Also in this report:

– Shuffle pits Baton against Global: Bidding wars expected to drive up program prices, national advertising rates p.20

– English Quebec picture favors buyers: Global’s arrival expected to increase competition, lower prices in one of Canada’s most expensive TV markets p.22

– Delight and skepticism greet changes in West: Many expect arrival of new Vancouver station will bring only temporary relief from high rates p.24

– Aggressive branding the name of the game: Newer specialty services face greatest challenge in establishing distinct identity p.24

– Bigger not always better: Quality of audience sometimes more important than quantity p.28

In a matter of a few short months, the television landscape in Canada has changed dramatically.

A series of recent developments on the ownership and licensing front promise to alter the broadcast playing field at both the national and regional levels.

The most attention-grabbing, by far, is Baton Broadcasting System’s move to acquire majority ownership of CTV Television Network – a deal now awaiting final approval from the Canadian Radio-television and Telecommunications Commission. That spells tougher competition nationally for CanWest Global Communications.

Global is also facing new challenges in the Ontario market, where formerly local stations are remaking themselves as regional players. And it is moving into Quebec, where it will battle the long-dominant cfcf for a share of the English-language market.

Add to all of this the licensing of new stations in Vancouver, Calgary and Edmonton, and suddenly it starts to look like a brand new broadcasting ball game. To help make sense of it all, Strategy has asked media directors to offer their analysis of these changes from an advertiser’s point of view.

In addition, we check in with Canada’s specialty tv channels, for a discussion about the challenges of establishing their brands in an increasingly crowded environment.

Where Global goes, others follow.

So seems to be the case in Ontario, anyway, where formerly local players are now vying to establish the same kind of regional presence enjoyed by CanWest Global.

In recent months, Hamilton’s chch has been relaunched as ONtv, and has extended its signal from Hamilton-Toronto into Ottawa. Plans are in place to add six more markets this spring.

chum’s recent swap with Baton Broadcasting System (bbs), meanwhile, spells four additional Ontario stations for the Toronto-based broadcaster, which already owns Barrie’s ckvr (The New VR) and Toronto’s Citytv. And this after the crtc had already given the nod for City to extend its signal into the Ottawa, London and Kitchener markets.

The wellspring of all of this change? In a word, Global.

‘Everyone’s looking at the success of Global,’ says Sue Bailey, vice-president, media director for Padulo Integrated in Toronto. Global has been able to charge a premium for its programming and its coverage, she explains – and that’s something other broadcasters want to emulate.

‘To a certain extent, Global has established a model,’ says Bruce Claassen, president of Genesis Media in Toronto.

Ontario is a rich market, Claassen says, and the recent changes make it a more interesting place to negotiate tv.

‘I think there will be incentives to ensure that you’re `on the buy,” he says, particularly from regional underdogs City and chum.

Mary Falbo, executive vice-president, director of media for Toronto-based Bates Canada, says that until now, Global has enjoyed the advantage of being the only regional player on the map. Recent developments mean not only more opportunity for advertisers to reach their audience, but more room for negotiation.

‘Global might find that they’re going to start to lose money,’ she says.

Bailey agrees. Citytv, in particular, could emerge as a solid challenger, she says. Although essentially a Toronto-centric station, it offers an appealing lineup of movies in primetime that could attract a strong following in cities like Ottawa and London. And that could take the edge away from Global.

It won’t do, however, for City or ONtv to suddenly start charging for regional coverage simply because their signals are now beaming into new markets, she says.

For years, Bailey notes, City has been trying to convince buyers that it is a regional player. In fact, it used to distinguish between its Toronto markets and what buyers considered spill into Kitchener and London, and tried to charge for both – to little avail.

‘We never did it, so we’re not going to be quick to do it now,’ she says. Advertisers, to put it simply, are going to have to see the numbers to support regional coverage before they plunk down regional money.

As for ONtv – well, a new name and new logo do not a regional player make, Bailey says. The oft-repeated adage that viewers watch programming, not stations, may be useful to bear in mind in this case.

‘chch doesn’t have the type of programming Global or bbs has,’ she says – and programming, at the end of the day, is what determines winners and losers.

Many in the media community are concerned that the trend toward regionalization in Ontario may leave some advertisers out in the cold.

Toronto-only advertising is going to be more difficult, predicts Falbo. ‘Advertisers are going to have to make the decision based on programming environment and affordability.’

While prosperous firms doing business in several Ontario cities may find the one-stop regional buy advantageous, Bailey says, advertisers selling goods or services only in the Toronto market may not see the point of putting money into tv, given the degree to which their message will be wasted. Smaller retailers, in particular, may be adversely affected.

For now, however, Bailey says she’s in wait-and-see mode.

When it comes down to it, she adds, buyers could care less about ownership issues. They’re interested in two things: what programs are airing, and who’s watching them.

That kind of data isn’t going to be available on the new regional players right away, Bailey says. And until it is, the situation is likely to remain fairly static.

‘We’re going to be able to negotiate and keep rates where they should be,’ she says.