sci-fi channel

Atlantis Communications unveiled plans for a Canadian science-fiction channel and an animation channel at the company’s annual general meeting in Toronto May 31.

The sci-fi venture, which ties in with Atlantis’ plethora of sci-fi productions such as TekWar, Kurt Vonnegut’s Harrison Bergeron and The Outer Limits, may well be hooked up with the Sci-fi Channel in the u.s., according to Atlantis coo Kevin Shea.

‘It will be an Atlantis-controlled application,’ he says. ‘We’re in discussion with the Sci-fi Channel in the States but we haven’t closed a deal yet. We hope to in the next couple of weeks and we hope they will be one of our minority strategic partners.’

Shea won’t reveal details regarding ytv’s interest in an animation channel, but says the youth network has always been keen on the idea.

‘For the last four years it’s been very clear that if there is going to be an animation service they want to be it,’ he says. ytv was initially involved in Cinar’s application for fun tv but withdrew at an early stage due to what Shea called ‘some unrelated matters.’

The company’s stake in broadcasting came up at the close of the meeting when ceo Michael MacMillan was asked if listing the stock in the u.s. is in the cards. MacMillan said a u.s. listing is not likely for now because of a stipulation in the Broadcasting Act which says a Canadian broadcaster must be 80% Canadian-controlled.

However, that could change, said MacMillan, pointing to a statement made by Heritage Minister Michel Dupuy that the foreign ownership clause in the Broadcasting Act might be ‘harmonized’ with the Telecommunications Act, thereby increasing the allowable percentage of foreign ownership from 20% to 33%. Dupuy is expected to make an announcement on the issue later this month.

While Atlantis’ interest in more broadcasting activities – in addition to its controlling interest in Life Network and a 28% share of ytv – comprised the bulk of news at the agm, Shea says it’s not the company’s main focus.

‘If we look at most of the public production companies, we’re all saying that in the future we want to be part of, in particular, the specialty broadcasting arena because we see it as the next logical step to getting closer to the viewer. However, so we can keep this in perspective, 90% of our revenues are coming from Atlantis Films and that’s going to continue for the foreseeable future.’

Atlantis Films, the production division of the company, reported its ’94 production slate increased 89% over ’93, a figure that far exceeds company expectations of gradually building production by about 20% each year for five years beginning in 1994.

Little in the way of production news came from the meeting except more details on the new one-hour series for Global Television, Traders, which Shea joked is about ‘all the crime and sex in Bay Street lifestyles we have come to know of in the last year.’

Revenues for 1994 are $115.2 million, up 51% over 1993, and net earnings are reported at $7.9 million, a 34% increase over ’93. Earnings per share for 1994 are down to $0.91 from $0.99 the previous year.

MacMillan said among other things, the drop means the partners in the company will not get a raise this year.

The loss in earnings per share was connected to a greater number of outstanding shares in 1994 over ’93 as well as ‘narrower profit margins’ on expensive productions such as TekWar and The Outer Limits.

At the meeting, MacMillan also discussed the company’s interest in third-party distribution agreements, and cited Atlantis’ minority interests in Salter Street, Great North and Credo Group as key to this strategy.

MacMillan also said the Atlantis library is ‘coming of age,’ meaning rights to programs such as Maniac Mansion and African Skies are back in the hands of the company.

The 1995 board has one new member: Tom Volpe, cfo of InterPublic Group of Companies. PC