Four new French-language specialty television services represent tens of millions of dollars in new business for Canadian producers and distributors.

Licensed May 21 in the history, travel/tourism, science and technology, and drama categories, the new services have a combined minimum Canadian program acquisition and original production commitment of $17.1 million, effective the second broadcast year.

Canal Evasion, the travel channel, has a first-year Cancon commitment of $2.4 million, but says it intends to invest as much as $5 million this year, while technology service Canal z and Evasion together have a seven-year independent Canadian program obligation of $41 million. Canal Histoire is slated to invest more than $31 million in new production and acquisitions.

On the distribution side – the new services go to air in January 2000 – the combined wholesale rate for the four channels is likely to be under $2.50, while the extended package will cost consumers about $6, creating a healthy opportunity for cablecos Videotron and Cogeco to add other French-language services.

The business plans for the new services are based on a 60% penetration rate, or about one million primarily Quebec-based cabled households, within the first 12 to 18 months.

First-year revenues will be based on nine-month subscription fee charges, with the first three months free, in addition to commercial airtime sales.

Chosen from among 17 applications, the four new specialty channel licences supplement the 11 existing French-language licences issued since 1987, including Canal Famille, TV5, Reseau des Sports, MusiquePlus, Meteomedia, Le Reseau de l’Information (operated by Radio-Canada), Canal d, Le Canal Nouvelles (operated by tva), Canal Vie, Musimax and the dual-language Teletoon all-animation service.

In two related developments, Astral Communications has effectively acquired all the outstanding shares of Radiomutuel in a buyout evaluated at $224 million. That buyout is subject to regulatory approval, expected at year’s end, while Radio-Canada has filed an appeal with the federal cabinet seeking a review of the commission’s denial of licence to Reseau des Arts, a performing arts service proposal partnered with France’s La Sept-arte and Bell Satellite.

Canal Evasion

Newly named Evasion president and ceo Michel Chamberland, an executive with shareholder Serdy Direct (19.9%), says the service intends to invest close to $5 million in programming in its first year.

Chamberland will begin a series of meetings with up to 10 independent producers starting Aug. 16.

The intention is to have original programming ready for the launch. The only secured programming at this point is a 292-hour largely European and u.s. package picked up from partner Pathe/Canal Voyage of France. The service’s majority partner is BCE Inc. (50.1%), joined by Serdy Direct, broadcaster Group tva (10%), Media Overseas and Pathe.

Much of the programming, in the order of 75%, will focus on travel within Quebec and nearby destinations.

Chamberland says Evasion is essentially a travel and tourism service concept. Entertainment is a key element, he says, but the mot d’ordre is ‘service.’

‘There will be no easy solutions to launch a specialty channel,’ he says. ‘We are here to serve the client [subscriber], and like we told the crtc, there will be no advertising-[based] reports, no infomercials and no product placement against remunerations.’

Evasion will not produce any programs and consortium partners are limited to no more than 25% of annual program expenditures.

Pitches should be directed to Chamberland or Louise Forrest, the service’s delegate producer. Evasion will rent programming facilities at tva where its broadcast centre is also located.

Highlights:

* Focus will be on tourism, adventure and travel. This ‘practical guide’ to travel information and advice will cover a variety of destinations in terms of their culture, history, sports, food, and so forth. Programs will be designed to appeal to the general viewing audience but will particularly target viewers between the ages of 25 and 64.

* Non-Canadian programs will be primarily sourced from Canal Voyage, France, which will also coproduce Evasion programs and participate in the development of a website.

* Evasion is required to spend a minimum of $4.5 million on the acquisition of and/or investment in Canadian programs in the broadcast year following the first year of operation, and a minimum of 50% of the previous year’s gross revenues in each subsequent year.

* Evasion will spend nearly $18 million on independent productions over the seven-year licence term.

Canal Fiction

A spokesperson for Pierre Roy, president and ceo of Les Reseaux Premier Choix, an Astral subsidiary and operator of both Fiction and Histoire, says preparations are at ‘the first draft’ stage, and new programming staff has not been hired. Roy and Judith Brousseau, vp programming at Canal d, are currently managing developments.

Fiction is an equal partnership between Astral and Toronto-based Alliance Atlantis Communications.

In content terms, Fiction is obliged to invest $900,000 a year in 12 original television movies produced for first-window broadcast on the service.

The service’s international programming will consist mainly of drama programs and series that ‘have never been broadcast on French-language Canadian television.’ The crtc decision also specifies programs from u.s. sources are to be limited to 20%.

Highlights:

* Fiction’s prime demographic is 25-54 year olds.

* The daily schedule includes one eight-hour block of original programs.

* There will be a minimum 25% Canadian content from 6 a.m. to midnight and 25% from 6 p.m. to midnight.

* The general Canadian programming expenditure requirement for Fiction is a minimum of $2.7 million in acquisitions and/or investment in the second broadcast year, and a minimum of 22% of the previous year’s gross revenues in each subsequent year.

* The crtc’s licensing decision says, ‘The licensee shall spend at least $900,000 each year to fund original French-language Canadian television movies, produced under official co-production agreements with France or other French-speaking countries. The purpose of this commitment is to encourage reciprocity agreements with networks in French-speaking countries and, in return, to open up new international outlets for Quebec fiction, thereby creating new opportunities and revenue sources for Canadian creative talent and program producers.’

The commission also made the ‘suggestion’ that English-language specialty television service Showcase acquire broadcasting rights to Canal Fiction television movies in dubbed or subtitled versions.

* A condition of licence has been put in place ensuring ‘Canadian programs for Showcase and Fiction’ are not double-counted.

Canal Z

Canal z’s mission will be to attract viewers to programs on science and technology, the Earth and its secrets, space exploration, the paranormal and science fiction, lifestyles and computer science. Programs will appeal to the general viewing audience but will be especially targeted to viewers 18-34.

At its crtc hearing, operator Radiomutuel said Canal z is ‘the first service to have most of its original production dedicated to computer science, the Internet, video games and multimedia.’

Marie Collin, gm with lifestyle channel Canal Vie and associate gm at Canal z, says independent producers have started to make their pitches to Lyne Denault, programming director at Canal Vie (Denault is also responsible for Canal z), Collin and John Kuyk, Vie’s acquisition director. Some formal licence commitments should be ready by mid- or late September, adds Collin.

The service will be aiming at meeting its Cancon requirements (highest on Canal z and Evasion) as well as scheduling a number of high-quality, innovative and independently produced shows capable of drawing an audience.

Collin says as much as 25% of the original six-hour-a-day program schedule will be sourced from independent producers, with the main interest in computers and multimedia, and science and technology.

‘That’s a percentage of the schedule’s original hours. Of course, independent production costs more than acquisitions,’ says Collin, ‘so it’s fewer hours, but more than 25% in dollar terms.’

Collin says Radiomutuel’s team is looking closely at market studies as it prepares Canal z’s programming strategy. As such, program budgets have not been set.

While new media is an exploding category, Collin points out there is a great deal of development work to be done, ‘and frankly, it’s a sector [multimedia and computers] where there’s very little broadcast production material available, or money. It’s all still to be done.’

* In addition to Canal z, Radiomutuel is the sole or joint licensee of three French-language specialty services: lifestyle channel Canal Vie (100%), MusiquePlus (50%) and Musimax (50%), the latter two in partnership with Toronto-based CHUM Ltd.

Highlights:

* Canal z will exchange with zdtv, a narrowcast American tv specialty service dealing in computer science, technology and the Internet, in order to gain access to valuable information worldwide. The licensee also expects to establish a partnership with Quebec Science magazine for the purpose of developing French-language content accessible to Canal z and the Internet surfers visiting its website.

* The service must spend a minimum of $5.4 million on the acquisition of and/or investment in Canadian programs in the second broadcast year, and 48% of the previous year’s gross revenues in each subsequent year.

* Canal z has agreed to spend more than $23 million on independent productions over its seven-year term, including a minimum of $2.7 million in the first year.

* The proposed wholesale subscriber rate is 75 cents.

Canal Histoire

Histoire proposes to mix information with entertainment in a schedule consisting of three primary program elements:

* feature documentary series and miniseries on historical events and figures, periods of crisis and prosperity, ancient civilizations, genealogy, great social and cultural movements, and day-to-day history;

* movies as well as drama series and miniseries portraying great achievements and milestones in history, broadcasts recreating the lives of the major players and figures in history; and

* interviews with witnesses or protagonists in history, quizzes, magazines and discussion programs on history-related topics. This component will create a link between current events and history and will promote a climate of discussion and interaction with viewers.

Les Reseaux Premier Choix (Astral) and aac are equal partners in the new French-track history service. The primary demographic is viewers aged 25-54 years.

Highlights:

* At least 75% of Histoire’s expenditures will go towards acquiring Canadian broadcasting rights to original, first-run programs.

* For the purposes of defining first-run original programs, the crtc says ‘those [programs] acquired jointly, from the initial production funding stage, by Canal Histoire and History Television, regardless of which of the two services broadcasts them first, will be accepted, provided that the licensee adheres to the [stipulated expenditure] commitments.’

* At least 25% of Histoire’s foreign programming will be acquired from non-u.s. sources.

* Canadian content is set at 35%, rising to 45% in the final two years.

* Histoire will invest a minimum of $4.6 million on the acquisition of and/or investment in Canadian programs, their production and development in the second year of broadcast – with a measure of built-in flexibility or transfer capacity – and a minimum of 35% of the previous year’s gross revenues in each of the subsequent years.

* The service has agreed to spend close to $32 million on independent productions over the seven-year term.

The crtc’s May 21 licensing decision says, ‘Canadian independent producers who are not shareholders of Canal Histoire must have an equitable opportunity to provide programs for the service. . . To that end, it [the licensee] made a commitment at the hearing that not more than 5% of its expenditures paid to independent producers would be for programs produced by corporations holding shares in the service or its affiliates.’