Vancouver: Television production sponsored by WIC Western International Communications will not be affected by the broadcaster’s latest would-be spoiler, says the head of WIC Entertainment.
Dale Andrews, says that even though dissident shareholder Oppenheimer & Company of New York rallied the Class b non-voting shareholders around a motion to liquidate wic, production levels will be unchanged.
Spending on programming will be about $10 million per year, says Andrews, referring to production stimulated for over-the-air and pay-television services.
Emily of New Moon, based on the Lucy Maud Montgomery stories, is currently in production on 26 episodes with another 13 on order. WIC Entertainment is working in partnership with Cinar and Halifax’s Salter Street and the family drama will air this fall.
Twenty-six half-hour episodes of a series called Donkey Kong’s Country, based on the Nintendo video game, is in production with Nelvana and is also scheduled to air this fall.
The first season of animated series Nilus the Sandman, produced with Cambium and Delaney and Friends, is in production and another 13 are on order. The series will premier on Family Channel this year along with Herve Bedard’s 13-part Billy the Cat animated series, another wic-sponsored project.
Recent wic acquisition Madison – the Forefront teen drama – started airing its fourth season this month and the fate of a fifth season will be up in the air until at least June, says Andrews. ‘I love the series, but it’s a question of ratings, costs and alternative programming that is available,’ he explains.
The Hardy Boys/Nancy Drew series, which has run into a snag with the French partner, will also have to wait until June for a renewal notice.
In other production news from wic, Allarcom and wic will undergo an amalgamation, the details of which will be made public in February, says WIC Television president Jim Macdonald.
As wic goes into the buying season, it expects to spend about $60 million this year (the same as last year) to obtain the national broadcast rights to American programs like top-10 hit in the u.s. Suddenly Susan. This strategy, begun two years ago to eliminate wic’s need to buy programming from national licencees CanWest Global and Baton, becomes more cost-effective because of the recent expansion of chch’s reach to 90% of the Ontario television market.
Following the crtc’s go ahead this fall, the first chch rebroadcasting transmitter will be up in Ottawa Feb. 17 and six others will be operational this spring.
wic’s achievements were tempered by the failure to launch ExpressVu (for which the company is looking for new investors) and the Oppenheimer intervention.
Perceived to be weakened by the shareholder disputes and a takeover attempt by CanWest, Oppenheimer became a factor about three months ago when it demanded a review of the rights of Class a voting shareholders and the Class b non-voting shareholders. (Oppenheimer owns 320 Class a shares and less than 10% of the Class b shares.)
At the agm, Oppenheimer’s managing director Eric Rosenfeld chastised wic’s governance practices, saying that the board and controlling Griffiths family have ‘profound disrespect of minority shareholders.’
He questioned the removal of board member Frank Griffiths Jr. and the terms of former ceo Doug Holtby’s resignation. The Oppenheimer representative also fanned rumors that Holtby made a pitch to buy wic through an alleged partnership with bce, an effort Rosenfeld believes has led to a $525,000 per year compensation package for Holtby. How many other bidders other than CanWest are there? Rosenfeld asked.
wic chair Ed King denied backroom deals and undisclosed bidders. He also claimed the company was being run ‘in the interest of all shareholders’ and that dissolution would not yield an attractive return for investors.
Nevertheless, the unprecedented Class b vote went ahead, and the results clearly surprised new ceo John Lacey, who asked the scrutineer to repeat the numbers.
While 99% of Class a shareholders voted against dissolution, Class b shareholders voted 57% in favor of liquidation. The exercise was academic because both classes needed at least 67% agreement to act, but the results sent a clear message to wic, says Rosenfeld. wic will not likely be the same company next year, he observed, adding: ‘Shareholders are not happy with the state of affairs of the company.’
wic’s gross revenues were up 9% over the year to $460 million, while earnings were down 42% to $8.2 million (33 cents per share). Shares closed Jan. 8 unchanged at $22.75.