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Decision
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Ottawa, 21 December 1984
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Decision CRTC 84-1049
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CHUM Limited
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Middleton, Nova Scotia - 833204100
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Following a Public Hearing in Halifax on 30 October 1984, the Commission denies the application by CHUM Limited for a licence to carry on an English-language FM radio broadcasting transmitting undertaking at Middleton. The applicant proposed to operate on the frequency 94.9 MHz with an effective radiated power of 50,000 watts. The proposed undertaking was to be a rebroadcaster of CIOO-FM, CHUM Limited's FM station in Halifax which provides a 24 hour-a-day contemporary music format service aimed at a young adult audience, particularly those between the ages of 20 and 40. The applicant did not propose to offer any local community-oriented programming.
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CHUM Limited is one of the country's largest broadcasters with extensive radio and television holdings particularly in the Ontario and Atlantic regions. The stated purpose of the application was to extend CIOO-FM service to Kentville, Middleton, and to other communities in the Annapolis Valley in response to the demand expressed by many area residents for this type of contemporary music radio service.
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The Annapolis Valley is currently served by AM radio station CKEN Kentville and its sister stations CKAD Middleton, CFAB Windsor and CKDY Digby, all of which are licensed to Annapolis Valley Radio Ltd. (AVR). These stations attract a large percentage of available listeners of all ages, and provide a valuable local service. AVR is also the licensee of CKWM-FM Kentville which broadcasts the CBC English-language FM radio service under the terms of an affiliation agreement which expires 1 September 1986.
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In support of its proposal, CHUM Limited noted that, apart from the CBC programming broadcast on CKWM-FM Kentville, there is no reliable Nova Scotia FM service in this area. The applicant argued that there is a community of interest between Halifax and the Annapolis Valley which would be reflected and served by CIOO-FM's provincial and regional news and public affairs programming.
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With respect to concerns about the potential financial impact the proposed rebroadcasting transmitter might have on the local broadcasting stations licensed to AVR, the applicant stated that it would not solicit local retail advertising or promote CIOO-FM within the Annapolis Valley.
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As for regional and national advertising, the applicant claimed that the presence of the CIOO-FM service in the area would not have any significant impact on the regional and national revenues of the local stations.
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The Commission has considered the views expressed by the applicant, and acknowledges that there is a strong demand by area residents for an alternate commercial radio service in the Annapolis Valley, as demonstrated by the 7,000 signatories to a petition requesting extension of the CIOO-FM radio service which was filed by CHUM Limited as part of its application. The Commission has also considered the interventions submitted by local residents expressing support for the alternate service proposed by the applicant. It notes that none of the interventions contained negative comment with respect to the quality of the local broadcasting service provided by AVR.
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In its assessment, the Commission has given particular weight to the arguments contained in the intervention by AVR in opposition to the application, and presented by the company's President and owner, Mr. Neil H. MacMullen.
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Mr. MacMullen called into question the applicant's assumption that the proposal would have little or no financial impact on AVR's existing AM operations in the Annapolis Valley. The intervener argued that the audience fragmentation brought about by the proposed retransmitter could be expected to cause a significant reduction in local station listenership. Mr. MacMullen stated that the presence of CIOO-FM service in the area, combined with a reduction in AVR's listenership, would diminish the incentive for national advertisers to buy time on the local stations since a significant portion of the same Annapolis Valley audience, especially those between the ages of 20 and 40, could be reached by purchasing air time on the Halifax station.
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Mr. McMullen argued further that if the application were approved, notwithstanding the applicant's undertaking not to solicit retail advertising in the Annapolis Valley, the resulting decrease in the listenership of AVR's stations would either oblige AVR to reduce the rates charged to local advertisers or constrain AVR's ability to increase the rates, with the result being a reduction in overall revenues. This, in turn, could lead to a decrease in the quality of service that AVR would be able to provide local listeners.
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Mr. MacMullen also stated that it was part of AVR's long-term plan to use its FM station in Kentville, CKWM-FM, for the provision of local commercial FM service to the Annapolis Valley as soon as the affiliation agreement between the CBC and AVR expires in September 1986. He indicated that several initial steps had already been taken in this regard, and described his plans for the development of an FM service in a contemporary music format similar to that provided by CIOO-FM. He argued that approval of the current application would seriously prejudice those plans:
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If CHUM Limited's application is approved, of course, I doubt that the CRTC will allow us to do that and therefore we will have to look very seriously at what we could program that would be a viable operation that would cover the area ...I'd like to take and have the chance to put my local station on the air. And after I'm on the air a couple of years, then see if (CHUM Limited) would like to apply ....if they'd still feel if there's a need for that type of service.
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The Commission has also considered the other interventions in opposition to the application submitted by other broadcasters in Atlantic Canada. The predominant view expressed was that establishment of the CIOO-FM rebroadcaster would constitute a precedent for major metropolitan radio stations to establish rebroadcasters in smaller communities, in competition with existing local broadcasters, without providing any local service. They suggested that this would be to the detriment of rural broadcasters in Canada and the smaller markets they serve.
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The interveners noted, with regard to the current application, that the proposed rebroadcaster of CIOO-FM would offer no local community-oriented programming service to the area, and would serve to expand the already considerable media influence of CHUM Limited in the Atlantic region at the expense of the local broadcaster, due to the audience fragmentation it would cause.
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After careful consideration of all of the above, particularly the extent to which the proposal by CHUM Limited might impact on the quality of existing AVR services in the Annapolis Valley or jeopardize the establishment of a truly local FM service, the Commission has determined that approval of the application would not be in the public interest. It remains concerned that alternate, local FM service be provided to the Annapolis Valley at the earliest date, and will follow the situation closely with all parties concerned.
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Fernand Bélisle Secretary General
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