Vancouver: The onslaught of new digital channels launching in Canada this month means an onslaught of foreign trademarks at the gate – putting direct pressure on Canadian brands protected to date by the CRTC’s culture rules.

Notable among the newcomers is MTV, the ubiquitous American brand for youth, music and urban living, which will debut in Canada through its new partnership with Craig Broadcasting.

MTV Canada, a Category 1 digital licence formerly known as Connect, will feature 50% Canadian content when it launches Sept. 7, says Wayne Sterloff, Craig’s VP of specialties, and offer a different mix of programming than MTV in the U.S.

MTV, which has evolved over 20 years from a music video station to a lifestyle station, is seen in about 140 countries through more than 30 distinct services like MTV Canada, he adds.

Should the emergence of MTV Canada make veteran MuchMusic worried? Sterloff doesn’t think so. He says that existing programming contracts MTV has with MuchMusic will be honoured and the two services will not compete head-on. MuchMusic is music video-based, while MTV Canada promises to be more lifestyle-based. He also says the stations will go after different demographics, with MTV Canada skewing to the 12-to-24 group and MuchMusic attracting an 18-to-34 crowd.

And then there is the issue of core audience, with MuchMusic reaching eight million Canadian households and MTV Canada just two million homes with digital hookup.

MTV Canada, meanwhile, will dedicate 43% of gross revenues to the acquisition and creation of Canadian content, an investment that Sterloff says will maintain Canadian culture and develop Canadian cultural programming that may travel through the vast MTV network.

Already, MTV Canada has acquired the entire inventory of extreme sports programming by Calgary’s Ride Guide Productions and has licensed the company to create new extreme sports programming under the Fusion banner.

The CRTC is exacting about the structural arrangements with foreign partnerships in the new digital channels. Foreign equity ownership must be less than 20% and control of the service must lie with a Canadian board of directors, but that doesn’t mean that the foreign brand loses control of its trademark.

Craig, for example, has entered into a consulting agreement with MTV to ensure that original programming, promotion and other aspects of operations meet with the MTV brand’s quality standards.

As part of Craig’s deal with MTV (and parent company Viacom), it will also launch an MTV music channel and TV Land Canada (the Canadian version of a classic television service already seen in 62 million American homes) as Category 2 licences in September, and eventually two other MTV channels.

Given the fact that Category 2 licences are not guaranteed carriage by companies such as ExpressVu and Star Choice, there are few CRTC controls on the Category 2 start-ups.

Services such as TV Land Canada and BBC Canada (owned 50:50 by Alliance Atlantis Communications and BBC Worldwide) will begin year one with 15% Canadian content, expanding to 35% by year three.

‘We want to bring the best international brands to Canada,’ says AAC spokesperson Sue Bowen.

AAC’s 50:50 partnership with National Geographic in the National Geographic Channel is another example of the original brand being ‘consulted’ on the handling of its trademark. AAC is also involved with Discovery, another household name brand.

‘We have wonderful partnerships with international companies and access to programming not seen anywhere else,’ says Bowen. And on the issue of competition for existing Canadian broadcast brands: ‘This is all about choice,’ she says. ‘We have all been forced to be smarter. Branding is a key strategy.’

If there are branding points for a carrier off to a quick start they go to Bell ExpressVu, which is already marketing its 40-plus new digital channels, its free seven-week preview period beginning Sept. 7, and a $100 programming credit for customers.

‘We want to make sure [customers] have time to experience all of our programming so they can make long-term choices that are right for them,’ says David McLennan, president of Bell ExpressVu, which claims 40% of Canada’s digital subscribers.

ExpressVu has developed 15 themed packages, with the various new channels grouped together with titles such as More Sports, More Variety, Learning, Lifestyle, Kids and Destinations. Customers can purchase the packages for prices ranging from $4.95 to $7.95 per month per package. Digital customers can also choose individual channels for $1.99 per month.

However, the company says most business will come from customers buying Super Packs, which are a combination of local channels and theme packages.

ExpressVu says it chose to carry digital channels based on their brand strength, consumer appeal, financial stability and commitment to programming. *

The following list highlights the Category 2 services launching this fall, as confirmed at Playback’s press time