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Broadcasting Decision CRTC 2002-225
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Ottawa, 8 August 2002
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CKVN Radiolink System Inc.
Winnipeg, Manitoba
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Application 2000-1959-8
Public Hearing at Winnipeg, Manitoba
4 February 2002
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Application for a nostalgia radio station to serve Winnipeg
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The Commission approves the application by CKVN Radiolink
System Inc. (Radiolink), for a new commercial FM radio station at
Winnipeg. This is one of five new Winnipeg radio stations approved
in Decisions CRTC 2002-224 to 2002-228 issued today.
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The Commission’s overall approach to radio applications
considered at the 4 February 2002 Public Hearing in
Winnipeg is set out in Introductory statement to Decisions
CRTC 2002-224 to 2002-228: Applications for new radio stations
to serve Winnipeg, Public Notice CRTC 2002-41, 8 août 2002.
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The application
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1. |
At the 4 February 2002 public hearing in Winnipeg, the Commission
considered an application by CKVN Radiolink System Inc. (Radiolink)
for a new commercial FM radio station to serve Winnipeg, to be
operated in the specialty programming format. The applicant proposed
to operate the new station at 100.7 MHz (channel 264A) with an
effective radiated power of 1,300 watts.
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2. |
The proposed station would offer a nostalgia format comprised of
adult standards and easy listening music drawn from the 1920’s to
the 1970’s. The applicant indicated that the station would fill
the programming niche created in the Winnipeg market when CJOB
discontinued its nostalgia format and CFST changed format from adult
standards to sports talk.
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3. |
Radiolink currently holds no Winnipeg radio licences but has
operated various radio undertakings pursuant to Exemption order
respecting low-power radio: limited duration special event
facilitating undertakings set out in the appendix to Final
revisions to certain exemption orders, Public Notice CRTC 2000-10, 24 January 2000.
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Interventions
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4. |
The Commission acknowledges and has considered the numerous
interventions in support of this proposal. The interveners
considered the station proposed by Radiolink would provide a type of
music not currently available to radio listeners in Winnipeg, and
that it would be greatly appreciated by older listeners.
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5. |
Some interveners made reference to the special events stations
that Radiolink has operated and considered that a full-time station
offering this type of music would be attractive to Winnipeg
listeners. For example, the Secretary Treasurer of the
XII Manitoba Dragoons Veterans Association stated: |
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I am in touch with many Veterans who tell me that the music
played on CKVN is the greatest thing for recalling old memories of
bygone days. These men have served their country and I think
anything to brighten up their day is worthwhile.
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6. |
The Commission further notes that no interventions were received
in opposition to the application. |
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The Commission's analysis and conclusions
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7. |
In its assessment of applications for new commercial radio
stations, the Commission takes into account four main factors, or
bases of comparison, that it has identified as being relevant. While
their relative importance will vary depending on the specific
circumstances of the market concerned, the four factors are as
follows: |
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• The diversity of news voices in the community
• The quality of the application
• The impact of a new entrant on existing stations
• The competitive state of the market1
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Diversity of editorial voices
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8. |
In Introductory statement to Decisions CRTC 2002-224 to
2002-228: Applications for new radio stations to serve Winnipeg, Public
Notice CRTC 2002-41, 8 August 2002, the Commission listed the radio,
television and daily newspapers serving Winnipeg. Not counting the
radio stations licensed today, this list includes eleven commercial
radio stations owned by six licensees, five not-for-profit radio
stations owned by five licensees as well as four CBC radio stations.
Winnipeg is further served by three private television stations
owned by three licensees, as well as by two CBC television stations.
A new private religious television station has been approved in Proposed
religious station for Winnipeg, Decision CRTC 2002-229, 8 August
2002. Winnipeg is also served by two local daily newspapers owned by
two different parties.
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9. |
In light of the above, the Commission considers that the Winnipeg
market is served by a variety of news voices, and notes that
Radiolink will provide an additional news voice to a market that is
already well served in this respect.
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Quality of the application
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10. |
The Commission applies four main criteria when assessing the
quality of applications for new radio stations. These criteria are:
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• The applicant’s local programming proposals and plans for
providing reflection of the local community
• Canadian content commitments
• Commitments in support of the development of Canadian talent
• The quality of the applicant’s business plan, including the
proposed format2
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Local programming plans
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11. |
The applicant stated that it would offer a full-service station,
with all programming produced locally and all regular and special
feature programming hosted by live on-air talent. It stated that its
news department would consist of a news director and three
reporters, and that it would provide a minimum of 3 hours and 30
minutes of news programming each week.
