The New York Times Co. joins Torstar Corp. in developing Popcorn Channel; Marks Times Co.'s First Cable Network Involvement; New Basic Cable Network slated to launch end of 1st Quarter 1995

Business Wire, Nov 21, 1994

NEW YORK--(BUSINESS WIRE)--Nov. 21, 1994--The New York Times Company has joined with Torstar Corporation, the parent company of The Toronto Star, in developing Popcorn Channel, a new basic cable network scheduled to launch at the end of the first quarter of 1995. The agreement marks the Times Company's first involvement in cable network.

At launch, Popcorn Channel will provide viewers with television's only localized movie theater listings along with previews of the top motion pictures in current release. As Popcorn Channel develops, also to be offered are movie and entertainment-related products through its electronic "Entertainment Superstore" as well as ticketing services. The channel is also exploring opportunities for on-line and other multimedia products.

The Times Company's involvement is expected to bring strength to Popcorn Channel through, among other things, the Company's relationships with movie studios, its production facilities and cross-promotion opportunities. The investment represents a significant step forward in the development of Popcorn Channel, which will utilize the state-of-the-art television facilities of NYT Video Productions, based in Scranton, Pennsylvania.

"This is a great opportunity for the Times Company to expand its video programming operations. The Popcorn Channel is unique because it will be a national cable network with movie trailers that will also provide viewers with the local movie listings in their own neighbourhoods," said Lance R. Primis, president and chief operating officer of the Times Company. "We are delighted to team up with Torstar and Popcorn Channel on this exciting venture."

Torstar Corporation, which now owns an 80 percent interest in the Popcorn Channel, will become an equal 40 percent owner with the Times Company. The remaining 20 percent will be owned by Salter Street Films Ltd., which is based in Halifax, and Popcorn Channel's management in New York. The closing is subject to the satisfaction of certain conditions.

David Galloway, chief executive officer of Torstar, said, "We are very excited about having The New York Times Company as a partner in Popcorn Channel. We hope that this is the first venture of many that we share with them. They represent a valuable potential partner in further multimedia projects."

The Popcorn Channel was conceived by Michael Donovan, a Canadian film and television producer with extensive experience in the film entertainment industry. He is the president of Salter Street Films Ltd.

Angela Pumo, president and chief executive officer of Popcorn Channel, said, "The investment made by The New York Times Company, one of the world's most prestigious media organizations, is a testimonial to the enormous potential of our new network." Added Ms. Pumo, "Just as The New York Times sets the standard for movie-going information in the print medium, Popcorn Channel will be the pre-eminent provider of high quality movie information on television."

The New York Times Company is a diversified media company with revenues in excess of $2 billion and has the following lines of business: newspapers, magazines, broadcasting, information services and forest products. In addition to The New York Times, the Company publishes The Boston Globe and 28 regional newspapers and owns a one-half interest in the International Herald Tribune; publishes numerous sports leisure magazines; operates five network-affiliated television stations, a video production company, two radio stations, a news service and other information services and has interests in two newsprint mills and one supercalendered paper mill.

Torstar Corporation is a broadly based information and entertainment communications company. Its operations include The Toronto Star, Canada's largest daily newspaper; Metroland Printing, Publishing & Distributing, publishers of community newspapers and distributors of advertising materials; Harlequin Enterprises, the world's largest publisher of series romance fiction; Miles Kimball, direct mail catalogue marketers of home and gift items; Frank Schaffer Publications, a leading producer of children's supplementary educational products, and a 50 percent interest in Hebdo Mag Inc., a publisher of classified advertising magazines and papers in Canada and Europe.

CONTACT: Torstar Corporation

              D.C. Wetherald, 416/869-4232
              R.J. Steacy, 416/869-4031
              The New York Times Company
              Nancy Nielsen, 212/556-7078
              Popcorn Channel
              Marcia Norcia, 212/941-2419