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Decision
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Ottawa, 27 September 1985
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Decision CRTC 85-917
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CFCN Communications Limited
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Edmonton, Alberta - 850386400
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Following a Public Hearing in Calgary on 28 May 1985, the Commission renews the broadcasting licence for CJAX-FM Edmonton from 1 October 1985 to 30 September 1986, subject to the conditions of licence specified in this decision and in the licence to be issued. This one-year term should provide the licensee with sufficient time to respond to the serious concerns discussed at the hearing with respect to compliance with its Promise of Performance, and to demonstrate to the Commission that CJAX-FM is operated in compliance with its Promise of Performance and the Radio (F.M.) Broadcasting Regulations.
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On 29 October 1981 the Commission granted a licence to CFCN Communications Limited (CFCN) to operate a Country FM station (CJAX-FM) in Edmonton (Decision CRTC 81-798). At the same time it also licensed Robert N. McCord, representing a company subsequently incorporated as CISN Radio Ltd. (CISN), to operate a Country FM station in Edmonton. Noting the commitments of both applicants, the Commission emphasized that although it was granting two Country FM licences for the same market, the licensees had made commitments to serve two distinctly different audiences. CFCN had proposed a more rock-oriented Country sound, aimed primarily at the 18 to 34 age group, whereas CISN had proposed a more traditional Country format for an older, 25 to 49, target audience. The Commission stated that it expected the licensees "to adhere closely to their commitments to ensure that such diversity is maintained." It also noted CFCN's commitments to high standard, 100% Foreground and Mosaic programming, to news and the support of Canadian talent, and its corporate expertise. In the same decision, the Commission denied five competing applications for FM stations to serve Edmonton.
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CJAX-FM commenced operation on 10 August 1982 and, during the first 12 months of operation, encountered significant difficulties in attracting an audience. Heavy financial losses were experienced, and the licensee adjusted its programming in an attempt to raise low audience levels.
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When the Commission conducted an analysis of CJAX-FM's programming for 22 June 1983, it determined that only 8.6% of all programming broadcast qualified as Foreground. A number of programs failed to meet the necessary Foreground criteria because of insufficient Enrichment material. In accordance with its Promise of Performance, the licensee was required to maintain a minimum Foreground commitment of 33%, with a combined commitment to Foreground and Mosaic programming of 100%. The shortfall was brought to the licensee's attention in a letter from the Commission dated 13 September 1983. Replying in October 1983, CFCN advised that, in view of CJAX-FM's difficult financial position, it intended to implement its Foreground and Mosaic format commitments gradually, striving for quality rather than quantity, and that 15% was the immediate, temporary goal for Foreground programming.
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Towards the end of 1983, Commission staff met with CFCN to review its various programming commitments and to discuss problems.
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On 24 January 1984, in a letter to the Commission, CISN complained that CJAX-FM was duplicating its musical format, and that little programming in the Foreground or Mosaic format was being broadcast on CJAX-FM.
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Following the complaint, the Commission completed an analysis of the station's logs for the first two weeks of January 1984, which indicated a Foreground level of approximately 14%. When the Commission checked the playlist for the week of 20 February 1984, it determined that many of the musical selections were in the more traditional Country vein, rather than in the Country-rock style to which CFCN had promised to adhere, and that there was an excessive use of "hits". At a meeting between CFCN and Commission staff on 8 March 1984, the licensee promised to improve the level of Foreground programming and to cease playing music which was predominantly aimed at an audience over 35 years of age.
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When the Commission conducted a further analysis for the week of 19 to 25 March 1984, it found a reduced problem with regard to "hit" selections, but that only 403 distinct musical selections were played during that week. The Promise of Performance commitment is 1,100 selections, The analysis also indicated serious shortfalls in the level of Foreground programming. The station's logs indicated a Foreground level of 14.7% for the week noted above. Again, the Commission determined that CFCN's problems with respect to Foreground arose from the lack of Enrichment material, as well as the absence of thematic linking devices and, in some cases, insufficient time allocated to the presentation.
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In a letter dated 7 August 1984 to CFCN, the Commission summarized the various analyses and results with regard to CJAX-FM's programming up to that time, and noted:
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We are aware that you are having difficulty with CJAX-FM, but the Commission expects substantial compliance by each FM station to its Promise of Performance, and that a station obtain approval from the Commission before it implements substantial change to its programming.
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The licensee responded in a letter dated 16 October 1984, advising that, under new management, measures were being implemented to resolve the station's various problems and to ensure compliance with its Promise of Performance.
