A year of acquisition, expansion

Canada’s public production companies have been in the spotlight as the industry scrutinizes the activities of its largest producers for indications of how this new scenario will affect the production business in Canada.

While individual companies’ strategies differ, they have in common a new operating reality – answerability to shareholders, and less national and more international emphasis.

Here’s how one of Canada’s public production companies played out its cards in ’94É

The new offices smell of a fresh coat of paint; sawdust still flecks the reception area carpet; the etched glass picture window has just been installed. Toronto’s Paragon Entertainment is moving up and onward.

Paragon buzzwords this year have been acquisition and expansion. 1994 highlights include: clinching a major European production base and film library with the purchase of HandMade Films in London, Eng.; announcing major coproductions with the cbc (Alice Munro’s Lives of Girls and Women) and pbs children’s television (Kratt’s Creatures); and an order for 26 new episodes of the acclaimed vampire series, Forever Knight.

Caught your breath yet?

Expansion has meant opening new family entertainment and syndication divisions, both based in Los Angeles. This, along with the HandMade buy, assures Paragon control of its own destiny as a key player in the production and distribution of quality television product.

But the year also saw a more modest production output and profit base than in the past.

‘This year was a positioning year,’ says Paragon’s director of communications Anne O’Hagan. ‘There was speculation about what the company was doing because our activities were conservative.’

Paragon’s recent expansion was neither sudden nor impulsive, but came about organically, says O’Hagan. Family syndication grew out of the successful distribution of the Emmy-winning Lamb Chop’s Play-Along, and the $8 million, 50-episode coproduction of Kratt’s Creatures evolved from Paragon’s working relationship with pbs, which also grew out of Lamb Chop’s Play-Along.

‘People were encouraging us to start doing these things,’ says O’Hagan. The timing seems to be right.

Paragon’s vision embraces all the possibilities for the information age. While opportunities are wide open for television in the new 500-channel universe, Paragon has already gone beyond traditional broadcasting into tomorrow’s telecommunications markets. The company recently shot the live-action segments of Fahrenheit, a new interactive video game for Sega of America.

For all venues, Paragon regards itself as a producer and buyer of quality programming, regardless of origin. ‘We are not a border company,’ O’Hagan says. ‘We want to produce and distribute programs that are good for business.’

She speaks of the frustrations Canadian producers experience at home when trying to get good product exhibited. It’s hard to understand, for example, how Forever Knight can be a hit in the States but has yet to be shown here.

Also, as a public company, Paragon owes a primary allegiance to its shareholders. Which means Cancon is not necessarily a top priority.

Instead, Paragon actively responded to American networks’ demand for high-caliber, affordable product: the company now has development branches operating out of Los Angeles, Vancouver, and London, Eng.

‘If we make and sell quality programming, it will find an audience anywhere,’ says O’Hagan.

What’s on deck for 1995?

‘We have 20 development deals in the works, including one called Rent A Kid starring Leslie Nielsen. And we’re confident that there’ll be a series deal with one of the networks by March of next year,’ she says.

All this from a Canadian company that has recently grown from a staff of eight to 40. To make room, they’ve punched a hole in the ceiling of the Toronto head office and renovated the floor above.

‘People are surprised at the size of the company,’ says O’Hagan. ‘We’re a lot smaller than we seem to be.’

Perhaps that’s because while maintaining an aggressive vertical climb, Paragon still has the feeling of a close-knit family working amid the excitement of great things happening.