The managers of Arts et Divertissement, the new French-language specialty service focusing primarily on documentaries, are presently conducting key negotiations on tier-pricing with Quebec’s cable distributors.

The crtc has granted a&d a ‘modified dual-status,’ and although Videotron, Quebec’s largest cable company, initially opposed distribution of a&d on a discretionary tier, the other operators, Cogeco and CF Cable, earlier stated their support for this approach. Apparently, Videotron has now moved closer to this position. The reason: the specter of a ‘deflationary’ Quebec economy and the hard fact that cable operators stand to make very little profit if the new service is delivered on basic, three cents per subscriber per month out of a wholesale charge of 65 cents.

Depending on penetration levels and the outcome of talks with Quebec and other eastern Canadian cable operators, a&d is tentatively projecting annual revenues in the $12 million range.

Pierre Caron, executive vice-president of Premier Choix:tvec, which operates a&d, says documentaries will make up about 75% of the service’s primetime schedule.

‘Documentaries is one of the strengths of Canadian production, but it’s an underexploited area,’ he says.

The balance of a&d programming will be classic films no less than seven years old, television series broadcast at least five years ago, and variety and performing arts programs, including comedy, music and theater. Producers seeking a&d investment in new programming must subsequently focus on variety and performing arts production.

In this regard, Caron says the service will favor programming which highlights new talent or is produced in association with existing festivals and cultural events.

Caron says that while a&d’s Cancon level is 30% overall and in primetime, 60% of the actual program budget will go to Canadian productions. Of the $4.8 million earmarked for Canadian program acquisitions from independent producers and distributors in the first year, fully 50% will be invested in new production, most of which will premiere on a&d.

In subsequent years, Canadian program expenditures have been set at no less than 40% of the previous year’s gross revenues.

Caron says $3.9 million will be spent on foreign programming, including programs from Arts and Entertainment in the u.s., and coproductions jointly financed by a&d’s European partners – Planete, Channel 4, Canal Plus, Paris Premiere, France 1 and France 2.

In a speech delivered to the apftq, the Quebec producers’ association, on June 18, Caron said a&d wants ‘real documentaries,’ not talking-heads or public affairs programs or other types of magazine shows shot in studio.

The new service will give priority to long-form documentary productions and envisions at least two weekly one-hour long-form series showcases. No feature films other than documentaries will be broadcast in primetime.

Caron says a&d has concluded an advantageous agreement with a&e in the u.s. that gives Canadian producers a potential window in 50 million homes in the States and some five million in Canada. The deal calls for a&e to reinvest all of a&d’s acquisition spending with a&e, between $600,000 and $700,000 annually, in the financing of new Canadian production or acquisitions.

English-language producers should note: dubbing requirements have been pegged at $1 million per year. This work must be done in Canada. Closed captioning is required for all original Canadian programming: in year one, at least 1,116 hours at a cost of $90,000, increasing to 1,527 in 1997/98 at a cost of $123,000.

Caron says 12 to 15 new staffers will be hired including programming, marketing and finance personnel. New broadcast equipment will be installed at Maison Astral. Once the new personnel is in place, producers will be invited to submit project proposals, around mid-August and September.

Arts et Divertissement

2100, rue Sainte-Catherine Ouest,

bureau 800

Montreal, Que. H3H 2T3

Tel: (514) 939-3150

Fax: (514) 939-3151

Contact: Pierre Roy

Lifestyle Television

P.O. Box 158

Winnipeg, Man. R3H 02S

Tel: (204) 784-6555

Fax: (204) 956-2710

Contact: Barbara Barde,

v-p programming