Last week’s melee of broadcast property swaps will strengthen the buying power of the CTV Television Network’s affiliate stations and may lend greater strength to applications for new services in the upcoming round of hearings.

Pending crtc approval, the group of interconnected deals sees Shaw Communications owning 34% of ytv and 29% of New Country Network, Baton Broadcasting Systems taking over cfcn-tv Calgary, and Rogers Communications assuming Shaw’s cable holdings in b.c.’s Lower Mainland.

In tandem, Baton and Electrohome signed a joint-venture agreement to set up networks in the west and east. Out west, Electrohome will buy a 50% stake in Baton’s six stations and cfcn, and will run the operation from its Edmonton-based station, cfrn-tv. Baton will manage the eastern contingent, which includes its stations cfpl-tv London, cknx-tv Wingham and chwi-tv Windsor, and Electrohome’s ckco-tv Kitchener.

ctv president John Cassaday says ctv affiliates are stronger as a unit than as individual stations. ‘They’ll have a better marketing presence acting as a group in the west and a group in the east rather than as individuals scattered throughout the country.’

That presence will directly affect the sales department, which will be able to sell airtime based on penetration for the cumulative audience of stations from Alberta to Ontario instead of as a single station. Plus the economies of scale will be stronger, making the groups better able to buy quality programming, says Cassaday. ‘What you’ll see are less bingo and exercise programs and more quality programming in the smaller markets.’

Pat MacDonald, the new president of ytv, says Shaw has always been an active force in ytv and doesn’t expect significant changes as a result of its increased ownership, but having a controlling shareholder at the helm of ytv may strengthen its position if it decides to apply for a new service in the upcoming January crtc hearing.

ytv is ‘actively looking’ at applying for a new service and will be looking to the board for input into that decision, says MacDonald.

Outside of a potential application, having one controlling force in the company will enable ytv to move faster in an increasingly competitive environment. ‘When there’s three players, you have to get everyone to agree, so it’s good from the standpoint that we’ll be able to make decisions faster,’ says MacDonald.

Fielding speculation that bbs is looking to take over controlling interest in ctv, Ivan Fecan, executive vp and coo of bbs, says there’s no question that the current structure of ctv is lacking.

‘Having one view of things is a positive thing in this environment, and shareholders on the board, by virtue of what their interests are, are in competition with ctv. It makes things more difficult and complicated than it has to be.’

Fecan won’t comment on whether Baton is pursuing control of ctv. With the $75 million purchase of cfcn, Baton retains cfcn’s interest in ctv, bringing its ownership of the network to 28.6% and giving it two seats on the seven-member board. A voting trust agreement with Electrohome gives Baton three seats in total on the ctv board.

‘I will say that we have a strong interest in broadcasting and I think the shareholders as a group believe in a strong ctv. But I don’t think everybody has the same idea of how that might happen,’ says Fecan.

It wouldn’t be a day at ctv unless ownership of the network was up for debate, says Cassaday. But the reality is that the shareholders are bound by an agreement that no one can be forced to sell his shares. ‘It would have to be a unanimous decision.’

ctv’s board of directors is made of up Cassaday, Douglas Bassett, chairman and ceo of bbs; John Pollock, chairman and ceo of Electrohome; Anthony Viner, president of Rogers Broadcasting; Fred Sherratt, president of Atlantic Television System; Randy Moffat, president of Moffat Communications; Adrien Pouliot, president and ceo of cfcf; and Douglas Holtby, chairman of the board for Westcom TV Group.

WIC Western International Communications is widely believed to be preparing to rival any takeover bid Baton may initiate. It’s too soon after the mass exchange of properties to talk about what it all means, says Holtby. ‘But we have great confidence in the network and if the opportunity could arise where we could increase our position, we’d definitely be interested.’