‘Idol’ empire conquers new multimedia worlds

‘Fashion is the final piece’
Fuller’s most recent enterprise, announced in September, is a partnership with fashion designer Roland Mouret that will market clothing under the 19 RM line.

In an interview with Women’s Wear Daily shortly after the announcement, Fuller said, “Fashion is the final piece of my 19 (Entertainment) jigsaw. It is the glue that brings everything together, the glamour that makes the soccer player an individual, the movie star a sex symbol and the musician a trend-setter and idol.”

The acquisition of 19 Entertainment by CKX Inc., an entertainment marketing firm owned by American billionaire Robert F.X. Sillerman, offers intriguing possibilities for the future.

CKX owns the rights to the names, images and likenesses of Muhammad Ali and Elvis Presley (as well as the operation of Graceland) and a firm that manages such comic talents as Robin Williams, Billy Crystal and Woody Allen. Among the projects CKX has in the works is a Presley "extravaganza" that it is developing with the Cirque du Soleil acrobatic troupe. The show is planned to be a permanent fixture at the new MGM Mirage in Las Vegas when it opens in November 2009.

Both Sillerman, who made his money in radio and concert promotion, and Fuller have hinted that other great things are anticipated as the partnership matures.

The 19 Entertainment Web site says that Fuller expects to “create entertainment history and set the agenda for the 21^st century,” while Sillerman told USA Today in October that his company will unveil a venture in 2007 that could “have a profound impact” on all forms of entertainment. He declined to characterize it.

In the meantime, though, “Idol” remains CKX’s cash cow.

Last year, 19 Entertainment contributed just shy of $135 million in revenue and $39.2 million in profit to CKX’s bottom line in the nine months ending Sept. 30, according to the company’s filings with the Securities and Exchange Commission. Both figures were substantially higher than the $64.5 million and $7.7 million, respectively, generated in the same period the previous year.

Calculating ‘Idol’ life span
The big uncertainty is that, unlike many assets, a television show has no reliable life span. Although CKX recently signed a deal with Fox Entertainment, Freemantle Media and SonyBMG to extend “American Idol” at least three and as many as five more seasons, it’s also possible the show could tank.

In its SEC filings, however, CKX is taking the optimistic view, estimating that the “Idol” assets have 5.5 years of “weighted average remaining useful life.”

And most entertainment sector analysts say financial indicators continue to be bullish for the show and its many corporate offspring.

Gary Bongiovanni, editor and chief of Pollstar USA, which tracks the concert industry in North America, said the “American Idols Live” tour did “considerably better” in 2006 than the previous year, finishing 19^th among all performers.

“The average number of tickets sold per city was close to 12,000, which is maximum for a lot of arenas,” he said. “They average more people than Mariah Carey did, or The Who for that matter.”

Geoff Mayfield, director of charts and senior analyst for Billboard magazine, said that “Idol” artists racked up strong CD sales in 2006, led by Season 4 winner Carrie Underwood and Season 1 victor Kelly Clarkson, a two-time Grammy Awards winner.

Mayfield said he was a doubter when the show first aired, figuring the novelty would wear off during the second season. But not any longer.

“I no longer bet against the ‘American Idol’ franchise, and I will continue to bet with them for the foreseeable future,” he said.

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