ARCHIVED - Decision CRTC 2000-415

Decision CRTC 2000-415

Ottawa, 26 October 2000

Genex Communications inc.
Donnacona, Quebec - 199902820

27 June 2000 Public Hearing
in Montréal

Licence amendment for CKNU-FM

The Commission denies the licence amendment requesting authority to relocate the transmitter of CKNU-FM Donnacona from Donnacona to Val-Bélair, and to decrease the station's effective radiated power. The Commission also denies the licensee's application to delete CKNU-FM's condition of licence prohibiting it from soliciting advertising outside the Portneuf area.

The Commission considers that the licensee has failed to take all measures available to it to make the station profitable while providing a truly local service to the Portneuf area in keeping with its mandate.

Background

In January 1995 (Decision CRTC 95-9), the Commission issued a licence to La Coopérative du Courrier de Portneuf to operate a new radio station, CKNU-FM Donnacona. Because the new station's mandate was to provide the first truly local service in Portneuf, the Commission imposed a condition of licence restricting the solicitation of advertising by the station to the Portneuf area.

In November 1998 (Decision CRTC 98-502), the Commission authorized Genex Communications inc. (Genex) to acquire the assets and continue the operation of the station. At the time of the transaction, CKNU-FM was not profitable. Accordingly, Genex proposed no tangible benefits. It did, however, make a commitment to provide for the needs of the Portneuf area by broadcasting local news, public affairs and community service programming. The condition of licence concerning advertising solicitation was renewed at that time.

Reasons for appearance

Only six months after acquiring the station, Genex filed the current application for relief from the prohibition against soliciting advertising outside Portneuf, and for authority to move the transmitter from Donnacona to Val Bélair with a view to improving CKNU-FM's signal coverage in the Québec market.

Following public notification of the licensee's application, the Commission received opposing interventions from various broadcasters. The interveners' concern is essentially that the licensee would be abandoning the Portneuf market in favour of Québec, a market that, in their opinion, cannot support another station. They argue further that approval of the proposed amendments would be tantamount to issuing a licence to serve the Québec market without requiring the licensee to follow the Commission's licensing procedure. Finally, the interveners argue that the proposed amendments would create technical interference with the signals of the neighbouring stations.

In view of the interventions received, the Commission called the licensee to the hearing of 27 June 2000 to discuss the station's financial situation, its programming, the licensee's efforts to ensure achievement of the station's mandate, and the implications that the requested amendments might have for the station's primary role.

Financial situation of station

The licensee argues that, without approval of the proposed amendments, the station cannot become profitable. In the licensee's opinion, the ever-increasing appeal that programming from Québec and Trois-Rivières stations has to Portneuf residents has led to a decline in CKNU-FM's advertising sales contracts and revenues

At the hearing, however, the licensee acknowledged that it has not made a sufficient investment in developing a distinctive product that would attract a Portneuf audience, and that this fact, together with the competition from Québec stations, might account for the low listenership levels of CKNU-FM.

Programming

In order to improve the station's financial situation, the licensee has attempted to rationalize its expenditures. Programming quality has declined as a consequence.

For example, the Commission notes that, from the time Genex acquired CKNU-FM, there has been no reporter on location to cover local events in Portneuf. Programming is provided partly by an on-air host (49 hours per week) and, for the remainder of the time, by an automated computer system. The host endeavours to cover current events using information contained in broadcasts by Québec stations. Based on the discussions at the hearing, the Commission considers that the licensee has not fully honoured the programming commitments it made when it acquired the station.

Implications for the station's role

The licensee indicated at the hearing that this application was intended [TRANSLATION] "to provide the residents of Québec with an additional radio service" and that [TRANSLATION] "CKNU will remain a Portneuf station, but one that must above all appeal to the Québec audience."

With these objectives in mind, the licensee proposes to target a new audience segment, namely [TRANSLATION] "the young women of Québec", in order to reach a large enough population base to help make the station profitable. The station's music format is to be modified to attract a younger audience. As for local involvement, the licensee indicated that it would assign a reporter to the Donnacona studios to cover Portneuf news more effectively. Although the licensee stated that the existing spoken word programs would be maintained and even improved, it was unable to demonstrate adequately at the hearing how its programming would be distinguishable from that of the Québec stations.

The Commission reminds the licensee that it acquired a station whose principal mandate is to reflect the reality of Portneuf in all its aspects, and whose licensed service area is the Portneuf market as opposed to the Québec market.

The Commission finds that the licensee did not answer satisfactorily the concerns raised by the Commission and the interveners at the hearing. In the Commission's view, Genex has demonstrated by its application that its objective is to fundamentally change the role and market of CKNU-FM, making it a Québec station. The Commission therefore denies the proposed amendments.

In making its decision, the Commission has considered the interventions submitted with respect to this application.

Secretary General

This decision is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca