Also in this report:

– Ontario: local players aiming regional 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.

Who will get the next Seinfeld?

That, in somewhat simplified terms, is what media planners and buyers have been asking themselves since February’s announcement that Baton Broadcasting System (bbs) has assumed majority control of CTV Television Network, through a swap with chum.

The deal – which has Baton trading $10 million and four of its Ontario stations for chum’s four stations in the Maritimes and its 14.3% stake in ctv – is expected to level the national broadcast playing field and pit Baton more fairly against primetime programming giant CanWest Global.

And that means more head-butting between the two networks when this fall’s programming negotiations roll around, says Bruce Claassen, president of Genesis Media in Toronto.

The networks have, of course, been competing for years. But Baton’s enhanced control and reach will now improve its chances of nabbing top programming, Claassen says. Global currently has a lock on most of the top-rated primetime shows, including Frasier, Seinfeld, Friends and The X-Files.

This heightened competition may in turn serve to drive up program prices. And if there is a bidding war for top programming, the impact will inevitably be felt by advertisers, predicts Mary Falbo, executive vice-president, director of media for Toronto-based Bates Canada.

‘The fact of the matter is, if they’ve paid a premium, then we will, too,’ she says.

Claassen, however, doesn’t think the potential for higher rates will turn off advertisers. ‘It’s still more efficient to go with the top programming,’ he says.

David Cairns, president of David Cairns and Company Media Management in Toronto, says this deal doesn’t alter the fact that, for the time being, those interested in a tv buy are operating in a demand marketplace.

Current rates, says Cairns, are nothing short of ‘astonishing,’ and a shuffle of the ownership deck isn’t likely to change that significantly. Still, in the long term, a stronger bbs may have a positive impact on pricing.

But before that happens, he says, bbs has a few hurdles to contend with – not least of which is the challenge of defining itself to both the public and the advertising community.

There is the matter of network branding, for instance. With Global, viewers and advertisers know exactly what they’re getting. But bbs is a less identifiable commodity. Cairns says he finds the current bbs logo confusing, and cannot fathom what the benefit would be of mixing the bbs and ctv logos.

‘Either bring meaning to it or just get rid of it,’ he says.

Once bbs succeeds in defining itself as a national network, it should be an exciting partner with which to do business, Cairns says.

‘Over the last several years, ctv has really turned around from being stodgy order-takers to being innovative,’ he says. And Cairns expects that trend to continue, especially now that a couple of high-profile ex-cbcers have come on board: Gary Greenway as bbs senior vice-president of marketing, and Ivan Fecan as president and ceo of Baton.

With those two in the mix, he predicts, ‘bbs is going to become the for-profit cbc.’

While Falbo agrees that having Greenway in the driver’s seat is good news for advertisers, she’s less concerned about the branding issue.

People simply don’t know – or care – about station identification, Falbo says. ‘Viewers watch programming, not stations. They watch Seinfeld, The Single Guy, Cybill.’

Doug Newell, partner with Toronto-based Harrison Young Pesonen & Newell, says that for now at least, the ball is still in Global’s possession.

Because of the more local service behind bbs, its cost structure is not as advantageous as Global’s, he explains. The up side, however, is that Baton could establish the network as a specialist in local news, which would help attract advertising dollars.

Newell says he can’t imagine Global maintaining its strong programming lead forever. ‘It’s tough to stay on top,’ he remarks.

It’s not just bbs that poses a challenge for the network, either. Western International Communications (wic) of Vancouver may also become more of a contender, as it builds a stronger base to negotiate for national program rights.

Newell is optimistic that all this competition spells good news for planners and buyers.

‘Rates are going to be competitive,’ he says. ‘This is a great time to be in tv advertising.’