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Decision
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Ottawa, 26 October 1987
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Decision CRTC 87-859
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Bayshore Broadcasting Corporation Owen Sound, Ontario - 862608700
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CKNX Broadcasting Limited Owen Sound and Meaford, Ontario - 870843000 - 870844800
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At a Public Hearing in the National Capital Region on 9 July 1987, the Commission considered an application by Bayshore Broadcasting Corporation (Bayshore) for a broadcasting licence for an English-language FM radio service in Owen Sound, as well as applications by CKNX Broadcasting Limited (CKNX Broadcasting) to establish rebroadcasters of CKNX-FM Wingham at Owen Sound and Meaford.
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The Commission received the Bayshore application on 9 October 1986 and in keeping with its usual procedures, issued a call for applications for a licence to carry on an FM radio undertaking to serve Owen Sound (Public Notice CRTC 1987-31 dated 3 February 1987). Subsequently, CKNX Broadcasting filed its applications.
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The Commission notes that Owen Sound is situated in the northern part of the Grey-Bruce area of Ontario and is the only major urban centre in the region. Local private radio service in this market is currently confined to one AM station, Bayshore's CFOS, which provides an adequate service during the day but has limited coverage at night owing to the skywave interference which occurs after sunset. The signals of CKNX and CKNX-FM Wingham are also available, along with a number of out-of-market signals. According to BBM data for fall 1986, CFOS was the most popular station in Grey County, while the Wingham stations ranked first and second in Bruce County.
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The Applications
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Bayshore's proposal is for a new FM station, to be operated on a joint basis with CFOS. The stated purpose of the application is to complement the existing AM service and provide a local alternative to the FM services currently available to Owen Sound and district.
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At the hearing, Bayshore explained that, in view of the severe limitations on its AM signal, the proposed new station would ensure that valuable local surveillance information would be available in a part of Ontario where "weather patterns... are most unpredictable" . Noting that CFOS is "primarily an information service" with music geared to an older audience, Bayshore indicated that the proposed FM service would be operated in the Group I music format, offering a "bright and contemporary" popular sound to younger adult listeners. It would also provide a news service that is more comprehensive than the programming currently available in the area.
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CKNX Broadcasting based its applications to establish rebroadcasters of the CKNX-FM signal primarily on technical grounds, with a view to improving its service to areas in which it claimed the signal quality was poor. At the hearing, it affirmed that CKNX-FM is licensed to serve the entire Grey-Bruce area, including Owen Sound and Meaford, that this large regional market has no single central core but is comprised of several scattered communities with similar interest, and that CKNX-FM depends on the entire market for its revenue base and programming service. The present applications by CKNX Broadcasting do not include programming changes but are intended "to allow the entire Grey-Bruce area easy access to our music, news, promotional and advertising services." The Commission notes that CKNX-FM is currently operating in a music format that corresponds to Group I.
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Interventions
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The Commission received seventy-five interventions in support of Bayshore's application from individuals, elected representatives, businesses, cultural organizations and other interested parties in Owen Sound and district.
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A majority of interveners cited the need for a reliable local service broadcasting twenty-four hours a day in an area that is underserved in terms of radio. They also considered that Bayshore would provide vital surveillance information and news pertinent to the Owen Sound area. Many felt that the proposed new service would offer much-needed support and exposure for cultural and arts groups in the region, citing Bayshore's proven record of community involvement. From an economic point of view certain interveners mentioned Owen Sound's growing importance as a regional centre and welcomed an additional advertising outlet for local businesses. Still others felt that the proposed new station would provide a listening alternative to CKNX-FM, which, they said, caters to a teenage audience.
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Owen Sound's Economic Development Director, representatives of the Georgian Bay Symphony, the Lake Huron Fishing Club, the Owen Sound Little Theatre and the Georgian Triangle Tourist Association and Convention Bureau, Mr. Andrew Armitage, and the Mayor of the Town of Meaford reiterated their support at the hearing. Mayor Crapper emphasized the isolation of communities in the northern part of Grey County, the importance of surveillance information and the need for a local FM service, noting that "any FM station is at least fifty miles away."
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Dufferin Communications Inc. (Dufferin), licensee of CIDC-FM Orangeville, acknowledged at the hearing the need for improved radio service to Owen Sound. It expressed concern, however, that the presence of a new Owen Sound station would impair its ability to attract national advertising revenue and questioned whether Bayshore's proposal would contribute to diversity of service in the area.
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The Commission received interventions in support of CKNX Broadcasting's Meaford application from the Meaford Chamber of Commerce and Meaford Travel Service. It also heard arguments from Dufferin to the effect that CIDC-FM's signal would be affected by CKNX Broadcasting's choice of frequency for Owen Sound. This intervener further pointed out that there was no call for applications to serve Meaford because Public Notice CRTC 1987-31 specified applications to serve Owen Sound. In this regard, Dufferin asked that any call for applications to serve Meaford be "wide open" to permit all interested parties to apply.
