Broadcasters seek regulatory relief from community radio contributions; blame recession and technology changes

The Canadian Association of Broadcasters (CAB) is asking the CRTC to relieve private radio broadcasters of mandatory contributions and new financial obligations to support community radio in Canada when a new regulatory regime is established next year. Responding to a call for input on a new regulatory policy for campus and community radio, CAB notes that private radio broadcasters have lived up to their mandatory contributions to Canadian Content Development (CCD). CAB says these contributions have increased 13-fold—from $1.9 m to $28.6 m—in the last 10 years. However, the association says dwindling revenues for private broadcasters, brought about by the recent recession and technological changes that have compromised the traditional business model for radio, means private radio broadcasters will be unable to meet new financial obligations to support community radio. As a result, CAB wants a new regulatory policy that continues to permit private radio to funnel CCD contributions to the Community Radio Fund of Canada (CRFC) on a voluntary basis. “The establishment of new obligations will simply weaken a sector that is already threatened. More importantly, the continued ability of the radio sector to continue its important contributions to the Canadian broadcasting system rests on the Commission recognizing that it must not take steps that will further jeopardize the financial health of this sector,” CAB argues. CAB also notes that forcing a mandatory contribution for CCD will have a disproportionate impact on small stations with minimal revenues, leaving “next to nothing to spend in the station’s local community.” Funding for community radio has long been a problem that has dogged Canada’s campus and community radio stations. In an attempt to solve the problem, the CFRC was launched in May 2008 by three of Canada’s largest community radio associations: Campus and Community Radio Association, Alliance des radios communautaires (ARC) du Canada and the Association de radiodiffuseurs communautaires du Québec. The associations are currently seeking $18 million annually for the CFRC. About $5 million of this money is expected to come from private radio broadcasters, according to CAB. Last year, Astral Media Inc. contributed $1.4 million to the CFRC to support a national program for training and skills development. So far Astral Media and CHUM/CTVglobemedia have pledged $2.1 million to support the CFRC over the next seven years. The original idea behind the CFRC was that it would be supported by a federal government grant, says the CAB. However, the association points out that it has “yet to see any commitment on the part of the Department of Canadian Heritage or any other federal government agency” to fund the CFRC. The CFRC sees the situation differently. In its comments regarding a new regulatory policy for campus and community radio stations, it says the CRTC should compel private radio broadcasters to commit to mandatory contributions to the fund because they have not lived up to their voluntary contributions. “The CRFC has attempted to reach out to the private broadcast sector as an eligible recipient of CCD Contributions. Even though we have received responses and offers from four different broadcasters, three of which are among the largest in the country, the response from the commercial sector as a whole has been weak,” writes Melissa Kaestner, CRFC executive director. In addition, the CFRC urges the CRTC to recommend to the Treasury Board of Canada that 1.5% of Part II fees be directed to the fund. The CRTC is scheduled to hold a hearing to explore a new regulatory policy for campus and community radio stations on Jan. 18. The commission has received 120 comments on the matter from individuals, unions, community radio stations and private broadcasters. In addition to suggesting that CCD contributions be made on a voluntary basis, CAB suggests that a new policy should incorporate the following: -The CRTC should not set aside spectrum for expansion of campus and community radio stations. -Eliminate distinction between types of community and campus radio stations and ensure that not-for-profit stations remain community focused and complementary to other sectors of the broadcasting system. -No new financial requirements on private radio stations to support campus and community radio. -Exempt elementary and high school stations from licensing, if there are at least three FM stations operating in the areas where these schools are located.

Broadcasters seek regulatory relief from community radio contributions; blame recession and technology changes

News | 11/09/2009 6:43 pm EST

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