|
Decision
|
|
Ottawa, 23 April 1987
|
|
Decision CRTC 87-308
|
|
Roger R. Charest, representing a company to be incorporated Victoria, British Columbia - 861742500
|
|
C-FAX Radio 1070 Limited Victoria, British Columbia - 861659100Selkirk Broadcasting Limited Victoria, British Columbia - 861703700
|
|
At a Public Hearing in Victoria on 10 February 1987, the Commission considered three competing applications for a broadcasting licence for an English-language FM radio station to serve Victoria.
|
On 20 March 1986, following a Public Hearing held in Vancouver in December 1985, the Commission had denied three competing applications, two by applicants noted above, C-FAX Radio 1070 Limited (C-FAX Radio) and Selkirk Broadcasting Limited (Selkirk), and a third by Charles G. Camroux, on behalf of Victoria Broadcasting Limited, a company to be incorporated (Camroux) (Decision CRTC 86-244).
|
|
Despite the denials, the 1985 hearing process served to confirm that a new FM station operating in the Group II (Pop and Rock-Harder) format was required to attract and repatriate the high percentage of Victoria listeners tuned to out-of-market stations. In their respective 1985 applications, C-FAX Radio had proposed the Group I format, Selkirk Group III and Camroux a Group II station.
|
In Decision CRTC 86-244, the Commission outlined certain minimum criteria to be met before it would license any new FM radio service in Victoria and noted that although none of the 1985 candidates adequately met its criteria, it was convinced that there was a demand and need for a new FM station in Victoria and would be issuing another call for applications.
|
|
In Public Notice CRTC 1986-104 dated 7 May 1986, the Commission invited new applications to serve this market and reiterated the criteria to be met by any successful applicant. These included a full awareness of the particular programming niche to be filled, a thorough knowledge of and commitment to the FM policy and its objectives, particularly with regard to diversity of programming, and an awareness of the specific characteristics of the Victoria market, including its historical rate of growth, the rather slow growth in the advertising revenues of existing stations and the significant audience share garnered by out-of-market stations. Applicants were also expected to present programming proposals that would provide a clear alternative to existing Victoria stations, in order to effectively repatriate listeners tuned to out-of-market stations with the least impact on the audience and revenue base of existing stations; furthermore, they were required to demonstrate their financial capability and the viability of the proposed new station.
|
|
In response to this call, the Commission received new applications from C-FAX Radio and Selkirk, as well as an application from Roger R. Charest, one of the principals in the previous Camroux application, representing a company to be incorporated (Charest). Both C-FAX Radio and Selkirk are licensees of AM radio stations in Victoria and have applied for a joint FM licence while Charest is seeking an independent FM licence. In the Commission's view the proposals presented for its consideration at the 1987 Public Hearing were much improved over the previous submissions.
|
|
In its deliberations, the Commission compared the current state of the Victoria market with the circumstances prevalent at the time of its previous examination. It found that the level of out-of-market tuning by Victoria audiences remains high (45%) and that there is a trend to increased FM listening. It found, further, that 1986 retail sales and radio revenues have improved over 1985 levels and the overall financial performance of existing licensees is generally stronger than it was.
|
|
In terms of diversity of service, the Commission notes that Victoria has only one FM station, CFMS-FM, which is operated in the Group I (Easy Listening) format. The top two stations in this market in terms of audience share, CFMS-FM and CFAX Victoria, principally attract an audience over 60 years of age. While listeners between the ages of 12 and 25 represent 19% of the population, they account for only 9% of the audience tuned to local stations, indicating a clear potential in the market for a new FM radio service targeted to younger listeners. The Commission notes with satisfaction that in proposing programming in the Group II music format, all three applicants responded to this potential and recognized the need for greater diversity in local radio broadcasting services.
|
|
Based on all the information available, it is the Commission's view that Victoria, which has not had a new private radio station since 1959, can support the introduction of one new FM service at this time, without an undue effect on the financial well-being or audience share of existing stations. The Commission considers that a dynamic station operated in the Group II format should be able to repatriate listeners and, with an aggressive marketing approach, should stimulate revenues from advertisers who have had little opportunity to reach younger listeners by means of a local FM service.
|
|
The Commission notes that the applicants' revenue projections were quite similar and appear to be achievable based on all the market information available. In addition, the Commission is satisfied that each application was supported by sound market research.
|
|
The Commission further acknowledges the several interventions filed in support of each application.
|
|
Decision
|
|
Based on its examination of the factors involved, the Commission has decided that the application by Charest best meets the criteria noted earlier in this decision. Accordingly, the Commission approves the application by Roger R. Charest, representing a company to be incorporated for a licence to carry on an English-language FM radio broadcasting undertaking at Victoria on the frequency 100.3 MHz (channel 262C), with an effective radiated power of 84,000 watts.
