ARCHIVED -  Decision CRTC 97-109

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Decision

Ottawa, 25 March 1997

Decision CRTC 97-109

Rogers Broadcasting Limited

Ottawa, Ontario - 952705200

Request to reduce the weekly level of Canadian content within category 2 music - Denied

Following Public Notice CRTC 1996-70 dated 22 May 1996, the Commission denies the application by Rogers Broadcasting Limited (Rogers) to amend the broadcasting licence for CKBY-FM Ottawa by reducing the weekly level of Canadian content within category 2 music from 35% to 30%.

Background

Since it was first licensed in 1972, CKBY-FM has been programmed as a country music station.

The Radio Regulations, 1986 (the regulations) require that radio licensees broadcast a minimum of 30% Canadian content in popular music (Category 2) each week. CKBY-FM has had a long-standing obligation to maintain, by condition of licence, a minimum level of 35% Canadian music content. The Commission denied two requests to reduce the level of Canadian music content required of CKBY-FM (Decisions CRTC 85-914 dated 26 September 1985 and CRTC 89-67 dated 7 March 1989).

Rogers acquired CKBY-FM in 1994 as part of the purchase of Maclean Hunter Limited (Decision CRTC 94-923 dated 19 December 1994). At that time, Rogers did not propose a reduction in CKBY-FM's required level of Canadian music content.

The application

In support of the current request, Rogers noted that the Commission's FM policy now allows stations to change formats within the broad Pop and Country categories, as they wish. Rogers argued that other stations operating in the Ottawa area could directly compete with CKBY-FM by broadcasting an increased amount of country music while respecting the regulatory requirement of 30% Canadian content weekly, whereas CKBY-FM would still be required to adhere to a 35% level of Canadian music content.

Interventions

The Canadian Independent Record Production Association, the Canadian Music Publishers Association and the Society of Composers, Authors and Music Publishers of Canada submitted interventions opposing Rogers' requested licence amendment. The interveners stated that, in 1972, when CKBY-FM was licensed with a 35% level of Canadian music content, there were fewer Canadian country music artists and outlets, and a smaller supply of country music, than now. Accordingly, the interveners argued, it should now be easier for CKBY-FM to broadcast a 35% level of Canadian country music, particularly in view of country music's growth in popularity. In addition,
the interveners pointed out that Rogers did not propose any decrease in the level of Canadian music content broadcast by CKBY-FM when it acquired the station in 1994.

In response to these interventions, Rogers stated that, because less than 10% of the records released by Canadian artists are country, it is required to air recordings that are already getting airplay on other stations. Rogers maintained its position that the requirement to broadcast a minimum level of Canadian music content puts CKBY-FM at a competitive disadvantage with other radio stations operating in the Ottawa market. Rogers further argued that CKBY-FM needs to have a "level playing field" with these other radio stations.

Jeanette Johnston also opposed Rogers' request on the grounds that reducing the level of CKBY-FM's minimum Canadian music content would have a negative impact on Canadian country artists. The Commission has noted Rogers' response to this intervention.

The Commission's findings

The Commission notes the applicant's argument concerning the "uneven playing field", but also considers that Rogers has failed to present sufficient evidence to support its argument that the current requirement that CKBY-FM maintain a 35% level of Canadian music content has had a detrimental effect on the station. In this context, the Commission notes that the Fall 1996 Bureau of Broadcast Measurement's survey placed CKBY-FM as the number one radio station in the Ottawa market.

The Commission agrees with the interveners that country music has increased in popularity since CKBY-FM was orginally licensed. Moreover, the Commission notes that there is now a larger "pop" influence in country music and that the recordings of artists who "crossover" between pop and country music are now more numerous than ever. Accordingly, the Commission considers that maintaining a minimum level of 35% Canadian music content is more easily attainable for CKBY-FM than it was in the 1980s when the Commission denied similar requests to reduce this requirement.

In view of the foregoing, the Commission considers that relief from CKBY-FM's current minimum Canadian music content requirement is not warranted in this case. Accordingly, the Commission denies the amendment.

Allan J. Darling
Secretary General

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