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12. |
In addition to news programming, Radiolink proposed to offer a
number of spoken word programs including features and specials aimed
specifically at a target audience over the age of 45. The features
would include information dealing with issues such as health,
medicine, finance, lifestyle and retirement. Radiolink also
indicated that it planned to feature a highly experienced
broadcasting team of on-air and programming talent that would
regularly offer anecdotes, personal insights as well as locally
relevant information such as traffic, weather, community and special
events information.
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13. |
Radiolink also proposed to institute an Advisory Council for the
station, to be composed of prominent Canadians. The Council would
assist station management in assessing the station's performance and
offering insights into emerging issues of relevance to its proposed
audience. The Advisory Council would meet twice each year.
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14. |
The Commission finds that the applicant has presented a
satisfactory plan to reflect the Winnipeg market and the needs of
the audience it proposes to serve.
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Canadian content commitments
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15. |
In light of its proposal to offer a format based on older music,
the applicant requested that it be allowed to abide by conditions of
licence setting the levels of Canadian content at levels lower than
those required of stations that program more modern music.
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16. |
Specifically, the licensee proposed that, during program periods
in which all of the music played was composed prior to 1956, the
level of Canadian content would be at least 2%. During program
periods when music composed before 1956 made up 90% of the music
played, the minimum level of Canadian content would be 10%. The
applicant submitted that the lower levels of Canadian content
proposed for program periods devoted largely or entirely to music
composed before 1956 reflected policies that had been established by
the Commission for radio stations that programmed older music.
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17. |
The applicant also indicated that, although it would program
levels of category 2 Canadian music of less than 35% during
broadcast weeks in which instrumental selections made up more than
35% of all category 2 selections played, the levels of Canadian
music programmed would meet the requirements set out in the Radio
Regulations, 1986, (the Radio Regulations) for stations
broadcasting significant levels of instrumental music.
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18. |
With respect to the portion of its programming that would offer
music from category 3 – special interest music, the applicant
committed to ensure that, on a weekly basis, at least 10% of all
selections drawn from category 3 would be devoted to Canadian
selections, as required by the Radio Regulations.
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19. |
The applicant further indicated that, in order to ensure the
accuracy of Canadian content calculations, it had purchased a number
of music publications and that it would have a date-coded music
library. |
20. |
The Commission recognized the limited availability of Canadian
selections in some styles of music composed before 1956 in Changes
to the content requirements for Canadian music on radio, Public
Notice CRTC 1993-5, 29 January 1993. In that Notice, the Commission
stated that it would
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… be prepared to give favourable consideration to
applications by the licensees of networks or stations for
amendments to their conditions of licence where:
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• in those periods of category 2 music consisting exclusively
of music composed before 1956, the Canadian content level is
not less than 2% on a weekly basis;
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• in those periods of category 2 music consisting of 90% or
more, but not exclusively, of music composed before 1956, the
Canadian content level is not less than 10% on a weekly basis.
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21. |
The Commission further notes that section 2.2(6) of the Radio
Regulations allows a reduction in the level of Canadian music in
category 2 from the generally required level of 35% when a station
programs levels of instrumental music of 35% or more. Section 2.2(6)
states: |
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An A.M. or F.M. licensee may, in a broadcast week, reduce the
percentage of its Canadian musical selections from content
category 2 referred to in subsection (7) to (9) to
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(a) not less than 20% if, in that broadcast week, the licensee
devotes 35% or more but less than 50% of all its musical
selections to instrumental selections; and
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(b) not less than 15% if, in that broadcast week, the licensee
devotes 50% or more of all its musical selections to instrumental
selections.
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22. |
With respect to selections from category 3 – special interest
music, section 2.2(3) of the Radio Regulations states: |
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Except as otherwise provided under a licensee's condition of
licence, an A.M. or F.M. licensee licensed to operate a station
other than a community station or campus station shall, in a
broadcast week, devote 10% or more of its musical selections from
content category 3 to Canadian selections and schedule them in a
reasonable manner throughout each broadcast day.
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23. |
The Commission concludes that the applicant's plans are
consistent with its usual treatment of stations broadcasting
significant levels of music composed before 1956 and instrumental
music. It considers it appropriate to impose the licensee's proposed
Canadian content levels for program periods comprised of music
composed before 1956 as a condition of licence. The condition
is set out in the appendix to this decision.
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Canadian talent development (CTD)
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24. |
The Canadian Association of Broadcasters (CAB) has developed a
model for financial support for the development of Canadian talent
based on the size of various markets in Canadian cities. Radiolink
indicated that, if licensed, it would not participate in that plan.
