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Please note that the Official Languages Act requires that government publications be available in both official languages.
In order to meet some of the requirements under this Act, the Commission's transcripts will therefore be bilingual as to their covers, the listing of CRTC members and staff attending the hearings, and the table of contents.
However, the aforementioned publication is the recorded verbatim transcript and, as such, is transcribed in either of the official languages, depending on the language spoken by the participant at the hearing.
TRANSCRIPT OF PROCEEDINGS BEFORE
THE CANADIAN RADIO‑TELEVISION AND
TRANSCRIPTION DES AUDIENCES DEVANT
LE CONSEIL DE LA RADIODIFFUSION
ET DES TÉLÉCOMMUNICATIONS CANADIENNES
Various broadcasting applications further to calls for
applications for broadcasting licences to carry on radio programming undertakings to serve Owen Sound, Windsor and Peterborough, Ontario /
Plusieurs demandes en radiodiffusion suite aux appels de demandes de licence de radiodiffusion visant l'exploitation d'entreprises de programmation de radio pour desservir Owen Sound, Windsor et Peterborough (Ontario)
HELD AT: TENUE À:
Rooms B, C & D Salons B, C et D
Delta Hotel London Armouries Hôtel Delta London Armouries
325 Dundas Street 325, rue Dundas
London, Ontario London (Ontario)
December 10, 2007 Le 10 décembre 2007
In order to meet the requirements of the Official Languages
Act, transcripts of proceedings before the Commission will be
bilingual as to their covers, the listing of the CRTC members
and staff attending the public hearings, and the Table of
However, the aforementioned publication is the recorded
verbatim transcript and, as such, is taped and transcribed in
either of the official languages, depending on the language
spoken by the participant at the public hearing.
Afin de rencontrer les exigences de la Loi sur les langues
officielles, les procès‑verbaux pour le Conseil seront
bilingues en ce qui a trait à la page couverture, la liste des
membres et du personnel du CRTC participant à l'audience
publique ainsi que la table des matières.
Toutefois, la publication susmentionnée est un compte rendu
textuel des délibérations et, en tant que tel, est enregistrée
et transcrite dans l'une ou l'autre des deux langues
officielles, compte tenu de la langue utilisée par le
participant à l'audience publique.
Canadian Radio‑television and
Conseil de la radiodiffusion et des
Transcript / Transcription
Various broadcasting applications further to calls for
applications for broadcasting licences to carry on radio programming undertakings to serve Owen Sound, Windsor and Peterborough, Ontario /
Plusieurs demandes en radiodiffusion suite aux appels de demandes de licence de radiodiffusion visant l'exploitation d'entreprises de programmation de radio pour desservir Owen Sound, Windsor et Peterborough (Ontario)
BEFORE / DEVANT:
Rita Cugini Chairperson / Présidente
Peter Menzies Commissioner / Conseiller
Helen del Val Commissioner / Conseillère
ALSO PRESENT / AUSSI PRÉSENTS:
Cindy Ventura Secretary / Secrétaire
Joe Aguiar Hearing Manager /
Gérant de l'audience
Kelly-Anne Smith Legal Counsel /
HELD AT: TENUE À:
Rooms B C D Salons B C D
Delta Hotel London Armouries Hôtel Delta London Armouries
325 Dundas Street 325, rue Dundas
London, Ontario London (Ontario)
December 10, 2007 Le 10 décembre 2007
- iv -
TABLE DES MATIÈRES / TABLE OF CONTENTS
PAGE / PARA
PRÉSENTATION PAR / PRESENTATION BY:
2079966 Ontario Limited 5 / 26
Blackburn Radio Inc. 60 / 403
Larche Communications Inc. 120 / 779
Evanov Communications Inc. 169 / 1079
No interventions / Aucune intervention
INTERVENTION PAR / INTERVENTION BY:
Jamie Pettit 221 / 1380
Walkerton and District Health Services Foundation 233 / 1448
Bayshore Broadcasting Corporation 240 / 1500
REPLY BY / RÉPLIQUE PAR:
Evanov Communications Inc. 262 / 1613
Blackburn Radio Inc. 272 / 1660
2079966 Ontario Limited 282 / 1710
London, Ontario / London (Ontario)
‑‑‑ Upon commencing on Monday, December 10, 2007
at 0930 / L'audience débute le lundi
10 décembre 2007 à 0930
LISTNUM 1 \l 11 THE CHAIRPERSON: Good morning, ladies and gentlemen and welcome to this public hearing.
LISTNUM 1 \l 12 My name is Rita Cugini and I am the CRTC Regional Commissioner for Ontario. In case you hadn't guessed by now, I will be presiding over this hearing.
LISTNUM 1 \l 13 Joining me on the panel are my colleagues, Helen del Val, Regional Commissioner for British Columbia and the Yukon, and Peter Menzies, National Commissioner.
LISTNUM 1 \l 14 The Commission team assisting us includes Hearing Manager Joe Aguiar, who is also Manager of English Radio Operations; Kelly‑Anne Smith, Legal Counsel;and Cindy Ventura, Hearing Secretary.
LISTNUM 1 \l 15 Please speak with Ms Ventura if you have any questions with regard to hearing procedures.
LISTNUM 1 \l 16 At this hearing we will begin by considering four applications to operate a new English‑language FM commercial radio station in Owen Sound.
LISTNUM 1 \l 17 The panel will then examine two applications to operate a new FM commercial radio station in Windsor.
LISTNUM 1 \l 18 Finally, we will look at six applications to operate a new English‑language FM commercial radio station in Peterborough, as well as an application to convert the English‑language commercial radio station CKRU Peterborough from the AM band to the FM band and three applications to operate a new English‑language FM commercial radio station in Kawartha Lakes.
LISTNUM 1 \l 19 I will now invite the Hearing Secretary, Cindy Ventura, to explain the procedures we will be following. Ms Ventura...
LISTNUM 1 \l 110 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 1 \l 111 Before beginning, I would like to go over a few housekeeping matters to ensure the proper conduct of the hearing.
LISTNUM 1 \l 112 Le service d'interprétation simultanée est disponible durant cette audience. Vous pouvez vous procurer un récepteur auprès du technicien à l'arrière de la salle. L'interprétation anglaise se trouve au canal 1, et l'interprétation française au canal 2.
LISTNUM 1 \l 113 When you are in the hearing room we would ask that you please turn off your cell phones, beepers and BlackBerrys as they are an unwelcome distraction and they cause interference on the internal communication systems used by our translators. We would appreciate your cooperation in this regard throughout the hearing.
LISTNUM 1 \l 114 We expect the hearing to take approximately four and a half days, starting today until Friday. Starting tomorrow we will begin each morning at 9:00 a.m. We will take an hour for lunch, a break in the morning and a break in the afternoon. We will let you know of any schedule changes as they may occur.
LISTNUM 1 \l 115 The Gunnery Ballroom will serve as the examination room where you can examine the public files of the applications being considered at this hearing. As indicated in the agenda, the telephone number of the examination room is 519‑660‑0688.
LISTNUM 1 \l 116 There is a verbatim transcript of the hearing being taken by the court reporter sitting at the table in front of me. If you have any questions on how to obtain all or part of this transcript, please approach the court reporter during a break.
LISTNUM 1 \l 117 Please note that the full transcript will be made available on the Commission's website shortly after the conclusion of the hearing.
LISTNUM 1 \l 118 Also, in Broadcasting Notice of Public Hearing 2007‑14‑4 the Commission announced its decision to consider two CBC Windsor technical amendment applications, items 7 and 8, as part of the non‑appearing phase of the public hearing.
LISTNUM 1 \l 119 For the record, the Commission was advised by Mr. Neeti P. Ray on his intention to submit an intervention commenting on the CBC application, item 7 on the Notice of Public Hearing.
LISTNUM 1 \l 120 Accordingly, the Commission has approved his request and Mr. Ray has submitted his intervention to the Commission with a copy to the CBC. The CBC may file its written response by December 17th, 2007.
LISTNUM 1 \l 121 A copy of Mr. Ray's intervention is available in the public examination room and has been added to the public examination file.
LISTNUM 1 \l 122 Now, Madam Chair, we will proceed with item 1 on the agenda, which is an application by 2079966 Ontario Limited for a licence to operate an English‑language FM commercial radio programming undertaking in Owen Sound.
LISTNUM 1 \l 123 The new station would operate on frequency 92.3 MHz (channel 222B) with an average effective radiated power of 32,000 watts (non‑directional antenna/antenna height of 104 metres).
LISTNUM 1 \l 124 Appearing for the Applicant is Mr. Brian Cooper. Please introduce your colleagues and you will have 20 minutes for your presentation.
LISTNUM 1 \l 125 Mr. Cooper.
PRESENTATION / PRÉSENTATION
LISTNUM 1 \l 126 MR. COOPER: Madam Chair, members of the Commission, my name is Brian Cooper. I am President of 2079966 Ontario Limited, which owns and operates The Coast FM in Kincardine, which is situated 75 kilometres south of Owen Sound.
LISTNUM 1 \l 127 I would like to begin by introducing our ownership group, and, in particular, give you a little background on myself and my partner, Danny McCarthy, as principals of this application.
LISTNUM 1 \l 128 I have been in entertainment for the last 30 years. Some highlights ‑‑ I was the former President and COO of the Toronto Argonauts when Wayne Gretsky and John CandY owned the club.
LISTNUM 1 \l 129 I was the former President and COO of Inside Sports, a TV broadcast and production company. My partner in that venture was Mr. Larry Tanenbaum, who is the current Chairman of Maple Leaf Sports and Entertainment, which owns the Toronto Maple Leafs and the Toronto Raptors.
LISTNUM 1 \l 130 While I was there, I was the founding partner of the NHL Network, along with TSN and the NHL, as well as Goal TV and the World Fishing Network.
LISTNUM 1 \l 131 Currently I am President and CEO of Sports and Entertainment. We are a marketing consultancy group, with clients like Warner Brothers, Sirius Satellite Radio, Scotiabank, and a host of others.
LISTNUM 1 \l 132 My partner, Danny McCarthy, and I met 35 years ago at St. Mary's University as accounting students. Dan is a chartered accountant. He has 20 years in the investment banking industry. He is currently Vice‑Chairman of CIBC World Markets, and has engineered some of the largest financing deals in Canadian corporate history.
LISTNUM 1 \l 133 One thing we both have in common is our love for rock'n'roll music. Both Dan and I were DJs at St. Mary's University's radio station, and even to this date Dan is the lead singer of a rock group called The Hedge Funds. Fortunately, he is not going to be singing for us today.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 134 On my right is Christopher Grossman, President of Haliburton Radio Broadcasting Group, which owns and operates 18 small market licences throughout Ontario.
LISTNUM 1 \l 135 On my left, next to Danny, is the key builder of this application, Mike Brough, who is the General Manager of The Coast Kincardine FM, and will be the General Manager of The Pearl if our application is approved.
LISTNUM 1 \l 136 Next to Mike, on his left, is Lynda Cooper, who is the News Director of our Kincardine operation, and will be assuming that role in Owen Sound if our application is approved.
LISTNUM 1 \l 137 Also on the panel, on my right, is Wendy Gray, the Operations Manager of Haliburton Broadcasting Group.
LISTNUM 1 \l 138 Commissioners, our goal for this application is, one, to repatriate the rock radio tuning back to local radio in Owen Sound.
LISTNUM 1 \l 139 Two, to add a new local editorial and ownership voice in Owen Sound.
LISTNUM 1 \l 140 Three, to improve the balance of radio ownership in the Grey Bruce Region.
LISTNUM 1 \l 141 Four, to strengthen our station in Kincardine.
LISTNUM 1 \l 142 Five, to repatriate hundreds of thousands of radio ad spend dollars that are going out of market.
LISTNUM 1 \l 143 And six, to provide the citizens of Owen Sound with a much needed music genre that isn't currently being offered by a local radio operator.
LISTNUM 1 \l 144 We started The Coast FM in Ontario with great enthusiasm as a long‑time summer resident there and with strong ties to the community.
LISTNUM 1 \l 145 The thought of making our contribution to the broadcast system was and is exciting. The learning curve has been quite a ride, but Kincardine is on the air and is now very much a part of the fabric of the community.
LISTNUM 1 \l 146 It is something I am very proud of. Our focus on community and public service have become the tenets of our operation.
LISTNUM 1 \l 147 It has not been without its challenges and a few unexpected obstacles. Particularly, when we first launched, some of the agreements we had in place to utilize existing towers were reneged upon. This set us back and cost us significantly more money and time than we expected.
LISTNUM 1 \l 148 Needless to say, we are up and strong, and the operational delays have been overcome. Regardless, we have been successful in launching Kincardine, and we are hoping to have our repeaters in Goderich and Port Elgin up and running shortly, once we receive approval from the Commission on our application.
LISTNUM 1 \l 149 Part of our early success in Kincardine and assisting with our ability to overcome the start‑up obstacles was the participation of Haliburton Broadcasting Group. Their experience, infrastructure and network provided us with invaluable resources.
LISTNUM 1 \l 150 The entire experience has provided us with the ability to expand our radio holdings, and we approach the possibility of launching in Owen Sound with great expectation and enthusiasm.
LISTNUM 1 \l 151 It is our goal to build a new radio company. We want to be a new, vibrant entry into the radio business. It is our sense that the radio business needs new, vibrant ownership, and we are up for it.
LISTNUM 1 \l 152 We need to create synergies and efficiencies. We believe that a formula of programming, marketing and community integration will be a success in Owen Sound.
LISTNUM 1 \l 153 We invite you to ask anyone in our market about The Coast FM. Their answer is, inevitably, that we are their voice in the community and their choice in music.
LISTNUM 1 \l 154 We believe that the efficiencies we will gain by having The Pearl will allow us to provide the residents of both Kincardine and Owen Sound with great community‑based radio.
LISTNUM 1 \l 155 MR. McCARTHY: Good morning. We are here today to apply for a rock radio station, The Pearl, for the city of Owen Sound.
LISTNUM 1 \l 156 Our process in making this application was, first, to find a format that had proven top‑rated BBM demand over a long period of time, a format that the Owen Sound radio listener wanted.
LISTNUM 1 \l 157 Second, that we were sensitive to the size of the market, and that the format was financially viable, at both an audience and advertising level, and the new service was not a fringe or narrow format that had little chance for success.
LISTNUM 1 \l 158 Third, that we had the people resources to launch a rock product successfully, and that also had a proven track record of programming successfully in the Owen Sound radio market.
LISTNUM 1 \l 159 Fourth, that this new station would add a new and relevant editorial and ownership voice to the community.
LISTNUM 1 \l 160 Fifth, as a new ownership entry, that we have the support and expertise of a radio company with small market expertise and a proven track record of success in launching a single station up against a one‑owner, multi‑cluster radio group.
LISTNUM 1 \l 161 We looked for a format that had little to no effect on the incumbent local radio operator.
LISTNUM 1 \l 162 Our audience will be largely comprised of repatriated Owen Sound rock radio listeners who are currently listening to The Bull.
LISTNUM 1 \l 163 Finally, and most importantly, in this time of rapid technological change affecting the radio business, our business plan, revenue estimates, and CCD benefits are realistic and sensible for the size of the Owen Sound market.
LISTNUM 1 \l 164 Our goal is not to make unrealistic promises in both CCD revenue and audience estimates and come back three years from now to say we can't make a go of it.
LISTNUM 1 \l 165 MS GRAY: Owen Sound is an oddity in southern Ontario because one broadcaster owns three licences in a relatively small market, but the top‑rated station is one that is broadcast 85 kilometres away, in another small market, Wingham, Ontario.
LISTNUM 1 \l 166 Owen Sound is a rare jewel. It melds together the economic and retail hustle and bustle of the hub of the Grey Bruce Region and the natural pristine beauty of Georgian Bay.
LISTNUM 1 \l 167 Owen Sound is rich with nature. Its hidden streams, waterfalls, exotic gardens of rare orchids and ferns, clear blue water and relaxing beaches make it a tourist destination for nature lovers and historians alike.
LISTNUM 1 \l 168 But Owen Sound is growing. This 150‑year‑old city is expanding and prospering as new commercial and industrial growth populates the northwest end of Grey County, and is located in or just adjacent to Owen Sound.
LISTNUM 1 \l 169 It has a strong and motivated workforce. Employment is healthiest during the spring, summer and fall, due to the seasonal tourism that Owen Sound enjoys.
LISTNUM 1 \l 170 However, Bruce Power, the County of Grey, and Durham Furniture are ranked the top three employers, with over 500 employed. There are also five employers with over 250 employees, and 13 employers with 100 to 250 employees.
LISTNUM 1 \l 171 It offers a unique alternative to big city living, with affordable and available housing compared to other urban centres to the south.
LISTNUM 1 \l 172 In the past 10 years the city of Owen Sound has made significant strides to improve its image as not only a nature‑based travel destination, but also a business, commercial and cultural centre.
LISTNUM 1 \l 173 Owen Sound is a unique city, vibrant with nature, and rich in its history, as it was once known as the Chicago of the North.
LISTNUM 1 \l 174 Retail sales are robust and healthy in Owen Sound. According to FP Market, retail sales growth is expected to increase by 22.7 percent between 2007 and 2012.
LISTNUM 1 \l 175 Retail spending is well above the national average. According to FP Market, retail spending in Owen Sound, Bruce County and Grey County could reach $1.7 billion this year.
LISTNUM 1 \l 176 FP Market also projects retail sales to grow by 8.2 percent in Grey County and by 15 percent in Bruce County by 2009.
LISTNUM 1 \l 177 According to Statistics Canada, Owen Sound's population grew by 2.1 percent between 2001 and 2006.
LISTNUM 1 \l 178 In Owen Sound central, the 12‑plus BBM cell population is 114,000.
LISTNUM 1 \l 179 Taking into consideration the profitability of the existing stations in Owen Sound and the demand for a current and classic rock radio station, we believe the time is right for a new radio service in Owen Sound.
LISTNUM 1 \l 180 The largest benefit of The Pearl would be to its listeners. Currently, rock radio listeners, especially men aged 18 to 49, are tuning out of market for rock radio. That leaves them with little, if any, local news content, traffic, weather and community information.
LISTNUM 1 \l 181 A new rock radio FM service in Owen Sound would repatriate that lucrative demographic to a local service, providing the local information they need to know.
LISTNUM 1 \l 182 Couple that with the repatriation of advertising spending into Owen Sound, we feel that The Pearl would have little impact on the existing local radio operator.
LISTNUM 1 \l 183 The Pearl will offer this vibrant city a distinct new editorial voice, while repatriating out‑of‑market tuning with its rock‑based format.
LISTNUM 1 \l 184 It would also enhance synergies with our existing Kincardine station, CIYN.
LISTNUM 1 \l 185 MR. BROUGH: Mother of all rock, 92.3 The Pearl. Pearly inlay is used to dress up guitars. Pearl was Janis Joplin's nickname.
LISTNUM 1 \l 186 The Pearl is a highly valued gemstone that is associated with richness and class. The Pearl rock station will resonate with class. It will be a mature presentation of the greatest rock music ever recorded.
LISTNUM 1 \l 187 I was the original program director of Blackburn Radio's rock station The Bull, CIBU, in Wingham. I put that station together, knowing the huge effect it would have in the Owen Sound market.
LISTNUM 1 \l 188 Owen Sound is a rock town. It has long been a hotbed for live rock acts. The community supports live music, and now it will have a radio station that will provide 100 percent support for local musicians.
LISTNUM 1 \l 189 Years ago I can remember seeing the great Canadian punk band Teenage Head at a popular Owen Sound nightclub called The Downtowner. It is no longer there.
LISTNUM 1 \l 190 I saw another great Canadian band called The Kings at Westhill Secondary School.
LISTNUM 1 \l 191 The list of fairly major rock acts to hit the Sound at various venues is legendary.
LISTNUM 1 \l 192 There is also a groundswell of local musicians who will prosper and flourish because of The Pearl.
LISTNUM 1 \l 193 I have worked with many of the seasoned music veterans in Owen Sound over the years, hiring many at an area nightclub I once owned, and I am looking forward to breaking new ground with the new, exciting talent that is there right now.
LISTNUM 1 \l 194 A song will never become a classic unless it receives some airtime and somebody actually hears it. The Pearl will champion new Canadian rock acts, with even more emphasis on the tremendous local talent.
LISTNUM 1 \l 195 Every two hours we will play a new, emerging, local Owen Sound musician. The Pearl listeners will feel like they are part of something very special, and they will be. The Pearl will encourage listener participation at every level. The Pearl listeners will be encouraging local musicians to be the best they can be.
LISTNUM 1 \l 196 The Bull, even though it is not an Owen Sound central station has achieved great success in Owen Sound. Sales were good right out of the gate. BBM numbers, they have been tremendous.
LISTNUM 1 \l 197 CIBU, The Bull out of Wingham, is the most listened to radio service in Owen Sound central for both key advertising demographics, adults 25 to 54 and adults 18 to 49, as well as all male demos under the age of 54.
LISTNUM 1 \l 198 It is clear that the incumbent radio stations in Owen Sound are not in particular serving the rock listener age 18 to 54. These listeners are tuning to CIBU for the music with no local information and they are finding alternative choices to radio, such as the radio, internet iPods and even satellite.
LISTNUM 1 \l 199 A new rock radio service would bring those lost radio listeners back to a local service. If an out of Owen Sound central radio station like The Bull can create such an impact, imagine what an Owen Sound originating rock station will do. Rock radio is one of the most exciting formats in all of broadcasting. A hybrid meshing of classic rock and modern rock has made the format a comfortable choice for rock fans of both eras. The benefit to the local music scene would increase tenfold with the approval of our application. We will adopt Owen Sound's impressive musical community.
LISTNUM 1 \l 1100 Local music will be programmed throughout the regular broadcast day every other hour and also during a special highlight program we call "Live from Owen Sound" which will feature local musicians performing live or out on location.
LISTNUM 1 \l 1101 It is my experience that a community falls in love with a radio station that is proud of its local talent and has no fear of showcasing that talent as we already do at Coast FM in Kincardine.
