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CRTC Approves New FM Station in Orangeville

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    2014-07-18

    The CRTC has approved an application by My Broadcasting for a broadcasting licence to operate an English-language commercial FM radio station in Orangeville. The new station will provide Orangeville and its residents with a dedicated local radio service that will fulfill specific requirements relating to local Orangeville programming, including the broadcast of announcements that are reflective of its standing as a community distinct and separate from Toronto.

    The proposed station would operate at 101.5 MHz (channel 268A) with an average effective radiated power (ERP) of 338 watts (maximum ERP of 625 watts with an effective height of antenna above average terrain of 55.1 metres).

    The station would offer an adult-contemporary/gold music format, and would provide a unique blend of music, local flavour and local news. Although the station would specifically target adults 18 to 64 years of age, it would provide service to all residents of Orangeville and the surrounding area, with a focus on local content specifically for that community.  The applicant proposed to broadcast 100 hours of local programming per broadcast week. This would include 14 hours of spoken word programming, of which five hours would be news.

    MBC stated that its proposed station would provide Orangeville with its only local radio service. In this regard, it argued that CIDC-FM Orangeville, which is owned and operated by Dufferin Communications Inc.  and has been licensed to serve Orangeville for some time, “has migrated both its studio and transmitter out of the community in order to serve the more lucrative Toronto market.” As part of its application, MBC provided letters of support from business owners and consumers, as well as from the Mayor of Orangeville and the local Member of Provincial Parliament, who stated that Orangeville does not currently have a radio station dedicated to providing local news and information.

    To support the proposed station’s local focus, MBC committed to make regular announcements throughout the broadcast day identifying the station as a local service in Orangeville, and refrain from broadcasting station identification announcements containing exclusive references to the City of Toronto. It also committed to include references to Orangeville and Dufferin County in each traffic and weather report. MBC stated that it would adhere to these commitments by condition of licence.

    MBC also committed to devote, by condition of licence, 38% of its content category 2 (Popular Music) musical selections broadcast during each broadcast week and between 6 a.m. and 6.p.m. from Monday to Friday to Canadian selections, which exceeds the minimum regulatory requirement set out in the Radio Regulations.

    In addition, MBC committed to exceed the minimum required contribution to Canadian content development.  Specifically, it committed to devote, by condition of licence, over and above the basic annual contribution to CCD, a total of $3,000 to CCD over six consecutive broadcast years ($500 per broadcast year), beginning the second year of the station’s operation. It noted that a portion of its contribution would be directed to a local Orangeville music event that provides an opportunity to showcase local artists.

    The Commission received several interventions in support of the application. It also received interventions opposing the application from Bayshore Broadcasting Corporation, Durham Radio Inc., Mr. Frank Rogers, owner of 2188301 Ontario Corporation, the licensee of CFAO Alliston, Dufferin (of which Evanov Radio Group is the parent and controlling entity), and an individual. Finally, the Commission received comments from the Ministry of Community Safety and Correctional Services, Province on Ontario, the Diversity Emerging Music Collective, and an individual. MBC replied to each of the opposing interventions.

    The intervention from the Province of Ontario related to the participation of the proposed station in its jurisdiction in the National Public Alerting System (NPAS).  The Commission proposed regulations that would require the participation of broadcasters in the NPAS by 31 December 2024. Therefore, it will not impose conditions of licence requiring the participation of broadcasters in the NPAS at this time. However, the Commission continues to expect all licensees to voluntarily participate in the NPAS so that Canadians receive timely warnings of imminent perils.

    After examining the application in light of applicable regulations and policies, the Commission considers that the issues it must address are the following:

    •whether it should have issued a call for applications for a broadcasting licence to operate a radio station in Orangeville;

    •the potential negative impact of the proposed station on other radio stations in the region;

    •whether the proposal represents an appropriate use of spectrum; and

    •programming diversity and local reflection.

    Certain interveners submitted that the Commission should have issued a call for applications for radio stations to serve Orangeville. Dufferin, for example, argued that approval of MBC’s application would violate established Commission policy regarding the availability of frequencies in a market. Durham expressed the concern that MBC’s application was being considered as a “first service” application when there was already a radio station licensed to serve Orangeville (i.e., CIDC-FM). It noted its intention to respond to a call for applications should one be announced.

