THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, August 26, 1994 TAG: 9408260579
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
LENGTH: Medium: 61 lines
The Family Channel is going down under.
International Family Entertainment Inc., the Virginia Beach-based parent of The Family Channel, said Thursday that it plans an Australian version of the channel within the next few months.
``We're just very excited about this opportunity,'' said Rick Busciglio, IFE's vice president for international business development.
Australia is only now permitting multichannel TV distribution systems like cable and satellite services. Currently, all programs are broadcast by individual stations that are affiliated with several national TV networks - the Australian equivalents of ABC or CBS.
Busciglio said IFE is one of first U.S. entertainment companies to announce agreements to sell TV programming in Australia under the new, more open arrangement. Many other U.S. cable channels, ranging from ESPN to Cable News Network, are eyeing the island continent.
IFE said it plans to enter Australia through a joint venture with Sydney-based Prime Media Developments Pty Ltd. Busciglio said IFE and Prime expect to finalize an agreement by the end of September, with IFE holding a majority ownership position in their planned venture. The two companies' programmers will choose shows for the channel, he said.
The expansion is the second internationally in the past year for The Family Channel. In September 1993, IFE began satellite distribution of the channel in the United Kingdom.
In an interview last spring, IFE Senior Vice President Louis Isakoff, who directs the company's international efforts, said the company would be much more aggressive overseas now that The Family Channel has reached more than 95 percent of U.S. households with cable TV. He also said IFE's new Cable Health Club network also would look overseas.
Family's first venture outside the U.S. has been costly. With its British partner, it has racked up operating losses of more than $12 million so far in the United Kingdom.
Busciglio declined to make specific projections for the Australian venture, but said that IFE expects it to be profitable in less time than the British version.
The fact that the channels are customized for the countries will help them reach profitability faster than they would otherwise, he said.
In Australia, Family initially will be carried on traditional coaxial-cable systems as well as ``wireless cable'' systems that use microwaves to transmit channels, Busciglio said. Within six months, IFE hopes to have negotiated the right to have its Australian version transmitted to homes directly via satellite as well, he said.
IFE executives predicted the channel will be available to half of Australia's more than 6 million households within five years. For its first three years, the channel will have to support itself solely on subscriber fees. That is because the Australian government is barring commercials on new multichannel TV systems until 1997.
Busciglio said New Zealand, Singapore and Taiwan are other potential expansion spots for The Family Channel in the near future. by CNB