The competition for a regional sports channel is heating up with at least two more contenders reported to be facing off against the CTV Television Network’s S3, in the next round of specialty channel applications.
The majority are keeping plans quiet, but Labatt Communications is said to be pitching for two services, one of which is regional sports. Western interest in the same is thought to be coming from Grizzlies nba franchise-owners Orca Bay Sports and Entertainment, headed up by Arthur Griffiths, son of WIC Western International Communications founder the late Frank Griffiths Sr.
Other new applicants of note include Baton Broadcasting Systems, which will pitch at least one channel, says Ivan Fecan, executive vp and coo of bbs. CHUM Ltd. is going back to the table with at least two apps, one of which is a comedy channel. wic too will reapply for a comedy service.
CanWest Global Communications has yet to confirm its intent to repitch a service for the seniors audience, but the concept got a boost at last week’s cab convention. With a plethora of crtc commissioners attending the event, keynote speaker Richard Worzel, president of IF Research Corp, concluded his demographics analysis with a comment on the 65-80 target. ‘This group has money and will eventually rain down inheritances on the baby boomers. I don’t see much in the way of content for them. There should at least be a specialty channel.’
The number of pitches on the table come January is debatable, but Peter Lyman, senior partner in the Ottawa-based Nordicity Group is projecting 30 to 40. Sales for the 1996 version of its Specialty Services Tool Kit may not be as high as the first round when everyone was new to this and thought the services guaranteed to make money, but Lyman says the radically different environment could drive upwards of 20 or more sales of the application reference guide covering regulatory, technical, tiering, penetration and market research information.
Whatever the number of pitches, the common thread among them will almost surely be that the backers come with deep pockets. The rocky first year of the six newest services has placed the emphasis on iron-clad business plans, and although most hesitate to say it, the balance between culture and commerce may have tipped towards commerce.
Susan Baldwin, director general, broadcasting policy, for Canadian Heritage, says the broadcasters are attracted to specialty licences because it gives them a chance to diversify, ‘but they’re also somewhat cautious because they need solid financial backing to do this. I think an issue is one of viability and the ability to compete in the marketplace.’
Responding to speculation that the upcoming hearing may be the last for new services in the foreseeable future, CanWest’s Kevin Shea says the crtc should damn the torpedoes and let the audience decide what survives.
‘It’ll be the last round if the crtc does the right thing. From a business planning point of view, I hope they license every proposal they see as long as it has solid financial backing, and then send them to market to battle it out.’
That the market was not ready to accept any more new services is widely thought to be the reason behind the extended application period, which was moved ahead six months to Dec. 31, early this summer.
One crtc exec says the extension was more a matter of repositioning the specialty hearings to accommodate other big events including the dth licensing in process now and the access hearings in February. However, another says it would have been difficult for new applicants to build a business plan ‘while the first round was still salvaging the remains of theirs.’
Word is that the crtc will issue an open call for petitions to add to the Eligible Services List after the next round has been licensed, giving cable operators the greatest volume of services to package in 1997.