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PAY-TV SPECIAL REPORT
by Lucie Hall
ed A Case for the Independents. We agent because they don'tknowwhatrm Pay-TV in Canada : It promises so much like they're waking up and their eyes asked about her eicperience with inde talking about and I could take them to and yet, Uke so many other Canadian are like saucers and they're saying, pendent producers coming to First the cleaners. And then we've licenced adventures, is riddled with controversy "Yeah, Yeah, if I can get a sale here and a Choice. them. and fraught with doubts. sale there, I can actually do it I can "My advice to independent producers However, a recent survey by Cinema actually make my product I' " who need to learn more skills is that Canada of a dozen key players on the In an age of fragmented markets, "There are three levels of independent they should attach themselves to an scene, reveals the emergence of a new more and more eichibitionsare required producers that I deal with. The first experienced producer who has been kind of entrepreneurial spirit among to deliver more product with less mo level is the very experienced producer. around for a while producing success independant producers, pay services ney. What results is a new spirit of co We have here in Canada some very fully, who, in fact, have core companies and, of all people, the established net- operation among every level of produ good producers like Denis Heroux. He in terms of the Canadian scene. These woks. cer and eichibitor. Daily precedents are has $35 million dollars worth of pre-sold experienced producers can give the As Joan Schafer, director of program being made as people, once rivals, now programming to offer me for next year, kind of financial assistance, creative ming at First Choice said, "It's interest join forces to make deals- thafs Louisiana, Blood of Others and and deal-wise assistance that just ing because I can see by the level of There arena rules anymore, it seems. things like that. Then you move over to wasn't available when I was working in people that come into my office; it's No rules other than sell the product. Harold Greenberg who has got a ton of it the business trying to learn it. Or they as well. Then you have the expatriates just wouldn't talk to you. I mean literally, like Norman Jewison coming home and they just wouldn't even talk to you. Bui presenting me with projects. This first now a lot of these producers in these kind of producer I have no trouble with core companies want to become studios at all. They say they want a two-year and they've got big dreams and they're The pay services window, they want it exclusively; they willing to help other independents with, know what else they want and bang: We less experience. And so what we've got in the series, "Here Come the Seven make a deal. developing here is a grooming system JOAN SCHAFER, ties." From there she worked with CITY- "Then there's the second line of pro with mentors... and it's very positive. It's terrific." vice-president, director/program TV and produced over 9,000 shows ducers who know quite a bit and are ming. First Choice. until she left to finance feature films. capable of handUng the negotiations All along Schafer lobbied heavily on once I tell them how to negotiate. I tell Schafer started her 15-year career in behalf of the independent producers, them that a window* is a period of play JON SIAN, TV by working with Hobel-Leiterman and co-produced a film with CFTA call and that they have to look after the chairman and executive vice- ACTRA payments and that residuals are president, Super Channel their responsibility and that if they don't produce the promised show on the A former university lecturer with a PhD agreed date, then I will never deal with in Literature, Slan began producing them again. But I feel that they are feature films in 1977. His most recent capable of delivering. And often they projects were Improper Channels wfW use a line of agents, lawyers and interim Alan Arkin and Threshold with DonaM financiers who represent them and the Sutherland. With his wide and varied producer does the talking with the eicperience as a filmmaker and prodvc- agent. And then when we meet we end er, he is overseeing programming sna up with everybody happy. productions for the Super Channeln^ "And then there's the third level of work. He is also the second-largest producers... This is by far the largest shareholder of Ontario Super Channel group. They are people who just don't know how to do it. They are usually the "Super Channel has two centers: one in first ones in the door. They are very Toronto; one in Edmonton. But we'W inexperienced but very keen and eager separate organizations. Sometimes inde and they have energy. And they're hun pendent producers will see me for a gry, very hungry. And I gave a lot of project and, if I don't like it, they'll go'" development money to these people, Edmonton and see if they like it, which about $400,000 worth. And we've also is possible. Often as well, producers helped them along by working with come to see me from Edmonton witha them and helping them with their drafts project and we'll like it here. I meanW^ and budgets. And when it comes time to make the deal, I have to tell them to go Lucie Hall is an independent telens'l" and get themselves a lawyer and an producer working out of Toronto. is/Cinema Canada-January 1983 V~til - T V are truly separate organizations. We're both called Super Charmel but the own ership is different The Alberta organiza tion is owned 100% by Dr. AU&rd. And he The networks is also the largest shareholder of the On tario Super Channel He owns 46%. I'm IVAN FECAN, II nil mill. Ill til Hi I' " •('/'' the second largest shareholder, I own wHiimil nil filfthiii »/' •"' !'• lliri'<;ilil' of iiioffri 11x1 /.iitt^iiimi null- 'I -III ii.'' -' 26%, and there are four other share i:ii(: I'v. holders as well. III llll', i:lllllll htltlllKh ' '/ ii,trl 1/ /•. •• . in iiil'/iiiii !•' '/nil 111)1/ '.'tl It ", '.' ;/•»/ "We have been accused by certain '/''li.v lltnv IID.-iililH) Hfi,., ,,(;lllll l»i /;r.n/ll,l!ii IMili M>H,ll(n('/<(/ f> ''•- / ••'•'> }"' people of being a mini-national pay liuiin ill Angii.-il, imz. Illn liniili: iiiiiii service because we have agreed with III lllllii i.hi((il->-. lit iiiniif /iiiw •••'' 'f> 'rt,e. dale i.s to rcviliilly,!; Ilw loult «/ (/)(' Ill// ))hiy>i/ pi(ll)i(« M(, n wii'il- rniti'.ti, the other regionals (including Star Chan nrlMork in un cm oj'ili'i lining JiinilM. nel) to buy product, mainly foreign, with yilllVn fill N' lllK-'l tll») 'l«;»l V/fi> l<:t»y /'/»» Among Pecan's nmny ii\tit
