Details remain sketchy, but Playback has learned that tvontario’s bid to form an independent not-for-profit corporation reportedly includes a distribution and marketing partnership with the private sector which names Atlantis Communications and Discovery Channel parent Netstar Communications as contenders for the potential deal.

If tvo’s not-for-profit proposal is accepted by the provincial government, one of the two companies would allegedly land the rights to distribute and market tvo’s programming and ancillary properties. However, some sources indicate that more than one company could be involved in the final partnership.

The business plan, endorsed by tvo’s board of directors and submitted to the minister responsible for privatization last April, lays out both a private and public-sector partnership. A consortium led by the University of Toronto and another by York University are the alleged bidders for the public alliance, which would involve the marketing of tvo’s educational services.

The initiative would be part of a strategy to reduce operating costs at the broadcaster and reduce reliance on government subsidies.

The proposal reportedly calls for staff levels to be cut in half and a reduction in the provincial subsidy by $100 million over a five-year period.

tvo director of communications Ellen Cole says ceo Peter Herrndorf cannot comment on the business plan as an agreement was made with the Privatization Secretariat not to disclose details until the final list of proposals is made public.

But she says the proposal does not exclude or preclude current or future partnerships with other companies besides Atlantis and Netstar. Cole adds that tvo’s board of directors is prepared to examine other possible options for tvo’s future.

A copy of Herrndorf’s Sept. 18 speech to staff at the fall launch corroborates with the alleged partnership scenario, stating that under the terms of the not-for-profit bid, ‘tvo’s ability to deliver high-quality programs and services would be strengthened by strategic partnerships with a consortium of colleges and universities; with one or more private broadcasting or production companies.É’

Atlantis Communications’ Lewis Rose confirms that the company has been in discussions with tvo as a potential partner in its not-for-profit scheme and is interested in participating in program production, coproduction and distribution arrangements with tvo, as well as offering synergies with its animation and post-production companies and broadcast stations.

Rose says the company has also been in discussions with the Privatization Secretariat to play a role in tvo’s future if one of the other options under consideration – complete privatization or a joint private/public venture – are the government’s final decision.

As an Ontario owned and operated production and distribution company, as well as a broadcaster of information and educational programming (Life Channel, hgtv, Food Network), Rose says Atlantis is in a favorable position to play a role in the province’s privatization initiative, and with the recent awarding of sponsorship of a trio of American specialty channels, is ‘in good standing with the crtc.’

According to the tvo staff fall launch notes, although tvo would remain non-commercial under the plan, it would significantly increase its revenues through underwriting, sponsorship, foreign sales and membership.

The primetime schedule would become self-financing through ‘an aggressive earned revenue strategy.’

tvo would diversify its funding for tfo by distributing the service to cable companies in various parts of the country and ‘generating significant subscriber revenues,’ says Herrndorf, by developing new sources of sponsorship and underwriting revenue; and negotiating additional federal government financial support. The notes indicate ‘we hope to move [tfo] into a number of other provinces in the coming season.’

Designated as the provincial educational broadcaster, tvo would negotiate a stable, multiyear ‘fee for service’ agreement with the government to cover costs of its formal education programming and services, ranging from children’s and programs designed to serve elements of the common curriculum in Ontario schools, to skills training and professional development. An initial five-year agreement is proposed which would translate into substantial financial savings for the government.

Currently the government receives a $49.5 million a year subsidy, a 20% reduction from the $67.5 million it received in ’91/92.

Although the proposal indicates tvo would operate at an arm’s length from the government, a new board of directors would give government reps several seats. Under the current setup the province does not hold any seats but does approve nominations to the board. The public and those with a particular interest in tvo’s educational mandate would also be represented.

The launch notes applaud tvo’s successful revenue-generating initiatives, which include subleasing its three analog satellite channels to ExpressVu in exchange for $5 million in cash; expanding the tfo service into New Brunswick; a deal with Global to take over its transmitter maintenance operations in Ontario; underwriting and licensing partnerships with major Canadian companies; and new licensing arrangements.

Membership revenues have climbed by 35% over the past four years to a record $6.1 million; program sales broke the $5-million mark in ’96.

The Privatization Secretariat, headed by Paul Currie, has hired a legal advisor to examine the legislative and regulatory implications of the possible options for tvo. Until the contract with the law firm is signed, the secretariat’s office says it will not release the name of the company awarded the contract.

A public input component of the review framework recently wrapped amidst much controversy over the slant of the predetermined list of questions the public was invited to comment upon.

tv reps at the public input session made it clear that the issue of privatization, tvo’s bid for a not-for-profit corporation and the proposals from private broadcasters should be on the table for discussion.

A number of private-sector companies have held discussions with the Privatization Secretariat about their interest in buying all or part of tvo, but no details have been released to the public.

Moses Znaimer and members of a consortium that bought Alberta’s educational channel access were awarded a licence last September to operate a national educational service, Canadian Learning Television, and the group has publicly stated its interest in acquiring tvo and running it as a commercial educational enterprise, likely as the centerpiece for Canadian Learning Channel.

Increased corporate underwriting, participants at the forum argued, could result in programming choices being dictated by major sponsors, a criticism already laid on the not-for-profit pbs in the u.s.