|
Decision
|
|
Ottawa, 16 August 1984
|
|
Decision CRTC 84-653
|
|
Radio CHOQ Inc.
|
|
Lévis, Quebec - 832317200Groupe Audette-Sirois Quebec City, Quebec - 840967400
|
|
Malcolm G. Scott
Quebec City, Quebec - 840968200
|
|
CJMF-FM Ltée
Quebec City, Quebec - 840886600
|
|
Radio MF C.I.E.L. (1981) Inc.
Quebec City, Quebec - 840966600
|
|
Mutual Broadcasting Canada Limited
Quebec City, Quebec - 841036700
|
|
Télé-Capitale Ltée
Quebec City, Quebec - 840961700
|
On 29 February 1984, the Commission issued a call for applications (Public Notice CRTC 1984-45) for an FM radio station in the Quebec City area. The call was issued at the same time as Decision CRTC 84-209, which denied the application for renewal of the broadcasting licence of CJMF-FM Quebec City, which expired on 31 March 1984. The decision not to renew was based on the serious level of non-compliance by the licensee with its conditions of licence. Such non-compliance had progressively increased during the last three years, particularly in the area of music.
|
|
Various analyses of this station's programming, carried out between 1980 and 1983, had revealed increasing discrepancies between the commitments contained in the Promise of Performance and the actual performance of CJMF-FM, which was broadcasting in a progressive rock format rather than the authorized MOR (middle-of-the-road) musical format. Complaints to that effect had also been received from radio broadcasters in the Quebec City region. At the 11 January 1984 hearing on CJMF-FM's application for licence renewal, the licensee had outlined, as the main factors for its non-compliance, the financial difficulties that compliance with the Promise of Performance would have created; the absence of effective internal means of control; the unavailability of the principal shareholder and some of the other partners together with insufficient staff; and the beginning of operations in 1982 of two new FM stations in Quebec City, CITF-FM and CHIK-FM, providing MOR and easy listening musical formats respectively.
|
|
Seven applications were received in response to the 29 February 1984 call. Five applicants requested a new licence, including CJMF-FM Ltée under a new ownership structure. Two applicants, CHIK-FM and CHOI-FM Quebec City, proposed amendments to their Promises of Performance. At the Public Hearing in Quebec City beginning 4 July 1984, the Commission considered these applications on a competitive basis in the context of the overall radio market in Quebec City and of the FM policies and regulations currently in effect.
|
|
The Quebec City radio market is currently served by 11 local stations - 5 AM and 5 FM French-language stations, and one English-language FM station. Of the three commercial FM stations, two have been in operation for only two years and are still being established.
|
|
These FM stations offer Quebec City listeners a broad range of musical formats, from classical to easy listening, to contemporary MOR. However, an obvious gap exists; no FM station is currently authorized to broadcast in a progressive format, even though the 35-and-under demographic segment accounts for approximately half of the population of this market. The applications noted above confirm this situation, since most of them propose a rock or rock-oriented format. Public reaction indicated this need strongly, particularly among young people who demonstrated their massive support through the intervention submitted at the hearing by the Comité Survie FM 93, which claimed to represent more than 185,000 persons who had signed a petition supporting the establishment of a rock station in Quebec City.
|
|
An analysis of the market conducted by the applicants, which was not questioned by other existing broadcasters, tends to demonstrate that there is a demand in the Quebec City radio market for a rock-oriented FM station. Mindful, however, of the particularly difficult situation of a number of AM and FM licensees in this market, the Commission has decided to grant only one licence at this time in order to allow existing stations to consolidate their operations and the market to stabilize itself. In this regard, the Commission notes that, of the five applicants competing for a progressive format, three were of the opinion that only one licence of this type should be granted now. The Commission proposes, however, to continue to assess the status of the radio market in Quebec City, so that it can determine if other radio programming needs can be accommodated or if that market can support one or more additional stations.
|
|
Based on a detailed analysis of each of the applications and the evidence presented at the hearing, the Commission considers that, in terms of the cohesiveness of the Promise of Performance, its realistic content, the well-balanced proposals for a progressive rock station, the experience and local involvement of the shareholders, the professional expertise of the new members of the team and their contribution to Quebec City's social and cultural milieu, as well as the financial resources available, the application by CJMF-FM Ltée represents the best proposal and offers the best assurances for the success of a progressive format radio station in Quebec City. The Commission has also taken into consideration the applicant's commitments particularly with respect to Foreground programming (14.5%), Canadian content (35%) and news (approximately 4 hours and 30 minutes per week).
|
|
Accordingly, the Commission approves the application by CJMF-FM Ltée for a broadcasting licence for a French-language FM radio station at Quebec City on the frequency 93.3 MHz, channel 227, with an effective radiated power of 48,000 watts.
|
The Commission will issue a licence expiring 30 September 1985, subject to the conditions of licence specified in the licence to be issued. The Commission will consider the renewal of this licence at the same time as that of the other FM stations in the area, in the context of its recently-proposed changes to the FM policy and the FM radio Regulations (Public Notice CRTC 1984-151).
