ARCHIVED -  Decision CRTC 95-555

Decision

Ottawa, 14 August 1995

Decision CRTC 95-555

Telemedia Communications Ontario Inc.

North Bay, Ontario - 950094300

Licence renewal and amendments for CKAT-FM North Bay

Following a Public Hearing in the National Capital Region beginning on 15 May 1995, the Commission renews the broadcasting licence for CKAT-FM North Bay from 1 September 1995 to 31 August 1997, subject to the conditions in effect under the current licence, as well as to those conditions specified in this decision and in the licence to be issued.

This term will enable the Commission to assess at an early date the licensee's compliance with the Radio Regulations, 1986 and its conditions of licence.

In Notice of Public Hearing CRTC 1995-4 dated 17 March 1995, the Commission advised Telemedia Communications Ontario Inc. (Telemedia) that it would be expected to show cause at the May 1995 hearing why the Commission should not issue a mandatory order requiring the licensee to comply with its condition of licence relating to the broadcast of hit material. That condition restricts the use of such material to less than 50% of all musical selections broadcast during the broadcast week, as required under the Commission's FM Policy set out in Public Notice CRTC 1990-111 and reiterated in Public Notice CRTC 1995-60 dated 21 April 1995.

The current three-year licence term for CKAT-FM was imposed in Decision CRTC 92-190 dated 27 March 1992, in response to non-compliance related to the excessive use of hit material during the previous licence term. The Commission noted at that time, that the licensee had established procedures designed to enable it to comply with the Commission's requirements.

Consistent with its monitoring plan, the Commission conducted an analysis of the programming of CKAT-FM for the week of 6 to 12 March 1994. The analysis revealed that the licensee once again had failed to comply with its condition of licence requiring a weekly maximum hits level of less than 50%. Following consultation with the licensee, the level of hits for the week in question was determined to be 54.8%. The licensee indicated that, during the week in question, CKAT-FM had been implementing a new music flow schedule.

At the hearing the licensee outlined several measures it had implemented with respect to compliance. These measures include tracking of the "hit to non-hit ratio" on a daily basis, a weekly review of the hit status of musical selections, compilation of a status report every Friday to permit any necessary adjustments to be made during weekend programming, and the daily reconciliation of music lists to avoid the inclusion, in daily totals, of musical selections that were programmed but not broadcast.

The Commission notes the licensee's admission of non-compliance. It also notes the licensee's statement at the hearing acknowledging that, if these procedures are not followed carefully by the station staff members, there is no firm assurance that CKAT-FM will remain in compliance.

The Commission views with grave concern the licensee's failure to comply with the condition of licence regarding the broadcast of hit material. It intends to monitor the licensee's performance closely during the new licence term, and directs the licensee to take all necessary measures to ensure that all conditions of licence are respected at all times. The Commission reiterates that it remains a condition of CKAT-FM'S licence that the licensee maintain the level of hits below 50% of all music selections broadcast during the broadcast week (as defined in the Radio Regulations, 1986).

Moreover, it is the Commission's conclusion that the licensee has failed to show cause why a mandatory order should not be issued, requiring the licensee to comply with the condition of licence related to the use of hit material. The Commission's decision in this matter reflects the seriousness with which it views the licensee's repeated and persistent failure to comply with its FM Promise of Performance related to the broadcast of hit material, adherence to which is a condition of licence. The Commission has also considered the assurances offered by the licensee at the time of its last licence renewal, that it would take all measures necessary to remain in compliance at all times.

Accordingly, the Commission has decided to issue Mandatory Order 1995-1 set out in the appendix to this decision. The mandatory order will be in effect for the period of the new licence term.

The Commission will file this mandatory order with the Federal Court. As set out in subsection 13(1) of the Broadcasting Act, the Commission's mandatory order will then become an order of the Federal Court and will be enforceable in the same manner as an order of the Court. According to the Federal Court Rules, anyone who disobeys an order of the Court may be found guilty of contempt of court.

Other matters

As part of this application, the licensee requested permission to amend its licence in order to change the program format from Group II - Country and Country-oriented to Group I - Pop, Rock and Dance, and to reduce the annual amount of direct contributions to Canadian talent development from $9,600 to $8,000. In Decision CRTC 95-122 dated 30 March 1995, the Commission denied identical requests by this licensee, based on its documented and repeated non-compliance with respect to the use of hits.

Format change

Subsequent to receipt of the current application, the Commission announced in Public Notice CRTC 1995-60 dated 21 April 1995, that it would remove the FM format distinction between Group I- Pop, Rock and Dance and Group II - Country and Country-oriented, while retaining the Specialty format. This change now permits FM stations to move freely within virtually any popular music-based grouping without having to make an application to the Commission. The current application by Telemedia for a format change was noted at the hearing as an application for the format flexibility offered in Public Notice CRTC 1995-60. The flexibility requested by Telemedia is consistent with the Commission's policy, as set out in that document, and is accordingly approved. Since the Specialty format remains, it is a condition of licence that CKAT-FM not be operated within the Specialty format, as defined in Public Notice CRTC 1995-60, or as amended from time to time by the Commission.

Reduction in Canadian talent development contributions

An intervention to this aspect of the application was submitted by the Canadian Independent Record Production Association (CIRPA), expressing concern that Telemedia proposed to remove its financial commitment to FACTOR, and that the reduction in overall financial commitment was not justified. In response, the licensee explained that the FACTOR contribution remains unchanged, and that the apparent reduction is in fact a reassignment of some direct costs to CKAT-FM's sister AM station CFCH North Bay. The combined annual direct costs for the two stations would, in fact, increase by $1,000 annually.

The Commission is satisfied with the licensee's response to the concerns raised and its commitment to exchange between the two stations their respective responsibilities for specific Canadian talent development initiatives. The Commission has no objection to the
reassignment of direct costs between CFCH and CKAT-FM, and accordingly approves the licensee's request.

The Commission reaffirms the particular importance it attaches to the development of Canadian talent and is satisfied with the annual budgets and the initiatives proposed by the licensee in this respect. It encourages the licensee, during the new licence term, to continue its efforts towards the support, development and on-air exposure of local and regional talent.

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. In this regard, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

It is a condition of licence that the licensee adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) "Sex-Role Portrayal Code for Television and Radio Programming", as amended from time to time and accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council.

Allan J. Darling
Secretary General

APPENDIX TO DECISION CRTC 95-555

Mandatory Order 1995-1

Telemedia Communications Ontario Inc., (Telemedia), the licensee of CKAT-FM North Bay, Ontario, is hereby ordered, pursuant to subsection 12(2) of the Broadcasting Act to comply, at all times within the term of the licence granted in Decision CRTC 95-555 dated 14 August 1995 with the condition of its licence as set out below:

The licensee shall maintain the level of hits below 50% of all music selections broadcast during the broadcast week (as defined in the Radio Regulations, 1986).