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Decisions
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The Commission has taken into account the particular characteristics of the Owen Sound market, including the range of radio services currently available, the topography of the region, the demand and need for the proposed services, the ability of the market to support a new FM service and the question of diversity. It has also considered the points raised by the interveners and the applicants' replies.
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Based on all the information on file and for the reasons set out below, the Commission approves the application by Bayshore Broadcasting for a licence for an English-language FM radio broadcasting transmitting undertaking at Owen Sound on the frequency 106.5 MHz, channel 293, with an effective radiated power of 100,000 watts.
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The Commission will issue a licence expiring 31 August 1991, subject to the conditions specified in this decision and in the licence to be issued. This term will enable the Commission to consider the renewal of this licence at the same time as that of other radio undertakings in the region.
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The Commission considers that there is a clear demand and a need for Bayshore's proposed new service and that the market can support a new joint station at this time without creating undue harm to existing broadcasters in the area. While CKNX Broadcasting indicated at the hearing that it needs Owen Sound economically, it also stated that it did not object to Bayshore's application on economic grounds and, further, that only about 12% of its FM revenues are derived from the Owen Sound area. Similarly, Dufferin indicated that any of its revenues from Owen Sound are "not significant~. In contrast, CFOS derives approximately 50% of its revenue from Owen Sound and environs and, in the Commission's view, is most likely to be affected by the entry of a new station into this market.
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The Commission is also satisfied that Bayshore's proposal will provide a local alternative to the services currently available in the market and that its spoken word programming in particular will contribute to program diversity. In this regard, it notes that CKNX Broadcasting described its FM station "from a programming standpoint ... [as] a regional station" which tries to balance its programming for the whole coverage area", while Bayshore stressed service to an Owen Sound-centered market through the provision of essential surveillance material, indepth treatment of local and regional news, and a variety of locally-produced programs.
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The Commission notes that Bayshore's musical programming proposals have much in common with the current offerings of the regional FM stations, in particular CKNX-FM. This matter was discussed at some length at the hearing with specific reference to the recent change in the Wingham station's vocal-to-instrumental radio.
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As stated in previous decisions Group I covers a broad range of music from the softer side of the pop and rock music spectrum and can accommodate a variety of station "sounds". At the hearing, Bayshore reiterated its view that this station format was appropriate for its market and stated:
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There is still a position within the spectrum of Group I for the application of Bayshore and it does not ... conflict, either in spoken word or in the music category with that of the CKNX-FM actual [programming].
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The Commission expects Bayshore to take the necessary steps to ensure that such diversity is maintained and that the FM service is a truly alternative service for the people of Owen Sound and area.
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The Commission notes that Bayshore has allocated an annual budget of $1,000 for the broadcast of concerts by such groups as the Georgian Bay Symphony, the Stratton All-Stars, school orchestras and choirs. Other annual commitments include scholarships of $500 each for the Kiwanis Music Festival and the Stratton All-Stars, $2,500 in direct costs to co-sponsor a concert by a Canadian artist and a contribution of $l,000 to FACTOR/CTL. The Commission reaffirms the importance of Canadian talent development and encourages Bayshore in these efforts.
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It is a condition of licence that construction of the station be completed and that it be in operation within twelve months of the date of this decision or such further period as the Commission may, upon receipt of a request for extension before the expiry of the said twelve months, deem appropriate under the circumstances.
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It is a further condition of licence that Bayshore adhere to the CAB self-regulatory guidelines on sex-role stereotyping, as amended from time to time and accepted by the Commission.
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In its consideration of CKNX Broadcasting's applications, the Commission has taken into account the results of field intensity measurements taken by the applicant's consulting engineer. The Commission's analysis of these results revealed that the signal levels measured in Owen Sound appear to be adequate and consistent with predicted levels derived by the Department of Communications according to its standard propagation method. The Commission does not consider that CKNX Broadcasting has made a convincing case for the establishment of the proposed rebroadcaster on technical grounds and therefore denies the Owen Sound application.
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With respect to the Meaford application, the Commission recognizes that the actual 500 microvolt per metre contour of CKNX-FM does not reach Meaford while the predicted contour barely encloses it. It also notes, however, that approval of the proposed rebroadcaster would result in an extension of CKNX-FM's service area to the area beyond Meaford and toward the community of Thornbury, which is not part of the station's currently authorized coverage area. It is the Commission's view that this extension is not justified and that CKNX Broadcasting should explore other means of increasing its signal strength in Meaford. Accordingly, the Meaford application is also denied.
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The Commission is satisfied that the new Owen Sound FM station authorized herein wIll provide an adequate signal to Meaford and complement the available radio services in this area.
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Fernand Bélisle Secretary General
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