The Canadian media is saturated with Americana. Canadians are continuously assailed by emigrating American cultural values. So it is refreshing to see an initiative such as The Parents Channel, a u.s. specialty network owned by Montreal-based Malofilm Communications, that reverses things, even a little bit.

According to Malofilm vice-chair Francois Macerola, the decision to launch The Parents Channel in the u.s. by next June is not a reaction to Canada’s regulatory requirements (the crtc rejected Malofilm’s application for a Canadian specialty service, Recovery tv); rather, he says, it’s simply an entrepreneurial decision based on the laws of the marketplace. ‘We’re taking a dynamic stand,’ says Macerola. ‘We have the experience and competence and we have partners… and I am quite sure we’ll be the first Canadian company to really open up (the u.s. specialty market) to other Canadian producers, distributors and others.’

The u.s. cable television market is booming and merits a closer look by Canadian specialty program providers. As Malofilm chairman Rene Malo told Playback (see story, p. 1), ‘You don’t need a licence to start a specialty channel in the States.’ He adds: ‘What’s fantastic about this new service is that it’s a Canadian network going into the States. For the first time, it’s this way (from north to south), instead of the other way.’

Macerola hopes The Parents Channel’s American foray will be only one of a series of initiatives wherein Canadians begin to reverse an old trend. The point being, why shouldn’t Americans be wowed by our programs, too?

An aggressive export policy for new Canadian specialty programs and signals makes good business sense especially considering the huge effort and expense involved in the production and acquisition of these programs, and the infrastructure needed to deliver them.

Finding the right partners is an essential piece of the puzzle.

Malo says his company does not have the expertise to market The Parents Channel in the u.s., and so he signed an agreement with Vision Group, a marketing affiliate of u.s. cable giant Tele-Communications Inc.

The potential rewards are great, but first the cash flows out. Malofilm will spend hundreds of thousands of dollars on feasibility surveys, developing and perfecting the business plan, preparing pilot programming, and hiring the necessary consultants. Even the marketing launch for The Parents Channel at this week’s National Cable Television Association Convention in New Orleans (May 22-25), cost Malofilm $150,000. Malo won’t likely see a profit until the third year when there are enough subscribers and a sufficiently stocked library.

In the last 10 years, as ratings for broadcasters have declined, the share for the American cable networks has risen dramatically. u.s. cable advertising revenue in 1992 was pegged at $3.4 billion with 12% projected annual growth. By 1995, yearly revenues are expected to be over $5 billion. Even at that, cable is still underrated. It has 45% of all u.s. viewing, but only 12% of the revenues. With the advent of even more fragmentation, that will change as cable positions itself for a fairer share of the advertising pie.