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Broadcasting Decision CRTC 2005-15
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See also: 2005-15-1
Ottawa, 21
January 2005 |
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Astral Media Radio inc. and
591991 B.C. Ltd., a wholly owned subsidiary of Corus Entertainment Inc.,
Amqui, Drummondville, Rimouski, Saint-Jean-Iberville, Montréal,
Québec, Gatineau, Saguenay, Trois-Rivières, Sherbrooke, Lévis, Quebec |
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Applications 2004-0279-3,
2004-0302-2, 2004-0280-1
Public Hearing in the National Capital Region
7 September 2004 |
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Exchange of radio assets in Quebec between Astral Media Radio inc.
and Corus Entertainment Inc.
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The Commission approves
the applications by Astral Media Radio inc. (Astral) and 591991
B.C. Ltd., a wholly owned subsidiary of Corus Entertainment Inc.
(hereinafter referred to as Corus), for authority to acquire several
radio undertakings in Quebec as part of an exchange of assets, subject
to the terms and conditions set out in this decision. |
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The Commission is of the
view that the concerns identified in this decision will be offset by the
benefits of an approval subject to the terms and conditions set out
herein. Astral and Corus have 30 days to confirm they will complete the
transaction according to the terms and conditions herein. |
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A list of the stations
included in the exchange, as well as the conditions of licence to which
each station will be subject, is appended to this decision. |
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Background
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1. |
In Transfer of control
of 3903206 Canada Inc., of Telemedia Radio Atlantic Inc. and of 50%
of Radiomedia Inc. to Astral Radio Inc., Broadcasting Decision
CRTC 2002-90,
19 April 2002 (Decision 2002-90),
the Commission approved applications by Astral Media inc. (Astral
Media) for authority to acquire the effective control of 3903206 Canada
Inc., of Telemedia Radio Atlantic Inc. and of 50% of Radiomedia Inc.
(Radiomedia) by acquiring all of the shares held directly or indirectly
by Telemedia Radio Inc. (Telemedia) in these companies. |
2. |
Decision 2002-90
was subject to two conditions precedent, one of which concerned the
transfer of station CFOM-FM Lévis to a third party unaffiliated with
Astral Media. Astral Media committed to divest itself of CFOM-FM in
accordance with the Commission’s policy on common ownership of radio
stations within a single market, as set out in Commercial Radio
Policy 1998, Public Notice CRTC 1998-41,
30 April 1998 (Commercial Radio Policy). Consistent with Decision
2002-90,
Entreprises Radio Etchemin inc. (Radio Etchemin), licensee of station
CFOM-FM, is currently controlled by a trustee, Mr. Paul-Émile Beaulne,
pursuant to a voting trust agreement approved by the Commission on
25 October 2002. |
3. |
In Decision 2002-90,
the Commission noted that on 21 December 2001, pursuant to section 92
of the Competition Act, the Commissioner of Competition had
filed an application with the Competition Tribunal opposing the proposed
acquisition of the eight Telemedia French-language radio stations
located in Quebec and of Telemedia’s 50% ownership interest in Radiomedia.
Following Decision 2002-90,
the Commissioner of Competition expressed concerns regarding the potential
impact of this transaction on competition in the French-language radio
industry in Quebec. Subsequently, Astral Media, Telemedia and the
Commissioner of Competition entered into a consent agreement dated
7 August 2002 (the consent agreement) requiring Astral Media to sell
certain of its French-language AM radio stations in Quebec. The consent
agreement was registered with the Competition Tribunal on 3 September
2002, and terminated the application filed by the Commissioner of
Competition with the Competition Tribunal. |
4. |
In Acquisition of radio
assets in Quebec, Broadcasting Decision CRTC 2003-205,
2 July 2003, the Commission denied the application by TVA
Group Inc. and Radio Nord Communications Inc. (the TVA/Radio Nord
transaction) for authority to acquire radio undertakings, including
CFOM-FM and the AM stations that were the subject of the consent agreement.
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5. |
Following the denial of the
TVA/Radio Nord transaction, applications were filed by Astral Radio inc.
and by Paul-Émile Beaulne, on behalf of 2964-2097 Québec Inc. and
various companies to be incorporated (the Morin-Chamberland group), for
authority to acquire the assets of certain AM radio undertakings and
radio networks held by Astral Radio inc., which included, among others
things, the assets of CFOM-FM and the AM radio stations that were the
subject of the consent agreement. At the applicant’s request, given the
withdrawal of the Morin-Chamberland group, the Commission withdrew these
applications from the agenda of the public hearing of 16 February 2004. |
6. |
Astral Media Radio inc.
(Astral) is now proposing a transaction that involves an exchange of
assets with 591991 B.C. Ltd., a wholly owned subsidiary of Corus
Entertainment Inc. (hereinafter referred to as Corus). These
applications constitute a third attempt to satisfy the terms of the
consent agreement and the condition precedent regarding the sale of
radio station CFOM-FM. |
7. |
Astral is currently the
licensee of 30 AM and FM radio stations in Quebec, including six digital
stations. Each of these stations airs network programming from one of
the following networks: Énergie, which is directed to listeners in the
18-34 age group and offers a music mix based on contemporary hits;
RockDétente, which is aimed at listeners in the 25-54 age group and
offers light music for adults; Radiomédia, which targets listeners in
the 50-plus age group with a talk format focussed on news and current
events intended for Astral’s AM and FM stations; and the new network,
Réseau Boom FM, which is directed at baby-boomers in the 40-54 age group
and focuses on hits from the 60s and 70s. Astral also operates several
radio stations in Atlantic Canada, and is a major presence in the
French-language specialty and pay TV sector and in the outdoor
advertising sector. |
8. |
Corus is one of the largest
broadcasting groups in Canada, with a significant presence in all
provinces except the Atlantic provinces. Corus owns 58 radio stations in
Canada, including seven digital stations. Two AM and ten FM stations are
located in Quebec, six of which are located in the greater Montréal area
and six elsewhere in Quebec. Corus also operates numerous specialty
services. |
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The Astral and Corus applications
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The transaction
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9. |
In this transaction, Corus and
Astral each agreed to exchange radio assets with the other, each group
of radio assets having a value that they deemed to be equivalent to
$11 million. The French-language stations Corus proposed to acquire are: |
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CKAC Montréal
CHRC Québec
CJRC Gatineau
CKRS Saguenay
CHLN Trois-Rivières
CHLT Sherbrooke
CFOM-FM Lévis
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10. |
Corus also sought authority to
acquire the assets of English-language radio station CKTS Sherbrooke;
digital radio stations CKAC-DR-2 Montréal and CJRC-DR-2 Gatineau; the
Radiomedia French-language information network; the CHLN Trois-Rivières
network, in order to broadcast its programming on CKSM Shawinigan; the
Montréal Canadians hockey network; and the Montréal Alouettes network.