LISTNUM 1 \l 1102 Canadian music in general will be of high priority. There are so many exciting emerging Canadian artists that need increased exposure, which is why our station when it comes to modern rock will place greater emphasis on Canadian as opposed to international artists.
LISTNUM 1 \l 1103 By providing fresh Canadian music and local musicians getting their first exposure on the radio, we will deliver promotions that revolve around cultivating the local music scene. The Pearl will be a breath of fresh air in Owen Sound. The Pearl will feature a fat music universe that the area has never been exposed to. We will go deeper on albums; spin a wealth of local recordings. The audience wants and needs diversity which means not only going deeper with popular artists but expanding the number of acts, actual acts in the music universe.
LISTNUM 1 \l 1104 When I was with Blackburn Radio Owen Sound was a focal point when we built The Bull. And with that experience as a rock radio programmer and Owen Sound and area concert promoter and my upbringing in the Owen Sound area, I have a wealth of research information and street experience.
LISTNUM 1 \l 1105 MS COOPER: Our experience as a small market radio operator gives us an edge in the delivery of news and information. Throughout our collective years of experience it has shown us that most important component of radio programming is the relevant local information we give to our listeners.
LISTNUM 1 \l 1106 The Pearl would provide 64 local newscasts weekly along with 64 updates on cultural, charitable and recreational activities and events. We will also offer traffic, weather, marine weather, business and regional fire advisories for a total of six and a half hours of local spoken word programming.
LISTNUM 1 \l 1107 The Pearl will service its listeners and will be on local first, covering topics of local and regional interests. The information packages will not only service the city of Owen Sound but also the Grey Bruce region and smaller catchment communities such as Port Elgin, Meaford and Chatsworth.
LISTNUM 1 \l 1108 We are also committed to providing the Cape Crocker and Saugeen First Nations communities with relevant news and entertainment programming, produced specifically for our aboriginal listeners. The Pearl will share synergies with Haliburton Broadcasting Group, already a leader in aboriginal affairs programming and small market news content.
LISTNUM 1 \l 1109 The Pearl would air an aboriginal news and current affairs program called "Bomseda" weekly in prime time. An aboriginal news reporter would regularly report and highlight issues of interest to the First Nations communities in the Grey Bruce region and throughout our regularly scheduled news packages Monday through Sunday.
LISTNUM 1 \l 1110 The Owen Sound market needs a new and a fresh editorial voice. With just one local radio operator serving news and information to the community, the area needs a distinct and fresh approach to delivering the local news. Because of our connection to the existing Haliburton Broadcasting Group, Moose Radio Network, we will share information and synergies reflected through central and northern Ontario.
LISTNUM 1 \l 1111 Two news reporters and a community stringer will be hired to deliver local news content from the outlying areas to our news room, a news room staffed by residents of Grey Bruce region. Those staff members will live, work and play in the community and will have the dedication to our listeners to deliver news that matters to them and is about them.
LISTNUM 1 \l 1112 Owen Sound is home to a thriving sports community. The Owen Sound Attack of the OHL and its supporting Junior "B" franchise, the Owen Sound Greys, will be highlighted in an expanded sports feature reported weekly.
LISTNUM 1 \l 1113 Lacrosse is also huge in Owen Sound and both the Owen Sound Woodsmen and Own Sound Rams would benefit from the on air support of The Pearl.
LISTNUM 1 \l 1114 Owen Sound also has a strong and vibrant cultural community. In 2004 Owen Sound was named the cultural capital of Canada and, according to Statistics Canada, Owen Sound enjoys a higher than average cultural employment. Those employers include the Roxy Theatre, the Summerfolk Music and Crafts Festival, the Tom Thomson Memorial Art Gallery, the Billy Bishop Museum and the Owen Sound Marine and Rail Museum, all of which would be highlighted in a weekly cultural program designed to inspire interest in the rich cultural fabric of Owen Sound.
LISTNUM 1 \l 1115 The flourishing business community will also have a voice on The Pearl. We propose a weekly segment dedicated to the Chamber of Commerce as well as the downtown improvement area.
LISTNUM 1 \l 1116 The Pearl will also provide a public service to many of Owen Sound's community groups and organizations. We believe strongly in providing airtime to organizations that are dedicated to improving the lives and circumstances of our listeners.
LISTNUM 1 \l 1117 In Owen Sound service clubs such as the Kiwanis Club, the Owen Sound family YMCA and Big Sisters of North Grey and Owen Sound would be invited into the station to update our listeners on their activities and their events. Other organizations such as the Women's House of Bruce and Grey, Keystone Child, Youth and Family Services and the South Grey Bruce Literacy Council would be given access to our community calendar segments and regular interview opportunities on The Pearl.
LISTNUM 1 \l 1118 Finally, we believe in a healthy community and to ensure that we will continue to assist health services as we have in central and northern Ontario. The Grey Bruce Regional Health Centre Foundation can be assured the full support of The Pearl as they try to raise funds for minimally invasive surgery operating rooms, a mobile digital sea arm and new nurse call systems.
LISTNUM 1 \l 1119 To enhance our on air information content we will also create a web‑based service that will highlight local public organizations and community information, all by the click of your mouse. That website will also provide valuable information to visitors to the Owen Sound area through links with the Chamber, the DIA and other tourist destinations.
LISTNUM 1 \l 1120 We have a proven track record of delivering information that matters to our listeners. Our news philosophy is simple: provide local and relevant information to all of our listeners in a responsible and diverse manner. That commitment to our listeners will not only keep them connected to their community but also to the rest of the province and the rest of the country.
LISTNUM 1 \l 1121 MR. BROUGH: We are committed to supporting local musicians with on air exposure, but also we will make a significant financial contribution to Canadian talent development. Over the term of its licence The Pearl will contribute $70,000 in direct contributions to Canadian talent development.
LISTNUM 1 \l 1122 100 percent of our CCD contribution will be directed to FACTOR.
LISTNUM 1 \l 1123 The Pearl will also make a substantial non‑cash CTD contribution. The Pearl will take an active role in working with the local music community, providing local programming through the regular broadcast day and a showcase of local and emerging talent with live from Owen Sound.
LISTNUM 1 \l 1124 The station will promote the local music scene not only through its spoken word program but also opening doors to live venue concert opportunities sponsored by The Pearl.
LISTNUM 1 \l 1125 Also, on a biannual basis we will record and produce a compilation CD of local talent that will showcase that talent and be sold to listeners with all proceeds benefiting local school music programs.
LISTNUM 1 \l 1126 The Pearl will also work with local high schools providing mentoring for their media programs. The Pearl will also showcase the same high school students with a one‑hour radio show weekly.
LISTNUM 1 \l 1127 MR. McCARTHY: Owen Sound is a city enjoying strong growth in both population and retail spending. The Pearl will have little impact to the current radio operator. We expect the bulk of our radio advertising income will come from new advertisers and repatriated from out‑of‑market spending.
LISTNUM 1 \l 1128 MS COOPER: Madam Chair and Commissioners, we believe we have presented a solid, logical and sensible business plan for a new FM radio service for the Owen Sound market. There is clearly a disparity in service to the market, a market only served by one radio operator with the top‑rated station coming from 85 kilometres away. The Pearl will correct this disparity as well as provide a new editorial and ownership voice to the area.
LISTNUM 1 \l 1129 We believe the highlights of our application are a new editorial voice for Owen Sound, a new ownership voice for Owen Sound, a local voice for rock radio listeners currently not served by a local operator, $70,000 in CTD over the term of the licence, local news and information enhanced by the relationship with the existing Haliburton Broadcasting Group's newsrooms across the province, aboriginal programming to serve Cape Crocker and Saugeen Shores First Nations communities, 12 new jobs for local broadcasters, repatriation of advertising dollars to the local market; a realistic and solid business plan that will have little to no impact on the existing radio operator.
LISTNUM 1 \l 1130 The City of Owen Sound and, in particular, its rock radio listeners need this new service. We feel that we will bring to Owen Sound's radio listeners a strong, diverse news and information package that would offer listeners a choice of both local information and music content.
LISTNUM 1 \l 1131 We have the programming expertise. We have a vibrant new ownership group, local market knowledge along with the commitment and the resources for the long term.
LISTNUM 1 \l 1132 This concludes our presentation and we would appreciate the opportunity to answer any questions about our application the Commission has.
LISTNUM 1 \l 1133 Thank you.
LISTNUM 1 \l 1134 THE CHAIRPERSON: Thank you, Mr. Cooper, Mr. McCarthy and your colleagues. Welcome to this hearing.
LISTNUM 1 \l 1135 Just for the record, you have attached some appendices to your oral presentation, so could you just identify what those are and if this is new information?
LISTNUM 1 \l 1136 MS COOPER: That information is included in the actual application.
LISTNUM 1 \l 1137 THE CHAIRPERSON: So it's not new information?
LISTNUM 1 \l 1138 MR. GROSSMAN: No, it's not. No.
LISTNUM 1 \l 1139 THE CHAIRPERSON: All right. I just wanted to get that on the record.
LISTNUM 1 \l 1140 Thank you.
LISTNUM 1 \l 1141 I apologize for the buzz. It seems to be my microphone, a bad thing to happen at a radio hearing but we hope to get it resolved on the break. So just bear with us for this presentation.
LISTNUM 1 \l 1142 Mr. Brough, I want to thank you for ‑‑ first of all, for providing a little bit more context on the choice of the name "The Pearl". And I was wondering is "Mother of All Rock" going to be your tagline?
LISTNUM 1 \l 1143 MR. BROUGH: Yes, yes.
LISTNUM 1 \l 1144 THE CHAIRPERSON: Okay, because when I think of The Pearl I thought that sounds more like an easy listening station to me. But thanks for the context.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1145 THE CHAIRPERSON: So I do want to start with the choice of format because, as we know, once you choose the format that forms the basis for your business plan. And you are proposing a blend of current and classic rock, targeting a predominantly male audience. Now, according to your application age 25 to 54, but in your oral presentation this morning you seemed to focus more on a younger demo; that is, 18 to 54.
LISTNUM 1 \l 1146 So what is your core target audience for this radio station?
LISTNUM 1 \l 1147 MR. BROUGH: I will turn that over to Christopher.
LISTNUM 1 \l 1148 THE CHAIRPERSON: Sure.
LISTNUM 1 \l 1149 MR. GROSSMAN: I think the reference that Mike made where it is all demographics from 18‑54, but the primary focus of the application is adults 25‑54, which is the core audience of The Bull out of Wingham.
LISTNUM 1 \l 1150 THE CHAIRPERSON: What would you say is the median age therefore?
LISTNUM 1 \l 1151 MR. GROSSMAN: I think it would probably a 39‑40 year‑old male.
LISTNUM 1 \l 1152 THE CHAIRPERSON: Okay, thank you for that.
LISTNUM 1 \l 1153 And obviously you looked at what currently exists in the market. You looked at where the out‑of‑market tuning is going. Did you take any other factors into consideration in coming up with this target demo?
LISTNUM 1 \l 1154 MR. COOPER: Madam Chair, we did. We did a survey of the marketplace, of existing radio listenership and their patterns. We looked at the out‑of‑market tuning as well and came to the conclusion that this was the underserved portion of the music genre that we needed to focus on.
LISTNUM 1 \l 1155 THE CHAIRPERSON: Did you include the survey in your application?
LISTNUM 1 \l 1156 MR. COOPER: The reference to a survey is looking at the BBM ratings historically over the last few years.
LISTNUM 1 \l 1157 THE CHAIRPERSON: Okay. I believe I read in your application that you say that 24 per cent of out‑of‑market tuning goes to CIBU‑FM, is that correct?
LISTNUM 1 \l 1158 MR. GROSSMAN: I believe it is 30 per cent.
LISTNUM 1 \l 1159 THE CHAIRPERSON: It is up to 30 per cent. How much of that ‑‑ you are shaking your head.
LISTNUM 1 \l 1160 MR. GROSSMAN: The ratings just came out last week and I think two things to note. Number one, was from my reference a record of 70.9 per cent of out‑of‑market tuning in Owen Sound right now and, The Bull, I think in the Rank Report that we gave you, which is the most updated rating, is 24 and change in terms of a share in the marketplace right now.
LISTNUM 1 \l 1161 THE CHAIRPERSON: And how much of that out‑of‑market tuning do you hope to capture?
LISTNUM 1 \l 1162 MR. GROSSMAN: Mike?
LISTNUM 1 \l 1163 MR. BROUGH: We expect to capture 15 to 20 per cent of the market share with The Bull.
LISTNUM 1 \l 1164 THE CHAIRPERSON: And that would come all from the out‑of‑market ‑‑
LISTNUM 1 \l 1165 MR. BROUGH: Yes.
LISTNUM 1 \l 1166 THE CHAIRPERSON: ‑‑ currently from those people who are listening to the Wingham station, correct?
LISTNUM 1 \l 1167 MR. BROUGH: Most of those numbers would come as repatriated listeners.
LISTNUM 1 \l 1168 THE CHAIRPERSON: Okay. In response to deficiencies you did provide a limited play list of artists. And I see that it is a little bit expanded in the appendices that you attached to your oral presentation. Have you done a comparison to determine the level of duplication with the Wingham station?
LISTNUM 1 \l 1169 MR. BROUGH: When you are working with a rock format there is going to be a lot of duplication. What sets our particular application apart from the others, and even The Bull itself, is how many spins we are going to be giving emerging artists, emerging Canadian artists, local Owen Sound artists. So there is going to be a huge diversity when it comes to that with our actual format compared to that of The Bull.
LISTNUM 1 \l 1170 THE CHAIRPERSON: The reason I am asking is I am trying to get a handle on what is going to be so attractive about your format and your musical selections that will prompt those people who are in the Owen Sound market who currently listen to Wingham to change the dial and tune into your radio station.
LISTNUM 1 \l 1171 MR. COOPER: Madam Chair, just to add to that. I think Mike alluded to it, but the fact that it is local, it is not only local artists, it is local news, local traffic and it is the local offering that we can provide to the listeners in that area rather than tuning out‑of‑market.
LISTNUM 1 \l 1172 THE CHAIRPERSON: So it is not just simply duplication of the music?
LISTNUM 1 \l 1173 MR. COOPER: No, not at all.
LISTNUM 1 \l 1174 THE CHAIRPERSON: In other words, if they like the music on Wingham then they are going to like the music on The Bull, because you are going to copy their format or their choice of artists?
LISTNUM 1 \l 1175 MR. COOPER: No, we wouldn't be copying their format. We would have our own distinct sound, as we do in Kincardine, and we are still in competition with those radio stations as well. But the fact that we ‑‑ incremental programming would be about local and we think local sells.
LISTNUM 1 \l 1176 THE CHAIRPERSON: You project a ‑‑ is it a 12 per cent share in the first year, at launch, you project to capture 12 per cent share of tuning in the Owen Sound market, right?
LISTNUM 1 \l 1177 MR. COOPER: Yes.
LISTNUM 1 \l 1178 THE CHAIRPERSON: Do you have projections for years two to seven?
LISTNUM 1 \l 1179 MR. COOPER: Christopher.
LISTNUM 1 \l 1180 MR. GROSSMAN: Yes, I think the accumulation of the share, I think largely, we are thinking of repatriating about 85 to 90 per cent of The Bull's audience in the seventh year.
LISTNUM 1 \l 1181 THE CHAIRPERSON: Right, but what would that translate into in terms of share of the Owen Sound market?
LISTNUM 1 \l 1182 MR. GROSSMAN: Again, because you'd have to take into consideration the duplication that those two stations would enjoy. I think that would probably come in at about 22 to 23 per cent share in the market
LISTNUM 1 \l 1183 THE CHAIRPERSON: By year seven?
LISTNUM 1 \l 1184 MR. GROSSMAN: Yes.
LISTNUM 1 \l 1185 THE CHAIRPERSON: Could you provide us with a break down of your projected share ‑‑
LISTNUM 1 \l 1186 MR. GROSSMAN: Yes, we can.
LISTNUM 1 \l 1187 THE CHAIRPERSON: ‑‑ from years two to seven?
LISTNUM 1 \l 1188 MR. GROSSMAN: Yes.
LISTNUM 1 \l 1189 THE CHAIRPERSON: Terrific, thank you. Is there any other out‑of‑market tuning that you expect to repatriate? In other words, is the Owen Sound listening audience listening to anything else other than the Wingham station?
LISTNUM 1 \l 1190 MR. GROSSMAN: I think the male rock station has a disproportionately high share of tuning in that marketplace ‑‑
LISTNUM 1 \l 1191 THE CHAIRPERSON: Okay.
LISTNUM 1 \l 1192 MR. GROSSMAN: ‑‑ from Wingham.
LISTNUM 1 \l 1193 THE CHAIRPERSON: Now, in terms of the impact on the existing stations, your supplementary brief specifies that 15 per cent of your advertising revenues will come from existing stations. Some might say that is minimal impact. Do you see any duplication with the current AC station that is in the market?
LISTNUM 1 \l 1194 MR. GROSSMAN: I think, you know, just from my personal experience when we have, in Haliburton, have launched single stations up against multi‑station clusters what we found, normally, is that the market tends to, you know, the incumbents tend to be affected marginally if the format ‑‑ in this case, which is glaringly obvious, and then the market tends to grow. So I think that you have a lot of disenfranchised rock advertisers, there is a lot of repatriation advertiser opportunities for us.
LISTNUM 1 \l 1195 And I just think of the experience that we had in North Bay where we launched the station, had strong ratings out of the age, and overachieved both the estimates that we made to the CRTC as well as what we think we can do in this market.
LISTNUM 1 \l 1196 THE CHAIRPERSON: So it is safe to assume that your contention is that since the format currently doesn't exist from a local broadcaster the impact, therefore, on that existing broadcaster is ‑‑
LISTNUM 1 \l 1197 MR. GROSSMAN: Yes, I think it is contention and the experience that we have as well as Mike being the author of The Bull in Wingham.
LISTNUM 1 \l 1198 THE CHAIRPERSON: In terms of advertising revenues to come from new advertisers you estimate that 50 per cent increasing to 85 per cent by year seven of your advertising revenues will come from new advertisers. Some would say this is rather high. So what evidence do you have to sustain this dependency on new advertisers in this market?
LISTNUM 1 \l 1199 MR. GROSSMAN: I think the evidence would be the local newspapers in both those markets, both of them weekly. They are best described as the yellow pages in terms of thickness. There is a tremendous opportunity in that market.
LISTNUM 1 \l 1200 And again, you know, drawing on our experience, when we go into these markets as a single station up against a cluster, we tend to find that they have had one sales rep come for 20 years or 30 years to specific customers. And again, we are not suggesting that Bayshore hasn't done a wonderful job doing radio in the market, which they have I am sure. But the reality is if you get more people in front of more advertisers in a local small market you will get more advertising.
LISTNUM 1 \l 1201 THE CHAIRPERSON: But should this not come to pass, should your seemingly reliance on new advertisers not come to pass, what effect will that have on your business plan overall?
LISTNUM 1 \l 1202 MR. GROSSMAN: Again, I would suggest that it is from our experience in doing it and being successful doing it. I don't know, necessarily, if that is the case when you have a single market with one sales force over a long period of time talking to advertisers about radio.
LISTNUM 1 \l 1203 THE CHAIRPERSON: Okay. I am going to move on now to the specifics of your proposal as they relate to local spoken word programming, live‑to‑air and voice tracking, programming staff levels, synergies and, finally, CCD. And we will take these one at a time, obviously.
LISTNUM 1 \l 1204 So spoken word. You are proposing 6.5 hours of spoken word of which 3.5 hours will be news. You also say that of that news portion 70 per cent would be dedicated to local news stories. So if my math is correct, of the 3.5 hours of news, 2 hours and 45 minutes are devoted to local news. Is that right? Have I got my grade 12 math right?
LISTNUM 1 \l 1205 MR. COOPER: Yes, you do, Madam, Chair.
LISTNUM 1 \l 1206 THE CHAIRPERSON: Okay, thank you.
LISTNUM 1 \l 1207 And so the 1 hour and 30 minutes that is left of the news portion, will that be regional, national and international news stories?
LISTNUM 1 \l 1208 MR. COOPER: Madam Chair, I am going to direct this to Wendy.
LISTNUM 1 \l 1209 THE CHAIRPERSON: Sure.
LISTNUM 1 \l 1210 MS GRAY: You are correct, that will be dedicated to regional, provincial, national, international news, yes.
LISTNUM 1 \l 1211 THE CHAIRPERSON: Okay. So if we have taken care of the 3.5 hours of the total 6.5 hours of spoken word, what makes up the balance of three hours?
LISTNUM 1 \l 1212 MS GRAY: The rest of the spoken word programming will be community information through our community calendars. We have also factored in a health watch program because the demographic is aging, health issues are important, business issues as well, we have a business report. We also have a live announcer speak as well, factored into that.
LISTNUM 1 \l 1213 THE CHAIRPERSON: Okay, I get that.
LISTNUM 1 \l 1214 MS GRAY: So the balance of it, basically, is going to be local information.
LISTNUM 1 \l 1215 THE CHAIRPERSON: And what about surveillance material, where would that factor in? Is that in the 3 hours or the 3.5 hours, news, weather?
LISTNUM 1 \l 1216 MS GRAY: That would also factor into the other 3.5 hours.
LISTNUM 1 \l 1217 THE CHAIRPERSON: Part of the 3.5 or part of the 3?
LISTNUM 1 \l 1218 MS GRAY: Part of the 3 hours.
LISTNUM 1 \l 1219 THE CHAIRPERSON: Okay. You spoke about it in your oral presentation, but in your application as well you are proposing to give local high school students their own weekly one‑hour radio show? Is that in the 3.5 hours or the 3 hours?
LISTNUM 1 \l 1220 MR. COOPER: Madam Chair, we actually did that in Kincardine. Mike, could you speak to that please?
LISTNUM 1 \l 1221 MR. BROUGH: Sure. Yes, what a wonderful program and what a way to mentor. We took a media class. I did actually this in Huntsville as well, I was up there for 10 years.
LISTNUM 1 \l 1222 And I approached the high school, because I think it is very important to get the youth involved. You get the youth, you get their parents, you get their aunts and uncles involve din your radio station as well, it is that commitment and passion.
LISTNUM 1 \l 1223 So we bring the kids in, I give them radio 101 and then I put them to work and they put together their own one‑hour show. I let them choose the music from the music universe and they can spin as many local artists as they want to and that is a full hour, once a week.
LISTNUM 1 \l 1224 THE CHAIRPERSON: And that is part of the 3 hours?
LISTNUM 1 \l 1225 MR. BROUGH: And that is part of the 3 hours. Not, that is not a part of ‑‑
LISTNUM 1 \l 1226 MS GRAY: That is not part of the ‑‑
LISTNUM 1 \l 1227 MR. BROUGH: ‑‑ that is addition to our 3 hours.
LISTNUM 1 \l 1228 MS GRAY: ‑‑ no, that is not part of the 3 hours. That is in addition to the ‑‑
LISTNUM 1 \l 1229 THE CHAIRPERSON: That is in addition?
LISTNUM 1 \l 1230 MS GRAY: Yes, that is in addition, yes.
LISTNUM 1 \l 1231 MR. BROUGH: That is in addition.
LISTNUM 1 \l 1232 THE CHAIRPERSON: Okay. Have you contacted local high school to gauge the interest in such a project?
LISTNUM 1 \l 1233 MR. BROUGH: I haven't as of yet, but I will tell you from experience, it will be instantaneous and they will be very happy to see me.
LISTNUM 1 \l 1234 THE CHAIRPERSON: Who is going to be responsible for ensuring ‑‑ I mean, high school kids, right, I mean, who is going to be responsible for ensuring that this program will meet broadcast standards?
LISTNUM 1 \l 1235 MR. BROUGH: That would be myself as the general manager of The Bull in Owen Sound, that would be my responsibility and I will take it on gladly.
LISTNUM 1 \l 1236 THE CHAIRPERSON: Okay. And just to be absolutely sure, all of the spoken word programming is averaged over the broadcast week?
LISTNUM 1 \l 1237 MS GRAY: That is correct.
LISTNUM 1 \l 1238 THE CHAIRPERSON: Okay, thank you. Will you be doing any voice tracking or automated programming?
LISTNUM 1 \l 1239 MS GRAY: We will have voice tracking. Our middays and evenings will be voice tracks.
LISTNUM 1 \l 1240 THE CHAIRPERSON: So how many hours live? How many hours voice tracked?
LISTNUM 1 \l 1241 MS GRAY: We will have 126 hours of local live programming and ‑‑
LISTNUM 1 \l 1242 MR. GROSSMAN: Not quite.
LISTNUM 1 \l 1243 MS GRAY: Not quite.
LISTNUM 1 \l 1244 MR. GROSSMAN: The originating programming will be 126 hours and, the block of Monday to Friday, 64 hours a week will be voice tracked.
LISTNUM 1 \l 1245 THE CHAIRPERSON: Sixty‑four?
LISTNUM 1 \l 1246 MR. GROSSMAN: Sixty‑four.
LISTNUM 1 \l 1247 THE CHAIRPERSON: Okay, thank you.
LISTNUM 1 \l 1248 Now, in terms of who will be doing all of this work. We do have your projected staffing and, therefore, salary levels. And there is the context of the fact that, if licensed, you will be competing in not only for listeners but also for staff. And this competition, I mean, you are going to be facing competition from a well‑heeled incumbent in the market and so I would just like to explore this area with you for a minute.
LISTNUM 1 \l 1249 I believe in your oral presentation, if I am not mistaken, you said you hired two people to staff the newsroom; is that correct?
LISTNUM 1 \l 1250 MS GRAY: That's two news reporters.
LISTNUM 1 \l 1251 THE CHAIRPERSON: Right.
LISTNUM 1 \l 1252 MS GRAY: And then we will also have an announcer for the morning drive. So it's three ‑‑ the news director will also be the morning show co‑host and news reader ‑‑ an additional two reporters and a part‑time freelance stringer.
LISTNUM 1 \l 1253 THE CHAIRPERSON: And these three people essentially will be responsible for all of the spoken word content on the station?
LISTNUM 1 \l 1254 MS GRAY: They will be responsible for the news content and the surveillance information.
LISTNUM 1 \l 1255 THE CHAIRPERSON: Right.
LISTNUM 1 \l 1256 MS GRAY: The announcers ‑‑ our morning show and our announcers will also cultivate local content throughout their shows as part of their show prep.
LISTNUM 1 \l 1257 THE CHAIRPERSON: Okay. What evidence do you have that the salary levels proposed are commensurate with this market?
LISTNUM 1 \l 1258 MR. GROSSMAN: They are just averages that ‑‑ my personal experience in being in the markets that we are in, for a market that size they are certainly measurable and attainable.
LISTNUM 1 \l 1259 THE CHAIRPERSON: And you are confident that you can attract the kind of talent that you are going to need to compete, like I said, not only with the incumbent but also with out‑of‑market tuning?
LISTNUM 1 \l 1260 MR. GROSSMAN: Yes, we are looking forward to it.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1261 THE CHAIRPERSON: And I am sure that talent is as well.
LISTNUM 1 \l 1262 Now in terms of synergies, you spoke about it in your application, specifically synergies with the Kincardine station, and in your oral presentation today you also talked about synergies with Haliburton.
LISTNUM 1 \l 1263 So you could you please elaborate on both of those? Where do you expect to see the synergies and do these synergies represent in the long run cost savings to you?
LISTNUM 1 \l 1264 MR. COOPER: Madam Chair, the synergies we gain from Haliburton are tremendous in that they ‑‑ not just the experience that Christopher and his group provide to us but the infrastructure that they provide to us, whether it is in accounting or in the technical area, we have gained a lot in that area.
LISTNUM 1 \l 1265 By owning two stations, we obviously will be having some multitasking going on, allowing for us to gain some efficiencies through that and through personnel as well. I am not saying that we will be bringing new personnel into the market into the Owen Sound station but there will definitely be some synergies gained.
LISTNUM 1 \l 1266 THE CHAIRPERSON: What kind of multitasking?
LISTNUM 1 \l 1267 MS GRAY: Our multitasking, just by way of reference, our program director would also be the morning ‑‑ or the afternoon drive announcer. Our news director, as I mentioned, would be our morning show co‑host and news reader.
LISTNUM 1 \l 1268 We would have a new hire that would be a full‑time weekend/specialty programming person who would take care of The Pearl after hours as well as doing some voice tracking. A new hire promotion assistant as well as an announcer.
LISTNUM 1 \l 1269 So those are ‑‑ we have in total four multitasking positions planned.
LISTNUM 1 \l 1270 THE CHAIRPERSON: Right, but do any of these people also work for the Kincardine station or for Haliburton?
LISTNUM 1 \l 1271 MR. GROSSMAN: Yes, and they would share those responsibilities with Kincardine as well.
LISTNUM 1 \l 1272 THE CHAIRPERSON: And will there be any sharing of programming?
LISTNUM 1 \l 1273 MS GRAY: There will be one shared program with HBG, which would be our Aboriginal programming Bomseda and that would be shared but it would include also information from Saugeen Shores and Cape Crocker.
LISTNUM 1 \l 1274 THE CHAIRPERSON: So are there staff members who will be working exclusively for The Pearl, who won't have any other responsibilities, and who would they be?
LISTNUM 1 \l 1275 MR. GROSSMAN: Eight of the 12 people work exclusively for The Pearl.
LISTNUM 1 \l 1276 THE CHAIRPERSON: And what would those positions be?
LISTNUM 1 \l 1277 MS GRAY: They would be the two news reporters ‑‑
LISTNUM 1 \l 1278 THE CHAIRPERSON: Okay. Then I misunderstood.
LISTNUM 1 \l 1279 MS GRAY: ‑‑ the news stringer ‑‑
LISTNUM 1 \l 1280 THE CHAIRPERSON: Okay, that is fine. I am sorry, I misunderstood then. I thought that the news reporter and the stringer would also be working at the Kincardine station.
LISTNUM 1 \l 1281 MS GRAY: No.
LISTNUM 1 \l 1282 MR. COOPER: It is a busy day, Madam Chair.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1283 THE CHAIRPERSON: Thank you very much.
LISTNUM 1 \l 1284 We will move on to CCD. In your response to deficiencies dated August 17, you commit to an over and above CCD contribution of $10,000 annually.
LISTNUM 1 \l 1285 Will you accept this as a condition of licence?
LISTNUM 1 \l 1286 MR. GROSSMAN: Yes.
LISTNUM 1 \l 1287 MR. COOPER: Yes, we will.
LISTNUM 1 \l 1288 THE CHAIRPERSON: I love it when people answer that so quickly. I dare someone to say no one day.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1289 THE CHAIRPERSON: Further to that, you commit that 100 percent of the over and above contribution will be directed to FACTOR, although the Commercial Radio Policy requires that only 20 percent of the over and above be earmarked for FACTOR.
LISTNUM 1 \l 1290 So give that this is a bit of a departure, will you accept a condition of licence that 100 percent of the over and above will be directed to FACTOR?
LISTNUM 1 \l 1291 MR. COOPER: Yes, we will, Madam Chair.
LISTNUM 1 \l 1292 THE CHAIRPERSON: Thank you.
LISTNUM 1 \l 1293 There is one further question on CCD. Please confirm your understanding that if licensed your station will have to contribute a basic annual CCD contribution imposed by regulation based on the station's total annual revenues and in the amounts as set out in paragraph 116 of the new Radio Policy, Public Notice CRTC‑2006‑158.
LISTNUM 1 \l 1294 MR. COOPER: Yes, Madam Chair.
LISTNUM 1 \l 1295 THE CHAIRPERSON: The final line of questioning has to do with competition.
LISTNUM 1 \l 1296 You are not the only applicant proposing this format. As you know, Larche Communications is proposing a similar format or maybe you don't think it is similar at all.
LISTNUM 1 \l 1297 So I would like you to comment on whether or not you see similarities with the Larche proposal, what those are or what those differences may be.
LISTNUM 1 \l 1298 MR. COOPER: Christopher.
LISTNUM 1 \l 1299 MR. GROSSMAN: Yes, there is no question that it is very similar. The genre, the music, the style, the ambiance of the presentation is probably the closest to us.
LISTNUM 1 \l 1300 I can't comment on Paul's presentation but I can definitely comment on the fact that the benefit to the system here is clear, that we are going to strengthen and add a new ownership group to well‑known Canadian business people.
LISTNUM 1 \l 1301 Obviously, we have got the architect of this station that is the top‑rated station in the market coming here to redesign or look for a new canvass for this station.
LISTNUM 1 \l 1302 And obviously, I think the question you have got to ask yourself is ‑‑ you know, we are in it for the long haul. These guys have the resources, the expertise, the connections to add a new vibrant ownership group into the broadcast system.
LISTNUM 1 \l 1303 We have seen with consolidation with the company I worked for for years, Standard, CHUM, OK Group, the reality is they have to be replaced and I am excited to be working with these guys. They are committed, crazy and resourceful.
LISTNUM 1 \l 1304 I think that if you can see a way around this, the CCD benefits and the fact that this presentation, I believe, is strong, these guys are going to add a tremendous ownership to the radio broadcast system. I really believe that.
LISTNUM 1 \l 1305 THE CHAIRPERSON: I think you are anticipating the final question, which is always ‑‑
LISTNUM 1 \l 1306 MR. GROSSMAN: Yes.
LISTNUM 1 \l 1307 THE CHAIRPERSON: ‑‑ this is your two minutes but that is good rehearsal.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1308 THE CHAIRPERSON: How many new commercial radio stations do you think the Owen Sound market can sustain?
LISTNUM 1 \l 1309 MR. COOPER: Well, Madam Chair, deep down I would say one and that is us.
LISTNUM 1 \l 1310 But having said that, when I look at what we have been reading, the pent‑up demand and we think the growth in the advertising dollar that it probably could take two.
LISTNUM 1 \l 1311 THE CHAIRPERSON: And if we were to license more than one, as you are suggesting, you obviously, based on what Mr. Grossman just said, would not want us to license both you and Larche Communications? That is the one that would have the most impact on your business plan, obviously.
LISTNUM 1 \l 1312 MR. COOPER: Right.
LISTNUM 1 \l 1313 THE CHAIRPERSON: Of the other two, is there one that would have the least impact on your business plan?
LISTNUM 1 \l 1314 MR. COOPER: Probably the easy rock, easy listening, the Evanov.
LISTNUM 1 \l 1315 THE CHAIRPERSON: Okay. Thank you, those are my questions.
LISTNUM 1 \l 1316 My colleagues?
LISTNUM 1 \l 1317 Commissioner del Val.
LISTNUM 1 \l 1318 COMMISSIONER del VAL: Thank you, panel.
LISTNUM 1 \l 1319 I just wanted to ask you about the ‑‑ in your opening statement you referred to the Cape Crocker First Nations communities.
LISTNUM 1 \l 1320 I am wondering whether you have any specific initiatives around that community. For example, in the Blackburn application they referred to funding the traditional powwow and I am wondering whether you had something like that in mind.
LISTNUM 1 \l 1321 MR. COOPER: I don't think we do but I will turn it over to Wendy. We do have some specific programming related to that community, I believe.
LISTNUM 1 \l 1322 MS GRAY: Haliburton Broadcasting Group has an Aboriginal reporter who is focused solely on maintaining contact and building contacts with the Aboriginal First Nations throughout the province.
LISTNUM 1 \l 1323 So we are dedicating two hours a week to that program and she has already had contact with the two particular First Nations. So we will share that programming and her expertise in the First Nations communities with The Pearl in Owen Sound. She would obviously focus on the Aboriginal communities that we have in our group.
LISTNUM 1 \l 1324 That being said, she is also very, very vocal and very, very active in the First Nations communities. So she would be spending some time there and then bringing back to the ownership group suggestions about what we could do as a radio company to help and to assist.
LISTNUM 1 \l 1325 COMMISSIONER del VAL: Thank you. And for the support that your station is going to give this First Nations community, particularly in reference to Cape Crocker, do you consider that as part of your CCD initiatives or it is apart from it?
LISTNUM 1 \l 1326 MS GRAY: I consider that apart from our CCD benefits. That is something that we would do partially as a public service and partially as a service to our Aboriginal listeners.
LISTNUM 1 \l 1327 COMMISSIONER del VAL: Thank you.
LISTNUM 1 \l 1328 Thank you, Madam Chair.
LISTNUM 1 \l 1329 THE CHAIRPERSON: Commissioner Menzies.
LISTNUM 1 \l 1330 COMMISSIONER MENZIES: Thank you.
LISTNUM 1 \l 1331 I just want to confirm for a moment that your research on the market was entirely based on BBM and your own knowledge and experience of the industry or was there anything else that I was missing?
LISTNUM 1 \l 1332 MR. GROSSMAN: No, it is based on BBM, which I think arguably would be the most accurate measurement of audience tuning in the market of Owen Sound, versus research, either demand or speculative research that would suggest that they think it might be successful. We know that the station historically over the last couple of years has that audience in the market, as recently as the last 30 days.
LISTNUM 1 \l 1333 COMMISSIONER MENZIES: And in terms of your advertising base, you speak about repatriating listeners. Would you be repatriating advertisers locally or would you be selling in a market much bigger than Owen Sound as far as local sales as opposed to national sales?
LISTNUM 1 \l 1334 MR. GROSSMAN: A combination of both of those.
LISTNUM 1 \l 1335 COMMISSIONER MENZIES: A combination of both?
LISTNUM 1 \l 1336 MR. GROSSMAN: Yes.
LISTNUM 1 \l 1337 COMMISSIONER MENZIES: Where do you see the biggest opportunity for growth because you have indicated you probably won't have ‑‑ although I expect you to like to have a bigger impact on the local ‑‑ you want to have some kind of impact on the local market but you have indicated you wouldn't have a huge economic impact on the local market.
LISTNUM 1 \l 1338 So can you just expand for me a little bit on your advertising base?
LISTNUM 1 \l 1339 MR. GROSSMAN: I think that largely, again through our experience in launching single stations up against multi single owner clusters we have found that a lot of new advertising comes into play, a lot of disenfranchised advertisers that moved out of the radio business and looked for alternative forms to advertise.
LISTNUM 1 \l 1340 And finally, obviously when you have more people in the street making calls you are going to get new advertisers that don't ever advertise radio as part of the growth of the station.
LISTNUM 1 \l 1341 COMMISSIONER MENZIES: So those might come from existing print advertisers?
LISTNUM 1 \l 1342 MR. GROSSMAN: Yes, which would be the number one focus of our new sales.
LISTNUM 1 \l 1343 COMMISSIONER MENZIES: Okay, thanks.
LISTNUM 1 \l 1344 In terms of your news operation, I am curious to know a little bit more. With two reporters and a stringer, can you give me some idea of what your beat structure might be, or your focus?
LISTNUM 1 \l 1345 Is it cops and courts? Are they creating original stuff?
LISTNUM 1 \l 1346 Because, if there are just two of them, it is a big area to cover; right?
LISTNUM 1 \l 1347 MS COOPER: I just happen to have an example of what a newscast would be like ‑‑
LISTNUM 1 \l 1348 COMMISSIONER MENZIES: Excellent.
LISTNUM 1 \l 1349 MS COOPER: ‑‑ this morning, had we been on the air as The Pearl.
LISTNUM 1 \l 1350 COMMISSIONER MENZIES: That was a fat pitch, wasn't it?
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1351 MS COOPER: As we said, 60 to 70 percent local content of our news. So this may be today's newscast.
"Owen Sound Council wants Grey County to restrict development in rural areas, saying that the county's growth management strategy doesn't conform to provincial policy. It says growth and development should be focused in settlement areas.
‑‑ one of the surrounding communities:
"...plans a new arena complex to move forward. The town is looking for proposals from architects for the design of the building.
The Bruce Grey Catholic School Board is set to get an extra $200,000 from the province for administrative funding.
The Mill Creek Bridge in Saugeen Shores is considered unsafe. The mayor is asking the county to consider repair costs during their deliberations."
LISTNUM 1 \l 1352 As we mentioned in our proposal and presentation, the Owen Sound Attack is the local OHL team. Of course, we would have coverage of their games.
LISTNUM 1 \l 1353 Unfortunately, they weren't too successful over the weekend, but we report that anyway.
LISTNUM 1 \l 1354 Then, of course, the balance of the newscast would be provincial, national and international. Of course, today in the news the two big stories are Conrad Black being sentenced and Pickton's verdict.
LISTNUM 1 \l 1355 COMMISSIONER MENZIES: What will be your sources of national news?
LISTNUM 1 \l 1356 To whom are you planning on subscribing?
LISTNUM 1 \l 1357 MS GRAY: We subscribe to Command Newswire.
LISTNUM 1 \l 1358 COMMISSIONER MENZIES: I just wanted to confirm, too, that your Aboriginal Affairs reporter is a shared resource.
LISTNUM 1 \l 1359 Is that right?
LISTNUM 1 \l 1360 MS GRAY: That is a shared resource, yes.
LISTNUM 1 \l 1361 MS COOPER: I would like to add one thing about the news, if I could.
LISTNUM 1 \l 1362 One thing that we know, particularly from being in Kincardine ‑‑ we have truly been embraced by the community, and I love how Mike ‑‑ one of the catch phrases that he has for CIYN is that we are like a comfortable sweater. You put us on and you leave us on all day.
LISTNUM 1 \l 1363 Honestly, where news is concerned, people want to know what is going on in their own backyard. They need to know what is going on in their own backyard, and you can be assured that The Pearl will provide that information to the community.
LISTNUM 1 \l 1364 COMMISSIONER MENZIES: Thank you.
LISTNUM 1 \l 1365 In terms of your newscasts, are they shaped in any way, in terms of ‑‑ I understand that news is news, but what you cover and what you don't cover would apply to the sort of audience you are trying to appeal to, and if I got it correctly, your median target is a 39 to 40‑year‑old male.
LISTNUM 1 \l 1366 Is that right?
LISTNUM 1 \l 1367 MR. COOPER: In music listening, yes.
LISTNUM 1 \l 1368 COMMISSIONER MENZIES: In music listening.
LISTNUM 1 \l 1369 MR. COOPER: I believe, in news, it would be broader than that.
LISTNUM 1 \l 1370 Wendy?
LISTNUM 1 \l 1371 MS GRAY: Obviously, as you said, news is news, and we can't ignore what is going on around the world and in our own backyard.
LISTNUM 1 \l 1372 But, as far as some of our less local news stories, what we would focus on would be health matters for that particular demographic, and business matters for that particular demographic, as well.
LISTNUM 1 \l 1373 So we would work those sorts of stories in and around our newscasts, with as much local content as we could. If there was a major health story, we would go to a local physician and get his take on it.
LISTNUM 1 \l 1374 COMMISSIONER MENZIES: You identified your presence as being a new editorial voice. How would you want people to describe your editorial voice in the marketplace?
LISTNUM 1 \l 1375 MR. COOPER: Fresh and new, and someone that may take a different look at the community and what is going on in the community than what they have been served over the last 30 years.
LISTNUM 1 \l 1376 MS COOPER: If I could respond to that, as well; being in news myself, I know that they send all of us reporters. I meet them all the time. We go to cover the same event.
LISTNUM 1 \l 1377 There are never two stories written exactly the same. It all depends on your reporter that you have at the scene.
LISTNUM 1 \l 1378 So, of course, our newscasts would be totally different from Bayshore's newscast, just because it would be someone else telling that story.
LISTNUM 1 \l 1379 COMMISSIONER MENZIES: Thank you.
LISTNUM 1 \l 1380 THE CHAIRPERSON: Legal counsel?
LISTNUM 1 \l 1381 MS SMITH: Thank you.
LISTNUM 1 \l 1382 I have one question. I would like to confirm that you are prepared to file with the Commission the breakdown of your projected market tuning by the end of the day December 17th, which is next Monday.
LISTNUM 1 \l 1383 MR. COOPER: Not a problem.
LISTNUM 1 \l 1384 MS SMITH: Thank you very much.
LISTNUM 1 \l 1385 THE CHAIRPERSON: You now have your two minutes to wrap up your application and tell us why your proposal is the best one for Owen Sound.
LISTNUM 1 \l 1386 MR. COOPER: Madam Chair, radio needs new ownership. It needs vibrant and different points of view. It needs investment, and it needs people that want to be in radio, and Danny and I are two of those people.
LISTNUM 1 \l 1387 Owen Sound needs a new editorial voice, as we previously spoke of. A local voice for rock radio listeners currently is not being served by the local operator. We can deliver that demand.
LISTNUM 1 \l 1388 We are committed to CTD, to the levels we have already set, and others.
LISTNUM 1 \l 1389 The local news and information, as Lynda alluded to, and Wendy talked about, is from a different perspective than what they have been receiving for many, many years.
LISTNUM 1 \l 1390 We are also committed to Aboriginal programming, and I think that serving the Cape Crocker and Saugeen Shores First Nations communities with the experience that Haliburton Radio Broadcasting Group brings us is a great benefit to those communities. They have people in the marketplace dealing with the current issues they have.
LISTNUM 1 \l 1391 We are providing 12 new jobs for local broadcasters, and we think that is exciting for the community, as well.
LISTNUM 1 \l 1392 We are repatriating advertising dollars to the local market. We did this with Kincardine, and we can do it again with Owen Sound.
LISTNUM 1 \l 1393 We think we have given you a realistic, solid business plan, which would have little or no impact on the existing radio operator.
LISTNUM 1 \l 1394 We are also surrounded by Bayshore, which has Goderich now, and they have Port Elgin and Owen Sound; Blackburn, that has Wingham, and other markets that are completely surrounding us. We need to create efficiencies and synergies and strengthen our radio group, so that someday we will be a multi‑cluster owner.
LISTNUM 1 \l 1395 Thank you.
LISTNUM 1 \l 1396 THE CHAIRPERSON: Thank you very much for your participation.
LISTNUM 1 \l 1397 We will now take a 15‑minute break, in the hopes of resolving this microphone issue. Thank you.
‑‑‑ Upon recessing at 1035 / Suspension à 1035
‑‑‑ Upon resuming at 1050 / Reprise à 1050
LISTNUM 1 \l 1398 THE SECRETARY: We are ready to begin.
LISTNUM 1 \l 1399 We will now proceed with Item 2, which is an application by Blackburn Radio Inc. for a licence to operate an English‑language FM Commercial Radio Programming Undertaking in Owen Sound.
LISTNUM 1 \l 1400 The new station would operate on Frequency 92.3, Channel 222B, with an average effective radiated power of 14,635 watts, maximum effective radiated power of 29,000 watts, antenna height of 195.1 metres.
LISTNUM 1 \l 1401 Appearing for the Applicant is Mr. Richard Costley White.
LISTNUM 1 \l 1402 Please introduce your colleagues. You will then have 20 minutes for your presentation.
PRESENTATION / PRÉSENTATION
LISTNUM 1 \l 1403 MR. COSTLEY WHITE: Thank you.
LISTNUM 1 \l 1404 Good morning, Madam Chair, Members of the Commission, CRTC Staff, members of our industry, and all in attendance today.
LISTNUM 1 \l 1405 My name is Richard Costley White, owner, Chairman and Chief Executive Officer of Blackburn Radio Incorporated.
LISTNUM 1 \l 1406 Before we start our presentation‑in‑chief, I would like to present the colleagues who are with me here today.
LISTNUM 1 \l 1407 To my right is John Weese, the General Manager for the CKNX stations, who will quarterback the question period.
LISTNUM 1 \l 1408 John has been in media for 27 years, and with Blackburn since 1990.
LISTNUM 1 \l 1409 To his right is Gina Lorentz, the Program Director for 101.7 FM, The One, our Wingham‑based AC station.
LISTNUM 1 \l 1410 Gina has over 20 years in radio, with a background in both news and programming.
LISTNUM 1 \l 1411 Before coming to us, Gina was the news director for 570 News in Kitchener.
LISTNUM 1 \l 1412 To Gina's right is Ray Baynton, the veteran of our team, who has been with our Wingham stations for the past 35 years. For 32 of those years he has been our News Director.
LISTNUM 1 \l 1413 To Ray's right is Andrew Campbell, our Agricultural Director and Farm Reporter.
LISTNUM 1 \l 1414 Andrew has been with us for three years.
LISTNUM 1 \l 1415 We have operated an Agricultural Department for over 50 years to the extended Huron, Grey, Wellington and Bruce counties, probably one of the few stations in Canada to do so.
LISTNUM 1 \l 1416 Finally, beside Andrew is Joan Moore, Community Marketing Representative, from whom you will hear more later.
LISTNUM 1 \l 1417 In the second row, to your left, is Nancy Burton, Accounting and Administration Supervisor, who has 25 years with Blackburn.
LISTNUM 1 \l 1418 Next to her is Mark Kassof, who conducted the research that led us to our choice of format.
LISTNUM 1 \l 1419 Next to him is Rob Enders, our Director of Engineering for midwestern Ontario, who can address any technical issues that you may have.
LISTNUM 1 \l 1420 Rob has 20 years in the broadcasting industry, and came to us nine years ago from Q107 in Toronto.
LISTNUM 1 \l 1421 Beside him is Jason Ploegman. Jason's background is in the Computer Science field. He has been with Blackburn since 2005.
LISTNUM 1 \l 1422 In the spring of 2007, Jason moved into his current role, responsible for the development of new emerging technologies for Blackburn as they relate to broadcasting.
LISTNUM 1 \l 1423 In particular, he has been involved in our website connection to new and emerging artists in Windsor, and in our proposed website for The Sound.
LISTNUM 1 \l 1424 In our folder we have provided a copy of our remarks, the seating plan of our panel, and a number of documents to which we will be referring during our presentation and during the question period.
LISTNUM 1 \l 1425 It is with great hope that we appear before you this week with two applications. Today's presentation is for a new FM radio station, to bring our brand of community‑oriented service to Owen Sound.
LISTNUM 1 \l 1426 Later this week you will hear our application for a new FM service in Windsor.
LISTNUM 1 \l 1427 I would like to tell you a bit about our company to give you an idea of who we are.
LISTNUM 1 \l 1428 As a fifth generation Blackburn, I am proud of my family's heritage in Canadian media, beginning with the London Free Press, here in London, in 1852, and in radio in 1922.
LISTNUM 1 \l 1429 Our radio operations grew up within a well‑established newspaper publishing company, and news and local reflection is, quite simply, our culture.
LISTNUM 1 \l 1430 Blackburn's philosophy and operating realities rest upon and reflect three basic principles: service to the community; editorial independence and program quality; and autonomous, locally‑based station management.
LISTNUM 1 \l 1431 We believe that these principles align good business practice with fundamental public policy expectations. They also reflect the ethics traditionally practised by the Blackburn family in the operation of media.
LISTNUM 1 \l 1432 Today that commitment is upheld in our small group of stations in southwestern and midwestern Ontario, and I am personally firmly committed to continuing and building on this successful operating philosophy.
LISTNUM 1 \l 1433 Consumers have many choices, but radio's most relevant function continues to matter: to provide information to the community in which it broadcasts. That is why Blackburn Radio has placed such a strong emphasis on local news in our application. In a world of satellite and internet radio, local radio's advantage is that it is there every day and can be mobilized quickly in a crisis. That is why our stations have large newsrooms, with more staff than in most radio stations.
LISTNUM 1 \l 1434 In two cases we have dedicated agricultural reporters.
LISTNUM 1 \l 1435 Later, Joan Moore will talk to you about some of what we do beyond news in Wingham, and the approach we want to bring to Owen Sound.
LISTNUM 1 \l 1436 On the strength of this philosophy, Blackburn Radio has forged a reputation of trusted service and quality broadcasting.
LISTNUM 1 \l 1437 Our proposed investment in news and information, Canadian Content Development, local programming and capital investment underscores our sincere desire to establish a Blackburn‑brand radio service for the Owen Sound market.
LISTNUM 1 \l 1438 And now to present our specific sounds for the Owen Sound market, I am pleased to introduce John Weese.
LISTNUM 1 \l 1439 MR. WEESE: Thank you, Richard.
LISTNUM 1 \l 1440 Good morning, Madam Chair, Commissioners and CRTC Staff.
LISTNUM 1 \l 1441 CKNX Radio has been providing service to midwestern Ontario for 81 years from our facilities in Wingham, starting with our AM station, and then adding an FM station in 1977, and another in 2005.
LISTNUM 1 \l 1442 Wingham is a small town of approximately 3,200 people, and it is about dead centre of our broadcasting region.
LISTNUM 1 \l 1443 Our Wingham station's role in the lives of citizens within midwestern Ontario, who form dozens of communities that comprise our service area, is critical.
LISTNUM 1 \l 1444 CKNX Radio has a long and proud legacy of comprehensive and dedicated service. It is in our DNA. Today, CKNX Radio provides this kind of coverage with eight full‑time reporters, as well as seven correspondents.
LISTNUM 1 \l 1445 We employ community marketing experts in addition to a full complement of traditional radio station staff. And you will find similar levels and roles in the Blackburn stations in Leamington, Sarnia and Chatham.
LISTNUM 1 \l 1446 Owen Sound is a market that we believe is ready for a new radio service, a new local choice in musical format, news and information, and a competitor for local advertising.
LISTNUM 1 \l 1447 We have provided you maps from BBM showing the Owen Sound BBM Central, and we have shown the contours that our proposed station imposed as well.
LISTNUM 1 \l 1448 We estimate that the market will serve just a little over 100,000 residents.
LISTNUM 1 \l 1449 The market of Belleville, Ontario has a similar population, and it is served by five commercial stations and two ownership groups. In Owen Sound there are three stations, with a single ownership group. If we look at the most important predicator of radio revenues, retail sales, they skew 73 percent higher than the national average in the census agglomeration of Owen Sound, and 55 percent higher in the city, according to Financial Post Markets.
LISTNUM 1 \l 1450 Yet, Owen Sound only has three radio formats locally: a news/talk AM station that plays oldies, a hot AC FM, and a country FM. No wonder there is significant out‑of‑town tuning, or out‑of‑market tuning. According to the most recent BBM ratings, released last Monday, out‑of‑market stations receive 56.3 percent of hours tuned by persons 12‑plus.
LISTNUM 1 \l 1451 We knew that the market could support a new station, and our experience in building successful community‑based radio told us that some kind of rock‑based format would be the right choice. However, we have learned over the years to verify the actual needs of the market with research, so we commissioned Mark Kassof to conduct research on the market.
LISTNUM 1 \l 1452 Mark.
LISTNUM 1 \l 1453 MR. KASSOF: Thanks, John.
LISTNUM 1 \l 1454 Good morning, Commissioners.
LISTNUM 1 \l 1455 We completed 300 telephone interviews with 18 to 64‑year‑old radio listeners drawn throughout the coverage area. First we studied listening behaviour. Then we probed listeners' interests in nine different music formats, and whether they could identify a present station as delivering that format.
LISTNUM 1 \l 1456 A key statistic is what I call "positive interest", the percent who rate a format 4 or 5 on a scale, where 1 means they would never listen to that format and 5 means they would listen to it all the time they listen to radio. In Owen Sound we found the greatest positive interest in various forms of rock music: classic rock, mainstream rock, and classic hits.
LISTNUM 1 \l 1457 But the crucial calculation is what I call the "percent of format void". This is the percentage of the entire audience that both has a positive interest in a format and cannot associate any station with the format.
LISTNUM 1 \l 1458 The percentage of format void analysis revealed the biggest voids to be older rock‑based music, sixties and seventies oldies at 13 percent, and classic hits at 12 percent.
LISTNUM 1 \l 1459 This led me to recommend a broad‑based classics format, mainly seventies and eighties, but including some mid to late‑sixties gold.
LISTNUM 1 \l 1460 Here to explain how the format will be put into practice is Gina Lorentz.
LISTNUM 1 \l 1461 MS LORENTZ: Thanks, Mark.
LISTNUM 1 \l 1462 Good morning, Commissioners.
LISTNUM 1 \l 1463 We took the format conclusion that Mark provided us and started building an exciting station that we have christened "The Sound", 92.3 FM.
LISTNUM 1 \l 1464 We believe The Sound will be an illuminating source of tremendous entertainment, a trusted voice for news and information, and a generous and involved community citizen and partner.
LISTNUM 1 \l 1465 The Sound will provide a rock‑based classic hits format, uptempo, bright, instantly recognizable, and the very best classic hits from the seventies, eighties and early nineties, with a bit of spice from the sixties and today.
LISTNUM 1 \l 1466 The core of this format will be rock hits from artists like Neil Young, Tom Cochrane and Red Rider, BTO, Bryan Adams, Mellenkamp, Springsteen and Elton John.
LISTNUM 1 \l 1467 We will not play the more middle‑of‑the‑road songs from these artists, nor the hardest rock. Therefore, the sound will reach a broad audience of men and women age 35 to 54, with slightly more men than women.
LISTNUM 1 \l 1468 We will keep the station engaging to our listeners with a range of special programming: lunchtime features that will put members of the community from the hockey team, the Owen Sound Attack, to the mayor, to listeners with great ideas to be the music director for an hour.
LISTNUM 1 \l 1469 "The Sound Survivor" will be a feature that will pit two classic hit songs against each other, with the audience voting who moves on to the next week.
LISTNUM 1 \l 1470 "I Can't Believe I Heard the Whole Thing" will provide a whole side of a classic rock album.
LISTNUM 1 \l 1471 "The Weekend House Party", on Friday and Saturday nights, will provide party music from a variety of classic hit genres.
LISTNUM 1 \l 1472 This kind of format usually does not play a lot of contemporary music. However, we recognize the importance the Commission has given to supporting emerging artists, and we have developed a number of responses to play our part.
LISTNUM 1 \l 1473 We have committed to 40 percent Canadian content, both during the broadcast week and from 6 a.m. to 6 p.m. No other applicant for this market has done so.
LISTNUM 1 \l 1474 We will do this by playing compatible contemporary rock music, as well as the great Canadian artists from the past that I mentioned earlier.
LISTNUM 1 \l 1475 We propose a regular feature entitled "Sound Sessions". This one‑hour weekly program will focus on new and emerging artists, with a special effort to promote local and regional artists.
LISTNUM 1 \l 1476 As we do in Windsor, we will have an "Inde Artist" section on our website that will expose and promote local and regional emerging artists. Jason Ploegman has spearheaded this initiative, and will be pleased to explain it further during the question period, if you wish.
LISTNUM 1 \l 1477 We have budgeted $3.9 million over the course of the seven‑year term of licence for programming expenses. That is almost twice the amount of the next closest applicant.
LISTNUM 1 \l 1478 This is primarily for two reasons. We will hire more people, particularly in news, and The Sound will recruit and retain seasoned announcers, men and women who can best connect with our target audience.
LISTNUM 1 \l 1479 Here to tell you about our plans for news is Ray Baynton.
LISTNUM 1 \l 1480 MR. BAYNTON: Thank you, Gina, and good morning, Commissioners.
LISTNUM 1 \l 1481 The Sound will offer full service, comprehensive news coverage of the Owen Sound area with four fulltime news reporters including an onsite veteran news director and also four field correspondents that includes a dedicated First Nations reporter.
LISTNUM 1 \l 1482 Given the wide range of territory we serve from our Wingham stations with no real urban core but we still need to be the local station to many communities, we developed the field correspondent idea to ensure that we have knowledgeable local reporters to cover their communities.
LISTNUM 1 \l 1483 While we won't have the same territorial challenge in the Owen Sound area, we believe that having correspondents in Meaford, Thornbury, Saugeen Shores and in Wiarton to cover the South Bruce Peninsula will provide the information that our listeners need.
LISTNUM 1 \l 1484 For fulltime news people it means that we can provide solid news coverage throughout the week and on weekends. It also means that our reporters can develop beats covering areas such as health and environment, arts and culture and others.
LISTNUM 1 \l 1485 Our spoken word commitment exceeds 13 hours weekly. Of that eight hours and 18 minutes will be dedicated to news reports and that includes agricultural reporting.
LISTNUM 1 \l 1486 Our connection to the community will go well beyond our news involvement. Speaking in more detail on that here is Joan Moore.
LISTNUM 1 \l 1487 MS MOORE: Thank you, Ray, and good morning, Commissioners.
LISTNUM 1 \l 1488 I am a community marketing representative for Blackburn's Wingham base stations.
LISTNUM 1 \l 1489 Community marketing exists to super serve not‑for‑profit organizations and is a great way of building awareness to your organization and event. We offer this stakeholder group modest affordable and effective marketing plans that include a premium advertising schedule, on air promotion of their events, live and recorded interviews and a web‑based platform that can be accessed by the public as well as our announcers. In addition, we can provide MCs and personalities that will perform live reports from your event.
LISTNUM 1 \l 1490 I was hired in 2004 as the first dedicated marketing representative for this new initiative in the Wingham's stations. We now dedicate two community marketing representatives who have been trained to specifically specialize in serving the needs of our not‑for‑profit groups. This has proven to be very effective for non‑for‑profit organizations of all dimensions and purpose.
LISTNUM 1 \l 1491 Our clients include county health units, the United Way and their umbrella agencies, the Canadian Cancer Society, agricultural affairs, fundraising concerts and a range of other like organizations.
LISTNUM 1 \l 1492 We measure our success on the success of the event. A few examples would be the Canadian Cancer Society's annual Relay for Life. Not only do we help promote and sponsor the relays in several communities in our area, we also volunteer our hours and provide a team in five of the overnight events. In 2007 we helped raise well over half a million dollars for cancer research.
LISTNUM 1 \l 1493 We also were instrumental in the phenomenal success of the Town of Minto Canadian Redneck Games, which is an annual festival that began in 2006. We assisted with their marketing plan, provided MCs and personalities. They were rated the number one festival in Ontario for July 2006 by CBC Radio. In addition, they won two festival and events Ontario Achievement Awards for the best new festival and the best community involvement.
LISTNUM 1 \l 1494 Probably our largest success in this area is our annual Healthcare Heroes Radiothon for the area's hospitals. The folks in the audience in the black t‑shirts are here to show their support for us. They represent the 14 hospitals in our area that have benefited from the millions of dollars we have helped raise for them. This year we raised $900,000 in a single day, bringing us to a total of $3.5 million in five years, a record we believe is unmatched by any other Canadian radio station.
LISTNUM 1 \l 1495 The Sound will bring the same attention to the community in Owen Sound, including community marketing.
LISTNUM 1 \l 1496 We will also reach out to the First Nations communities and extended market at Cape Croker and Saugeen. We will do this in a number of ways both on air and off the microphone.
LISTNUM 1 \l 1497 We will hire a dedicated correspondent to report on the events in the aboriginal community.
LISTNUM 1 \l 1498 A Sunday evening program "Sound Circles" will focus on the music and achievements of the aboriginal community.
LISTNUM 1 \l 1499 We will provide support to the Cape Croker Annual Traditional Pow Wow with $5,000 for music and dance.
LISTNUM 1 \l 1500 And we will hire an aboriginal broadcasting student as a station intern.
LISTNUM 1 \l 1501 Now to speak to Canadian content development initiatives, and to sum up, here is John Weese.
LISTNUM 1 \l 1502 MR. WEESE: Thanks, Joan.
LISTNUM 1 \l 1503 In addition to our annual contributions to FACTOR which will amount to a little over $100,000, $102,000 over the licence term, we propose the four local initiatives.
LISTNUM 1 \l 1504 Stars of the Sound will fund summer concerts by local and regional artists in the downtown area of Owen Sound at venues at a cost of $17,400 each year. We will record the concerts and make them available to the artists to act as promotional tools as well as providing space on our website for them to promote their activities.
LISTNUM 1 \l 1505 The Georgian Bay Folk Society will receive $20,000 annually for a new stage and that will feature local artists, and for a series of musician workshops.
LISTNUM 1 \l 1506 The Kiwanis will receive $12,000 annually for scholarship awards tied to the Kiwanis Festival and to host notable Canadian artists. And as Joan has already noted, our annual commitment to the Cape Croker Pow Wow and the funding of artists.
LISTNUM 1 \l 1507 Blackburn and CKNX Radio have a proud history of service to a wide range of communities in mid‑western Ontario. We have always believed that the key to our business success is community service and our attention to strong news departments, community development and to research has meant that we have done well by doing good.
LISTNUM 1 \l 1508 We believe that we have provided you with an application that best meets the evaluation criteria. Owen Sound can easily absorb a new rock‑based classic hits station. We will provide viable competition to the only local broadcaster which has three stations in Owen Sound and a number of regional stations. At the same time, The Sound will take most of its audience out of the out‑of‑market stations, particularly our Wingham‑based rock station.
LISTNUM 1 \l 1509 Blackburn is the only applicant in this market who conducted format research that tested a wide variety of formats in order to seek out the largest unfulfilled void. The Sound will serve a large group of men and women, age 35 to 54, who currently tune elsewhere for their favourite music.
LISTNUM 1 \l 1510 We propose the strongest commitments to our local reflection of any applicant for Owen Sound. Our projected expenditures on programming are almost double the next nearest applicant at $3.9 million over seven years.
LISTNUM 1 \l 1511 We propose a news department of four fulltime staff, supplemented by four regional correspondents and will broadcast over eight hours of news each week and 13 hours of spoken word.
LISTNUM 1 \l 1512 We will program 40 percent of Canadian content during the broadcast week and between 6:00 a.m. and 6:00 p.m. This will be further supported by a number of special programs focusing on local and regional artists.
LISTNUM 1 \l 1513 We will donate almost a half a million dollars over the term of the licence to Canadian content development.
LISTNUM 1 \l 1514 We have a good team of dedicated professionals with experience in providing quality radio and if you grant this licence to Blackburn you will not be disappointed.
LISTNUM 1 \l 1515 We would like to leave you with this sample of The Sound.
‑‑‑ Musical interlude / Intermède musical
LISTNUM 1 \l 1516 MR. WEESE: Thank you. And thank you for your attention this morning. We would welcome your questions.
LISTNUM 1 \l 1517 THE CHAIRPERSON: Thank you, Mr. Weese and Mr. Costley White, and your colleagues.
LISTNUM 1 \l 1518 I will ask Commissioner del Val to begin the questioning.
LISTNUM 1 \l 1519 COMMISSIONER del VAL: Thank you, panel.
