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ARCHIVED - Broadcasting Decision CRTC 2010-99

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  Route reference : 2009-339
  Ottawa, 19 February 2010
  Newcap Inc.
Calgary, Alberta
  Application 2009-0617-5, received 20 April 2009
 

CFUL-FM Calgary – Licence amendment

  The Commission approves an application to amend CFUL-FM Calgary's condition of licence that sets out its required expenditures on Canadian content development (CCD). The amended condition of licence changes the amounts spent on various initiatives during individual broadcasts years while maintaining a total financial commitment to CCD of $7 million, as stipulated in Broadcasting Decision 2006-323.
 

The application

1.

The Commission received an application by Newcap Inc. (Newcap) to amend the broadcasting licence for the radio programming undertaking CFUL-FM Calgary in order to amend its condition of licence that sets out its required expenditures on Canadian content development (CCD).

2.

CFUL-FM's current condition of licence is set out in Broadcasting Decision 2006-323 and reads as follows:

3. Upon commencement of operations, the licensee shall contribute an annual minimum of $1 million to the development and promotion of Canadian talent, allocated as follows:

  • $510,000 to its "Making of a Band" program, to provide sustained support for three local artists or bands, including playlist rotation for two singles from the winning band's CD on all format-compatible Newcap stations in Canada.
  • $450,000 to the Radio Starmaker Fund.
  • $40,000 to support a summer music skills clinic.

3.

Newcap indicated that it had been unable to expend the required amounts on the "Making of a Band" program in the initial years of operation due to timing constraints. It therefore proposed to adjust the amounts expended on each of the three initiatives set out above in order to make up for the shortfall while still ensuing a total expenditure of $7 million on CCD, as set out in Broadcasting Decision 2006-323. In addition, the total amounts spent on each of the three initiatives would be maintained. Specifically, Newcap proposed that its condition of licence be amended to set out the following expenditures:
 
  • Making of a Band: $8,333 in 2007, $173,761 in 2008, $555,953 in 2009, $610,000 in 2010 through 2013 and $391,953 in 2014
 
  • Radio Starmaker Fund: $450,000 in 2007 and 2008, $850,000 in 2009, and $350,000 in 2010 through 2013
 
  • Summer Music Skills Clinic: $40,000 in 2008, $80,000 in 2009 and $40,000 in 2010 through 2013
4. The Commission did not receive any interventions in connection with this application.

Commission's analysis and determinations

5. The Commission notes that the licence for CFUL-FM was granted after a competitive process and that the applicant's CCD proposal was a key factor in the Commission's decision to award a licence to Newcap.
6. CFUL-FM launched on 12 March 2007, part way through the 2007 broadcast year, which began on 1 September 2006 and ended on 31 August 2007. As explained in Broadcasting Information Bulletin 2009-251, the Commission generally requires a licensee, in its first year of operation, to make pro-rated payments related to CCD commitments set out in conditions of licence in amounts representing the number of months the station was in operation during that broadcast year. For instance, if a station launches on 1 March, its minimum contribution would represent half of its total annual CCD commitment, since, by the end of its first broadcast year, it would have been on the air for six months, or for half of the broadcast year. Given that CFUL-FM was operation for 5.5 months of the 2007 broadcast year, each initiative should have received a pro-rated payment representing 5.5 months of operation.
7. However, in 2007 Newcap did not contribute any funds to the "Summer Music Skills Clinic" – a shortfall of $18,333 based on the pro-rated expenditure requirement. Further, the licensee contributed only $8,333 to the "Making of a band" project – a shortfall of $225,417.
8. In 2008, the licensee contributed $173,761 to the "Making of a band" project – a shortfall of $336,239 based on the commitment of $510,000 set out in its condition of licence. Accordingly, the Commission notes that, in 2007 and 2008, the licensee's combined shortfall in relation to its condition of licence totalled $579,989. The Commission intends to explore this apparent non-compliance with the licensee at the time that it considers the licence renewal for CFUL-FM.
9. The Commission notes, however, that the licensee itself brought this matter to the Commission's attention. It further notes that, under its proposal, Newcap will spend $7 million dollars overall as well as the total amounts originally earmarked for each of the three projects. Although, the licensee will contribute $350,000 to the Radio Starmaker Fund rather than the originally projected $450,000 in 2010 through 2013, these lower amounts are offset by a $850,000 payment to Radio Starmaker in 2009. The Commission also notes that no one associated with any of the initiatives submitted an intervention opposing the application. It is accordingly of the view that the licensee's proposal allows it to address the shortfall with respect to its condition of licence regarding CCD at an early date.
10. The Commission therefore approves the application by Newcap Inc. to amend the broadcasting licence for the radio programming undertaking CFUL-FM Calgary, in order to amend its condition of licence that sets its required expenditures on Canadian content development. Condition of licence number 3, as set out in Broadcasting Decision 2006-323 is therefore replaced with the following:
 

3. In support of Canadian content development, the licensee shall contribute the amounts set out below to the "Making of a Band" project, the Radio Starmaker Fund, and the "Summer Music Skills" project, as described in Broadcasting Decision 2006-323:

 
  • Making of a Band: $8,333 in 2007, $173,761 in 2008, $555,953 in 2009, $610,000 in 2010 through 2013 and $391,953 in 2014;
 
  • Radio Starmaker Fund: $450,000 in 2007 and 2008, $850,000 in 2009, and $350,000 in 2010 through 2013; and
 
  • Summer Music Skills Clinic: $40,000 in 2008, $80,000 in 2009 and $40,000 in 2010 through 2013.
 

The amount that the licensee is required to contribute to Canadian content development under section 3(15) of the Radio Regulations, 1986 is reduced by the amount that the licensee is required to contribute under this condition of licence.

11. The Commission notes that the licensee also proposed to contribute $391,953 to the Making of a Band Initiative in the 2014 broadcast year. Given that the current licence term for CFUL-FM expires on 31 August 2013, the Commission intends to deal with any remaining CCD payments at the time of the station's licence renewal.
  Secretary General
  Related documents
 
  • Clarifications regarding Canadian content development contributions made by commercial radio stations, Broadcasting Information Bulletin CRTC 2009-251, 5 May 2009
 
  • New Album Alternative FM radio station in Calgary, Broadcasting Decision CRTC 2006-323, 2 August 2006
  Secretary General
  This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined in PDF format or in HTML at the following Internet site: http://www.crtc.gc.ca.

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