ARCHIVED -  Decision CRTC 99-172

Decision

Ottawa, 14 July 1999

Decision CRTC 99-172

Telemedia Radio Inc. (formerly Télémédia Communications Inc.)

Hamilton; and London, Ontario - 199812417 - 199812400 - 199812425 - 199812433

3 May 1999 Public Hearing
in Vancouver

Acquisition of assets

1.  The Commission approves the applications by Telemedia Radio Inc. (Telemedia) for authority to acquire the assets of CKOC and CKLH-FM Hamilton from Radiocorp Inc., as well as the assets of CJBK and CJBX-FM London from London Communications Ltd. and for broadcasting licences to continue the operation of these undertakings.

2.  The Commission will issue licences to Telemedia, expiring 31 August 2005, upon surrender of the current licences. The licences will be subject to the conditions specified in this decision and in the licences to be issued.

3.  Telemedia does not currently own a radio station in Hamilton. In the city of London, however, it owns commercial radio station CIQM-FM London. Through this transaction, Telemedia will own a total of two FM commercial radio stations and one commercial AM station in the London market.

4.  The Commission notes that Telemedia's applications to acquire the assets of CJBK and CJBX-FM fall within the scope of the policy on the common ownership of radio stations established in Public Notice CRTC 1998-41, Commercial Radio Policy 1998. According to this policy, in markets with less than eight commercial stations operating in a given language, a single licensee may be permitted to own or control as many as three stations operating in that language with a maximum of two stations in any one frequency band.

5.  In evaluating applications that would result in common ownership, the Commission requires applicants to address the issue of diversity of voices. Telemedia stated that it would ensure diversity by maintaining the current formats on all four stations: oldies on CKOC; adult contemporary on CKLH-FM (with a German-language SCMO service); news, talk, sports on CJBK; and country on CJBX-FM. The Commission is satisfied that, in this case, approval of these applications will not negatively affect the diversity of voices offered to the communities.

6.  Consistent with the requirements of the benefits test outlined in Public Notice CRTC 1998-41, the benefits offered represent the required minimum direct financial contribution to Canadian talent development of 6% of the transaction ($2,100,000). This includes:

·  3% to be allocated to the Canadian Music Marketing and Promotion Fund, which is to be created;

·  2% as a contribution to FACTOR; and

·  1% to either of the above initiatives, to other Canadian talent development initiatives or to other eligible third parties involved in the development of Canadian musical and artistic talent.

7.  The 3% contribution which is to be allocated to the Canadian Music Marketing and Promotion Fund must be directed to the Canadian Association of Broadcasters who will hold all contributions in trust pending the creation of this fund. These commitments are over and above the existing commitments and conditions of licence for each station.

Conditions of licence

CKOC

8.  By condition of licence, the licensee shall as, an exception to the percentage of Canadian musical selections set out in sections 2.2(8) and 2.2(9) of the Radio Regulations, 1986, in any broadcast week where at least 90% of musical selections from content category 2 that it broadcasts are selections released before 1 January 1981:

 in that broadcast week, devote 30% or more of its musical selections from content category 2 to Canadian selections broadcast in their entirety; and

 between 6 a.m. and 6 p.m., in the period beginning on Monday of that week and ending on Friday of the same broadcast week, devote 30% or more of its musical selections from content category 2 to Canadian selections broadcast in their entirety.

For purposes of this condition the terms "broadcast week", "content category" and "musical selection" shall have the meaning set out in section 1 of the Radio Regulations, 1986.

9.  This condition will allow CKOC to broadcast a minimum level of 30% of Canadian musical selections over the broadcast week and between 6 a.m. and 6 p.m. Monday to Friday.

CKLH-FM

10.  By condition of licence, the licensee is authorized to use a Subsidiary Communications Multiplex Operation (SCMO) channel to distribute ethnic programming in the German language.

CKLH-FM and CJBX-FM

11.  The licensee must, by condition of licence:

·  not operate the stations within the Specialty format as defined in Public Notice CRTC 1995-60 or as amended from time to time by the Commission;

·  broadcast, in any broadcast week, less than 50% hit material as defined in Public Notice CRTC 1997-42 dated 23 April 1997, as amended from time to time.

CKOC, CKLH-FM, CJBK and CJBX-FM

12. The licensee is required, by condition of licence:

·  to make payments to third parties involved in Canadian talent development at the level identified for it in the Canadian Association of Broadcasters' (CAB) Distribution Guidelines for Canadian Talent Development, as set out in Public Notice CRTC 1995-196 as amended from time to time and approved by the Commission, and to report the names of the third parties associated with Canadian talent development, together with the amounts paid to each, concurrently with its annual return. The payments required under this condition of licence are over and above any outstanding commitments to Canadian talent development offered as benefits in an application to acquire ownership or control of the undertaking;

·  to adhere to the guidelines on gender portrayal set out in the CAB's Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council;

·  to adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.

Other matters

13.  The Commission notes that this licensee is subject to the Employment Equity Act that came into effect on 24 October 1996 (1996 EEA), and therefore files reports concerning employment equity with Human Resources Development Canada. As a result of a consequential amendment to the Broadcasting Act, the Commission no longer has the authority to apply its employment equity policy to any undertaking that is subject to the 1996 EEA.

This decision is to be appended to each licence. It is available in alternative format upon request, and may also be viewed at the following Internet site:
www.crtc.gc.ca

Secretary General