The Canadian Radio-television and Telecommunications Commission (CRTC) has issued three public notices flowing from its review of its Commercial Radio Policy 1998.
The establishment of a new approach to Canadian content development (CCD), financed by the contributions of broadcasters, will place an emphasis on the creation and promotion of audio content for broadcast through the development of Canadian musical and spoken word talent, including journalists.
Under the new approach to CCD, the Commission proposes to establish a basic contribution system based on a radio station’s revenues, rather than on the size of the market in which it operates. Stations with comparable revenues will make comparable payments. This basic contribution system will take into account the unique circumstances of small stations, regardless of the size of their markets. It will also automatically adjust for changes in the financial situation of radio stations.
The Commission estimated that, if the new CCD system applied to the 2005-2006 broadcast year, total contributions from radio broadcasters would have risen by between $3.5 million to $4 million when compared to the previous year.
The Commission considered the possibility of increasing the minimum level of Canadian popular musical selections from 35 per cent to 40 per cent. It determined that such an increase would not be appropriate at a time when the commercial radio industry must respond to the challenge of competing with new unregulated sources for the delivery of audio programming.
However, the Commission proposes to set a minimum level of 25 per cent for Canadian concert music and of 20 per cent for Canadian jazz and blues music aired during each broadcast week, which would replace the current minimum regulatory level of 10 per cent for these two subcategories. In addition, radio licensees will be asked to make specific commitments to provide airplay for and to promote emerging Canadian artists.
Calls for radio applications
The Commission has modified its policy concerning the issuance of calls for radio applications in response to the challenging environment faced by broadcasters in smaller radio markets. When the Commission receives an application to operate a new radio station in a small market, where the population aged 12 and above does not exceed 250,000, the Commission’s staff will assess this market’s economic state in order to determine its ability to sustain a new radio station.
Should its preliminary analysis indicate that the market in question is unable to support a new radio station, the applicant will then have the opportunity to either withdraw the application or submit additional information. The Commission believes this step will provide greater transparency and help prevent overlicensing in smaller radio markets.
Digital radio
The Commission has also set out its revised policy for digital radio broadcasting. In order to enhance the prospects of digital radio broadcasting offered in the L-band, licensees will be free to develop whatever broadcast services they believe will be of greatest interest to the listening public.
(Source: CRTC)
