|
|
|
Ottawa, 24 October 1986
|
|
Decision CRTC 86-1042
|
|
Pierre Tremblay, representing a company to be incorporated Chicoutimi, Quebec - 860598200
|
|
Les Immeubles Gilbert Pedneault Ltée Alma, Quebec - 860586700
|
|
CJMF-FM Ltée Chicoutimi, Quebec - 860585900
|
|
148690 Canada Inc. Chicoutimi, Quebec - 860591700
|
|
Benoit Levesque, representing a company to be incorporated Chicoutimi and Chambord, Quebec - 851090100 - 851186700
|
|
Les Entreprises de radiodiffusion de la Capitale Inc. la Capitale Inc. La Baie, Quebec - 860590900
|
|
Introduction
|
|
At a Public Hearing in Sainte-Foy, Quebec on 16 June 1986, the Commission examined the proposals presented by the six applicants noted above for a broadcasting licence for a new French-language FM radio station to serve the Saguenay/Lac Saint-Jean region. The Commission had issued a call for applications on 19 December 1985 (Public Notice CRTC 1985-276), after receiving an application to serve Chicoutimi, Chambord and surrounding areas.
|
|
All six applicants proposed to operate an FM station in the Group II music format, that is, music programming would consist mainly of material from subcategory 52 (Pop and RockHarder), and for a target audience in the 18-34 age group. As well, three of the applicants, Pierre Tremblay, 148690 Canada Inc., and Les Entreprises de Radiodiffusion de la Capitale Inc., proposed operating the station on the frequency 96.9 MHz, while the other two, Les Immeubles Gilbert Pedneault Ltée and CJMF-FM Ltée, proposed the frequency 93.7 MHz. The applications, therefore, were competing with respect to both the proposed market and the music format. Some were also technically mutually exclusive.
|
|
The Market
|
|
The Saguenay/Lac Saint-Jean market has a population of nearly 300,000, of which 200,000 live in the urban communities of Chicoutimi, Jonquière, Alma and La Baie. Approximately 40 % of this population is in the 15-34 age group.
|
|
At present, this market is served by five private AM stations, CJMT Chicoutimi, CFGT Alma, CHRL Roberval, CKRS Jonquière and CHVD Dolbeau, whose music formats range from MOR to Contemporary MOR, and one CBC station, CBJ Chicoutimi. There is only one private FM station, CJAB-FM Chicoutimi, which operates in the Group I music format, as well as a community station (CHOC-FM Jonquière) and the CBC stations CBJ-FM and CBJE-FM Chicoutimi, the latter broadcasting in the English language.
|
|
In its deliberations following the hearing, the Commission considered whether the Saguenay/Lac Saint-Jean market could support a new private FM station and whether the proposed service met a real need.
|
|
As a result of serious economic difficulties and other factors, the radio stations in the region experienced many set-backs in the early 80's which led to the temporary closure of several stations between 1981 and 1983. As well, CKPB La Baie shut down in 1983. The most recent figures indicate, however, that 1984 and 1985 were years of recovery for the stations experiencing difficulty in the market, a period which also coincided with changes in ownership. According to the 1985 financial statements, all the private stations were operating at a profit to varying degrees.
|
|
Furthermore, private radio in the Saguenay/Lac Saint-Jean region is largely confined to AM stations, and there is a significant lack of FM stations. The Commission has noted, in particular, the absence of a contemporary FM sound for a younger listening audience, as well as average daily radio ratings per capita in the Saguenay/Lac Saint-Jean region that were lower than the average Canadian and Quebec ratings between 1983 and 1985.
|
|
All the indicators studied by the Commission show that the regional radio stations currently garner a fair portion of the advertising revenue available for radio and that part of their present revenue could be affected by the entry of a new radio station into the market. The Commission, however, has taken into consideration the arguments presented by a majority of the applicants, who felt that this transfer of revenue would be limited, given that the 12-24 age group as a whole is not very well served by the existing radio stations in the Saguenay/Lac Saint-Jean region, and that a new Group II FM (Rock) station, as proposed by all the applicants, would target this audience, among others. The Commission also notes that the stations most likely to be affected are in the central ChicoutimiJonquière market, and are precisely those better able to meet increased competition.
|
|
The Decision
|
|
For the reasons given below, the Commission approves the application by Pierre Tremblay, representing a company to be incorporated, for a French-language FM radio station at Chicoutimi on the frequency 96.9 MHz (channel 245C), with an effective radiated power of 92,400 watts. The Commission will issue a licence expiring on 30 September 1990, subject to the conditions specified in this decision and in the licence to be issued.
|
|
The five competing applications noted above are denied.
|
|
The Commission, after a carefull consideration of all the applications submitted, has concluded that the proposal by Pierre Tremblay best combines a mix of positive characteristics, in particular, a limited impact on the market, broadcasting experience and familiarity with the community, sufficient financial resources, a firm commitment to the FM radio policy and objectives, a guarantee that commitments will be fulfilled, and solid proposals to support Canadian talent and the independent radio program production industry.
|
|
The Commission is of the opinion that the market can only barely support a new completely independent station. It notes, however, that the application by Pierre Tremblay proposes to operate the new station, in effect, on a joint basis with CJMT Chicoutimi, even though the licence to be issued is an independent FM licence, since certain shareholders of the company to be incorporated, who currently control CJMT, hold only 40% of the common voting shares in the new licensee company. Under the circumstances, the Commission regards the operation of a new station on a joint basis with an AM station that is already established in the Chicoutimi-Jonquière core market as being the solution that offers the best chance of success. Mindful of the cost of setting up a new FM service, the Commission considers that this would have the least economic impact on the existing AM and FM stations in the Saguenay/Lac Saint-Jean market.