January 1983 - Cinema Canada/19 P A Y - T V pay people, we will have better products including twenty-four half-hours with for our own viewers, more quality prod the Rovlers, formerly the Irish Rovers DAVID MINTZ, uct a higher-budgeted Canadian prod from Vancouver. We're also doing a president, Global Television uct that can draw a bigger audience and variety program with Monty Hall that Network. compete realistically with the interna we're shooting in February called Some- tional shows. The reason for pay-TV in thing Funny. Mintz is an American who made his Canada is to help build and promote a "Instead of seeing a threat with pay- broadcasting reputation by turning a world-class production industry here in TV, we're just seeinganotheropportuni- small northern Washington television Canada. ty for a market. An old boss for whom I station into a ratings leader. Now he is "We've looked at plant expansion for used to work back on the west coast had expanding Global into a major produc 1985. Right now you can't get another a phrase which I'll always remember: tion facility; working with independent show into our studios until March be When you're handed a lemon, squeeze Canadian and American producers on cause, along with pay-TV, we're doing a it and you have lemon aid." a wide-ranging number of projects for tremendous amount of work for ouselves. both the Canadian and U.S. pay ser vices. Some of these programs are The David Steinberg and John Candy Hour for First Choice, Superchannel, and the Entertainment Channel in the U.S.; The Neil Sedaka Hour/or first Choice and The independents Superchannel; five one-hour dramatic shows for Showtime called33 Brompton Place; a one-hour special with Tony Van MAX ENGEL, Bridges playing author G.K. Chesterton president, Media Lab Television for C Channel and Global; and Red Inc., Toronto. Skelton and Marcel Marceau in Funny Faces/or First Choice and HBO. Media Lab is this country's largest do mestic distributor of Canadian shows abroad. As well, Media Lab "packages" "Global is not an independent producer. shows; that is, Maic Engel secures fi else, something that cannot be discre It is a faciUty. Our obligation under our tionary. And what we're finding is that nancing for Canadian producers, not license is to work with independent by using taic shelter money, but by the -economic judgements are, in my producers and their material. view, wrong and that this will work to negotiating pre-sale and co-production "We are involved with pay-TV in the agreements with other countries. the disadvantage of those who most sense that we are a catalyst working badly need the help but won't get it, the with independent producers in all "I don't think that there'll be all these independent producers. If the pay ser kinds of different ways : Everything from vices flounder, which I think is likely, it pay-TV services two years from now. I acquiring product to working on financ don't think this country can support will make it more difficult for something ing and budgeting as well as being in else to occur successfully down the them all. There will be a shake-down. volved on the business side and the sales Only one will win and one other may road because you will have tainted the side. public's expectations and the commis barely survive, not more. sion's tolerance. "I think the stand that some of the "The main thing about pay-TV is that "Despite my negative feelings as to other networks are taking with pay is all of them will show the same American the long-term prospects for pay-TV, CTV absolutely silly. I do not consider any of movies because they aren't buying them has nevertheless entered into arrange the licensees in Canada, even those that on an exclusive basis. So the distinguish ments with Super Channel for The Terry are in competition with us for audience, ing characteristic of one pay channel Foic Story. Actually, if s more of a foui^ as being enemies. We are all in this over another will not be the movies but way partnership between Robert Canadian broadcasting scene together. its Canadian content. And its that Cana they can now show on their books that Coopei^s company, an American pay-TV The in-fighting that goes on I deplore. dian content that in the end will deter they're paying you $100,000 and therefore outlet, Super Channel and ourselves. "I think that with the new pay licen mine who will keep the subscribers. If claim that they spent $100,000 on Cana The release of the film, however, is still sees coming on-stream, what we all they make good Canadian content deci dian content when in fact they have only in final negotiations. There's no fixed should be doing, and what Global is sions, they will survive. If they are mak spent $20,000. If s very clever but certain rule but for a show such as this, that doing, is to say, "O.K, they're here. Thafs ing bad Canadian content decisions ly not within the spirit of the law, I have requires a co-production financing with a fact now how can we be stronger by after a while people will say, "Wait a no idea if the CRTC knows that this is other exhibition partners, the largest working together?" instead of looking at minute. I've got three pay services show happening. They must, they absolutely investors get the first release. So that them in an adverserial position. In fact, ing the same American movies." So must. CTV would play the film only after it has the CRTC has stated, both verbally and naturally, they will go with the one that "Scaffolding is like pyramid