ARCHIVED -  Decision CRTC 94-169

Decision

Ottawa, 21 April 1994

Decision CRTC 94-169

Telemedia Communications Ontario Inc.

Bracebridge, Ontario - 931476600

Licence amendment related to CFBG-FM

Pursuant to Public Notice CRTC 1993-165 dated 25 November 1993, the Commission approves the application by Telemedia Communications Ontario Inc. (Telemedia), to amend the Promise of Performance for CFBG-FM Bracebridge, by increasing the weekly maximum level of hits from less than 50% to 100%.

Telemedia's proposal constitutes an exemption to the Commission's FM Policy outlined in CRTC Public Notice 1990-111 dated 17 December 1990, which requires FM stations to restrict their use of hits to less than 50% of all music selections broadcast each week. The applicant has requested flexibility based on Public Notice CRTC 1992-3 "Guidelines for Assessing Applications for Programming Flexibility From Licensees of Radio Stations in Border Markets and Small Markets" (the Guidelines). The Guidelines stipulate, as criteria for small market stations, a market population of less than 100,000 and unprofitability of the market.

In support of its request, Telemedia noted that Bracebridge has a population of less than 100,000 and that the station has been unprofitable for the past 5 years, criteria which would qualify CFBG-FM for consideration under the Guidelines. Telemedia also noted that the station is in the process of automating to ensure cost efficiencies, thereby entailing the purchase of additional costly material to accommodate the non-hits. It also stated that CFBG-FM's coverage area is "flooded with signals from Toronto and Simcoe County".

An intervention in opposition to this application was submitted by CHAY Limited, licensee of CHAY-FM Barrie. CHAY Limited stated that an approval of this application would have a negative impact on its operations and on the operations of other FM broadcasters serving the Muskoka/Huntsville area.

In response to the intervention, Telemedia stated that without the all hit status, an ever increasing amount of money must be spent on additional equipment and staff hours to provide the 51% non-hit content. Approval would enable it to reduce expenses and staff hours, which in turn would reduce its debt, enabling it to stay in business and provide a vital service to the community.

The Commission notes that CFBG-FM has recorded losses before interest and taxes over the past five years. Further, the Commission notes that the total population within the Bracebridge central market area, as defined by the Bureau of Broadcast Measurement (BBM), is less than 100,000. For these reasons, the Commission is satisfied that Telemedia's request meets the Guidelines.

The Commission notes that, in Public Notice CRTC 1993-121 entitled "Local Programming Policy for FM Radio -Definition of a Single-Station Market", CFBG-FM is a "single-station" market. Furthermore, based on the BBM Fall 1993 report, while out-of-market signals CHAY-FM and Rock 95, Barrie, account for a combined 34% share of hours tuned in Bracebridge, CFBG-FM has no measurable audience in Barrie. Approval of this application, therefore, will have no impact on those stations in their central market.

The Commission is of the view that the only station which may be affected by this approval is CFBK-FM Huntsville, which has also applied for a similar 100% hit level under the Guidelines. The Huntsville application is the subject of Decision CRTC 94-170, released today.

The Commission has carefully considered the views of the applicant and of the intervener. Based on the evidence available to it, the Commission is satisfied that approval of this application will have little, if any, impact on other radio stations operating in the area.

The Commission also acknowledges the intervention in support of this application submitted by Playland Broadcasting Limited, licensee of CKLP-FM Parry Sound.

Allan J. Darling
Secretary General