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August 3, 2023 11:36 am  #1


One Station's Unusual Excuse For Not Paying Into CanCon Development

When the CRTC licences a radio station, the owners, no matter how small, are expected to pay a small amount of their earnings into something called the CCD - The Canadian Content Development fund, to encourage the production of Canadian programming or music. 

Even a place as small as CJRK-FM, a relatively low powered ethnic station at 102.7 in Scarborough, isn't exempt. East-FM as it's known, primarily serves the Tamil community in the city, but also broadcasts in 13 other languages and probably none of us here have ever listened to them - if you can even get them.

On Thursday, the CRTC renewed their licence for another seven years, but not before chastizing the place for not meeting its CCD funding obligations in the past - an omission they've since corrected.

All that explained, the reason the station said they missed the mark is something I've never heard before. From the CRTC press release:

"The licensee stated that it had difficulty meeting its CCD obligations because of the COVID-19 pandemic and the competition caused by HD Radio in the market. It added that this competition caused the station to lose many clients to unlicensed services."

I'm not saying their excuse wasn't true, but when was the last time you heard ANY Canadian radio station using HD competition as an excuse not pay its bills? I think that's a first for the country. 

 

August 3, 2023 11:40 am  #2


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

D. Trump should not be allowed to own & operate Cdn radio stations

 

August 3, 2023 12:01 pm  #3


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

RadioActive wrote:

I'm not saying their excuse wasn't true, but when was the last time you heard ANY Canadian radio station using HD competition as an excuse not pay its bills? I think that's a first for the country. 

They have a point, though.

The CRTC has left the sub-channels completely unregulated, and as a result the ethnic stations at 88.9 and 101.3 have launched multiple new brands and sold off the airtime. What were supposed to be two stations are now effectively eight. That's going to be a very challenging thing to compete against.

 

August 3, 2023 12:38 pm  #4


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

Ah yes, the old "because of covid" excuse... broadcasters' convenient excuse for everything lately. But obligations are obligations, and the CJRK people are full of crap. You, as a licensee, are required to fulfill your CCD obligations - THIS IS MANDATORY AND NOT OPTIONAL. And using covid and HD Radio as your excuses for not paying into CCD like you are required to are complete B.S. responses. Pay up, or shut down your station and hand the licence back to the CRTC.

Last edited by Forward Power (August 3, 2023 12:39 pm)

 

August 3, 2023 12:39 pm  #5


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

Possibly. But that brings us back to another question frequently debated here: how many people actually have access to HD Radio, know how to tune it in or even know it's in their cars if they do? Most broadcasters barely even mention its existence. 

     Thread Starter
 

August 3, 2023 12:48 pm  #6


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

RadioActive wrote:

Possibly. But that brings us back to another question frequently debated here: how many people actually have access to HD Radio, know how to tune it in or even know it's in their cars if they do? Most broadcasters barely even mention its existence. 

HD was perfect for the ethnic stations as their business model didn't need to prove any critical mass of listenership in the first place. It quadrupled their available inventory.

In hindsight, the CRTC's "wild-west" approach to HD may have been a mistake in that they didn't consider these stations, of which they are usually quite protective.

 

August 3, 2023 12:52 pm  #7


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

Forward Power wrote:

Ah yes, the old "because of covid" excuse... broadcasters' convenient excuse for everything lately. But obligations are obligations, and the CJRK people are full of crap. You, as a licensee, are required to fulfill your CCD obligations - THIS IS MANDATORY AND NOT OPTIONAL. And using covid and HD Radio as your excuses for not paying into CCD like you are required to are complete B.S. responses. Pay up, or shut down your station and hand the licence back to the CRTC.

On the HD argument, the CRTC caused this by breaking its own rules and leaving it unregulated. Regulations like CCD need market cap regulations to function. Either have both rules or neither.
 

 

August 3, 2023 1:29 pm  #8


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

I thought stations with annual revenues of $1,250,000 or less didn't need to pay into this.  And any station with revenues over this amount paid $1,000 plus one half of one percent on revenue over the $1,250,000.  Or has this been changed?  