selling. been released first to the theatres and in writing, that licensees should be has the most appealing Canadian con If s not the cleanest thing I've seen in my then the pay services. working with other licensees to build a tent But at this point in time, from what life. But I'm not so sure if s a terrible better system in Canada. To build better "So, one of the positive effects of the I can see, the distinctions in terms of thing, in a sense. It may not be such a programs. Therefore what we've done Canadian content between all the pay- terrible thing if it enables people to CRTC decision to impose upon the Ca is to say that the facilities of Global and nadian pay-TV Ucensees a high degree TV services are very blurry. make shows and helps them get money the financial commitment at Global is a "In the U.S. the rule of thumb is that from HBO or Showtime. I still haven't yet of Canadian content is that there is a finite amount. It can only go so high. So greater array of new Canadian product people keep a pay service for three made up my mind about whether it is by working with the pay-TV people and months and then start disconnecting it bad or not." that is going to be available for us to together by jointly using our funds we participate in. And CTV continues to be if they don't like it. So here in Canada, can develop higher quality programs. we'll know very quickly, within six or in a position where it welcomes any Because the pay people can put in more new initiative in program opportunities, seven months, that one pay service is dollars they will have the first window. doing okay, maybe two, and the rest are DONALD GINSDERG, be they simply "Do you'want to license But, in the end, by co-operating with the this for CTV exhibition ?", or be they a fighting like mad to keep subscribers. independent producer, based in "I guess the CRTC thought thay by matter of exploring potential creative • David MIntz Toronto, projects at a very early stage «ath an licensing more that one pay service in originating partner. Our criteria are this country there vyould be a more Ginsberg came to Canada from England simple and uncomphcated. One: they competitive aspect to the whole thing. in the '50s to work with the NFB. Even must meet the criteria established for But I think that all that has been done is tually he branched out to work on his Canadian productions to be certified as that the money spent on Canadian con own as a writer, editor, producer and Canadian content... this is a criteria over tent will be diluted. director on a multitude of projects. which we have no control. And second "It will be further diluted by a gigantic Currently, he is working as the eicecutive ly, there must be an equitable financial loophole that I've discovered. It's called producer of"Comedy Tonight", a series arrangement. We can't be expected to scaffolding. Scaffolding is when you sold to First Choice. bear a disproportionally large load of have a U.S. pre-sale of your program to the cost if we don't have a disproportion- either Showtime or HBO that has been "\ was sitting in New Hampshire in ally large advantage in the exhibition. arranged by a Canadian pay service. February of this year, freezing cold, with If we are rated third in the order of They don't charge you anything for some friends of mine and I said that I've exhibition, for example, then the invest doing that, but what they do is make you got to think of something to do that will ment must be rated accordingly. Further, run the Showtime or HBO money through be good for Canada, good for First we can't be expected to put on air an themselves and they license from you Choice, good for me and entertaining at esoteric piece of film that has such a not the Canadian rights but the North the same time. I've always been fond of small marginal public interest that it American rights. Therefore, if HBO is comedy and I said'I've got an idea. We'll -won't suit the criteria of our national paying you 80,000 for your program and get a whole lot of comedians, comedy network trying to reach all Canadians." a Canadian pay is giving you $20,000 directors and comedy writers andinler-
20/Cinema Canada - January 1983 P A T - T V paying up-front and in some cases they want two years to pay. Personally, I think they could be better financed from day one, paying as they go. But anyway, we will be getting our interim financing from Standard .Broadcasting Corp. Three. We will be using the facili ties of Standard's $8 million CJOH complex in Ottavya for some of our productions. We also intend to use film for certain location dramas. I think that producers in Canada will find that in February, March and April, there's going to be real pressures on facilities and thiere aren't going to be enough facilities in Canada to go around. We won't have that problem. "So ultimately, the way the deal will work is that we draw up a budget for a production, which includes the cost of facilities and once the costs of the pro duction have been recouped, we then . share the profits with Standard Broad casting 50-50. Tapestry Productions will be responsible for distribution of the view them all in N.Y., London, Toronto "A year and a half ago, it became obvious dramas to networks in Canada and budget is $200,000 per show. No pre- and L.A. and we'll throw them all to tome that we would see a new television Standard Broadcasting will be responsi sales anywhere but we're confident gether with exceptional film and TV business emerge in Canada with the ble for distribution in foreign markets. we'll sell it to both U.S. and Canadian clips from the funniest shows of the past advent of pay-TV. So I started to do some "Now in my estimation no one in the pay-TV. and I think it would make a wonderful thinking and planning and I knew I private television industry has entered "The third project is called Showbiz series!" didn't want to make documentary films Canadian drama on the scale and with Ballyhoo and is budgeted at $275,000. "My friends all looked at me and said I because they bore me. I realized that the