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Public Notice
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Ottawa, 28 April 1988
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Public Notice CRTC 1988-73
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Non-Compliance with Respect to Certain Promise of Performance Commitments by CHUM Limited, Licensee of CHUM-FM Toronto; Rogers Broadcasting Limited, Licensee of CHFI-FM Toronto; and Westcom Radio Group Limited, Licensee of CILQ-FM Toronto
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In CRTC Notice of Public Hearing 1988-24 dated 29 March 1988, the Commission has indicated its concern with respect to the apparent failure of the above licensees to meet certain of their programming commitments as set out in the Promises of Performance of their respective Toronto FM stations, notably with respect to the proportion of hits or the Canadian musical selections broadcast by the stations.
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In light of the apparent failure of these three licensees to adhere to the existing regulatory framework, they were called to a hearing on 12 April 1988 to provide the Commission with an explanation of their performance. The Commission has taken into consideration the comments made at the hearing and has made the following determination in each of the three cases.
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CHUM-FM
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In its Promise of Performance, CHUM-FM has undertaken to program hits to non-hits in an approximate ratio of 49:51 during each broadcast week. When the Commission analysed the station's daily performance on two separate occasions, namely on 14 October 1987 and 8 January 1988, it found that CHUM-FM had programmed 59.1% hits on the first occasion and 56.4% on the second. According to CHUM-FM's self-assessment of the programming broadcast, the station was playing 51.5% and 49.8% hits on 14 October 1987 and 8 January 1988 respectively, with 49.9% hits during the week of 11 to 17 October 1987 and 50.35% during the week of 3 to 9 January 1988.
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At the hearing, CHUM-FM acknowledged that "the hit level of less than 50% for FM radio must be maintained and enforced in order to preserve the viability of contemporary music on AM radio and the equilibrium of the Canadian broadcasting system". The licensee went on to state its belief that "the hit usage guidelines have been instrumental in the survival of Canadian AM radio" and that they are "fundamental to the maintenance and productivity" of the system. For the week of 3 January to 9 January 1988, CHUM-FM admitted at the hearing that, according to its own self-assessment, its level of hits was marginally above its weekly Promise of Performance commitment. It suggested, however, that it was in compliance with the spirit of its own 49% commitment.
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According to CHUM-FM, its apparent failure to meet its programming commitments in October and January can be attributed to its own method of calculating the level of hits and to a misunderstanding of the Commission's definition of a hit.
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Given CHUM Limited's experience as a broadcaster, the Commission does not accept CHUM-FM's claim of a misunderstanding of the definition of a hit, particularly in light of the fact, as noted earlier in the Introductory Statement to this Public Notice, that the Commission provided clarification of the definition in Public Notice CRTC 1986-248 following extensive consultation with the radio and recording industries. The Commission also does not accept CHUM-FM's other reasons for considering itself to be in compliance.
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Moreover, the Commission reminds the licensee that it had been advised on two previous occasions (Decisions CRTC 85-921 and 87-593) that the Commission was not satisfied with CHUM Limited's method of calculating hits, which is unlike that of other FM broadcasters in that it does not make allowances for recordings which may have moved into the Top 40 section of the charts by the time the musical selections are actually broadcast.
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The Commission is of the view that CHUM-FM must take the necessary steps and implement the proper safeguards to ensure that it meets its Promise of Performance commitments and that it is in compliance with its conditions of licence.
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In this respect, the Commission notes that CHUM-FM recognized at the 12 April 1988 public hearing that, if it were to retain its current practices, compliance would be assured by programming 3% to 4% fewer hits. The Commission considers that this would be a reasonable manner for CHUM-FM to meet its commitment.
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The Commission will be monitoring the station's performance closely. Should CHUM-FM fail to take the necessary steps immediately to ensure that it meets the commitments contained in its Promise of Performance, the Commission puts CHUM Limited on notice that it may have no other recourse but to call the licensee to a hearing to show cause as to why its licence should not be suspended.
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CHFI-FM
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In its Promise of Performance, CHFI-FM has undertaken to program hits to non-hits in an approximate ratio of 47:53 during each broadcast week. When the Commission analysed CHFI-FM's daily performance on 14 October 1987 and 8 January 1988, it found that the station had programmed 54.5% hits and 58.7% hits respectively. According to CHFI-FM's self-assessment of the programming broadcast, the station was playing 51.8% and 58.5% on 14 October 1987 and 8 January 1988 respectively, with 53.5% hits during the week of 11 to 17 October 1987 and 59% during the week of 3 to 9 January 1988.
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CHFI-FM attributed its non-compliance to human error. After stating its belief that the hit guidelines provide an important differentiation between AM and FM radio and should be maintained, CHFI-FM informed the Commission that it had instituted procedures which have put it substantially in compliance and that it will remain in compliance "by taking into account to the greatest extent possible human error."
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CHFI-FM explained that in September 1987 it had implemented a new computer-assisted music planning system to allow it to rotate music, ensure Canadian content levels are met, control its maximum repeat factor and monitor its hit to non-hit ratio. It explained further, however, that its specialty programs, including a Saturday night "oldies" show which is made up predominantly of hits, are programmed by hand rather than computer and that its state of non-compliance had resulted partially from the inadvertent omission of such programming in its music monitoring. CHFI-FM also cited its practice of allowing announcers to add or delete songs from the playlist as a cause for its non-compliance.
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To ensure compliance with its commitment of 47% hits, CHFI-FM stated that it now prepares format sheets for its specialty programs which prescribe the number of hits that can be play ed. The station also informed the Commission that its new computer system now takes into account both the fact that certain shows may contain a high proportion of hits and the possibility that announcers may add or delete songs because of time constraints or for other reasons.
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The Commission views with concern the failure of Rogers Broadcasting Limited to comply with its own Promise of Performance commitments. However, the Commission recognizes that once the failure to meet its commitments was identified, the licensee took specific steps to ensure compliance. The Commission will continue to monitor the performance of CHFI-FM, and puts it on notice that it will take whatever regulatory action is appropriate should the licensee fail to comply with the conditions of licence relating to its Promise of Performance, including, if necessary, calling the licensee to a hearing to show cause as to why its licence should not be suspended.
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CILQ-FM
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In its Promise of Performance, CILQ-FM has undertaken to broadcast 30% Canadian musical selections. The Commission's analysis of the station's performance on 13 October 1987 and 8 January 1988 revealed Canadian content levels of 21.5% and 27.7% respectively. According to CILQ-FM's self-assessment of the programming broadcast, the station was playing 22.2% and 29.1% Canadian selections on 13 October 1987 and 8 January 1988 respectively, with 24.5% during the week of 11 to 17 October 1987 and 29% during the week of 3 to 9 January 1988.
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At the hearing, CILQ-FM admitted that it had not met its Canadian content commitment on the two occasions monitored by the Commission. While CILQ-FM stated that it had not acted intentionally, it acknowledged that there was no excuse for its non-compliance. It then described the measures it has taken to ensure compliance. According to the station, it now tabulates its Canadian content commitment and its compliance on both a daily and weekly basis and checks this tabulation "show by show and day by day".
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The Commission views with concern the failure of Westcom Radio Group Limited to comply with its own Promise of Performance commitments. However, the Commission recognizes that once the failure to meet its commitments was identified, the licensee took specific steps to ensure compliance. The Commission will continue to monitor the performance of CILQ-FM, and puts it on notice that it will take whatever regulatory action is appropriate should the licensee fail to comply with the conditions of licence relating to its Promise of Performance, including, if necessary, calling the licensee to a hearing to show cause as to why its licence should not be suspended.
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Fernand Bélisle
Secretary General
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