It’s a sweet surprise for Atlantic Canada producers but the production community at large will see limited tangible short-term financial benefits stemming from Baton Broadcasting Systems’ taking control of the CTV Network.

A two-year $1-million top-up fund from Baton and a new $1.9 million kitty over seven years for script and concept development via chum are the limits of the national incremental production benefits should the crtc approve the Baton/chum property swap. crtc hearings are slated for July 15.

For several reasons, the ‘what d’es it all mean?’ question surrounding the Baton takeover of ctv is left largely unanswered by the filings in process on the deal which facilitates an expanded Ontario presence for chum and an east coast distribution anchor for Baton. At the same time, bbs is taking controlling interest in ctv by purchasing chum’s 28.4% piece of the mother network for $10 million.

Among the reasons to defer the big questions are the fall hearing slated to establish national network benchmarks and the potential rejigging of ctv’s ownership structure post commission approval on the property exchange.

If the crtc approves Baton’s control of ctv, the transaction triggers a ‘put’ clause which would allow the other ctv shareholders to force Baton to purchase their piece of the network for $10 million per 14.28% interest. Both ctv’s Affiliation Agreements and its licence expire in August 1999 and the affiliates could take the time between now and then to sell or renegotiate terms.

Consequentially, Baton is proposing no substantive changes to its Promise of Performance, planning instead to file a detailed prospectus on the new ctv by the spring of 1998.

In the interim, in the offing is The Baton Canadian Literature Initiative, a $1-million two-year top-up fund over the remaining ctv licence term to help independent producers bring Canadian literature to the small screen. Productions commissioned by either Baton or ctv will be eligible for the fund which could kick in before the end of the year.

BBS Halifax

development office

Outside the co-op and regulatory speak, the microcosm of the Baton/chum exchange is yielding a Maritimes-focused benefits package.

In play are plans for chum to swap CJCH-TV Halifax, CKCW-TV Moncton, CKLT-TV Saint John, CJCB-TV Sydney (collectively known as Atlantic Television System or asn) and assets of the Atlantic Satellite Network for Baton’s Ontario properties CFPL-TV London, CKNX-TV Wingham, CHWI-TV Wheatley and CHRO-TV Pembroke. No money will change hands.

Although Baton is citing the Rogers Communications/Shaw Communications asset swap as a regulatory precedent illustrating a non-monetary exchange of assets d’es not require offering tangible benefits, it nevertheless is sweetening the pot with $2.3 million over seven years to open a new Halifax-based development office. Script and concept will account for $1.4 million of the funds, or $200,000 per year.

atv’s $30,000 talent development pool will be maintained, going to agencies including the Nova Scotia Drama League, Theatre New Brunswick and Theatre Prince Edward Island.

Also on the table is an offer to add four new one-hour documentaries per year from Maritime producers and six new Maritimes-produced episodes for Baton’s The Storytellers, cumulating in a programming commitment of $1.4 million over seven years.

To date 20 half-hours for Storytellers, a showcase for new filmmakers, are planned for Vancouver. All will window across the Baton system. Total licence fees for The Storytellers is $1.1 million over seven years.

At the chum end, the $1.9 million CHUM Television Canadian Programming Fund will be available nationally and is contingent on swap approval. Any genre of production is eligible, says Mark Rubinstein, vice-president, general manager for City-TV, MuchMusic and Bravo!

‘Ideally we’re looking for programs typically geared to the format of the station, those that are documentary-driven or feature film, even movie of the week, but essentially it’s wide open.’

Although the cftpa is filing support for the swap arrangement, it’s throwing a red flag to the commission on chum’s pitch to reduce the minimum expenditures on Canadian on the Ontario regional acquisitions.

‘From the perspective of the independent producer, it would seem that chum’s expansion into the most highly populated and lucrative market in Canada should result in a positive commitment to the development, acquisition and exhibition of Canadian programming in the under-served or under-represented categories.’

Rubinstein argues that the request to change Cancon programming expenditures from a flat fee to a percentage of gross revenues reflects the market reality for the affiliates, particularly chro which has been bounced around the dial and is showing a decline in revenue.

To the question of whether chum’s new 84% Ontario distribution triggers the need to make regional instead of local commitments to the system, Rubinstein says no.

‘As there’s more you’ll see more of one owner with multiple stations in a market. The current stations are owned by one company, so nothing has to change. And whether it’s chum, Baton or wic, the industry has changed so that smaller areas require the resources of bigger companies.’

BBS/CHUM strategic

alliance

Of equal interest on the broadcasting side is the program supply arrangement evolving between Baton and chum. Although a strategic alliance with Craig Broadcasting was food for thought last year, it looks like chum has hitched itself to a brighter star. Via Baton’s new Vancouver station civt and the asn, chum’s signature programming will clear Ontario, b.c. and a piece of the east coast this year.

chum has a five-year program supply arrangement in place with Baton, says Rubinstein. Although the Maritimes component of the agreement is limited to the cable offering, he says ‘It’s always open for Baton to discuss the same kind of arrangement for atn as we have for Vancouver, but we haven’t discussed it yet.’