Genex president calls on CRTC to come through now on radio policy review

Genex Communications president Patrice Demers demanded September 9 that the CRTC move ahead with a review of its radio policy and that it remove strict content quotas so that various formats can survive. The Quebec entrepreneur, currently in a battle with the commission over its CHOI-FM radio licence, told Canadian Communications Reports that stations such as those devoted to alternative rock cannot afford to abide by the onerous French-language quotas imposed on them. "There was a trade-off in 1998 when the commission allowed consolidation in the radio industry in exchange for higher content quotas," he said. "But those quotas make it almost impossible for niche radio stations to survive." He noted that there currently isn’t a sufficient supply of Canadian French-language alternative rock to meet those quotas and that listeners will get a broader range of that genre of music over the Internet or on U.S. alternative rock stations beamed into Canada. Demers also blasted the commission for delaying its commercial radio policy review, which it had initially stated would be conducted every five years. A review was due in 2003, but last year CRTC chair Charles Dalfen stated there would be a delay as digital audio and satellite radio were still evolving (CCR Update, Nov. 19/03). Demers called on the CRTC to move ahead with the radio review, and not postpone it by three years as is the current rumour, to ensure that Canadian talent, particularly alternative rock musicians, are promoted, and to broaden the type of radio stations that are licensed, particularly in the Montreal market. Demers made the comments in conjunction with a request by Metromedia CMR Broadcasting Inc. to amend the broadcasting licence for its CHMP-FM (formerly CKOO-FM) radio station so that it can devote more than 50% of the broadcast week to spoken content, including information, public affairs, interviews, opinions and sports. Metromedia, which ran the station as an alternative rock option for three years, only wants to broadcast music on Saturdays and Sundays for about six hours a day. "We are dismayed that the Francophone alternative rock industry is suffering," said Demers. "An alternative rock station is needed in Montreal to add to diversity and develop talent." Metromedia responded to CRTC questioning about the station’s failure, saying that the format was given a "fair shake," but was unsuccessful in the Montreal market for a number of reasons, including that it had underestimated the impact of the Internet on its target audience of younger people. Another reason, Metromedia said, was that there is competition from an alternative rock station based in Burlington NY, and that another Montreal top 40 station airs some selections on the rock side. "The radio market cannot be as specialized in the Quebec market. We need hybrid stations to appeal to the public," responded Pierre Arcand, president of Quebec Radio for Corus Entertainment. He added that Corus was an expert in alternative rock stations, operating those formats in Toronto and London ON, and in Vancouver, but that Montreal was a different case. Metromedia is a wholly-owned subsidiary of Corus Entertainment, and 591991 B.C. Ltd (a wholly-owned subsidiary of Corus) is seeking authority to acquire the assets of various radio stations in Quebec in a deal with Astral Media (CCR Update, April 1/04). As a result, the CRTC decided to examine the implications of the proposed amendment to CHMP-FM’s licence conditions at the same time as it examined the radio ownership changes. A public hearing into the proposed radio swap occurred September 7-9 in Gatineau QC. Demers stated that he was not opposed to CHMP-FM’s requested change, but added that Genex has captured 60% of the 18 to 64 demographic in Quebec City with its alternative radio station CHOI-FM. "Young people have to be brought back to radio," he noted. Demers told CCR that although Genex doesn’t have a station in Montreal, his company takes every opportunity possible to support and promote the Quebec rock format. "We applied for a rock station in Montreal two years ago, but the commission refused us," he added. "We haven’t had much success with the CRTC, I think because we are a small broadcaster. They don’t listen to us. They are usually sleeping in front (of the hearing)." He said that Genex was not using the proceeding to take a shot at the CRTC’s radio policy and the delay in its review as an extension of CHOI-FM’s battle. "We were scheduled to appear at this hearing before our CHOI-FM licence was revoked," he said. Demers pointed out that CHOI-FM will broadcast until at least April 2005 thanks to a court ruling. The CRTC ordered CHOI-FM to cease operating on August 31, the day its broadcasting licence expired, but the Federal Court of Canada ruled last month that the station can continue broadcasting until an appeal of the CRTC decision is heard in court (CCR Update, Sept. 1/04). Demers said that a court hearing won’t be heard until March 2005, and that a decision probably won’t be released until the next month. "We are taking the CRTC to court because they went too far in their powers. By revoking our licence, they became involved in a battle that doesn’t involve them. Things like freedom of speech are included in criminal or civil laws, and not in the Broadcasting Act," he said. "We are asking: ‘Did the CRTC have the right to do what they did, and if they did, did they do it correctly?’ " Demers has also not seen eye-to-eye on the CHOI-FM matter with the Canadian Association of Broadcasters (CAB), which has refused to support Genex on the issue. He said that it is the duty of the association to promote not only the large broadcasting corporations but also its small members. "We’re now deciding if we should stay in (the CAB) or get out. It’s the role of the association to protect all of its members. But it took no position because some of its other members - namely Cogeco - were against us," he said. Some broadcasting experts say that CHOI-FM deserved to have its licence revoked because it did not abide by the conditions of its licence. Cogeco could not be reached for comment at press time.

Genex president calls on CRTC to come through now on radio policy review

Broadcast | September 10, 2004

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