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Broadcasting
Public Notice CRTC 2006-98
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Ottawa, 2
August 2006 |
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Acquisition
of assets of a Lethbridge, Alberta radio station, and licensing of a new
radio station to serve Lethbridge – Introduction to Broadcasting
Decisions CRTC 2006-327 to 2006-329
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At a public hearing commencing 21
February 2006 in Calgary, the Commission considered five applications
relating to commercial radio stations to serve Lethbridge. One of the
applications requested approval to acquire the assets of an existing
radio station, and for technical amendments for that station. The
remaining four applications each proposed to establish a new FM radio
station to serve Lethbridge. |
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This notice describes the various
applications and sets out the Commission’s determinations with respect
to the ability of the Lethbridge market to absorb additional radio
stations. This notice also summarizes the Commission’s decision to
approve the applications to acquire the assets of an existing radio
station, and for technical amendments for that station, as well as to
approve one of the applications to establish a new FM radio station to
serve Lethbridge. |
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The call for
applications
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1.
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On 14 July 2005, the Commission issued
Call for applications for broadcasting licences to carry on radio
programming undertakings to serve Lethbridge, Alberta, Broadcasting
Public Notice CRTC 2005-67,
in which it announced that it had received an application related
to radio service in Lethbridge, Alberta, and called for applications
from other parties wishing to provide radio programming services to
the area. The Commission advised potential applicants that they would
be required to provide evidence giving a clear indication that there
is a demand and a market for the service they propose, and that they
should address, among other things: |
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- the contribution that the proposed service will make to
achieving the objectives established in the Broadcasting Act
(the Act) and, in particular, to the production of local and
regional programming;
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- the factors relevant to the evaluation of applications, as outlined
in Introductory statement – Licensing new radio stations,
Decision CRTC 99-480,
28 October 1999, i.e., the quality of the application (including
the business plan and the proposed format), the diversity of
news voices, the market impact and the competitive state of
the market;
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- the means by which the applicant will promote the
development of Canadian talent, including local and regional talent;
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- an analysis of the markets involved and potential
advertising revenues, taking into account the results of any survey
undertaken supporting the estimates; and
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- evidence as to the availability of financial resources
consistent with the requirements established in the financial
projections of the applicant’s business plan.
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The applications
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2.
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The Commission received four applications
in response to its call. These, together with the application that
prompted the call, were considered at the 21 February 2006 Public
Hearing in Calgary, Alberta. The applicants, in the order of their
appearance at the public hearing, were as follows: |
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- Golden West Broadcasting Ltd. (Golden West),
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- Vista Radio Ltd. (Vista),
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- 1182743 Alberta Ltd. (1182743 Alberta), and
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- Touch Canada Broadcasting Inc. (Touch Canada).
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3.
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The applications by Vista, Newcap and
1182743 Alberta all proposed the use of the frequency 94.1 MHz, and were
thus technically mutually exclusive. |
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Golden West
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4.
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Golden West proposed to acquire from Spirit
Broadcasting Ltd. (Spirit) the assets of the existing English-language,
low-power Specialty FM radio programming undertaking CJTS-FM Lethbridge,
and to amend the broadcasting licence of CJTS-FM by changing the
frequency from 97.1 MHz (channel 246LP) to 98.1 MHz (channel 251B).
Golden West also proposed to change the authorized contours of CJTS-FM
by increasing the effective radiated power from 50 watts to 20,000
watts, by increasing the antenna height and by relocating the
transmitter. The applicant further requested a licence to continue the
operation of CJTS-FM upon surrender of the current licence issued to
Spirit. |
5.
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If this application were approved, the
authorized contours of CJTS-FM would increase significantly, and the
proposed increase in power would result in a change of status for CJTS-FM,
from a low-power unprotected service, to a regular Class B FM station.
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6.
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Golden West made a commitment that, if its
application were approved, CJTS-FM would continue to offer a Christian
music format. |
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Vista
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7.
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Vista proposed to establish an
English-language commercial FM radio station in Lethbridge that would
operate at 94.1 MHz (channel 231C). The proposed station would provide a
Classic Hits music format, targeting adult listeners aged 35 to 54.
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Newcap
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8.
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Newcap proposed to establish an
English-language commercial FM radio station in Lethbridge that would
operate at 94.1 MHz (channel 231C). The proposed station would provide a
Contemporary Hit Radio music format, targeting predominantly women aged
18 to 34. |
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1182743
Alberta
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9.
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1182743 Alberta proposed to establish an
English-language commercial FM radio station in Lethbridge that would
operate at 94.1 MHz (channel 231C). The proposed station would offer an
Adult Standards and Modern Nostalgia music format appealing to listeners
aged 35 to 64, with a core audience of adults over the age of 45. |
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Touch Canada
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10.
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Touch Canada proposed to establish an
English-language commercial Specialty FM radio station in Lethbridge
that would operate at 90.5 MHz (channel 213B). The proposed station
would offer a Christian music service, with 100% of the total weekly
music to be drawn from content subcategory 35 (Non-classic religious). |
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Commission’s
assessment of the applications and summary of its decisions
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The
Lethbridge radio market and its ability to sustain a new radio station
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11.
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The population of the Lethbridge Census
Agglomeration (CA) is estimated to have grown by nearly 15% since the
2001 Census recorded a population of 67,374. The Lethbridge City Census
2005 projects that the population of Lethbridge could increase to nearly
90,000 by 2011, assuming a 2.5% annual growth rate. |
12.
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The Lethbridge market is currently served
by five commercial radio stations, including CFRV-FM (Modern Adult
Contemporary), CHLB-FM (Country), CJBZ-FM (Hot AC), CJRX-FM (Rock), and
CJTS-FM (Christian music). The combined financial performance for radio
stations in the Lethbridge market in 2005 was consistent with the
healthy performance achieved by all Canadian radio stations in 2005. |
13.
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The City of Lethbridge, the Province of
Alberta and Financial Post (FP) Markets all project positive growth in
retail sales, commercial and residential construction and employment
levels for the Lethbridge CA through to 2011. Further, the diverse array
of employment sectors allows for a more stable economy, with the
Lethbridge unemployment rate being lower than the provincial and
national averages consistently for the past ten years. |
14.
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The Commission is of the view that the
positive outlook for Lethbridge will result in steady growth for radio
advertising revenues. |
15.
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Taking all these factors into account, the
Commission is satisfied that the Lethbridge radio market can support the
introduction of an additional commercial radio station, without having
an undue negative impact upon the existing stations in the market. |
16.
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Vista, Newcap and 1182743 Alberta each
suggested that their proposal would address the needs of a particular
underserved segment of Lethbridge radio listeners. Vista proposed to
target the 35-54 age group which represents approximately 28% of the
total Lethbridge population. Newcap indicated that it would serve the
18-34 year old demographic, which makes up approximately one-quarter of
the population, and 1182743 Alberta proposed to focus on the age range
of 35 to 64, which represents approximately 38% of the current
population. |
17.
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The BBM Fall 2005 distribution of total
listening hours by age group in Lethbridge indicates that the 18-49
demographic accounts for approximately 60% of all tuning in the market,
and that listening by adults over the age of 50 is predominantly to the
Country music format offered by CHLB-FM. The Commission therefore
concludes that older listeners in Lethbridge have relatively few
alternatives if they do not listen to Country music. |
18.
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Based on its assessment of the competing
applications by Vista, Newcap and 1182743 Alberta for new commercial FM
stations to serve Lethbridge, the Commission has determined that
approval of the application by 1182743 Alberta represents the best
alternative in terms of offering listening choice to an underserved
demographic in Lethbridge, especially those persons over the age of 45,
while having minimal impact on incumbent radio stations. The licensing
of 1182743 Alberta would introduce a new editorial voice to the market
and a new company to the Canadian broadcasting system. The Commission
has also taken into consideration the proposals by 1182743 Alberta for
the broadcast of Canadian music, and its plans for the development of
Canadian talent. |
19.
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Therefore, in English-language FM radio
station in Lethbridge, Broadcasting Decision CRTC 2006-328,
dated today, the Commission has approved the application by
1182743 Alberta Ltd. for a broadcasting licence to operate a new English-language
commercial FM radio programming undertaking to serve Lethbridge. |
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Non-classic
religious services
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20.
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At the public hearing, the Commission heard
applications by Golden West and Touch Canada relating to Specialty FM
Christian music services to serve Lethbridge. |
21.
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Golden West proposed to acquire the assets
of the existing English-language, low-power Specialty FM Christian music
service CJTS-FM from Spirit, and to amend the technical parameters of
that station while maintaining the Christian music format. The current
owner of CJTS-FM indicated that the negative performance of CJTS-FM and
personal health problems are the reasons for the proposed sale to Golden
West. |
22.
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Touch Canada proposed to establish a new
English-language commercial Specialty FM Christian music service to
serve Lethbridge. |
23.
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In Canada, there are presently 60 Specialty
FM services offering a non-classic religious music format, although the
majority are non-commercial services operated by local parishes or
church-affiliated groups. With respect to commercial Specialty FM
services offering a non-classic religious music format, only three
communities, namely Winnipeg, Manitoba, and Moncton and Fredericton, New
Brunswick, have two such stations operating in the same market. The
Commission notes that overall, the non-classic religious music stations
operating in these markets have not experienced consistent positive
financial performance. |
24.
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The Commission is therefore not convinced
that the Lethbridge radio market could support the operation of two
commercial Specialty FM Christian music services, given the targeted
advertising base, the similarities in programming, and the limited
audience for such programming. |
25.
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Taking into account the factors noted above
as well as concern for the continued viability of CJTS-FM under the
existing circumstances, the Commission has determined that approval of
the Golden West application to acquire the assets of CJTS-FM and
approval of its application to amend the technical parameters of that
station are in the public interest, and would increase the likelihood of
CJTS-FM remaining a viable local service in Lethbridge, without having
an undue negative impact on the incumbent radio stations in the market.
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26.
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Accordingly, in Acquisition of assets,
Broadcasting Decision CRTC 2006-327,
also of today’s date, the Commission has approved applications
by Golden West Broadcasting Ltd. to acquire the assets of the radio
programming undertaking CJTS-FM Lethbridge from Spirit Broadcasting
Ltd., to amend the broadcasting licence for CJTS-FM by changing the
frequency, and to change the authorized contours of CJTS-FM. |
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Conclusion
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27.
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While the Commission is satisfied that
the Lethbridge market will be capable of accommodating the introduction
of one new commercial FM radio station as well as the technical changes
to the existing station CJTS-FM, it is also of the view that licensing
more than one new radio service at this time could result in undue
negative impact on incumbent radio services, and impede the growth
of any newly licensed service. Given also the Commission’s determination
that the Lethbridge market would be capable of supporting only one
commercial Specialty FM Christian music service, in Denial of applications
proposing radio services for Lethbridge, Alberta, Broadcasting
Decision CRTC 2006-329,
of today’s date, the Commission has denied the applications
by Touch Canada, Vista and Newcap for broadcasting licences to operate
new English-language commercial FM radio stations to serve Lethbridge. |
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Secretary General |
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This document is available
in alternative format upon request, and may also be examined in PDF
format or in HTML at the following Internet site: http://www.crtc.gc.ca
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