André Bureau Chairman of the Board Astral Media Inc. & President & CEO Astral Broadcasting Group Inc.
(First published Mar. 14, 2000)
Canada's broadcasting business is privileged in that André Bureau never followed his first choice in professions.
Bureau, whose career has taken him through such high-powered positions as executive vice-president of La Presse ltée, president of Télémédia Communications inc., president and CEO of Cancom, and chairman of the Canadian Radio-television and Telecommunications Commission prior to joining Astral, originally wanted to be a priest.
But after two months spent at the Grand Seminary, Bureau was told politely that he wasn't the type of person to be a priest and to "Please, go."
So, while the church may have lost out in gaining one of Canada's great minds in its management ranks, Canada's media industry has gained.
But for a man who says that when he is hurt, he is hurt deeply, it was a telling moment.
"I had no idea what to do," says Bureau. "I was quite distressed. I had always planned to be a priest. So, not knowing anything else, and having helped my father in his law office in Trois-Rivières, I headed into law at Université Laval."
This led to studies in Philosophy of Law at the Sorbonne in Paris, with the aim of returning to Université Laval as a teacher. But, again, his career plans were thwarted. His father took ill and Bureau took over the law practice for eight years.
"I thought that was to be my life," says Bureau. "But the newspaper and radio stations for whom I had been doing some work as a lawyer were bought by Paul Desmarais (Power Corporation) and I was asked to take the executive job at La Presse."
The rest is history. Bureau has moved from one senior-level job to another, always being sought out rather that seeking out the positions, and not moving far from his roots as a lawyer. In fact, he opened a law firm in Montreal on leaving La Presse, working closely on the legal aspects involved with the James Bay project, before joining Télémédia as secretary and eventually becoming president. These days, he still spends some time each week at Heenan Blaikie, the Montreal-based law firm he joined on leaving the CRTC.
A Trudeau Request
Even getting the job at the CRTC was far from his plans. He was asked to meet with Pierre Elliott Trudeau, then Prime Minister, to take on the chairmanship of the CRTC.
"I had to tell him that my father had thought he (Trudeau) was one of the three most dangerous men in Canada," says Bureau. "Trudeau laughed and gave me the job anyway. I thought it would be an easy job. It turned out to be very hard, but also fantastic."
Bureau credits the fact that he was a lucky person with good parents and a good education as having played a major role in his having access to one high-powered, and high stress, job after another.
"Everything that's happened to me has been God-sent," he says. "I'm not a model of career-planning."
Perceived as a Dreamer
Nevertheless, Bureau's own 'pretty positive' characteristic has played a major role as well.
"I refuse to admit that anything we want to see is too difficult to be considered," he says. "Plus, despite my own career, I like to plan, to see in what directions we should aim, so that we're prepared to face surprises or events. I'm obsessed with looking to the future. I may be perceived as a dreamer, but it seems to work. Planning for the future is a necessary tool in today's management.'
Bureau credits Télémédia management for having inspired this trait and says it helps greatly at Astral, one of Canada's fastest growing and diversified communications companies, where, along with his official titles, he is also chairman of the strategic planning committee.
Still Strong on the CRTC
It also helped at the CRTC, Canada's broadcast regulator of which Bureau remains a strong supporter. He considers it Canada's last post if the country wants to retain its own cultural identity.
"We lost on tapes, records, books, movies," he says. "Close to 98% of screens in Canada are occupied by foreign movies. I'm appalled when I hear people say that it's time to get rid of the CRTC. It's a fantastic tribute to the country's leaders who saw the need of a strong broadcasting system, and to government regulations, that we have a broadcasting system that's admired worldwide.
"Entrepreneurship has been encouraged, and where originally there were three networks, now Canada has 54 specialty services. If we didn't have the regulator, we might as well run to the U.S. border and give up."
And while the CRTC has declared itself free from regulating the Internet, Bureau thinks that may change, now that the Internet is in wider use with streaming and other factors. "It has had to adapt itself to changing times and will have to continue to do so."
But it's Astral that takes Bureau's attention these days. Of Canada's specialty, pay, and pay-per-view channels, Astral owns wholly or in part, a total of 20 network licenses. Adding to its properties, it has purchased, for $224 million, Radiomutuel's eight FM radio stations, three AM stations, has part ownership of Radiomédia, which operates two of Quebec's leading AM stations, and has entered the outdoor market with the addition of Omni, the outdoor company. It also plans to file applications with the CRTC for new English and French digital services in its latest call for submissions by mid-April. The company also opened huge new state-of-the-art television broadcasting studios earlier this year.
Alliances Wanted
Astral management is now dealing with amalgamating all divisions, properties and staff. It's also looking at other partnership and business opportunities.
