ARCHIVED - Decision CRTC 2000-142
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Decision CRTC 2000-142 |
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Ottawa, 5 May 2000 |
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Affinity Radio Group Inc. Hamilton/Burlington, Ontario – 199908050 |
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| Douglas Kirk and Rae Roe | |
| Hamilton/Burlington, Ontario – 199812722 | |
| NewCap Inc. | |
| Hamilton/Burlington, Ontario – 199908100 | |
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6 December 1999 Public Hearing National Capital Region |
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"New adult contemporary/smooth jazz" FM station in Hamilton
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At a public hearing in the National Capital Region, the Commission considered applications for new FM radio stations to serve the Hamilton/Burlington area. The applications were by Affinity Radio Group Inc., Douglas Kirk and Rae Roe (OBCI), and NewCap Inc. The Commission has approved the application by Douglas Kirk and Rae Roe. The new station will offer a "new adult contemporary/smooth jazz" musical format. |
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The Commission approves the application by Douglas Kirk and Rae Roe, on behalf of a company to be incorporated (Kirk/Roe) for a broadcasting licence to carry on an English-language FM radio programming undertaking at Hamilton/Burlington. It denies the applications by Affinity Radio Group Inc. (Affinity) and Newcap Inc. (Newcap). All three applicants proposed to use the 94.7 MHz frequency. |
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Subject to the requirements of this decision, the Commission will issue a licence expiring 31 August 2006. The licence will be subject to the conditions specified in this decision and in the licence to be issued. |
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The public process |
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In December 1998, Kirk/Roe submitted an application for a licence to operate a new FM radio station to serve Hamilton/Burlington. The applicant proposed to serve the market on the 94.7 MHz frequency, with a musical format it described as "new adult contemporary/smooth jazz." On 15 April 1999, the Commission issued Public Notice CRTC 1999-63 announcing receipt of the application, and calling for applications from other parties wishing to obtain a licence to operate a new radio station in Hamilton/Burlington. |
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In response to Public Notice 1999-63, Affinity and NewCap also filed applications for new radio stations to serve Hamilton/Burlington using the same 94.7 MHz frequency. Affinity proposed to establish a "new country" musical format, while NewCap proposed to offer an "adult contemporary/modern rock" format. The three applications were considered at the 6 December 1999 public hearing in the National Capital Region. |
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In April 1998, the Commission adopted its new Commercial Radio Policy 1998 (Public Notice CRTC 1998-41). Public hearings in May and June 1999 were among the first at which the Commission considered competing applications for new radio licences under the new policy. At those hearings, the Commission discussed with applicants various factors relating to the implementation of the policy, especially those factors that the Commission should consider when assessing competitive applications, in light of the new policy and the public interest. |
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The Commission considers that, while their importance will vary depending on the specific circumstances of the market concerned, there are four main factors that are usually relevant to the evaluation of applications. These are |
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The Commission discussed these factors with the three applicants at the public hearing, and considered them in reaching its determination. |
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The Hamilton/Burlington radio market |
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Six commercial radio stations, three AM and three FM, currently serve the Hamilton/Burlington market. |
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Telemedia Radio Inc. owns CKLH-FM and CKOC. WIC Radio Limited (WIC) owns CJXY-FM and CHML. |
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Burlington Broadcasting Inc., which is controlled by Shaw Communications Inc. (Shaw), operates CING-FM. The Commission is, however, currently considering an application by Shaw to purchase the two Hamilton stations owned by WIC. If WIC’s application were approved, Shaw would control three stations in the market. |
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Affinity owns the remaining station, CHAM. |
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Currently, Hamilton stations receive about half of the radio tuning in the market, with the remainder going to out-of-market stations. Most of this out-of-market tuning goes to stations from Toronto. |
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The new station |
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After carefully reviewing the three applications, the Commission concludes that the application by Kirk/Roe represents the best use of the 94.7 MHz frequency. |
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Quality of the application |
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The Commission considers that the licensee has presented a high quality application that will make a significant contribution to the development of Canadian talent. The business plan is predicated on the station offering "new adult contemporary/smooth jazz" music. Under this programming strategy, the new station will provide exposure for a broad group of Canadian contemporary jazz artists who currently receive little, if any, airplay on Canadian commercial stations. The licensee listed some Canadian artists whose music would typically be played by the station, including Carol Welsman, Diana Krall, Warren Hill, John Chiasson, Shirley Eickhardt and Brian Hughes. |
