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Ottawa, 24 October 1986
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Decision CRTC 86-1040
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Radiomutuel (1985) Limitée
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Quebec City, Quebec - 853308500
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Following a Public Hearing in Sainte-Foy, Quebec on 16 June 1986, the Commission renews the broadcasting licence for CHIK-FM Quebec City from 1 November 1986 to 30 September 1990, subject to the conditions specified in this decision and in the licence to be issued.
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On 27 September 1985 (Decision CRTC 85-924), the Commission renewed the licence for CHIK-FM for one year only because of shortcomings in the licensee's performance in relation to the commitments in its Promise of Performance, in particular the station's music format and foreground programming. In accordance with its usual policy in such cases, the Commission also denied all the proposed amendments to the Promise of Performance, indicating that it would not be ready to consider the amendments until the licensee's compliance had been demonstrated through subsequent programming analyses.
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The Commission conducted another analysis of CHIK-FM's programming for the week of 10 to 16 February 1986, which revealed that the licensee had increased its efforts and made progress in complying with its commitments. The Commission noted in particular a marked improvement in the level of foreground programming, which rose from 5% in January 1985 to 17.4% in February 1986, just short of the 20% commitment due to relatively minor deficiencies that caused some programs to be rejected.
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With respect to music format, the February 1986 analysis revealed that the licensee remained within the parameters stipulated in the Policy Statement on the Review of Radio (Public Notice CRTC 1983-43 dated 3 March 1983) with a vocal-to-instrumental ratio of 52.7/47.3, despite a 35/65 commitment in its Promise of Performance. The Commission stated in its Policy Statement that stations operating in the Easy Listening format, such as CHIK-FM, were characterized by a vocal-to-instrumental ratio that is equal to (50/50) or less than one. Mindful of the need for flexibility, the Commission was permitting a variation of 5% in the total number of musical selections in assessing any licensee's compliance. The Commission also took into consideration the explanations given by the licensee at the Public Hearing concerning certain problems in classifying instrumental selections, and the measures it had taken to ensure that such problems were not repeated.
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In its application for licence renewal, the licensee proposed to operate CHIK-FM in the Group IV music format instead of the currently authorized Group I format.
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In support of its application, the licensee explained at the hearing that since going on the air in 1982, it had experienced continuing problems in establishing itself in the Quebec City radio market and making a profit in the initially authorized Easy Listening music format. In particular, it stated [TRANSLATION]: "Part of our handicap has been problems obtaining instrumental selections", and referred to a study which indicated that the production of Easy Listening instrumental music between 1971 and 1980 was only half of what it had been between 1961 and 1970. The licensee also submitted a recent compilation by a trade publication showing that only four instrumental selections produced since 1983 had been classified as hits by that publication. The licensee pointed out that CHIK-FM's situation was even more difficult due to the fact that it broadcasts in French [TRANSLATION] "because there are not many instrumental versions of French-language hits."
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When asked at the hearing about the consequences of the proposed amendment on CHIK-FM's initial target audience, the 35-49/50+ age group, the licensee stated [TRANSLATION]: "There is no evidence that that group is not well served." It referred in particular to CITF-FM Quebec City (Group I) and the CBC radio station which serve this audience, and added [TRANSLATION]: "It is obvious that the needs of this audience are amply met by AM radio, as the 50+ age group devotes 80% of its listening to AM."
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With respect to the proposed Group IV format, the licensee stated at the hearing that its aim was to enhance diversity in the Quebec City market by giving CHIK-FM a complementary "Dance music" format. The licensee maintained that "Dance music" falls within Group IV, that it is a distinctive sound with its own hits, and that it is not currently available to the Quebec City market, since the Commission has not authorized any FM station in Quebec City to operate in Group IV. It added that CHIK-FM's sound would be identical to that of its station CKMF-FM Montreal, which is authorized to operate in the Group IV music format (Decision CRTC 85-357). It also stated that Radiomutuel has the human and technical resources to introduce this format to Quebec City quickly and effectively.