Among its immediate aims, says Bureau, "We want to be sure that our existing networks are equipped to be leaders in their field - not only to have a Web site, but to have a continuing presence in the webcasting world of the future.
"We want each of our properties, because of their specific expertise, to exploit the e-commerce of each niche opportunity. They must be present in each sector.
"And we must look at what aggregate role we can play with all these elements, so we're looking at where we can get some alliances. We don't pretend to know everything. We bring content and expertise to the table. We can use these assets, so we want to see where and how we can work with others."
Pushing the Astral Brand
The company recently changed its name from Astral Communications to Astral Media to give a better focus on what Astral has become. Until now the company has pushed its individual properties, but with a name that's now more reflective of its offerings in both traditional and new media, the aim is to brand Astral Media very strongly in the future.
"It's important to be seen as a provider of content, to be perceived as knowing how to select quality content," says Bureau. "If we can form alliances with new media on a larger scale, that's great. But more importantly, new media and the future are dependent on the quality of content. The rest is hype and technology. We have access to quality content and niches and we're in categories that are there for the long haul.
Intelligent Programming
"Audiences are not potatoes. We're offering viewers programs that are intelligent. For example, 75% of prime time programming on Canal D is devoted to documentaries. We're in at the beginning of a renewed interest in documentaries, and in history with Historia. And we're there with Canal Famille, and with entertainment, with movies, programming that people have traditionally enjoyed.
"We have two objectives: quality and intelligent programming. We believe that this is what has a future, so we come with that kind of programming and expertise. We will be able to grow with it, either by ourselves or with others, bringing value to the table."
Astral channels now offer practically everything that a daily newspaper offers, short of sports. It's not an area that Astral plans to enter, though.
"We've thought about it, but couldn't afford it," says Bureau with a touch of humour. "We don't have the expertise to be successful in that type of business. I personally don't, so I always worry about looking a little bit in that direction. However, with Radiomédia, where we share 50-50 ownership with Télémédia, we own a French-language radio sports network covering 40 stations. So we're very much involved on the sports side."
Saturdays are Sacred
Lack of sports is one area where Bureau admits to lacking involvement in his personal life as well.
"I've been lucky in that I've been healthy, because I'm sure the doctors have realized they've been wasting their time over the years telling me to exercise. I have lots of equipment at home, but I don't use it. And I don't spend time on the golf course.
"It's difficult to manage time to be with a family and activities unrelated to work," says Bureau who, with his wife, has three sons and five grandchildren. "But when I'm on holidays, I'm on holidays and I don't want to be bothered at all during those times. And I try to use Saturdays to see my grandchildren and to settle any family-related problems. My children and grandchildren take priority. Saturdays are sacred. I work Sundays."
No Interest in CFCF
But work is fun to Bureau. In fact, he says that one of the reasons Astral has had no interest in bidding for CFCF is that, "It's not in our culture. I've learned from experience that it wouldn't be fun.
"When I was president of Télémédia, I was used to dealing with 'affiliated' situations on behalf of television stations in Sherbrooke and Trois-Rivières, both affiliated to TVA. When you have to buy your programming from one source, and you have to renegotiate the price of this programming every year, if there's a slight price increase and you don't have any other alternative, you can be put out-of-business.
"I've lived this and it's a dangerous position. So I wouldn't want to be put in this situation with CFCF. The CTV network could every year decide what is the price for programming and then you're just a front for them.
"We have to think about things like that. And I remember when CHLT in Sherbrooke needed one camera. When it asked Télémédia for one, it took care of the whole capital expenditures budget for all the radio stations and was at the expense of their needs.
"So I wouldn't want to be put in that situation again where I'd have to feed and clothe TVA or CTV at the expense of our specialty services. It's a fundamental choice. We like what we're doing and don't want to jeopardize our success."
A Portal Would Need Partners
With Web content and webcasting becoming an integral part of each specialty channel's existence, it brings question as to whether Astral might create a larger information and entertainment site that would feed off the individual sites.
"We will have some structure to support the development of these Web sites and webcasting at the level of Astral but the initiative of using it and of offering it to the audience still remains at the level of our individual units," says Bureau. "We will be there to support them collectively so that they can have the best tools.
"But when we look at alliances, there's a bigger picture. It is there that perhaps we could perhaps use some of the elements offered by each of our properties to be part of a portal, with partners. But I can't imagine that we would be the only supplier of content."
