CRTC should review radio ownership policy as AM declines, Bloc MP says

MONTREAL—The CRTC should review its common ownership policy for radio to better reflect the declining importance of AM radio, Bloc Québécois MP and party heritage critic Carole Lavallée told the commission Wednesday. “When you created your common ownership policy, why did you separate it into AM and FM stations? It’s not because one is scratchier than the other. It’s probably because AM was more talk and FM was more music,” Lavallée said. “Now, radio has changed, FM has changed, and some of its stations are becoming talk. I think we should retain the law’s spirit, but I wouldn’t keep it as is. I’d review the policy.” The CRTC is considering whether to grant Cogeco Inc. an exception to its common ownership policy as the company acquires Corus Entertainment Inc.’s 11 Quebec radio stations. The commission held two days of public hearings on the purchase, which wrapped up Wednesday in Montreal. Cogeco is asking the commission for a regulatory exception that would allow it to own three FM stations and one AM in Montreal: music stations CKOI-FM and CFQR-FM and talk-radio stations CKAC-AM and CHMP-FM. According to the CRTC’s common ownership policy, last amended in 1998, radio players in markets with eight stations or more can own or control up to two AM and two FM stations broadcasting in the same language. In small markets, players can own and control up to three stations operating in the same language and a maximum of two stations per frequency band. Since 1998, the commission has granted three exceptions to the policy. The CRTC would have to consult with industry and other stakeholders before amending the policy. Lavallée told the commission that the Bloc Québécois supports Cogeco’s request for an exception because one of the FM stations will follow the talk-radio format. The Bloc Québécois believes the CRTC’s decision should be followed up with a study on the common ownership policy, she said. “When the CRTC’s policy says one cannot own more than two FM stations in Montreal, it means, ‘Not more than two music stations,’” Lavallée told The Wire Report in an email following the hearing. “I asked that the commission reply positively to Cogeco’s request by applying the spirit of the policy, and by revisiting it so it no longer is based on AM and FM, which will become obsolete when radio is digitized, and is instead talk and music radio." Cogeco vice-president of corporate affairs Yves Mayrand told The Wire Report following the hearing Wednesday that although it is possible for the commission to open a proceeding on the policy, the company is only seeking a single exception, not a study. CRTC commissioner Louise Poirier expressed concern with the proposal, saying it would not reflect the situation outside Quebec, where AM stations are more popular than in the province’s distinct broadcasting market. In January, Montreal saw the closure of two unprofitable Corus stations operating on the AM dial. Although both stations originally followed the talk-radio format, one of the stations switched to all-music in 2008. According to Statistics Canada, of the 151 Canadian stations operating on the AM band in 2009, 51 per cent were profitable. Since 2007, 23 AM stations closed or migrated. New requests for AM band operating licences are also increasingly rare, the CRTC told The Wire Report in February. Astral Media Inc.'s manager of corporate communications Hugues Mousseau told The Wire Report via email that the company told the commission in 2006, during a review of its common ownership policy, that it supports loosening the regulation. But no changes were made to the policy after the review. Mousseau said that if the CRTC is considering amending the policy, it must do so as part of a new proceeding. “What Astral is saying today is that cannot favour a player by granting an exception to the policy for the francophone market as part of a hearing on a commercial transaction,” he wrote. “If the CRTC judges it right to review its common ownership policy, it must be done as part of a new hearing.” Mousseau said Astral supports reviewing the future of the AM band if a new proceeding is opened, but cautioned that the band is showing signs of success in English Canada and in the United States, and would require a broad review. Evanov Radio Group, a Toronto-based independent radio broadcaster that operates nine stations, also expressed concern with the impact that a modification of the policy could have on the Canadian broadcasting system. The company opposes Cogeco’s request for the regulatory exception. Evanov Radio vice-president Carmela Laurignano told the commission Wednesday that asking for a review of its common ownership policy is like “creative accounting.” Following her appearance at the hearing, Laurignano told The Wire Report that opening up the policy would lead to more concentration of ownership. “Concentration of ownership means that there are fewer and fewer owners, fewer and fewer resources. You’re more likely to hear the same news across all the stations … That’s really the consideration,” she said. Laurignano told the commission that granting Cogeco the exception would also open the floodgates for other parties to ask for their own exceptions. “A lot of eyes are watching . We know there are lobby groups that would want to revisit the common ownership policy and this would look like a precedent. Any of the big companies can come to you and claim that any number of their stations is suffering … We shouldn’t be so naïve to think that’s the case,” she said. Sean Moreman, Evanov Radio legal counsel, told the commission Wednesday that it would be better off to stick to its policy than granting Cogeco an exception. “We think a more rigid approach, when it comes to common ownership, is more beneficial than finding ways to make any market unique when it comes to applying the rule,” he said. Moreman said the commission’s policy ensures the efficient use of airwaves. “It may be the case that they want to use FM to broadcast what could very well be put on an AM signal. It’s our position that another broadcaster could better use the FM ,” he said. On Tuesday, CRTC commissioner Michel Morin suggested Cogeco convert one of its Montreal stations to the AM band to meet the commission’s policy. But Cogeco Radio vice-president Richard Lachance rejected the proposal, arguing that the AM band is losing popularity. CTVglobemedia, which operates 34 radio stations across Canada, and Rogers Communications Inc., which operates 51 stations, declined to comment on the Bloc’s proposal. kfournier@thewirereport.ca

CRTC should review radio ownership policy as AM declines, Bloc MP says

Broadcast | September 29, 2010

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us