Search

Broadcasting Decision CRTC 2024-265

PDF version

References: 2024-11 and 2024-11-1

Ottawa, 31 October 2024

Bayshore Broadcasting Corporation
Owen Sound, Ontario

Public record: 2023-0088-8
Public hearing in the National Capital Region
25 March 2024

CFOS Owen Sound – Conversion to the FM band

Summary

The Commission approves the application by Bayshore Broadcasting Corporation for a broadcasting licence to operate an English-language commercial FM radio station in Owen Sound, Ontario, to replace its English-language commercial AM radio station CFOS Owen Sound.

The new station will continue to provide the oldies format that CFOS offers, as well as a wide range of news and community information.

The Commission proposes to make the orders set out in Appendix 2 to this decision imposing various conditions of service on the licensee. Consistent with subsections 9.1(4) and 11.1(7) of the Broadcasting Act, interested persons may comment only on the proposed orders by no later than 12 November 2024. The licensee may submit a reply to any comments received by no later than 18 November 2024.

Application

  1. Bayshore Broadcasting Corporation (Bayshore) filed an application for a broadcasting licence to operate an English-language commercial FM radio station in Owen Sound, Ontario, to replace its English-language commercial AM radio station, CFOS Owen Sound.Footnote 1
  2. Bayshore is an Ontario corporation wholly owned by 641718 Ontario Limited (641718). 641718 is an Ontario corporation wholly owned by C. Douglas Caldwell, who is a Canadian as defined by the Direction to the CRTC (Ineligibility of Non-Canadians) (the Direction).Footnote 2 Moreover, the Chief Executive Officer (CEO) and all members of the board of directors of both Bayshore and 641718 are Canadians, as defined by the Direction. Consequently, Bayshore is in compliance with the Direction and eligible to hold a broadcasting licence.
  3. The proposed station would operate at 89.3 MHz (channel 207B1) with an average effective radiated power (ERP) of 1,500 watts (non-directional antenna with an effective height of the antenna above average terrain [EHAAT] of 214 metres).Footnote 3
  4. Bayshore submitted that the conversion to the FM band is the most affordable long-term solution to the significant time and cost involved in replacing obsolete components for AM transmission.
  5. The applicant stated that it would continue broadcasting 126 hours of local programming per broadcast week, including three hours of “pure news.”Footnote 4 It added that its current AM station’s oldies format, with a mix of news, talk and music, would be carried over to the new FM station, and would continue to serve the same target audience (adults over 50 years of age).
  6. The applicant requested an extended simulcast period of 12 months in order to allow listeners to adjust to the FM signal, particularly those listeners outside of Owen Sound.
  7. In its application, Bayshore provided several letters of support from listeners, local businesses, the Owen Sound Chamber of Commerce, the mayor of Owen Sound, and the Grey County Warden.

Interventions

  1. The Commission received 90 interventions regarding this application, 89 in support and one in comment.
  2. The individual who submitted an intervention in comment argued that moving CFOS to the FM band with a power of 1,500 watts may cause a decline in listenership in the outlying areas currently within CFOS’s coverage area. The issue raised in this intervention is addressed beginning in paragraph 15 of this decision.

Additional consultation

  1. The day after the close of the intervention period, a Southampton, Ontario, low-power tourist information station (LPFM) that would be affected by the conversion of Bayshore’s station in Owen Sound submitted a complaint to the Department of Industry (also known as Innovation, Science and Economic Development Canada, hereafter the Department).
  2. The Commission reopened the public record to interventions in order to consider the complaint sent by the LPFM and to ensure that the LPFM, and any other respondent, would have an opportunity to file an intervention. The Commission did not receive additional interventions.

Issues

  1. The Commission has the authority, pursuant to subsections 9(1), 9.1(1) and 11.1(2) of the Broadcasting Act, to issue and renew licences and to make orders imposing conditions on the carrying on of a broadcasting undertaking that it considers appropriate for the implementation of the broadcasting policy set out in subsection 3(1) of the Broadcasting Act, and to make orders respecting expenditures.
  2. After examining the record for this application in light of applicable regulations and policies, the Commission considers that it must address the following issues:
    • Does the applicant’s proposed use of the frequency 89.3 MHz for its FM station represent an appropriate use of spectrum?
    • Would approval of this application have an undue economic impact on other stations in the market?
    • Will the proposed programming provide adequate service to the Owen Sound community?
    • Are the proposed Canadian content development contributions adequate?
    • Should the applicant’s request for an extended simulcast period be approved?

Proposed frequency and appropriate use of spectrum

  1. The applicant proposed to operate the new FM radio station at 89.3 MHz (channel 207B1). The primary (3 mV/m) contour for the proposed FM station would serve the city of Owen Sound and the surrounding areas, while the secondary (0.5 mV/m) contour would encompass Kemble, Wiarton, Oliphant, Sauble Falls, Southampton, Port Elgin, Paisley, Chesley, Markdale, Kimberley, and Meaford, Ontario.
  2. CFOS was originally licensed to serve the market of Owen Sound. The proposed FM station would result in a reduction in the area covered by the station’s primary contour, given that the existing AM station’s primary daytime contour (15 mV/m) is larger than the proposed FM station’s primary contour (3 mV/m). While most communities served by the existing AM station’s primary daytime contour would remain within the primary and secondary contours of the proposed FM station, some listeners who currently receive the applicant’s AM station’s signal may lose access to it, depending on their location.
  3. The Department has granted the conditional technical acceptability for the proposed station. As such, the applicant’s proposal adheres to the rules governing FM spectrum coordination.
  4. The Department noted that approval of this proposal would result in the unprotected low-power tourist information station in Southampton noted in paragraph 10 needing to vacate its frequency due to potential mutual interference between the two stations. However, the Commission has identified multiple other frequencies capable of providing similar coverage to that of the low-power station.
  5. The Department further identified that the applicant’s proposal would result in the need to delete two unassigned allotments: one in Bruce Peninsula and one in Collingwood, Ontario.
  6. In Bruce Peninsula, the Commission has identified multiple other frequencies that could continue to serve the radio market with parameters similar to those of the deleted allotment.
  7. In Collingwood, the Commission has identified an alternative allotment, with smaller parameters, resulting in a reduced coverage area compared to the one that would be deleted upon approval of Bayshore’s proposed FM station. Therefore, approval of the applicant’s proposal would impact frequency availability in the Collingwood market. However, the Commission notes that it received no interventions opposing Bayshore’s proposal, and, as noted above, there would remain an allotment to serve the Collingwood market.
  8. In light of the above, the Commission considers that the use of the proposed frequency would have negligible impact on the availability of frequencies in Owen Sound. While it would have some impact on frequency availability in Collingwood, this impact is minor and can be mitigated, as described above. As such, the Commission finds that the use of the frequency 89.3 MHz by the applicant for its proposed FM station represents an appropriate use of spectrum.

Economic impact on incumbent stations

  1. The Owen Sound radio market consists of four local commercial radio stations, including CFOS. Three of these radio stations are licensed to Bayshore (CFOS, CIXK-FM and CKYC-FM) and one to Bell Media Inc. (Bell Media) (CJOS-FM).Footnote 5
  2. If Bayshore’s application is approved, Bayshore would own three stations within the Owen Sound market on the FM band. For markets with fewer than eight commercial radio stations operating in a given language, the Common Ownership PolicyFootnote 6 permits a person to own or control as many as three stations operating in that language, with no limits on frequency band.
  3. The applicant submitted that CFOS’s conversion to the FM band would have no impact on Bell Media’s CJOS-FM. Further, the Commission notes the proposed station’s projected total advertising revenues are in line with the station’s historic performance.
  4. The Commission did not receive interventions from potentially affected stations during the intervention period.
  5. In light of the above, and given CFOS’s already-existing presence within the Owen Sound market, the Commission finds that approval of this application would not have an undue economic impact on other stations in the market.

Programming

  1. In Broadcasting Public Notice 2006-158, the Commission stated that, in their local programming, licensees must incorporate spoken word material of direct and particular relevance to the communities they serve. This spoken word material must include local news, weather, sports coverage, and the promotion of local events and activities.
  2. In its application, Bayshore proposed to broadcast 126 hours of local programming each broadcast week, including three hours of pure news. This would include two hours and 40 minutes of local news, 10 minutes of national news, and 10 minutes of international news per broadcast week.
  3. The applicant also proposed to broadcast a daily open-line program featuring an expert guest on a particular topic of interest to the local area. Bayshore stated it would also broadcast talk shows, comprehensive morning sportscasts, weather information two to three times per hour, road condition reports during the winter season, community announcements four times per day, and community interview features and funeral announcements twice per day. In total, the proposed station would broadcast 12 hours of spoken word content per broadcast week.
  4. Bayshore indicated that its musical selections would be drawn mainly from years ranging from the 1950s to the 1980s, consistent with the oldies format of its current AM station. However, it also indicated that it does occasionally highlight newer music released by local artists. This exposure usually includes an interview with the artist and the airing of their song on the morning show. Bayshore proposed to continue this practice on the FM station as part of its commitment to supporting local and emerging artists.
  5. As an AM station with an oldies format, CFOS is currently allowed, as an exception to the standard requirements set out in the Radio Regulations, 1986 (the Regulations)Footnote 7, to devote at least 30% of its musical selections from content category 2 (Popular Music) to Canadian selections each broadcast week and during the peak listening period.Footnote 8 As an FM station, Bayshore would be required to devote at least 35% of its musical selections from content category 2 to Canadian selections during those two periods.
  6. In light of the above, the Commission finds that Bayshore’s proposed programming would benefit the community of Owen Sound.

Canadian content development contributions

  1. Applicants can make specific Canadian content development (CCD) commitments as part of the applications for new licences that go beyond (“over-and-above”) the requirements in the Regulations. These are imposed by conditions of service. Stations that make over-and-above contributions must direct a minimum of 20% of the total annual amount to FACTOR or Musicaction. Stations may also make contributions to other eligible initiatives, at their discretion.
  2. Bayshore proposed, upon commencement of operations, to make an over-and-above annual contribution of $3,000 (totalling $21,000 over seven consecutive broadcast years) to CCD. Of this amount, 20% ($600 per broadcast year) would be allocated to FACTOR and the remainder ($2,400) would be allocated to the Owen Sound Salmon Spectacular. This contribution would assist with sound, staging, and artist remuneration for the event’s two-day evening music showcase.
  3. The Commission considers that these over-and-above contributions will benefit Canadian musical artists, including those from the Owen Sound area. Accordingly, the Commission has proposed a condition of service to this effect below.

Simulcast period

  1. The applicant sought authority to simulcast the programming of the new FM station on its existing AM station for a transition period of 12 months and requested that the Commission revoke the licence for the AM station at the end of the simulcast period. The applicant stated that a 12-month simulcast period would allow the listeners to adjust to the FM signal, particularly those listeners outside of Owen Sound.
  2. The Commission’s general practice is to allow a three-month simulcasting period of the new FM station on a former AM frequency.
  3. The Commission considers that the applicant provided insufficient reason for an extended simulcast period. It notes, however, that some communities may lose the AM signal and not receive the new FM signal following the transition period, and it expects the applicant to notify those affected communities.
  4. The Commission therefore finds that a three-month simulcast period is appropriate.

Conclusion

  1. In light of all of the above, the Commission approves the application by Bayshore Broadcasting Corporation for a broadcasting licence to operate an English-language commercial FM radio programming undertaking in Owen Sound, Ontario, to replace its English-language commercial AM radio station CFOS Owen Sound. The licence will expire on 31 August 2031.
  2. The terms, expectations, and encouragements are set out in Appendix 1 to this decision.
  3. The Commission proposes to make the orders set out in Appendix 2 to this decision imposing various conditions of service on the licensee. Consistent with subsections 9.1(4) and 11.1(7) of the Broadcasting Act, interested persons may comment only on the proposed orders by no later than 12 November 2024. The licensee may submit a reply to any comments received by no later than 18 November 2024.
  4. The Commission notes that the formal broadcasting licence document issued to a licensee may set out additional requirements for the undertaking, relating to, for example, technical parameters or prohibitions on transfer. The licensee shall also adhere to any such requirements set out in the broadcasting licence for the undertaking.

The proposed orders

Standard conditions of service

  1. There are standard conditions of service that apply to all undertakings of a particular class. In this case, the Commission considers that the licensee should adhere to the standard conditions of service for commercial radio stations set out in the appendix to Broadcasting Regulatory Policy 2022-334.
  2. Further, pursuant to subsection 49(2) of the Online Streaming Act, which made a certain number of amendments to the Broadcasting Act when it came into force on 27 April 2023, any regulation made under paragraphs 10(1)(a) or 10(1)(i) of the old Broadcasting Act is deemed to be an order made under section 9.1 of the new Broadcasting Act. The Commission considers it appropriate to require the licensee to adhere to these requirements as conditions of service.
  3. Accordingly, pursuant to subsection 9.1(1) of the Broadcasting Act, the Commission proposes to order Bayshore Broadcasting Corporation, by condition of service, to adhere to the standard conditions of service set out in the appendix to Broadcasting Regulatory Policy 2022-334, as well as to all applicable requirements set out in the Regulations that were made under paragraph 10(1)(a) or under paragraph 10(1)(i) of the old Broadcasting Act.

Broadcast of emergency alerts

  1. The Commission has implemented obligations in respect of the broadcast of emergency alerts. For reference, see section 16 of the Regulations and Broadcasting Regulatory Policy 2014-444. Compliance involves implementing the public alerting system for each of the licensee’s transmitters, and ensuring that any alert broadcast decoders (e.g., ENDEC) used for the purposes of broadcasting emergency alert messages be installed and programmed to properly account for the applicable contour (as set out in paragraph 16(2)(b) of the Regulations) of the station as well as that of any rebroadcasting transmitter that may appear on the licence for that station.
  2. Accordingly, and pursuant to subsection 9.1(1) of the Broadcasting Act, the Commission proposes to order Bayshore Broadcasting Corporation, by condition of service, to implement the National Public Alerting System (NPAS) by the date of the station’s launch and to make the appropriate associated information filings.
  3. Further to these obligations, the Commission considers it appropriate that the licensee be required to implement the NPAS in the manner set out in the Regulations by the date of the station’s launch and to file a letter via GC KEY attesting to the implementation of the NPAS, within14 days of installation of the alerting equipment.

Canadian content development contributions

  1. As indicated above, the applicant committed to make, in addition to the basic annual contribution to CCD set out in section 15 of the Regulations, an annual contribution of $3,000 ($21,000 over seven consecutive broadcast years) to the promotion and development of Canadian content.
  2. Pursuant to subsection 11.1(2) of the Broadcasting Act, the Commission proposes to order Bayshore Broadcasting Corporation, by condition of service, to adhere to its commitments with regard to those over-and-above CCD contributions.

Simulcast period and revocation of the AM licence

  1. Pursuant to subsection 9.1(1) of the Broadcasting Act, the Commission proposes to impose an order on Bayshore Broadcasting Corporation authorizing it, by condition of service, to simulcast the programming of the new commercial FM station on CFOS Owen Sound for a transition period of three months following the commencement of operations of the FM station.

