Last
year, a Canadian businessman, Kevin Francis, paid to talk about his Ottawa company,
Accelio, with former U.S. Secretary of State, Alexander Haig.
Today,
after the closing credits, World Business Review reveals that the companies
featured on the program "contribute to the funding of the production of this
series."
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interview lasted for eleven minutes, and was broadcast on Haig's program, World
Business Review. The show offers businesses a "multimedia promotional
campaign" for US$9,800. The
questions Haig posed to Francis weren't exactly challenging ("Tell our
viewers about your new relationship with Accenture"
"How quickly
can you expect to see a return on investment?"). The deal also included
the production of a 90 second profile on the company. The
profile could be described as "positive." Interestingly, there were
a number of "negative" issues that were never addressed on the program.
Three
weeks before the story appeared on World Business Review, the Financial
Post reported that Kevin Francis told his shareholders he was frustrated with
the stock price. In the Post article, Francis spoke of sustained losses
and said he hadn't met "the objective of restoring profitability." But
Al Haig didn't get into any of that. When
World Business Review first went on the air back in 1996, the Washington
Post reported that companies paid from $35,000 to $200,000 to get interviewed.
The press, including the Washington Post, denounced the show as "glorified
advertising." Today,
after the closing credits, World Business Review reveals that the companies
featured on the program "contribute to the funding of the production of this
series." But the show maintains "final editorial control." So
what's the situation in Canada? These are the TV programs we focused on in our
story:
BTV
Business Television / Taylor Thoen, president and host BTV
Business Television is a weekly half-hour program out of Vancouver. It is
broadcast across the country on stations like Global (in Quebec), the A Channel
(in Manitoba and Alberta), the New VI (British Columbia) and some CHUM stations
in Ontario. Two
years ago, the mining company Shane Starnes works for, Pacific North West Capital,
got a phone call from BTV. "They just said, you know, 'Would you be
interested in paying for a full piece on your company
a promotional piece,"
says Starnes. "But it was expensive
I think it was $15,000 to $18,000
- in there somewhere. We did get a CD that we can use over and over again for
our trade shows, which we do use."
On
their website, BTV describes itself as having "found a position in
television like no other. Void of interrogation, hype and dirty laundry
BTV draws solid, positive conclusions."
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Starnes
says he wouldn't have paid for the piece if his company had just received a video
out of the deal. But Starnes felt BTV had made it clear that Pacific North
West was paying to go on television, so he says he was willing to pay. What
the viewers saw was a seven and a half minute profile, featuring the company president,
staff and analysts. There were shots of the company at its drilling sites in Sudbury
and at a mining conference in Toronto. On
their website, BTV describes itself as having "found a position in
television like no other. Void of interrogation, hype and dirty laundry
BTV draws solid, positive conclusions." But
those "solid, positive conclusions" are not what companies are paying
for, according to BTV's president Taylor Thoen. She told us that companies
pay for "backend marketing" -- things like a video copy of the show
and an online archive of the video. Unlike
the U.S. show, World Business Review, BTV seems to feel there's
no need to disclose in the program credits that any money is changing hands. We
gave Taylor Thoen another call, and asked her if she would give us an on-camera
interview. We
didn't get the interview. World Business Review, the American show, wouldn't
talk to us either. In fact, getting anyone to talk about business television's
best-kept secret was virtually impossible, especially when we discovered that
some of the best-known business reporters in the country are also involved.
Canada's
Best Businesses / hosted by Diane Francis Diane
Francis has been a big name business journalist for over 20 years. She's written
several books. She has also hosted Canada's Best Businesses; a series broadcast
nationally - first on Global, then on CTV. One
episode last February featured a four-minute "inside look" at DataMirror,
an Ontario software company. The
coverage didn't come cheap. "I
think it was approximately somewhere between $18,000 and $20,000," says Data
Mirror's director of marketing, Tracy Staniland. "That included the broadcast
plus all of the production." Staniland
says DataMirror wrote more than just the cheque for Canada's Best Businesses:
"We
wrote the script. We rehearsed it with the key spokespeople prior to doing the
production. [We] decided who in the organization would be the key spokespeople
and then worked with their production." Was
the audience aware that the segment was really like an infomercial, written and
paid for by the company? We called Diane Francis' office and were told she was
too busy for the next four months to talk to us. Her assistant said Ms. Francis
has parted ways with the production company that produces Canada's Best Businesses
and she couldn't confirm whether Ms. Francis will be hosting the show when it
returns to CTV next month.
Millennium
Media Television / Garth Turner, CEO
Garth
Turner burst onto the scene in the 1980's as a crusading business editor at the
Toronto Sun. Then he went into politics. Then back to business journalism.