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Brian Hughes is a Canadian contemporary jazz guitarist whose music is played by American new adult contemporary/smooth jazz stations. At the hearing, he noted that airplay on such stations can have a tremendous positive effect on a jazz artist's career. |
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In addition to providing on-air exposure for new Canadian artists, the licensee made a commitment to spend a minimum of $25,000 a year on direct expenditures related to Canadian talent development. It further indicated that, when annual increases to the minimum commitment are factored in, its direct expenditures for Canadian talent development would total $139,000 over five years. It is therefore a condition of licence that the licensee devote a minimum of $25,000 to direct expenditures related to Canadian talent development during each broadcast year; and ensure that its total contributions amount to no less than $139,000 over the first five broadcast years of the licence term. |
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The applicant must ensure that all funds expended meet the Commission's criteria for generally accepted CTD expenses set out in Appendix I of Public Notice CRTC 1990-111 An FM Policy for the Nineties. |
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Kirk/Roe indicated that the focus of its Canadian talent development program will be on contributions to contemporary jazz festivals and year-round events and concerts featuring Canadian artists. |
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In addition to the condition of licence with respect to Canadian talent development set out above, the licensee will also be subject to conditions related to local programming and the use of hit material. As noted in Public Notice CRTC 1999-137, standard conditions of licence are now set out only on the licence form. |
| Diversity of news voices | |
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Although the new station’s format will be based on music, it will also provide a news service focusing on local events. The licensee considered that the provision of information with a local flavour was extremely important, stating: "…local radio news these days is really embedded in that local community. That is why people listen to you, because you are showing them – you are giving them something that they are not hearing on other stations out of the market." |
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The licensee indicated it will establish a newsroom, and that local news will be broadcast in prime listening periods. Traffic, weather and other information will be provided throughout the day. The new station will thus provide a new local news voice for Hamilton/Burlington. |
| Impact on the market and other stations | |
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The Commission considers that this station will not have a direct negative impact on existing stations in the market. It is of the view that the revenue projections of the applicant can be accommodated, to a great extent, by the projected annual growth of radio advertising revenue in the Hamilton/Burlington market. In addition, the licensee’s approach to programming will be quite different from that of any existing station. It is therefore unlikely that the new station will have a significant impact on the audiences achieved by the market’s existing stations. The Commission therefore considers that the new station will not worsen the competitive position of any of the stations now serving Hamilton/Burlington. |
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Technical matters |
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As proposed, the new FM station will operate on the frequency 94.7 MHz (channel 234B) with an effective radiated power of 1,880 watts. |
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The licence will only be issued and effective when the new station is ready to begin operation. When the licensee has completed construction and is prepared to commence operation, it must advise the Commission in writing. If the station is not constructed and ready to operate within 12 months of today’s date, extensions to this time frame may be granted provided that the licensee applies in writing to the Commission before the 12-month period or any extension of that period expires. |
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The Department of Industry has advised the Commission that this application is conditionally technically acceptable. The Department will only issue a broadcasting certificate once it has determined that the proposed technical parameters will not create any unacceptable interference with aeronautical NAV/COM services. |
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In accordance with section 22(1) of the Broadcasting Act, the Commission will only issue the licence and grant the authority to operate when it receives notification from the Department of Industry that its technical requirements have been met, and that a broadcasting certificate will be issued. |
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Other matters |
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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. |
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The Commission acknowledges the interventions submitted concerning this application and has considered all of them in reaching its decision. |
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Related CRTC documents
• Public Notice 1999-137 – New licence form for commercial radio stations |
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• Public Notice 1998-41 – Commercial Radio Policy 1998 |
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Secretary General |
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| This decision is to be appended to the licence. It is available in alternative format upon request, and may also be viewed at the following Internet site: www.crtc.gc.ca |
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