Special Report: The Year in Review: 1995 was a year of pivotal changes and expansion

The last year has witnessed more pivotal changes in the television production-distribution landscape than perhaps the last several years combined. Megamergers in the u.s. and program localization in Europe are among the developments that have profoundly influenced the industry.

In business, there is not much time for reflection. Decisions must be made that enable companies to pierce beyond the horizon. We need to constantly develop options, and act on our choices.

Companies need to prepare for the changing landscape by continuing to pay attention to producing quality programming that will transcend borders, and by forging business associations with leading companies throughout the u.s. and the international marketplace.

For many, megamerger-mania has sounded off alarm bells. However, newly merged companies are actually creating opportunities within the international scene, with many of these companies launching operations in territories that have historically been difficult to penetrate.

By expanding their operations into Asia, Latin America, Africa and other territories, these newly emerging companies are creating a competitive marketplace resulting in new windows for product.

Cultural migrations of u.s. specialty channels resulting from merged companies such as Nickelodeon in the u.k. and Germany, and Family Channel and Turner Cartoon Network in Asia, India and Latin America represent examples of this exciting expansion.

In the u.s., independent program suppliers must alter their strategies in the face of changing network ownership, oversaturation of programming and lower network licence fees.

If the u.s. market generally remains oversaturated with product and u.s. licence fees remain at lower levels, program distributors must be prepared to seek opportunities within the international marketplace, which has already more than compensated for the lack of growth in the u.s.

While licence fees have been frozen in the u.s. over a 10-year period, the value of an international show has increased seven-fold – more than compensating for the u.s. slowdown and fueling worldwide demand.

While many program producer-distributors, to a large degree, maintain a traditional ‘u.s. first’ approach in their program production and marketing, television distribution companies today should adopt a more global perspective toward the development, production and distribution of their programming.

It is important to avoid the pitfalls of trying to market internationally what may be essentially u.s.-oriented programs, and begin to acknowledge the significance of delivering culturally transparent programming. It is important to not only build international coproduction alliances, but to take advantage of the experiences of partners in shaping projects to suit the international audience.

Keeping abreast of changing market tastes in programming is also essential in staying ahead of the curve. For example, marketplace demands in animation have shifted away from violence in favor of more traditional entertainment.

In addition, the worldwide lobby to increase educational programming has encouraged a greater demand for programming that is entertaining but also offers educational values. Companies involved in children’s entertainment must meet marketplace needs with programming that will travel well, reflecting the demand for quality, pro-social material.

Independents should also understand how to effectively take advantage of government funding programs. Operating under different names, Canadian government-induced funding is in a state of flux, making it difficult for producers to plan ahead. However, the crtc’s creation of the Cable Production Fund should support the production of quality Canadian product. The cpf provides an anchor for production during these evolutionary times, allowing companies to ‘investment spend’ or deficit finance their projects.

While government funding continues to evolve, Canada maintains coproduction treaties with countries around the world, allowing companies to build production associations with partners throughout the globe.

After establishing successful international coproduction associations, producer-distributors can then introduce their projects to the u.s., in essence reversing the standard North American operating procedure. As a direct result of this approach, companies will become far more than simply suppliers to the worldwide marketplace – they will emerge as integral members of the global production/ distribution community.

Through forging international associations, keeping current with funding programs and always seeking new opportunities, independent producers will help ensure a bright future.

michael hirsh is chairman of Nelvana, Toronto.