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As part of a general review of FM radio in Edmonton, the Commission had monitored the programming of CJAX-FM in early October, prior to the receipt of the letter of 16 October 1984. An analysis for 9 October indicated a continued shortfall in the level of Foreground programming (4.6%) and an unacceptable level of "hits" (55.4%).
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In view of the letter of 16 October, a further analysis of CJAX-FM's programming was carried out by the Commission for 11, 12 and 13 February 1985, which, when extrapolated for a full week, indicated a Foreground level of 28.7%. This level was a substantial improvement but still below the 33% weekly commitment in the Promise of Performance. Station logs for this week indicated 30.5% Foreground.
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At the 28 May 1985 hearing in Calgary, the licensee acknowledged that, when its managerial reorganization took place in August 1984, it was aware that it was not meeting the programming commitments which had been promised in 1981:
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...the CRTC staff did a RAP (program analysis) on the station and the results speak for themselves. Our commitment was for 33% Foreground and the RAP showed we were doing 14%. Our combined Foreground and Mosaic commitment was 100% and we were doing 54%. Clearly, there was a great deal of room for improvement. Meeting our Promise of Performance commitments became an immediate priority at CJAX. The results of these efforts can be seen in the RAP analysis that was held just four months later, in February of this year. The percentage of qualifying Foreground programs had more than doubled to almost 30% and we calculate our combined Foreground and Mosaic level exceeded 70%.
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The licensee agreed that further efforts were necessary to achieve a combined Foreground and Mosaic level of 100%, in accordance with the Promise of Performance.
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With regard to bits, the licensee also confirmed that, prior to August 1984, CJAX-FM had been exceeding the 50% level. As stated in Public Notice CRTC 1984-151 on the Review of Radio and specified in its Promise of Performance, it is required to maintain a level of hits below 50%. The licensee advised, however, that this level is now checked on an ongoing basis and that it has also taken steps to ensure it complies with the requirement that 30% of all category 5 (Music-General) selections qualify as Canadian. Concerning the size of the station's playlist, however, the licensee stated that it consists of approximately 770 selections, whereas the number included in the Promise of Performance is 1,100.
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Although the licensee had promised an annual budget of $100,000 for the support and promotion of Canadian talent, it had only expended some $61,000 for this purpose during the past year.
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In this case, the Commission recognizes that the licensee has attempted to rectify the serious shortfalls in its programming commitments, and has made some progress in bringing CJAX-FM into compliance with its Promise of Performance. At the same time, the Commission is mindful that the station was operated in serious non-compliance with its programming commitments for two years and that, even now, despite a much improved effort, CJAX-FM does not fulfill all aspects of its Promise of Performance.
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The Commission is also concerned with the integrity of its licensing process. CFCN was granted an FM licence to serve Edmonton, in preference to five competing proposals, because of important commitments with respect to Foreground and Mosaic Programming, the amount and quality of its news, its support of Canadian talent, and, most particularly, assurances that it would play "urban country" music aimed at "primarily young adults of 18 to 34 years of age" (Decision CRTC 81-798). The latter commitment to serve a distinctively different audience to that sought by CISN was fundamental to the Commission's decision to licence two Country FM stations for Edmonton.
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At the hearing, the licensee proposed to change the music format of the station from Country ( "Group III") to "Group I" with a predominance of Pop and Rock, Softer (subcategory 51) selections. The licensee also proposed to reduce the current level of news broadcast weekly from 10 hours 22 minutes to 5 hours 25 minutes; to reduce the weekly level of Spoken Word content from 35 hours 41 minutes to 14 hours 39 minutes; and to reduce the Canadian content level for category 5 music selections from 30% to 20%.
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These new amendments applied for are so substantially below the level of the original commitments made at the competitive hearing when CJAX-FM was licensed that the Commission is not prepared to approve them. However, the Commission does note the recent efforts of CJAX-FM to come into compliance and the substantial losses incurred by CJAX-FM as a Country station. It therefore will consider favourably a format change to "Group I" but directs the licensee, within the context of that format, to resubmit a new Promise of Performance more in keeping with the level of commitment made at its original licensing hearing, especially insofar as News, Foreground and Mosaic, and support of Canadian talent are concerned. Until this new Promise of Performance is approved, CJAX-FM is expected to adhere to its original Promise of Performance in all respects.
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The Commission acknowledges the interventions presented at the hearing by the Alberta Recording Industry Association and the Canadian Independent Record Production Association, opposing the licensee's proposed reduction in the level of Canadian content category 5 music selections from 30% to 20%. The Commission has denied the proposal, and reminds the licensee that it is required, as a condition of licence, to adhere to a level of 30% in this respect.
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Fernand Bélisle Secretary General
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