LG 104.3 denied change of license status

LG 104.3 denied change of license status

Postby radiofan » Thu Aug 14, 2014 9:13 am

The CRTC has renewed the broadcasting license for Newcap's CHLG [LG 104.3] but it has denied the request to remove the specialty license requirements due to a number of factors.

Read the decision here: http://www.crtc.gc.ca/eng/archive/2014/2014-427.htm
Those who danced were thought to be quite insane by those who couldn't hear the music.
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Re: LG 104.3 denied change of license status

Postby jon » Thu Aug 14, 2014 9:34 am

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.
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Re: LG 104.3 denied change of license status

Postby Alan A » Thu Aug 14, 2014 9:48 am

Heads will roll at Newcap for this bad investment. Someone really jumped the gun doing a format change and counting on a rubber stamp approval of the requested changes.

This station got off to a bad start and things won't change.

Hard to get any traction when your evenings are a totally different format from the other 20 hours of the day.

People will only sample a station so many times.
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Re: LG 104.3 denied change of license status

Postby Aaron » Thu Aug 14, 2014 11:22 am

The biggest problem with some of these rules is that the song classifications can be very difficult to research, and some are even open to debate, and yet the CRTC won't share their database. It's like posting a speed limit and then outlawing speedometers.

So, one or two songs where there's disagreement and a few days where your midnight top hour song plays a few minutes early and you're in breach of your license.
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Re: LG 104.3 denied change of license status

Postby skyvalleyradio » Thu Aug 14, 2014 11:49 am

wow! I'm impressed! The CRTC FINALLY put a stop to the scam of acquiring new FM licenses promising Category #3 music, pleading financial hardship & morphing into a Cat #2 format after 5 years. Seems to me this started with C-JAZ which was a 'back-door' entry into the Vancouver market with the actual aim of gaining an AC license - something the CRTC wouldn't go for when C-JAZ won their authorization. Nobody was more pissed than me when the suits came in from Toronto - totally screwed up C-JAZ for good, whined to the CRTC & morphed into "97 KISS FM". So...Newcap: how about bringing back C-JAZ or something more intelligent than tepid, overplayed, "R&B-challenged" oldies. (help me out here, Cam!!) Or how about throwing in the towel & bringing back "The Shore"?? A few of us would actually listen to 104.3 again if there was some Category #3 in the mix
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Re: LG 104.3 denied change of license status

Postby slowhand » Thu Aug 14, 2014 12:23 pm

Aaron wrote:The biggest problem with some of these rules is that the song classifications can be very difficult to research, and some are even open to debate, and yet the CRTC won't share their database. It's like posting a speed limit and then outlawing speedometers.

So, one or two songs where there's disagreement and a few days where your midnight top hour song plays a few minutes early and you're in breach of your license.

It is just like any other industry sector. Competent management has to determine the Margin of Error and make allowances for it.

To use your Speeding analogy, what would you do when faced with the statement made by one Canadian city when they took over photo radar from the police: "one kilometre over the speed limit gets you a ticket"? No one has a speedometer that accurate. The answer is that you drive 2-3 km below the speed limit.

Stations need to be adding a percent or two to required music categories to allow for that Margin of Error. I was going to say that they need to replace their accountants with engineers but even accountants understand margin of error when it comes to budgeting.
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Re: LG 104.3 denied change of license status

Postby Aaron » Thu Aug 14, 2014 12:24 pm

It's going to sound naive, but I really think the crew that started SHORE believed in the concept.
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Re: LG 104.3 denied change of license status

Postby Aaron » Thu Aug 14, 2014 12:27 pm

slowhand wrote:It is just like any other industry sector. Competent management has to determine the Margin of Error and make allowances for it.

To use your Speeding analogy, what would you do when faced with the statement made by one Canadian city when they took over photo radar from the police: "one kilometre over the speed limit gets you a ticket"? No one has a speedometer that accurate. The answer is that you drive 2-3 km below the speed limit.


I don't disagree. In fact, I wouldn't be surprised if they were working within a margin of error (all the big companies require it) but that even then it wasn't enough.

In this station's case, it often came down to having to trust Wikipedia, along with questions of "what defines a chart?"
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