Fireworks Entertainment is stepping back from both the movie business and Europe’s troubled TV market, following heavy cuts to its budget by parent company CanWest Global Communications, and could get out of the ‘action hour’ trade altogether, according to new CEO Gerry Noble.

CWG announced last month that production spending at Fireworks will drop more than 50% to $50 million for the coming fiscal year, which begins in September. Overhead costs will take a similar cut, down to $7 million as the prodco refocuses on turning out shows for Global Television, its sister channels, and the U.S. market.

The company mostly makes hour-long action shows – it is currently shooting new seasons of Mutant X and Gene Roddenberrys’ Andromeda – but will now explore other genres. ‘Action hours don’t necessarily suit the Global audience,’ says Noble. Fireworks recently added the kids series Strange Days at Blake Holsey High and the woman-aimed drama Wild Card to its roster.

Cross-town competitor Alliance Atlantis Communications made similar moves in recent years, dumping action hours in favor of serious drama.

Lack of funds and Global’s recent run of good luck with reality programming suggest that Fireworks could turn to less-expensive non-scripted shows, but Noble will only say they are considering ‘all genres.’

‘They’ll do whatever can be financed 100% out of North America,’ says David McFadgen, an analyst at Sprott Securities in Toronto. ‘The economics of their old business just aren’t there anymore.’

Fireworks has been stung by turmoil in the overseas TV markets, specifically France and Germany, and the growing popularity of European-made shows. Foreign sales previously covered 15% to 40% of a show’s production costs.

‘We can’t rely on that method of financing,’ says Noble, ‘we’re not going to go into a project if we can’t sell it in the U.S.’

McFadgen expects the company will break even by this time next year.

Movies have also gone poorly for the company. L.A.-based Firestone Pictures distributes a handful of Hollywood films – Rat Race, Hardball and Rules of Engagement – but has had poor luck with production efforts. Who is Cletis Tout?, starring Tim Allen, landed with a thud in 2001 followed last year by the disappointing Interstate 60, with Gary Oldman.

‘Film doesn’t fit our short-term goals,’ says Noble. ‘We’ll still be selling our film library, but what we’re not going to do over the next while is invest in new theatrical [projects].’

Noble, former president and CEO of Global, took over at Fireworks in May, following the departure of founder Jay Firestone. Firestone founded the outfit in 1996 and was bought out by CWG in 1998.

News of the cuts to Fireworks arrived with CWG’s third-quarter financial results. Net earnings at the Winnipeg-based media giant dropped to $8.6 million for the period ending May 31, down from $22.2 million in Q3 2002, due mainly to $21 million spent on restructuring Fireworks and CWG’s publishing properties. Combined revenues were up 6% to $689 million.

-www.canwestglobal.com

-www.fireworksentertainment.com

Sean Davidson