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11. |
Corus proposed no new tangible
benefits for the stations involved in this transaction, which have been
unprofitable on a consolidated basis for the past three years. Corus
proposed, however, to retain responsibility for the remaining
tangible benefits related to the stations acquired from Power
Broadcasting Inc.1 and
that are the subject of the current transaction. |
12. |
At the 7 September 2004 public
hearing , the Commission also examined an application by Diffusion
Métromédia CMR Inc., a wholly owned subsidiary of Placements Belcand
Mont-Royal inc., itself a wholly owned subsidiary of Corus, to
amend the broadcasting licence for its radio programming undertaking
CHMP-FM (formerly CKOO-FM) Longueuil by adding a condition of licence
authorizing it to broadcast predominantly spoken-word programming
and deleting the condition of licence pertaining to the broadcast
of English-language vocal music selections. This application is the
subject of CHMP-FM – Licence Amendment, Broadcasting Decision
CRTC 2005-16
(Decision 2005-16)
released today. |
13. |
The stations Astral proposed to
acquire are: |
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CFVM-FM Amqui
CJDM-FM Drummondville
CJOI-FM Rimouski
CIKI-FM Rimouski and its transmitter CIKI-FM-2
Sainte-Marguerite-Marie
CFZZ-FM Saint-Jean-Iberville
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14. |
Consistent with the Commercial
Radio Policy, Astral proposed tangible benefits of $660,000,
representing 6% of the value of the proposed transaction. These benefits
would be distributed as follows: |
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$335,000 to Fonds RadioStar over seven years in equal annual
payments;
$220,000 to MusicAction over seven years in equal annual payments;
and
$105,000 to The Harold Greenberg – Astral Media Fund to promote
excellence in French-language Canadian song.
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15. |
Astral proposed that the
amounts allocated to the Harold Greenberg – Astral Media Fund be used to
finance three annual awards of $5,000 each, over seven years, to the
author-composer of the song of the year in each of the musical formats
offered by Astral’s three FM networks. |
16. |
Astral also proposed to retain
responsibility for all remaining tangible benefits relating to previous
transactions involving the stations that Corus proposes to acquire. |
17. |
Astral also requested a condition
of licence for stations CFVM-FM Amqui and CFZZ-FM Saint-Jean-Iberville
authorizing these stations, which broadcast in the "oldies"
format, to reduce the minimum percentage of Canadian musical selections
to 30%, as provided for in Regulations Amending the Radio
Regulations, 1986 – Commercial Radio Programming, Public
Notice CRTC 1998-132,
17 December 1998 (Public Notice 1998-132).
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18. |
Astral also applied for a
licence to operate a French-language radio network for the purposes of
broadcasting the football games of the Montréal Alouettes during the
2004, 2005 and 2006 seasons. The proposed radio network would originate
from CKAC Montréal. The assets of this network would subsequently be
transferred to Corus as part of the transaction described herein. |
19. |
Finally, Astral filed an application
for authority to effect a corporate reorganization related to the
assets of the radio programming undertaking CFOM-FM Lévis. This application
is the subject of Asset Acquisition – intra-company reorganization,
Broadcasting Decision CRTC 2005-17
issued today. |
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The Corus proposal
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20. |
Corus stated that the
acquisition of eight of Astral’s stations, and specifically CKAC
Montréal and CFOM-FM Lévis, is part of a development strategy aimed at
allowing the AM stations in question to remain in operation and to
continue offering relevant local service. Corus stated that its presence
in markets such as Saguenay, Trois-Rivières, Sherbrooke and Gatineau,
even if on the AM band, was by far preferable to owning FM stations that
are profitable, but are some distance from the major markets, such as
those in Amqui or Rimouski. |
21. |
Corus took the position that
general interest AM radio is a thing of the past, at least in major
markets, and that it is important that each AM station today develop a
niche for itself. The applicant expressed the view that an all-news
format would give the regional stations a much greater local presence
than they now have. |
22. |
With respect to CKAC Montréal,
Corus proposed to transform the station into a spoken-word station
primarily oriented to sports and health. The applicant proposed to phase
in this change in stages over a period of some three years. According to
Corus, CKAC’s predominantly sports-based programming would enable the
station to develop a niche that is not covered on a systematic basis by
the stations currently broadcasting in Montréal. Corus took the view
that this orientation would position CKAC’s programming as complementary
to existing radio programming in Montréal, including that offered by its
spoken word or all-news stations CHMP-FM and CINF (Info690). As a
result, according to the applicant, CKAC would no longer air open-line
programming dealing with controversial political topics. |
23. |
With respect to CHRC Québec,
Corus indicated that this station has had some difficult years owing to
the growth of predominantly spoken-word programming on local FM
stations. Corus noted that because of the station’s current orientation,
CHRC has for some time been Québec’s sports radio station and that it
intended to build on this positioning. According to Corus, programming
that is strongly focussed on sports and current affairs will fill a gap
that no other station seems interested in filling. |
24. |
With respect to CJRC Gatineau,
CHLT Sherbrooke and CHLN Trois-Rivières, Corus stated its intention to
transform these stations into information stations, in the broad sense
of the term, and to offer network programming with which the public is
already familiar. Corus added that local information would remain an
important service for local communities, and would be provided from
local newsrooms with a minimum of three journalists per station. |
25. |
For each regional station,
Corus explained that, in addition to its own programs, it could also
draw from three sources of programming to develop a service adapted to
each market: news from CINF (Info690); programming from CKAC focusing on
sports, health and fitness; and public affairs and other discussion
aired by CHMP-FM. Each market would thus have access to a mix of
programs that would be determined based on the needs of each community.
As the Trois-Rivières, Sherbrooke and Gatineau stations have not been
profitable for a long time, a new programming focus, cost-cutting
measures and the three proposed sources of material could, according to
Corus, minimize future losses. In the case of CKRS Saguenay, given its
current success, Corus did not see a need to change its general interest
orientation. |
26. |
With respect to CKTS, an
English-language AM station in Sherbrooke, almost all the programs it
airs currently come from CJAD Montréal, owned by Standard Radio Inc..
Corus proposed that its programming orientation remain the same,
although Corus could provide CKTS with programming from CINF and CINW in
Montréal and reports from the Corus Deep Sky network. |
27. |
As far as CFOM-FM Lévis is
concerned, Corus did not propose significant changes to its programming
in the near future, but wanted to explore potential synergies arising
from the joint ownership of CFOM-FM and CHRC Québec, where applicable. |
28. |
In its applications, Corus
proposed to amend the number of hours of local programming on each
French-language AM station it proposed to acquire. Specifically, the
applicant proposed to amend CKAC Montréal’s existing condition of
licence, which requires at least 31 hours of local programming and 16
hours and 36 minutes of news each broadcast week. The applicant proposed
to replace it with a condition of licence that would require a minimum
of 40 hours of local programming per week, including news. |
29. |
For stations CHRC, CKRS, CHLN,
CHLT and CJRC, Corus proposed a condition of licence requiring a minimum
of 20 hours per week of local programming, including news. This
condition of licence would replace the existing conditions of licence
for the three stations, which currently require: |
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- CHRC – 51 hours of local programming and 13 hours and two minutes
of news;
- CHLN – 36 hours and 30 minutes of local programming and 12 hours
and 34 minutes of news; and
- CHLT – 35 hours of local programming and 14 hours and 12 minutes
of news.
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30. |
Corus stated that CKRS and CJRC
do not have conditions of licence related to local programming, but that
these two stations currently broadcast the following: |
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- CKRS – 45 hours of local programming including 3 hours and 41
minutes of local news; and
- CJRC – 36 hours and 30 minutes of local programming, including 4
hours and 45 minutes of local news.
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31. |
In response to concerns raised
by interveners, prior to the public hearing, Corus submitted program
schedules outlining the applicant’s proposals with respect to local
programming and the distribution of news programming. Corus provided
additional information on these program schedules at the 7 September
2004 hearing. |
32. |
These program schedules
indicated the following proposed hours of local programming on the
various stations: |
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CKAC – 98.5 hours per week;
CKRS – 43.5 hours per week;
CJRC and CHLT – 27 hours per week; and
CHRC and CHLN – 37 hours per week.