 

August 3, 2023 1:46 pm  #9


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

It's an unusual thing with HD Radio in this country. I have a friend who's been on-air for over 40 years, mostly in Toronto. Back when the pandemic was just getting started, he bought a new car (so no supply chain issues.) 

One day I asked him off the top of my head if his new vehicle had HD in it.

He had no idea.

It never even occurred to him to check to see before I inquired. And this guy's a real pro and very smart. So you can imagine what the average person knows about the very existence of HD or even how to tune it in. Especially when most stations have given up mentioning its existence altogether. 

First it was AM Stereo. Then DAB. Now it's HD that appears to be a failure. You might think, without any real CRTC regulation, stations might want to take advantage and start separate HD stations that can get around all kinds of onerous government regs. and publicize those "bonus" outlets to the hilt. Instead, it's almost all simulcasts of AM on an FM signal. . 

HD sounds a little better but there's no compelling reason to tune any of those stations in. I give it an "F," for FM - and for Fail. What a waste of what could be so much more.

     Thread Starter
 

August 3, 2023 3:02 pm  #10


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

RadioActive wrote:

IYou might think, without any real CRTC regulation, stations might want to take advantage and start separate HD stations that can get around all kinds of onerous government regs. and publicize those "bonus" outlets to the hilt. Instead, it's almost all simulcasts of AM on an FM signal. . 
.

HD is incompatible with the traditional radio business model. We can’t even get reliable and consistent ratings for anything but the top third FM stations; getting anything for HD is impossible.

So AM simulcasts and brokered programming it is.

 

August 3, 2023 4:12 pm  #11


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

RadioAaron wrote:

RadioActive wrote:

IYou might think, without any real CRTC regulation, stations might want to take advantage and start separate HD stations that can get around all kinds of onerous government regs. and publicize those "bonus" outlets to the hilt. Instead, it's almost all simulcasts of AM on an FM signal. . 
.

HD is incompatible with the traditional radio business model. We can’t even get reliable and consistent ratings for anything but the top third FM stations; getting anything for HD is impossible.

So AM simulcasts and brokered programming it is.

HD stations shouldn't be following the traditional radio business model.  Maybe that's why the CRTC gave broadcasters carte blanch to do what they want.  But no, the conglomerates that always want less regulation don't know what to do with it anyway. 

Nice to see it is smaller and ethnic stations that are more nimble and creative and actually are taking advantage of the opportunity. 

At the very least stations can use the separate HD stations to upsell clients or do some bonusing.  

Offering separate and different programming and actually promoting it isn't rocket science.  Typically the big guys can't be bothered.  And let's blame the CRTC for allowing this layer of new radio to be unregulated....Please..

 

 

August 3, 2023 4:36 pm  #12


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

paterson1 wrote:

Nice to see it is smaller and ethnic stations that are more nimble and creative and actually are taking advantage of the opportunity. 
 

Have you listened to any of them? They're basically non-stop commercials. It's not creative; it's taking advantage of being able to hoard inventory and shut out competitors.

If an english-language broadcaster did this we'd be decrying it as another sign of end-of-days.

paterson1 wrote:

=12pxOffering separate and different programming and actually promoting it isn't rocket science.  Typically the big guys can't be bothered
 

It's not rocket science, but it's pointless.

paterson1 wrote:

=12pxAnd let's blame the CRTC for allowing this layer of new radio to be unregulated....Please..
 

It is literally a significant reason for CJRK's financial situation.


 

 

August 3, 2023 4:47 pm  #13


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

RadioActive wrote:

But that brings us back to another question frequently debated here: how many people actually have access to HD Radio, know how to tune it in or even know it's in their cars if they do? Most broadcasters barely even mention its existence. 

I just took delivery of a new Nissan SUV (top level model)

It does not have HD capability



 

 

August 3, 2023 6:59 pm  #14


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

Whatever happened to radio stations that broadcast on an FM subcarrier? 

In order to receive the station, you had to purchase a subcarrier box that would "decode" the RF information and bring you the station.

I know at least one Greek radio station started this way.
 

 

August 3, 2023 7:41 pm  #15


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

OK,, I have some "baseball insider" knowledge here.  This is the second station to operate on the frequency, and provide predominately Thamil language programming.  The first operator was clueless, and with the help of his broadcast consultant lost the licence.  The first operator had serious financial and compliance problems.  There were significant signal problems reaching the Thamil community in Scarborough.  As many readers know the frequency is saturated with stations in within 100 miles of Toronto. The current operator "won" the licence in a competitive bidding war.  To be blunt he bet the farm, on CCD financial expenditures.  But he also bid for and took up the licence, notwithstanding a lot of other market changes, (all legal) with other ethnic broadcasters who have great signals....who target many of the same ethnic groups that he serves.  HD is just a red herring.  If you drill down to the program schedules of higher powered ethnic stations around the GTA, and the ethnic groups whom they target, that's the real issue.  Their signals are available in-car, in-home throughout Scarborough and the rest of the GTA, where the S. Asian population resides.  One more thing when he bid for the licence,  if he had credible regulatory counsel or consultants, he would have known that the "licensed" high powered ethnic stations can change their ethnic programming mix, at will, without CRTC approval.  That's their right,  Some of the older stations have no restriction on the %age of airtime that they must devote to a target ethnic or "language" group.  For example, Fairchild has an obligation to serve the Chinese population, but it is also obligated to air a significant amount of ethnic programming directed to other ethnic groups.  The "big signal" stations use that airtime to serve the most viable ethnic communities, or sell off the airtime to brokers.  The brokers will pay hundreds of dollars an hour to reach their (own) target audience.  There is no regulation by the CRTC of brokers or brokerage.  So from day 1, he should have known that others could and would devote airtime to Thamil language programming on superior frequencies, without regulatory approval.  that's the way it works - legally speaking.  The legacy ethnic stations would only be paying CCD and CFRC fees on their actual revenues, which is regulated and relatively low.  So he has to sell a lot of airtime, at a dollar-a-holler just to satisfy the CCD chain around his neck.

Sometimes applicants who out-bid others, for inferior frequencies have no-one to blame for their zeal and unreal financial expectations.  If memory serves me well, the owner of CJRK may have owned a 67khz subcarrier station at one time.  That's an unregulated business - has been for decades.  It is at best a niche business.   One's acumen operating a 67khz subcarrier does not carry over to operating a regulated FM station with overly high CCD financial commitments.  Others may disagree but HD is not the culprit, or the reason for his failure to achieve his revenue projections with may I say, a really crappy signal

Last edited by tvguy (August 3, 2023 7:50 pm)

 

August 3, 2023 8:38 pm  #16


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

The owner agreed to pay $120,000 over seven years into the CCD. As noted, they missed in year 6, but eventually made it up, allowing the CRTC to renew the licence. Here's how it breaks down:

Year 1 $3,000
Year 2 $5,500
Year 3 $17,500
Year 4 $21,500
Year 5 $23,500
Year 6 $24,500
Year 7 $24,500

     Thread Starter
 

August 3, 2023 8:59 pm  #17


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

Even with a $120K total commitment, that’s a lot of ads to support the expense.  Haven’t seen their rate card (if they publish one) but the ad rates for GTA ethnic stations have cratered during the last few years.  I’d bet that they only get a few bucks an ad on this station given their signal limiitations.

 

August 4, 2023 10:39 am  #18


Re: One Station's Unusual Excuse For Not Paying Into CanCon Development

It's interesting that ISED has published for comment revisions to Broadcast Procedures and Rules, Part 3, which now includes the methodology for calculating HD (IBOC) interference.  In other words, it is no longer going to be treated as an "experimental" technology, after all these years.  That suggests that the CRTC will no longer be able to duck the regulatory challenge, as they have up until now by virtue of the "experimental" designation.
CJRK's problem is typical of what happens during the CRTC "beauty contest" licensing process.  The applicants try to outdo each other, and CCD commitments are a big part of it. Couple excessive commitments with overly-optimistic revenue projections, and the end result is disaster. This issue existed pre-Covid.  CJRK was very lucky get a full term license renewal, given what other non-compliant licenses have been dealt in the past.