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And then
there's Garth Turner. He burst onto the scene in the 1980's as a crusading business
editor at the Toronto Sun. Then he went into politics, becoming Minister
of National Revenue. Then back to business journalism. Today
he works from the heart of Toronto's financial district, heading a production
company called Millennium Media Television. They produce programs like: Garth
Turner's Investment Television; Real Estate Television; Mutual Funds
Television; Dot.com Television; and Board of Trade Television. Board
of Trade Television began last fall on CFTO, the Toronto affiliate of CTV. John
Schram, CEO of a healthcare company called We Care Health Services Inc., says
"a charming lady" approached him. She "wanted to know if I'd be
interested in having our company profiled on her show." She
told Schram that she was associated with the Board of Trade show and "Garth
Turner would be doing a lead in and voice over" for the profile.
"When
I'm seeing someone interviewed on a TV program I would expect that it's done more
with a journalistic motive in mind, and it's done without any payment." John
Schram
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The
woman told Schram she would come by his company and shoot "a short video
of me and the company. I guess it was shortly after that, she mentioned a fee
attached to this. And that's when my antenna went up." Schram
says the fee was in the $6,300 - $6,500 range, and he "didn't like the aspect
that I was going to pay for it. "Being
the old fashioned person that I am," he says, "when I'm seeing someone
interviewed on a TV program I would expect that it's done more with a journalistic
motive in mind, and it's done without any payment." We
decided it was time for us to interview Garth Turner, but he wasn't too keen. He
agreed to an on-camera interview so long as we would promise that there there
would be no comparison to shows like BTV and the Canada's Best Businesses.
In the end, Turner said he wouldn't talk to Disclosure on camera, but he
would give us a studio tour and we could interview Nalini Sharma, Vice President,
Content and Development for Turner's Millennium Media Television. While
Turner was showing us around the studio, we couldn't resist asking the big question: Wendy
Mesley: Is there any financial relationship between the people who are on
the show and your company? Garth
Turner: That's, I think, the interview you're going to do with Nalini, so
-- Wendy
Mesley: I just wanted to ask you one question about how many financial links
there can be to people on your show before it starts to get sticky. Garth
Turner: I'll only answer that by way of saying that, ah, because we're not
the CBC and we don't get money given to us, that we have to run a business for
which revenues are generated and the bulk of the revenues are generated by selling
sponsorships and advertising and what we call billboards.
The
"billboards" are those "brought to you by" messages. They
alert the audience when they're viewing sponsored programming. But
we discovered one company had paid to appear on one of Garth Turner's programs,
but there was no indication that it was sponsored programming.
"Because
we're not the CBC and we don't get money given to us that we have to run a business
for which revenues are generated."
Garth Turner
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The company,
Watson Wyatt, told us they paid for a profile piece that aired on Turner's
Board of Trade Television. We
asked Garth Turner whether the audience knew that money had changed hands: Turner:
It's extremely transparent. It's Board of Trade Television. It's about
the Toronto Board of Trade. We just simply go out and profile Board of Trade members
- Mesley:
And take their money to offset the cost. Turner:
The cost of doing the show, exactly. Mesley:
But do you think the audience knows that? [Nalini
Sharma, Turner's Vice President, Content and Development, interrupts] Sharma:
I think the audience is smart enough to know that. It's called Board of Trade
Television.
Investment
Television is the flagship show of Turner's Millennium Media Television. The
program is broadcast across the country on Global and Prime.
"It's
really a way for us to generate revenue, support the jobs here." Nalini
Sharma
| Garth
Turner insists "people don't pay us money to be on Investment Television." Well,
remember Kevin Francis, the CEO who paid to be interviewed on the U.S. show, World
Business Review? He got a free interview on Investment Television for
90 seconds - but then his company was contacted by Millennium Media Television,
offering them a longer profile for $12,500. Francis' company declined. "It's
something we've been thinking about doing," says Turner, "but we haven't
done it. "And
if we were to do it, as we've done with Board of Trade Television which
you can watch and see, where we have had some paid profiles, the companies are
not endorsed." Mesley:
Your sales people are saying to this company, 'If you give us $12,500, you can
appear on our show and we'll do a video for you.' Sharma:
That's right. The profile that they would get on the show on Investment Television,
for example, if they were to pay $12,500 - it's written by our staff, our editorial
staff here. We
consult with the PR person or their spokespeople, but at no time do they ever
send us questions or check the script
At no time do they have the right
to pull programming. It's really a way for us to generate revenue, support the
jobs here.
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