ARCHIVED - Decision CRTC 84-209

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Decision

Ottawa, 29 February 1984
Decision CRTC 84-209
CJMF-FM Ltée
Quebec City, Quebec - 831797600 - 832057400
Following a Public Hearing in Quebec City on 11 January 1984, the Canadian Radio-television and Telecommunications Commission announces that it denies the application for the renewal of the broadcasting licence CJMF-FM Quebec City, which expires 31 March 1984.
In its Notice of Public Hearing of 22 November 1983, the Commission stated that CJMF-FM Ltée, licensee CJMF-FM, was not in compliance with its Promise of Performance. The Commission based its opinion on various analyses of CJMF-FM's programming which it had carried out between 1980 and 1983, which revealed substantial discrepancies between the station's actual performance and the commitments contained in its Promise of Performance, particularly with respect to musical format and foreground programming. In addition, the Commission had received complaints in 1982 from CFLS Inc., a radio broadcaster in the Quebec City region, claiming that the licensee was violating a condition of its licence by broadcasting musical programming that was substantially different from that described in its Promise of Performance.
Such non-compliance with a condition of licence is a serious matter, considering the limited number of frequencies available in a given market and the fundamental objective of the FM policy to ensure that the overall FM radio services provided in a market are varied and comprehensive. It is important therefore that each licensee honour the mandate that it has been granted in terms of its programming orientation, target audience and musical format, as set out in its Promise of Performance, which is a condition of its licence. Non-compliance could affect the balance of services offered by other broadcasters, and the Commission's objective for the provision of a varied and comprehensive service.
The Commission therefore called CJMF-FM Ltée and the complainant to the Public Hearing held on 11 January 1984 in order to discuss with the licensee its failure to comply with its Promise of Performance, the steps it has taken to comply fully with the said Promise of Performance, and the reasons that would justify the renewal of its licence and the proposed amendments to its Promise of Performance.
The station was granted its licence, based on an MOR musical format, following a public hearing on 7 November 1978, in preference to three other applications for an MOR radio broadcasting service. CJMF-FM's Promise of Performance contained various commitments concerning both musical and spoken word content. On the basis of these commitments and the many assurances that it had obtained at the hearing relating to their fulfillment, the Commission approved the licensee's application and denied that of the three other applicants in Decision CRTC 79-171 dated 16 February 1979, stating:
 The Commission acknowledges the well-balanced and realistic proposals contained in the application. The proposed programming, which is in line with the Commission's FM policy, will provide Quebec City residents with a varied and distinct quality service responsive to their particular needs and interests.
 The Commission notes, particularly, the high calibre of the proposed spoken word programming which is to include 16% of foreground programming and 9.3% of enrichment material. The licensee has indicated that French-language vocals will make up 80% of its musical selections, with Canadian content at 45%.
CJMF-FM began broadcasting on 16 September 1979, initially in its authorized MOR format, as "Harmonie FM" (easy-listening FM). Programming analyses carried out by the Commission in May 1980 and November 1981 already indicated that serious problems existed in foreground format programming. Certain shortcomings also became apparent in 1981 in the area of music. These two analyses were brought to the licensee's attention in letters dated 31 August 1980 and 19 May 1982 respectively, both of which invited the licensee to meet with the Commission's staff in order to discuss the results more thoroughly. The licensee did not respond to either of these invitations.
On 3 May and 16 August 1982, the Commission received formal complaints from CFLS Inc., a radio broadcasting licensee which operates radio station CFLS Lévis with a contemporary programming format. The complainant accused CJMF-FM of broadcasting in an unauthorized musical format which emphasized rock and rock-oriented music, thereby in violation of its Promise of Performance and the authority granted in Decision CRTC 79-171. A further analysis conducted by the Commission of the musical programming broadcast by CJMF-FM on 8 September 1982, confirmed the station's non-compliance with its Promise of Performance; it revealed serious discrepancies in musical format, Canadian content and French-language vocal music.
In a letter dated 3 December 1982 to the President of CJMF-FM Ltée, the Chairman of the CRTC again drew the licensee's attention to the conclusions of the three analyses of CJMF-FM's programming that had been conducted by the Commission. The Chairman pointed out in his letters that the first analysis, of which the licensee had been notified on 31 August 1980, [TRANSLATION] "revealed serious problems with respect to spoken word content and foreground programming". He added that the second analysis sent to the licensee on 14 May 1982 [TRANSLATION] "also revealed very serious problems with respect to spoken word content, enrichment, foreground format, rock music and musical format". Concerning the third analysis, conducted on 8 September 1982, the Chairman of the Commission stated: [TRANSLATION]
 The results of the most recent analysis raise serious doubts about compliance with your Promise of Performance, particularly with respect to rock music, Canadian content and French-language vocal music. The results are such that they indicate a change of format from that authorized for CJMF-FM.
In conclusion, the Chairman stated: [TRANSLATION]
 These three analyses of CJMF-FM's programming, conducted in as many years, have led us to consider the possibility of summoning you to a public hearing for the revocation of your licence, unless effective measures are taken immediately to rectify the situation.
On 16 December 1982, a meeting was held between CRTC staff and the licensee to discuss the most recent analysis of 8 September 1982. Subsequently, on 20 December 1982, the licensee replied in writing to the Chairman's letter of 3 December 1982, stating that it intended to comply "substantially" with its commitments concerning programming formats and spoken word content, and that it would establish a timetable for improving compliance with its musical content commitments.
On 9 February 1983, the Commission sent a letter to CJMF-FM Ltée, asking for clarification about its stated intention to comply "substantially" with its commitments and the proposed timetable concerning music content. It requested the licensee to submit henceforth, weekly, for an indefinite period, the list of musical selections and foreground format programs broadcast by the station. It concluded its letter by putting the licensee on notice that:
 The Commission will not tolerate any infraction to the Act or the FM Regulations and it will not hesitate, if necessary, to consider forthwith licence revocation proceedings against CJMF.
In a letter dated 1 March 1983, the licensee replied that in the programming formats (foreground) and spoken word content (categories 2, 3A, 4 and 5), its objectives had been "fully achieved" and, as for music, it was going [TRANSLATION] "to continue its efforts to improve the parameters of (its) music policy".
Throughout 1983, CRTC staff followed the situation very closely and frequently contacted CJMF-FM on this matter. However, new music and foreground format programming analyses undertaken in March and September 1983 indicated that the licensee was still in non-compliance and that, with respect to the musical format, the state of non-compliance had even deteriorated further since the licensee was put on notice on 9 February 1983. A final meeting between CRTC staff and CJMF-FM was held on 16 December 1983 to review the situation again.
All the correspondence between the Commission and the licensee and the minutes of the meetings held were placed in the public file of CJMF-FM and have been taken into account in the consideration of CJMF-FM's licence renewal application.
At the 11 January 1984 hearing, the licensee acknowledged that the findings and analyses of the Commission were valid and accurate, and they are summarized in the graphs shown in the appendix to this decision. During the discussion of these findings at the hearing, the licensee stated specifically they were [TRANSLATION] "a fairly accurate reflection of the file" and that "no one in our group questions the findings of the CRTC's latest analysis". The licensee further confirmed that it was still broadcasting in an unauthorized musical format and admitted [TRANSLATION] "the current format that is broadcast by the station is a progressive rock format".
The licensee gave various reasons for its non-compliance, including:
-  the alleged impossibility of compliance with its original Promise of Performance without incurring serious financial difficulties;
-  the absence of effective means of control;
-  the lack of time available to the principal shareholder and other associates, due to other obligations, and insufficient personnel;
-  the implementation of service by CITF-FM and CHIK-FM Quebec City in 1982 supported by large resources, the former station also providing an MOR format.
