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Route reference: 2012-126
Additional references: 2012-126-1, 2012-126-2 and 2012-126-3
Ottawa, 11 September 2012
Various applicants
Toronto, Ontario
The application numbers are set out in the decision.
Public hearing in Toronto, Ontario
7 May 2012
The Commission approves, by majority decision, the application by Rock 95 Broadcasting Ltd. for a broadcasting licence to operate a new commercial FM radio station in Toronto.
The Commission denies the other applications relating to broadcasting licences for radio stations in Toronto.
Introduction1. At a public hearing which began on 7 May 2012 in Toronto, the Commission considered 17 applications for new radio stations in Toronto. The Commission also considered applications for technical changes, as well as for new transmitters. Details of the applications are set out in Appendix 1 to this decision.
2. The Commission notes that all the applications were for the same FM frequency, 88.1 MHz.
3. At the same hearing, the Commission also examined applications for new radio services in Brampton and Markham. Its decision on these applications is found in Broadcasting Decisions 2012-486 and 2012-487, also published today.
4. As part of this proceeding, the Commission received and considered interventions with respect to each application. The public record for this proceeding is available on the Commissionâs website at www.crtc.gc.ca under “Public Proceedings.”
5. After reviewing the positions of the parties, the Commission is of the view that the primary issues to be considered are:
6. According to Statistics Canada, the population of the Toronto central market area (CMA), Canadaâs largest, was 5.6 million in 2011, which represents an increase of 9.2% from its population of 5.1 million in 2006. Moreover, the Conference Board of Canada (CBOC) projects that Torontoâs population will reach 6.4 million by 2016, a further increase of 14%.
7. The Commission notes the highly diverse nature of the Toronto market as, according to Statistics Canada 2006 Census data,1 visible minorities account for approximately 43% of Torontoâs population, with the South Asian and Chinese populations representing the CMAâs largest visible minority communities, accounting for 13.5% and 9.6% of its total population respectively. Furthermore, according to Statistics Canada, robust population growth within these communities is expected to contribute to continued growth in the proportion of visible minorities in the Toronto market.
8. The Commission also notes the results of the Statistics Canada 2006 Census relating to the French-language population in the Toronto metropolitan area.2 According to this survey, 72,590 people reported French as their mother tongue, 110,680 using French as their first official language, 35,010 speaking French the most frequently at home and 422,940 being Francophiles.
9. The Toronto radio market is Canadaâs largest market in terms of total revenues. It is currently served by 40 radio stations, including 20 commercial stations, 9 commercial ethnic stations, 4 public stations, 3 campus stations, 1 ethnic community station, 1 French-language community station, 1 Native station and one Other Special FM station (CJRT-FM). In 2011, Torontoâs commercial radio market, which then comprised 28 stations (including ethnic commercial stations), recorded total revenues of $272 million, representing a solid increase of 8% relative to the prior year. Furthermore, on an aggregate basis, the Toronto commercial radio market continues to record strong profitability, with a profit before interest and taxes rate of 32% in 2011, up slightly from 30% in 2010.
10. In terms of the economic performance of the market, according to the CBOC, retail sales in Toronto grew at a compound annual growth rate (CAGR) of 5.5% between 2009 and 2011, outpacing retail sales growth recorded in Ontario (4.2%) and Canada (4.6%) over the same period. Furthermore, the CBOC estimates that Torontoâs retail sales will continue to grow at a CAGR of 4.5% between 2011 and 2016. While gross domestic product (GDP) growth in Torontoâs economy slowed between 2009 and 2011, it nonetheless grew at a rate of 3.1%, surpassing the 2.8% growth rate recorded for the rest of Canada. Furthermore, the CBOC estimates that Torontoâs GDP will continue to grow at a CAGR of 3% from 2011 to 2016, exceeding estimates for both Ontario and Canada over the same period.
11. Based on the evidence that the Toronto radio market is generally healthy and based on the positive economic outlook, the Commission is satisfied that the Toronto radio market could support the licensing of a new radio station.
Assessment of the applications12. Having determined that there is room in the Toronto radio market for an additional radio station, the Commission considered the applications for various types of services and technical amendments in light of the factors relevant to the evaluation of the applications outlined in the Call, which include the following factors:
13. With respect to the proposed technical amendments, the Commission also evaluated the technical and economic need.
14. Having considered all of the applications in light of the above and having considered all of the policy objectives set out in section 3 of the Broadcasting Act (the Act), the Commission finds that the proposal by Rock 95 Broadcasting Ltd. (Rock 95) best meets the needs of the Toronto radio market. In the Commissionâs view, Rock 95âs innovative proposal for an eclectic, Indie music format FM station focusing on emerging, independent artists from Canada and targeting a core audience of adults between the ages of 18 and 34 will add to the musical diversity of the market. Further, as a new entrant into the market, Rock 95 will enhance the diversity of news voices, while benefitting from synergies with its two stations in Barrie, CFJB-FM and CKMB-FM.
15. The applicant committed to devote, by condition of licence, 40% of its musical selections from category 2 (Popular Music) to Canadian selections over the broadcast week and in the evening broadcast period. Rock 95 further committed to devote, by condition of licence, 60% of these Canadian selections to music by emerging artists, the highest level of all applicants. The station would also broadcast 126 hours of local programming per broadcast week, including 10 hours and 48 minutes of spoken word programming, of which 2 hours and 50 minutes would consist of pure news.
16. All commercial radio licensees must adhere to the requirements relating to contributions to Canadian content development (CCD) set out in section 15 of the Radio Regulations, 1986, as amended from time to time. The Commission notes that Rock 95 made a commitment to exceed the minimum contribution to CCD. Specifically, Rock 95 committed to devote by condition of licence, over and above the basic annual contribution to CCD, a total of $2,045,000 to CCD over seven consecutive broadcast years upon commencement of operations. At least 20% of this amount will be devoted to FACTOR on an annual basis. The remainder will be directed to eligible initiatives as follows over seven years:
17. According to Statistics Canada, the top 10 largest Canadian cities in 2006 were the following: Toronto, Montréal, Vancouver, Ottawa-Gatineau, Calgary, Edmonton, Québec, Winnipeg, Hamilton and London. Among those cities, Toronto, the largest, and Hamilton, ranked in ninth place, are the only ones where the Canadian Broadcasting Corporation (CBC) Première Chaîne service is not broadcast on the FM band. In the city of Montréal, the minority English-language community has access to an FM frequency, via CBME-FM, to counter the challenges of broadcasting on the AM band in an urban area.
18. With respect to the applications by La Coopérative Radiophonique de Toronto inc. (La Coopérative) and the CBC, the Commission has considered the need to serve the interests of the French-language minority community in Toronto pursuant to its obligations under the Act and section 41 of the Official Languages Act. As the Commission has previously noted, this statutory context requires it to balance all of the objectives of the Act, including the objective to take into account the needs of the French-language minority community.3
19. In this instance, the Commission notes that La Coopérative and the CBC already serve the French-language minority community in Toronto and that their applications proposed to improve the coverage of their services. In this context, the Commission considers that on balance the objectives of the Act are better fulfilled by enhancing diversity of voices through the introduction of a new service to the market rather than by increasing the coverage of existing stations already serving the French-language minority community in Toronto.
20. The Commission notes that new broadcasting technologies, such as digital radio (commonly referred to as HD Radio in the U.S.), could enable the CBC to offer additional services to Francophones and Francophiles in Toronto. Cable distribution and broadband Internet service also offer alternative means to access CBC services, but they may be more costly choices for some consumers due to the need for a subscription.
21. The Commission also notes that it carefully considered the multicultural and multiracial nature of Toronto, which was clearly demonstrated by the record of this proceeding. The Commission notes that the Toronto marketâs diverse population is currently well served by the existing nine commercial ethnic stations and one community ethnic station, which represent 25% of the stations operating in the market.
Conclusion22. Based on all of the foregoing, the Commission approves, by majority decision, the following application for a broadcasting licence to operate an English-language commercial FM radio programming undertaking in Toronto:
Rock 95 Broadcasting Ltd.
Application 2011-1637-7, received 19 December 2011
23. The terms and conditions of licence for this new service are set out in Appendix 2 to this decision.
24. In light of the above, the Commission denies the 21 remaining applications for broadcasting licences to operate radio programming undertakings in Toronto or for technical changes or the addition of new transmitters to existing stations in Toronto, as set out below:
2308739 Ontario Inc.
Application 2011-1626-0, received 19 December 2011
7954689 Canada Inc.
Application 2011-1617-9, received 18 December 2011
Canadian Broadcasting Corporation
Application 2011-1619-5, received 19 December 2011
Dufferin Communications Inc.
Application 2011-1159-1, received 3 August 2011
Durham Radio Inc.
Application 2011-1633-5, received 19 December 2011
Family FM Inc.