|
|
The Commission notes that the company to be incorporated by Pierre Tremblay will be 60% owned by Télémédia Communications Inc., which is licensed to operate a number of AM and FM radio stations in Quebec and Ontario, and by five other regional shareholders, four of whom are also shareholders of Radio Chicoutimi Inc., licensee of CJMT. The licensee will therefore be able to take advantage of Télémédia's extensive broadcasting experience and considerable financial resources, and of the contribution of local interests that are fully aware of the community's needs and were able, after acquiring the station, to restore CJMT's stability quickly in 1984 and 1985 following a difficult period for the station.
|
|
The Commission also notes that Télémédia is the licensee of CITE-FM Montreal, CITF-FM Quebec City, CIMFFM Hull and CITE-FM-1 Sherbrooke, and by its past performance has demonstrated its concern for meeting, even exceeding, the minimum requirements of the FM policy and generally fulfilling its commitments.
|
|
The Commission notes in this regard that the commitments contained in Pierre Tremblay's application were among the highest with respect to levels of foreground format programming (20%) and combined foreground/ mosaic programming (50%). The applicant stated at the hearing that at least 50% of its foreground programming would be produced locally, and that it has received firm commitments from the art and media technology department of the Jonquière CEGEP, the Office de la langue française in Jonquière and the Société historique du Saguenay to provide foreground format programs or material.
|
|
The applicant also stated [TRANSLATION]: "We promise to allocate a minimum budgetary amount of $25,000 annually to independent production houses for enriched spoken word programs". The applicant indicated that the aim of this proposal was to further the establishment of a radio programming production industry based on the television industry model. One of the projects that would be put forward is the French-language adaptation of syndicated programs produced by the Télémédia subsidiary Telemedia Broadcasting System (TBS), which produces and distributes series, concerts and foreground format programs, via satellite, to a number of English-language stations in Canada. The applicant pointed out that the new station in Chicoutimi would not justify the costs of such a project in itself, and that the programs would be distributed in other French-speaking countries. An agreement in principle to this effect has already been concluded with a European broadcaster.
|
|
With respect to the promotion of French-language Canadian musical talent, the applicant made the following commitments [TRANSLATION]:
|
|
First, we will broadcast one one-hour program per week on contemporary French-language music exclusively;
|
|
Second, we will produce and broadcast commercial messages promoting new Quebec records on the new FM station, CJMT and the entire Télémédia AM network and FM group;
|
|
Third, we will contribute $5,000 per year to one or more regional organizations for the training of musicians or singers;
|
|
Fourth, we will make a financial contribution to MusicAction or another agency or vehicle with the same goals for a total of $80,000 in the five year licence term.
|
|
In addition, the applicant indicated that the new FM station's news and information service would be able to take advantage of the facilities of the Télémédia network and the newsroom of CJMT. One full-time and two supplementary employees would be hired for CJMT's newsroom, which currently employs three regular and two part-time journalists, in addition to one full-time and one part-time journalist assigned to sports. The applicant stated at the hearing that [TRANSLATION] "newscasts will be written specifically for the FM station" and will be broadcast seven days a week, twelve hours a day. In this respect, the Commission reminds the applicant of the importance of providing proper news and information services for the entire Saguenay/Lac Saint-Jean region, in view of the fact that the call for applications was for a regional service and the applicant's service area should cover the whole of this region.
|
The Commission notes that the applicant has proposed to broadcast 55% French-language vocal music. Taking into account the commitments concerning the promotion of Canadian talent noted above, the Commission approves this proposal, by condition of licence, for a period expiring 31 March 1989. As noted in Public Notice CRTC 1986-67 dated 19 March 1986 on "French-language Popular Music", the Commission expects to assess the availability of Frenchlanguage recordings after a trial period of two years, and reminds the licensee "that the 55% level is a minimum to be surpassed if possible and that 65% remains the objective." The Commission will monitor the licensee's efforts to use and promote Canadian talent in its programming.
|
|
With respect to the proposal to broadcast two hours of Traditional and Special Interest music (category 6) per week, the Commission notes that this broadcast period will be devoted to jazz music and, further to the statements made at the hearing, it encourages the applicant to increase its efforts in this regard.
|
|
The Commission has taken into consideration the numerous interventions concerning these applications, which stressed the real need for a Group II FM station in the market, the importance of the greatest possible participation by local and regional interests and the need for the new service to cover the entire Saguenay/Lac Saint-Jean region. The Commission will follow closely the licensee's efforts in this regard.
|
|
This authority will only be effective at such time as the Commission receives documentation establishing that the company has been incorporated in accordance with the application in all material respects.
|
|
It is a condition of licence that construction of the undertaking be completed and that it be in operation within twelve months of the date of this decision or such further period as the Commission may, upon receipt of a request for extension before the expiry of the said twelve months, deem appropriate under the circumstances.
|
|
Dissenting opinion by Commissioner Monique Coupal
|
|
I am opposed to the granting of a licence under the actual circumstances of the market as, in my opinion, there is no additional commercial revenue available and therefore the arrival of a new player will directly affect the profitability of the existing stations. According to the 1985 financial statements, the existing stations' margin of profit could disappear totally with increased competition.
|
|
Fernand Bélisle
Secretary General
|
|
|
|