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ARCHIVED -  Broadcasting Decision CRTC 2002-224

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Broadcasting Decision CRTC 2002-224

Ottawa, 8 August 2002

Global Communications Limited
Winnipeg, Manitoba

Rogers Broadcasting Limited
Winnipeg, Manitoba

Corus Radio Company
Winnipeg, Manitoba

Applications 2001-1025-5, 2001-0729-4, 2001-1019-8
Public Hearing at Winnipeg, Manitoba
4 February 2002

Applications for commercial radio stations to serve Winnipeg

In this decision, the Commission addresses applications for new commercial radio stations submitted by Global Communications Limited (Global), Corus Radio Company (Corus) and Rogers Broadcasting Limited (Rogers). All three of these applications were predicated on the use of frequency 99.1 MHz (channel 256 C), and were thus technically mutually exclusive.

The Commission approves the Global application to establish a new FM station that will operate in a smooth jazz format. The Commission also approves the Rogers application for a new FM station to replace the existing Rogers AM station CKY, although Rogers must propose the use of a frequency other than 99.1 MHz. The new Rogers station will offer classic rock hits. The third proposal for the use of 99.1 MHz by Corus is denied.

These stations are two of five new Winnipeg radio stations approved in Decisions CRTC 2002-224 to 2002-228 issued today. The Commission's overall approach to the applications for new Winnipeg radio stations considered at the 4 February 2002 Public Hearing is set out in Introductory statement to Decisions CRTC 2002-224 to 2002-228: Applications for new radio stations to serve Winnipeg, Public Notice CRTC 2002-41, 8 August 2002.

The Global, Corus and Rogers applications

1.

All three of the applications for the use of 99.1 MHz were for new commercial FM stations to serve Winnipeg. Global's application proposed a station that would operate in a smooth jazz format, in which at least 70% of all music played would be drawn from subcategory 34 - jazz and blues. Global indicated that such a niche format would be equally attractive to men and women aged 35-64. Corus set out plans for a service that would offer a mix of oldies and soft adult contemporary music, targeted to a mainstream audience over 35 years of age which would be predominately female. Rogers proposed to convert its existing AM station CKY to an FM station that would offer classic rock hits, appealing mostly to males over the age of 35.

Interventions

2.

Standard Radio Inc., licensee of CFWM-FM Winnipeg, filed interventions opposing both the Corus and Rogers applications. Standard submitted that the use of the frequency 99.1 MHz at either of the sites proposed by the applicants would cause fourth-adjacent interference to the reception of CFWM-FM, which broadcasts from the Starbuck tower.

3.

The Commission notes that, while the Department of Industry acknowledges the potential for fourth-adjacent interference, it considers it to be unlikely, and has declared both the Corus and Rogers applications to be technically acceptable, subject to the standard NAV/COM certification. The Commission therefore considers that the concerns raised by the Standard intervention have been adequately addressed.

4.

In addition to the interventions discussed above, the Commission acknowledges and has considered all of the interventions submitted in support of each of the applications.

The Commission's analysis and conclusions

5.

In its assessment of applications for new commercial radio stations, the Commission takes into account four main factors or bases of comparison that it has identified as being relevant. While the relative importance of the factors will vary depending on the specific circumstances of the market, these factors are:

· The diversity of news voices in the market

· The quality of the applications

· The likely impact of a new entrant or entrants

· The competitive state of a market1

Diversity of editorial voices

6.

The Commission considers that diversity of editorial voices in Winnipeg would not be increased by licensing Global, Corus or Rogers since each applicant already operates at least one broadcasting station in the Winnipeg market.

7.

In Introductory statement to Decisions CRTC 2002-224 to 2002-228: Applications for new radio stations to serve Winnipeg, Public Notice CRTC 2002-41, 8 August 2002, (the Introductory Statement), the Commission listed the radio, television and daily newspapers serving Winnipeg. Excluding the radio stations licensed today, this list includes eleven commercial radio stations owned by six licensees, five not-for-profit radio stations owned by five licensees as well as four CBC radio stations. Winnipeg is further served by three private television stations owned by three different licensees, as well as by two CBC television stations. A new private religious television station has been approved in Proposed religious station for Winnipeg, Decision CRTC 2002-229, 8 August 2002. Winnipeg is also served by two local daily newspapers owned by two different parties. In light of the above, the Commission considers that the Winnipeg market is served by a variety of editorial voices and has no concerns in this area.