|
|
In view of the above, the Commission denies the applications by Radio CHOQ Inc., the Groupe Audette-Sirois, Malcolm G. Scott and Radio MF C.I.E.L. (1981) Inc. Moreover, taking into account the diversity which the licensing of a new progressive FM station will bring to the Quebec City market, the Commission considers that the amendments to the Promises of Performance proposed by Mutual Broadcasting Canada Limited and Télé-Capitale Ltée are not justified at this time. Accordingly, these applications are also denied.
|
|
Describing CJMF-FM's (the applicant) new proposed ownership structure at the hearing, the applicant said that it had taken [TRANSLATION] "very serious steps to eliminate any possibility of repeating past errors with respect to fulfilling our commitments to the Commission".
|
|
Further, during the hearing, the applicant, emphasizing the professional integrity of the shareholders, made a firm undertaking to adhere fully to its commitment stating that it had established appropriate [TRANSLATION] "control and self-evaluation systems which will enable us to ensure that our objectives are achieved and our commitments fulfilled". The Commission considers that the new ownership structure, which will be established as soon as the licence is granted, and tighter control over the management of the daily operations of the station, address in a satisfactory manner the concerns that had been expressed over the station's previous management.
|
|
Consequently, under the new shareholders' agreement which underlines a collegial approach to decision-making, no shareholder holds a majority role, and control of the licensee company cannot become the exclusive prerogative of any one shareholder. Pursuant to this agreement, any major change proposed will have to be approved by 60% of the voting shareholders, which includes at least four of the seven shareholders.
|
|
The general direction of the company will be determined by the board of directors. The mandate of the board will also include responsibility for monitoring the station's performance and making any necessary decisions to ensure that the company's objectives are met and its commitments fulfilled. A management committee headed by the chairman of the board of directors will be responsible for the day-to-day implementation of decisions, and it will meet weekly, at which time the directors of the station's various departments will report on how they have fulfilled their responsibilities.
|
|
In light of the foregoing, the applicant is required to submit to the Commission, within three months of this decision, a progress report on the mechanisms it has established for the day-to-day management of the station.
|
|
The Commission further considers that the experience of the new shareholders, who are highly involved in community activities and in various fields of endeavour including radio, cinema and a number of community organizations, coupled with CJMF-FM's current team, will provide a more balanced and responsible approach to the operation of this station. Based on sound financial resources, the applicant estimates that it will break even during its first year of operation. These projections are based on its market experience and BBM data that, according to it, estimated the station's listenership at "268,000 a year ago".
|
|
At the next renewal of CJMF-FM's licence in 1985, the Commission intends to review with the licensee, whether this new operational structure is actually achieving its objectives. The licensee's success in setting up effective control mechanisms will be a determining factor in the renewal of this licence.
|
|
CJMF-FM Ltée has proposed a progressive format station which, it stated, will provide a musical environment oriented to young adults. It will have a dynamic, but not aggressive, sound with a very high rock or rock-oriented content, and the number of musical selections qualifying as "hits" will not exceed 40%. 14.5% of all programming will be presented in the foreground format, which exceeds regulatory requirements. Foreground will consist of original programs produced entirely in Quebec City by the station and a team will be assigned to this task on a full-time basis.
|
|
The Commission notes that CJMF-FM proposes 60% French-language vocal music, which is below the 65% level generally required of French-language FM licensees. Mindful of the high level of rock-oriented music proposed by the licensee, and the limited production of French-language records of this nature, the Commission authorizes a level of French-language vocal music of 60%.
|
|
Furthermore in this regard, the Commission notes that the applicant has proposed an annual budget for the promotion of Canadian talent of $36,000, which will include the broadcasting of six live shows per year, under the "Studio Rock" project; a competition which gives recording opportunities to twelve artists each year and provides promotional advertising on television to any Canadian artist whose work is broadcast by the station. CJMF-FM is expected to submit a report on the implementation of this commitment when it submits its application for the renewal of its licence.
|
The Commission authorizes the applicant to use the Subsidiary Communications Multiplex Operation (SCMO) for rebroadcasting telemetric data. The Commission has noted its intention to experiment in this area, and expects CJMF-FM to adhere to the applicable guidelines specified in Public Notice CRTC 1984-117 dated 17 May 1984 entitled "Services using the Vertical Blanking Interval (Television) or Subsidiary Communications Multiplex Operations (FM)".
|
|
The Commission acknowledges the interventions submitted at the hearing by the Comité Survie FM-93 and by Messrs. Clermont Giroux, Jean Beaudry and Roger Labadie and has also taken into consideration the numerous written interventions that were submitted in connection with the above-mentioned applications.
|
|
The Commission has further noted the applicant's intention to go on air within days following a favourable decision.
|
|
Fernand Bélisle Secretary General
|
|
|