Employment Equity

  1. In accordance with Public Notice 1992-59, the licensee should consider employment equity in its hiring practices and in all other aspects of its management of human resources.
  2. The Commission notes that amendments to the Broadcasting Act resulting from the Online Streaming Act place greater emphasis on the inclusion of equity-deserving communities and individuals in the broadcasting system.
  3. The Commission encourages the licensee to consider the amendments to the Broadcasting Act in furthering the employment equity practices described in its application. The Commission may in the future examine the employment equity policy applicable to broadcasting undertakings in the consultations on inclusion and diversity announced in its Regulatory plan to modernize Canada’s broadcasting framework.

Reminders

Local news

  1. Radio stations are an important daily source of local news and information for communities. Carrying on a broadcasting undertaking comes with conditions, regulatory obligations and responsibilities, which include contributing to the Canadian broadcasting system by ensuring that Canadians have access to local programming that reflects their needs and interests and informs them of important current issues.
  2. Although Broadcasting Regulatory Policy 2022-332 does not specify a minimum level of weekly news to be broadcast, it does specify the type of spoken word material that must be included as part of a station’s local programming. In accordance with that regulatory policy, the Commission reminds the licensee that its station, in its local programming, must incorporate spoken word material of direct and particular relevance to the communities served, and that this programming must include local news, weather, sports coverage, and the promotion of local events and activities. In addition, the Commission encourages the licensee to ensure that a reasonable amount of daily local news and information is made available to those communities.

Secretary General

Related Documents

This decision is to be appended to the licence.

Appendix 1 to Broadcasting Decision CRTC 2024-265

Terms, expectations and encouragements for the English-language commercial FM radio programming undertaking in Owen Sound, Ontario

Terms

The licence will expire 31 August 2031.

The station will operate at 89.3 MHz (channel 207B1) with an average effective radiated power (ERP) of 1,500 watts (non-directional antenna with an effective height of antenna above average terrain [EHAAT] of 214 metres).

The Commission reminds the applicant that, pursuant to subsection 22(1) of the Broadcasting Act, no licence may be issued until the Department of Industry (also known as Innovation, Science and Economic Development Canada) notifies the Commission that its technical requirements have been met and that a broadcasting certificate will be issued.

Furthermore, the Commission will only issue a licence for this undertaking once the applicant has informed the Commission in writing that it is prepared to commence operations. The undertaking must be in operation by no later than 31 October 2026. To request an extension, the applicant must submit a written request to the Commission at least 60 days before that date, using the form available on the Commission’s website.

Expectations

Notification of impact of conversion of the AM station to the FM band

The Commission expects the licensee to notify listeners of the communities that will be affected by the loss of service due to the amended service area of the new FM station that they will, or may, lose service as of the end of the simulcast period.

Cultural diversity

The Commission expects the licensee to reflect the cultural diversity of Canada in its programming and employment practices.

Canadian emerging artists

Consistent with the Commission’s determination set out in Revised Commercial Radio Policy, Broadcasting Regulatory Policy CRTC 2022-332, 7 December 2022 (Broadcasting Regulatory Policy 2022-332), the Commission expects the licensee to devote, in each broadcast week, at least 5% of the station’s musical selections to selections from Canadian emerging artists broadcast in their entirety. The licensee should report annually on how it has met this expectation, including the percentage of selections from Canadian emerging artists out of the total number of musical selections that were aired, and the number of distinct artists whose music has been aired. The licensee should also be able to provide, upon request, information such as a list of all titles, artists, and International Standard Recording Code (ISRC) numbers.

For the purposes of the above paragraph, the definition of “Canadian emerging artist” is the same as that set out in paragraph 346 of Broadcasting Regulatory Policy 2022-332.

Indigenous musical selections

Consistent with the Commission’s determination set out in Revised Commercial Radio Policy, Broadcasting Regulatory Policy 2022-332, 7 December 2022 (Broadcasting Regulatory Policy 2022-332), the Commission expects the licensee to include Indigenous musical selections on the station’s playlist. The licensee should report annually on the amount of Indigenous content aired on the station throughout the broadcast year (i.e., from 1 September to 31 August), including the percentage of Indigenous musical selections out of the total number of musical selections that were aired, and the number of distinct artists whose music has been aired. The licensee should also be able to provide, upon request, information such as a list of all titles, artists, and International Standard Recording Code (ISRC) numbers.

For the purposes of the above paragraph, the licensee may use the provisional definition of “Indigenous-Canadian musical selection” set out in paragraph 441 of Broadcasting Regulatory Policy 2022-332 to determine whether a musical selection can be considered an Indigenous musical selection.

Encouragements

Employment equity

In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the licensee should consider employment equity in its hiring practices and in all other aspects of its management of human resources.

Furthermore, the Commission notes that amendments to the Broadcasting Act resulting from the Online Streaming Act place greater emphasis on the inclusion of equity-deserving communities and individuals in the broadcasting system. As a result, the Commission may examine the employment equity policy in the context of the consultations on inclusion and diversity announced in its Regulatory plan to modernize Canada’s broadcasting framework. The Commission encourages the licensee to consider the amendments to the Broadcasting Act in furthering its employment equity practices.

Appendix 2 to Broadcasting Decision 2024-265

Proposed conditions of service for the English-language commercial FM radio programming undertaking in Owen Sound, Ontario

The Commission proposes to make orders imposing the following conditions of service, including expenditure requirements, on Bayshore Broadcasting Corporation in respect of the new English-language commercial FM radio programming undertaking in Owen Sound, Ontario, pursuant to subsections 9.1(1) and 11.1(2) of the Broadcasting Act.

  1. The licensee shall adhere to the conditions of service set out in Revised conditions of licence for commercial AM and FM radio stations, Broadcasting Regulatory Policy CRTC 2022-334, 7 December 2022. Further, the licensee shall adhere to the requirements set out in the broadcasting licence for the undertaking.
  2. The licensee shall adhere to all applicable requirements set out in the Radio Regulations, 1986 that were made under paragraph 10(1)(a) or under paragraph 10(1)(i) of the old Broadcasting Act.
  3. The licensee shall, upon commencement of operations, in addition to the basic annual contribution to Canadian content development (CCD) set out in section 15 of the Radio Regulations, 1986, make an annual contribution of $3,000 ($21,000 over seven consecutive broadcast years) to the promotion and development of Canadian content.


    Of this amount, the licensee shall allocate no less than 20% per broadcast year to FACTOR or Musicaction. The remainder of this additional CCD contribution shall be allocated to parties and initiatives fulfilling the definition of eligible initiatives set out in paragraph 108 of Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006, as amended by paragraph 131 of Revised Commercial Radio Policy, Broadcasting Regulatory Policy CRTC 2022-332, 7 December 2022.

  4. The licensee is authorized to simulcast the programming of the new commercial FM station on CFOS Owen Sound, Ontario, for a transition period of three months following the commencement of operations of the FM station.
  5. The licensee shall implement the National Public Alerting System (NPAS) by the station’s launch in the manner set out in Section 16 of the Radio Regulations, 1986, and in Amendments to various regulations, the standard conditions of licence for video-on-demand undertakings and certain exemption orders – Provisions requiring the mandatory distribution of emergency alert messages, Broadcasting Regulatory Policy CRTC 2014-444 and Broadcasting Orders CRTC 2014-445, 2014-446, 2014-447 and 2014-448, 29 August 2014, as amended from time to time.


    The licensee must file a letter via GC KEY with the Commission to attest to the implementation date of its NPAS within 14 days of installation of the alerting equipment. This letter must also contain evidence that the system is properly configured to receive and distribute alerts from the National Alert Aggregation and Dissemination (NAAD) System (e.g. an attestation by a CEO, president or person exercising a similar supervisory role in the licensee's operations, as to the installation of a functioning alerting equipment).

Date modified: