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Speech
Notes for an address
by Françoise Bertrand
Chairperson, Canadian Radio-television
and Telecommunications Commission
at the Radio Review Press Conference
Ottawa, Ontario
April 30, 1998
(CHECK AGAINST DELIVERY)
Good morning Ladies and Gentleman, thank you for coming.
My name is Françoise Bertrand and I am the Chairperson of the CRTC.
Beside me is Charles Bélanger, the CRTC's Vice-Chair for Broadcasting.
As you know, we are today releasing a new policy framework for commercial
radio. The policy is a significant one in that it calls for a much stronger
working relationship between the broadcasting and music industries, building
on their complementary strengths. It also sets out changes in the quantity
and scheduling of Canadian music that listeners can expect to hear on Canadian
radio, and it amends the rules about how many radio stations one owner can
hold in any market.
The policy focuses on three key points:
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firstly, Canadian artists must hold a "pride of place" on Canadian radio
airwaves,
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secondly, a distinctive French-language presence in radio broadcasting must
be assured, and
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finally, the radio industry must be positioned financially to achieve its
obligations under the Act and to meet the challenges of the 21st century.
The Commercial Radio Policy that we are releasing today is a balancing act
between a financially stronger radio industry, access by Canadians to quality
Canadian programming, and increased exposure to Canadian musical artists.
Pride of place for Canadian tunes
Playing Canadian music is a key contribution by the radio industry to the
cultural objectives of the Act. Minimum Canadian content requirements in
radio have contributed significantly to the success of Canadian music in
Canada and abroad.
The Commission believes that the time is ripe for an increase in the level
of popular music played each week from thirty to thirty-five percent. What
this means in practical terms is that a radio station playing two hundred
musical selections will now play ten more Canadian tunes per day.
Also, to ensure that Canadians are given the best opportunity to hear Canadian
material, this thirty-five percent level will also be maintained during the
daytime period — from 6 a.m. to 6 p.m., weekdays, and selections
will have to be played in their entirety in order to qualify.
Broadcasters and music people — working together
In order to further stimulate the production of Canadian musical material,
from now on, financial contributions resulting from transfers of ownership
will always be directed to funds supporting Canadian talent, such as FACTOR
and MusicAction, as well as a new Canadian Music Marketing and Promotion
Fund, and other initiatives supporting Canadian talent.
The Canadian Association of Broadcasters — that's the CAB — has
also announced a number of projects to promote Canadian music and to foster
a closer working relationship with the music industry. These include a new
annual Canadian radio music awards event to celebrate Canadian artists; a
Canadian Music Month preceding those Canadian Music Awards; a virtual music
store, and a Radio Stars program to promote new artists and recordings. We
commend the CAB for these worthwhile commitments to the promotion Canadian
talent.
Although it is not regulated by the CRTC, the recording industry plays an
integral role within the Canadian broadcasting system. It has a critical
interest in working in partnership with the radio industry to ensure that
today's policy achieves its objectives. We hope that these new measures put
in place by the collaborative efforts of the broadcasting and music industries
and the Commission will result in even higher levels of Canadian content
within five years.
French-language broadcasting — A success story!
Regulation of French-language radio broadcasting has always had two main
objectives:
1. to support a francophone recording industry in Canada, and
2. to ensure that francophones have access to music that reflects their culture.
We believe that this regulatory approach to French-language broadcasting
works. It has enabled the production of an impressive inventory of
French-language recordings. Accordingly, all French-language AM and FM radio
stations are expected to maintain the current level of at least sixty-five
percent of popular music broadcast each week in the French language. We feel
this is essential in ensuring an appropriate French-language presence in
radio.
In addition, to ensure maximum exposure to francophone artists in prime listening
periods, from now on fifty-five percent French-language music will be broadcast
between six in the morning and six at night, each week day. Also, French-language
selections will have to be played in their entirety in order to qualify.
New ownership rules: A balance between diversity and strength
Now let me turn your attention to the opening up of the ownership policy.
As you know, our current policy generally limits one owner to one AM and
one FM station in the same language in a market.
From now on, a single owner will be allowed to own as many as two AM and
two FM stations in an given language — in markets with eight or more
radio stations. In smaller markets, an owner will be permitted to own as
many as three stations operating in that language, with a maximum of two
stations on one frequency band. This change recognizes that although the
radio industry has shown signs of steady financial improvement over the past
two years, this follows a 10-year period of financial unrest. Also, it will
still need to make serious investments to strengthen its overall performance,
attract new investment and compete effectively with other forms of media.
In adopting this model, we took into account the diversity of editorial voices
available in large and small markets. The change in policy recognizes the
fact that Canadians have enjoyed a considerable increase in the number of
local, regional and national news sources available over the past decade.
There are new conventional radio and TV stations, specialty services, community
radio stations and newspapers, as well as new sources of information delivered
over the Internet.
Nevertheless, applicants seeking to acquire more than one AM and one FM under
the new rules, will be expected to address such issues as diversity of news
sources, fair competition and media cross-ownership, and to demonstrate that
multiple ownership is in the public interest. The Commission also intends
to monitor carefully the effect of ownership consolidation on program format
diversity.
At the same time, in order to encourage competition and choice for listeners,
the Commission will no longer apply the Radio Market Policy criteria, which
provided some degree of protection to existing stations when considering
applications for new players in their markets.
Overall, we are confident that this approach will provide a reasonable balance
between the objectives of a well-financed radio industry, poised to contribute
effectively to Canadian culture, and longstanding concerns regarding diversity
of news sources, media cross-ownership and fair competition.
Local Management Agreements review
Now, in some communities, broadcasters have struck local management agreements,
or what we call LMA's. These are agreements between two owners of radio stations
in the same market whereby they share certain facilities and activities with
the exception of programming and news.
Given the changes announced today, it is timely to revisit our LMA policy.
In a related notice of today's date, we have announced that we will review
that policy. Until that process is complete, people applying to acquire multiple
stations will be expected to undertake not to enter into such agreements
without the Commission's prior approval.
Dual approach to regulation
As defined by our Vision document released last September, the Commission's
strategic approach to regulation of the Canadian broadcasting industry calls
for a full tool box of regulatory measures. We do intend to move gradually
to more a flexible approach to regulation.
However, the CRTC has made it clear that while it will tend to move away
from detailed regulation where it can, it will not hesitate to use the more
traditional approach where it feels that it is necessary to meet the objectives
of broadcasting legislation, or to strengthen existing rules where expected
results have not materialized. Today's policy document reflects this dual
approach to the regulation of the Canadian radio industry.
The success of today's policy in meeting its objectives depends entirely
on the degree of cooperation that will develop between the broadcasting and
music industries. I will now answer your questions.
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Contact: CRTC Communications Branch, Ottawa, Ontario K1A 0N2
Tel.: (819) 997-0313, TDD:
(819) 994-0423, Fax: (819) 994-0218
This document is available in alternative format upon request.
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