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The Commission received interventions from two regional broadcasters, Les Entreprises de Radiodiffusion de la Capitale Inc., licensee of CHOI-FM Quebec City, and Radio Etchemin Inc., licensee of CFLS Lévis, who were opposed to CHIK-FM's proposed change of music format. Representatives of CHOI-FM appeared at the hearing and contended in particular that the change would deprive the largest age group in Quebec City of the Easy Listening format and would run counter to the objective of diversity of FM services. They also stated that in a recent decision (Decision CRTC 86-33 dated 29 January 1986) the Commission had denied the application to change CHOI-FM's music format from Group I to Group IV, and that the music programming proposed then had been similar to that proposed by CHIK-FM. For its part, CFLS submitted in a written intervention that its programming falls within Group IV, and that CHIK-FM's proposed amendment would lead to a reduction in CFLS' revenue and further fragmentation of the market.
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Taking into consideration the efforts made by the licensee to achieve a level of compliance, as well as all the evidence available including the arguments put forward by the licensee and the interveners, the Commission approves the proposal by CHIK-FM to operate in the Group IV music format.
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The Commission notes that, in its new Promise of Performance, the licensee has made a commitment to broadcast 50% category 51 music (Pop and Rock-Softer) and 50% category 52 (Pop and Rock-Harder).
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The Commission notes, as the licensee itself pointed out in reply to CHOI-FM's intervention, that in its application to change format, CHOI-FM proposed using Group IV to broadcast Contemporary MOR programming. That is why, in Decision CRTC 86-33 denying CHOI-FM's application, the Commission reiterated:
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In Public Notice CRTC 1984-249 dated 10 October 1984 announcing amendments to the Radio (FM) Broadcasting Regulations, the Commission stated in particular that it expected that most stations then classified as Contemporary MOR would be included in Group I. Group IV was not intended to cover music formats that could be integrated into the first three groups but rather it was intended to encompass stations offering other music formats or special combinations of popular music that did not correspond to Groups I, II or III.
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Furthermore, in Public Notice CRTC 1984-151 dated 18 June 1984 on "The Review of Radio - Simplification of the FM Policy", the Commission specifically stated:
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The Commission is aware that both Groups I and II stations may play some "Dance music". However, it will expect stations wishing to broadcast predominantly Dance music selections, to identify their stations in section D of the Promises of Performance as Group IV stations.
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At the hearing, the licensee described its achievements in promoting Canadian talent. It stated that it was in its second year of participation in Radiomutuel's program to promote Canadian talent (Opération TALCAN), which consists of an over-the-air campaign to promote the works of young authors, composers and performers, along with a series of foreground format programs and a gala annual event. The licensee stated that forty demonstration tapes had been submitted by young performers over the previous year, and that each of the fourteen winners were offered a six-hour recording session in a professional studio. These advertising campaigns and recording sessions represent an investment of approximately $50,000, including $8,600 in direct costs, for the coming year.
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Moreover, in its renewal application, the licensee made a commitment to allocate annually between $21,500 and $34,000 in direct costs, of which between $7,500 and $20,000 would go to Musicaction if its revenue exceeds a certain minimum ceiling, and $14,000 to the Soirée TALCAN. In addition, $46,000 in indirect costs would be allocated to campaigns to promote artists.
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The licensee also mentioned its participation in the Raymond Crépault bursary, worth $5,000, which is awarded each year to a francophone student in the field of communications.
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In view of the licensee's achievements in promoting Canadian talent and the commitments noted above, the Commission approves the proposal to reduce, by condition of licence, the level of French-language vocal music on CHIK-FM from 65% to 55% for a period expiring 31 March 1989. As noted in Public Notice CRTC 1986-67 dated 19 March 1986 on "Frenchlanguage Popular Music", the Commission expects to assess the availability of French-language recordings after a trial period of two years, and reminds the licensee "that the 55% level is a minimum to be surpassed if possible and that 65% remains the objective." The Commission will follow closely the licensee's efforts to use and promote Canadian talent in its programming.
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Dissenting Opinion from Commissioner Monique Coupal
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Even if one accepts the statements made by the applicant that it is technically in compliance with its Promise of Performance, I would not authorize this proposed change of format because, in my opinion, the Quebec City market will not be able to support a Group IV FM station in addition to a Group II (Rock) FM station, a Group I (Contemporary MOR) FM station, and an AM station operating in a Contemporary (Top 40) format.
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Fernand Bélisle
Secretary General
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