ARCHIVED -  Decision CRTC 90-534

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Decision

Ottawa, 20 June 1990
Decision CRTC 90-534
South Fraser Broadcasting Limited
Vancouver, British Columbia - 894203900Robert Keith Whyte, representing a company to be incorporatedVancouver, British Columbia - 894170000
Jeffrey M. Weltman, representing a company to be incorporated
Vancouver, British Columbia - 894204700
Rawlco Communications Limited, representing a company to be incorporated
Vancouver, British Columbia - 894173400
Redmond Communications Calgary Ltd.
Vancouver, British Columbia - 894177500
Seacoast Communications (Vancouver) Inc.
Vancouver, British Columbia - 894202100
Following a Public hearing commencing 19 February 1990 in Vancouver, the Commission, by majority decision, approves the application by South Fraser Broadcasting Limited (South Fraser) for a licence to carry on an English-language FM radio broadcasting transmitting undertaking at Vancouver on the frequency 94.5 MHz, with an effective radiated power of 34,300 watts, operating in a Group IV musical format.
The applications by the remaining five parties named above, all competing with South Fraser for a broadcasting licence to operate a new FM station to serve Vancouver, are denied.
A key factor in the Commission's consideration of whether to authorize the introduction of a new radio station in any market is the degree to which the station will contribute to the diversity of broadcasting services available and bring about a greater balance in the nature and number of services targeted to the various groups making up the population. The Commission also examines closely the extent to which a new entrant might affect the ability of existing stations to fulfill their programming responsibilities. In general, the Commission considers that the economic impact of a new service on existing stations is diminished when the primary focus of the new service is directed away from those groups already well-served by other stations in the market.
Metropolitan Vancouver is the third largest radio market in Canada by population and is served by 15 commercial radio stations. Based on all of the available evidence, including the age and other characteristics of the audiences captured by the 15 existing stations, their overall financial performance, and the data contained in the various marketing studies and audience surveys performed on behalf of the six applicants, the Commission has determined that Vancouver residents under the age of 35 are less well served than those 35 years of age or older and that there is adequate market capacity in this area. More specifically, the Commission is satisfied that Vancouver can support the entry of a new station at this time, without creating undue hardship for existing stations, provided that the service offered by the new entrant is targeted to an audience consisting primarily of those in this demographic.
Of the six applicants, the Commission considers that South Fraser has put forward the best overall proposal for a new FM station to serve Vancouver, one designed to fill the niche described above while expanding the musical diversity offered Vancouver residents by their local radio services. Accordingly, the Commission will issue a joint FM licence to South Fraser expiring 31 August 1994, subject to the conditions specified in this decision and in the licence to be issued.
South Fraser is the locally-owned licensee of CISL Richmond, a station in operation for a little more than ten years. Based on its experience and knowledge of the Vancouver radio market, together with a thorough economic study and a sound business plan, South Fraser proposed an alternative Dance and Rhythm & Blues musical format and imaginative spoken word programming designed to appeal most strongly to an audience of those under the age of 35, the group identified by the Commission, and by four of the six applicants, as being targeted by fewer local radio services than the group 35 and older. Specifically, South Fraser identified its primary audience as those between the ages of 18 and 34, with females comprising the majority. This would include many Vancouver residents who, the applicant claims, now choose to listen to out-of-market stations, but who will be repatriated by its proposed format, featuring music largely unavailable on existing stations serving the Vancouver area. According to the applicant, "...approximately 70% of our music selections would be music that presently is not heard in the marketplace". It stressed that musical diversity in the Vancouver market will be further broadened by its commitments whereby 55% of all the musical selections broadcast on the new FM station will be uncharted material, 70% will come from the current repertoire, and a maximum of 45% will be hits. The Commission expects South Fraser to adhere to each of these important commitments.
The applicant's plans for spoken word programming include commitments for a substantial amount of enrichment programming (14 hours 1 minute per week), some of it to be based on the activities of the Vancouver Cultural Alliance, an umbrella organization representing approximately 115 Vancouver arts groups. South Fraser also proposed 12 hours per week of public affairs programming, and 4 hours 7 minutes per week of news, 70% of which will be devoted to local and regional coverage. South Fraser also put forward several concrete proposals to support the development of Canadian talent, beginning with the provision of on-air exposure for such talent through its commitment to broadcast a minimum of 30% Canadian content in the Category 5 musical selections on the new FM station. Various other initiatives proposed by the applicant for the development of Canadian talent will be funded by direct expenditures of $315,000 in each of the station's first five years of operation. These will include an annual contribution of $150,000 to a Young Artists and Audience Fund, the purpose of which will be to encourage young artists and introduce young audiences to Canadian talent. The fund will be administered by the Vancouver Cultural Alliance. The Commission reaffirms the particular importance it attaches to the development of Canadian talent and expects the applicant to pursue these initiatives.
The Department of Communications (DOC) has advised the Commission that this proposal is technically acceptable, but that issuance of a Broadcasting Certificate is conditional on the resolution of any problems involving interference with aeronautical NAV/COM services.
In accordance with paragraph 13(1)(b) of the Broadcasting Act, the Commission will only issue the licence, and the authority granted herein may only be implemented, at such time as written notification is received from the DOC that it will issue a Broadcasting Certificate.
It is a condition of licence that the authority granted herein be implemented within 12 months of the date of receipt of written notification from the DOC that it will issue a Broadcasting Certificate or, where the applicant applies to the Commission and satisfies the Commission that it cannot implement its authority before the expiry of this period and that an extension is in the public interest, within such further period of time as is approved in writing by the Commission.
It is a condition of licence that the applicant adhere to the Canadian Association of Broadcasters' (CAB) self-regulatory guidelines on sex-role stereotyping, as amended from time to time and approved by the Commission.
It is also a condition of licence that the applicant adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.
The Commission authorizes the applicant to make use of the Subsidiary Communications Multiplex Operation. The Commission expects the applicant to adhere to the guidelines set out in Appendix A to Public Notice CRTC 1989-23 dated 23 March 1989 entitled Services Using the Vertical Blanking Interval (Television) or Subsidiary Communications Multiplex Operation (FM). This authority may only be implemented when the DOC gives the technical approval required by the Radiocommunication Act and regulations made thereunder.
Alain-F. Desfossés
Secretary General

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