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ARCHIVED - Decision CRTC 2000-275

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  Decision CRTC 2000-275
  Ottawa, 28 July 2000
  Dufferin Communications Inc.
Orangeville, Ontario – 199910188
  31 January 2000 Public Hearing
in Toronto
  Approval of a licence amendment for CIDC-FM – relocation of transmitter and decrease in power

1.

The Commission approves the application by Dufferin Communications Inc. to amend the broadcasting licence for CIDC-FM Orangeville by relocating the transmitter from a site 6 km west of Orangeville's town hall to a site 11 km east of the town hall, and by decreasing the transmitter's effective radiated power from 50,000 watts to 30,700 watts.

2.

The licence amendment approved herein will shift the station's 3 mV/m signal contour (hence its principal market area) in an easterly direction towards Toronto. The population resident within the new 3mV/m contour will expand the size of the station's potential audience from 153,600 to approximately 668,200 individuals. These figures represent 3.3% and 14.5%, respectively, of the total population of the Toronto Central Market Area (CMA).

3.

The technical changes are essentially the same as those proposed by Dufferin in an earlier application denied by the Commission in Decision CRTC 98-141. In that decision, the Commission noted the applicant's argument that it required increased access to the Toronto CMA to enable the station to protect itself against the potential negative financial impact that could result should other stations switch to formats competitive with CIDC-FM's "dance" format. The Commission also noted the opposing interventions filed by a number of Toronto radio broadcasters, including Shaw Radio Ltd., WIC Radio Ltd. and Rogers Broadcasting Ltd. The interveners had expressed the view that the application proposed a significant change in CIDC-FM's principal market area, but was based on a hypothetical competitive scenario that did not then exist. The 1998 decision denying the application went on to state the following:
 

The Commission has traditionally considered CIDC-FM as external to the [Toronto CMA]. In past decisions, the Commission has stated concern over possible loss of the station's local Orangeville programming orientation but has also recognized the impact of lost tuning to out-of-market stations. In this case, the Commission agrees with the interveners that these applications would result in a significant change in CIDC-FM's principal marketing area. The Commission also notes the absence of any demonstrated current financial hardship or any technical impediment with respect to CIDC-FM's ability to provide a reliable service to its currently authorized service area. In fact, the applicant's own projections show its service continuing to generate substantial profit even in the event of a denial of these applications.

4.

At the hearing earlier this year in Toronto, Dufferin argued that the station's financial circumstances justify approval of its current application. Regarding the Commission's traditional consideration of CIDC-FM as being external to the Toronto CMA, the applicant explained that the CMA for any given community is defined by the Bureau of Broadcast Measurement (BBM). Although the BBM did, at one time, report Orangeville as a separate market, Dufferin noted that this has not been the case for several years. Dufferin claimed that the inclusion of Orangeville within the Toronto CMA has meant that agencies selling national and regional advertising have gradually turned away from CIDC-FM in favour of Toronto-based stations whose audiences are larger than its own and whose signals are available in the CIDC-FM coverage area.

5.

Dufferin's concern, as presented in its previous application, had been that CIDC-FM could face increased competition should another station elect to operate in a musical format similar to its own. At the Toronto hearing, the applicant noted that this, in fact, occurred in February 1999 when CISS-FM Toronto changed its music format from "new country" to "contemporary hit radio". According to the applicant, this format change has been largely responsible for substantial declines in CIDC-FM's advertising revenue sales and audience.

6.

An intervention to Dufferin's application was filed jointly by Shaw, WIC and Rogers. As in 1998, these Toronto radio broadcasters opposed the application. They argued that the resultant shift in coverage would turn CIDC-FM into a Metropolitan Toronto station. At the hearing, the interveners stated that their opposition was not due to concern for the impact that the proposed technical amendment might have on their radio stations. Rather, their objection was based on the principle that Dufferin should not be permitted to transform itself into a Toronto station without having a licence to do so. They considered that such a licence should only be granted after a competitive process for a new Toronto station.

7.

In response, Dufferin argued that its access to a larger potential audience was a matter that would have no impact on its commitment to maintain a local Orangeville orientation in its programming.
 

Nothing will cause CIDC-FM to shift its focus away from Orangeville…. CIDC-FM serves Orangeville with good programming, local news, traffic, weather and a strong presence in community activities…. To prosper, this town of 23,000 inhabitants must reach out to the overall CMA and beyond in order to attract a flow of commerce to the area…. [CIDC-FM provides] Orangeville with a vehicle to encourage and attract consumers, visitors, new home buyers and industry to the area.

8.

These comments were echoed in a supporting intervention filed by The Corporation of the Town of Orangeville and presented at the hearing by Ms Nancy Huether:
 

[CIDC-FM] is the "Voice of Orangeville" in the Toronto CMA. CIDC-FM give[s] Orangeville the opportunity to communicate its comparative advantages…to the rest of the Toronto CMA…. The [local highway] conditions… important to this large number of people commuting in and out of Orangeville, are for the most part ignored by Toronto stations…. It is in Orangeville's best interest that CIDC retain its listenership throughout the Toronto CMA. The Town of Orangeville supports the efforts of [CIDC-FM] and the necessity to improve its signal within the Toronto CMA.

9.

The Commission notes that there was a decrease in listening to CIDC-FM by persons of age 12+ in the Toronto CMA of approximately 24% between the Fall of 1998 and the Fall of 1999. The Commission also notes that, following the February 1999 change in CISS-FM's format, CIDC-FM did experience a decline in advertising revenues when compared to the levels earned prior to that event.

10.

In the Commission's view, other factors may have contributed to these results. For example, the consolidation of radio station ownership in the Toronto market that has occurred as a consequence of the commercial radio policy announced by the Commission in April 1998 (Public Notice CRTC 1998-41) has clearly created a more competitive radio broadcasting environment overall. At the same time, the Commission finds it likely that at least some of the decline in CIDC-FM's audience and revenues is directly attributable to increased competition from CISS-FM. In reaching its decision, the Commission has taken these factors into account, as well as the possible impact the station might experience as a consequence of two recent Commission decisions. One decision approved a new "top 40/contemporary hits" FM station in Barrie (Decision CRTC 2000-143 dated 5 May 2000), and another approved a new "urban music" FM station in Toronto (Decision CRTC 2000-203 dated 16 June 2000).

11.

Based on the available evidence, the Commission is convinced that Dufferin, in keeping with its mandate and responsibilities as a licensee, has maintained a local Orangeville orientation in its programming and will continue to do so in the future. Moreover, the Commission is satisfied that the larger potential audience it will enjoy as a consequence of the technical amendment approved herein will enable the licensee to strengthen the local service it provides residents of Orangeville and the surrounding area, and increase its contribution to the Canadian broadcasting system.

12.

The Commission thus reminds the licensee that, at the time of licence renewal, it intends to review what would constitute an appropriate contribution by CIDC-FM, particularly to the support of Canadian talent, taking into account the increased size of the station's potential audience.

13.

The Commission thanks all who participated in the process held to consider this application, whether through their interventions or through their attendance at the public hearing.
  Secretary General
 
This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca 
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