LISTNUM 1 \l 1520 As I read your application I think one of the key elements of your particular application is the repatriation from your own station, The Bull. So I would just like to get a little bit of background information about that before we go into the specifics of the application.
LISTNUM 1 \l 1521 Now, you heard this morning from The Pearl that the latest figures shows a 24 percent, 12‑plus tuning. I am not sure if I got that correct. Can you comment on that, please?
LISTNUM 1 \l 1522 MR. WEESE: Yes, I think where they may have gotten their information as they were preparing prior to the most recent release ‑‑ the most recent release of BBM which all audience 12‑plus indicates that The Bull, the Wingham rock‑based station, took a share of 13.5 percent.
LISTNUM 1 \l 1523 COMMISSIONER del VAL: Okay, 13.5 from the Owen Sound market.
LISTNUM 1 \l 1524 MR. WEESE: That's correct.
LISTNUM 1 \l 1525 COMMISSIONER del VAL: Now, what about ‑‑ but currently The Bull does derive some revenue from the Owen Sound market?
LISTNUM 1 \l 1526 MR. WEESE: Most certainly.
LISTNUM 1 \l 1527 COMMISSIONER del VAL: Okay. And could you tell us what percentage of your revenues would be from the Owen Sound market?
LISTNUM 1 \l 1528 MR. WEESE: I think the Board should look at ‑‑ of our Wingham‑based radio stations it would represent ‑‑ what we take out of Owen Sound would represent around 10 percent of the total revenues of our Wingham‑based radio stations.
LISTNUM 1 \l 1529 COMMISSIONER del VAL: Thank you.
LISTNUM 1 \l 1530 So Mr. Kassof, I was quite interested in your research and, you know, basically I want to explore a bit more about the basis of the optimism that the repatriation will be from Bull rather than from Bayshore's three stations.
LISTNUM 1 \l 1531 So I was looking at your study and on the applicant's supplementary brief, page 21, and you are talking about the core or the P1 listeners to classic hits format listening to less radio than average.
LISTNUM 1 \l 1532 MR. KASSOF: That's correct.
LISTNUM 1 \l 1533 COMMISSIONER del VAL: Yes, and then from your deficiency response and all, I gather that ‑‑ is it from a lack of station association that there ‑‑ it simply isn't around, or is there something about the demographics of the group that you are targeting that that group listens to radio less?
LISTNUM 1 \l 1534 MR. KASSOF: Well, I think if we look at what they like, which is essentially older music, seventies, eighties, a touch of sixties, there is really no station available on the market, even The Bull that really delivers that mix of music.
LISTNUM 1 \l 1535 You know, I strongly suspect based on the research that they think The Bull would be a little bit too hard rocking for them. I think that they would think that The Bull plays too much current, new cutting‑edge rock for them.
LISTNUM 1 \l 1536 So really if they don't like country where are they going to go? So there is really no station that's really serving them. So hopefully we would see an increase in their time spent listening. But right now if there is no station that really hits your needs you are going to spend less time with radio.
LISTNUM 1 \l 1537 COMMISSIONER del VAL: So you are comfortable concluding that, given all of the factors, that is the key reason for them listening to radio less, that there is no station that really serves specifically their needs?
LISTNUM 1 \l 1538 MR. KASSOF: Yes, because if we look at just their demographic group, strictly as a demographic no matter what they are interested in, they are not listening to radio less than average. But these particular people who want this kind of radio station are.
LISTNUM 1 \l 1539 So yes, I think it's a fair assumption that they are really not getting what they want.
LISTNUM 1 \l 1540 COMMISSIONER del VAL: Now, and also you heard from The Pearl today in their opening statements and their questions with Madam Chair on what they ‑‑ their plans on being very local in order to cater to the Owen Sound market.
LISTNUM 1 \l 1541 Now, what can you do that is more local than local ownership? Like how would you set yourself apart from, say, The Pearl's?
LISTNUM 1 \l 1542 MR. WEESE: Yes, I would like to take that.
LISTNUM 1 \l 1543 There is a couple of ways when we talk about programming and specifically we can talk about our news content. I would like to ask news director Ray Baynton who could perhaps talk a little bit about the local nature of our intended news coverage.
LISTNUM 1 \l 1544 Ray?
LISTNUM 1 \l 1545 MR. BAYNTON: Thank you, John.
LISTNUM 1 \l 1546 The amount of local news that we are talking about is over eight hours and I think that you will find that significantly larger than what the competitors are offering. That's going to be largely focused on the area and that's because we are going to have four fulltime people there. We are going to have correspondents who are going to be out and covering the region, and we are going to have the airtime to be as comprehensive and detailed as we need to be for the market. And that's above and beyond additional surveillance material that will be outside of that as well as some of the community service initiatives that we are doing as well.
LISTNUM 1 \l 1547 COMMISSIONER del VAL: So do you think you could be more local than a local owner?
LISTNUM 1 \l 1548 MR. BAYNTON: I think you have to determine what you mean by a local owner because to me it's not a matter of ‑‑ if you will excuse this, Richard ‑‑ it's not a matter of who is wearing the suit in the front office. It's a matter of who is doing what on the air, and the people on the air will be local. They will be people who live in the market. They are going to be the people who play in the market and do everything else in the market. They know the market. So what they put on the air is what's going to be local.
LISTNUM 1 \l 1549 And all of our stations, all of our Blackburn operations are locally managed. So that's where the local is going to come from.
LISTNUM 1 \l 1550 COMMISSIONER del VAL: Thank you.
LISTNUM 1 \l 1551 Now, when I was looking at the stats for this market and I can see that Bayshore and Blackburn have been competing neck and neck for years and very successfully. And right now you are number two. So why is that not enough for you? Why do you actually want to be in the Owen Sound market and serving the market from an Owen Sound station?
LISTNUM 1 \l 1552 MR. WEESE: I would like to, in a second, have Mark Kassof ‑‑ might talk about ‑‑ I will ask him to speak about some people in that population that are not being served presently.
LISTNUM 1 \l 1553 We believe that we can bring an exciting new format that's not there now and that we can serve listeners and make the listening experience fuller for the market of Owen Sound. And our community‑based initiatives we believe will enrich the quality of life of people in Owen Sound, and we believe we are quite capable of doing that.
LISTNUM 1 \l 1554 And to talk about the other served (1112‑5:40) needs I would like to ask Mark Kassof to maybe talk a little more on that.
LISTNUM 1 \l 1555 MR. KASSOF: Sure. I mean we looked at this percent of format void which is essentially listeners who want something and aren't getting it, and the percent of format void for classic hits was 12 percent; for sixties, seventies, oldies was 13 percent. Those were the two highest of the nine formats we tested.
LISTNUM 1 \l 1556 So that's a significant number of listeners in this market that aren't getting what they want.
LISTNUM 1 \l 1557 MR. WEESE: Also, to add to that, Gina Lorentz has some information too that might be helpful.
LISTNUM 1 \l 1558 MS LORENTZ: When we looked at BBM out of market tuning in the target demo that we are proposing, 35 to 54, 30 percent of women are listening to stations outside of the Owen Sound market and over 60 percent of men are tuning out of market. So that's why we are proposing a broad‑based classic hits format that appeals to both men and women.
LISTNUM 1 \l 1559 COMMISSIONER del VAL: On your revenue projections they are quite optimistic. What is the basis of your optimism?
LISTNUM 1 \l 1560 MR. WEESE: Well, basically we took a look at ‑‑ first of all, we think we are pretty good operators. However, studying the market we discovered in our research from Financial Post markets, in addition to looking at Stats Canada information on retail sales for some of the areas that weren't included in the FP markets that retail sales are very, very healthy in that particular region and retail sales themselves are higher per capita in the city and in the immediate region than they are in other parts of the country.
LISTNUM 1 \l 1561 Our calculations indicate to us that there is an un‑mined revenue source, radio revenue source that exceeds $900,000 in the market. We believe that it would be foolish for us to believe that we are going to take all of that within the first one, two years of that. However, we do show rapid growth throughout the period of seven years and as the markets grow we certainly intend to grow as well, along with our inventory.
LISTNUM 1 \l 1562 COMMISSIONER del VAL: That just reminded me that in your supplementary brief you did ‑‑ oh, here ‑‑ that you are anticipating generating 80 percent of your total year to revenues from sources other than existing local stations. So where would the ‑‑ where do you see those sources?
LISTNUM 1 \l 1563 MR. WEESE: Well, certainly from the out‑of‑market radio stations and, unfortunately for us, but we would sort of chew off our arm a bit as far as our revenues from The Bull radio station because we would certainly take market share from them and revenue does follow that. So there are ‑‑ a good healthy part ‑‑ I believe we have listed 25 percent ‑‑ will come from out‑of‑market stations and that will be predominantly us.
LISTNUM 1 \l 1564 We also listed new business as well. I believe we have that to the tune of 10 percent. And that new business is going to come we think from three different areas up in our area with the Bruce nuclear plant and Ontario Power Generation and wind farming is bringing on a new stream of advertising because they want to be good corporate citizens and partner up in that area. We believe that's a good ‑‑ great revenue source.
LISTNUM 1 \l 1565 Community marketing that Joan talked about earlier provides new revenue opportunities as well and also I think we have listed in there as expanding business. With a new radio station player you can understand that advertisers will be using the traditional stations they have always used but they want to reach the entire market, recognizing there is a new player with a new audience. And so they would want to reach the entire market. So they will expand their budgets as well, and that will represent a good percentage.
LISTNUM 1 \l 1566 COMMISSIONER del VAL: So have you actually pursued any of these new sources that you have referred to, to find out their level of commitment?
LISTNUM 1 \l 1567 MR. WEESE: Our experience today, and with our Wingham‑based stations those groups are certainly part of our market. And we are in constant negotiations talking with the energy groups to expand their budgets. We do get a bit of money from them but it is growing as those companies are growing along the coast as well.
LISTNUM 1 \l 1568 And community marketing does represent some modest dollars but good dollars for us as well.
LISTNUM 1 \l 1569 COMMISSIONER del VAL: And I take it ‑‑ is there a significant proportion of these new businesses in Owen Sound that are currently already advertising with you in your other markets?
LISTNUM 1 \l 1570 MR. WEESE: There will be some duplication of advertisers and we would like to think that we would be able to retain their ad dollars to some degree. But we do realize that the day that we put out our shingle for the new station that they are going to be converting a lot of those dollars over to the new station.
LISTNUM 1 \l 1571 COMMISSIONER del VAL: Thank you.
LISTNUM 1 \l 1572 Now, I think your projection also ‑‑ now, Bayshore's CIXK currently has an 11 percent share. Now, what is your estimate of the tuning that you will take away from Bayshore, that station, and the other two of Bayshore's stations?
LISTNUM 1 \l 1573 MR. WEESE: Yes, in total of their three stations they have in the market we believe that we are only going to take five point shares from them, which is around 20 percent or so.
LISTNUM 1 \l 1574 The biggest hit that we are going to take is from the out‑of‑market rock station from Wingham and that's where we are going to get the majority of our shares. So we would really have minimal impact on the three stations that Bayshore has in that market.
LISTNUM 1 \l 1575 COMMISSIONER del VAL: Yes, and I believe that Mr. Kassof has sort of explained in your research and why ‑‑ how you calculated the format you chose would have the smallest impact on the incumbents.
LISTNUM 1 \l 1576 MR. WEESE: Yes, and we would be most interested in sharing that. Would you like to hear from Mr. Kassof on that point?
LISTNUM 1 \l 1577 COMMISSIONER del VAL: Yes, please. Yes, please.
LISTNUM 1 \l 1578 MR. WEESE: Mark?
LISTNUM 1 \l 1579 MR. KASSOF: In terms of the ratings projections and how we do that? Sure.
LISTNUM 1 \l 1580 Well, you know one of the crucial questions in one of these research projects is which station do you listen to most, which corresponds most closely with audience shares as a service such as BBM would reflect?
LISTNUM 1 \l 1581 So we ask that. We ask that right now, which station are you listening to most? And then, in terms of doing a projection, the key is to figure out which station are they going to listen to most after this new station launches.
LISTNUM 1 \l 1582 So what we do is we look at people, in this case, who had a positive interest in the kind of music this station will play, who weren't passionate about any of the other kinds of formats that we tested. So in other words, if they liked classic hits, but they were big country fans, we are not calling that person a potential P1 listener. That person is not going to say that they listen to this station most even though they may sample it.
LISTNUM 1 \l 1583 So once we have identified respondents who will be new P1 listeners for this new station, we move them from whatever station they were at to the new station and then recalculate share. And, by doing, that we projected a 16 per cent share for the new station. And, again, most of that would be definitely be coming from The Bull.
LISTNUM 1 \l 1584 COMMISSIONER del VAL: Thank you.
LISTNUM 1 \l 1585 And going to your formats, what do you see would be the key differences between your format and the formats of the three incumbent stations?
LISTNUM 1 \l 1586 MR. WEESE: Okay, very good. Quite a bit of difference, actually. And I would like to ask Gina Lorentz if she wouldn't mind talking about some of the differences in the formats.
LISTNUM 1 \l 1587 MS LORENTZ: Thank you. The three existing formats owned by Bayshore right now in Owen Sound's central market, there is an FM country station which is night and day compared to the classic hits format that we are proposing.
LISTNUM 1 \l 1588 FM Hot AC station, it is not a rock‑based format, its focus is based on current music and the best hits of the 1990s and this decade. Only similarity, there is a noon‑hour lunch program on Mix 106 which is a Hot AC that does a retro show, so there is some 1980s music during that hour.
LISTNUM 1 \l 1589 The AM station CFOS, it is primarily a news information sports station with some oldies. There are various talk shows through the week and on the weekends, some sports programming. And the music that is played is predominantly 1950s, 1960s and early 1970s and has a lighter touch than the classic hits rock‑based format that we are proposing.
LISTNUM 1 \l 1590 Our classic hits would focus on 1970s, 1980s, some early 1990s harder edge. Additionally, our application would adhere to the non‑hit regulation.
LISTNUM 1 \l 1591 COMMISSIONER del VAL: What about the difference between your format and those proposed by the other applicants?
LISTNUM 1 \l 1592 MR. WEESE: Gina.
LISTNUM 1 \l 1593 MS LORENTZ: Thank you, I can pick‑up on that as well.
LISTNUM 1 \l 1594 As has been discussed, there is currently no rock‑based format in Owen Sound. Our Blackburn station, The Bull, does get a decent share and there are two proposals before you for a mainstream classic rock hybrid application.
LISTNUM 1 \l 1595 There are some commonalities between a classic hits and rock station. Shared artists could include; Aerosmith, Rolling Stones, Journey, Pink Floyd, Foreigner. There are also artists you would not hear on a rock format that would appear on a classic hits format; Phil Collins, Chicago, Hall & Oates, Pat Benetar, Rod Stewart and early Elton John.
LISTNUM 1 \l 1596 Also, songs on The Bull are on the other competing applicants' proposing rock formats that you would not hear on a classic hits station and that would include; Black Sabbath, Ozzy Osborne, Jimi Hendrix and no new rock like Foo Fighters, Velvet Revolver or White Stripes.
LISTNUM 1 \l 1597 COMMISSIONER del VAL: And I think that you did touch on ‑‑ I am sorry, you had something to add?
LISTNUM 1 \l 1598 MR. WEESE: Oh, no. The only thing I was going to add as well too is, in addition to the musical formats that we would play, that our news content too is considerably higher and that would set us apart from the other applicants as well.
LISTNUM 1 \l 1599 COMMISSIONER del VAL: Just going back. I believe you had given a brief explanation of the difference between The Bull and the format of the new station. And The Bull is a little bit harder rock?
LISTNUM 1 \l 1600 MS LORENTZ: Yes, its play list would include the new artists that I mentioned; Foo Fighters, Lincoln Park.
LISTNUM 1 \l 1601 COMMISSIONER del VAL: Now, what is it that Blackburn plans to do differently or better with this Owen Sound station than it does already with The Bull and in order to attract the Owen Sound audience?
LISTNUM 1 \l 1602 MR. WEESE: Right. Well, for one thing, the format would be more broad‑based in nature and we would be able to satisfy the listening habits of more women than we would be able to accomplish with The Bull as well.
LISTNUM 1 \l 1603 We also believe that this format and part of the points that we would take from The Bull is that we would be able to better satisfy some of the male listeners as well in the overall audience by playing music this is more germane to their appetite as well as giving them a lot more local news and information.
LISTNUM 1 \l 1604 The Bull has cursory news coverage of Owen Sound and areas, it pertains to our area. This station here would dedicate 75 per cent of the focus on news and events happening within Owen Sound.
LISTNUM 1 \l 1605 COMMISSIONER del VAL: Thank you.
LISTNUM 1 \l 1606 I have a few questions on your CCD contribution. You have heard Madam Chair's, this morning, question Bayshore referring to the 2006‑158 public notice and paragraph 116 talking about the basic annual CCD contribution. Do you understand that? I can summarize that for you if you need.
LISTNUM 1 \l 1607 MR. WEESE: Okay.
LISTNUM 1 \l 1608 COMMISSIONER del VAL: Okay. So stations with total revenues in a previous broadcast year of less than $625,000 will make a fixed contribution of $500. And then stations having revenues between $625,000 and $1,250,000 will make a fixed contribution of $1,000. And stations with total revenues exceeding $1,250,000 in a previous year will contribute $1,000 plus 0.5 per cent of the portion of the previous year's total revenues that exceed $1,250,000.
LISTNUM 1 \l 1609 MR. WEESE: Right.
LISTNUM 1 \l 1610 COMMISSIONER del VAL: You understand and accept that?
LISTNUM 1 \l 1611 MR. WEESE: Yes, we do, yes.
LISTNUM 1 \l 1612 COMMISSIONER del VAL: Thank you.
LISTNUM 1 \l 1613 MR. WEESE: Thank you.
LISTNUM 1 \l 1614 COMMISSIONER del VAL: Now, on page 11 of your supplementary brief, in the second complete paragraph and the last sentence, you were referring to a transitionary condition of licence when you were talking about the 60 per cent of basic amount each year to FACTOR.
LISTNUM 1 \l 1615 I am just trying to pull that up on my screen. Do you see that? On page 11 of your ‑‑ it starts with, "Blackburn proposes a substantial contribution.."
LISTNUM 1 \l 1616 MR. WEESE: Yes.
LISTNUM 1 \l 1617 COMMISSIONER del VAL: Okay.
LISTNUM 1 \l 1618 MR. WEESE: Yes, I do see that, yes.
LISTNUM 1 \l 1619 COMMISSIONER del VAL: And the last two sentences:
"..60 per cent of the basic amount each year will be contributed to FACTOR. We would accept a transitionary condition of licence." (As Read)
LISTNUM 1 \l 1620 I don't really understand what you mean by transitionary.
LISTNUM 1 \l 1621 MR. WEESE: Well, to be perfectly honest, I don't have that answer for you right now.
LISTNUM 1 \l 1622 Richard, do you have anything to add to that?
LISTNUM 1 \l 1623 MR. COSTLEY WHITE: I think it just reflects the fact that the regulations are in sort of a transitionary mode from the previous set of regs to the current set.
LISTNUM 1 \l 1624 COMMISSIONER del VAL: Thank you for the clarification. But the bottom line is that you will accept that as a condition of licence?
LISTNUM 1 \l 1625 MR. COSTLEY WHITE: Yes, we will.
LISTNUM 1 \l 1626 MR. WEESE: Absolutely.
LISTNUM 1 \l 1627 COMMISSIONER del VAL: Now, on one of your CCD initiatives on the Cape Croker Traditional Pow Wow ‑‑ now I think you are probably aware that, with the commercial radio policy that we have just referred to, in 2006, the focus is for the support of development of Canadian musical and spoken‑word talent. And so initiatives such as visual arts and dance they don't qualify anymore.
LISTNUM 1 \l 1628 So I just want to find out more about this Cape Croker Traditional Pow Wow. What is it about, how do you think it does qualify and why don't we start there?
LISTNUM 1 \l 1629 MR. WEESE: Okay, sure. We had a couple of meetings with some people in Cape Croker to try to get their perspective of what their needs are when it comes to the Pow Wow. With that event, they import a lot of people from all over Canada to come to that event and it is becoming increasingly difficult for people to come because of associated costs.
LISTNUM 1 \l 1630 We believe that we can stay within the regulations on that by making sure that that money that we forward goes directly to pay the talent that will be performing and, specifically, those who will be singing as part of their performance. So it is more than dance and visual arts and so on.
LISTNUM 1 \l 1631 COMMISSIONER del VAL: What proportion of that festival is dance and what is music? Is it easy to separate?
LISTNUM 1 \l 1632 MR. WEESE: I have to be honest with you, I have never attended a pow wow. I don't know. My understanding of it is that the have a celebration of the culture, there is a lot of dance to it, but there is also some singing that is part of that event.
LISTNUM 1 \l 1633 COMMISSIONER del VAL: And would your play be to broadcast the singing and the spoken word portion or..?
LISTNUM 1 \l 1634 MR. WEESE: That is certainly a wonderful idea and one that we would most certainly entertain. They do have their own radio station in Cape Croker and we would want to make sure that we don't interfere with whatever their programming plans are.
LISTNUM 1 \l 1635 And just on that note with the Cape Croker radio station, we have toured their facility and we have talked to their coordinator and we believe ‑‑ we didn't put it in the application, because it doesn't fall under CCD ‑‑ but just as a side note, we are very eager to help them with their very humble broadcasting centre that they have and to lend expertise as well as equipment to what they are doing.
LISTNUM 1 \l 1636 COMMISSIONER del VAL: Thank you. In the even that that portion of the initiative does not qualify as eligible CCD, what would be your proposal for that portion of the contribution?
LISTNUM 1 \l 1637 MR. WEESE: What we would do if that does not qualify? We would make sure that the Cape Croker Pow Wow people do receive the money anyway and that amount of money would be added in addition and would go to FACTOR.
LISTNUM 1 \l 1638 COMMISSIONER del VAL: Okay, great, thank you.
LISTNUM 1 \l 1639 I don't have any questions on specifics of your programming. You have quite a detailed program on your spoken word and all. Now, there are no changes that you anticipate from the time you filed the application and today on your spoken word and your local programming plans, are there?
LISTNUM 1 \l 1640 MR. WEESE: No, there is no changes at all.
LISTNUM 1 \l 1641 COMMISSIONER del VAL: Okay. I have now one last question for Mr. Enders. I took a look at the intervention from Bayshore and part of the intervention has to do with the technical aspects of Blackburn's application. And mainly, the portion, what you have applied for, will not be sufficient to cover the areas that you want to cover and, therefore, we would be looking immediately at another application for us for changes.
LISTNUM 1 \l 1642 I was interested in Mr. Enders' response as to give us some assurance that the frequencies and the technical parameters that the applicant has put forward is sufficient to support their application as it stands.
LISTNUM 1 \l 1643 MR. ENDERS: Sure, I can answer that.
LISTNUM 1 \l 1644 When we started the preparation for this application our consultants were asked to find the best channel for us to use, and Channel 222, 92.3 was the one chosen. We have, in our application, maximized that channel to its full capacity and that is what our business plan is built upon. So there is no intention to come back and ask for repeaters or other methods to expand the coverage.
LISTNUM 1 \l 1645 COMMISSIONER del VAL: Are there any other alternate frequencies that would be feasible for you?
LISTNUM 1 \l 1646 MR. ENDERS: Yes, they identified a second Channel 272, which is 102.3 MHz and it has a similar coverage, although it has more interference issues to deal with, so this is the primary channel to choose.
LISTNUM 1 \l 1647 COMMISSIONER del VAL: Thank you. I am sure Madam Chair will be asking you to give a last pitch. I will postpone the next question, but basically I would like you to address it at some point, why you, why you are the best for repatriation and, out of all these fabulous applicants, why you? So should we postpone that to..?
LISTNUM 1 \l 1648 MR. WEESE: Sure.
LISTNUM 1 \l 1649 COMMISSIONER del VAL: Okay, thank you.
LISTNUM 1 \l 1650 Those are my questions, thank you, Madam Chair.
LISTNUM 1 \l 1651 THE CHAIRPERSON: Commissioner Menzies.
LISTNUM 1 \l 1652 COMMISSIONER MENZIES: Thank you.
LISTNUM 1 \l 1653 I just have some quick questions and then another one that is maybe a bit more complicated.
LISTNUM 1 \l 1654 In your newsroom the presentation said you have four people, but then it referred to one experienced news director, plus four. Is the news director included in those four?
LISTNUM 1 \l 1655 MR. BAYNTON: The news director is included in those four, yes.
LISTNUM 1 \l 1656 COMMISSIONER MENZIES: Okay. So there is a director and three reporters, one of whom is specializing on Aboriginal affairs?
LISTNUM 1 \l 1657 MR. BAYNTON: No.
LISTNUM 1 \l 1658 COMMISSIONER MENZIES: No?
LISTNUM 1 \l 1659 MR. BAYNTON: No, the Aboriginal reporter is one of our additional four correspondents.
LISTNUM 1 \l 1660 COMMISSIONER MENZIES: Okay.
LISTNUM 1 \l 1661 MR. BAYNTON: Okay? The four full‑time, including the news director, are the people who are actually working in the station.
LISTNUM 1 \l 1662 COMMISSIONER MENZIES: Okay. Are they going to cover shifts right through the week?
LISTNUM 1 \l 1663 MR. BAYNTON: Yes, through the week, through the weekend and ‑‑
LISTNUM 1 \l 1664 COMMISSIONER MENZIES: All seven days?
LISTNUM 1 \l 1665 MR. BAYNTON: ‑‑ they will also be doing reporting as well.
LISTNUM 1 \l 1666 COMMISSIONER MENZIES: Is it a 24‑hour cycle or..?
LISTNUM 1 \l 1667 MR. BAYNTON: A 6A until 6P.
LISTNUM 1 \l 1668 COMMISSIONER MENZIES: 6A until 6P?
LISTNUM 1 \l 1669 MR. BAYNTON: Yes.
LISTNUM 1 \l 1670 COMMISSIONER MENZIES: Okay, thanks.
LISTNUM 1 \l 1671 MR. BAYNTON: I should, possibly, just mention that there will be the opportunity for us to go live during the off hours as well. We have got two things planned for that. One of them is high school intern who would be in the station in the evenings who would be able to handle the incoming calls and deal with anything that is going on and then call in news staff, as required.
LISTNUM 1 \l 1672 The other is what we do in the Wingham stations, and that is we have an on‑call editor who has a pager, actually it is a Blackberry now, and he can access all the wire services and any phone calls that come into the newsroom and so on. So he can respond and get back in the news room and get back on the air live if anything happens after hours as well.
LISTNUM 1 \l 1673 COMMISSIONER MENZIES: Okay. In terms of your research, a survey of 300 people, what is the margin of error on a survey of 300 people?
LISTNUM 1 \l 1674 MR. BAYNTON: Mark Kassof.
LISTNUM 1 \l 1675 MR. KASSOF: Just a second here, I have got the calculation standing by. The worst case margin of error on a sample of 300 for the total sample would be 5.66 per cent.
LISTNUM 1 \l 1676 COMMISSIONER MENZIES: And what would it be on the breakouts?
LISTNUM 1 \l 1677 MR. KASSOF: Higher. I mean, it would depend on ‑‑ each breakout has its own cell size, so you would have to figure out each one individually.
LISTNUM 1 \l 1678 COMMISSIONER MENZIES: So plus or minus 9 if I break it out into gender, for instance?
LISTNUM 1 \l 1679 MR. KASSOF: 7.7.
LISTNUM 1 \l 1680 COMMISSIONER MENZIES: 7.7, thank you.
LISTNUM 1 \l 1681 If this market were to be opened up, how many licences do you think it could handle?
LISTNUM 1 \l 1682 MR. WEESE: One comfortably, for sure, and one that would be very healthy and one that would be viable and one that would be able to live to a full service commitment. I would be concerned that if two were licensed that it would have impact on the existing broadcaster as well as the other new entity into the marketplace.
LISTNUM 1 \l 1683 COMMISSIONER MENZIES: So one?
LISTNUM 1 \l 1684 MR. MR WEESE: I am thinking one.
LISTNUM 1 \l 1685 COMMISSIONER MENZIES: Okay. I am curious to know about your strategy regarding The Bull. What impact would this, yours or in that sense I guess others, but yours particularly, as you own it, have on The Bull? It appears like you are prepared to partially cannibalize your audience at The Bull, I guess the idea being if somebody is going to eat it, it might as well be you.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1686 COMMISSIONER MENZIES: But what kind of an impact would that have on your operation in Wingham? Because usually if market share falls revenue might fall, which means cost containment and I think we all know what that means.
LISTNUM 1 \l 1687 MR. MR WEESE: Sure.
LISTNUM 1 \l 1688 COMMISSIONER MENZIES: So can you just expand on your strategy regarding that?
LISTNUM 1 \l 1689 MR. MR WEESE: I would be happy to. And you are absolutely right, we do cannibalize ourselves a bit on that. In fact, we have listed in our brief as to what we believe will be where our revenues will come, from out‑of‑market broadcasters at 25 per cent. So that is $234,000 and we believe a chunk of that is going to come right off The Bull.
LISTNUM 1 \l 1690 However, we understand two things, and that is that The Bull was not intended to be a radio station for Owen Sound. It was primarily intended to be a station for mid‑western Ontario.
LISTNUM 1 \l 1691 We soon discovered after testing and then putting it on the air that we did have a following in Owen Sound and that there was an appetite up there for people to participate with a radio station. And, being good businesspeople, we certainly, I don't know if explored is a good word, but we certainly satisfied the advertising demand up in that area and we are very happy with that.
LISTNUM 1 \l 1692 But we do understand that our core market is mid‑western Ontario. And therefore, when we asked for power increases for South Huron we had that intent of being able to best satisfy our home market before we go gallivanting into other markets. And so we believe that is where our long‑term strength is going to be in our home market.
LISTNUM 1 \l 1693 And, as you can see with the BBM, The Bull started off very strong year one, little loss year two, year three we are down to a 13.5 market share. And we would like to think and the people on our Bull team would like to think that they can bolster that number or hold onto that number. I think history is starting to prove that being out of market now does have a cost and that it is a depreciating asset as time goes on.
LISTNUM 1 \l 1694 So we want to put a station into that market that is going to stand and grow in market share and not decline.
LISTNUM 1 \l 1695 COMMISSIONER MENZIES: Can you just maybe explain for me too the difference between your format decision and the earlier application which went straight after a rock format in terms ‑‑
LISTNUM 1 \l 1696 MR. MR WEESE: Sure, I would be happy to do that. In fact, I am fortunate to have a couple of people with me here today who could probably best answer that. I can either start with Mark or Gina.
LISTNUM 1 \l 1697 Mark, are you prepared?
LISTNUM 1 \l 1698 MR. KASSOF: Well, I hope so.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1699 MR. KASSOF: Basically, you know, what I looked at and shared with the radio station was what is the biggest unserved need in the market? And the biggest unserved need in the market was the format that we are discussing. You know, when we get down to mainstream rock it is considerably less. The format for mainstream rock is 7 per cent, so it is considerably less. So the biggest need in the market seemed to be a good way to go.
LISTNUM 1 \l 1700 Another thing I would like to share is that, you know, I think conventional wisdom is that the way to take share, to repatriate, is to put something on exactly the same as what they are taking away from.
LISTNUM 1 \l 1701 My experience is that is not always a very good strategy. And, in fact, sometimes you can repatriate more by giving to people something that is a little bit different, giving them something that they don't have before. So that is where that all came from basically.
LISTNUM 1 \l 1702 And again, we are talking about a station that I projected at 16 share, 12‑64 with 10 points coming from The Bull. And again, that is based on that model I shared with you earlier.
LISTNUM 1 \l 1703 COMMISSIONER MENZIES: Without ‑‑ I am sorry, go ahead.
LISTNUM 1 \l 1704 MS LORENTZ: I was just going to add, additionally, the format that we are proposing appeals to a slightly older demo, it is an aging demo in Owen Sound currently. And, as Ray and others have spoken, that demographic of 35‑54 with the high percentage of out‑of‑market tuning, it is very community and family focused and a lot of our programming that will be going into this new station will reflect the need for that audience.
LISTNUM 1 \l 1705 COMMISSIONER MENZIES: Okay. And the last question on this is you identified an unmined revenue resource of about $900,000 out there. I am not asking you to give away phone numbers or anything, but can you tell me, roughly, what sort of segments those are in? Are they automotive, are they retail? Give me some idea where those $900,000 loonies can be found.
LISTNUM 1 \l 1706 MR. WEESE: Well, it is pretty broad‑based. I think I have with me somewhere ‑‑ EPI Markets breaks it down by segment in a particular market and so there would be auto and there would be other areas.
LISTNUM 1 \l 1707 If you would just bear with me just one second, I will go through a briefcase and try to find this document.
LISTNUM 1 \l 1708 MR. WEESE: And I had better come up with this document. We can play the sample of the sound again while I am going through this if you want.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1709 MR. WEESE: Oh, here we go.
LISTNUM 1 \l 1710 Indeed, the biggest retail category to date in Owen Sound. So when we talk about the untapped revenue potential, what would be off a broad base of existing business sectors that would be out there that are measured by Financial Post markets, when I take a look at information from the Radio Marketing Bureau it indicates that by far the largest sector would be automotive sales as well as RV and parts and that represents by far the biggest category. That is followed by general merchandise, supermarkets, pharmacies, home centres, gas stations, clothing and so on.
LISTNUM 1 \l 1711 So when we talk about that $900,000 of unmined radio potential, it would be taken off, in our mind, this cross‑section of all these markets.
LISTNUM 1 \l 1712 COMMISSIONER MENZIES: And just so I am clear, this is new money, that more competition would increase the spend by advertisers as opposed to shifting their spend from other forms of media or ‑‑
LISTNUM 1 \l 1713 MR. WEESE: Well, that would be the idea.
LISTNUM 1 \l 1714 COMMISSIONER MENZIES: Right.
LISTNUM 1 \l 1715 MR. WEESE: Right now, the market is arguably underserved and if you were to take the calculations of radio share out of the retail shares, it would represent X amount of dollars, $6.2 million to be exact.
LISTNUM 1 \l 1716 Right now we currently estimate that $5.3 million is being taken, the variance being $900,000, and that there is plenty of room in the market for people to attack that directly. They won't get it all but at least it shows that there is room in the market for somebody to compete for that.
LISTNUM 1 \l 1717 COMMISSIONER MENZIES: Okay, thank you.
LISTNUM 1 \l 1718 THE CHAIRPERSON: I too have some follow‑up questions and primarily they deal with adding diversity to the market because if we license this service it is not like your Wingham station is going to go away from the Owen Sound market.
LISTNUM 1 \l 1719 Mr. Weese, you said that a 13.5 percent share of tuning is down from other years but some of the applicants in these proceedings project an even lower share of tuning, at least in the early years, in their applications.
LISTNUM 1 \l 1720 So, first of all, would you care to comment on what some of those projections of share of tuning are, and, secondly, why you aren't comfortable with just getting 13.5 percent from Owen Sound?
LISTNUM 1 \l 1721 MR. WEESE: Well, okay. Yes, very good and a good question. If their market share ‑‑ the last applicant, I didn't hear what they were projecting after year one but they sounded like they were coming out very strong. The other applicants are also talking about coming out pretty strong with market share as well.
LISTNUM 1 \l 1722 We believe we are coming out quite aggressively with a 16‑point share but we recognize that we are taking that off ourselves. When we open up for business, we do not expect that our Bull is going to hold onto its share of hours tuned, that that number is going to go down.
LISTNUM 1 \l 1723 We listed in Mr. Kassof's research that it is going to go down 10 points just from his research and we suspect it will take a pretty good dent into that 13.5, that is declining anyway as time goes on.
LISTNUM 1 \l 1724 THE CHAIRPERSON: You did say that about 10 percent of your revenues are generated from the Owen Sound market currently?
LISTNUM 1 \l 1725 MR. WEESE: From all our Wingham radio stations.
LISTNUM 1 \l 1726 THE CHAIRPERSON: Right. Do you have a sales force in Owen Sound?
LISTNUM 1 \l 1727 MR. WEESE: We have. We have two people that do service in Owen Sound, one specifically in the city and one part of the city and part of the surrounding area.
LISTNUM 1 \l 1728 THE CHAIRPERSON: Are you moving that person back to Wingham ‑‑
LISTNUM 1 \l 1729 MR. WEESE: We may have to.
LISTNUM 1 \l 1730 THE CHAIRPERSON: ‑‑ if you get licensed?
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1731 MR. WEESE: We will have a sales force, obviously, for the Sound. That person may be a candidate for that team.
LISTNUM 1 \l 1732 THE CHAIRPERSON: Okay. One of the things about your format ‑‑ again, it goes to diversity in terms of what will be available in the market because your Wingham station will still be available here and so the format question is on this proposal.
LISTNUM 1 \l 1733 Ms Lorentz, you said it had a harder edge than what is currently available in the market; correct?
LISTNUM 1 \l 1734 MS LORENTZ: Harder edge than CFOS, which does have a percentage of oldies that they play within their format that includes news, talk and sports programming. So the catalogue of music that we would be pulling from, the seventies and eighties, would have more of a rock‑based harder edge from that catalogue that perhaps CFOS also digs into primarily.
LISTNUM 1 \l 1735 THE CHAIRPERSON: So there might be some duplication?
LISTNUM 1 \l 1736 MS LORENTZ: There might be some duplication.
LISTNUM 1 \l 1737 THE CHAIRPERSON: Yes, because when I look at your list, and although I haven't seen it in a while, I see Procol Harum and I don't quite consider Procol Harum to have a harder edge, just as an example.
LISTNUM 1 \l 1738 MS LORENTZ: I think overall the flow of it by focusing on the seventies and eighties, it will have quite a different sound from CFOS.
LISTNUM 1 \l 1739 THE CHAIRPERSON: And I see in response to deficiency questions your target audience is males age 45‑54; is that correct?
LISTNUM 1 \l 1740 MR. WEESE: When we drilled down to what the core was ‑‑ and my understanding of that deficiency question is if you had to identify exactly who your core audience would be, it would be 45+ male to 54. However, our station will serve 35+ to 54 audience.
LISTNUM 1 \l 1741 THE CHAIRPERSON: And what is the core audience of your Wingham station?
LISTNUM 1 \l 1742 MR. WEESE: Of our Bull radio station?
LISTNUM 1 \l 1743 THE CHAIRPERSON: Yes.
LISTNUM 1 \l 1744 MR. WEESE: It is 18+.
LISTNUM 1 \l 1745 THE CHAIRPERSON: And what would be the median age of both, of both the Bull and this proposal?
LISTNUM 1 \l 1746 MR. WEESE: The median age? I will let Mark Kassof address what he believes is the median age. My understanding of it is it would be right around 40 and probably male. The Bull seems to be growing a bit of a younger audience but it is strong at 35+ male as well, but burgeoning at 18+.
LISTNUM 1 \l 1747 THE CHAIRPERSON: Okay.
LISTNUM 1 \l 1748 Do you have anything to add, Mr. Kassof?
LISTNUM 1 \l 1749 MR. KASSOF: Yes. The projection that I have is that 73 percent of the audience would be 25‑54 men and women. Drilling that down a little further, 62 percent would be 35‑54 and then further still 45 percent would be 45‑54. Male‑female split about 55 percent men.
LISTNUM 1 \l 1750 THE CHAIRPERSON: Okay. Well, thank you very much.
LISTNUM 1 \l 1751 Legal Counsel?
LISTNUM 1 \l 1752 MS SMITH: Thank you.
LISTNUM 1 \l 1753 I just have one question for you. I wanted to know if you would be willing to file a breakdown of your projected market tuning by the end of the day December 17th, which is next Monday.
LISTNUM 1 \l 1754 MR. WEESE: Absolutely! We can give that to you now if you like.
LISTNUM 1 \l 1755 MS SMITH: If you have it, that would be great. Thank you.
LISTNUM 1 \l 1756 MR. WEESE: You are welcome.
LISTNUM 1 \l 1757 THE CHAIRPERSON: You now have your two minutes for your final pitch and to tell us why you would be the best applicant to serve this market.
LISTNUM 1 \l 1758 MR. COSTLEY WHITE: I will do that. Thank you very much, Madam Chair and commissioners and staff.
LISTNUM 1 \l 1759 The Commission's criteria for evaluating applications for new radio stations seeks to ensure that the best possible application is licensed while ensuring that no undue damage is done to incumbent broadcasters.
LISTNUM 1 \l 1760 First of all, I would note that the incumbent broadcaster has not contested the capacity of the Owen Sound market to absorb a new station. So that leaves the quality of the application.
LISTNUM 1 \l 1761 When this call was issued, Blackburn Radio responded by drawing on its heritage, on its experience and on its skilled team, some of whom you have met today, of broadcasters to develop a proposal for a new radio service of exceptionally high quality to serve the Owen Sound community.
LISTNUM 1 \l 1762 I would like to refer you to your material. Stapled to this map of Midwestern Ontario at the back is a comparison chart which I think you have also seen up on your screen here, the purpose of which is to illustrate the quality of our proposal.
LISTNUM 1 \l 1763 Blackburn Radio has proposed by far the highest program expenditures of all the candidates for this licence. You have heard some of the detail this morning. Simply put, this underscores our commitment to broadcasting excellence wherever we operate.
LISTNUM 1 \l 1764 We have also proposed by far the highest level of news content at 18 hours and 18 minutes and to produce this level of news we have proposed the largest news staff of all the applicants, with four full‑time staff and four part‑time correspondents to serve the extended coverage area of our proposed station.
LISTNUM 1 \l 1765 We have proposed the highest level of Canadian content, at 40 percent, both during the overall broadcast week and during the daytime period and we have proposed creative CCD initiatives that will enrich the cultural life of the city of Owen Sound.
LISTNUM 1 \l 1766 We have proposed the highest level of capital expenditure and this is also characteristic of our company. We wanted to ensure that our signal will support our mandate, that our team is supplied with the best equipment and that we have a storefront presence in the city which will welcome the community.
LISTNUM 1 \l 1767 With respect to format, you have three choices before you.
LISTNUM 1 \l 1768 Two applicants, those who have proposed rock formats, have essentially done no format research but merely looked at the BBMs. One applicant chose its format based on testing the popularity of their proposed format only.
LISTNUM 1 \l 1769 By contrast, Blackburn Radio commissioned new consumer research which tested the popularity of and preference for nine different formats. From this research we selected the format that will support the most effective market entry by meeting the greatest unmet need in the market.
LISTNUM 1 \l 1770 Blackburn Radio's approach reflects the way in which we operate in the five markets we currently serve.
LISTNUM 1 \l 1771 If my mother and father taught me one lesson of management, it is to hire great people. I am proud of this team, some of whom you have met today, and they prove every day that they can fulfil their promises and deliver great radio.
LISTNUM 1 \l 1772 I want to thank you very much for your attention. As John said in our opening remarks, if you grant us this licence, you will not be disappointed. Thank you.
LISTNUM 1 \l 1773 THE CHAIRPERSON: Thank you, Mr. Costley White, Mr. Weese and to your colleagues for your participation here today.
LISTNUM 1 \l 1774 We will now break for lunch and come back at 1:30. Thank you.
‑‑‑ Upon recessing at 1200 / Suspension à 1200
‑‑‑ Upon resuming at 1330 / Reprise à 1330
LISTNUM 1 \l 1775 THE SECRETARY: We will now proceed.
LISTNUM 1 \l 1776 We will now proceed with item 3, which is an application by Larche Communications Inc. for a licence to operate an English‑language FM commercial radio programming undertaking in Owen Sound.
LISTNUM 1 \l 1777 The new station would operate on frequency 92.3 MHz (channel 222B) with an effective radiated power of 20,000 watts (non‑directional antenna/antenna height of 212 metres).
LISTNUM 1 \l 1778 Appearing for the Applicant is Mr. Paul Larche. Please introduce your colleagues and you will have 20 minutes for your presentation.
PRESENTATION / PRÉSENTATION
LISTNUM 1 \l 1779 MR. LARCHE: Thank you very much.
LISTNUM 1 \l 1780 Good afternoon, Madam Chair and commissioners and CRTC staff.
LISTNUM 1 \l 1781 My name is Paul Larche. I am the President of Larche Communications or LCI for short.
LISTNUM 1 \l 1782 It is always a privilege to present before you and today is no different for a new FM radio station to serve Owen Sound.
LISTNUM 1 \l 1783 Please let me introduce my panel.
LISTNUM 1 \l 1784 Joining me today is Mora Austin, who is our Vice‑President and General Manager of our Midland operation CICZ‑FM. Mora has worked at CICZ for over 20 years.
LISTNUM 1 \l 1785 Next to Mora is our company's Music and Program Director along with morning show co‑host of CICZ, Ted Roop. Ted recently won the Canadian Country Music Association's On‑Air Personality of the Year Award and Music Director of the Year Award for 2007.
LISTNUM 1 \l 1786 Seated next to Ted is our Promotions Director for CIKZ‑FM Kitchener, Beth Warren. Prior to joining us four years ago, Beth worked for more than 10 years in the Canadian independent country music industry. She won Manager of the Year Award in both 1999 and 2000 at the Ontario Country Music Association Awards and Record Company Person of the Year at the CCMA Awards in 1999.
LISTNUM 1 \l 1787 Madam Chair, commissioners, I can't tell you how excited I am to be here today. This application for Owen Sound, as well as our application for Peterborough which we will present hopefully in the next couple of days, makes great strategic sense for our company.
LISTNUM 1 \l 1788 Owen Sound is right across Georgian Bay from our Midland operation. We are not only connected geographically, we are both part of cottage country and cottage country radio is something we have had the good fortune to be very successful at for several years.
LISTNUM 1 \l 1789 I have had the pleasure of working and living all over Ontario. I grew up in the north and also worked for several years in Toronto but I have always considered cottage country to be the most beautiful part of our province: four great seasons, a multitude of recreation, fantastic waterways, absolutely great people and a terrific place to raise a family. That is why it has been my home for 12 years and I can't imagine living anywhere else.
LISTNUM 1 \l 1790 Expanding our radio holdings in cottage country makes perfect sense on so many levels for us. Because it is our home we intimately know the region. We know how business is conducted in the area. We understand and appreciate the economic drivers.
LISTNUM 1 \l 1791 We are part of the fabric and culture of cottage country and at the risk of sounding a bit trite, it is a bit of a radio marriage made in heaven, but we fully appreciate that this is a competitive hearing and that the application must stand on its own and that is exactly what we have done.
LISTNUM 1 \l 1792 We believe this application strikes the perfect balance of reflecting and satisfying market needs, sound business judgment and fulfilling the mandate of the Broadcast Act.
LISTNUM 1 \l 1793 So let's start with the business plan.
LISTNUM 1 \l 1794 Ted.
LISTNUM 1 \l 1795 MR. ROOP: Thank you very much, Paul, and good afternoon, commissioners.
LISTNUM 1 \l 1796 We are proposing a rock‑based music format for Owen Sound and this is clearly the format they want. It is made evident by the market's BBM ratings.
LISTNUM 1 \l 1797 The second most‑listened to station with listeners 12+ and the number one station with listeners 25‑54 in Owen Sound is a rock station. The problem is it is not an Owen Sound station. CIBU‑FM Wingham is situated over an hour's drive south of Owen Sound in a different county but the rock format offered by CIBU‑FM is without a doubt filling a huge void in Owen Sound.
LISTNUM 1 \l 1798 With only AC, country and oldies on local radio, no station is dedicated to the rock genre. No station is providing radio programming that reflects the interests and lifestyle of rock music listeners in Owen Sound.
LISTNUM 1 \l 1799 Offering a local rock station will bring these listeners back to Owen Sound radio. That is why we are proposing Rock 92.
LISTNUM 1 \l 1800 Rock 92 will be a broad‑based rock station that will essentially include the best the format has to offer. Rock 92 will superserve the rock music fan in Owen Sound with a mix of classic rock and the best new rock.
LISTNUM 1 \l 1801 Classic rock artists such as the Guess Who, Rush, Led Zeppelin, BTO, Arrowsmith, the Eagles, AC/DC, the Rolling Stones, Tom Cochrane and Neil Young will make up approximately two‑thirds of the overall playlist.
LISTNUM 1 \l 1802 Also airing on Rock 92 will be current rock music and music from the past five years. Some of these core artists will include Nickelback, Sloan, Avril Lavigne, Sum 41, the Tragically Hip, Default, The Trews and Three Doors Down.
LISTNUM 1 \l 1803 Of course, a high‑quality station must provide a wide variety of music‑related features to engage the rock listener. Rock 92 will feature several locally produced rock programming features targeted to Owen Sound.
LISTNUM 1 \l 1804 Rock 92's programming will be 100 percent locally produced and originating. We believe the only way to truly reflect the community you serve is to ensure all programming originates from the station.
LISTNUM 1 \l 1805 We anticipate the impact on incumbent stations will be minimal. We will be repatriating out‑of‑market listeners and bringing back radio dollars that have left the market.
LISTNUM 1 \l 1806 I am very proud of the track record CICZ‑FM in Midland has established. At the recent Canadian Country Music Association Awards held in Regina, CICZ‑FM was chosen as Country Station of the Year and this is the fifth time in the past six years we have been honoured with that award.
LISTNUM 1 \l 1807 We want to duplicate this success in Owen Sound. Of course, music is only one component of a successful station. To talk about the rest, over to Mora.
LISTNUM 1 \l 1808 MS AUSTIN: Thanks, Ted.
LISTNUM 1 \l 1809 Our non‑music programming, in a nutshell, will be local, local and more local. That is what has made us successful in Central Ontario, that is what made us successful in Kitchener and that is what will make us successful in Owen Sound.
LISTNUM 1 \l 1810 In today's age of iPod, satellite radio and other emerging technologies, terrestrial radio's true and only edge is being local, informing, reflecting and discussing local and regional content.
LISTNUM 1 \l 1811 We have committed to over 12 and a half hours of meaningful local spoken‑word programming. For example, we will program three times per day special community vignettes called "Community Clips." They will feature a wide range of local topics and interviews aimed to reflect the needs of Owen Sound and the cultural diversity of the region.
LISTNUM 1 \l 1812 Similar to Midland, Owen Sound is also lucky enough to have Georgian Bay right on is doorstep. With that in mind, we will offer comprehensive daily recreation and tourism reports throughout the year focused on boating, fishing, camping, skiing, snowmobiling and more.
LISTNUM 1 \l 1813 You will find our community cruiser, our station boat or our station snowmobiles at all major community events, offering both onsite and on‑air exposure.
LISTNUM 1 \l 1814 In addition, the station will invite various community groups and charitable organizations to post their information, special events and link on our website.
LISTNUM 1 \l 1815 Also, we are very excited to offer our listeners an opportunity to voice their opinions and views regarding local issues of importance through our feature entitled "The Owen Sounding Board." Each day our on‑air staff will pose a relevant question to the Owen Sound community. Listeners will be invited to call in and record their feedback. The following day we will air our listeners' comments and concerns.
LISTNUM 1 \l 1816 Rock 92 will also offer a new and diverse news voice to the Owen Sound market. Local and regional news will be first and foremost and will represent 80 percent of our total news package.
LISTNUM 1 \l 1817 With over three hours and 20 minutes devoted to news and an additional three hours of local sports, local weather and local traffic reports, we are convinced we will be supplying the people of Owen Sound with the information that matters most to them each and every day.
LISTNUM 1 \l 1818 As an added benefit we will cross‑promote news, public events and tourist attractions with our Midland operation.
LISTNUM 1 \l 1819 Madam Chair and commissioners, I have worked at CICZ‑FM, which originally was CKMP‑AM, for 21 years. Just prior to Paul's purchase of CICZ, I can honestly tell you I was not proud of the radio station. I loved the radio business but at that point seriously considered getting out of it. We had a skeleton staff of only six and definitely we were not serving our community in the way in which they expected or deserved. We were losing respect and revenues, let alone morale.
LISTNUM 1 \l 1820 It is hard to believe that we just celebrated our 10th anniversary under Larche Communications. I guess time really does fly when you are having fun and what a great ride it has been.
LISTNUM 1 \l 1821 Under Paul's leadership ‑‑ although, frankly, I have done most of the work ‑‑
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1822 MS AUSTIN: ‑‑ Midland has been a great broadcast success story in ratings, revenues, product and, above all, the critical role we play in reflecting and informing the communities we serve. We are very proud to say we are doing the same in Kitchener.
LISTNUM 1 \l 1823 Our mission statement is exceedingly simple: MOCHA, an acronym for Make Our Customer Happy Always. Our customers are the communities we serve, including listeners, advertisers and employees.
LISTNUM 1 \l 1824 The core values behind MOCHA are simple as well: Make sure we have the right strategy, the right people, effective systems and quality in everything we do.
LISTNUM 1 \l 1825 Our vision is to be the most successful small independent broadcaster in Canada. We want to be envied as a leader in ratings, innovation and place to work.
LISTNUM 1 \l 1826 It really comes down to this: Ask our customers what they want and then give it to them. What a concept!
LISTNUM 1 \l 1827 Despite the size of our company, Paul has set high standards that bring out the best in all of us. His staff and peers respect and admire him. He believes in rewarding his people both promotionally and financially and our profit‑sharing program exhibits his generous character.
LISTNUM 1 \l 1828 We want our company to grow. Paul wants to give his employees an opportunity to grow as well. That is why we are here today. We have shown this industry and ourselves that despite being a small independent we can compete with the very best in the country.
LISTNUM 1 \l 1829 I would like to now pass it over to Beth to discuss our impressive CCD initiatives.
LISTNUM 1 \l 1830 MS WARREN: Thanks, Mora.
LISTNUM 1 \l 1831 I have worked in the music industry in various capacities for more than 20 years and I have seen firsthand that the dollars committed by radio do make a huge difference to Canadian artists. I have worked with several artists that have gone on to have successful careers and they couldn't have done it without the help and financial support of radio.
LISTNUM 1 \l 1832 LCI is dedicated to providing assistance toward the growth and development of the Canadian independent recording industry and are therefore committing a total of $350,000 over the first licence term. We believe these initiatives will make a real difference, particularly with emerging artists.
LISTNUM 1 \l 1833 The Foundation to Assist Canadian Talent on Record, or FACTOR, has been directly responsible for many Canadian success stories and we are proud to be contributing broadcasters. $20,000 per year will go to FACTOR. It goes without saying the amazing job they do at assisting Canadian talent nationally and internationally.
LISTNUM 1 \l 1834 A lifelong love of music starts with our children. To encourage and support music programs in the school system, another $10,000 per year will go towards the purchase of new musical instruments and equipment for Owen Sound elementary and secondary schools.
LISTNUM 1 \l 1835 We have also committed $10,000 per year toward the Owen Sound Kiwanis Festival of Music. Many Canadian artists perform for the very first time on the Kiwanis stage, making it an important part in the careers of some of Canada's biggest stars.
LISTNUM 1 \l 1836 Rock 92 will also host the RockQuest Talent Search, at a cost of $10,000 per year. RockQuest will be modelled on the successful StarQuests we conduct in Midland and Kitchener. The winner will receive studio time, reproduction and, of course, airtime on our station.
LISTNUM 1 \l 1837 Our application also outlines a commitment of $50,000 per year in airtime devoted to promotion of music‑related activities in Owen Sound and area as it relates to emerging artists. This would include the promotion of concerts and performances by local artists, artistic programs in the community and the release of CDs for local artists.
LISTNUM 1 \l 1838 We will also produce emerging artist programming, including the new Artist of the Month, with 28 weekly vignettes highlighting the new artists, similar to our features that we currently air on our existing stations.
LISTNUM 1 \l 1839 These are truly outstanding CCD initiatives that we believe exceed and surpass the Commission's CCD plan as outlined in the recent Radio Review.
LISTNUM 1 \l 1840 In my various positions in the music business I have worked on the artist side with many radio stations from across the country. I know it sounds like I am bucking for a raise but I can honestly tell you I have never seen a company that puts so much time, effort and money into promoting and exposing Canadian talent.
LISTNUM 1 \l 1841 Just two weeks ago, our stations in Midland and Kitchener treated 4,000 of our listeners to two free concerts by Canadian country superstars The Wilkinsons and Emerson Drive, along with new Canadian emerging artist Jesse Farrell. The cost was $25,000 and this was not a CCD initiative. It was an investment we made in bringing our listeners and our artists together to celebrate great Canadian music.
LISTNUM 1 \l 1842 We consider this one of our mandates and we hope to have the chance to do this in Owen Sound.
LISTNUM 1 \l 1843 Paul.
LISTNUM 1 \l 1844 MR. LARCHE: Thank you, Beth.
LISTNUM 1 \l 1845 So again, Madam Chair and commissioners, we are before you positioning ourselves for the long term. This application, as I mentioned at the outset, is very strategic for our company.
LISTNUM 1 \l 1846 As you know, we are waiting approval on the divestiture of CIKZ‑FM Kitchener and the purchase of CICX‑FM Orillia. This will allow our company to rid ourselves ‑‑ and I say this in the absolute nicest possible way ‑‑ of minority partnerships.
LISTNUM 1 \l 1847 We are back on our own with total control of our destiny. It will allow us to consolidate our efforts in Central Ontario and cottage country.
LISTNUM 1 \l 1848 My vision of this destiny is to create a group of radio properties in small to medium size markets within a few hours drive of Midland. That is why we applied and received approval for Sudbury, that is why we are applying for Peterborough and that is why we are here today.
LISTNUM 1 \l 1849 As we have done with CICZ‑FM, I want these stations to be exemplary and envied inside and outside the business and the communities we serve.
LISTNUM 1 \l 1850 Madam Chair and commissioners, we all consider this a privilege. We are custodians of broadcast licences that belong to the Canadian people. The Broadcast Act wisely lets us hold onto it if we give back and reflect our country and communities. What a deal!
LISTNUM 1 \l 1851 We work hard to hold up our end of that deal. Our track record speaks for itself.
LISTNUM 1 \l 1852 Just last week we raised $25,000 for The Salvation Army in Midland through our Christmas Penny Drive. People in that market collect pennies all year long for this event.
LISTNUM 1 \l 1853 This fall our morning co‑host Carey Moran shaved her head and raised $25,000 for the Kelly Shires Foundation, a foundation that helps women battling breast cancer.
LISTNUM 1 \l 1854 I have a terrific staff and I can assure you they know our mandate and what we have to do to hold up our end of the deal.
LISTNUM 1 \l 1855 In conclusion, I hope you will agree that this is a fair, balanced and realistic application based on what we have proven that we do and not just on what you want to hear.
LISTNUM 1 \l 1856 Approval of this application will fill the largest underserved format in the market rock. BBM so obviously confirms this as the number one station with listeners 25‑54 is an out‑of‑market rock station over an hour's drive away from Owen Sound. Let's bring those listeners back.
LISTNUM 1 \l 1857 Because we are repatriating out‑of‑market tuning, approval of this application will have minimal impact on the incumbent radio broadcaster in Owen Sound, Bayshore Broadcasting. We believe this is evident by the fact that they intervened against all applications for this hearing except ours.
LISTNUM 1 \l 1858 Approval of this application will result in Canadian talent initiatives totalling an aggressive $350,000. We will be offering high‑quality programming and standards by a young group of broadcasters who are considered by their peers as the best in Canada.
LISTNUM 1 \l 1859 Approval of this application will introduce a new editorial voice in Owen Sound, one that will offer extensive news and community programming as well as a number of additional community initiatives that will expand and reflect the makeup and culture of this great community.
LISTNUM 1 \l 1860 This new voice will allow us to cross‑promote events and activities in cottage country and Central Ontario with our Midland and, hopefully soon, Orillia station. It will also allow us to further consolidate our efforts in this part of the province where we have decided to live and call home.
LISTNUM 1 \l 1861 Finally, approval of this application will allow a small independent radio broadcaster to get stronger, stronger to hold its own against much larger public companies, stronger to weather economic downturns and stronger to contribute to and enhance the goals and aspirations of the Broadcast Act.
LISTNUM 1 \l 1862 Thank you. We would be more than happy to take your questions.
LISTNUM 1 \l 1863 THE CHAIRPERSON: Thank you, Mr. Larche and your colleagues.
LISTNUM 1 \l 1864 I guess my first question is: Would you agree that beside every great man sits a great woman, based on what Ms Austin said earlier?
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1865 MR. LARCHE: Actually, we have several ‑‑
LISTNUM 1 \l 1866 THE CHAIRPERSON: I am sure.
LISTNUM 1 \l 1867 MR. LARCHE: ‑‑ great women that work with us but Mora has been such a huge contributor to our company, and believe it or not, she has worked at CICZ for 20 years. She did start when she was 12 but she does a great job up there and our company wouldn't work without her.
LISTNUM 1 \l 1868 THE CHAIRPERSON: Thank you.
LISTNUM 1 \l 1869 I am going to start the questioning in a much similar fashion as I did with the first applicant this morning, The Pearl, and speak about your choice of format, because, as I said earlier, it does form the basis for your business plan and the reason why you are here.
LISTNUM 1 \l 1870 You are proposing a blend of current and classic rock, targeting a predominantly male audience, age 35 to 54. Correct?
LISTNUM 1 \l 1871 MR. LARCHE: That's correct. Thirty‑five to 49 is the target.
LISTNUM 1 \l 1872 THE CHAIRPERSON: Thirty‑five to 49.
LISTNUM 1 \l 1873 And the median age?
LISTNUM 1 \l 1874 MR. LARCHE: Forty to 42‑year‑old male.
LISTNUM 1 \l 1875 THE CHAIRPERSON: Okay. Other than the BBM, which I know is a very strong indicator, but other than the BBM, what other factors did you take into consideration in coming up with this format and, therefore, your target audience?
LISTNUM 1 \l 1876 MR. LARCHE: First of all, I would like to comment on research in general for new applications, because I think it is quite relevant in this situation. We never shy away from doing qualitative research. We have done it in most of our applications. We have done it for Peterborough, which we will present to you in the next couple of days. And we have worked with some great researchers, including Mark Kassof, who you saw this morning. Mark is actually doing some work for us right now in another market.
LISTNUM 1 \l 1877 When you are putting a business plan together and you are trying to look at what the obvious hole is in terms of local and in a market, sometimes it becomes so obvious that it slaps you in the face, and, honestly, this is one of those times.
LISTNUM 1 \l 1878 When you have the number one radio station with listeners 25 to 54, and number two 12‑plus, with a radio station that is, arguably, an out‑of‑market radio station ‑‑ they are an hour away ‑‑ it is a testament to them that they put out a great product, but it is also so obvious that that is the biggest hole that is not being served in that market.
LISTNUM 1 \l 1879 Then what you do is, you look around at similar markets in Ontario. You don't have to go very far. You can look at Barrie, you can look at Sudbury, you can look at Peterborough, and you can look at Kitchener, where they have a country station and an AC station, and the rock format is the format that makes so much sense.
LISTNUM 1 \l 1880 It is true that BBM is relevant third party research, but we knew that the research was going to show us that what people aren't getting from a local radio station is rock, and we stand firmly behind that. Even looking at some of the other research that is being done, I think that still holds true.
LISTNUM 1 \l 1881 THE CHAIRPERSON: We heard from Blackburn that, according to the latest BBM, they get about a 13.5 share out of this market. How much of that do you expect to repatriate?
LISTNUM 1 \l 1882 MR. LARCHE: We project a 7 share in our first year, and we see that moving up to a 12 share by Year 3.
LISTNUM 1 \l 1883 Again, this is based on our experience. When we went into Kitchener, there was an out‑of‑market country station that was doing quite well in that market, and we found out that you don't come in and all of a sudden, just because you are local, take that audience away immediately. It does take some time.
LISTNUM 1 \l 1884 We have tried to do it based on our experience and, being conservative, we thought that it would take a little bit of time for us to get that audience.
LISTNUM 1 \l 1885 We also know that we will never get all of it. The Bull, or whatever they decide to do with it, will continue to have an audience in the Owen Sound area, because, as I mentioned, it's a good product.
LISTNUM 1 \l 1886 THE CHAIRPERSON: So you don't necessarily agree with The Bull when they say that they may drop as much as 10 points?
LISTNUM 1 \l 1887 MR. LARCHE: I look at it, also, from the target audience point of view, and the target audience is, arguably, 25 to 54. Everyone is going to narrow it down a little bit, but that is the money‑making demo, and The Bull is doing very well in that demographic.
LISTNUM 1 \l 1888 It was mentioned this morning that the ratings are starting to slip with The Bull, but that, in fact, doesn't hold true to last week's BBMs. They are the number one station, 25 to 54, with a 21.7 share, and that is the highest share they have ever had in that market.
LISTNUM 1 \l 1889 So, in fact, the ratings are going up, not down.
LISTNUM 1 \l 1890 THE CHAIRPERSON: As we said earlier, they are not going to go away.
LISTNUM 1 \l 1891 MR. LARCHE: Of course not.
LISTNUM 1 \l 1892 THE CHAIRPERSON: Whoever we license in this market ‑‑
LISTNUM 1 \l 1893 MR. LARCHE: Like I said, they are good broadcasters. They are very smart, and they will ‑‑
LISTNUM 1 \l 1894 Obviously, they don't make their bread and butter in Owen Sound, they make it in their home market. So this would have some impact on them, but I don't see them going away.
LISTNUM 1 \l 1895 THE CHAIRPERSON: And you are going to have to co‑exist with them.
LISTNUM 1 \l 1896 MR. LARCHE: Absolutely.
LISTNUM 1 \l 1897 THE CHAIRPERSON: In terms of the music, how much duplication is there going to be between what you are proposing and what is currently being played on The Bull ‑‑ and it goes to diversity of music available in the market.
LISTNUM 1 \l 1898 MR. LARCHE: Yes.
LISTNUM 1 \l 1899 A lot, but, again, we have looked at diversity in terms of local radio versus out‑of‑market radio. We are used to that in markets like Midland, Barrie, Kitchener, where we operate, where we are 50, 60 percent of the tuning.
LISTNUM 1 \l 1900 All formats are available in these markets, but they are not available on the local dial.
LISTNUM 1 \l 1901 Our format will be very similar to The Bull's. Like I said, they are a very well programmed rock station, with about two‑third classic rock versus a new and current mix.
LISTNUM 1 \l 1902 We would be very similar to that.
LISTNUM 1 \l 1903 I can't stand up here and say that we are going to be different and create diversity from that radio station, because we are not. Like I said, they are doing a good job.
LISTNUM 1 \l 1904 What we would be doing is something very similar to that, but we would be doing it with Owen Sound as our basis. We would be a local Owen Sound radio station, talking to and trying to reflect the needs and wants of people in Owen Sound, not in Wingham.
LISTNUM 1 \l 1905 THE CHAIRPERSON: And you will do this through your spoken word programming.
LISTNUM 1 \l 1906 That will be the differentiating factor?
LISTNUM 1 \l 1907 MR. LARCHE: Absolutely.
LISTNUM 1 \l 1908 THE CHAIRPERSON: We will talk about your spoken word programming a little bit later, but in terms of the impact on the existing stations, the Bayshore stations in Owen Sound, your supplementary brief specifies that 35 percent of your advertising revenues will come from existing stations. Correct?
LISTNUM 1 \l 1909 MR. LARCHE: Yes. From the incumbent stations.
LISTNUM 1 \l 1910 THE CHAIRPERSON: From the incumbent stations.
LISTNUM 1 \l 1911 But given that the format currently doesn't exist, some may say: That's really high.
LISTNUM 1 \l 1912 Why do you expect that you will have that level of impact on existing stations, where the format doesn't exist?
LISTNUM 1 \l 1913 Or, are you saying that maybe what does exist might come a little bit close to your format?
LISTNUM 1 \l 1914 MR. LARCHE: Again, we can tell you what we have seen happen in markets, and not just necessarily what you want to hear. The fact is that we will have an impact on Bayshore.
LISTNUM 1 \l 1915 We do say that, I think, it is 200,000 or 250,000 in the first year, and going up from that.
LISTNUM 1 \l 1916 What will happen is, you might have an advertiser who is just spending money on the country station and the AC station. They might continue to do that, but what is going to happen is, they are going to split it up now three ways, and that will have a bit of an effect on the incumbent station.
LISTNUM 1 \l 1917 If you look at the size of the market, the value of the market, and the new radio growth that is coming into the market ‑‑ and we project that 15 percent of our revenue is going to come from new growth ‑‑ it is very easy for them to absorb it.
LISTNUM 1 \l 1918 THE CHAIRPERSON: You also say that 50 percent from new advertisers and other media ‑‑
LISTNUM 1 \l 1919 MR. LARCHE: That's correct.
LISTNUM 1 \l 1920 THE CHAIRPERSON: So is it your contention that there are advertisers in the Owen Sound market who want to specifically target your target audience?
LISTNUM 1 \l 1921 MR. LARCHE: Yes, and I also think it ties back to the fact that in Owen Sound right now there is only one broadcaster. Again, they do a good job, but when you have more people out there selling radio, selling the value of radio as a medium, not even necessarily your radio station, but talking about why radio works in advertising, that tends to bring people over from newspaper and other media that haven't been convinced yet, because you are basically doubling the effort from the one current broadcaster to, now, two in the market.
LISTNUM 1 \l 1922 THE CHAIRPERSON: So the other media would be things like print, that you would expect ‑‑
LISTNUM 1 \l 1923 MR. LARCHE: Correct.
LISTNUM 1 \l 1924 THE CHAIRPERSON: We have talked about it to some degree, but, if licensed, the fact is that you will be competing with a well‑heeled incumbent in Bayshore, and, in a very similar degree, with Blackburn's Wingham station. It is competition. It is out‑of‑market, but it is still competition.
LISTNUM 1 \l 1925 As an independent broadcaster in the market, if you are licensed, what would be the challenges ‑‑ or maybe you see them as opportunities ‑‑ to be successful in this type of market?
LISTNUM 1 \l 1926 MR. LARCHE: I see much more opportunity than challenge, although, again, we are not saying that it would be easy. Again, we have tried to make it so clear in this that we are trying to tell you what we will do, and we are basing it on realistic numbers.
LISTNUM 1 \l 1927 We don't necessarily have the highest amount when it comes to programming expenses, but what we do say we are going to do we will deliver on.
LISTNUM 1 \l 1928 If you are looking at, basically, how we would react to competing against two players in a market, where they are already entrenched, we are very comfortable already doing that. We do it where we are based in Midland. We certainly have done that in the last four years in Kitchener. We know that if we do MOCHA, which we have talked about a few times, which is "Ask our customers what they want and give it to them," ultimately we will succeed.
LISTNUM 1 \l 1929 THE CHAIRPERSON: Speaking of your Midland and Kitchener stations, are there any synergies, if you are licensed in Owen Sound, with those two stations?
LISTNUM 1 \l 1930 MR. LARCHE: There definitely will be some synergies, especially at the back end of radio administration, our accounting, HR, engineering ‑‑ not too much on the programming side, for two reasons. One is, this would be a format that we don't have right now. We have country‑based formats. This would be rock, so we would be bringing in new people that are experts in that field.
LISTNUM 1 \l 1931 Wherever there could be a synergy that makes business sense, we would definitely look at it.
LISTNUM 1 \l 1932 THE CHAIRPERSON: So not necessarily in programming.
LISTNUM 1 \l 1933 MR. LARCHE: Actually, really not in programming at all.
LISTNUM 1 \l 1934 THE CHAIRPERSON: So the vignettes that, Ms Austin, you spoke about in the oral presentation, these would be totally independent of the Midland and/or Kitchener stations.
LISTNUM 1 \l 1935 MS AUSTIN: Yes. They would be locally produced and researched, and the interviews would be done through our newsroom in Owen Sound.
LISTNUM 1 \l 1936 THE CHAIRPERSON: And they are not vignettes of artists?
LISTNUM 1 \l 1937 MS AUSTIN: There are two. There are artist vignettes, which would feature emerging rock artists, if you will, and the second vignettes, which we call community clips, which would be something that would go under the news umbrella. We would interview the local Boy Scouts on what they are doing this week, if they have a special event, or something they are doing ‑‑ a fundraiser. We would have them on the air and do a little interview and feature that on our programming under the news umbrella.
LISTNUM 1 \l 1938 THE CHAIRPERSON: So if you were to create artist vignettes for this station that also may attract a country audience, you wouldn't use those vignettes?
LISTNUM 1 \l 1939 Bon Jovi ‑‑ I don't know, I am making this up.
LISTNUM 1 \l 1940 John Cougar Mellencamp, Mr. Larche.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1941 MS AUSTIN: Although both of those, sort of, have crossed over between the formats, these vignettes would be specifically for emerging artists.
LISTNUM 1 \l 1942 If it made sense we would do it, but at this point I can't think of any emerging rock artist that would cross over to the country format.
LISTNUM 1 \l 1943 THE CHAIRPERSON: And vice versa.
LISTNUM 1 \l 1944 MS AUSTIN: Right.
LISTNUM 1 \l 1945 THE CHAIRPERSON: The vignettes you are doing on the country stations would not appear on this station.
LISTNUM 1 \l 1946 MS AUSTIN: Right.
LISTNUM 1 \l 1947 THE CHAIRPERSON: We will go further into spoken word, because you are offering a substantial amount ‑‑ 12 hours and 31 minutes, to be exact.
LISTNUM 1 \l 1948 In your application you say that 6 hours and 42 minutes is information programming, and there will be 3 hours and 23 minutes of hard news. Correct?
LISTNUM 1 \l 1949 MR. LARCHE: Correct.
LISTNUM 1 \l 1950 THE CHAIRPERSON: Does that 3 hours and 23 minutes include surveillance?
LISTNUM 1 \l 1951 MR. LARCHE: No, that is strictly news.
LISTNUM 1 \l 1952 THE CHAIRPERSON: Strictly news.
LISTNUM 1 \l 1953 MR. LARCHE: Yes.
LISTNUM 1 \l 1954 THE CHAIRPERSON: Of which about 70 percent is local?
LISTNUM 1 \l 1955 MR. LARCHE: Yes. I think in the deficiency report we said that 60 percent would be local, 20 percent regional, and 20 percent national.
LISTNUM 1 \l 1956 Of course, that is an average.
LISTNUM 1 \l 1957 THE CHAIRPERSON: And there, too, there won't be any synergies with either your Midland or Kitchener stations?
LISTNUM 1 \l 1958 MR. LARCHE: No, except if there is an obvious news story that we want to cross‑promote between one or the other that just makes sense. You know, there was a big fire in Barrie the other day, which is right in our backyard, so that would be something that ‑‑ we would have a reporter down there and we would, most likely, do a cut‑in for the Owen Sound station. That would just make sense.
LISTNUM 1 \l 1959 THE CHAIRPERSON: Again, according to your supplementary brief, you say that you would hire two full‑time news people. Would these two people be responsible only for the 3 hours and 23 minutes?
LISTNUM 1 \l 1960 In other words, they won't be responsible for any of the other spoken word content?
LISTNUM 1 \l 1961 MR. LARCHE: They would be primarily responsible for all of the news and some of the surveillance, some of the sports, and, obviously, some of the weather forecasts.
LISTNUM 1 \l 1962 Again, this is based on our experience. That is what we currently have in Midland.
LISTNUM 1 \l 1963 Again, when you are a small operator, you learn how to work lean and smart, and you also know that to do really well in this business you need really good people. I have been very fortunate to be able to find and attract and hold onto some really good people.
LISTNUM 1 \l 1964 This format will not be a news‑intensive format, it will be a music‑intensive format, but we want to make sure that we are providing everything that the local person needs in terms of news in Owen Sound.
LISTNUM 1 \l 1965 News is just one component of reflecting the community properly, especially a community like Owen Sound, where tourism is so big. You have to be very involved with recreation, and that we don't include in our news department. We hire people who just work our recreation teams.
LISTNUM 1 \l 1966 We have two people who are on a boat in Georgian Bay throughout the summer, calling in reports, talking about marine conditions, talking about weather alerts, talking about events that are going on.
LISTNUM 1 \l 1967 There is an argument that that is more promotion, but there is also an argument that that is news and surveillance, as well, particularly when it comes to things such as weather.
LISTNUM 1 \l 1968 And it goes on with snowmobiling and fishing, and just living the culture of that market and reflecting it.
LISTNUM 1 \l 1969 A little over 3 hours of solid news is aggressive, but we feel that is what you need to give everybody what they need, and they don't have to go to another source to get it.
LISTNUM 1 \l 1970 But the additional 8 hours is where we really will separate ourselves from the pack.
LISTNUM 1 \l 1971 THE CHAIRPERSON: And it is what will separate you from The Bull?
LISTNUM 1 \l 1972 MR. LARCHE: That, primarily, is what will separate us from The Bull.
LISTNUM 1 \l 1973 As I mentioned earlier, our music will be similar, but the spoken word content will all be reflecting Owen Sound and what is going on in that area. It will not be talking about Wingham, it will be talking about Owen Sound, and it will be reflecting what people in Owen Sound want to know and hear.
LISTNUM 1 \l 1974 THE CHAIRPERSON: Thank you for that.
LISTNUM 1 \l 1975 I am going to move on to CCD. You have committed to an over‑above CCD contribution of $49,000 annually, for a total of $343,000 over the licence term. Will you accept this as a condition of licence?
LISTNUM 1 \l 1976 MR. LARCHE: Gladly.
LISTNUM 1 \l 1977 THE CHAIRPERSON: There was a little twist on answering that question, but thank you.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 1978 THE CHAIRPERSON: Please confirm your understanding that, if licensed, your station will have to contribute a basic annual CCD contribution, imposed by regulation, based on the station's total annual revenues, and in the amounts as set out in paragraph 116 of the new Radio Policy, Public Notice CRTC‑2006‑158.
LISTNUM 1 \l 1979 MR. LARCHE: Confirmed.
LISTNUM 1 \l 1980 THE CHAIRPERSON: Thank you.
LISTNUM 1 \l 1981 As you know, the final line of questioning has to do with the competition in terms of the applications before us. The Pearl is proposing a similar format, or maybe not, depending on your perspective, and I would like you to comment on whether or not you think there are similarities between your proposal and that of The Pearl.
LISTNUM 1 \l 1982 MR. LARCHE: There definitely are similarities. They seem, again, like another good group of broadcasters. I know that Christopher Grossman really knows broadcasting and has put on some very successful radio stations in a lot of the markets he has.
LISTNUM 1 \l 1983 There is no doubt that they wouldn't put on a good radio station. What would make ours different and, arguably, maybe a little better?
LISTNUM 1 \l 1984 I think we have to look at what separates our applications, and I think that, certainly, our CCD contribution is a big factor. We have significantly more money up there.
LISTNUM 1 \l 1985 We also, self‑servingly, think that we do a pretty good job in the country genre, and we are itching in the worst way to do it on the rock side. Rock music is near and dear, certainly, to my heart. I grew up playing in a rock band, and Purple Haze and ‑‑ you don't want to hear it, but ‑‑
LISTNUM 1 \l 1986 And I put Q92 on the air in Sudbury back in 1990, and it is still the number one radio station up in Sudbury.
LISTNUM 1 \l 1987 We would take this and we would put out an absolutely great rock music product. There is no doubt in my mind that the other applicants would put out good products, as well, but all I can tell you is, based on our experience, and based on our track record, we tend to really pay so much attention to the product. That is the core. That is our main driver, making sure that the product is right and is doing what the customer wants.
LISTNUM 1 \l 1988 THE CHAIRPERSON: One of the things you said in your supplementary brief ‑‑ and I am going to read it, so I make sure I get it right ‑‑
"From a monetary and execution perspective, it is a substantial and aggressive undertaking for a company of our size. The combination of three operations will greatly enhance the prospects of financial stability and survival for LCI."
LISTNUM 1 \l 1989 "Financial stability" and "survival" are strong words. You did touch upon it in your oral presentation, but I would like to give you the opportunity to elaborate on these statements, and what awarding a licence to you for Owen Sound would mean for your company.
LISTNUM 1 \l 1990 MR. LARCHE: As I mentioned in the oral presentation, the vision I have for our company is to be a central Ontario‑based radio company that is 100 percent controlled by myself and the group of people that I work with. I think that if I were to look at what has happened over the past few years, where we expanded into other markets where we didn't totally have control of our destiny, it kind of came back to bite us a bit.
LISTNUM 1 \l 1991 So we want to get back into control, into an area that I want to stay and live in and call home.
LISTNUM 1 \l 1992 But I also know that this business changes. There are several large broadcasters that we compete with in all the markets we are in, and they are very smart and they have deep pockets. We, basically, have to make sure that we have two or three or four radio properties, preferably in some different formats. To weather the storms of format changes and direct competition, we need those economies of scale. It makes perfect strategic sense for us to do it in an area in which we live, which we know, and that is why we are here today. That is why we will be here for Peterborough, so that we can concentrate on this part of Ontario, call it home, and be experts at it, and reflect those communities, and talk about everything that is going on within those communities that goes back and forth, because the just north of Toronto area really is different from other parts of the province, and you have to live there to really understand how it works.
LISTNUM 1 \l 1993 THE CHAIRPERSON: If I have taken anything away from your final two minutes, I apologize, but thank you for that.
LISTNUM 1 \l 1994 How many licences should we award in Owen Sound?
LISTNUM 1 \l 1995 MR. LARCHE: One.
LISTNUM 1 \l 1996 THE CHAIRPERSON: Okay. Thank you very much, Mr. Larche, and your colleagues.
LISTNUM 1 \l 1997 Do my colleagues have any further questions?
LISTNUM 1 \l 1998 Commissioner del Val.
LISTNUM 1 \l 1999 COMMISSIONER DEL VAL: Thank you.
LISTNUM 1 \l 11000 I just want to understand a bit better, from your perspective, the difference between your proposed format and the proposed format of Blackburn.
LISTNUM 1 \l 11001 MR. LARCHE: Maybe I could let Ted talk to this a little bit.
LISTNUM 1 \l 11002 We are proposing a mainstream rock format, whereas Blackburn is proposing a classic hits format.
LISTNUM 1 \l 11003 I can appreciate how some of this can sometimes sound confusing, because there is a lot of overlap, but a classic hits format would be probably defined as less edgier. Most of its music would be what we would call classic, from the seventies and the eighties, and the sixties, not too much new music, and it would have a bit wider repertoire in rock, to include some of what you might call softer rock.
LISTNUM 1 \l 11004 I think they mentioned some of the artists that they were referring to, some of the early Elton John and Carley Simon ‑‑ artists that wouldn't typically be on a rock station.
LISTNUM 1 \l 11005 A mainstream rock station will have a little bit more of an edge to it. It will be more male skewed. It will be, generally, a little bit heavier.
LISTNUM 1 \l 11006 Ted, is there anything you want to add to that?
LISTNUM 1 \l 11007 MR. ROOP: I think that pretty much sums it up, with the addition that we would be playing some new stuff, as well. A third of our playlist would be comprised of new music, too ‑‑ the last five years.
LISTNUM 1 \l 11008 COMMISSIONER del VAL: Thank you.
LISTNUM 1 \l 11009 THE CHAIRPERSON: Commissioner Menzies.
LISTNUM 1 \l 11010 COMMISSIONER MENZIES: Thank you.
LISTNUM 1 \l 11011 I have a question in reference to bringing back radio dollars to Owen Sound. I understand the desire to repatriate the audience, but I am a little confused as to how that might work.
LISTNUM 1 \l 11012 I would assume that the advertising that goes out brings people in. If it didn't, it wouldn't happen.
LISTNUM 1 \l 11013 How do you see that money returning to, in essence, and enhancing the community, and, at the same time, not actually decreasing the amount of commercial activity coming into the community from outside?
LISTNUM 1 \l 11014 MR. LARCHE: Well, if I understand your question correctly, and please correct me if I'm wrong, are you referring to when we say that we are going to bring listeners back to the local market and dollars back to the local market? The way we are explaining this is the money that is being taken out of that market by The Bull, for example, and the other stations out of Wingham, that is not ‑‑ that is money that is Owen Sound advertising radio money that could go to a local Owen Sound radio station, either the current incumbents or a new one if you were to licence it.
LISTNUM 1 \l 11015 If those ‑‑ when we come in we would obviously be taking some ratings as we have outlaid in our application, and in time we would bring those dollars that are being spent on an out‑of‑market radio station back into Owen Sound radio, so that the revenue pool within Owen Sound radio is strong enough to make sure that all the stations can fulfill their mandate and be successful.
LISTNUM 1 \l 11016 COMMISSIONER MENZIES: And you are confident you would still be able to provide the reach, though, to attract dollars for those advertisers coming into Owen Sound that currently are, because I am going to assume they are otherwise ‑‑
LISTNUM 1 \l 11017 MR. LARCHE: Yes.
LISTNUM 1 \l 11018 COMMISSIONER MENZIES: ‑‑ you wouldn't advertise out.
LISTNUM 1 \l 11019 Yes, okay.
LISTNUM 1 \l 11020 MR. LARCHE: Yes.
LISTNUM 1 \l 11021 COMMISSIONER MENZIES: Thank you.
LISTNUM 1 \l 11022 Ms Warren indicated the $340,000 or $350,000 or so could make a real difference in terms of the developing of Canadian artists or emerging Canadian artists. I'm just curious if you could give me ‑‑ if there is a couple of ‑‑ one or a couple of success stories that you could share with us to show where it has made a real difference so far.
LISTNUM 1 \l 11023 MS WARREN: Oh, as far as which artists have benefited from FACTOR for example?
LISTNUM 1 \l 11024 COMMISSIONER MENZIES: Yes, who did you make into a star?
LISTNUM 1 \l 11025 MS WARREN: Who did I make into a star personally?
LISTNUM 1 \l 11026 Well, I was married to a musician for over 15 years. Does that count?
‑‑‑ Laughter / Rires
LISTNUM 1 \l 11027 COMMISSIONER MENZIES: Did he become a star?
‑‑‑ Laughter / Rires
LISTNUM 1 \l 11028 MS WARREN: Well, we are divorced now. So you know no comment.
‑‑‑ Laughter / Rires
LISTNUM 1 \l 11029 MS WARREN: Actually, my former husband is a well known country music artist, Jamie Warren. I have also worked with Jason Blain who recently had a number one hit.
LISTNUM 1 \l 11030 I have worked with a couple of artists outside of the country format as well, a couple of roots acts and I have done a lot of different things in the music business from being a roadie to tour managing to managing things, promotions.
LISTNUM 1 \l 11031 As far as FACTOR is concerned, FACTOR is really a huge ‑‑ makes a huge difference as far as Canadian artists are concerned, everyone from Great Big Sea, Alanis Morissette. At some point most of these artists had to apply for FACTOR because to make a record is a hugely expensive proposition. And so the money that Canadian broadcasters contribute towards FACTOR, it's the only way we are going to sustain the Canadian music business, is to continue to support Canadian acts.
LISTNUM 1 \l 11032 MR. LARCHE: Just add to that in terms of specific examples there are several, but Jason McCoy is one who lives just outside of Midland, is right now probably, arguably, the top male country vocalist in Canada. He is now working out of Nashville but he has won the CC male vocalist of the year award, I think a couple of times, right, Ted? He is an artist that started out in our area that we worked with, that we helped promote, won our talent contest, went onto a different level, so on and so forth. So there is one clear example.
LISTNUM 1 \l 11033 And there is so many others that are ‑‑ just haven't maybe made it to that star level yet but they are doing so well. Deric Ruttan who is a songwriter in Bracebridge, is doing extremely well. He won another one of our talent contests and he is making a great living and I think ‑‑ was it last year the number one song in the U.S.
LISTNUM 1 \l 11034 So I mean, we have a lot of these types of success stories. But also we deal so much with artists day to day and as Beth mentioned, you know, we showcase artists. We put our money where our mouth is. We bring our listeners together so they don't have to pay to see some of this stuff because self‑servingly the more they enjoy these artists the more they are going to listen to our radio station. But we always take the time to make sure that we are introducing somebody new.