ARCHIVED - Broadcasting Notice of Consultation CRTC 2011-398

This page has been archived on the Web

Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.

PDF version

Ottawa, 30 June 2011

Call for applications – Radio stations to serve Calgary, Alberta

1.      The Commission announces that it has received an application by Harvard Broadcasting Inc. for a broadcasting licence to operate a commercial radio service for Calgary, Alberta. The Commission hereby calls for applications from other parties wishing to obtain a radio licence (or licences) to serve this area.

2.      Persons interested in responding to this call must submit a duly completed application to the Commission no later than 28 September 2011, using the appropriate application form for a licence to operate a new radio station which can be found at http://www.crtc.gc.ca/eng/forms/form_200.htm. Applicants are also required to submit all necessary technical documentation to the Department of Industry (the Department) by the same date.

3.      It should be noted that in issuing this call, the Commission has not reached any conclusion in regard to the licensing of any service at this time.

4.      Applicants will be required to provide evidence giving clear indication that there is demand and a market for the station and the proposed service.

Factors for evaluation of applications

5.      In assessing applications for new commercial radio services in a market, the Commission will consider the following factors, which were first set out in Introductory Statement – Licensing of new radio stations, Decision CRTC  1999-480, 28 October 1999.

Quality of the application

6.      In its analysis, the Commission will evaluate the applicant’s programming proposal and commitments in a number of areas. These will include the manner in which the applicant will reflect the local community, including the community’s diversity and distinct nature. Accordingly, the Commission will consider commitments related to local programming and the benefits that such programming will bring to the community.

7.      The Commission will also consider commitments regarding the percentage of Canadian content of musical selections, contributions to Canadian content development, and, where applicable, the percentage of French-language vocal music.

8.      The Commission does not regulate the format of AM or FM stations that base their programming on popular music. The Commission will, however, assess the applicant’s business plan in light of the proposed format since the two are interrelated. The business plan should clearly demonstrate the applicant’s ability to fulfill its proposed programming plans and commitments. Further, the Commission will examine the programming proposals submitted by the applicants to determine which overall proposal best suits the market.

Diversity of news voices in the market

9.      This factor relates to concerns regarding concentration of ownership and cross media ownership. The Commission has stated that it seeks to strike a balance between its concerns for preserving a diversity of news voices in a market and the benefits of permitting increased consolidation of ownership within the radio industry.

10.  The Commission will therefore assess how approval of the application would add to or serve to maintain the diversity of voices available in the market, and how approval of the application would increase the diversity of programming available to listeners.

Market impact

11.  The possibility that licensing too many stations in a market could lead to a reduction in the quality of service to the local community remains of concern to the Commission. The economic condition of the market and the likely financial impact of the proposed station on existing stations in the market will therefore be relevant.

12.  The Commission will therefore evaluate how the proposed station’s programming, general and core target audience, and projected audience share overlap stations already present in the market. While the Commission may also consider the profitability of existing station groups in the market in its assessment of the proposed station on existing ones, this will be only one factor in its evaluation.

Competitive state of the market

13.  In markets with fewer than eight commercial stations operating in a given language, the Commission’s common ownership policy permits a person to own a maximum of three stations, with a maximum of two in any one frequency band. In markets with eight commercial stations or more, a person may own a maximum of two FM and two AM stations in any given language. The concentration of ownership resulting from this policy may increase the possibility of competitive imbalance in a radio market.

14.  The Commission will therefore consider factors such as the number of radio stations that an applicant already owns in the market, the profitability of its station(s) and the concentration of ownership in that market, in making its licensing decision.

Importance of factors

15.  The relative importance of each of the factors set out above will vary in each case, depending on the specific circumstances of the market.

Financial summary for Calgary

16.  For the convenience of interested parties, the financial summary for the Calgary radio market is attached to this notice of consultation.

Technical approval from the Department of Industry

17.  The Commission intends to consider the applications at a public hearing. However, the Commission advises applicants that it will withdraw any application from the public hearing if it is not advised by the Department, at least twenty days prior to the first day of the hearing, that the application is technically acceptable. The Commission must also be advised by the Department, at least twenty days prior to the first day of the hearing, that any alternative frequencies proposed by the applicant are technically acceptable. Otherwise, those frequencies shall not be considered as part of the proceeding.