technical resources we now have. We have verbal commitments in the was crazy and that nobody wants an what I really wanted to. do was tell Our objective is to bring the finest Cana U.S. and Canada to buy this show. This anthology show. stories, do drama. I then got in touch dian writers, directors, actors and show is about what Hollywood actors did "I said 'Fine' and got together with with Don Harron because Don and I had • actresses into living-rooms across the in the years following the Second World Michael Short, the Emmy award-win produced a record together called land starting next fall and every year War. The U.S. pay people are willing to ning writer of SCTV fame, and we worked Charlie Farquason's Bible Stories for 3fter that We are now in discussion pay us $150,000 for a one-year lease of together on the concept and whipped it ChildrenTdone last year and nominated with the broadcast and pay-TV networks this film. The Canadian people are wall into shape and submitted the idea to for a Juno Award. So I told Don of my on four exciting shows : Balconville by ing to pay us $135,000 for a one-year First Choice. They loved the idea. interest in drama and he agreed that the Montreal playwright David Fennario; lease. 'That^ght away gives us $285,000 in "They told me they'd give me a license. time was right and he put me in touch Maggie and Pierre written by Linda the U.S. and in Canada and we still I said 'Fine' and had no idea what they with Gary McKeehan who was once his Griffiths and Paul Thompson; Rodeo, a haven't mentioned what we will be meant. Having had no experience with senior producer on Morningside but new play by Saskatchewan writer and getting in world sales as well as leases pay-TV before, I had no idea that license was then an officer with the CRTC in actor Layne Coleman and The Sun Never for future years in Nortli America. So meant that I was giving them in effect Ottawa concentrating on pay-TV. Sets by Stratford, Ontario writer and you can see all the gravy that we are in permission to air my show. So they gave McKeehan and I found we were interest actor, Paddy Crean. Over the next four line to get! me a license to produce one pilot and ed in the same things and so he became years we would like ta spend approxi "Drama, on the other hand, is much then 12 more shows if the pilot was my partner in Tapestry Productions. We mately $1 million per year on produc more expensive to produce. At least a successful. Well, after a lot of delibera both though that, in order to be success tions in Canada." half-million dollars when doing it for tion, I thought that if I was to do one pilot ful in this new area of pay-TV, it would pay-TV and you don't get your money and then 12 shows, it would cost me be important to have a co-production back on drama, not with one sale to nearly 12 times as much as going the 13 arrangement with a major facility. And Canadian and U.S. pay-TV. shows together. And you're not going to we knew that Standard Broadcasting RICHARD GADOURIE, "The reason that I can raise the money get a star like Bob Hope doing a pilot. So Corp. was one of the 28 applicants for a independent producer, Richard for projects like Treasure, Time Ma Michael and I went back to First Choice pay-TV license and though they didn't Gabourie Productions Inc., chines and Showbiz Ballyhoo is that and convinced them. They said 'Fine' get one, they still wanted to remain a Toronto. you get exceptional film products for and nowr everybody's happy. major force in broadcasting. So Gary your dollar and investors get their profits "First Choice has a license on the and I went to Standard and proposed Gabourie has been a writer, actor and right away." project for two years. I own it. I had to this deal to them and right away they producer. In 1976, Three Card Mont^ a arrange outside financing of the project though it was a great idea. feature film he wrote and produced with interim financing. First Choice has "So the way the deal works is this: and acted in, won him an Etrog as best guaranteed me a minimum, and a maxi One. They supply us with development actor. In 1979, he produced Title Shot JACK McANDREW, mum fee will be paid back by them funds. So far we've used these funds to Presently, he is producing three films Jack McAndrew Productions, depending on the number of subscribers. buy rights to four shows and acquire six- for pay-TV, in association with Norm Toronto. There's no risk really because once month options on four others. We've and Gayle Sedawie, two eicpatriate you've sold it to Canada, you still have also spent four months developing script Canadians now residing in California. McAndrewis an independent television the United States, Britain, Australia, New treatments with the writers. Two. They producer who specializes in produc- Zealand and the rest of the world. If s supply us with interim financing. These "One year ago, Norman and Gayle tionsfor the international market. Prior practically guaranteed." pay-TV networks in many cases aren't Sedawie came to Toronto. They had an to forming his own company two years idea for a pilot and HBO was keen about ago, he was head of CBC Variety from it The idea was to do a series of shows 1975-80. Under his supervision, the based on different 'treasures' found CBC scored unprecedented successes around the world. Now the word 'trea both nationally and internationally. RICK OUTLER, sure' is really whatever a person or Highlights include three international president, Tapestry Productions Ltd. culture holds special and important If s a Emmy Award nominations, the winning very subjective word. But not things of an Emmy and the Golden Rose of Butler has had a diversified career as found in museums. So we're shooting a Montreuicfor two consecutive years for an academic at Carleton University, as low-budget show for $200,000. We have the best variety programs in the world. a writer of three books; "Quebec: The no advance sales anywhere but I'm Prior to his term at the CBC, McAndrew People Speak," "The Trudeau Decade" confident that we have an exceptional was producer of the Charlottetown and "Vanishing Canada;" as a docu product for the dollars. Festival and the theatre director of the mentary producer for CBC, TV Ontario "Another pilot we're doing was called Confederation Center of the Arts in and the NFB; and as a producer of 'The World's Great Museum' but we've Charlottetown, P.E.I. records such as An Evening With just renamed it, Time Machines. Again, Stephen Leacock and Gilmour's Album. this is a one-hour documentary about "I think the pay-TV decision by the In May 198Z Tapestry Productions Ltd. three of the world's greatest museums, CRTC to license so many competing pay concluded a co-production agreement namely, the Topkapi in Istanbul, the services was dumb because it leads with Standard Broadcasting Ltd. to Ford Museum in Dearborn, and the directly to 'back-end' deals with Cana develop Canadian stage plays for televi Royal Ontario Museum in Toronto. We've dian content product coming in from sion. shot over five hours already. Again the the outside. By back-end' deal I mean
January 1983 - Cinema Canada/21 P A Y " T IT because the financial security is there. show to happen I have to arrange at made the assumption that they had to If s infinitely more difficult for a Cana least a three-way co-production. Once stampede to other forms "bf pure en dian producer to begin from scratch to you get into three-way things it all starts tertainment and that is not, in my try to get the Canadian leg in place and to get too complicated legally. This in opinion, the easiest area to compete in then to go out and try and sell it on the turn makes it too costly and the kinds of internationally where the British and world market-place. artistic compromises that have to be the Americans, for instance, are very "But I do have three Canadian projects made all start to emerge. sophisticated. with C Channel. One commited on "So I think that the test for the future ""I think that there is also a problem paper and two more which are commit of pay-TV is how many more dollars we here in Canada, inasmuch as there are ed verbally with little wrinkles attached can get out of the First Choices of this many good independent producers with to them which I'm trying to solve at the world causing Canadian productions to good ideas for shows but who don't moment. The commited project is a happen. And what I know is that if we have the expertise to carry those ideas two-hour version of the "Passion Accord could get 50% of our costs on average, we off on a budget and on time for a ing to St. John" by J.S. Bach which we would have a burgeoning production customer, be it pay-TV or network TV. I shall shoot in the Notre-Dame Cathedral industry in this country. What the think there's merit to the argument that in Montreal with the Studio de Musique Germans, French and British have long independent producers should feel Ancienne, meaning it will be sung in the since recognized is that, if there are co- comfortable associating with established style of the 17th century, using 17th- productions, they have to come up with at companies in order to help each other century instruments. It will be shot in least 50% of the budget if they are going build a healthy independent production February as an Easter special. The catch to make the production happen. So if industry. I'd certainly be interested in is I have to raise an additional $50,000 in we, as Canadians, could put in 50%, assisting producers get their projects off order to cover the budget to do it. And whether its by pay-TV or free TV, lots the ground." I'm like most other independent produ and lots of stuff would happen." cers : I don't have a lot of financial resources behind me. So I literally that American producers come to Cana stagger from project to project." da with 80% of their financing in place MICHAEL MACLEAR, from commitments they have with president of Cineivorld, an Showtime, say, and then make a deal independent production company. with First Choice based on the fact that PAT FERNS, the programs will quality as Canadian president, Primedia Maclear established his company in content. And you have to make a distinc Productions Limited. 1978. after an illustrious career as a tion between Canada content and Cana foreign correspondent for both the dian programs; they tend to be two Perns is recognized internationally for CBC and CTV networks. Between 1960 different things. In other words, a pro the quality and success of his programs and 1978 he reported from both North gram that has very little relevance to over the past ten years. He is also the and South Vietman. Presently he is Canada per se can qualify as Canadian immediate past president of the Cana producing a 10-part documentary on content And now Canada has become dian Film and Television Association. General Douglas MacArthur for the First the happy hunting ground for American Ferns has recently completed the televi Choice pay-TV network and Channel 4 producers who come here to make sion version of Billy Bishop Goes To in England. Based on William Man deals in this way. War, a co-production with the BBC, and chester's book, "American Caesar," the "For example, I worked on such a has many other projects currently programs will feature interviews, series, a show called "Romance", six underway. Among them, the National archival footage and relevant stills, all two-hour soaps, and each two-hour was Ballet of Canada's production. The structured around the on-camera broken into five 'storials' as they're called. Newcomers, scheduled to be shown in presence of John Huston as the "voice A 'storial' is like a serial really, with each the new year on C Channel. of MacArthur." John McGreevy, respon plot being played out in five pieces. In sible for the "Cities" series, is directing "Romance" I got taken on as the supervi "I think that over the past years we've the project which will be completed in sing producer and I ended up doing a lot seen a number of independent TV June. of the writing because the writing was companies go down because of a lack of so bad. A company