|
Public Notice
|
|
Ottawa, 16 January 1992
|
|
Public Notice CRTC 1992-3
|
|
Guidelines for Assessing Applications for Programming Flexibility From Licensees of Radio Stations in Border Markets and Small Markets
|
|
I. Background
|
In Public Notice CRTC 1990-111 entitled An FM Policy for the Nineties, the Commission announced that, upon application, it would consider granting flexibility to the operators of radio stations in border markets or in small markets with respect to certain of their programming commitments.
|
|
Subsequently, the Commission conducted studies of the financial and audience characteristics of radio stations in border markets and small markets. The Canadian Association of Broadcasters (CAB) also submitted recommendations.
|
|
After consideration of the findings of the studies, as well as the recommendations submitted by the CAB, the Commission has established the following guidelines, which it will now use to assess applications for programming flexibility.
|
|
II. Guidelines for Border Market Stations
|
|
a) Flexibility Guidelines
|
|
The Commission will use the following guidelines for the purpose of assessing applications for programming flexibility submitted by licensees of stations serving border markets:
|
|
1. Substantial tuning to U.S. stations in the market.
|
|
The Commission will consider a share of 20% tuning or more to U.S. stations receivable over-the-air as indicative of "substantial tuning".
|
|
2. Unprofitability of the market.
|
Consistent with the procedures set out in Public Notice CRTC 1991-74 entitled Radio Market Policy, the Commission will measure profitability according to the average profit before interest and taxes (PBIT) of all commercial stations in the market over the preceding 5 years.
|
|
In addition, the Commission will take into account the economic impact that any new station(s) may have on the overall profitability of the market. The Commission will generally consider a station that has been in operation for less than five years to be a new station.
|
|
b) Areas of Programming Flexibility
|
|
The Commission may be prepared to grant flexibility with respect to the level of hits and the maximum repeat factor to the licensees of FM stations in border markets that meet these guidelines. It may also allow the licensees to decrease their music list size, change their vocal-to-instrumental ratio or increase the allowable amount of commercial content. The Commission, however, will not likely grant flexibility with respect to station formats or requirements for French-language vocal music.
|
|
The Commission will generally grant reductions in spoken word programming only in those cases where applicants can demonstrate that it is essential to the station's competitive position vis-à-vis U.S. stations.
|
As stated in Public Notice CRTC 1990-111, flexibility regarding Canadian content will not generally be accorded except for the licensees of AM and FM stations in border markets where exceptional circumstances are present, such as those identified in Public Notice CRTC 1984-233 entitled Windsor Radio Review.
|
The Commission maintains the position expressed in Public Notice CRTC 1984-233, that in Windsor and other border markets that are greatly affected by the presence of U.S. signals, the Commission's objectives "will be achieved by programming services that reflect a firm Canadian orientation in their approach to the provision of spoken word and music programming." The Commission will, therefore, expect applicants proposing a reduction in spoken word programming and/or Canadian content to demonstrate how they will continue to provide identifiably Canadian programming services.
|
|
III. Small Market Stations
|
|
a) Flexibility Guidelines
|
|
The Commission will use the following guidelines for the purpose of assessing applications for programming flexibility from the licensees of stations in small markets:
|
|
1. Population of less than 100,000 in the market, based on Statistics Canada population census data.
|
|
2. Unprofitability of the market. As will be the case for border markets, the Commission will measure profitability according to the average PBIT of all commercial stations in the market over the preceding 5 years.
|
|
In addition, the Commission will take into account the economic impact that any new station(s) may have on the overall profitability of the market. The Commission will generally consider a station that has been in operation for less than five years to be a new station.
|
|
The Commission may also take into account such factors as the location of the community in relation to others and the amount of out-of-town tuning on the market's financial situation.
|
|
b) Areas of Programming Flexibility
|
|
The Commission may be prepared to grant flexibility with respect to the level of hits and the maximum repeat factor to the licensees of FM stations in small markets that meet these guidelines. It may also allow licensees to decrease their music list size, change their vocal-to-instrumental ratio or increase the allowable amount of commercial content.
|
As stated in Public Notice CRTC 1990-111, the Commission will not likely be prepared to accord flexibility with respect to Canadian content and spoken word to FM licensees operating in small markets. Nor will flexibility likely be granted with respect to station formats or requirements for French-language vocal music.
|
|
Further, the Commission will not likely allow reductions in Canadian content requirements for AM stations operating in small markets.
|
|
IV. Applications for Flexibility: Areas to be Addressed by Applicants Serving Border Markets and Small Markets
|
|
The onus will be on the licensee, upon application to the Commission, to demonstrate why exceptions to normal programming requirements are warranted for each of its proposals.
|
|
Applicants whose stations serve border markets or small markets will also be expected to demonstrate how:
|
|
i. Each of the proposed changes will help the competitive situation of the station;
|
|
ii. The station will continue to serve the particular needs and interests of the community;
|
|
iii. The proposed changes will not cause undue harm to local AM broadcasters and AM and FM broadcasters in neighbouring communities; and
|
|
iv. In the case of licensees of border market stations that are proposing reductions to Canadian content and/or spoken word, the station will remain an identifiably Canadian service.
|
|
V. "First Radio Service" FM Stations
|
|
There are several communities in which the FM station licensed to serve the community is essentially the only station receivable. Before the recent amendments to the Radio Regulations, 1986 arising from the FM policy review, such stations were licensed as "First Radio Service FM Licences".
|
|
The Commission will adopt a more flexible approach with respect to such first service stations because concerns about diversity of service within the market and the impact of such flexibility on AM stations are not present in these cases.
|
|
The Commission may grant the same flexibility to licensees of first service stations as it does to AM station licensees with respect to music use indicators, format and advertising content levels. The primary consideration with respect to first radio service stations will be maintenance of the best possible service to the community.
|
|
The Commission, however, will not likely grant flexibility to licensees of first service stations with respect to Canadian content, spoken word and French-language vocal music.
|
|
Allan J. Darling
Secretary General
|
|
|
|