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Ottawa, 21 October 1993
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Decision CRTC 93-655
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Redmond Broadcasting Inc.
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St. Catharines, Ontario - 921932000
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Licence amendment related to CHRE-FM
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In Public Notice CRTC 1993-60 dated 5 May 1993, the Commission announced an application by Redmond Broadcasting Inc. (Redmond) for approval to amend the Promise of Performance for CHRE-FM St. Catharines, by increasing the maximum weekly use of hits from 50% to 85%.
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Redmond's request requires an exemption to the Commission's policy requiring FM stations to maintain the weekly level of hits below 50%, based on CRTC Public Notice 1992-3 "Guidelines for Assessing Applications for Programming Flexibility from Licensees of Radio Stations in Border Markets and Small Markets".
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The applicant stated that a level of hits of 85% would enhance the station's ability to compete with the many American stations that broadcast 100% hits in the same general format. The licensee added that "the proposed changes will not be harmful to other AM and FM stations".
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Interventions in opposition to this application were received from Armadale Communications Ltd. (Armadale), CHUM Limited (CHUM) and Westcom Radio Group Ltd. All three interveners indicated that they do not consider St. Catharines to be a border market, and that CHRE-FM, therefore, does not qualify for further flexibility. Another concern was that Redmond has not demonstrated or provided documentation to support its claim of unprofitability.
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Armadale and CHUM also expressed the opinion that, in view of the competitiveness in the area, providing CHRE-FM or other St. Catharines stations with additional flexibility, when the Commission has already introduced relaxed regulations, would give St. Catharines stations an unfair advantage over stations in adjacent markets.
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In its replies to the interventions, Redmond provided evidence to support its claim that St. Catharines is a border market. Redmond also provided a five-year summary of the losses experienced by CHRE-FM.
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The Commission has carefully considered the views of the applicant and of the interveners, and is satisfied that St. Catharines/ Niagara qualifies as a border market, based on the guidelines set out in CRTC Public Notice 1992-3. However, the Commission notes that the main competition for stations in the St. Catharines area is from out-of-market Canadian stations, not from foreign broadcasters. The Commission also notes that its recent relaxation of many radio programming regulations and policies regarding FM radio provides CHRE-FM and other border stations with enhanced flexibility to compete with non-Canadian stations. The Commission is of the view that approving this exemption would provide CHRE-FM with a programming advantage not available to the other FM broadcasters serving the St. Catharines/Niagara region.
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Accordingly, and for the reasons noted above, the application is denied.
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Allan J. Darling
Secretary General
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