called PKO out of a market here in Canada. And now, New York produced the show using ironically, I think that you'll see a couple Glen Warren facilities. I was the Cana more companies go down because of dian production company. I also worked the emergence of the pay-TV market. Jan Piatt, standing, left; Mike MacMillan, on another one called "Something's This is because people have got unreal standing, right; and Seaton McLean, seated Afoot" Again, an American production expectations of what is and isn't possible, company came into Canada with Jean and they may over-extend themselves. Stapleton and Andy Gibb and then hired "Up to now, the market has simply not JAN PLAH, an additonal eight or nine Canadian been here in Canada and I'm not sure performers. This was shot at the Elgin that pay-TV will necessarily change that. MIKE MacMILLAN and Theatre and qualified as Canadian con For example, we, at Primedia, have SEATON McLEAN are three young tent. Again, a Showtime project and sold been sitting on literally $15 million worth partners in a successful independent to First Choice. Again back-end financing. of developed Canadian drama which production company, Atlantis Films And they save 20 cents on the dollar. As had 50% of costs guaranteed in pre-sales Ltd. in Toronto. Featured in last well, because the shows are shot here to other counfries and yet we couldn't month's Cinema Canada magazine, they the value of their product is inflated by a move any of it in Canada because there are most noted for having produixd factor of four or five because if they sold wasn't a market to support the other Margaret Laurence's The Olden Pays it here directly, the series might be 50%. I'm lucky if I can get 20% of my costs Coat which will be shown on Christmas worth only $50,000 a show but, qualifying here, say, with the CBC. So if I want a Eve on CBC-TV. Presently they are work as Canadian content, if s worth $250,000 ing on si> half-hour drams aimed for a show. • Pat Ferns family viewing as well as a seven part "Now we can't do the same in the U.S. half-hour series of kid's variety shows because the U.S. market is different It for C Channel. tends to have a distinct bias towards American product. As well, Americans "We don't think that Canadian pay-TV is tend to think that they know how to do it the pot of gold that some people think it better than anybody else and, therefore, "As an independent producer, I've had is. First, as Canadians, we are already if you are a Canadian trying to sell into to sell to foreign markets as well as the most heavily cabled country on the United States, your credibility is of Canadian markets in order to survive. earth and a lot of people don't think the the absolute extreme importance or And as an independent production penetration of pay-TV will be all Hl^ they won't look at you. One of the company we decided to stick to making high. And second, for the first year Oir reasons that I did these jobs was to build what Canadians are noted for, docu two, the pay services are going to he up some credibility in terms of Showtime. mentaries. I have found that producing stabilizing themselves and produced If you work with Showtime you have the a good documentary based on interna are going to have to wait until late '83 or chance to prove that you know what tional appeal has as good a return, even '84 before significant programming sometimes better, than many other will be contracted. Until then, they'll be you're doing. forms of pure entertainment. We've got "What has been happening in Canada buying a lot of American stuff and a company on a really sound basis by Canadian product off the shelves. is largely a matter of circumstance and doing documentaries. 1 think that too "Nonetheless, we are producing a con\'enience. It's relatively easy for First many independent producers have Choice to make those kinds of deals . seven-part half-Tiour series of kids' enter-
22/Cinema Canada- January 1983 P A Y - T V tainment shows for C Channel called Couples' but if the show is successful, their home... or not wear. Our lingerie of really taking a risk because you're "Troupers'. We're doing it in conjunction we'll do 80 between now and April. budget is very good and all our perform depending on the number of subscribers with Usher Sharpe Productions. Bill David Jacobs, the executive producer of ers are going to feel good when they're they can attract to their service in order Usher, who has a background as a record 'Dallas,' created the concept for this on the set. We would say that the adult to look at your long-term recovery of producer for kids, was the original series by sitting down with the people themes dealt with on our 'show are costs. There's no guarantee of an upside producer for Sharon, Lois and Bram. from Showtime who have had the expe honest. The last thing we want to be on or a downside, although now they are It will be a variety show with singers, rience of producing, not successfully, our show is cutsie or naughty or risky or beginning to look at minimal guaran musicians, clowns, and mime artists. cable ""adulf entertainment. So Show coy. Those are not the values we are tees. We've had guarantees from two We found C Channel very eager, helpful time is after a new direction and created interested in at all. Our characters are pay operators here in Canada and I and forthright with us. They don't have this series with David because he's been going to be able to talk much more guess we're hoping that it won't be too much money, which is a problem, and so successful in prime-time TV. This honestly and frankly and naturally on long, once they begin to get into opera they'll tell you that right up-front. But series came out of a series of conversa this pay-TV show than if we were doing tion, before they'll be able to put some working vvith them has been a pleasure. tions about Showtime's previous failures this for free TV with censor boards money up-front. But I can understand "From our vantage point, given the and successes. looking over our shoulders saying we their problems right now. fact