for Citytv

The Christmas shopping frenzy began a month early at Citytv/ Much Music.

The pioneering broadcaster’s November purchases include shares in an Argentina music television station, the acquisition of an Alberta-based educational network, and broadcast rights to the Toronto Raptors basketball team. This is only the beginning of a buying spree that could include a u.k. television station and a Canadian educational specialty channel by the end of next year, says Jay Switzer, vice-president, programming for CHUMCity.

Owned by CHUM Ltd., Citytv and MuchMusic’s buying credo is relatively straightforward: spend small amounts of money, partner with an international city possessing a strong local producer to create distinctive local television, and be slave to City’s signature treatment of the television medium in any new venture, from educational tv to drama programming to basketball games.

In Switzer’s words, ‘it’s the Wild West out there’ for broadcasters, and the climate evolving is especially suited to City’s local programming specialty. If there’s a choice between programming that originates locally, or a satellite broadcast from Atlanta, chances are loyalties lie at home, he says. Switzer is betting that will be the case in London, Eng. as applications for licensing of a fifth British commercial television licence begin for a second time.

It’s unclear whether City will play the role of producer or partner in Channel 5, but City president Moses Znaimer is exploring opportunities with as many as five groups that have formed to bid for the licence. A formal call for applications is expected in December, with filing scheduled for May or June, says Switzer. In the meantime, ‘everything’s in play and all the parties are dancing.’

A 1995 pitch will be Znaimer’s second attempt to bring City’s unstructured, self-styled television to London. In 1993, the Independent Television Commission, Britain’s industry regulator, rejected a bid made by Znaimer and partners Thames Television and Time Warner.

At the time, City was the only applicant. This round, there are five potential competitors, but Switzer is confident the British regulator will recognize the need for strong local television in London.

‘This is the last great English-language market that’s kept out the world, in a defensive way, and any other form of television. I think they’ve realized they better do it locally or it’s going to explode on satellites from other places,’ he says.

Currently without a local news station, London is prime territory to build what City builds best: television based on strong local voices. November’s buys may look diverse on the surface – education, Latin music, basketball – but Switzer says all fall into the specialization of, almost verbatim with the City tag line, the formula and art and science of local television.

‘Criteria for our buys is an area in which we can be a catalyst for a local voice being heard. We’re writing small cheques to start local ventures that can grow into strong local alternatives against international cable channels, against all that sameness.’

It’s a passion to do local television that brings City back to the Channel 5 table for a second time. There is the possibility of a second rejection or, conversely, enormous start-up costs that would mean breaking with City’s philosophy of investing relatively small dollars. (Minimum projected start-up requirement: $100 million.)

The problem of limited British cable services has deterred some from investing in piloting the station. In England, cable reaches only 74% of the population and doesn’t extend into London’s south end, one of the richer districts. It has not, however, discouraged City.

‘If you’re a cbc or a ctv size broadcaster, numbers like 50% reach look pretty bad. But to a local broadcaster like us, they look damn good. It’s all relative, and if this acts as a barrier to entry for other larger, less risk-taking broadcasters to keep away from the venture, that’s good for us. We have a totally different philosophical approach to television,’ says Switzer.

That philosophy pivots around a hot, urban brand of youth culture, which acts as a touchstone when City contemplates new investments. For example, Argentina’s high-energy, dance-crazed youth culture prompted chum to go from being an affiliate to the local music station, MuchaMusica, to being an investor.

chum’s November purchase of 26% interest in Canal Joven SA, operator of MuchaMusica, marked its first overseas investment in foreign television, and will spur expansion opportunities in South America, says Switzer.

‘It was an opportunity to convert some programming rights into equity and get a beachhead in South America. It’s the Wild West down there. It’s got a lively youth culture, a legitimate middle class, an advertising base and cable penetration – all the ingredients to make a go of it.’

The investment was projected to be in the $1 million range. All things considered, it was a small project with a relatively small investment, something City alone is equipped to pull off, says Switzer.

‘Our economics – exclusively our economics – allow for this kind of project. A larger, more traditional company wouldn’t know where to begin launching a local channel staffed by 18 people.’

Less than a week after the announcement of its first foreign television investment, City announced a programming first with the signing of a four-year contract with the new Toronto Raptors basketball team.

Raptors broadcasts will be the station’s first foray into professional sports programming, a new addition important enough to be tacked on the end of City’s slogan, now reading ‘News, Movies, Music, Raptors.’

‘On the surface it may look unusual, but it’s really just entertainment programming that’s urban, targeted to our market, and just happens to be sports.’

There are no plans for City to delve into more professional sports programming, says Switzer. In this case, there was a unique opportunity for City to participate in an event that will make the town go crazy with a team sport whose personality fit easily into the gritty urban City style.

‘Would we be in the football business? Or hockey? Probably not. It’s a new team in a new time where we can build their programming into our whole statement so that it looks and feels and smells just like us. It’s pure urban 18-34 and we can slide right into it without missing a heartbeat,’ says Switzer.

While the Raptors games may stand alone as City’s only pro sports programming, its November acquisition of the Alberta Educational Communications Corporation’s Access Network won’t be its only educational television project, says Switzer.

In 1993, Znaimer joined forces with Ron Keast, founding president and ceo of Vision TV, to form Canadian Learning Television, with the intent to develop and operate a national broadcast specialty service focusing on formal and informal learning. The purchase of Access from the Alberta government is still subject to crtc, but the project represents City’s significant commitment to the business of learning and television, says Switzer.

If the crtc approves the application, there will be a new emphasis on local Alberta production and some acquisitions will be replaced with local programming.

Educational television seems an awfully serious project for a station that’s built a reputation on flamboyance and unconventional programming, but Switzer says there’s no inconsistency in City’s overall plan.

Access easily fits in with City trademark programs like New Music, FashionTelevision, The Originals, and MediaTelevision, Switzer maintains. The spine of all City-originated programming is its treatment of the television medium, and that will hold true for Access programming.

‘We’ll be creating programs that were built for television and not applying television to something that was built for the classroom. It’s not an afterthought that you throw a television camera in the classroom. You can design some shows that are built as educational shows and television shows at the same time,’ says Switzer.

That approach will once again be used in a specialty service application for a Canadian learning channel when the crtc hears the second round of proposals in the new year. In February of this year, chum’s application for The Learning Channel was denied, but City expects to up the ante this time by having the Access base in Alberta to work from.

The same rules apply to Bravo!, the arts programming specialty service that will be launched by CHUM/City in January. The theory is that City’s style isn’t appropriate for quality arts programming, but wait and see, says Switzer. Bravo! is going to surprise a lot of people.

Both the short-term and long-term prospects for sales of City programs are incredible, Switzer says. Over 100 countries now see City’s signature programs on a weekly basis, and there is a push to sell to terrestrial and satellite broadcasters. Station startups are equally exciting, another dimension of what Switzer summarizes as a ‘very healthy business for us.’