Instead, the licensee proposed to devote a minimum of $77,000 over a
seven-year licence term to several initiatives meant to foster the
development of Canadian talent.
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25. |
Radiolink proposed to direct all of the first year’s
expenditure, and a portion of each subsequent year’s allocation,
to the Foundation to Assist Canadian Talent on Record (FACTOR). It
also planned an annual Talent Search, with both cash awards and
recording studio time to be awarded to annual winners. In addition,
expenditures would be made to support touring and travel for
performers at station-sponsored events. Radiolink indicated that no
portion of its CTD allocation would be devoted to the salary of its
Station Promotions and Canadian Talent Co-ordinator, a station staff
position.
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26. |
The Commission finds that the applicant’s commitment to the
support of Canadian talent development initiatives would be
significant and appropriate for the Winnipeg market. It considers it
appropriate to impose these commitments as a condition of
licence, as set out in the appendix to this decision.
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Business plan
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27. |
Radiolink proposed to operate in the Specialty format, limiting
category 2 music to no more than 60% of the music played during each
broadcast week. The remainder of the music to be broadcast would be
drawn from category 3. The applicant described the music as a mix of
easy listening pop and rock, country, jazz and blues, world and some
religious music.
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28. |
The applicant’s business plan indicated that its proposed
service would garner a tuning share of approximately 6% to 6.5%, and
that it would become profitable in its second year of operation,
based on projected advertising revenues of $681,000 in its first
year of operation and $929,000 in the second. Radiolink expressed
its confidence in its ability to launch and operate a new commercial
radio station, stating that "CKVN has served its dedicated
local audience and market for six years in the form of a limited
duration special event station. It has been successful, despite
being restricted in both broadcast duration, and an effective
radiated power of only 14 watts ERP."
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29. |
With respect to the applicant’s business plan and proposed
format, the Commission is satisfied that Radiolink has demonstrated
that there is a demand for nostalgia music in Winnipeg and that the
applicant has the resources to launch and operate such a station.
The Commission has imposed the licensee's commitments to operate in
the specialty format and to limit Category 2 music to no more that
60% of the music broadcast each week as conditions of licence.
These conditions are set out in the appendix to this decision.
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Impact on existing stations
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30. |
As part of its application, Radiolink submitted a market study it
commissioned to assess listener demand and format availability.
According to the study, approximately 64% of the audience for the
proposed station would come from four existing radio stations,
namely CJOB (26%), CKY (13%), CFST (13%), and CBC Radio One (12%).
The study further indicated that an additional 16% of the new
station’s audience would be drawn equally from Winnipeg radio
station CFWM-FM and CBC Radio Two.
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31. |
Radiolink interpreted its study results to mean that, while some
listeners would be attracted to the new station from existing
stations, the single largest audience for the new station would be
drawn from individuals who currently have no preferred radio
station, or who have given up listening to the radio because no
existing station meets their needs.
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32. |
The Commission finds that, while Radiolink would be a new entrant
to the Winnipeg market, its modest financial projections and
proposed niche format would expand programming choice in the market
and serve a segment of the population that is not well-served by
existing stations without having an undue negative impact on
existing Winnipeg commercial radio stations.
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Competitive state of the market
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33. |
The competitive state of a market, as a factor in the Commission’s
consideration of applications proposing new commercial radio
stations, is generally most relevant where the applicant is the
licensee of an existing station in that market. In such cases, the
Commission’s concern is that its licensing actions not create an
undue competitive imbalance in the market. The Commission notes
that, in this case, the applicant would be a new player and would
therefore serve to increase competition in the radio market.
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Conclusion
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34. |
For all of the reasons noted above, the Commission concludes that
implementation of the Radiolink proposal would add programming
diversity to the Winnipeg market, and would not have an undue
negative financial impact on existing Winnipeg commercial radio
stations. It also finds that Radiolink’s proposals are consistent
with the Commission’s regulations and policies for commercial FM
radio stations. It therefore approves the application by
Radiolink, for a new radio station in Winnipeg on the frequency
100.7 MHz (channel 264A) with an effective radiated power of 1,300
watts.
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Issuance of the licence
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35. |
The Commission will issue a licence to CKVN Radiolink System Inc.
with a licence term beginning 1 September 2002 and expiring 31
August 2009 subject to paragraphs 36 to 38 below and to
the conditions specified in the appendix to this decision and
in New licence form for commercial radio stations, Public
Notice CRTC 1999-137, 24 August 1999.