that there's a retrenchment in the "As producers we have the opportuni mustn't entertain these thoughts because film and television industry, we've found "We've run into producers who have ty to do two things that we don't think it would not be seemly for our audience. a new spirit of co-operation between not been able to make deals with the have been well done yet. One is to ""On January 21, we'll know if the broadcasters, pay people and indepen U.S. and have not been able to put produce quality drama with a multiple series will be extended. The STV's will dent producers. Out of necessity, I guess. together strong packages, and they feel camera television studio situation, trying start showing it in December. Showtime People are suddenly willing to partici that whatever their financing, they to give the show a film look. The other starts in early January. In Canada, it pate in projects with others and if you should be able to be funded 100% off the thing is to produce it on a schedule starts in February. The show will be put enough pieces together, you can top out of Canada. But what Canadian which is a back-breaker, that is, four played only three or four times before make the pie, make the project. Outside producers have to start realizing is that half-hour shows a week. We've got 17 the executives decide whether to extend Canada, pay-TV is very successful. There they are not competing against Insight sets built for the first 15 shows and they the series or not. I hope they say we've are failures like CBS Cable, but by and Productions down here on King Street are as big as houses. Some of our sets are got a winner here." large they are doing well. And it's the or Atlantis Films on Church Street, but standing sets, they remain; but there are , only thing that Canadian producers have you're competing against the fucking a number of satellite sets that must be relatively easy access to. They want world and people don't realize that. changed at night in order to bring in programming and yes, they'll buy Cana They still have a small-town mentality new ones. The logistics of changing the dian or anybody else's for that matter, if about the world of entertainment. And sets is one of the biggest problems we JOHN DRONTON, ifs good and if if s what they want. it is the world of entertainment when it have. So we intend to work 24 hours president, and While U.S. networks are virtually closed comes to variety entertainment and fea around the clock getting the sets and shops, on U.S. cable you can actually sell IAIN PATERSON, ture films. lights ready. We've got good scripts. All your stuff." producer. Insight Productions. "And w^hen I say, strong financial the writers come from LA. David Jacobs package, I mean that there are Canadian hired them a long time before he even These two up-and-coming producers producers, who because of their relative knew that he would shooting in Canada. have a half-dozen projects with the pay inexperience in the U.S. marketplace, They come from a pool of writers who television operators, including a musi have not been able to get into HBO or CHRISTOPHER DEW and have been working in dramatic television cal special called "Indigo", a comedy showtime or the entertainment Channel for years. It was our intention to have feature film, a 26-part rock and roll or PBS or the networks and say, "This is TOM CHERONES, 100% Canadian cast, however. So we series, a 26-part comedy series, two who I am. This is what I am currently in Lorimar Productions, Toronto. offered all the roles to Canadian actors. special-effects specials, and an adven production on. Are you interested ?" We We were refused by some and so have ture movie. Over the past five years they found that the key thing to selling to the Lorimar Productions of "Dallas" and three American actors. have sold scores of shows around the U.S. markets is getting into that psyche, "Knot's Landing" fame is currefitly "The budget for the 36 shows is in world and especially to the American for starters. To be able to feel the same producing, in association with Global excess of three million dollars. If the pay services, HBO and Showtime, as way when you fly on an airplane to Television Network, a series of half- series is prolonged, it will be over seven well as to the major American net Ottawa or Montreal as you do when you hour dramas under the working title million. It's a lot of entertainment for the works. They'vejust completed work on fly to New York and not be frightened, "Loving Friends and Perfect Couples." ilioney... 36 shows for three million a three-hour rockfn roll show, "Heart of not be scared that they know more than Hired to produce the series in Canada dollars Canadian compared to the aver Gold," that was broadcast on the CBCon you do. The whole thing is that every are Christopher Dew, who produced age half-hour situation comedy in the Dec IZ, 13 and 14. It is no exaggeration body believes, or a lot of people believe "The Littlest Hobo" at CTV for four U.S. which is $275,000 American. So to say that their output in the past five that the Americans will beat your ass at years, and Tom Cherones, an American we're doing three or four shows here for years has been prolific Brunton, 29, what you do. And as soon as you get freelance producer up from L./\.forthe the price of one in the U.S. We're saving andPaterson, 32, are undoubtedly part down there and into the network situa duration of the project. Showtime in a lot of money. As well, we're certified as of a new, thriving generation of Cana tion or HBO you realize very quickly that the U.S. has bought the series together Canadian content by the department of dian supers producers. they're playing in the same game that witha group called the STV's, which are Communications in Ottawa which guar you are. If some of these Canadian independent over-the-air pay sub antees us sales in both countries. ""As soon as the decisions came down producers would just take the step to go scribers. In Canada, negotiations are "This drama that we are shooting for from the CRTC as to who got