The crtc decision to allow infomercial networks to circumvent the broadcast licensing process has kick-started the stalled Canadian infomercial production industry. Three weeks after the commission’s announcement, at least one new infomercial service is getting set to launch and two existing home shopping services are considering using more Canadian-produced long-format advertising.

Unlike its u.s. counterpart, the Canadian infomercial industry has so far failed to take off. American viewers are a proven commodity, spending about $1 billion on advertised products in 1994, according to statistics from the Canadian Direct Marketing Association.

But in Canada, long-format commercials are a largely unproven media. Advertisers have been hesitant to invest the $250,000 to $400,000 needed to make them, citing lack of evidence that they work this side of the border, and a dislike of the stop-motion format that reduces the talent to robot-like motions and turns off viewers.

But two separate crtc decisions are breathing some life into the business. In October, the commission lifted the time restrictions on infomercial broadcasts so they could be aired anytime of the day or night; most recently, it exempted shopping and infomercial programming services from having to hold a broadcasting licence from the crtc.

Opportunity TV

Already Quality/Dino Entertainment, a Toronto-based marketing company that specializes in music, video and specialized consumer products, and WIC Western International Communications, are negotiating with cable operators to launch Opportunity tv, a 24-hour infomercial service, says Dennis Garces, creative director for Quality.

Opportunity tv is scheduled to launch within the next two to four months. Quality, which produces infomercials and videos for the u.s. market, will produce four hours of programming in-house for the Canadian service and sell the remaining airtime to advertisers.

While new services need new programming, the established services are looking at using infomercials now that full-motion is allowed. The Canadian Home Shopping Network, which traditionally featured still photographs of products and a voice-over to sell them, is considering incorporating infomercials into its programming schedule, says Ed du Domaine, president and ceo of chsn

The quality of the programming will ultimately decide whether chsn uses infomercials to sell Canadian goods and services in the 5.3 million English-speaking households the service penetrates, says du Domaine.

‘Motion is going to be wonderful,’ he says, ‘but it’s going to have to lead to the production of good content.’

In the meantime, the Rogers Communications-owned service will complete the process of switching its stop-motion programming to full-motion by the end of this month.

Valu Plus, another Rogers-owned service, is moving more slowly, changing only some of its stop-motion programs to full-motion.

Bob Tadman, director of sales for Valu Plus, says there’s been an increased response to 30-minute spots for Cantel and Regal Capital Planners, which began running in full-motion for the first time earlier this month. Both spots were produced by the Toronto-based Channel 500, a producer of direct-response television programs.

Valu Plus executives are in the process of clarifying Canadian-content rules for infomercials laid out by the crtc in the licence exemption order. Commercial programming ‘must originate in Canada and make predominant use of Canadian creative, and we want to find out exactly what that means before we move forward,’ says Tadman.

‘But definitely, the need for Canadian advertising programming has increased.’

More interest

Lisa Brown, an infomercial consultant who has written 30-minute programs for such clients as General Motors, The Royal Bank and Dupont Canada, says there’s been a tangible increase in interest from agencies and clients since the crtc made the licence exemption decision public.

New services won’t have the luxury of filling programming time with the ample supply of American-produced product, says Brown. Although the commission hasn’t spelled out a percentage of Cancon the services must adhere to, they’ll be under pressure from the crtc and private broadcasters to adhere to Canadian-content guidelines similar to those imposed on licensed broadcasters.

‘They’re going to need to regulate themselves or risk the private broadcasters shouting that they’re abusing the freedom of not having to go through the licensing process and lobbying the crtc to increase regulation,’ says Brown.

According to Tadman, Valu Plus has already established its own Canadian-content guidelines. The fax machine lit up once word of the crtc decision circulated around the u.s. industry, but there are no plans to add more American full-motion programming to the service, he says.

Content for Valu Plus has been about 50% Canadian and 50% American since it launched in 1991. ‘But we’re in the process of putting a self-imposed rule on Cancom, with minimum 60% Canadian programming,’ Tadman says.

Besides the difficulty of finding enough Canadian-produced infomercials to fill airtime, operators starting up new services face the challenge of finding cable networks with excess channel capacity, says Jay Thomson, vice-president, legal and regulatory affairs for the Canadian Cable Television Association.

Cable operators are in the process of rebuilding their factories to accommodate fiber-optic technology, which will eventually yield more channel outlets. But in the short term, cable operators are short on space, especially after adding the eight new specialty services in January, Thomson adds.

The ccta is developing guidelines for cable access for the new genre of services that don’t require a broadcasting licence. Comments are invited until mid-March. The goal is a policy that ensures a clear, open and non-discriminatory way of choosing which services will be part of the cable package, says Thomson.

Over the next few months, the home shopping services will be looking at creating individual brand identities.

chsn is preparing to relaunch the eight-year-old service and make new investments in advertising its programming. Possibly, the network will begin using a signature voice which will contribute to brand identity, says du Domaine. The company is also looking at broadcasting in the French-Canadian market.

Quality, owned in part by Rogers, will produce four hours of programming for Opportunity tv, including a celebrity hour in which stars will sell different products; an investor’s showcase hosted by local personalities; and a music video hour featuring new Canadian talent and selling their tapes and cds. A daily talk show that would sell goods and services is also a possibility, says Garces.

Programming of this kind will be subject to scrutiny by private broadcasters who will be watching the unlicensed services to see that they are meeting exemption criteria. The order specifies that programming must only be used for the sale of goods and services and prohibits any programming that falls under the categories of news, analysis and interpretation, reporting, religion, sports, music, education, entertainment, music and dance, game shows, and human interest.

How the regulations play out if a service produces a weekly music program that also sells goods and services will become clear once the services are up and running.

Lise Plousse, senior communications officer for the crtc, says the commission may do a regular spot check of the services once they’re operational, but will rely in large part on the private broadcasters to police the programming on the unlicensed services.

‘If they felt that the teleshopping services, operating without a licence, were operating outside the exemption criteria, going over the line and taking their viewership, I’m sure they’ll let the commission know and we’ll review it.’

The cdma estimates that the Canadian infomercial market could be worth $300 million. One-tenth of the billion dollars in 1994 u.s. sales are Canadians shopping on cross-border stations.