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33. |
In the case of CKAC, the
program schedule indicated that a large part of its local programming
would be devoted to sports, including play-by-play broadcasts,
interviews, features and commentary. The CKRS schedule indicated that
local programming would include news broadcasts, public affairs and
sports. |
34. |
According to the schedules
submitted for CJRC, CHLT, CHRC and CHLN, their local programming would
include 25 hours of continuous news during the week and 2 hours of news
on the weekend. For CHRC and CHLN, local programming would also include
10 hours of locally produced programming which would then be aired over
the network: the program Bien vivre with Dr. Gilles Lapointe
would be broadcast by CHRC, and the program Un psy à l’écoute
with Dr. Mailloux would be broadcast by CHLN. |
35. |
Corus explained that the news
broadcast continuously during peak periods would be produced locally,
and that, generally, 60% of news would be local and regional and 40%
would be national and international. |
36. |
The newscasts originating
outside of the programming wheels of the stations would be network
newscasts from CKAC Montréal, and would be prepared by the three
journalists assigned to CKAC. As a result, according to Corus, the three
journalists would not be [translation] "specifically and solely assigned
to CKAC, but would also provide news for the regional stations when that
news is not local news." |
37. |
Corus provided a description
of the news staff that would be in place in its various stations after
the transaction. Corus proposed to implement a new information entity in
Montréal and pool all resources rather than have three separate
newsrooms for CKAC, CHMP-FM and CINF (Info960). This new entity, under
the heading "Corus – Nouvelles," would include 17 journalists, that is,
11 for CINF, three for CKAC, two for CHMP-FM and one for CKOI-FM. In
Québec, there would be four journalists for the two stations, CHRC and
CFOM-FM. CJRC, CKRS and CHLT would each have three journalists, and CHLN
would have four journalists. |
38. |
According to Corus, there would
always be at least one journalist at each station, seven days a week.
The journalists at each station would be responsible for interrupting
regular programming in the event of emergencies or to issue weather
alerts. |
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Astral’s proposal
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39. |
According to Astral,
affiliating the stations acquired with the Énergie, RockDétente and Boom
FM networks would strengthen these radio networks and extend their
coverage in Quebec, thus making French-language FM radio more able to
compete with other media and, in particular, to succeed in the national
advertising market, a market largely dominated by television. |
40. |
Astral expressed its intention
to affiliate the five FM radio stations acquired from Corus with the
three existing radio networks, as follows: CFVM-FM Amqui and CFZZ-FM
Saint-Jean-Iberville with Boom FM, CJDM-FM Drummondville and CIKI-FM
Rimouski with Énergie, and CJOI-FM Rimouski with RockDétente. Astral
considers that each of these stations could then benefit from belonging
to an established network, ensuring their development and growth,
[Translation] "while maintaining and even strengthening their local
roots." |
41. |
With respect to the diversity
of musical programming in the markets affected by the transaction,
Astral maintained that musical diversity would not be affected because
three of the five radio stations, that is, CJDM-FM, CIKI-FM and CJOI-FM,
would retain their existing musical format. |
42. |
The other two stations, CFVM-FM
and CFZZ-FM Saint-Jean-Iberville, would be affiliated with Boom FM
and would replace their current adult contemporary format with a nostalgia
music format. To accommodate the transfer of CFVM-FM and CFZZ-FM to
the Boom FM network, Astral requested that a condition of licence
be added that would authorize these nostalgia format music stations
to reduce the minimum percentage of Canadian music selections to 30%,
as permitted by Public Notice 1998-132. |
43. |
Since the sale of the AM
stations would put an end to the Astral stations’ source of information
programming, Astral made a commitment to create its own news service,
which, according to the applicant, would have a positive impact on the
diversity of information voices in Quebec. |
44. |
Astral’s proposals for
information programming would include subscribing to press services. It
would establish an Intranet network that could be accessed by all
stations affiliated with the three networks, so that information could
be archived and shared in real time. Reports prepared by a given
station’s news staff could thus be made available across Quebec and
broadcast by any station that deems the information to be relevant to
its audience. Astral would also establish an information policy with
common principles that would apply to all of its networks and stations. |
45. |
Astral specified that it
expects that the five stations would, on average, have almost the same
number of hours of weekly news programming as is currently provided,
that is, |
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2 hours and 49 minutes for CJOI-FM Rimouski (RockDétente),
including 2 hours and 25 minutes during the week and 24 minutes on the
weekend;
2 hours and 49 minutes for CIKI-FM Rimouski and CJDM-FM
Drummondville (Énergie), including 2 hours and 42 minutes during the
week and 7 minutes on the weekend; and
2 hours and 38 minutes for CFVM-FM Amqui and CFZZ-FM Saint-Jean-Iberville
(Boom FM), including 2 hours and 20 minutes during the week and 18
minutes on the weekend.
|
46. |
Generally, approximately 60% of
news programming would be local and regional news, with the remaining
40% devoted to provincial and national news shared among all of the
network’s stations. |
47. |
Astral stated that the
transaction would result in an overall increase in news staff. According
to the tables submitted by Astral, there are currently 65 journalists
assigned to news coverage for all of the Astral and Corus stations in
Quebec. Astral currently employs a total of 42 journalists, 29 of whom
work at Radiomédia. Corus currently has 23 journalists in Quebec.
Following the transaction, Astral would employ 34 journalists and Corus
36, for a total of 70 journalists. |
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Interventions
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48. |
There was a great deal of
interest in the Astral-Corus transaction. Over 6,500 interventions were
received from various organizations, associations and individuals from
the regions concerned. The majority of these opposed the proposals by
Corus. The interveners included municipalities, unions, federal,
provincial and municipal elected officials, chambers of commerce and
other organizations. |
49. |
The Commission has taken into
account all interventions received. In particular, interveners commented
on the decrease in local programming, the need to reflect local
communities, the change in CKAC’s orientation, the "Montréalization" of
radio in Quebec, the value of the transaction, the tangible benefits and
musical diversity. |
50. |
The Fédération nationale des
communications (the Fédération) argued that the exchange of assets
between Astral and Corus would accentuate the "Montréalization of the
airwaves". More specifically, the Corus proposal relating to
predominantly spoken-word stations could prove harmful for local
communities were the Commission to allow a reduction in the number of
hours of programming produced in the regions and its replacement with
network programming. The change in CKAC’s programming orientation from
that of a general interest station to that of a station primarily
focused on sports and health should not, according to the Federation,
relieve the broadcaster of its obligation to provide adequate service to
local communities, including information. The intervener also argued
that, although Astral’s commitment to operate its own newsrooms could
improve the situation, the Commission should require Astral to adhere to
its commitment to hire the news staff necessary to ensure that each
station has a quality information service. |
51. |
The Syndicat des employé(e)s
de CHRC Quebec opposed the Corus application, maintaining that an
approval would dilute not only the service offering but also the quality
of private sector radio information in Quebec, particularly in the
regions. According to the union, the reduction in local programming and
the change in programming orientation proposed by Corus will confine
CHRC to a niche that is too narrow for the Québec market. |
52. |
The Coopérative de travail en
télévision TéléCentre Drummond also expressed its concern about the "Montréalization"
of information programming and the lack of a local development plan. |
53. |
Several Members of Parliament
and Members of the Quebec National Assembly intervened in the public
process to express their concerns as to the ability of the stations in
their regions to continue reflecting their communities. For example,
Serge Cardin, the MP for Sherbrooke, appeared at the hearing to oppose
the Corus application, stating that regional information is essential
for a community because it creates a true sense of belonging. According
to Mr. Cardin, a significant decrease in the number of hours of regional
broadcasts and in the number of jobs, particularly among announcers and
journalists at CHLT Sherbrooke, could accelerate the station’s decline. |
54. |
The Syndicat des employé(e)s
de CJAB-FM et CKRS-AM also opposed the Corus application, primarily
because of the significant decrease in local production at CKRS.
According to the union, the Corus plan is a move toward a
standardization of information voices, sources and content in the
province because it reduces the number of local programs and employees
working in information. The intervener also expressed concern that
regional-specific issues would be absent from these "homogenized",
newscasts province-wide. The union proposed that the Commission approve
a very short licence term to allow Corus to appear before the Commission
at an early date, to discuss any improvements or problems that may
arise. |
55. |
The Conseil provincial du
secteur des communications (CPSC) of the Canadian Union of Public
Employees (CUPE) and the Syndicat des employés de CKAC intervened to
oppose the applications by Astral and Corus. The interveners reminded
the Commission that CKAC Montréal, created in 1922, is the world’s
oldest private sector Francophone radio station. The unions submitted
that the station has established an enviable reputation as being among
the best providers of information and that it forms part of the cultural
heritage of Quebec and Canada. The interveners expressed their concern
that the elimination of the newsroom and the change in CKAC’s program
orientation would lead to the elimination of a competitor, to the
benefit of other Corus-owned stations in the Montréal market. |
56. |
The Fédération professionnelle
de journalistes du Québec (FPJQ) also opposed the purchase of CKAC and
the Radiomédia network by Corus. According to the FPJQ, if the proposal
by Corus were approved, the CKAC newsroom would be eliminated and
nothing would replace it. Regional stations would be forced to reduce by
half their production of local programming and would have to move into
an all-news format, with staff reduced to the point that their mission
would be impossible. The information produced by Corus using its own
staff would replace the Quebec, Canadian and international news for
which Corus would instead rely on agencies such as the Canadian Press. |
57. |
The Association québécoise de
l’industrie du disque, du spectacle et de la vidéo (ADISQ) and the Union
des artistes (UDA) did not oppose the Astral and Corus applications,
subject to their comments on, among other issues, the value of the
transaction, the tangible benefits proposed by the applicants, the place
given to culture in programming, and musical diversity. ADISQ questioned
the value attributed to the transaction, and submitted that some
elements of the exchange of assets agreement between Astral and Corus
were not accounted for in the asset exchange valuation, despite the fact
that they would constitute benefits derived from the exchange for both
parties. The ADISQ also recommended that the tangible benefits amounting
to 1% of the value of the transaction proposed in Astral’s application
be paid to MusicAction rather than to the Harold Greenberg – Astral
Media Fund. According to the intervener, the Harold Greenberg – Astral
Media Fund has much less presence in Canada’s Francophone music industry
than other organizations, such as MusicAction. It considered MusicAction
to be far better able to manage the type of project proposed by Astral
than the Harold Greenberg - Astral Media Fund. |
58. |
ADISQ pointed out that the
Corus application did not include any concrete plan to include cultural
information in the AM stations’ programming. According to ADISQ, AM
radio has an important role to play in showcasing artists’ careers by
informing the public of the growth in artistic activity, particularly
through magazine programs focusing on the cultural scene. Given that the
exchange of assets would provide Astral with an opportunity to
consolidate its dominant position in the Quebec radio industry by
extending its networks into new markets, ADISQ asked the Commission to
impose the necessary measures on Astral to ensure that the problem of
musical diversity in radio is not further aggravated. |
59. |
Mr. Richard Desmarais also
opposed the proposed transaction, submitting that there are other ways
to produce AM radio in Montréal and the regions than that proposed by
Corus. He added that it would be better to have regional owners
affiliated with a network originating with CKAC to prevent the "Montréalization"
of the airwaves. |
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Applicants’ replies
|
60. |
In response to the
interventions concerning the transaction, Corus reminded the interveners
of the financial status of the Radiomédia stations and CFOM-FM which,
according to Corus, have reported, as a group, major losses amounting to
$500,000 per month and whose situation continues to worsen. Corus added
that, because of this financial situation, a return to the past is
impossible as is any thought of maintaining the status quo. |
61. |
Corus stated that the
programming of all regional stations would be completely local during
peak periods, that is, in the morning, noon and late afternoon, which
represents 85% of total listenership. This local programming would be
oriented toward news and other information required by the communities
served. According to its proposal, Corus would make available three
sources of programming: CKAC, CINF (Info690) and CINW Montréal, which
would, in Corus’ words, [Translation] "enrich regional radio
programming." According to Corus, information sharing and programming
would be multi-directional: elements of programming from Montréal would
be offered in the regions and the regional stations could supply
programming to the Corus stations in Montréal. |
62. |
In response, Corus maintained
its proposal for the number of hours of local programming to be
established by condition of licence for CKAC, that is, 40 hours, and for
the other stations, 20 hours. However, in response to the concerns
regarding the hours of local programming, Corus committed to broadcast a
minimum of 27 hours per week of local programming on stations other than
CKAC during the first two years of operation. Corus also specified that
the number of hours in the program schedules was indicative of an
intention on its part: |
|
[Translation] It is a plan that we have submitted. As I said, we
are going to do everything possible to put it into effect,
obviously, it is part of our plan. There are, however, three levels:
there is this intention of ours, there is the formal commitment, and
then there is the condition of licence.
|
63. |
In its response to the interveners,
Astral recalled the lengthy process involved in selling Radiomedia’s
assets that was triggered by the opposition of the Commissioner of
Competition to the Astral-Télémédia transaction authorized by the
Commission in Decision 2002-90.
Astral also reiterated that the value of the assets exchanged in this
transaction has been established at $11 million, net of liabilities
and debt. If Astral had informed Corus that it was obliged to assume
any liabilities in terms of tangible benefits related to prior transactions,
Astral considered that the value of the transaction would have been
reduced by an equivalent amount. |
64. |
With respect to local
programming, Astral reminded the interveners that private sector
commercial FM stations servings markets other than single-station
markets are required to devote at least one-third of the broadcast week,
or 42 hours, to local programming if they want to solicit and air local
advertising. Nevertheless, Astral committed to broadcasting at least 63
hours of local programming per week in the case of CJOI-FM and at least
42 hours of local programming per week for each of the other four
stations acquired from Corus, even if two of them are operated in a
single-station market. |
65. |
With respect to musical diversity,
Astral pointed out that, in Decision 2002-90,
it was required by condition of licence to file a report with the
Commission on the diversity of musical formats aired by Énergie and
RockDétente. In the event of an approval, Astral made a commitment
to include data on Boom FM in future versions of this report. |
|
The Commission’s analysis and determinations
|
|
AM radio in Quebec
|
66. |
The Commission notes that the
evolution of French-language private radio in Quebec over the last
decade has been characterized by an increasing difficulty for AM radio
to maintain its position, given the ever-increasing attraction of FM
radio. The Commission notes in this respect that, overall, AM stations
in Quebec have not been profitable in the past five years, incurring
steady annual losses in their profit before interest and tax (PBIT) in
the range of $4.8 million to $6.4 million. |
67. |
The seven AM stations included
in the proposed transaction had PBIT losses amounting to 1.9 million in
2003, i.e. a PBIT margin of -10%. A preliminary analysis of the most
recent financial data for these stations shows that the losses have
increased to $3.9 million in 2004, i.e. a PBIT margin of -24%. Moreover,
if the results of CKAC are excluded, it becomes clear that the financial
position of the remaining six stations has further deteriorated over the
last four years. On a consolidated basis, these six stations reported a
PBIT margin of -33% in 2004, compared with a margin of -16% in 2001. By
way of comparison, the PBIT margin for the commercial AM French-language
radio industry was -8% in 2001 and -11% in 2003. |
68. |
In addition to the increasing
financial difficulties, the AM stations that are involved in this
transaction have gone through nearly three years of uncertainty with
respect to their ownership and programming orientation, following
the transaction that was the subject of Decision 2002-90
and the consent agreement. |
|
The trustee’s concerns
|
69. |
The Commission notes that
the present transaction is Astral’s third attempt to put an end to
the uncertainty that followed Decision 2002-90
and the consent agreement. In this respect, the Commission
notes the concerns raised by the trustee during the public hearing
as to the situation that currently exists in the stations that are
the subject of the transaction. The trustee stated that he had seen
the situation at the stations in question deteriorate in the past
decade and that this deterioration had gained momentum since the start
of uncertainty regarding the ownership and direction of these stations.
The trustee explained that, when he agreed to act as trustee for CFOM-FM
and the AM stations, he had expected the job to last only a few months
or a year at most. This was not the case, however, and the matter
has remained unresolved since the transaction that was the subject
of Decision 2002-90
and of the consent agreement. |
70. |
The trustee pointed out that
the duration of the period of uncertainty and the negative human and
financial repercussions were unprecedented. He added that it was his
duty as trustee to point out the existence of an incontrovertibly urgent
need for action and to note that the consequences of a new period of
uncertainty, in human and financial terms, could be devastating. |
|
The Commission’s conclusions
|
71. |
The Commission is of the view
that the difficult and deteriorating circumstances of these stations are
adversely affecting their operations, the communities they are licensed
to serve, their employees and the development of the AM radio industry
in Quebec. The Commission considers that this unfavorable situation must
be resolved as quickly as possible. |
72. |
The Commission agrees, however,
with the majority of the interveners that the proposals by Corus and
Astral cannot be approved as submitted. The Commission is particularly
concerned by how little local programming was proposed for the AM
stations in question, and by the lack of reflection of the communities
they serve. |
73. |
Accordingly, while the
Commission considers it appropriate that the transaction be approved, in
order to put an end to the uncertainty in which the AM stations find
themselves, it has imposed certain safeguards designed to mitigate the
weaknesses of the proposal and the further concerns to which the
transaction gives rise. Moreover, in order to allow it to assess, in a
timely manner, the effectiveness of the measures that have been put in
place, as well as to review progress with the licensee, the Commission
has decided to issue the new licences for the AM stations on a short
term basis. |
74. |
In summary, the Commission
finds that approval of the proposed transaction will, on balance, serve
the public interest when taken together with the following measures:
|
|
specific conditions of licence and expectations;
further conditions of licence specifying incremental requirements
that will be phased in over a transition period; and
the issuance of short-term licences.
|
75. |
Consequently, and subject to
the terms and conditions set out in the following paragraphs, the
Commission approves the applications for authorization to acquire
the assets of the broadcasting undertakings listed in Appendix 1 to this
decision. |
|
The Corus proposal
|
|
a) Hours of local programming
|
76. |
Corus proposed to
significantly reduce the hours of local programming for the
French-language AM stations acquired, particularly in the regions. In
spite of the questions from the Commission and the concerns raised by
the interveners, Corus continued to maintain its original proposal to
broadcast, by condition of licence, a minimum of 20 hours of local
programming per week, including news, on CHRC Québec, CKRS Saguenay,
CHLN Trois-Rivières, CHLT Sherbrooke and CJRC Gatineau, and a minimum of
40 hours per week on CKAC Montréal. |
77. |
Despite the fact that the
program schedules proposed by Corus seemed to show a significant
increase in local programming compared with the original proposal for
each of the French-language AM stations in question, the Commission
notes that, at the hearing, the applicant stated that the number of
hours of local programming shown on the program schedules merely
reflected its intention or a project that it would seek to implement by
all means necessary. |
78. |
In response to the concerns
raised by the interveners and to the Commission’s questions at the
hearing aimed at seeking firmer commitments, Corus committed to
broadcasting on the regional stations a minimum of 27 hours per week of
entirely local programming, including two hours of local programming on
the weekend, over the first two years of operation. Corus explained,
however, that it was unable to accept this commitment as a condition of
licence. According to Corus, [Translation] "There is this intention of
ours, there is a formal commitment, and then there is the condition of
licence." |
79. |
The Commission considers that
the additional commitments made by Corus do not respond in a
satisfactory manner to the concerns related to community reflection
raised by the interveners and by the Commission. |
80. |
The Commission notes that
paragraph 188 of the Commercial Radio Policy emphasizes the importance
of local programming to local communities: |
|
Section 3(1)(i)(ii) of the Act states that the programming
provided by the Canadian broadcasting system should be "drawn from
local, regional, national and international sources." The radio
industry has historically been the sector of the broadcasting system
that has provided the lion’s share of programming addressing local
issues and concerns. In many smaller communities, local radio
stations are the only daily source of local news, information and
emergency messages.
|
81. |
Given the importance of local
programming, the Commercial Radio Policy summarizes in paragraph 198,
the Commission’s approach: |
|
The Commission will therefore maintain its one-third local
programming guideline with respect to FM stations in competitive
markets. It will also generally maintain its case-by-case approach
for AM stations. In the future, all AM stations will be asked to
make commitments in their licence renewal applications to a minimum
level of local programming, and to describe how they will provide
sufficient service to their local communities. Conditions of licence
will be imposed in cases where the Commission deems them to be
appropriate.
|
82. |
In light of its Commercial
Radio Policy, the Commission finds that the commitments by Corus to
local programming to be broadcast on its French-language AM stations are
insufficient and represent a very significant and unacceptable reduction
in existing local programming levels. |
83. |
The Commission believes it is
in the public interest to require local programming levels higher than
those proposed by Corus. Further, given the fragility of the AM
stations, the Commission also considers it appropriate that these
programming levels be applied on an incremental basis over the licence
term. The required levels of local programming reflect in part the
program schedules filed by Corus and also take into account the needs
expressed by the interveners. |
84. |
Accordingly, by condition of
licence, CKAC Montréal shall broadcast: |
|
(i) during the period ending 2 September 2006, at least 60 hours
of local programming in each broadcast week;
|
|
(ii) during the period commencing 3 September 2006 and ending 1
September 2007, at least 70 hours of local programming in each
broadcast week; and
|
|
(iii) during the period commencing 2 September 2007 and ending 31
August 2009, at least 80 hours of local programming in each
broadcast week
|
85. |
By condition of licence,
each of the stations CJRC Gatineau, CHRC Québec, CHLT Sherbrooke, CHLN
Trois-Rivières and CKRS Saguenay shall broadcast: |
|
(i) during the period ending 2 September 2006, at least 27 hours
of local programming in each broadcast week;
|
|
(ii) during the period commencing 3 September 2006 and ending 1
September 2007, at least 32 hours of local programming in each
broadcast week; and
|
|
(iii) during the period commencing 2 September 2007 and ending 31
August 2009, at least 37 hours of local programming in each
broadcast week.
|
86. |
For the purposes of these conditions
of licence, "broadcast week" has the same meaning as that
set out in section 2 of the Radio Regulations, 1986, and "local
programming" has the same meaning as the definition of local
programming set out in Policies for Local Programming on Commercial
Radio Stations and Advertising on Campus Stations, Public Notice
CRTC 1993-38,
19 April 1993, and reiterated in the Commercial Radio Policy, as amended
from time to time. |
|
b) Community reflection
|
87. |
The Commission also has
concerns regarding the type of local programming proposed by Corus. The
Commission notes that, with the exception of CKAC and CKRS, the local
programming proposed by Corus consists largely of an all-news component
and programs produced locally for certain stations for network
transmission, such as Un psy à l’écoute hosted by Dr. Mailloux, a
program produced in Trois-Rivières, and Bien vivre, hosted by Dr.
Gilles Lapointe from Québec. |
88. |
The all-news component would
include news produced locally and aired during peak periods. These
all-news segments would specifically include local information, arts and
culture news, business segments, community bulletins and sports
information. While the Commission recognizes the value of this proposal
in terms of its contribution to local reflection, it is of the view that
the role of a regional broadcaster should not be limited to broadcasting
news, but should also contribute to the production of local non-news
programming. Moreover, Corus acknowledged that non-news programming,
particularly in the case of station CKRS Saguenay, has contributed to
its high ratings. It is of note that Corus does not plan to change that
particular station’s programming orientation. |
89. |
The Commission recognizes that
the two local programs produced regionally for network broadcast qualify
as local programming for the originating station, even though they are
network broadcasts. However, the Commission is of the view that this
type of general interest programming is not necessarily consistent with
one of the objectives of the definition of local programming, that is,
to reflect the community served by the station. This definition
specifies, among other things, that in their local programming,
licensees must include spoken-word material of direct interest to local
communities, such as local news, weather and sports, as well as the
promotion of local events and activities. As pointed out by numerous
interveners, this type of programming produced for the network would not
allow radio stations to play a central role in reflecting the interests
and concerns of the communities they serve. |
90. |
The Corus proposals regarding
news and information programming broadcast in off-peak periods during
the week and on weekends also raised concerns on the part of
interveners. The Commission shares these concerns. AM stations are often
the only daily source of local news and information, hence the
importance of programming specifically designed for the community served
by the station in question. In this respect, the Commission notes that,
with the exception of CKAC, according to the program schedules
submitted, locally-produced news bulletins would be limited to peak
listening hours during the week and to one hour per day on weekends. All
other news bulletins would originate from the network. |
91. |
Furthermore, the Commission
shares the concerns raised by certain interveners as to whether the news
staff planned for the regional stations is sufficient to provide local
information of quality. The interveners emphasized that quality local
information requires a sufficient number of local journalists to gather,
process and broadcast the news. Otherwise, the role of the on-air
journalist could be limited to reading information from various external
sources, thereby accentuating the homogenization of newscasts as well as
of news voices in the regions. |
92. |
In light of the above, the
Commission reminds the applicant of the definition of local programming,
as set out in the Commercial Radio Policy: |
|
Local programming includes programming that originates with the
station or is produced separately and exclusively for the station.
It does not include programming received from another station and
rebroadcast simultaneously or at a later time; nor does it include
network or syndicated programming that is five minutes or longer
unless it is produced either by the station or in the local
community by arrangement with the station.
|
|
In their local programming, licensees must include spoken-word
material of direct and particular relevance to the community served,
such as local news, weather and sports, and the promotion of local
events and activities.
|
93. |
To ensure that local programming
meets community needs, the Commission expects that the majority of
local programming, that is, over 50%, will be devoted to "spoken-word
material of direct and particular relevance to the community served,
such as local news, weather and sports, and the promotion of local
events and activities." For the purposes of this expectation,
the definition of spoken-word material is appended to Revised content
categories and subcategories for radio, Public Notice CRTC 2000-14,
28 January 2000. |
|
c) Programming orientation of CKAC
|
94. |
The Commission also notes the
concerns of interveners regarding the change of programming orientation
for CKAC Montréal, and its impact on news staff. As pointed out by
certain interveners, the Commission recognizes the importance of
maintaining an independent and original source of information for
private sector radio in Quebec. Since its creation, CKAC has had its own
newsroom and has produced its own national and local news, counting on
its own news staff, including parliamentary correspondents. However, the
newsroom at CKAC, which has served as the network source for information
broadcast to all Astral stations, would be eliminated upon completion of
the transaction. CKAC would therefore not longer play the same role in
gathering and processing information. |
95. |
The Commission notes that, as
a result of the proposed change in CKAC’s programming orientation,
i.e. from that of a general interest station to one primarily oriented
towards sports and health, CKAC’s predominantly spoken-word programming
should complement the programming of CHMP-FM. As approved today in
Decision 2005-16,
the broadening of the programming orientation of CHMP-FM to include
current affairs, public affairs and arts news should be effective
in ensuring a further degree of diversity in the programming offered
in the Montréal area. The Commission notes that, even were the news
staff at CKAC reduced, Montréalers would continue to receive news
produced for the Montréal market by a total of 17 journalists working
at Corus Montréal stations CINF (Info690), CHMP-FM, CKAC and CKOI-FM.
|
|
d) Other matters
|
96. |
In accordance with the
commitment made by Corus at the hearing with respect to all AM stations
involved in this transaction, the Commission expects Corus to comply
fully with the spoken-word guidelines that Radiomedia submitted to the
Commission on 21 December 1994. |
97. |
As proposed, Corus will assume
responsibility for all of the unfulfilled tangible benefits related to
its acquisition of various broadcasting undertakings from Power
Broadcasting Inc. approved in Acquisition of assets, Decision
CRTC 2000-87, 24 March 2000. |
|
The Astral proposal
|
|
a) Musical diversity and access to the airwaves
|
98. |
The radio industry in Quebec
today includes several ownership groups. Astral accounted for 59% of the
total French-language radio revenues reported to the Commission in 2003,
which far outweighs its competitors’ share. Astral is followed by Corus,
with 14% of total revenues. Astral is also the dominant ownership group
in terms of radio listenership, attracting 43% of French-language radio
listeners , according to the BBM Fall 2003 survey. |
99. |
Following the exchange of
assets proposed by Astral and Corus, Astral would become the sole owner
of commercial radio stations in Drummondville, St-Jean-Iberville,
Rimouski and Amqui. Further, based on revenues reported for 2003, Astral
would continue to earn over 50% of total radio revenues of the markets
affected by this transaction, with the exception of Montréal. Of course,
competition is greater than this portrait of radio revenues suggests
because it does not take into account competition from non-commercial
stations, such as the CBC. Furthermore, the Commission recently issued
licences in the Québec, Sherbrooke and Trois-Rivières regions, which
will increase competition in those markets. As far as the Québec and
Gatineau markets are concerned, the Commission has received several new
licence applications on which it will rule in the future. The fact
remains, however, that Astral is far outpacing its competitors in Quebec
radio. |
100. |
The Commission is concerned
about the potential effects of Astral’s position on opportunities for
Canadian artists and on independent music production, and the potential
undue influence that could result from an approval of Astral’s
application as submitted to the Commission. Astral, with the possibility
of extending the coverage of its three networks, offering three formats
covering each audience segment, and playing various styles of music,
could exercise an undue influence that various producers and artists
would have to face in order to access the airwaves. Ultimately, Astral
could possess the ability to influence the success or failure of an
individual musical selection or an artist. |
101. |
To prevent such a situation,
in Decision 2002-90,
the Commission required, as a condition of licence, that Astral file
an annual report that can be used to assess changes in the diversity
of musical selections and of Canadian Francophone artists aired during
the previous year on each of its predominantly music-based network
services, Énergie and Rock Détente. |
102. |
In 2004, Astral filed an
initial version of this report for 2003. The Commission has asked ADISQ
and the UDA to comment on the report so as to determine if the report
responds to their needs and concerns as well as those of representatives
from the arts community. The Commission will review this issue in
greater depth in light of the comments it receives. |
103. |
The Commission believes that
the procedure of reporting annually on the diversity of musical
selections and Canadian Francophone artists continues to be the best
solution for now to prevent any undue influence and any resulting impact
on musical diversity. Accordingly, the Commission requires, by
condition of licence that, for the FM stations acquired, the
licensee file each broadcast year, in a format approved by the
Commission, a report on the diversity of musical selections aired on
each of its three predominantly music-based FM network services, that
is, Énergie, Rock Détente and Boom FM. |
|
b) Local programming
|
104. |
With respect to interveners’
concerns regarding local programming, the Commission notes the two
commitments by Astral that go above and beyond the requirements imposed
on all private broadcasters, that is, to broadcast at least 63 hours of
local programming per week on CJOI-FM Rimouski, which will be affiliated
with RockDétente, and to broadcast at least 42 hours of local
programming per week on each of the four other stations acquired from
Corus. The Commission expects Astral to abide by these commitments. |
|
c) News service
|
105. |
With respect to the diversity
of voices, the Commission notes Astral’s commitment to create its own
news service that would supply news to its FM networks on a daily basis.
This represents the entry of a new voice in Quebec’s information sector.
The addition of this new service would also result in an increase in
news staff across Quebec. |
106. |
The Commission also notes
Astral’s statement that the stations acquired will air about the same
number of hours of news per week as that currently broadcast, on
average, on all of the stations belonging to Astral. |
|
d) Value of the transaction and tangible benefits
|
107. |
As part of their exchange of
radio stations, Astral and Corus each estimated the value of the assets
it proposed to exchange at $11 million. In its application, Astral
proposed tangible benefits of $660,000, or 6% of the value of the assets
that would be acquired by Astral. According to Astral, the value of the
transaction was mutually established by the parties involved and
validated by the firm, Étude Économique Conseil. After conducting its
own review of the value of the assets exchanged, the Commission agrees
that $11 million represents the value of the shares that Astral proposes
to acquire. |
108. |
The Commission notes that, of
the $660,000 proposed by Astral, $105,000 would be paid to the Harold
Greenberg – Astral Media Fund to promote excellence in
Canadian French-language song. Astral confirmed at the hearing that, to
date, the Harold Greenberg – Astral Media Fund has not contributed to
the financing of musical recordings. |
109. |
According to the Commercial
Radio Policy, the Commission expects financial contributions to be
distributed as follows: |
|
3% to be allocated to a new Canadian music marketing and
promotion fund;
2% to be allocated, at the discretion of the purchaser, to FACTOR
or MusicAction; and
1% to be allocated, at the discretion of the purchaser, to either
of the above initiatives, to other Canadian talent development
initiatives, or to other eligible third parties directly involved
in the development of Canadian musical and other artistic talent,
in accordance with Contributions by Radio Stations to Canadian
Talent Development – A New Approach, Public Notice CRTC 1995-196,
17 November 1995 (Public Notice 1995-196).
|
110. |
Created in 1986, the Harold
Greenberg – Astral Media Fund is an independent production fund
certified by the Commission to receive and administer contributions from
broadcasting distribution undertakings. This fund financially supports
the production of English- and French-language films, as well as
documentaries, musical television programs, special events and
French-language videos. The Commission is of the view that the Fund does
not satisfy the third-party eligibility criteria as defined in Public
Notice 1995-196. It notes that Astral agreed to redirect $105,000 to the
Radio Star Fund if the Commission were to determine that the proposed
fund was unacceptable. The Commission requires that the contribution
that Astral proposed to make to the Harold Greenberg – Astral Media Fund
be made, instead, to the Radio Star Fund. |
111. |
The Commission notes that
Astral will continue to be responsible for all remaining tangible
benefits relating to previous transactions involving Télémédia, Radio
Etchemin and Radiomutuel. |
|
e) Other matters
|
112. |
For stations CFVM-FM Amqui and
CFZZ-FM Saint-Jean-Iberville, the Commission approves Astral’s application
to add a condition of licence authorizing these "oldies"
format stations to reduce the minimum percentage of Canadian musical
selections to 30%, as envisaged in Public Notice 1998-132.
The licences will be subject to the following condition of licence: |
|
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, in any broadcast week where at least 90%
of musical selections from content category 2 that it broadcasts are
selections released before 1 January 1981:
|
|
- in that broadcast week, devote 30% or more of its musical
selections from content category 2 to Canadian selections broadcast
in their entirety; and
|
|
- between 6 a.m. and 6 p.m., in the period beginning on Monday of
that week and ending on Friday of the same broadcast week, devote
30% or more of its musical selections from content category 2 to
Canadian selections broadcast in their entirety.
|
|
The licensee will also be responsible for specifying, on the music
lists it provides to the Commission, the year of release for all
musical selections it broadcasts.
|
|
For the 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.
|
113. |
The Commission also approves
Astral’s application for a licence to operate a French-language radio
network for the purposes of broadcasting the football games of the
Montréal Alouettes during the 2004, 2005 and 2006 seasons. Programming
for the proposed network will originate from CKAC Montréal. The assets
of this network will subsequently be transferred to Corus as part of
this transaction. |
|
Issuance of licences
|
|
Corus
|
114. |
The new licences issued to
Corus expire 31 August 2009. This term will allow the Commission to
review the performance of the licensee in the context of a public
process within a reasonable timeframe. |
115. |
New licences for the stations
acquired by Corus pursuant to this decision shall be issued upon
surrender of the current licences issued to Astral and Radio Etchemin.