|
|
The Commission will issue an independent FM licence expiring 31 August 1990, to the company to be incorporated, subject to the conditions specified in this decision and in the licence to be issued. This term will enable the Commission to consider the renewal of this licence at the same time as that of other radio stations in the region.
|
|
This authority will only be effective and the licence will only be issued at such time as the Commission receives documentation establishing that the company has been incorporated in accordance with the application in all material respects.
|
|
The competing applications by C-FAX Radio and Selkirk are, accordingly, denied.
|
|
In selecting Charest, the Commission has determined that the introduction of a new broadcaster to Victoria will have a stimulating effect on the market as a whole, while the addition of a Group II independent FM licensee to the mix of Victoria radio services will be least disruptive for the audience and revenue bases of existing stations.
|
|
The Commission has been persuaded by Charest's energy, enthusiasm and articulate plans; the significant financial commitment, particularly for an independent licensee, of a minimum of $285,000 over the first five years in support of Canadian talent development and the various programming commitments contained in the Promise of Performance which, taken together, better respond to the objectives of the FM policy than those of the competing applicants. The Commission notes that the proposed Canadian talent budget excludes free promotional air-time.
|
|
Charest's proposals for attracting and serving listeners between 15 and 30 years of age include news and information programming tailored to the interests of this target audience, particularly in terms of news style and presentation. Its plans for foreground programming include news magazine, sports magazine and comedy presentations, offering more diversity in terms of the foreground format than the predominantly music-based proposals of C-FAX Radio and Selkirk.
|
|
The Commission notes that the applicant's commitments to foreground (14%) and combined foreground/mosaic programming (35%) exceed the Commission's minimum requirements for independent licensees.
|
|
With respect to the $285,000 Canadian talent commitment over the first five years of operation, Charest's projections provided for direct expenditures of $75,000 in the first year and $52,500 annually thereafter. The applicant has indicated that it will provide grants to the Victoria Jazz Society, payments to non-staff writers, producers and performers, and an annual contribution of $5,000 to FACTOR/CTL. Other initiatives include the live or tape-delayed broadcast of the Yuk Yuk's comedy presentation, as well as concerts from the annual B.C. Rock and Victoria Jazz Festivals.
|
|
Consistent with the licensee's budgetary commitment for Canadian talent and in view of the three-year term of licence authorized herein, the Commission requires, as a condition of licence, that Charest spend a minimum of $180,000 in direct expenditures for the development of Canadian talent over the term of this licence. At the time of licence renewal, the Commission will review the implementation of this commitment with the licensee, as well as its proposed Canadian talent commitments beyond the term of licence.
|
|
The Commission notes that Charest's commitment to three hours per week of traditional and special interest music was higher than the C-FAX Radio and Selkirk proposals. This music will be drawn primarily from the jazz subcategory and broadcast in the context of two Sunday presentations, "Jazz Brunch" and "The Jazz Show". A representative of The Victoria Jazz Society intervened at the hearing to support this commitment and the jazzrelated Canadian talent initiatives noted above.
|
|
In view of all of the foregoing, the Commission is confident that Charest will offer a viable and attractive new service to younger Victoria listeners who are limited in their choice of local radio services.
|
|
With respect to its proposal to use the new station's SCMO capacity, Charest indicated at the hearing that it would identify the areas of greatest interest, need and potential commitment to ethnic programming and would analyse the various programming options available for this purpose. In the absence of fully developed programming plans, the use of the SCMO facility is denied at this time. The Commission would be prepared in future, however, to consider an application for the use of this facility once its proposal has been finalized.
|
|
Moreover, in accordance with paragraph 22(1)(b) of the Broadcasting Act, the Commission will only issue the licence to the applicant if it is in receipt of written notification from the Department of Communications, within three months of the date of this decision, that it will issue a Technical Construction and Operating Certificate. No licence will be issued if the Commission does not receive this notification within said period, or such further period as the Commission may, upon receipt of a request for extension before the expiry of the said three months, deem appropriate under the circumstances.
|
|
It is a condition of this licence that construction of the undertaking be completed and that it be in operation within twelve months of the date of receipt of written notification from the Department of Communications that it will issue a Technical Construction and Operating Certificate 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.
|
|
It is further a condition of licence that Charest adhere to the CAB self-regulatory guidelines on sex-role stereotyping, as amended from time to time and accepted by the Commission.
|
|
The Commission has taken note of the interventions from the CBC, the West Coast Media Society and CKAY Radio Inc. regarding the frequency and antenna site proposed by each of the three applicants for a new station.
|
|
The CBC specifically requested that the Commission retain one commercial Class C channel for possible future use by the CBC. The Commission notes that, with the approval of Charest's proposal to use channel 262C, channel 221C remains available.
|
|
With respect to the intervention by CKAY Radio Inc., the Commission is satisfied that the Saltspring Island antenna site is consistent with the efficient use of this frequency.
|
|
Fernand Bélisle
Secretary General
|
|
|