Application 2011-1634-3, received 19 December 2011
Frank Torres, on behalf of a corporation to be incorporated
Application 2011-1628-6, received 19 December 2011
Intercity Broadcasting Network Inc.
Application 2011-1631-9, received 19 December 2011
La Coopérative Radiophonique de Toronto inc.
Application 2011-1652-5, received 19 December 2011
Larche Communications Inc.
Application 2011-1622-8, received 19 December 2011
Michael Wekerle, on behalf of a corporation to be incorporated
Application 2011-1630-2, received 19 December 2011
MTSD Broadcast Inc.
Application 2011-1640-1, received 19 December 2011
MZ Media Inc.
Application 2011-1614-5, received 17 December 2011
Newcap Inc.
Application 2011-1615-3, received 16 December 2011
Radio 1540 Limited
Application 2011-1638-5, received 19 December 2011
Radio Ryerson Inc.
Application 2011-1635-1, received 19 December 2011
Sivakkumaran Sivapathasundaram, on behalf of a corporation to be incorporated
Application 2011-1656-7, received 19 December 2011
Stanislaus Antony, on behalf of a corporation to be incorporated
Application 2011-1654-1, received 19 December 2011
Tosan Lee, on behalf of a corporation to be incorporated
Application 2011-1616-1, received 16 December 2011
Trust Communications Ministries
Application 2011-1573-3, received 2 December 2011
WorldBand Media Inc., on behalf of a corporation to be incorporated
Application 2011-1657-5, received 19 December 2011
Secretary General
Related documents*This decision is to be appended to the licence.
Issuance of the broadcasting licence to operate an English-language commercial FM radio programming undertaking in Toronto, Ontario
The licence will expire 31 August 2019.
The station will operate at 88.1 MHz (channel 201A) with an average effective radiated power (ERP) of 532 watts (maximum ERP of 875 watts with an effective height of antenna above average terrain of 328.4 metres).
The Commission reminds the applicant that pursuant to section 22(1) of the Broadcasting Act, no licence may be issued until the Department of Industry notifies the Commission that its technical requirements have been met and that a broadcasting certificate will be issued.
Furthermore, the licence for this undertaking will be issued once the applicant has informed the Commission in writing that it is prepared to commence operations. The undertaking must be operational at the earliest possible date and in any event no later than 24 months from the date of this decision, unless a request for an extension of time is approved by the Commission before 11 September 2014. In order to ensure that such a request is processed in a timely manner, it should be submitted at least 60 days before this date.
1. The licensee shall adhere to the conditions set out in Conditions of licence for commercial AM and FM radio stations, Broadcasting Regulatory Policy CRTC 2009-62, 11 February 2009.
2. The licensee shall, as an exception to the percentage of Canadian musical selections set out in sections 2.2(8) and 2.2(9) of the Radio Regulations, 1986 (the Regulations):
a) devote, in each broadcast week, a minimum of 40% of its musical selections from content category 2 (Popular Music) to Canadian selections broadcast in their entirety;
b) devote, between 6 a.m. and 6 p.m., in any period beginning on Monday of a week and ending on Friday of the same week, a minimum of 40% of its musical selections from content category 2 (Popular Music) to Canadian selections broadcast in their entirety; and
c) devote a minimum of 60% of the Canadian musical selections required under a) and b) above to musical selections by emerging Canadian artists.
In order to facilitate verification of compliance with this condition of licence, the licensee must specify on the music lists it provides to the Commission pursuant to section 9(3) of the Regulations:
i) those musical selections it categorizes as being by an emerging Canadian artist; and
ii) for each musical selection so categorized, the additional following information where applicable:
For the purposes of this condition, the terms “broadcast week,” “Canadian selection,” “content category” and “musical selection” shall have the same meaning as that set out in the Regulations. The term “emerging Canadian artist” shall have the meaning set out in Definition of emerging Canadian artists on commercial radio, Broadcasting Regulatory Policy CRTC 2011-316, 12 May 2011.
3. In addition to the required basic annual contribution to Canadian content development (CCD) set out in section 15 of the Radio Regulations, 1986, as amended from time to time, the licensee shall upon commencement of operations make a contribution of $2,045,000 over seven consecutive broadcast years to the promotion and development of Canadian content, to be allocated each year as follows:
Of these amounts, the licensee shall allocate at least 20% to FACTOR on an annual basis. The remainder of this additional CCD contribution shall be allocated to parties and initiatives fulfilling the definition of eligible initiatives set out in paragraph 108 of Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006.
The Commission expects the licensee to reflect the cultural diversity of Canada in its programming and employment practices.
In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
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