    MBC submitted that CIDC-FM had repositioned itself as “Toronto’s heritage CHR (contemporary hit radio) station.” It also argued that since frequencies other than 101.5 MHz are available in the Orangeville market, a call for applications would not be appropriate. Finally, it cited cases where applicants had proposed to operate radio stations that were designed to serve smaller communities embedded within larger census metropolitan areas (CMAs), and were granted radio broadcasting licences in the absence of a call.Footnote 1 In this regard, MBC compared Orangeville to St. Thomas, Ontario, noting that the latter used to have its own local radio station, which was later moved to London, Ontario. It stated that when it subsequently applied for a broadcasting licence to operate a radio station to serve St. Thomas, it was awarded the licence without a competing call for applications. MBC submitted that the present application should be treated in a similar manner.

    Moreover, CIDC-FM’s financial performance reflects a profile of a station that is competing in the Toronto radio market, and that the station draws little local revenue from Orangeville. In addition, after examining a portion of CIDC-FM’s programming in January 2024, the Commission is of the view that the station has oriented itself as a Toronto radio station, rather than an Orangeville radio station.  Consequently, the Commission is satisfied that a call for applications is not necessary in the present circumstances.

    The Commission notes the concerns raised by Bayshore in regard to its future radio station in Shelburne, Ontario, and by Dufferin in regard to CIDC-FM, and has considered the potential negative impact of the proposed station on those stations.

    Bayshore was granted a broadcasting licence to operate a radio station in Shelburne. It noted that the broadcast contours of MBC’s proposed station fall largely within the coverage area of the Shelburne station. According to Bayshore, the small amount of advertising revenue that it would generate from Orangeville, given the limited availability of its future station’s signal in that city (which it estimated to be between 10 and 15% of the station’s revenues), would be lost to any new station operating there. It further expressed concern over the potential for over-licensing in radio markets and the negative impact that this might have on the quality of service to local communities.

    Noting that the primary contour (i.e., 3mV/m) of a station defines its radio market, MBC replied that the primary contours of its proposed station and of the future Shelburne station do not overlap. It argued that even under a worst-case scenario, the impact on Bayshore’s future station would only amount to about $15,000. In this regard, it stated that “competition encourages improved radio services and a wider diversity of choice for the consumer and listener base.”

    The Commission notes that Orangeville and Shelburne represent two distinct and separate radio markets. Since the primary contours of the two stations would not overlap, any impact that MBC’s proposed station would have on Bayshore’s future station would take place outside of the latter’s principal market of Shelburne. In regard to the secondary contours, there would only be a limited population overlap resulting from Bayshore’s station reaching Orangeville. As such, any revenue loss would be from revenue derived from coverage areas that Bayshore would not be licensed to serve with its future station. Consequently, the Commission finds that MBC’s proposed radio station would not have a significant negative financial impact on Bayshore’s future Shelburne station.

    Dufferin submitted that approval of MBC’s application “would cause significant harm to the quality of the service that CIDC-FM is able to provide to this small community.” It further submitted that the combination of MBC’s Orangeville and Alliston, Ontario proposals would, if approved, “create a superstation that would be spread over a large geographical area.”

    Dufferin disagreed with MBC’s allegations that CIDC-FM had essentially abandoned the Orangeville market by re-orienting its programming towards the Greater Toronto Area. It argued that the inclusion of Orangeville as part of the Toronto CMA (as defined by Statistics Canada), a geographical definition used, notably, by the Broadcast Bureau of Measurement (BBM) and the Financial Post’s Canadian Demographics, has forced CIDC-FM to compete with all other Toronto radio market stations to remain profitable and continue to provide local programming to Orangeville residents.

    In reply, MBC reiterated that CIDC-FM has moved away from serving Orangeville, and that it is repositioning itself as “Toronto’s heritage CHR station.” In regard to the claim that CIDC-FM needs to compete with other Toronto stations, MBC suggested that the station’s advertising rates were more in line with rates charged by stations competing within the Toronto radio market, and were too expensive for smaller Orangeville businesses to pay.

    The Commission is of the view that CIDC-FM’s financial performance and programming suggest that the station targets the Toronto radio market rather than the Orangeville radio market. Consequently, the Commission finds that MBC’s proposed radio station would not have a significant negative financial impact on CIDC-FM.

     In the Commission’s view, the proposed station would provide programming diversity to the Orangeville radio market by offering another choice of music for listeners. It further notes MBC’s commitment to local reflection, based on its proposal regarding the broadcast of local programming and its commitments to identify the station as a local Orangeville service, to refrain from making station identification announcements that contain exclusive references to the City of Toronto, and to include both Orangeville and Dufferin County in traffic and weather reports.

    Given the limited range that the station’s signal will have due to the proposed technical parameters, the fact that it will be the only station directly serving the Orangeville community, and the standard condition of licence, requiring radio stations to broadcast a minimum of 42 hours of local programming per broadcast week, the Commission does not consider it necessary to impose a condition of licence requiring MBC to provide the proposed 100 hours of local programming per broadcast week.


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