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NEWSLETTER
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Volume 17, May 9, 2001
NEW CANADIAN OPPORTUNITIES IN DRTV - PRO AND CON - MONEY TO BE MADE OR NOT?
By Edward Easton
Until quite recently, the Canadian Radio-Television Communications Commission restricted infomercial programming from midnight to six a.m. time slots. Canada currently boasts 165 television broadcast stations and cable channels offering new opportunities for the infomercial market. The major markets are concentrated in the Vancouver, Toronto and Montreal areas. In all there are over 21 million households in Canada with television sets. As in the US, the Canadian broadcast markets are being increasingly fragmented by multichannel programming.
Complicating the scene is the CRTC's restriction of commercial ad time to 12 minutes per hour. This can make placement for two-minute infomercial spots difficult and relegates 30-minute slots to cable channels that run them exclusively.
Another wrinkle is the CRTC's proviso that 60% of all programming must be Canadian produced. Most of this material has low audience appeal, forcing broadcasters to rely on the 40% allowed in from foreign sources - mostly from the US.
Infomercial producers trying to get their stuff on the air must compete for air time with regular American programs like Seinfeld and other popular series fare from south of the border.
One way around all this for American entrepreneurs trying to tap these new Canadian markets is to establish a relationship with Canadian marketers and distribution centers who can guide you through the maze of tax laws and regulations unique to their marketplace. Making or saving money on the front end is difficult because the broadcaster situation up there makes pay-per-inquiry deals unattractive.
Brand name series programming from America may be difficult to compete with on avails for air time, but the back end handled locally can more than compensate for this. There's money to be made up there, you just have to hire a production outfit who knows how to exploit Canada's unique situation!
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Latest Jordan Whitney Rankings for 30 Minute Infomercials
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Rank
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Program
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Host
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Product
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Price
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1
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Ab-Doer
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John Abdo
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Exerciser
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$149.75
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2
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Carleton Sheets
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Carleton Sheets
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Real Estate Investment
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$179.85
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3
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Bun and Thigh Rocker
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Jake Steinfeld
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Exerciser
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$199.90
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4
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Lose Weight and Celebrate
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Richard Simmons
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Weight Loss
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$39.95
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5
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Bowflex
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Tom Purvis
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Home Gym
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$999.99
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6
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Dermal-Tone
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Lola Davis
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Facial Exerciser
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$179.49
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7
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Showtime
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Ron Popeil
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Rotisserie
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$159.80
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