the pay-TV into the American market-place, they still under way between First Choice pay-TV will be different from what you licenses, we made a point of learning as would find that they would gain a lot of and Super Channel as to who will carry see on free TV because we have to pay much about it was we could. Then we confidence immediately, that they are the program. less attention to the kinds of words proposed a number of projects based on really not that far behind. used. We can be a little freer with the our anticipations of what direction they "I think that there's one thing that "We are currently contracted for 36 language as well as with the amount of would be going in. It took the pay ser Canadiari producers can do if they want episodes of 'Loving Friends and Perfect clothing someone might wear around vices a while to get their houses in order to create some American experience for and it now appears to us, through our themselves and I think that ifs very negotiations, that they are ready to start positive. It might seem initially that you making some solid commitments. Based might lose a lot of control by doing it, on our experiences, this is how we think and my experience has been reasonably all Canadian producers should deal positive, that is to get a project which with pay: you think is a good international project "One of the things we feel is that we and to go down to L.A. and to talk to a look at Canada in the North American dozen strong U.S. production companies context and there's an enormous market and say, "Look, this is a project that I in the U.S., which if you're creating your have, this is what I csm bring to it, now projects mainly for Canadian pay, you you bring all of our strength to it and you won't be able to take advantage of and take it to the networks. Lef s do it toge thafs not really logical - in the context ther and you take it to HBO " I think that of this total market - to derive a 100% of we can look at positive co-production your funding in Canada. It just isn't arrangements with American hitters to possible. So what we've done is try and create vital experience for Canadian look at the sales potential of a picture off producers. the top and to look at pre-sales with "What I think pay-TV has done is add HBO, and Showtime and the Entertain new players to the game so that now, ment Channel in the U.S., while satis instead of having to go to the CBC, CTV fying the needs of the pay operators up and Global to get your money, you now here. go to pay-TV first, then you go to the free "For the independent producer, selling broadcast, then you go to syndication. a show to HBO will guarantee you money So it really does represent a great deal on delivery, whereas selling a show to more revenue for the producer. the Canadian pay operators is a matter "I'd also like to say that the people at
January 1983 - Cinema Canada/23 P A Y - I W and everybody loses and 1 advise any body not to do that. We have been totally up-front with the pay people^ That means we've told First Choice raactly what Super Channel is saying to us. And Conclusion we've told Super Channel exactly what First Choice is doing. And we've talked The biggest untold story about the §• the numbers over freely and everything's television revolution taking place in above board. We don't try to do any side- this country is perhaps not pay-TVatall runs around anybody. We'll expose but rather what is coming in its wake- openly to all the players because each namely, special event, pay-per-view TV, h project needs co-operation between Pay-per-view TV began with cham these people. Even the networks are pionship fights and in the future will going to have to start co-operating with include the whole spectrum of sports, 1^ pay-TV. And not enough producers real blockbuster movies, star-studded m^ wm m^ 1 ize that everything is negotiable, includ specials and interna tional happenings. BsHn ing how you put all the parts together. The latest in cable technology, the You've just got to go in there and keep Zenith Z-Tac converter, makes pay- ? trying to get what you think your project per-view TVpossible. The Z-Tac is elec ^^^ is worth. tronically addressable from a central "One last bit of advice. A lot of Cana computer which means that cable bill MM ^^ {r^9ll^k^MH»H»»..'~..^,i.J \m dian producers don't have a lot of ex ings become automatic If the customer \ *^ -tfW perience from a business stand-point. doesn't pay, the signals to his set will ' '-:iiy"' And if thafs the case, then they need an revert to a scrambled image or will be agent. Until you come to grips with how turned off. "tmmJm-.^' • ^ «•» to make a deal on a financial basis you Some industry eicperts are calling • tain Paterson, standing. and John Brunton won't win... and as a lawyer who once pay-per-view TV the bonanza of the acted for me a long time ago when I was future. This serves to illustrate very pay-TV here have been most aware of to a meeting-ground where we can all very stupid and very young and very clearly the dilemma of our times. IVo the producers' problems with different work together in a co-operative way. dull said that "the only creative people sooner do we learn how to deal with kinds of financing and they have been And pay is more than eager to help you that get anywhere are people who under one hell of an upheaval to the system, very sympathetic and helpful in working work out problems. A lot of people don't stand the money. And if you don't undei^ than another, even greater one, beckons, our problems out with theirs. And I see it as that They think of it as combat. stand the money, you're going to get hit commanding our attention. think thafs tremendous. There's nothing We've heard of stories where some every time. Somebody is going to take that says that you have to accept their producers are trying to work them off you to the cleaners - no matter how first offer. We have to dialogue and get against each other. That can be a disaster great you are.' "
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24/Cinema Canada-January 1983