Quality of the applications by Global, Rogers and Corus

8.

The Commission uses four main criteria when assessing the quality of applications for new radio stations. Those four criteria are:

· The applicants' local programming proposals and plans for providing reflection of the local community

· Canadian content commitments

· The quality of the applicant's business plan, including the proposed format

· Commitments in support of the development of Canadian talent2

Local reflection

9.

The Global proposal indicated that the new station would offer five-minute newscasts hourly during peak drive periods, and broadcast shorter hourly newscasts at other times on weekdays. Expanded news packages including business news and coverage of cultural matters would be broadcast at noon and 6:00 p.m. on weekdays. Global also stated that it would schedule newscasts between 6:00 a.m. and 6:00 p.m. on weekends. In response to questioning related to the question of cross-media ownership involving the proposed FM station and CKND-TV, Global indicated that, while the proposed station would benefit from synergies with the CKND-TV newsroom and other Global newsgathering resources, the new FM station would have its own news director, leading a team of three journalist/announcers. Global added that "Smooth FM's News Director will liaise with the CKND newsroom but will control the news stories that the station will broadcast. The station will benefit from the coverage of stories by CKND to use voice reports from on scene but the presentation on the radio station will be handled by dedicated station personnel."

10.

Corus indicated that at least 25% of its proposed program schedule would consist of spoken word programming, and that it would be prepared to accept a condition of licence to that effect. Corus further stated that it would broadcast a daily two-hour locally-produced evening talk show to deal with lifestyle issues targeted to a female audience. In addition, programming during weekend mornings would feature locally-produced, four-hour lifestyle/news magazine/information programs. According to Corus, virtually all of the programming of the proposed station would be produced in Winnipeg.

11.

In discussions at the hearing, Corus indicated that the service on its existing AM station CJOB would not be duplicated on the proposed new FM station. The new FM station would have a separate news director, program director and its own news team. Corus' view of the two stations was expressed as follows:

We won't be as in-depth, but when it comes to business news and it comes to financial news and financial reporting, updates during the day, our new FM station will focus on more lifestyle issues too, besides doing the business updates and all those type of things.

12.

Rogers, in its application to convert CKY to the FM band, indicated that the new FM station would be a full-service station, offering local news and surveillance information packages. The packages would be male-oriented, including sports, market quotations, news of the day, weather and traffic conditions. Formal news packages would be scheduled during the morning and afternoon drive periods, lasting between two and three minutes.

13.

The Commission considers that Global, Corus and Rogers all have a strong existing commitment to the Winnipeg market, and that each applicant presented a solid plan for the reflection of the local needs of the audience to be served. The Commission notes commitments by Global to ensure that the proposed radio station would offer a news service that is distinct from that of CKND-TV and considers that it would be appropriate to impose these commitments as a condition of licence, as set out in Appendix A to this decision.

Canadian content

14.

Global proposed to devote at least 35% of all musical selections broadcast in both category 2 - popular music and category 3 - special interest music to Canadian selections. Global further proposed that at least 70% of all music played would be from subcategory 34, jazz and blues. Global indicated that one of its goals would be to showcase and make stars of Canadian smooth jazz musicians, and that, in its view, the best way to accomplish this goal would be to strive to broadcast an average of 35% Canadian content in all hours of the broadcast day.

15.

Corus and Rogers each proposed to devote a minimum of 35% of all category 2 music broadcast to Canadian selections. Neither the Corus nor the Rogers application proposed to broadcast music other than that drawn from category 2 - popular music.

16.

With respect to Canadian content, section 2.2 of the Radio Regulations, 1986 (the Radio Regulations) requires that on a weekly basis, a minimum of 35% of all category 2 musical selections, and a minimum of 10% of all category 3 musical selections broadcast be Canadian selections. The Radio Regulations also require that Canadian selections of category 2 music be distributed in a even manner between 6:00 a.m. and 6:00 p.m. on weekdays, although no such requirement exists for category 3 music.

17.

The Commission notes that the Global proposal with respect to the broadcast of Canadian music in category 3 far exceeds the regulatory minimum, and notes the applicant's statement that it would strive to maintain a 35% Canadian content average in all broadcast hours. The Commission considers that the Global application clearly presented the most advantageous proposal for the use of Canadian music. The commitment to broadcast at least 35% Canadian content in a musical format that would feature primarily category 3 music is a significant one that would foster the development of musical talent in a genre of music that does not currently receive extensive exposure. The Commission considers that it would be appropriate to impose this commitment as a condition of licence, as set out in Appendix A to this decision.

Business plans and formats

18.

Global indicated that its proposed new radio station would be called "Smooth FM". The applicant indicated that the new station's studios would be located in the same building as Global's Winnipeg television station CKND-TV. Smooth FM would have its own newsroom, but would benefit from the news coverage of CKND-TV's newsroom, the national newsgathering resources of all CanWest television stations, and the wire and other national services already used by the television station. In addition, Global indicated that Smooth FM would benefit from a plan to enhance existing reporting on CKND-TV to include more coverage of Winnipeg entertainment, with a special emphasis on coverage of the jazz music scene.

19.

Global also submitted that Smooth FM would benefit from its experience in serving mature audiences with its specialty channel Prime TV and by limited synergies involving promotion and marketing with Global's new Category 2 specialty television service to be called the Jazz Channel, approved in The Jazz Channel, Decision CRTC 2000-563, 24 November 2000.

20.

With respect to its plan to operate the new station in the smooth jazz format, Global stated that it considered that this format would be both popular and viable in Winnipeg. At the same time, the applicant's business plan does not project profitability at any time during the first licence term.

21.

When this issue was discussed at the hearing, Global indicated that this unprofitable outlook resulted, in part, from the proposed high overall programming expenditures and commitments to Canadian Talent Development (CTD). Global confirmed that it was willing to commit to absorbing losses as an investment in developing Canadian jazz talent. It further noted that it would not seek relief from any of its commitments, or seek to change its condition of licence relating to its commitment to broadcast a format based on music from subcategory 34 - jazz and blues.

22.

In its proposal for a new FM station, Corus set out a plan for a format blending oldies and soft adult contemporary music. Corus presented research indicating that listeners aged 35 to 64 wanted music from the 1950s, 1960s and 1970s blended with soft adult contemporary selections, and that this type of music was perceived as not being available in the market. As a result, Corus indicated that it would program a musical format with half of the music consisting of popular hits from the 1950s, 1960s and 1970s with the balance consisting of current softer adult contemporary selections. The research presented by Corus further indicated that individuals aged 35 to 64 wanted more news and information programming on FM. Corus therefore made a commitment that at least 25% of the programming on the new station would be spoken word.

23.

Corus owns and operates more than 50 radio stations in British Columbia, Alberta, Manitoba, Ontario and Quebec. Two of Corus' stations, CJOB and CJKR-FM, are located in Winnipeg. Corus was of the opinion that the new station would benefit from its experience in serving local listeners by introducing new and innovative radio formats across the country.

24.

Rogers is the licensee of two radio stations in Winnipeg, CKY and CITI-FM. In the current application Rogers proposed to replace CKY with an FM radio station to be called CKY-FM. Rogers expected that the conversion to FM would halt CKY's on-going loss of market share. Rogers was of the view that, absent a conversion to the FM band, CKY would experience a continued decline in revenues and be unprofitable in a few years. CKY currently operates in an Oldies format, and Rogers' plan was to employ a classic hits format on the new FM station. The applicant stated that a classic hits format "will increase choice and diversity in the Winnipeg radio market by providing Oldies listeners with the higher audio quality of an FM service and by providing committed FM listeners with an additional unique programming choice."

25.

At the hearing, Rogers was asked whether the classic hits format proposed for CKY-FM would duplicate the classic rock format already in use at Rogers' existing station CITI-FM. The applicant submitted that its proposal would add diversity to the Winnipeg market, and noted that music formats are designed to target primarily either male or female listeners. Rogers further noted that Winnipeg is currently served by FM stations, most of which target female audiences, and had therefore determined that the proposed station would be rock oriented and would target males.

26.

Rogers also stated at the hearing that most of the music associated with CITI-FM's classic rock format was drawn from album cuts, and would therefore be less hit-oriented than the classic hits format proposed for CKY-FM.

27.

The Commission considers that each of the three applicants has set out an adequate business plan and, based on the industry experience of each of them, the Commission has no doubt about their individual ability to launch a well-run radio station.

Canadian talent development (CTD)

28.

Global considered that it would need to heavily support a radio station with a relatively new radio format, smooth jazz. Global stated that:

although there is sufficient Canadian content to meet our commitment (35% category 2 and 3), we believe that for the format to flourish, it will be necessary to support both existing and new Canadian talent..The genre needs a number of kinds of support.

29.

Global proposed to allocate $400,000 per year in direct expenditures for CTD in each of the first five years of the licence term. In the following two years, it would allocate to CTD at least 10% of the station's revenue, or a minimum of $267,000 and $273,000 respectively. The total Global CTD commitment over a seven-year licence term would be at least $2.54 million.

30.

Global's plans for CTD included support for new local Winnipeg jazz talent through Project Smooth, contributions to the Foundation to Assist Canadian Talent on Record (FACTOR), donations to Jazz Winnipeg Festival (Jazz Winnipeg) and the Asper Foundation Jazz Performance Series (Asper Jazz), and support for the University of Manitoba Jazz Camp.

31.

Project Smooth would be an annual talent contest showcasing jazz performances in both the "smooth jazz" and "other jazz" genres. Global indicated that it would devote $80,000 annually to this initiative, an amount that would include bursaries of $10,000 for the contest winners. At the hearing Global confirmed that $8,000 allocated to advertising for this initiative would go to third parties. None of the money would be paid to newspapers or local businesses owned by Canwest.

32.

With respect to the FACTOR contributions, Global stated that FACTOR has agreed to dedicate half of the annual contribution, or $100,000 in each of the first five years of the licence term, for the development of Winnipeg and Manitoba jazz artists. The remainder of each of those years' contributions would be earmarked for the support of jazz artists from across Canada.

33.

Jazz Winnipeg and Asper Jazz are separate events. Jazz Winnipeg takes place over the summer months, while Asper Jazz consists of a series of special concerts held throughout the year. Global made a commitment to support both events. Of the $80,000 annual allocation for the two events in each of the first five years of the licence term, $8,000 would support Asper Jazz, and $72,000 would go to Jazz Winnipeg.

34.

Global stated that the allocations to Asper Jazz would augment "the existing Asper Foundation Jazz Performance Series to ensure that new local jazz artists will be featured as opening acts to the national and international talent featured in the series."

35.

Support by Global for Jazz Winnipeg would serve to finance six additional concerts. Global also stated that it would "request the festival to provide an additional stage for smooth jazz which will feature at least six local smooth jazz artists as well as funding for an additional series of free concerts featuring other Winnipeg Jazz artists."

36.

In its application, Global indicated that its $40,000 in annual support for five years for the University of Manitoba Jazz Camp would take the form of four annual Jazz Camp bursaries of $10,000 each. During discussions at the hearing, Global clarified that it had developed an expanded plan for music scholarship initiatives with the university, to better utilize the CTD funds. The expanded plan included full and partial scholarships to Jazz Camp, for university jazz studies, for jazz master classes, and for high school jazz bands. The Commission considers that it would be appropriate to impose Global's CTD commitments as a condition of licence, as set out in Appendix A to this decision.

37.

As part of its application, Corus proposed to spend at least $1.95 million over the course of a seven-year licence term to support the development of Canadian talent. Corus' plans focussed on identifying "emerging Canadian talent in the adult contemporary genre," and giving on-air exposure to such talent.

38.

The breakdown of Corus' annual CTD proposal was set out as follows: $120,000 for concert tours and a series of live concerts featuring both emerging and existing artists, $70,000 for a search for emerging talent resulting in the production of, and airplay for, a compilation CD, $37,144 in combined support for the Royal Winnipeg Ballet, the Winnipeg Symphony and the Manitoba Orchestra, and donations of $25,714 each to Canadian Music Week and FACTOR.

39.

In addition to its CTD proposal, Corus set out plans for annual donations of $150,000 to support Native Communications Inc. (NCI). NCI stated in a supporting intervention that the Corus support would be used for Aboriginal broadcast training and other initiatives. The intervention stressed the need for the development of Aboriginal broadcasters, in particular journalists, and noted that the Corus support would fund scholarships to Red River College and internships following graduation for Aboriginal students.

40.

As part of its application, Rogers proposed to increase its annual contribution to Canadian talent development from its current CKY commitment of $8,000 to $12,000. The total commitment of $84,000 over a seven-year licence term would be directed to FACTOR. The Commission considers that it would be appropriate to impose this commitment as a condition of licence, as set out in Appendix B to this decision. At Rogers' request, FACTOR would earmark the money from the new Rogers station for Manitoba artists.

41.

The Commission considers that Global has proposed a multi-faceted plan for the development of Canadian talent that would be of significant benefit, especially to jazz artists. Corus also proposed significant plans for the development of Canadian talent, especially in the adult contemporary genre, as well as support for NCI. The Rogers commitment to the development of Canadian talent, while the lowest of the applicants, exceeded the minimum requirements of the CTD funding plan instituted by the Canadian Association of Broadcasters.

Impact on existing stations

42.

Global submitted that its proposal would have a minimal impact on the audiences of existing Winnipeg radio stations. It noted that only three stations in the market currently play any jazz music, and none of those play jazz in any significant amounts. Global was therefore of the opinion that its proposal would complement existing services rather than compete with them, and would repatriate listeners who have sought out jazz in other media such as personal CDs, cable and Internet music services.

43.

Corus was of the view that its proposal was for a unique musical format that would have limited negative impact on existing radio broadcasters in the Winnipeg market. It submitted that its proposed station would repatriate Winnipeg audiences from radio services in Winkler and Steinbach that employ adult contemporary musical formats. It stated at the hearing that the most serious loss of audience to its proposed station would be felt by its own AM station CJOB. Corus noted at the hearing:

.we are better equipped to attack ourselves than somebody else because if somebody else attacked us in that way, with the same type of format, four or five years from now CJOB's financial credibility will be in question.

44.

Rogers expressed the view that its proposed "flip" of CKY to FM would have no material economic impact on other local radio stations, since the committed listeners to the oldies format used on CKY would be likely to follow that programming to its new position on the FM band. Rogers added that some listeners might be attracted from a number of other stations, in particular Rogers' own CITI-FM, which currently operates in a classic rock format. Rogers also indicated that it only needed to attract 20% of the natural growth in radio advertising to achieve its revenue projections.

45.

In the Introductory Statement the Commission addressed the state of the Winnipeg Radio Market and concluded as follows:

The Commission considers that the Winnipeg market is capable of sustaining additional radio stations. However, since the growth of advertising revenues and the average per station profitability for Winnipeg stations is lower than the national average, the Commission considers that licenses should be granted to those new stations that are not likely to compete directly with existing commercial stations owned by other licensees.

46.

Of the three proposals, the Commission finds that, while the Global proposal is for a new entrant to the market, its plan for a niche format would reduce the possible impact overall on existing stations in the Winnipeg market. The Commission is of the opinion that the new FM station proposed by Corus would be more likely to have a significant effect on the market, since it calls for the addition of a mainstream popular-music based format. The Commission finds that the Rogers proposal would be essentially neutral in its impact, since it would not increase the overall number of stations existing in the market, and would operate in a format with similarities to that of the AM station it would replace. Furthermore, the station with which the proposed Rogers station is most likely to compete is CITI-FM, a station that Rogers also owns.

Competitive state of the market

47.

The major mainstream commercial radio broadcasters in the Winnipeg market currently are Rogers (CKY and CITI-FM) Corus (CJOB and CJKR-FM), Standard Radio Inc. (CKMM-FM and CFQX-FM) and CHUM Limited (CFST, CHIQ-FM and CFWM-FM).

48.

Global noted that it is the only one of the applicants for 99.1 MHz that did not currently own a radio station serving Winnipeg, and would therefore represent a new entrant to the Winnipeg radio market. It further proposed measures, outlined earlier in the document, to ensure that the new radio station would have a newsroom, news director, and news staff that would be separate from that of its Winnipeg over-the-air television station CKND-TV.

49.

As part of its application, Corus expressed the view that a second Winnipeg FM for Corus would help maintain the competitive balance that currently exists in the Winnipeg market.

50.

Rogers indicated that the proposed flip of CKY to the FM band would have no effect on the level of competition in the Winnipeg market, since the net effect would be the same number of stations, owned by the same parties.

51.

The competitive state of a market, as a factor in the Commission's consideration of applications proposing new commercial radio stations, is generally most relevant where the applicant is the licensee of an existing station in that market. In such cases, the Commission's concern is that its licensing actions not create an undue competitive imbalance in the market.

52.

The Commission considers that the current ownership of mainstream commercial radio stations in Winnipeg is currently distributed among four strong players all of whom own at least two radio stations. The Commission therefore does not consider that the licensing of any of the applications that are the subject of this decision would have an undue negative effect on the competitive state of the market.

Conclusions

53.

Taking all of the elements of the three competitive applications into account, the Commission finds that implementation of the programming proposals contained in the Global application would be the least likely to cause financial disruption to existing commercial radio stations, and the most likely to repatriate both audiences and advertisers to radio. The Commission notes that Winnipeg already has an infrastructure related to jazz, including clubs and festivals where jazz is played. In this regard, the Commission notes supporting interventions from the University of Manitoba School of Music/Winnipeg Jazz Orchestra, musician Walle Larsson, The Manitoba Conservatory of Music and Arts, and the Manitoba Chamber Orchestra. The Commission is convinced that there is a strong base of listeners for the station that Global has proposed, and that the Global station will fill a programming niche in the market.

54.

Global has also proposed a Canadian content commitment of 35% for category 3 music, a level that exceeds by far the 10% minimum requirement set out in the Radio Regulations. Global has also presented a strong plan for the development of Canadian talent, especially in the jazz genre, a type of music that is under-represented in the programming of radio stations. Additionally, Global has a well-established presence in the Winnipeg community, and the financial capacity to carry its projected sustained losses and to promote the new station.

55.

For all the reasons noted above, the Commission concludes that the Global proposal clearly represents the best use of the frequency 99.1 MHz in Winnipeg, and therefore approves the application by Global, for a new radio station in Winnipeg at 99.1 MHz (channel 256C) with an effective radiated power of 100,000 watts.

56.

The Commission will issue a licence to Global Communications Limited with a licence term beginning 1 September 2002 and expiring 31 August 2009, subject to paragraphs 57 to 59 below and to the conditions specified in Appendix A to this decision and in New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999.

57.

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.

58.

The Commission reminds the licensee 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.

59.

Furthermore, the licence for this undertaking will only be issued once the licensee has informed the Commission in writing that it is prepared to commence operations. This 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 8 August 2004. In order to ensure that such a request is processed in a timely manner, it should be submitted at least 60 days before this date.

60.

With respect to the Corus application, the Commission finds that, while the applicant's plans for the support of Canadian talent and its planned support for native broadcasting were both strong, the Corus proposal is the most likely of the three to have an undue negative effect on existing broadcasters in the market since licensing the proposal would result in the addition of another mainstream commercial radio station to the Winnipeg market. The Commission therefore denies the Corus application.

61.

Although the Commission has denied Corus' proposal, it notes the proposed initiative in support of the development of Aboriginal broadcasters. In recent decisions the Commission has recognized that contributions to native broadcasters, while not directly contributing to the development of Canadian artistic talent, nonetheless contribute to achieving the objectives of the Act. The Commission endorses the development of all native broadcasting services in Manitoba and across Canada as an endeavour deserving of financial and other assistance. It encourages all commercial broadcasters to provide such support, whether in applications for new licences, or in applications to acquire the ownership or control of existing stations.

62.

The Commission also approves in part the application by Rogers to convert the existing Rogers AM station CKY to an FM station, contingent upon Rogers' use of a frequency other than 99.1 MHz. The Commission concludes that, since the new station will replace an existing AM station, this approval will not result in a net increase to the number of radio stations serving the market. Approval of this application will therefore maintain the stability of, and have a low impact on, the radio market in Winnipeg.