Advertising Playing a Bigger Role
On the release of Astral's annual report, Bureau and Astral Media president Ian Greenberg noted that Astral Broadcasting is the biggest growth area for the company that offers, besides its media properties: Artech Studios, developers of new media games and software (51% ownership); Covitec Group Inc., offering film and video post-production services for the motion picture and TV industry, along with sound stages and equipment rental (63.2% of the publicly traded company); and Astral Video Group, duplicator and marketer of videos, music and related products. Total revenues from operations for 1999 reached more than $375 million, with net earnings of $14.9 million. The Broadcasting Group's revenues totalled $138.1 million of the total.
Within that, Astral's pay TV and pay-per-view are currently the biggest contributors. But that may now shift.. In the past, Astral's channels didn't rely on advertising revenues. However, Astral has now moved aggressively into that area, which will probably bring about more of a balance, says Bureau.
Within its current channels, Teletoon and Canal Vie have proven top sellers for advertising. However, the three newest channels: Historia, Series + and Z, have attracted major interest since their launch at the end of January. In fact, their early ratings showed a stronger debut than any of Astral's previous channels with the exception of Teletoon.
Packaging Properties
To date Astral's properties have been marketed individually. However, Bureau says that the company is now looking to develop synergies among its various sales units, perhaps packaging, for example, MusiquePlus, a radio station and outdoor postings.
"We're currently working on that idea," says Bureau. "It hasn't been done before but now we can offer cross-media packages so it's easier. We're currently researching, talking to agencies and clients to see what interest there might be and how profitable it can be for us."
It's a new venture for the company that has been, until recently, basically subscriber-supported. But research has long been part of its picture, because, being subscriber-based, it has had to be close to its audiences and their tastes, expectations and needs.
A Montreal/Canadian Company
Those audiences are both English and French, and, as such, the company is seen as both a Montreal firm and as a Canadian firm - with an office in Toronto but with its roots and heart in Montreal.
"Based on Harold's decision (the late Harold Greenberg, Astral founder), Montreal is where we're from and where we'll remain," says Bureau. However, management personnel like Lisa de Wilde, president and CEO of Astral Television Networks and head of the Toronto office, spend much time travelling between the two cities.
"Air Canada should give us Super Elite cards," jokes Bureau, who travels to Europe three of four times each year, as well as to New York and Los Angeles three or four times annually, and "to both Toronto and Ottawa a lot."
When at home, Bureau's days usually begin with a business breakfast at 7, allowing him to get to the office by 8:30. Then it's a case of meeting in or out of the office, lunch with the company partners or people with whom he works, more meetings, and, very often, business-related dinners or events.
Despite the long days, Bureau enjoys it immensely.
A Family Feeling
"We're all still benefiting from Harold's attitude and vision of the world and his great Canadian pride, as well as his love for Quebec and Montreal," he says. "We try to maintain that. We're not a big company, but everyone feels like they're part of a family."
To foster that family feeling, former Radiomutuel employees at the radio stations throughout Quebec were all recently visited and offered a chance to buy Astral shares at a 10% rebate, with no brokerage fees, and given two years to pay for them. They subscribed for a total of $1.3 million.
"They were so excited to find that they could be part of the company," says Bureau. "That kind of enthusiasm and sharing creates a better understanding. And we'll continue to visit their stations regularly, to keep in touch with their plans, their budgets, their efforts, their environment, their competition."
On their side, the employees were anxious to learn of Astral's plans, and where it is going in the future, in terms of stations, channels, advertising, and its offerings to subscribers. Direct-to-home distribution by satellite was of major interest.
"DTH has been really great for us," says Bureau. "A total 60% of subscribers take the whole package. It has so many advantages: no box or a fee for a box and no piracy." On cable, Astral's scrambled pay services are regularly pirated to the point that there are five times more people watching than are subscribing on cable. "It means that cable holders are losing money; program rights-holders are losing money; we're losing money. It's depressing. I hope that cable operators will switch completely to digital soon so that piracy will stop."
Future Moves
Astral has no intention of moving outside of Quebec in the radio field, but it has moved into the U.S. market with installation of its Omni outdoor products in Cleveland.
"We're negotiating with other cities about the same size as Cleveland," says Bureau. "We want Cleveland to be a showcase."
In TV, Astral has been approached to expand in Europe. It would mean investing with other partners in a startup operation. "We're looking at that and we're talking to some people who have approached us, but there's nothing planned at the moment."
As for the future, "at this point our short term goal is the full integration of Radiomutuel, " says Bureau. "It must be done properly. Our mid-term goal is to occupy as much of the field within the Canadian broadcasting system as we can. And long term, it's to increase the value of the company substantially, so that everyone will feel great just being a part of it."
On a personal basis? " I'm devoted to what I'm doing here. I love it. I'm surrounded by friends. My goals are Astral's goals. "
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