At the hearing, the Commission explored in detail with the licensee the various options offered to it, including the possible renewal or non-renewal of its licence, and the consequences of non-renewal on the station, its existing listeners, the broadcasting environment in the Quebec City region and on the general public.
The Commission also considered the interventions submitted at the hearing. The complainant, CFLS Inc., and another Quebec City radio broadcaster, CHOI-FM, appeared at the hearing to oppose the renewal and the amendment of CJMF-FM's licence and to ask for the revocation of its licence. These two interveners cited the damage and prejudice that CJMF-FM's non-compliance had caused them in terms of loss of audience and revenue. CFLS Inc. stated specifically [TRANSLATION] "it is obvious that CJMF has not understood the Commission's objectives which are based on an overall market approach to ensure the variety of listeners are adequately served by either the AM or FM broadcast band". For its part, CHOI-FM stated [TRANSLATION] "CHOI-FM has not changed its policy with regard to the major principle of diversity advocated by the Commission. We continue to endorse the Commission's objectives on this point and wish this philosophy to be maintained in the best interest of the listeners and the Canadian broadcasting industry".
Under the Broadcasting Act, the Commission is empowered to regulate and supervise all aspects of the Canadian broadcasting system. Thus, in 1975, after extensive consultation with the broadcasters and the public, the Commission formulated a new policy on FM radio with the fundamental objective of providing a diversity of services to an audience in a given market. The Commission has reaffirmed these principles in subsequent decisions and in the Policy Statement on the Review of Radio that it released in March 1983.
To ensure such diversity, the Commission has relied on its licensing procedure and on the Promise of Performance which is an integral part of the FM broadcasters' licences. In the FM policy, the Commission stated that it was of the view that broadcasters should be more accountable to the public and to the Commission for their use of the public airwaves, particularly at the time of their licence renewal or whenever they apply for substantial changes to their service. The Commission further indicated in its 1975 policy statement that:
 The Commission will, therefore, stress accountability as the central principle by which a renewal of private FM radio broadcasting will be accomplished.
The Commission considers that the increasing degree of non-compliance by the licensee during the last few years, particularly in the area of music, undermines the integrity of the licensing process, the objectives of the FM policy and, generally, the very authority of the Commission. Such non-compliance also places other broadcasters in the region in an unfair and inequitable competitive situation which ultimately is contrary to the public interest. In spite of repeated warnings and notices, the licensee has persisted in unequivocal non-compliance by adopting a musical format which is drastically different from the authorized MOR format. After obtaining its licence in 1979, promising [TRANSLATION] "musical programming aimed primarily at an adult public" and making the commitment to broadcast 84.1% of all music programming in general popular music (subcategory 61) and 4.8% in rock and rock-oriented music (sub-category 65), the Commission finds, as acknowledged by the licensee at the hearing, that, based on the last analysis undertaken in September 1983, the station broadcast 2.2% of all music in sub-category 61 and 97.8% in sub-category 65.
Based on the evidence submitted at the hearing, and the licensee's response, the Commission is convinced that the licensee has not made any reasonable effort to comply with the conditions of its licence. Moreover, the licensee has not given the Commission any reason to believe that it has taken appropriate steps in this regard or that any change in its attitude is imminent. The Commission finds that the situation has deteriorated in the past year despite repeated warnings and notices and the numerous opportunities that were given to the licensee to comply.
Based on all the factors noted above, the Commission considers that it would not be in the public interest to renew this licence and to approve the proposed amendments to the Promise of Performance. In view of this decision, the Commission is issuing today, in a separate notice, a call for applications to provide FM radio service to the Quebec City area. CJMF-FM Ltée is not precluded from submitting an application in response to the call; but, in accordance with the provisions of the Broadcasting Act, it will have to cease its operations by 31 March 1984, the date of the expiry of its licence.
J.G. Patenaude Secretary General

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