Case Study-Selling sex to TV viewers may seem easy, unless you’re a newcomer to the business

The CRTC ensured new players were added to the field in licensing new specialty channels but as one case study shows, getting an independent channel launched on digital cable and DTH can be a difficult seduction. Sue McGarvie, one of the principals of Passion Media Inc, believes nothing sells better than sex – the mainstay of her company. Passion was awarded Category 2 licences for the sex channel Passion Television and The Singles Network. It’s also developing radio shows, publishing books and pushing its brand through videos. Its web site, www.pashionvillage.com, co-brands personal ads with WebPersonnals.com and sells adult toys. Last week, the web site registered 3,000 unique visitors a day. Passion says it is dedicated to "tasteful entertainment and responsible information and education about human sexuality and relationships," and is targeting "mainstream English-speaking audiences with a focus on fun, upbeat lifestyle programming." It intends to brand itself as North America’s authority on human sexuality. But even with a multiplatform business proposal and one of the hottest genres around, McGarvie says it’s been an uphill battle getting launched without an existing infrastructure. "I was happy to get licensed as an independent. But it’s a battle to fight with the established broadcasters," she notes. "Certainly, I’ve been a little naïve about how the whole thing is done. I was so excited that the CRTC allowed new people to come in. But it’s not a cake walk. It’s a really small industry, and I’m going to have to be more tenacious than I thought." Passion Media has made inroads though. Just back from the National Association of Television Program Executives (NATPE) conference, she says she managed to pick up the blind date reality-based show, The Third Date, a series of British movies containing high-end fun erotica, and Pillow Talk, an hour-long interview show in which celebrities join the host in her bedroom and unleash innuendoes. The company has hired Gord Haines as CEO. He had been with Alliance Communications where he helped launch Showcase. Programming is important, but it doesn’t mean much without distribution. McGarvie says she’s willing to give up a 9.9 per cent stake in her channels to get distribution, but insists any deal will not come cheap. Investment banks have pegged the value of Passion TV at between $15 million and $18 million, not including the $11 million needed to launch. The benefits of equity partners Americans have also taken notice of Passion, she says, particularly since its radio programming is already being distributed through L.A.-based Sexually Speaking that taps into 40 U.S. markets. As well, its web site is making money as a standalone business, and she says it wouldn’t be hard to extend its book publishing south of the border either. As for the TV channels themselves, she says they could be tested in the Canadian market and any glitches worked out before they are rolled out in the U.S. "We’re in talks with some Americans who are interested in being our partners. First off, we’d be a real deal because of the exchange rate differences," she notes. One advantage of working with Americans is that they don’t have to displace one of their own Category 2 licences, she adds. "All of the Canadian broadcast suitors – and we’re talking about the big broadcasters and we’ve had some serious meetings with the big boys in Toronto – but they all have Category 2s that they own 100%. They (the channels) might not be as hot as ours, but why should they displace one of theirs for arguably one of the 25 slots available and move one of ours forward if they don’t own a huge piece of it," she says. A Canadian deal is not without benefits though. McGarvie says the Canadian suitors already have uplink facilities and other infrastructure in place, and are offering to house Passion within their offices, which would cut down on overhead.

Case Study-Selling sex to TV viewers may seem easy, unless you’re a newcomer to the business

News | 02/01/2001 5:00 am EST

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