|
116. |
A list of the conditions of
licence for each of the stations to be acquired by Corus is set out in
Appendix 2 to this decision. |
117. |
The licences for the digital
radio stations CKAC-DR-2 and CJRC-DR-2 will be subject to the terms
and conditions set out in Operation of new transitional digital
radio undertakings in Montréal, Decision CRTC 98-498,
19 November 1998 and in Transitional digital radio undertakings
in Gatineau, Broadcasting Decision CRTC 2002-363,
13 November 2002. |
|
Astral
|
118. |
The Commission has decided to
maintain the current expiry date for all licences for the stations
acquired, that is, 31 August 2006, with the exception of the licence for
CFVM-FM Amqui, which will expire 31 August 2009. The licence term ending
in 2006 coincides with the renewal date of several other stations
belonging to Astral, thus enabling the Commission to assess the impact
of this decision in a more comprehensive manner at the time of those
licence renewals. |
119. |
New licences for the stations
acquired by Astral pursuant to this decision shall be issued upon
surrender of the current licences issued to Corus. |
120. |
A list of conditions of licence
for each of the stations to be acquired by Astral is set out in Appendix
3 to this decision. |
|
Confirmation required
|
121. |
Corus and Astral shall each
provide written confirmation, within 30 days of this decision, that they
will complete the transaction in accordance with the terms and
conditions set out herein. Failure to provide such confirmation within
the required timeframe shall render this decision null and void. |
|
Secretary General |
|
This decision is to be
appended to each licence. It is available in alternative format upon
request, and may also be examined at the following Internet site:
http://www.crtc.gc.ca. |
|
Appendix 1 to Broadcasting Decision CRTC 2005-15
|
|
List of the Quebec radio undertakings involved in the transaction
|
|
Undertakings that Astral proposes to acquire:
|
|
- CFVM-FM Amqui
- CJDM-FM Drummondville
- CJOI-FM Rimouski
- CIKI-FM Rimouski and its transmitter CIKI-FM-2
Sainte-Marguerite-Marie
- CFZZ-FM Saint-Jean-Iberville
|
|
Undertakings that Corus proposes to acquire:
|
|
- CKAC Montréal
- CHRC Québec
- CJRC Gatineau
- CKRS Saguenay
- CHLN Trois-Rivières
- CHLT Sherbrooke
- CKTS Sherbrooke
- CFOM-FM Lévis
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- Digital radio stations CKAC-DR-2 Montréal and CJRC-DR-2 Gatineau
- The CHLN network to broadcast its programming on CKSM
- The Montréal Canadiens hockey network
- The Montréal Alouettes football network
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Appendix 2 to Broadcasting Decision CRTC 2005-15
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Conditions of licence for the stations acquired by Corus
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With the exception of the digital radio stations,
the licence for each station will be subject to the conditions set
out in New licence form for commercial radio stations, Public
Notice CRTC 1999-137,
24 August 1999. |
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CKAC Montréal
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The licensee shall broadcast: |
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- during the period ending 2 September 2006, at least 60 hours
of local programming in each broadcast week;
- during the period commencing 3 September 2006 and ending 1
September 2007, at least 70 hours of local programming in
each broadcast week; and
- during the period commencing 2 September 2007 and ending 31
August 2009, at least 80 hours of local programming in each
broadcast week.
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For the purposes of these conditions of licence,
"broadcast week" has the same meaning as that set out in
section 2 of the Radio Regulations, 1986, and "local programming"
has the same meaning as the definition of local programming set out
in Policies for Local Programming on Commercial Radio Stations
and Advertising on Campus Stations, Public Notice CRTC 1993-38,
19 April 1993, and reiterated in the Commercial Radio Policy, as amended
from time to time. |
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CJRC Gatineau, CHRC Québec, CHLT Sherbrooke, CHLN Trois-Rivières and
CKRS Saguenay
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Each of these stations shall broadcast: |
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- During the period ending 2 September 2006, at least 27 hours
of local programming in each broadcast week;
- during the period commencing 3 September 2006 and ending 1
September 2007, at least 32 hours of local programming in
each broadcast week; and
- during the period commencing 2 September 2007 and ending 31
August 2009, at least 37 hours of local programming in each
broadcast week.
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For the purposes of these conditions of licence,
"broadcast week" has the same meaning as that set out in
section 2 of the Radio Regulations, 1986, and "local programming"
has the same meaning as the definition of local programming set out
in Policies for Local Programming on Commercial Radio Stations
and Advertising on Campus Stations, Public Notice CRTC 1993-38,
19 April 1993, and reiterated in the Commercial Radio Policy, as amended
from time to time. |
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CKAC Montréal and CJRC Gatineau – transitional digital radio
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The licensee shall adhere to the conditions
of licence in effect under the current licence issued to its associated
station. |
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The licensee shall adhere to Parts 1 and
1.1 of the Radio Regulations, 1986. |
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The licensee is relieved of the requirement
set out in section 10.1 of the Radio Regulations, 1986 to own and
operate its transmitter. |
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The licensee shall not use the ancillary
capacity of the digital radio signal to provide services that constitute
programming under the Broadcasting Act, unless otherwise
authorized by the Commission. |
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The licensee shall use no more than 20% of
the digital capacity of the 1.5 MHz channel specified for use by the
geographic grouping of broadcasters to which the undertaking belongs. |
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The digital radio signal broadcast by the
transitional digital radio undertaking associated with the existing FM
or AM undertaking shall be broadcast from a single primary digital radio
transmitter that is located so as to ensure that the resulting digital
radio coverage area does not exceed the lesser of: |
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(a) the licensee's corresponding FM or daytime AM coverage
areas; that is, the 0.5 millivolt per metre coverage area, or
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(b) the digital service area allotted to the licensee under the
Department of Industry's spectrum allocation plan.
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The licensee shall have full control over
the transmission of its programming, regardless of the ownership of the
transmission facilities that it uses. |
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CFOM-FM Lévis
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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, in any broadcast week
where at least 90% of musical selections from content category 2 that it
broadcasts are selections released before 1 January 1981: |
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- in that broadcast week, devote 30% or more of its musical
selections from content category 2 to Canadian selections broadcast
in their entirety; and
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- between 6 a.m. and 6 p.m., in the period beginning on Monday of
that week and ending on Friday of the same broadcast week, devote
30% or more of its musical selections from content category 2 to
Canadian selections broadcast in their entirety.
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The licensee will also be responsible for
specifying, on the music lists it provides to the Commission, the year
of release for all musical selections it broadcasts. |
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For the 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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Appendix 3 to Broadcasting Decision CRTC 2005-15
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List of conditions of licence for the stations acquired by Astral
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The licence for each station will be subject
to the conditions set out in New licence form for commercial radio
stations, Public Notice CRTC 1999-137,
24 August 1999. |
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CFVM-FM Amqui and CFZZ-FM Saint-Jean-Iberville
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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, in any broadcast week
where at least 90% of musical selections from content category 2 that it
broadcasts are selections released before 1 January 1981: |
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- in that broadcast week, devote 30% or more of its musical
selections from content category 2 to Canadian selections broadcast in
their entirety; and
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- between 6 a.m. and 6 p.m., in the period beginning on Monday of
that week and ending on Friday of the same broadcast week, devote 30%
or more of its musical selections from content category 2 to Canadian
selections broadcast in their entirety.
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The licensee will also be responsible for
specifying, on the music lists it provides to the Commission, the year
of release for all musical selections it broadcasts. |
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For the 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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CIKI-FM Rimouski and its transmitter CIKI-FM-2
Sainte-Marguerite-Marie
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The licensee shall not solicit local
advertising in the Baie-Comeau market and the surrounding areas served
by local stations. |
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CJOI-FM Rimouski
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The licensee : |
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- shall refrain from soliciting advertising in markets that fall
outside its primary coverage area;
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- shall contribute $1,400 per year in direct costs to the
development of Canadian talent, with $1,000 going to MusicAction. The
Commission notes that the MusicAction contribution is in addition to
the licensee’s annual $500 commitment for a student of Rimouski’s
Conservatoire de musique.
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CFVM-FM Amqui, CJDM-FM Drummondville, CJOI-FM Rimouki, CIKI-FM
Rimouski and its transmitter CIKI-FM-2 Sainte-Marguerite-Marie and CFZZ-FM
Saint-Jean-Iberville
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The licensee shall file, no later than 30
November of each broadcast year, in a format approved by the Commission,
a report on the diversity of musical selections aired on each of its
three predominantly music-based FM network services, that is, Énergie,
Rock Détente and Boom FM. |
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Footnote:
In Acquisition of assets,
Decision CRTC 2000-87,
24 March 2000, the Commission approved the acquisition of assets of
stations CFVM-FM Amqui, CFZZ-FM Saint-Jean-Iberville, CFQL-FM and
CIKI-FM Rimouski and CJDM‑FM Drummondville. |
Date Modified: 2005-01-21 |