Speech
The future of private and independent radio in small markets
Notes for an address
by Andrée Noël
Commissioner, Quebec Region, Canadian Radio-television
and Telecommunications Commission
at the Annual Meeting of the Members of the Association de la Radio
Privée Indépendante Francophone (ARPIF)
Québec City, Québec
November 8th, 2003
(CHECK AGAINST DELIVERY)
Introduction
Thank you Pierre (Pierre Bergeron, Vice-President of ARPIF), for that
warm welcome.
I am very happy to be speaking to you today, and I thank you for the
invitation.
One of my roles at the CRTC as Commissioner for Quebec Region involves
learning about your concerns and sharing them with the other Commissioners.
In some ways, I am the spokesperson for your reality in dealing with my
colleagues. That’s why I feel that meetings such as this one today are
important for both sides.
At a time when the trend is toward large radio ownership groups, where
independent stations are operated through networks, where technology is
evolving in leaps and bounds, it is certainly appropriate that we ask
ourselves about the future of radio. And as is the case here, about the
future of private and independent stations in small markets.
One thing I can say is that there certainly is a future for private and
independent radio in small markets.
Radio, a local medium
First of all, I would like to remind you that the Canadian Broadcasting
Policy expects, in particular, that radio programming in Canada should draw
from local sources.
Since its very beginnings, radio has been considered a local medium.
Indeed, in its Commercial Radio Policy 1998, the Commission emphasizes, and
I quote: “The radio industry has historically been the sector of the
broadcasting system that has provided the lion’s share of programming that
addresses local issues and concerns.”
Operators of radio services in small markets have indicated to us that it
is becoming more and more difficult for them to compete with the large
networks. We know, for example, that the networks benefit from economies of
scale by sharing services for several stations – things like administrative
or business services. They can offer advertising packages to regional and
national buyers. Some of the programming is also centralized and broadcast
via the networks.
Independent stations, on the other hand, have more flexibility in their
programming, which is not the case for large businesses. A local company is
in a better position to understand the needs of listeners in its region and
can therefore cater to clients’ tastes. Among other things, it can organize
its programming schedule with this objective in mind.
Local advertisers buy advertising based on audience ratings. But they are
also naturally inclined to do business with the company that is respected in
their community and whose programming best meets the needs of their
clientele, i.e., the local station they listen to. Local programming
therefore becomes a profitable investment. It enables the local broadcaster
to better compete against other radio services in its market.
Of course, some independent broadcasters from large networks play the
local card by operating local or regional networks, like the Appalaches
network. The stations that make up this network are well-established in
their communities. They provide programming that is of interest to residents
in the areas they serve.
Such companies are successful. And that’s why I believe that local
programming is the key to success for independent local stations.
Diversity of voices
The diversity of voices is another element to which the Commission
attaches a great deal of importance when granting a licence for a given
market.
If, however, the Commission concludes that the advertising pie is not
large enough to absorb the arrival of a new player in that market, it will
not grant a new broadcasting licence. It measures the impact of one or more
new stations in the market, particularly with a view to protecting the radio
stations already operating there.
The establishment of an additional commercial station should not unduly
harm the ability of the commercial stations in place to fulfill their
programming responsibilities. This was the case, for example, with a
decision the Commission rendered last July. It concluded that the Saguenay
market was not in a position to absorb a new commercial radio service at
that time.
However, in 2000, the Commission gave the owner of an independent station
in the same market permission to expand its station’s broadcast zone and
thereby increase its audience, its advertising revenues, and as a result,
its viability. This decision was also taken in order to provide for an
increase in the diversity of radio voices available in the Saguenay market.
Other recent decisions by the Commission have enabled independent
companies to exist in markets where large networks are operating radio
stations. For example, Radio Nord Communications, a company from
Abitibi-Témiscamingue, was granted approval to operate a classic-format
commercial radio station in the Gatineau area. And this same company, which
is associated with Spectra-Scène, received the green light last July to
operate a jazz and blues FM station in Montréal. It should be on the air in
the spring of 2004.
In the Sherbrooke area, the Commission awarded a licence to a whole new
independent company, Groupe Génération Rock, to operate a commercial rock FM
station. And finally, in the Laval region, the Commission awarded a licence
to a new independent company to operate a nostalgia-format station on the AM
band. These decisions will serve to increase the diversity of voices in two
of Quebec’s principal markets.
These examples demonstrate the importance the Commission attaches to
independent radio stations. They are a valuable tool in providing a
diversity of radio voices.
Local radio supporting new talent
As you know, another important principle for the Commission is the
development of Canadian talent. The Commission strongly advocates the
promotion of Francophone artists. That’s why at least 65% of popular
songs played must be in the French language. The Commission has also
implemented a number of measures to support new artists, including the
creation of a fund for marketing and promoting Canadian music, including the
works of new talent.
As to new music, some people deplore the under-representation of musical
genres on radio. There is also criticism of the fact that the majority of
recordings are produced in major centres like Montréal. However, new music
exists in all regions, small and large markets alike, and the role of local
radio should be to expose listeners to it.
In reality, an independent station can offer a range of musical styles or
associate itself with a less well-known format. It can promote the works of
regional artists by giving them a chance to be heard on the radio. It can
make production facilities available to them. It can organize competitions
and provide a profile to emerging talent.
I am convinced that these are important elements for ensuring the success
of your stations.
Conclusion
In conclusion, you will have gathered that I believe the future of
private and independent stations depends on the local services they provide
to listeners in the markets they serve, whether large or small.
They constitute an alternative to the large networks for increasing the
diversity of voices. Their contribution to new and emerging music is very
important.
Your contribution to your communities, notably through information,
entertainment, community involvement, musical promotion, and the development
of new talent, is unique and essential. Of course, competing with large
groups of stations requires innovation and creativity, but you have more
than enough of that. I truly believe in your future, and you can be assured
that the Commission is aware of how important your support is to the
Canadian broadcasting system.
Thank you!
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Date Modified: 2004-01-05 |