63.

When the terms set out below have been met, the Commission will issue a licence to Rogers Broadcasting Limited with a licence term beginning 1 September 2002 and expiring 31 August 2009, subject to paragraphs 64 and 65 below and to the conditions specified in Appendix B to this decision and in New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999.

64.

The Commission will only issue the licence, and it will only be effective at such time as the applicant submits, within six months of the date of this decision, an application proposing the use in Winnipeg of a frequency and technical parameters that are acceptable to both the Department and the Commission. Any request for an extension to this deadline requires Commission approval and must be made in writing within the six-month period.

65.

Furthermore, the licence for this undertaking will only be issued once the licensee has informed the Commission in writing that it is prepared to commence operations. This 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 8 August 2004. In order to ensure that such a request is processed in a timely manner, it should be submitted at least 60 days before this date.

66.

The licensee is authorized, by condition of licence, to simulcast the programming of the new FM station on CKY for a transition period of three months following the commencement of operations of the new FM station. The licensee shall surrender the licence for CKY at the end of this period.

Employment equity

67.

Because both Global and Rogers are subject to the Employment Equity Act and file reports with Human Resources Development Canada, their employment equity practices are not examined by the Commission.

Secretary General

This decision is to be appended to each licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca

 

Appendix A to Broadcasting Decision CRTC 2002-224

 

Conditions of licence for the new FM station at Winnipeg licensed to Global Communications Limited

 

The licence will be subject to the following conditions of licence as well as the conditions set out in New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999.

  1. The station shall be operated within the Specialty format as defined in A review of certain matters concerning radio, Public Notice CRTC 1995-60, 21 April 1995, and Revised content categories and subcategories for radio, Public Notice CRTC 2000-14, 28 January 2000, as amended from time to time.
  2. A minimum of 70% of all musical selections broadcast during each broadcast week shall be devoted to selections drawn from subcategory 34 - jazz and blues.
  3. A minimum of 35% of all category 3 musical selections broadcast during each broadcast week shall be Canadian selections.
  4. The licensee shall expend a minimum of $2.54 million over the licence term on direct expenditures to support Canadian talent development (CTD). In each of the first five broadcast years, a minimum of $400,000 shall be spent. In the sixth and seventh broadcast years, annual CTD spending must represent 10% of the station's revenues, or, at a minimum, $267,000 and $273,000 respectively.
  5. Annual CTD funding in each of the first five broadcast years shall be allocated as follows:
 

· $200,000 to FACTOR

 

· $ 80,000 to Project Smooth

 

· $ 72,000 to Jazz Winnipeg

 

· $ 40,000 to The University of Manitoba jazz studies scholarships

 

· $ 8,000 to the Asper Jazz Performance Series

  6. The licensee shall submit an annual report on the implementation of its commitments related to CTD concurrent with its annual return.
  7. In order to ensure that the radio station's newsgathering and news management activities are separate from those of CKND-TV, the licensee shall maintain a separate radio newsroom and employ a separate radio news director and a team of journalist/announcers. The news director shall control the news stories that the radio station will broadcast, and the presentation of news on the radio station shall be accomplished by dedicated radio station personnel.

 

Appendix B to Broadcasting Decision CRTC 2002-224

 

Conditions of licence for the new FM station at Winnipeg licensed to Rogers Broadcasting Limited

 

The licence will be subject to the following conditions of licence as well as the conditions set out in New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999.

  1. The licensee shall, in each broadcast year, devote a minimum of $12,000 to the Foundation to Assist Canadian Talent on Record (FACTOR).
  2. The licensee is authorized to simulcast the programming of the new FM station on CKY for a transition period of three months following the commencement of operations of the new FM station . The licensee shall surrender the licence for CKY at the end of this period.
_______________________________________________

1 These criteria were first set out in Introductory statement - Licensing new radio stations which appeared in Decisions CRTC 99-480, 99-481 and 99-482, all dated 28 October 1999.

2 These criteria were first set out in Introductory statement - Licensing new radio stations which appeared in Decisions CRTC 99-480, 99-481 and 99-482, all dated 28 October 1999.

Date Modified: 2002-08-08