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Ottawa, 20 March 1986
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Decision CRTC 86-244
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C-FAX Radio 1070 Ltd. Victoria, British Columbia - 851562900
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Charles G. Camroux on behalf of Victoria Broadcasting Ltd. to be incorporated Victoria, British Columbia - 842893000Selkirk Broadcasting Limited operating under the name and style of Island Broadcasting Company Victoria, British Columbia - 851581900
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At a Public Hearing in Vancouver on 2 December 1985, the Commission considered three competing applications for a broadcasting licence for an English-language FM radio station to serve Victoria.
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The applications were submitted in response to a call issued by the Commission in Public Notice 1984-314 dated 20 December 1984. The call itself was issued pursuant to the lifting on 31 May 1984 of a longstanding freeze on FM applications from the Vancouver/Victoria area.
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In its public notice, the Commission emphasized that it had not reached any conclusion with respect to the viability of the market for a new FM service in Victoria, and that its call should not be construed as an indication of its intention to authorize such a service at this time.
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The Commission stated further that it would concern itself with the financial capability of the applicants and the viability of the proposed service, and reaffirmed that the objective of its FM policy is to ensure that the overall FM radio services provided in any given market are as varied and comprehensive as possible.
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The Victoria market is currently served by four commercial radio stations: CFMS-FM (Group I - Easy Listening/Beautiful Music), CFAX (Middle-of-the-Road), CKDA (Contemporary), and CJVI (Contemporary Middle-of-the-Road).
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Of these stations, CFAX is owned by C-FAX Radio 1070 Ltd. (C-FAX) and CJVI is owned by Selkirk Broadcasting Limited (Selkirk). These two licensees applied for joint FM licences. C-FAX proposed a new Group I station featuring predominantly pop and soft rock music. While the service was targeted to listeners between the ages of 18 and 34, the programming was designed to appeal primarily to the older members of this demographic group. Selkirk proposed a Group III country music station aimed at listeners between the ages of 25 and 49.
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The third applicant, a company to be incorporated represented by Charles G. Camroux (Camroux), proposed an independent FM station. The prospective shareholders are active in radio broadcasting in Edmonton and Fort McMurray, Alberta. Camroux proposed a Group II station featuring predominantly pop and hard rock music, targeted primarily to listeners between the ages of 18 and 28, within the broader 18 to 34 demographic group.
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A significant feature of the Victoria market is the extremely large amount of listening to the signals of out-of-market stations (49%). In the Commission's view, this demonstrates an unfilled demand among Victoria residents for greater diversity in local radio broadcasting services.
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There has not been a new private radio station licensed to serve Victoria since 1959. With just four commercial radio stations, Victoria is clearly underserved in comparison with other Canadian cities of similar size. Based on the evidence submitted at the hearing, however, the Commission notes that there has been little real growth in Victoria's economy and that the total advertising revenues of the city's existing stations have remained relatively static in recent years.
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Given the particular economic circumstances of the market, the Commission considers it unlikely that any more than one new radio service will be licensed to serve Victoria in the near future. Before licensing any new broadcasting undertaking to serve Victoria, the Commission must be satisfied that the prospective licensee possesses a full and clear understanding of the Victoria market and the needs of its residents. The prospective licensee must also demonstrate a thorough knowledge of the requirements of the FM policy and a strong commitment to its objectives. The Commission would require that the programming plans and chosen musical format will offer an attractive alternative to services provided by existing Victoria stations, and will be effective in repatriating listeners from out-of-market stations without unduly affecting the audience or revenue base of existing stations. The Commission would also wish to be satisfied with the financial ability of the applicant to carry out its proposals.
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The Commission has carefully examined the three applications before it and has determined that none of them fully meets the concerns noted above. The applications are accordingly denied. The Commission is convinced, however, that there is a demand for a new FM station to serve Victoria and it intends to issue another call inviting all interested parties, including the current applicants, to submit applications, taking into account these criteria.
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