ARCHIVED - Notice of Public Hearing CRTC 2001-10-2
This page has been archived on the Web
Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.
Notice of Public Hearing CRTC 2001-10-2See also: 2001-10, 2001-10-1, 2001-10-3, 2001-10-4, 2001-10-5 |
||
|
Ottawa, 20 September 2001 |
||
|
Further to its Notices of Public Hearing CRTC 2001-10 and 2001-10-1 dated 14 and 18 September 2001 relating to the Public Hearing which will be held on 19 November 2001, at the Mont-Royal Centre, 2200 Mansfield Street, Auditorium Room, Montréal, Quebec, the Commission announces the following: |
||
|
Correction to Item # 1 |
||
|
THE FOLLOWING ITEM IS AMENDED AND THE CHANGES ARE IN BOLD. IN ADDITION THE LIST OF LOCALITIES FOR EXAMINATION OF APPLICATIONS IS AMENDED BY REMOVING ROUYN-NORANDA AND ADDING AN ADDRESS IN TRURO, NOVA SCOTIA. |
||
|
Montréal, Chicoutimi, Trois-Rivières, Sherbrooke, Quebec City, Quebec, Hawkesbury, Ontario, Grand Falls, Plaster Rock, Woodstock, Fredericton, New Maryland, Omorocto, Bathurst, New Brunswick and Truro, Nova Scotia |
||
|
|
Applications by ASTRAL MEDIA INC. (Astral Media), on behalf of 3903206 Canada inc. (TRI Québec), Telemedia Radio Atlantique Inc. (Telemedia Atlantique) and Radiomedia Inc. (Radiomedia), seeking authority to acquire effective control of those three companies by acquiring all shares held directly or indirectly by Telemedia Radio Inc. (Telemedia). |
|
|
The transaction involves radio stations and networks operated by Telemedia in Québec, New Brunswick and Nova Scotia, specifically, the following undertakings: |
||
|
- the 9 stations operated by Telemedia in Québec, namely, CITÉ-FM Montréal, CFIX-FM Chicoutimi, CHEY-FM Trois-Rivières, CITÉ-FM-1 and its transmitter CITÉ-FM-2 Sherbrooke, CIMF-FM Hull and its transmitter CIMF-FM-1 Hawkesbury (Ontario), CITF-FM Quebec City, CHLN Trois-Rivières, CHLT Sherbrooke, all French-language, and CKTS Sherbrooke, which broadcasts in English. The transaction also involves the transitional digital radio station CITÉ-FM Montréal, as well as the Radio Rock Détente network Montréal and the CHLN/CKSM radio network Trois-Rivières/Shawinigan; |
||
|
- the 6 English-language stations that Telemedia Atlantique operates in New Brunswick, namely, CIKX-FM Grand Falls and its transmitter CJCJ-FM-2 Plaster Rock, CJCJ-FM Woodstock, CFXY-FM Fredericton, CIBX-FM Fredericton, CKHJ Fredericton and its transmitters CKHJ-FM-1 New Maryland and CKHJ-FM-2 Omorocto, CKBC Bathurst and CKHJ/CJCJ-FM (Woodstock) radio network. The transaction also involves radio stations in Nova Scotia, namely, CKTY-FM Truro and CKTO-FM Truro. |
||
|
In addition, the transaction includes Telemedia's 50% interest in Radiomedia. The Commission notes that following the transaction, Astral Media would directly or indirectly own 100% of Radiomedia. As a result, Astral Media would also acquire the effective control of the French-language stations CKAC (Montréal) and CHRC (Québec). The Commission notes that Radiomedia also operates the transitional digital radio (TDR) station CKAC (Montréal), and Radiomedia's French-language information network, Réseau des Expos and Réseau des Canadiens. |
||
|
Furthermore, once the transaction is completed, Astral Media wishes to proceed with a corporate reorganisation that would transfer Telemedia Atlantique from TRI Quebec as well as Radiomedia (50%) to Astral Radio Group Inc. (Astral Radio). |
||
|
Astral Media also wishes the authority to wind up Radiomedia into Astral Radio. Therefore, Astral Media requests that Astral Radio be granted new licences under the same terms and conditions following the transfer of the following licences: CKAC Montreal, CHRC Québec, the TDR station CKAC Montreal, Radiomedia French-language information network, Réseau des Expos and Réseau du hockey des Canadiens. |
||
|
The above applications involve several aspects of the broadcasting industry because of the resulting multiple ownership. The Commission notes that Astral Media operates mostly in the broadcasting and advertising sectors. In the broadcasting industry, Astral Media is a major presence in the radio sector, with 14 AM and FM stations in all major markets in Quebec. Astral Media is also a major player in specialty, pay and pay-per-view television services, and its mainly French-language services make it an important player in Quebec television. |
||
|
The Commission notes that, following the transaction, Astral Media would also become an important radio operator in the Maritimes, namely in New Brunswick and in Nova Scotia. |
||
|
With the proposed transaction, Astral Media would be first in Quebec in terms of number of radio stations and revenues, and its presence in the broadcasting industry would grow significantly. That growth could raise a number of issues regarding concentration of ownership, particularly in radio. The proposed transaction could also raise issues such as: |
||
|
The diversity of voices in Quebec |
||
|
The proposed creation of the largest French-language radio player could reduce the diversity of voices available in Quebec. The Commission intends to examine the use of safeguards it may deem appropriate to ensure plurality of voices. |
||
|
The potential market dominance arising from the transaction |
||
|
Astral Media could be in a dominant position in the Quebec market with respect to advertising and French-language music distribution. Also, in some regions, Astral Media could become the sole source of local programming. |
||
|
Consequently, the Commission intends to examine the potential adverse effects on the radio broadcasting system or the public, for example, whether the transaction would adversely affect other radio and television broadcasters in Quebec and hinder their ability to meet their regulatory obligations. To minimize potential adverse effects the Commission could examine the possibility of imposing specific conditions of licence addressing programming, suspensive approval conditions, and the possibility of a requirement for divestiture of business(es). |
||
|
Common ownership |
||
|
The Quebec region presents a particular situation. Currently, Astral Média, directly or indirectly, owns 100% of two radio stations (CHIK-FM and CFOM-FM) and has a 50% interest in another (CHRC). Astral Media would acquire another station (CITF-FM) as well as the other 50% of CHRC. According to the Commission's policy on common ownership, in markets with fewer than eight commercial stations operating in a given language such as in the Quebec region, an owner may be permitted to own or control as many as three stations operating in that language, with a maximum of two stations in any one frequency band. |
||
|
If the transaction were approved, Astral Media would contravene the policy (Astral Media would own 4 stations in a market with fewer than 8 stations, three of them on the FM band). The Commission notes that to address the situation, Astral Media has committed to divest itself of station CFOM-FM. The Commission may examine Astral Media's commitment as well as other possibilities the Commission may deem appropriate. |
||
|
In order to facilitate examination of this application by interested parties the Commission has prepared a study of the radio market in Quebec. (État du marché radiophonique au Québec, août 2001), which has been placed on the public file. |
||
|
Applicant's address: |
||
|
Examination of applications: |
||
|
This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca |
||
|
Secretary General |
||
Date Modified: 2001-09-20
- Date modified: