ARCHIVED - Decision CRTC 2000-143
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Decision CRTC 2000-143 |
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Ottawa, 5 May 2000 |
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Rock 95 Broadcasting (Barrie-Orillia) Ltd. |
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Barrie, Ontario – 199908399 |
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Larche Communications (Barrie) Inc. |
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Barrie, Ontario – 199901575 |
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CHUM Limited/Limitée |
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Barrie, Ontario – 199909066 |
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6 December 1999 Public Hearing National Capital Region |
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New Top 40/Contemporary hits FM radio station in Barrie |
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At a public hearing in the National Capital Region, the Commission considered applications for new FM radio stations to serve Barrie. The applications were by Rock 95 Broadcasting (Barrie-Orillia) Ltd., Larche Communications (Barrie) Inc., and CHUM Limited. The Commission has approved the application by Rock 95. |
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The Commission approves the application by Rock 95 Broadcasting (Barrie-Orillia) Ltd. (Rock 95) for a broadcasting licence for an English-language FM radio programming undertaking at Barrie. It denies the competing applications by Larche Communications (Barrie) Inc. and CHUM Limited. |
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Subject to the requirements of this decision, the Commission will issue a licence expiring 31 August 2006. This 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 Public Notice CRTC 1999-79, the Commission announced the receipt of an application by Larche Communications (Barrie) Inc., for a new FM radio station to serve Barrie. That notice called for applications from other parties wishing to obtain a licence to serve Barrie. |
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In response to the call, Rock 95 and CHUM Limited also filed applications for new FM radio stations in Barrie. The three competing applications were considered at the 6 December 1999 public hearing. |
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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 of 1999 were among the first at which the Commission considered competing applications for new radio licences under that new policy. At those hearings, the Commission discussed with applicants various factors relating to the implementation of the policy, especially those 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 competing applications: |
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The Commission discussed these factors with the three applicants at the public hearing in the National Capital Region. |
| The Barrie market | |
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In Decision CRTC 2000-87, the Commission approved a number of applications, among which was the purchase of Barrie radio station CIQB-FM, by 5191989 B.C. Ltd., a wholly-owned subsidiary of Corus Entertainment Inc., the parent company of Shaw Radio Ltd., from Power Broadcasting Inc. As a result, the existing Shaw station CHAY-FM and CIQB-FM are now under common ownership. |
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The Barrie radio market therefore currently consists of three stations owned by two different ownership groups. Corus Entertainment owns CIQB-FM, which offers an Adult Contemporary musical format, and CHAY-FM, a "Soft Adult Contemporary" format. Rock 95 operates CFJB-FM in an Adult-Oriented Rock format. |
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Approximately 60% of the Barrie radio tuning is to out-of-market radio stations, with Toronto stations collectively attracting 44% of the Barrie tuning. |
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The new station |
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The Commission considered all three of the applications in light of the four factors set out earlier, and is satisfied that the Rock 95 application represents the best proposal to serve Barrie. |
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The new station will offer a Top 40 / Contemporary Hits musical format, targeted to an audience aged 12 to 24. |
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The licence will be subject to conditions related to levels of local programming, Canadian content, financial support for Canadian talent, and the use of hit material on the new station. These conditions are either set out below or in the licence to be issued. As noted in PN 1999-137, standard conditions of licence are now set out only on the licence form. |
| Quality of the application | |
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The Commission is satisfied that Rock 95 has presented a high-quality application, taking into account the business plan and contributions to programming format diversity, Canadian content commitments, plans for the reflection of the community and commitments for the development of Canadian talent. |
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Rock 95 presented evidence at the hearing that as much as 80% of teen listening in Barrie is to out-of-market stations. The Commission is satisfied that a business plan predicated on repatriating that audience is reasonable, and that the Rock 95 proposed format is distinct from the formats currently available in Barrie. |
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The application proposed that at least 37% of all general popular (Category 2) music played on the new station, 24 hours a day, would be Canadian. The Commission notes that this proposal exceeds the regulatory minimum of 35%. It is a condition of licence that the licensee, as an exception to the percentage of Canadian musical selections required under section 2.2(8) of the Radio Regulations 1986, in a broadcast week, devote 37% or more of its musical selections from content category 2 to Canadian selections broadcast in their entirety. The Commission notes that a broadcast week does not include the midnight to 6:00 a.m. period. |
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Also as part of its application, Rock 95 described a variety of ways in which the new station would reflect the local community. Local musical talent will be highlighted in two separate weekly programs. One will feature the latest Canadian releases, with an emphasis on promoting new music by local artists. The other program will focus on the music of Native people. News and sports coverage will reflect the local community. |
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The final factor in the assessment of the quality of this application is the proposed plan for Canadian talent development (CTD). The CTD plans of Rock 95 were divided into three parts: a "New Artist" program; proposals related to Aboriginal radio; and the salary of a CTD coordinator. |
| The "New Artist" program | |
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The applicant proposed to spend a minimum of $47,000 annually ($329,000 over seven years) on a multi-part "New Artist" program to promote and develop Canadian musical talent. As part of the program, Rock 95 will choose three local musical groups annually. The bands will receive funds to produce two songs each for a yearly compilation CD. Each band will receive 500 copies of the CD, the CD will be distributed to record companies and other radio stations across Canada, and the music will be played on both of Rock 95's Barrie radio stations. |
| 20. | Local bands will also be showcased live at a local music festival, and live concerts at local venues will be taped and broadcast on a bi-monthly basis. In addition, the licensee will create and maintain an Internet web site dedicated to Central Ontario musicians, to be used as a resource for local bands. This web site will be linked to, but separate from, the station's own website. |
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It is a condition of licence that the licensee shall make annual minimum direct contributions as described above, of $47,000. |
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In addition to the costs associated with the initiatives discussed above, Rock 95 also committed to allocate a minimum of $6,000 annually, or $42,000 over the licence term, to industry funds such as FACTOR. Consistent with this commitment, it is a condition of licence that the licensee allocate a minimum of $3,000 each year to FACTOR, and $3,000 each year to either FACTOR or another industry fund involved with the development of Canadian talent. The Commission notes that the total yearly contribution is twice the amount required for radio stations in communities of the same size as Barrie, participating in the funding plan sponsored by the Canadian Association of Broadcasters. |
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The Commission reminds the licensee that all funds expended must meet the Commission's criteria for generally accepted, direct Canadian talent development, as set out in Public Notice CRTC 1990-111. |
| Aboriginal radio initiatives | |
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The second set of initiatives that the applicant proposed as CTD relates to support for one licensed and four proposed Aboriginal radio stations in the Barrie area. (The licensed undertaking was the subject of Decision CRTC 2000-88, in which the Commission approved an application by Isadore H. Peltier, on behalf of a corporation to be incorporated to be known as Chimnissing Communications, for a type B native radio station to serve Christian Island, Ontario.) |
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Rock 95 plans to support the Christian Island station and the four other proposed native undertakings by donating $25,000 in technical facilities to each station. In addition, it plans to expend approximately $12,000 annually in operating support for each station, and approximately $5,000 per station each year for training and paid internships. |
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The Commission has assessed this initiative and has concluded that it does not directly develop Canadian talent, in that the funds will be dedicated to the establishment of radio stations. Nonetheless, this initiative would contribute to the fulfillment of paragraph 3(1)(o) of the Broadcasting Act, and as such the Commission considers that it is beneficial to the broadcasting system as a whole. |
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Only one of the five stations to be assisted is currently licensed and the licensing of the other four is dependant upon a future public process that cannot be predetermined. For this reason, the Commission approves the expenditure of $116,280 over the licence term (one-fifth of the total identified for the support of Aboriginal radio). The remainder of $465,120 over the licence term is also approved, pending the licensing of the other four stations. Should those undertakings not be licensed, Rock 95 is required to expend the same amount on other initiatives directed to benefit Aboriginal radio. Such alternate plans must be submitted for Commission approval. |
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It is therefore a condition of licence that Rock 95 expend, at a minimum over the licence term, |
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CTD coordinator |
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Rock 95's third CTD commitment is $11,000 per year for a part-time CTD coordinator. The responsibilities of the coordinator would include the new artist program, the Aboriginal radio initiatives including training and internships, and as noted earlier, the development of an Internet web site dedicated to Central Ontario musical groups. |
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The Commission has approved salaries for such coordinators in the past as valid contributions to CTD, in cases where the salary forms a relatively small portion of the overall CTD commitment, and where the initiatives proposed would require significant time devoted to ongoing preparation or involvement by the coordinator in order that the initiatives be realized. The Commission is satisfied that, in this case, the duties of the coordinator would be significant and warrant the inclusion of the salary as a part of the overall CTD budget. It is therefore a condition of licence that the licensee expend, at a minimum, $11,000 in each year of the licence term for the salary of a part-time coordinator of Canadian talent development initiatives. |
| Impact on the market | |
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The Commission is confident that the Barrie market can support one additional radio station. It bases its determination on the strong revenue growth in the market over the past five years, projections of continued growth, the strong economy in the Toronto area, and the fact that all stations in Barrie are currently more profitable than the industry average. The Commission also notes that the population of Barrie is growing at a rate double the national average, and the findings of all applicants that market growth will accommodate a new station. |
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The Commission, however, does not believe that the Barrie market is capable of supporting more than one new entrant at this time, based on the fact that the combined profitability of the Barrie stations exceeded the national average for the first time only in 1999. |
| Competitive state of the market | |
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As noted earlier, the Barrie radio market has recently undergone a consolidation of ownership, with two of the three commercial FM stations in the market coming under common ownership. The Commission is satisfied that licensing a second Rock 95 station in Barrie will result in competitive balance in that market, with each of the two incumbents having ownership of two stations. |
| Diversity of news voices | |
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The diversity of news voices was not at issue in this proceeding, since all three applicants are currently operating radio stations receivable in the Barrie area. While there will thus be no net gain in the diversity of news voices resulting from this decision, the Commission notes Rock 95's statements that its stations would be Barrie's only locally owned and operated radio. The licensee also stated that, although the two stations would share facilities, the new station would have a separate news director and news staff, and the presentation and slant of the news on each station would be distinct. The Commission also notes that Barrie residents have access to a wide variety of news voices, with over 50 radio stations currently attracting tuning in the Barrie market. |
| Technical matters | |
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As proposed, the new FM station will operate on the frequency 107.5 MHz, channel 298C1, with an effective radiated power of 26,000 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. |
| 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 and has considered all of the interventions submitted with respect to each of these applications. |
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Related CRTC documents |
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• Public Notice 1999-137 – New licence form for commercial radio stations |
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• Public Notice 1998-41 – Commercial Radio Policy |
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| • Public Notice 1990-111 – An FM policy for the nineties | |
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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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