With the CanWest bid denied, Craig began constructing the A-Channel stations. In Edmonton, A-Channel set up in the heritage-listed
Hudson's Bay building on
Jasper Avenue, where it added large windows to its streetside studio; historic preservation conditions complicated work, with new tiles having to be ordered from Quebec. It obtained rights to midweek telecasts of
Edmonton Oilers hockey. Most of the on-air talent hired for A-Channel Edmonton came from outside the market, except for
Bruce Buchanan, who handled Oilers play-by-play. The Calgary station at 7th Avenue and 5th Street SW, adjacent to the
LRT system, was the only major media outlet in the city to be built in the downtown area. As in Edmonton, much of the on-air talent came from elsewhere in Canada. In conjunction with winning the licence, Craig established the A-Channel Drama Fund (later the A-Channel Production Fund), which provided financing for made-in-Alberta television movies for air by A-Channel and other outlets. Among these was
Ebenezer, a 1998 adaptation of
A Christmas Carol starring
Jack Palance. The concept of funding independent producers and then obtaining rights to their films was inspired by the UK's
Channel 4.
Launch A-Channel launched in Edmonton on
CKEM-TV (channel 51, cable 7) on September 18, 1997, and in Calgary on
CKAL-TV (channel 5, cable 8) on September 20. The new stations were the first in their respective markets since Edmonton's CITV (1974) and Calgary's
CBRT (1975). Both stations relied on prime-time movies, a formula Craig had used with some success at MTN in Manitoba. For local programming, they offered a two-hour morning newscast,
The Big Breakfast; 6 and 10 p.m. newscasts; and the local programs
Live @ Five and
Wired, among others. The new stations had very rough debuts from a technical standpoint. The Calgary station launched four minutes late due to inaccurate clocks; the first 6 p.m. newscast on Monday, dubbed by station staff as "Black Monday", was riddled with errors, leaving anchorman Glen Carter on screen when news footage did not play out. In Edmonton, Jennifer Lyall, the co-host for the local
Wired entertainment magazine, quit after just one day on air after not being given time to rehearse. News footage showed on the wrong stories or froze, while sound failed to play out. At one news conference, a local politician saw an A-Channel cameraman enter the room and began mouthing his words without speaking, mimicking the frequently missing audio on the station's newscasts. Many of the issues came down to the tapeless playback and editing system, which had a tendency to delete segments and stories: over five days, the Calgary control room was rewired to bypass it in favor of older, but more reliable, video tape equipment. As part of building A-Channel, Craig agreed to provide some protection to rural broadcasters by delaying the launch of
rebroadcasters for one year, and in 1998, the Lethbridge transmitter (rebroadcasting Calgary) opened. The Edmonton station debuted on cable in Red Deer that year, with a rebroadcaster following the next year. Both stations made respectable debuts after quickly putting their issues behind them.
BBM figures for spring 1998 showed A-Channel Calgary in third place in prime time, though its dinner-hour news lagged the CBC. Likewise, A-Channel surpassed the CBC in prime time in Edmonton, but its local programs—outside of hockey—attracted few viewers. BBM found that
Live @ Five, the station's 5:00 news program, had just 600 viewers. Over the next two years, the stations became more competitive, with increasing ratings towards their local morning and evening programming. The A-Channel stations built identities as aggressive outlets appealing to a younger demographic in their local and syndicated programming, similar to Citytv in Toronto. The newscasts reflected this style, with anchors walking around the set and handheld camerawork. In an assessment of the Calgary station in 1999, Gary Davies noted, "It's very rare to attend a media event in this city and not see a representative from A-Channel." All stations had SUVs emblazoned with black-and-yellow paint schemes. A-Channel Calgary had a
Hummer as a newsgathering vehicle; when a major snowstorm paralyzed traffic in the city in March 1998, the station responded to a call for assistance by using the Hummer to deliver
Meals on Wheels to stranded Calgarians, even ferrying a snowed-in doctor to work. The Oilers departed A-Channel Edmonton after the 2000–2001 season and consolidated their television games with
Sportsnet West, adding 28 games to the latter's existing 20-game inventory. The team was believed to see increased revenue opportunity with a regional telecast. In 2001, A-Channel also moved its late news in Alberta from 10 to 11 p.m., putting it in head-to-head competition with the other Alberta stations and reducing overruns from its movies. ==Expansion beyond Alberta==