ARCHIVED -  Public Notice CRTC 1986-307

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Public Notice

Ottawa, 4 November 1986
Public Notice CRTC 1986-307
Canadian Content on FM Country Music Stations
In its Public Notice CRTC l984-l5l, dated l8 June l984, entitled The Review of Radio - Simplification of the FM Policy, the Commission announced that it had adopted the recommendations of the Consultative Committee on Music and Radio. The Committee, consisting of representatives of the broadcasting and recording industries and of the CRTC had made recommendations for popular music subcategory definitions, station format definitions, Canadian content guidelines, the definition of a vocal selection, and spoken word programming.
In the matter of Canadian content, the Committee had indicated that, as a general rule, the guidelines then in force should neither be raised nor lowered. Accordingly, the guideline for stations offering a Country music service (Group III stations) was maintained at 30%.
In the notice, the Commission indicated that a number of country broadcasters had expressed concern that there was not sufficient Canadian material to maintain the level of 30% for stations specializing in Urban or Contemporary Country Music. Although it was not prepared to change the guideline which had resulted from the work of the Committee, the Commission announced that it would undertake a study of the availability of all types of Canadian country music.
The Commission's Study
Commission staff undertook a comprehensive examination of the country music industry with members of the broadcasting and music industries. This study, completed in the summer of l985, was made available to the participants and a number of other interested parties so that they could assess the accuracy of the findings. Subsequently, adjustments were made to reflect comments of interested parties and diverging points of view expressed in reply to the draft study. The completed document entitled "The Country Music Industry in Canada" can be obtained from the Commission's Information Services.
The study is divided into four sections. The first briefly examines the history of the Country music industry in North America, while the second section focuses on its history in Canada. The third section discusses the industry as it currently exists in Canada, and the fourth section examines a number of industry proposals.
An examination of Statistics Canada figures showed a decrease in the number of Canadian content Country and Folk recordings released between l977 to l983. During this period, the number of singles declined from l3l to 82 and the number of albums from l50 to 44. In 1984, the number of singles increased to 104 and the number of albums to 65. Furthermore, figures from a study done for the Commission in conjunction with its Consultative Committee on French-language music indicated that relatively few Canadian content Country French-language recordings were released (4 singles and 3 albums in l983).
The study concluded that, despite the decrease in the number of record releases, there is a sufficient quantity of Canadian recordings for English-language Group III stations to meet the 30% guideline. It noted, however, that this product is, to a great extent, regionally-oriented and that much of this regional product is regarded by broadcasters as being of poor quality. These broadcasters are concerned that the lack of Canadian product with national appeal could lead to inferior programming. The study noted that the industry has evolved over the past years, with more artists becoming nationally known and increased Canadian expertise in the management area. However, additional funds are needed for recording, promotion and distribution. Three possible sources of funds were identified: multi-national record companies, radio initiatives such as FACTOR/CTL and MusicAction, and government funding.
The Commission notes that, on 26 September l986, the Minister of Communications announced the signature of an agreement with FACTOR/CTL/ MusicAction/Canada (FCMC) under which the organization will administer a five-year, $18.5 million program. The program will provide annually up to $2.55 million for production of sound recordings, $500,000 for production of music videos, $200,000 for syndicated radio programming, and $450,000 for support of touring. In addition, the Deparment of Communications will administer a further $800,000 per year for specialized music, sound recordings, international marketing and business development.
The Broadcasters' Study and Proposals
In response to the Commission's study, the Canadian Association of Broadcasters (CAB) undertook a survey of FM Country music stations during the summer of l985 (attached as Appendix II). The survey indicated that while 96 Canadian content singles were received in l982, l38 in l983, l52 in l984 and l08 in the first 6 months of l985, only l9 were nationally distributed in l982, 66 in l983, 76 in l984 and 45 in the first 6 months of l985. Similarly, of l5 Canadian content albums received in l982, l0 were nationally distributed, ll of l8 in l983, l2 of l7 in l984 and 7 of l0 in the first 6 months of l985. It further noted that only 8.4% of all selections received by the stations and considered accept able to the Country format qualified as Canadian content. It also noted that since there are relatively few Canadian "superstars", the over-use of Canadian material could cause "burnout" of Canadian artists.
The CAB, therefore, recommended that the guideline for Group III FM stations be reduced from 30% to l5% or 20%. It also proposed a package of initiatives "to off-set any perceived loss as Canadian content is lowered and to stimulate the growth of this sector of the music industry." Sixteen of Canada's 22 FM Country stations have agreed to support these initiatives in addition to any other commitments already in force.
In the first initiative, the stations would pool financial resources for an independent syndicator to produce a monthly one-hour program featuring l00% Canadian Country music. The second initiative would provide 30-second commercials on each of the stations during the first three weeks of a new album release for the purpose of promoting that release. Under the third initiative, all participating stations would provide ten 30-second commercials for touring Canadian artists playing club dates in their cities. In addition, the stations would provide at least one in-studio interview with the artist or group.
The fourth initiative is intended to provide financial assistance to support Canadian Country artists. Each station would contribute 0.25% of its gross revenues to FACTOR or to an FM Country music co-operative.
The Commission invites public comment on the proposals submitted by the CAB and the l6 FM Country stations. Comments should be submitted to the Secretary General of the Commission no later than 5 December l986.
Fernand Bélisle Secretary General

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