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TELEVISION
A rain maker's perfect storm
As it fends off suitors, The Weather Network is planning to add another channel
GRANT ROBERTSON
MEDIA REPORTER
October 17, 2007
If the ratings on The Weather Network are any indication, more than eight million Canadians each week are captivated by the drama of warm fronts and cold fronts, and the suspense of an early frost warning.
Now the company behind one of Canada's most profitable independent broadcasters is looking to tap the country's apparent fascination with the weather - with an unusual move into dramatic programming and documentaries.
Having rebuffed takeover offers from larger rivals this year, Pelmorex Communications Inc. is instead embarking on an expansion of its coveted broadcast assets, The Weather Network and its French counterpart, MétéoMédia.
In documents filed with federal regulators, Pelmorex is seeking to launch The Environment Network, "an exciting new digital specialty service" that will focus on talk shows and educational programs about the weather.
TV purists might snicker, but with the broadcasting sector in the midst of a wave of consolidation, Pelmorex figures it needs to get bigger.
Executives told regulatory hearings last month that the privately held company has been fielding "monthly" takeover offers.
Rather than sell, it wants to continue as an independent and has been trying to bulk up to compete for revenue. The company bought commercial forecaster World Weatherwatch last year, which sells storm data to industry and governments, and has been pushing its content to wireless providers.
The new channel could help expand its advertising base. The Weather Network had $45-million in revenue last year, but most of that came from the 23-cent monthly fee it collects through cable and satellite companies for each of its 10.2 million subscribers.
Just $16.2-million, or 37 per cent, of revenue came from advertising.
"People tend to watch us for short periods of time, so unlike sitting down for an hour to watch a drama, movie or sporting event, you're watching for 10 or 15 minutes and then you're moving on," said Paul Temple, senior vice-president of regulatory and strategic affairs at Pelmorex.
If Canadians find the weather entertaining, Pelmorex is betting they'll stick around to watch The Environment Network, with programs about global warming and pollution.
"The intent really is to have a mix of programming, because you've got to keep people's attention," Mr. Temple said. "You just don't want an endless series of interview shows. You want to make it interesting. So there's education, there's science."
However, the Canadian Radio-television and Telecommunications Commission has raised some concerns. The regulator wants to limit the amount of drama, including movies, to no more than 15 per cent of its airtime, if it is approved.
The expansion bid may also run into opposition from science or nature channels in Canada, which could argue that its programming strategy overlaps with theirs. Hearings will be held in December.
Pelmorex chief executive officer Pierre Morrissette did not disclose last month where the takeover offers have been coming from, but said the company is facing increased pressure.
"I've been approached almost every month," Mr. Morrissette said. "My answer has consistently been, it's not for sale. We're in it for the long haul."
However, Mr. Morrissette said it is becoming more difficult for independent broadcasters like The Weather Network to stand alone.