Eligibility of applicant

18.  The Commission also reminds applicants that they must comply with the eligibility requirements set out in the Direction to the CRTC (Ineligibility of Non-Canadians), and the Direction to the CRTC (Ineligibility to Hold Broadcasting Licences).

Update of application

19.  Harvard Broadcasting Inc. will be given the opportunity to update its application and to provide the essential information set out below within the same period provided for the submission of applications by other parties.

Essential information that applicants must provide

20.  To assist the Commission in its assessment of applications, each applicant is required to provide all the information requested in the appendices to this document for the type of service that it proposes to operate. An applicant must clearly demonstrate that its application includes the required information and submit the appropriate completed application. Requests for information by Commission staff will seek to clarify specific facts or to resolve minor discrepancies in the applicants’ proposals.

21.  The Commission will return any application that fails to provide the required information, and that application will not be considered as part of this process.

22.  At a later date, the Commission will announce the public process for considering applications and how the applications may be examined by the public. As part of that process, the public will be given the opportunity to comment on any application by submitting written interventions to the Commission.

23.  Notice of each application will also be published in newspapers of general circulation within the area to be served.

24.  Applications filed in response to this call must be submitted in electronic form using Access Key. For instructions on how to file applications using Access Key, consult the Commission website at http://www.crtc.gc.ca/eng/forms/form_200.htm. Applicants who are unable to file their applications using Access Key should contact the Commission’s single point of contact for small undertakings at 1-866-781-1911.

25.  The new Canadian Radio-Television and Telecommunications Commission Rules of Practice and Procedure (the Rules of Procedure) set out, among other things, the rules for filing, content, format of applications, as well as the procedure for filing confidential information and requesting its disclosure. Accordingly, the procedure set out in the notice of consultation announcing the public hearing must be read in conjunction with the Rules of Procedure and its accompanying documents, which can be found on the Commission’s website under “CRTC Rules of Practice and Procedure.”

Secretary General

Appendix 1 to Broadcasting Notice of Consultation CRTC 2011-398

Requirements for new commercial radio licences

The Commission requires applicants to provide the information set out below.

Programming information

Musical content

Contributions to Canadian content development

Local programming

In addition, applicants for new ethnic commercial radio licences should provide the following information so that the application can be evaluated according to Ethnic Broadcasting Policy, Public Notice CRTC 1999-117, 16 July 1999:

Commitments as conditions of licence

Applicants are required to provide their views on the possibility of the Commission imposing any or all of the above commitments as conditions of licence.

Technical information

Applicants are required to provide the following information:

Financial information

Applicants must provide an overall business plan that includes the following information:

Appendix 2 to Broadcasting Notice of Consultation CRTC 2011-398

Requirements for new community or campus radio licences

Applicants should provide the information set out below so that the Commission may evaluate the application in light of the Campus and community radio policy, Broadcasting Regulatory Policy CRTC 2010-499, 22 July 2010.

Community support

Programming information

Musical content

Local programming

In addition, applicants for new community stations that intend to devote at least 60% of their programming to ethnic programming and at least 50% of their programming to third-language programming should provide the information set out below so that the Commission can evaluate the application according to Ethnic Broadcasting Policy, Public Notice CRTC 1999‑117, 16 July 1999.

Commitments as conditions of licence

Applicants are required to provide their views on the possibility of the Commission imposing any or all of the above commitments as conditions of licence.

Technical information

Applicants are required to provide the following information:

Financial information

Applicants must provide:

Appendix 3 to Broadcasting Notice of Consultation CRTC 2011-398

Application for a native Type B service

Applicants should provide the information set out below so that the Commission may evaluate the application in light of the Native Broadcasting Policy, Public Notice CRTC 1990-89, 20 September 1990.

Native community support

Programming information

Musical content

Aboriginal talent development

Programming orientation

Commitments as conditions of licence

Applicants are required to provide their views on the possibility of the Commission imposing any or all of the above commitments as conditions of licence.

Technical information

Applicants are required to provide the following information:

Financial information

Applicants must provide:

CRTC - FINANCIAL SUMMARY - RADIO

Calgary Market

 

2006

2007

 

2008

 

2009

 

2010

 

CAGR* (%)

Reporting Units

13

16

 

17

 

17

 

17

 

 

Revenue ($)

y1

y2

Var %

y3

Var %

y4

Var %

y5

Var %

5 years

Local Time Sales

61 372 709

69 370 250

13.03

78 040 072

12.5

68 617 805

-12.07

65 608 302

-4.39

1.7

National Time Sales

19 924 634

21 335 604

7.08

22 460 956

5.27

20 497 948

-8.74

20 795 989

1.45

1.1

Network Payments

 

 

 

0

 

0

n/a

0

n/a

n/a

Infomercials

 

 

 

 

 

 

 

 

 

n/a

Syndication-Production

231 140

122 572

-46.97

80 955

-33.95

90 732

12.08

76 103

-16.12

-24.3

Government Grants

 

 

 

 

 

 

 

0

 

n/a

Other Revenue

510 348

1 231 796

141.4

1 654 575

34.32

1 839 296

11.16

1 400 085

-23.88

 

Total Revenue

82 038 831

92 060 222

12.22

102 236 558

11.05

91 045 781

-10.95

87 880 479

-3.48

1.7

Expenses ($)

 

 

 

 

 

 

 

 

 

 

Program

18 544 383

21 802 245

17.57

27 023 230

23.95

27 952 656

3.44

28 622 311

2.4

11.5

Technical

1 652 381

1 952 024

18.13

2 785 840

42.72

2 799 398

0.49

2 615 690

-6.56

12.2

Sales and Promotion

19 596 783

21 605 504

10.25

26 172 106

21.14

24 081 415

-7.99

22 588 446

-6.2

3.6

Administration and General

13 378 913

18 002 260

34.56

17 415 033

-3.26

14 790 969

-15.07

14 408 499

-2.59

1.9

Total Expenses

53 172 460

63 362 033

19.16

73 396 209

15.84

69 624 438

-5.14

68 234 946

-2

6.4

Operating Income

28 866 371

28 698 189

 

28 840 349

 

21 421 343

 

19 645 533

 

 

Depreciation

1 695 912

1 950 633

15.02

2 092 191

7.26

2 481 227

18.59

2 141 333

-13.7

6

PBIT**

27 170 459

26 747 556

 

26 748 158

 

18 940 116

 

17 504 200

 

 

Interest Expense

853 614

1 240 204

45.29

740 362

-40.3

886 555

19.75

789 409

-10.96

 

Adjustments Gain (Loss)

2 353 189

1 000 998

-57.46

-883 499

-188.3

-971 444

9.95

-44 065 968

>999±

 

Pre-tax Profit

28 670 034

26 508 350

 

25 124 297

 

17 082 117

 

-27 351 177

 

 

Programming (%)

 

 

 

 

 

 

 

 

 

 

Prog Expense/Expense Total

34.9

34.4

 

36.8

 

40.1

 

41.9

 

 

Prog Expense/Revenue Total

22.6

23.7

 

26.4

 

30.7

 

32.6

 

 

Staff

 

 

 

 

 

 

 

 

 

 

Total Salaries

25 930 236

31 046 935

19.73

36 831 974

18.63

35 982 858

-2.31

33 952 391

-5.64

7

Average Staff Count

343.7

415.3

20.82

451.5

8.72

442.5

-2

422.4

-4.54

 

Average Salary ($)

75 440

74 763

-0.9

81 577

9.11

81 319

-0.32

80 376

-1.16

1.6

Salaries/Expense Total (%)

48.8

49

 

50.2

 

51.7

 

49.8

 

 

Profitability (%)

 

 

 

 

 

 

 

 

 

 

Operating Margin

35.2

31.2

 

28.2

 

23.5

 

22.4

 

 

PBIT Margin

33.1

29.1

 

26.2

 

20.8

 

19.9

 

 

Pre-tax Margin

34.9

28.8

 

24.6

 

18.8

 

-31.1

 

 

*CAGR = Compound Annual Growth Rate

**PBIT = Profit before interest and taxes


Date modified: