Here is the CRTC reasoning behind denying the request to end speciality music content:
With respect to the requested licence amendments to remove the requirements regarding the broadcast of category 3 music, including Canadian special interest musical selections, the Commission acknowledges that these amendments could provide some flexibility to the station and allow it to better compete in the Vancouver market. However, the Commission considers that factors such as the relatively modest level of experience of the station’s initial operator (Shore Media Group), its standing as a stand-alone market operator and the competitive nature of the Vancouver radio market have also contributed to the financial difficulties encountered by the station. The Commission also notes that Newcap was aware of the station’s financial situation when it purchased the station. Considering that the station only began operations in June 2009 and has changed ownership several times, the Commission is of the view that it may have lacked the necessary programming continuity and that Newcap’s experience as an established radio operator will provide for operational stability and programming continuity at the station.
Further, the Commission notes that the licence for the station was granted as part of a highly competitive process. The Commission granted the licence to Shore Media Group in Broadcasting Decision 2008-117 based in part on the quality of the application proposed, including the requirements to ensure that 15% of all music aired weekly is drawn from category 3 and to exceed the minimum Canadian content levels for such music set out in the Radio Regulations, 1986 (the Regulations). Further, the Commission notes that it subsequently amended the Regulations to require all commercial stations to devote 20% of their weekly selections from subcategory 34 (Jazz and blues) to Canadian music, in accordance with paragraph 94 of the Commercial Radio Policy 2006 (see Broadcasting Public Notice 2008-67).
Given that the above-noted programming commitments were factors in the original licensing decision, the Commission considers that granting the requested amendments under the current circumstances would call into question the integrity of the licensing process.
Finally, the Commission notes that it is its usual practice to deny requests to be relieved from a requirement where the licensee is in non-compliance with this requirement as in the present case and that the applicant has not provided a compelling case for the Commission to deviate from that practice in this case.
In light of all of the above, the Commission denies the requested licence amendments.
Here are the non-compliances cited:
In Broadcasting Notice of Consultation 2014-143, the Commission indicated that the licensee appeared to have failed to comply with its condition of licence relating to over-and-above contributions to Canadian content development (CCD) for the 2008-2009 and 2009-2010 broadcast years. Specifically, the station incurred a $50,000 shortfall in its required CCD contribution in the 2008-2009 broadcast year, as well as a $200,000 shortfall in the required payment to FACTOR in the 2009-2010 broadcast year. The CCD shortfalls, which occurred prior to Newcap’s purchase of the station, were fulfilled in the 2011-2012 broadcast year. The licensee stressed that it had stringent CCD procedures to ensure compliance with these obligations going forward.
In light of the above, the Commission finds the licensee in non-compliance with its condition of licence relating to over-and-above CCD contributions for the 2008-2009 and 2009-2010 broadcast years.
In its notice, the Commission also noted that the licensee appeared to have failed to comply with its condition of licence concerning the broadcast of category 3 music by devoting only 14.1% of its musical selections to such music in the broadcast week of 8 to 14 September 2013. The licensee stated that the non-compliance was the result of a software error and committed to review the station’s category 3 music library on a weekly basis to ensure that all selections qualify.
In light of the preceding, the Commission finds the licensee in non-compliance with its condition of licence concerning the broadcast of category 3 music for the broadcast week of 8 to 14 September 2013.