Canadian outfit

Viacom, the U.S. media giant that set out a $10 billion takeover bid for Paramount on March 11, has announced the establishment of Viacom Canada, an outfit with $1 million a year over five years to spend on Canadian culture.’

At a press conference earlier this month, Viacom executive vice-president Philippe Dauman confirmed the Canadian company will have no assets and no Canadian operations, with operating units out of the U.S. to ‘co-ordinate through Canada.’ He also said Viacom ‘understands the cultural imperatives of the Canadian creative community.’

The buyout of Paramount, which includes takeover of Paramount Pictures Canada, Famous Players, 49% of C/FP Distribution, Ginn, Prentice-Hall Canada and Maxwell Macmillan Canada, is still under review by Investment Canada.

Speculation is that Viacom Canada is nothing more than sweetener for the federal government. Dauman denies any such motive, saying the move is ‘not part of any commitment to the (Canadian) government.’

Helga Stephenson, former Toronto International Film Festival head, is chair of the new company and music promoter (and former Festival of Festivals chair) Allan Gregg is president. Both positions are part-time.

Viacom Canada’s first initiatives include donations of $75,000 each to the tiff’s gala series and to the Canadian Film Centre’s lecture series as well as sponsorship with the Charles R. Bronfman Foundation of the next round of a multimedia program promoting Canadian history (which includes the televised Heritage Minutes).

Alliance Communications, Atlantis Communications, Cinepix and Cinar Films were cited by Dauman as examples of companies Viacom Canada is looking forward to working with. They are ‘Canadian success stories precisely because they have been able to appeal to markets not only in Canada, but in the United States and internationally,’ he said.

Stephenson says she expects Viacom Canada to ‘assist the Canadian cultural community, in particular, the non-profit (sector).’

And Gregg assures that the new company will ‘not stand in the way’ of existing relationships between the Canadian and American production communities. He sees the establishment of Viacom Canada as providing ‘connections to exhibit our product internationally as well as domestically.’

In accepting the grant from Viacom, tiff director Piers Handling said this ‘advocacy of Canadian culture is welcome.’

Viacom, tied with Paramount Canada, is responsible for 6,300 jobs in Canada. Paramount Canada has invested $200 million over the last five years in film and television production in Canada.

Viacom Canada’s board of directors includes distributor Andre Link and Famous Players president Joe Peixoto.

According to Stephenson, the company will be ‘exploring new ventures in the Canadian marketplace this summer.’