s HQ in] Osterley, there’s probably a lot of hits that you’ve never heard of.” Frot-Coutaz’s allies say she recognizes these perceptions and is providing her colleagues with a “dose of harsh realism.”
Some of her contemporaries have drawn parallels with Jay Hunt’s tenure as Channel 4’s programming chief last decade. Now at Apple TV+, Hunt went through a tumultuous spell with the production community as she sought to wield her influence at the British commercial broadcaster. It culminated in Survivor creator Charlie Parsons voicing “widespread concerns” from the production community, including over commissioners being disempowered and shows getting changed at short notice. Hunt eventually turned the tide and history has been kind to her legacy at Channel 4, where she commissioned hits including Gogglebox.
If Frot-Coutaz can replicate this feat at Sky Studios, she could kickstart subscriber growth at the once-swaggering pay-TV operator and go a long way to injecting fresh enthusiasm into the Comcast takeover.
Additional reporting by Jesse Whittock.
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