TORONTO – MTV is coming back to Canada.
CTV Inc. and MTV Networks today announced a new strategic alliance to build and grow the MTV brand in Canada said an announcement by Ivan Fecan, president and CEO of Bell Globemedia and CEO of CTV with Bill Roedy, vice-chairman, MTV Networks and president, MTV Networks International.
The main portion of the deal will see CTV’s talktv, an analog specialty service currently available in 4.4 million Canadian households which has struggled to find a broad base of loyal viewers since its launch in 1999, will be re-born as a Canadian programmed and managed MTV channel, filled with dynamic, interactive, lifestyle, talk and documentary programming.
As well, MTV programming will continue to air across Canada inside a newly created MTV branded block of programming on CTV. The broadcaster has already been airing MTV programming like The Osbournes, Newlyweds and Pimp My Ride for a few seasons now, to ratings success.
This new deal also means that CHUM Limited’s long-standing deal with MTV to show its programming in Canada on Citytv and MuchMusic and other channels is over.
MTV had a toehold in Canada recently when Craig Media introduced digi-nets MTV Canada and MTV2 in licensing arrangements with the Viacom-owned company. However, when CHUM Ltd. purchased Craig last year, Viacom terminated those agreements and this year CHUM re-branded the channels Razor and PunchMuch. (An earlier version of this story had it the other way around, which was not the case says a CHUM spokesperson. www.cartt.ca regrets the error.)
CHUM had to pay MTV $10 million due to an out clause in the Craig-MTV contract, even though Viacom initiated the move. Sources told www.cartt.ca that MTV was not too pleased with the developments, telling CHUM this year it wanted back into Canada somehow.
CHUM responded to today’s announcement in a release of its own from CEO Jay Switzer. "CHUM has been expecting and planning for the re-launch of the MTV brand in Canada for some time,” he said. “MuchMusic continues to enjoy a long and deep 21-year relationship with Canadians from coast to coast, with over 7 million cable and satellite subscribers, as well as an established variety of new media platforms, including online, mobile, wireless, VOD, live events and other interactive platforms.
“Over the years, CTV’s channels have greatly benefited from CRTC support and genre protection,” he added (Ed note: As have CHUM channels). “We’ll be intrigued to see how Talktv can be morphed into an MTV brand and still remain a talk channel as licensed. We will be actively encouraging the CRTC to enforce both the spirit and letter of all Talktv’s conditions of license. Based on the totality of today’s announcement, we will soon be seeking appropriate and necessary regulatory flexibility for MuchMusic to competitively respond."
When Craig Media launched MTV Canada and MTV2 in 2001, CHUM watched those channels very closely, and quickly complained to the CRTC that they infringed on CHUM’s genre-protected MuchMusic. The complaint led the Commission to tell Craig to alter its programming because it was indeed violating its license.
Expect CHUM to be even more vigilant in this case.
As for CTV, it said of the talktv transition: “The channel will continue to be fully compliant with its license condition of 68% Canadian programming (71% in prime time), representing one of the highest Canadian-content requirements of any Canadian service.”
Ostensibly, it will not then compete with Much. And, looking at MTV in the U.S. recently, a lot of its programming has moved to a talk format and away from music videos.
CTV also confirmed today it has filed an application with the CRTC for what sounds like an MTV2 – “a new category two digital television service — Canada’s next music television station,” says the release. “This new digital television service, along with the new MTV analog channel, will provide alternate high quality entertainment options to all Canadians, and represent a great boost to local production and culture,” says the release.
Expect CHUM to oppose this one.
The markets didn’t seem to register any impact on the deal because the lightly-traded CHUM B shares closed at $34 today – same as yesterday.
Back to the CTV/MTV deal. Their plans are:
* Switching little-watched (but with 4.4 million subs) talktv to an MTV branded analog channel.
* A commitment between CTV and MTV to create original Canadian programming, destined for airplay in Canada across numerous CTV platforms — and on MTV channels around the world
* Exclusive access for CTV to the MTV brand and library of programming for use in Canada across CTV’s conventional, and specialty services
* Exclusive access for CTV to MTV’s array of digital media assets in Canada, including online, wireless, interactive and video on demand, as well as development of new digital media content for Canadians.
“Today’s announcement means that Canadians can access the true MTV experience in 360 degrees; with customized content not just across digital, specialty and conventional television platforms, but for the first time across a comprehensive assortment of interactive assets as outlined above. The MTV brand is not only back in Canada, but it has returned in a broader, deeper way than ever before,” says the release.
"Today’s announcement underscores CTV’s strategic commitment to finding new opportunities for growth and success," said Fecan. "Around the world, MTV is a brand that extends beyond television and we’re thrilled with the opportunity to work with our new partner and worldwide innovators at MTV to build a successful business that delivers fresh, honest and relevant content to Canadians."
"Canada is a very important market to MTV. As a source of dynamic debate, diversity and culture, MTV in Canada will reflect a uniquely Canadian perspective to enrich our global operation," said Roedy. "This is a tremendous milestone in our global expansion, and its terrific to be partnering with CTV – their passion, expertise, and credibility are inspiring. We are going to do great things together." 
Returning to Toronto to oversee the MTV business is Canadian Brad Schwartz (right), today named general manager and senior vice-president. In his previous position, Schwartz was director, international marketing partnerships for MTV Networks International, based in New York, and responsible for worldwide marketing and sponsorship initiatives.
"Our focus is to build a clearly Canadian interpretation of the MTV brand – one that will engage and excite all Canadians," said Schwartz. "With the array of resources and expertise available from both the CTV and MTV families, we’re going to rapidly establish our presence in Canada, and become a vital and valued member of Canada’s creative and production communities."
"Canadians have come to know MTV as both a leading lifestyle and entertainment brand," added Susanne Boyce, CTV president of programming and chair of the CTV Media Group, "The MTV philosophy has won the following of millions around the world for its leadership and vision in current affairs, offering an alternative voice and engaging viewers that the traditional mainstream media just don’t reach. It’s no secret that millions of Canadians – especially young Canadians – are yearning for new ways to become involved in issues that are important to them. They’re ready to be challenged by the bold, unorthodox approach that MTV has pioneered.
"MTV’s commitment to bold, innovative and entertaining programming reflects CTV’s philosophy toward building successful schedules," she added. "With nation-builders like Live 8, The Juno Awards and Canadian Idol, and star vehicles like eTalk Daily to showcase them, CTV has demonstrated its commitment to developing Canadian stars. A partnership with MTV is an exciting and ideal extension of our overall program strategy."
Comprehensive details relating to launch dates, content, co-production plans and branding, including details outlining the digital strategy, will be revealed in the weeks to come.