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36. |
The Department of Industry (the Department) has advised the
Commission that, while this application is conditionally technically
acceptable, it will only issue a broadcasting certificate when it
has determined that the proposed technical parameters will not
create any unacceptable interference with aeronautical NAV/COM
services.
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37. |
The Commission reminds the licensee that, pursuant to section
22(1) of the Broadcasting Act, no licence may be be issued
until the Department notifies the Commission that its technical
requirements have been met, and that a broadcasting certificate will
be issued. |
38. |
Furthermore, the licence for this undertaking will only be issued
once the licensee has informed the Commission in writing that it is
prepared to commence operations. The undertaking must be operational
at the earliest possible date and in any event no later than 24
months from the date of this decision, unless a request for an
extension of time is approved by the Commission before 8 August
2004. In order to ensure that such a request is processed in a
timely manner, it should be submitted at least 60 days before this
date. |
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Employment equity
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39. |
In accordance with Implementation of an employment equity
policy, Public Notice CRTC 1992-59, 1 September 1992, the
Commission encourages the licensee to consider employment equity
issues in its hiring practices and in all other aspects of its
management of human resources. |
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Secretary General
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This decision is to be appended to the licence. It is available
in alternative format upon request, and may also be examined at the
following Internet site: http://www.crtc.gc.ca
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Appendix to Broadcasting Decision CRTC 2002-225
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Conditions of licence for the new FM station to serve Winnipeg
licensed to CKVN Radiolink System Inc.
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The licence will be subject to the following conditions of
licence as well as to those set out in New licence form for
commercial radio stations, Public Notice CRTC 1999-137, 24
August 1999.
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1. The licensee shall operate
the station within the specialty format as defined in A review
of certain matters concerning radio, Public Notice CRTC
1995-6, 21 April 1995, as amended in Revised content
categories and subcategories for radio, Public Notice
CRTC 2000-14, 28 January 2000, as amended from time to time. |
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2. The licensee shall ensure
that no more than 60% of all musical selections broadcast during
each broadcast week are selections drawn from category 2 – popular
music. |
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3. The licensee shall, as an
exception to the percentage of Canadian musical selections set out
in sections 2.2(8) and 2.2(9) of the Radio Regulations, 1986: |
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(a) in those periods of category 2 music consisting
exclusively of music composed before 1956, devote a weekly
average of 2% or more of its musical selections from content
category 2 broadcast during those periods to Canadian selections
broadcast in their entirety. The licensee shall identify those
programming periods and the dates of composition of the music
selections broadcast during those periods when requested by the
Commission.
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(b) in those periods of category 2 music consisting of 90% or
more but not exclusively, of music composed before 1956, devote
a weekly average of 10% or more of its musical selections from
content category 2 broadcast during those periods to Canadian
selections broadcast in their entirety. The licensee shall
identify those programming periods and the dates of composition
of the music selections broadcast during those periods when
requested by the Commission.
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For purposes of this condition, the terms "broadcast
week," "content category" and "musical
selection" shall have the meaning set out in section 2 of the Radio
Regulations, 1986.
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4. The licensee shall devote
a minimum of $77,000 in direct expenditures over the licence term,
to support the development of Canadian talent. The annual direct
expenditures will be as follows: |
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Broadcast year
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Direct expenditure |
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Year 1
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$8,000 |
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Year 2
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$9,000 |
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Year 3
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$10,000 |
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Year 4
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$11,000 |
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Year 5
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$12,000 |
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Year 6
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$13,000 |
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Year 7
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$14,000 |
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The expenditure for the first
broadcast year shall be directed in its entirety to the Foundation
to Assist Canadian Talent on Record (FACTOR). Beginning in the
second broadcast year, the annual direct expenditure for Canadian
talent development shall be allocated as follows: |
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· $1,000 to FACTOR
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· $6,000 in studio time to the winner of the annual talent
search. (This amount will increase by $333 in each subsequent
year of the licence term.)
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· $1,000 in cash awards to talent search winners. (This
amount will increase by $333 in each subsequent year of the
licence term.)
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· $1,000 to underwrite tour and travel support for talent to
appear at a station-sponsored event. (This amount will increase
by $333 in each subsequent year of the licence term.)
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5. The licensee shall submit,
concurrent with its annual return, a report on the implementation of
the commitments for Canadian talent development set out in condition
of licence 4. |
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1 These criteria
were first set out in Introductory statement – Licensing new
radio stations which appeared in Decisions CRTC 99-480,
99-481 and 99-482, all dated 28 October 1999. |
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2
These criteria were first set out in Introductory
statement – Licensing new radio stations which appeared in
Decisions CRTC 99-480, 99-481 and 99-482, all dated 28 October
1999. |