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Broadcasting Decision CRTC 2006-129
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Ottawa, 5 April
2006 |
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Radio CJFP (1986) ltée
Rimouski, Quebec |
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Application 2005-0685-0
Public Hearing in the National Capital Region
19 December 2005 |
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French-language FM radio station in Rimouski
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The Commission approves
an application to operate a French-language FM commercial radio
station in Rimouski, Quebec. |
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The application
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1. |
The Commission received an
application from Radio CJFP (1986) ltée (Radio CJFP) for a broadcasting
licence to operate a French-language commercial FM radio
programming undertaking in Rimouski, Quebec. |
2. |
The proposed station would
operate at 93.3 MHz (channel 227C1) with an average effective radiated
power of 18,197 watts. |
3. |
Radio CJFP proposed to offer an
opinion and classic rock format. Twenty percent of the programming would
be spoken word, which would include local news, information and sports.
The new station would offer a magazine-type program with interviews
focusing on regional news, sports and socio-cultural information. |
4. |
The station would offer a total
of 126 hours of programming per week, including 42 hours of locally
produced programming during each broadcast week for the first two years
of the licence term. That number would increase to 60 hours during the
third year of the licence term, and to 70 hours during the fourth and
subsequent years of the licence term. The remaining programming would
originate from the Corus-Québec network. |
5. |
Radio CJFP indicated that it
would be prepared to agree to a condition of licence prohibiting it from
soliciting advertising revenue in neighbouring markets. |
6. |
Radio CJFP would promote
emerging Canadian artists via interviews, concerts and airplay. |
7. |
The applicant would participate
in the Canadian talent development plan developed by the Canadian
Association of Broadcasters. According to this plan, which was approved
by the Commission in Contributions by radio stations to Canadian
talent development – A new approach, Public Notice CRTC
1995-196, 17 November 1995 (Public
Notice 1995-196), a radio
licensee serving a market the size of Rimouski is expected to contribute
a minimum of $400 in each broadcast year to eligible third parties
for Canadian talent development. Radio CJFP proposed to exceed the
minimum contribution set out in Public Notice 1995-196 and committed
to contribute an additional $100 in each broadcast year to Canadian
talent development. |
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Interventions
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8. |
La radio communautaire du
comté, licensee of CKMN-FM Rimouski and Mont-Joli, opposed the
application because of the proposed station’s potential negative impact
on CKMN-FM’s advertising revenue. The intervener stated that increased
competition in radio markets has driven up the cost of advertising sales
for community radio stations. The intervener noted that any decrease in
the advertising revenues of community radio stations would reduce their
ability to fulfil their mandate. |
9. |
9022-6242 Québec inc.,
licensee of CHLC-FM Baie-Comeau and CFRP-FM Forestville, pointed out
that the applicant’s proposed technical parameters would enable the
station to reach the Baie-Comeau and Forestville markets. The intervener
was therefore of the view that the addition of the proposed radio
station in Rimouski would fragment the audience and advertising revenues
of other stations operating in the Baie-Comeau and Forestville markets.
The intervener submitted that the applicant’s proposed commitment not to
solicit or accept advertising revenues from outside its central market
would not prevent audience fragmentation. |
10. |
Les Communications Matane
inc., licensee of CHRM-FM Matane and its transmitter CHRM-FM-1 Les
Méchins, and of CHOE-FM Matane, expressed concern about the station’s
regional coverage. According to the intervener, the addition of the
proposed station would further fragment radio advertising revenues in
Matane. In the event the application were approved, the intervener asked
that the Commission impose a condition of licence prohibiting the
licensee from soliciting advertising in Matane. |
11. |
Astral Media Radio inc.
(Astral), licensee of CIKI-FM and CJOI-FM Rimouski, argued that the
proposed station would not make any significant contribution to the
diversity of musical formats because the proposed adult contemporary
format is identical to that of CJOI-FM. Astral further submitted that
the proposed station’s impact analysis is inconsistent because the
applicant stated, on one hand, that the proposed station would have a
very minimal impact on existing stations, but stated, on the other hand,
that its station would obtain a 25.1% share of listeners aged 12 and
over, and a 26% share of listeners aged 25-54 in 2007. According to
Astral, either the applicant’s market share projections are overly
aggressive, or the analysis of the proposed station’s impact on the
market shares and advertising revenues of existing stations grossly
under-estimates this negative impact, which would be significant. |
12. |
Louise Thibault, Member of
Parliament for Rimouski-Neigette–Témiscouata–Les
Basques, submitted that retaining existing news coverage and
entertainment programming in the region is essential. She noted that the
proposed station’s programming would be similar to the programming
offered by certain local stations. However, Ms Thibault also stated that
the addition of another forum would be an asset to the region and would
create jobs. |
13. |
The Association québécoise de
l’industrie du disque, du spectacle et de la vidéo (ADISQ) submitted
that the proposed music format would seem to add a new source of
diversity to the market, but that the proposed Canadian talent
development contribution of $3,500 over seven years is insufficient,
even though it exceeds the annual minimum requirement, because it
represents only 0.07% of the applicant's forecast revenues over seven
years ($5,148,000). ADISQ further noted that the applicant did not
indicate how it intends to distribute these amounts. |
14. |
The Fédération professionnelle
des journalistes du Québec supported the application because it was of
the view that the two proposed reporter positions and the news service
would ensure on-site coverage of breaking news, consistent with the
journalistic code of ethics. |
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The applicant’s replies
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15. |
In its replies, Radio CJFP
submitted that the proposed opinion and classic rock format would
contribute to the diversity of programming offered in Rimouski. It
argued that the new station’s programming would enhance existing
programming by adding a complementary voice that would strengthen and
enhance the community. |
16. |
Radio CJFP noted that the
Rimouski market, with a population of 60,000, is currently served by
four broadcast undertakings, including a local television station, two
private radio stations and one community radio station. In comparison,
the Rivière-du-Loup market, which has a population of 18,000, is served
by five broadcast undertakings, including three local television
stations and two radio stations. The applicant therefore was of the view
that the Rimouski-Neigette market could support a new station. |
17. |
In reply to the intervention
filed by La radio communautaire du comté, Radio CJFP stated that,
according to the Association des Radios Communautaires du Québec (ARCQ),
35% of community radio revenues come from government, 34% from
fund-raising (bingo, fundraising campaigns, membership sales) and 31%
from advertising. Radio CJFP submitted that CKMN-FM is better off than
the average community radio station because, according to the figures
provided by La radio communautaire du comté, CKMN-FM’s advertising
revenues account for 67% of the station’s total revenues, compared with
53% of total revenues on average for community radio stations. |
18. |
In response to the intervention
by Les Communications Matane inc., Radio CJFP noted that it is
targetting the Rimouski-Neigette market, not the Matane market, which is
a one hour drive from Rimouski. The applicant further noted that the
proposed station would focus on local advertising sales in Rimouski, not
national advertising revenue. |
19. |
In its response to Astral,
Radio CJFP noted that the station would not use an adult contemporary
music format, but rather an opinion and classic rock format. The
applicant also stated that its projections are based on financial data
taken from the Cossette Média study completed in early 2005, and not on
annual CRTC data, which are not made public until April of each year.
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The Commission’s analysis and determination
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20. |
The Commission notes that,
according to the 2001 Census, the regional municipality of
Rimouski-Neigette has a population of 52,289. The Rimouski market is
currently served by two commercial radio stations owned by Astral, one
community radio station (CKMN-FM) and two local Canadian Broadcasting
Corporation (CBC) radio stations. In 2005, Astral’s stations together
accounted for a 66% listening share and 100% of the market’s commercial
radio advertising revenues. In comparison, CKMN-FM had a 17% listening
share and the CBC stations together had a 4% listening share. |
21. |
According to the Commission’s
analyses, Rimouski’s radio advertising market recorded annual average
growth of 2% over the past five years. The Commission considers that the
market should experience average annual growth that is at least
equivalent between 2005 and 2012. The Commission expects that the new
station will affect the advertising revenues of the existing stations.
The Commission is not, however, convinced that the new station will have
an undue effect on community station CKMN-FM, since the advertising
revenues of community stations and commercial stations generally come
from different sources. The Commission notes that community radio
stations also have access to different sources of revenue including
bingos, contributions by members and other sources that are not
accessible by commercial radio stations. As well, given Astral’s
dominant position in the market, the Commission is of the view that the
proposed station would establish a competitive balance in this market
and add musical diversity, to the benefit of the population of
Rimouski-Neigette and the surrounding communities. The Commission notes
that Radio CJFP has indicated it would be prepared to accept a condition
of licence prohibiting it from soliciting advertising revenues in
neighbouring markets. |
22. |
Finally, the Commission notes
that the proposed station’s 3 mV/m contour does not encroach on the
neighbouring markets, specifically the Baie-Comeau, Forestville and
Matane markets. |
23. |
In light of the foregoing, the
Commission approves the application by Radio CJFP (1986) ltée for
a broadcasting licence to operate a French-language commercial FM
radio programming undertaking in Rimouski, Quebec. The station will
operate at 93.3 MHz (channel 227C1) with an average effective radiated
power of 18,197 watts. |
24. |
This licence will expire 31 August
2012 and will be subject to the conditions set out in New
licence form for commercial radio stations, Public Notice CRTC 1999-137,
24 August 1999. The licence will also be subject to the following
conditions: |
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The licensee shall not solicit local advertising in the
Baie-Comeau, Forestville and Matane markets.
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In addition to the expenditures required under condition of licence
number 5 set out in New licence form for commercial radio stations,
Public Notice CRTC 1999-137,
24 August 1999, the licensee shall, upon commencement of operation,
make direct expenditures of at least $100 annually on Canadian talent
development.
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Issuance of the licence
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25. |
The Department of Industry (the
Department) has advised the Commission that, while this application is
conditionally technically acceptable, it will only issue a broadcasting
certificate when it has determined that the proposed technical
parameters will not create any unacceptable interference with
aeronautical NAV/COM services. |
26. |
The Commission reminds the
applicant that, pursuant to section 22(1) of the Broadcasting Act,
no licence may be issued until the Department notifies the Commission
that its technical requirements have been met, and that a broadcasting
certificate will be issued. |
27. |
The licence for this
undertaking will be issued once the applicant has informed the
Commission in writing that it is prepared to commence operations. The
undertaking must be operational at the earliest possible date and in any
event no later than 24 months from the date of this decision, unless a
request for an extension of time is approved by the Commission before 5
April 2008. In order to ensure that such a request is processed in a
timely manner, it should be submitted at least 60 days before that date. |
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Employment equity
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28. |
In accordance with Implementation
of an employment equity policy, Public Notice CRTC 1992-59,
1 September 1992, the Commission encourages the applicant to
consider employment equity issues in its hiring practices and in all
other aspects of its management of human resources. |
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Secretary General |
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This decision is to be appended
to the licence. It is available in alternative format upon request,
and may also be examined in PDF format
or in HTML at the following Internet site:
http://www.crtc.gc.ca |