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Decision
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Ottawa, 15 April 1987
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Decision CRTC 87-295
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Amicus Communications Inc.
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Windsor, Ontario - 861143600Related documents
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Public Notices CRTC 1984-233 and 1985-66 dated 25 September 1984 and 26 March 1985, respectively; Decision CRTC 85-158 dated 29 March 1985.
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At a Public Hearing held in the National Capital Region on 17 February 1987, the Commission considered an application to amend the broadcasting licence for CKLW-FM (formerly CKEZ-FM) Windsor by changing certain Promise of Performance commitments. These amendments were discussed in the context of the Commission's special regulatory approach with respect to this market, as established by the Commission following a review of the Windsor broadcasting environment and the problems affecting licensees in the area, in particular the overall decline in audiences and revenues as a consequence of their proximity to the large and competitive Detroit market.
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In Public Notice CRTC 1984-233, the Commission determined that the special characteristics of the Windsor broadcasting market set it apart from other Canadian markets and warranted an extraordinarily adaptive regulatory approach, particularly with respect to the application of the FM regulations. To allow itself sufficient latitude to deal with special situations such as Windsor, the Commission created a new class of FM licence, the "experimental" licence (Public Notice CRTC 1985-66).
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Accordingly, in Decision CRTC 85-158, the Commission granted the licensee an experimental FM licence expiring 31 March 1990 for CKLW-FM when it acquired the assets of CKLW-FM and its sister station CKLW Windsor. In keeping with its experimental approach, the Commission authorized the licensee to institute a number of programming changes, noting that CKLW-FM's format would be altered to appeal to listeners between the ages of 40 and 54. It also stated that it would review the situation at the time of licence renewal and required the licensee to submit a report within two years of the date of the decision, and on an annual basis thereafter.
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Despite significant changes in the station's programming, the licensee advised the Commission in a letter dated 25 April 1986 that CKLW-FM had failed to attract the audiences needed to ensure the station's viability. Citing intense competitive pressures from the numerous U.S. stations in Detroit, it again proposed to alter its programming strategy and to make certain related changes in its Promise of Performance commitments. The Commission subsequently called the licensee to appear at the 17 February 1987 Public Hearing in order to discuss the proposed amendments and to review CKLW-FM's compliance with its Promise of Performance and conditions of licence.
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At the hearing, the licensee acknowledged that, in an effort to compete successfully in this highly competitive and volatile market, it had made certain changes in its programming which did not comply with its authorized Promise of Performance. In support of the changes in programming orientation, Amicus Communications Inc. (Amicus) referred to a study it had undertaken which demonstrated the potential viability of a station appealing to an audience between the ages of 35 and 49, and offering an extensive playlist with low levels of current hits and repeats. The licensee further noted that this approach had resulted in significantly improved ratings and financial performance for the station.
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While it assured the Commission that it was "not the intention of our company to abuse the flexibility represented by an experimental licence", Amicus conceded at the hearing that it may have misunderstood the degree of flexibility conferred by the Commission on such a licensee with regard to changes in Promise of Performance commitments.
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Based on the particular circumstances of this case, the Commission has decided to approve the proposed Promise of Performance amendments, as set out below. The Commission, however, wishes to put Amicus on notice that although it has shown exceptional tolerance in this case during the past two years of the experimental licence term in order to give the licensee every opportunity to improve its financial performance by attracting larger audiences, it does not intend to exhibit the same degree of tolerance in future.
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The Commission emphasizes that the Promise of Performance must be adhered to and any amendments to Promise of Performance commitments must receive prior approval from the Commission.
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The Commission approves the proposal to adopt a vocal-to-instrumental ratio greater than 1 and notes that, the station will remain within its authorized Group I format.
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The Commission also approves an increase in the Canadian content level for popular music from 10% to 12%. The Commission is satisfied that approval of this request is consistent with its special approach to regulation of the Windsor market. In this regard, the Commission has taken into account the intervention from the Canadian Independent Record Production Association, requesting that the Canadian content level be increased to 20%.
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The Commission has taken note of the licensee's intention to conduct a local contemporary talent competition similar to CKLW's classical talent search.
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The revised Promise of Performance indicated a level of hits of 15%. The licensee clarified at the hearing that this proposal was predicated on Commission acceptance of a modified hits definition. Under the Commission's current definition, it would, however, seek authority to increase the level of hits to 85%. In support of this proposal, it pointed out that CKLW-FM relies on musical selections that are at least five years old and that its repeat factor is very low. It further maintained that approval of its proposal would enable CKLW-FM to enhance the diversity of radio service in this well-served market.
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Consistent with the licensee's proposal, the Commission approves an increase in the level of hits to 85%, subject to the condition of licence agreed to by the licensee at the hearing that none of the hit selections broadcast by CKLW-FM be less than five years old.
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Accordingly, the licensee must ensure that at least five years have elapsed between the date on which any particular hit selection first reached a Top 40 position in a major national or international trade magazine and the date of broadcast of that selection. The Commission wishes to emphasize that this exception to its general requirement that FM stations maintain a level of hits below 50% is based on the special circumstances of this case.
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The licensee's proposal to reduce the level of foreground and mosaic programming from 82% to 33% is approved. The Commission notes that the licensee's commitment to foreground programming remains unchanged and that the combined level of foreground and mosaic authorized herein is in line with the level authorized for the other commercial FM licensee in this market, CHUM Limited.
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Consistent with Decision CRTC 85-158, the Commission requires the licensee to file an annual report outlining its progress in implementing its business plans and the success of its programming proposals. It should include in this report information concerning CKLW-FM's compliance with its Promise of Performance commitments, particularly in the areas of hits, foreground and combined foreground/mosaic programming.
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In this regard, the Commission reminds the licensee that in Public Notice CRTC 1984-233, the "Windsor Radio Review", the Commission expressed the view that its objectives in Windsor would "be achieved by programming services that reflect a firm Canadian orientation in their approach to the provision of spoken word and music programming". It expects the licensee to include in its report details of how it is meeting the needs and interests of the Windsor area.
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The Commission notes that certain specific conditions of licence were imposed in Decision CRTC 85-158. These conditions relate to the broadcast of announcements indicating the relationship between CKLW and CKLW-FM and limits on hourly commercial content, and may no longer be appropriate in light of the Radio Regulations, 1986 which came into effect 19 September 1986. Accordingly, the licensee may wish to apply to delete these conditions.
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Fernand Bélisle
Secretary General
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