Two CRTC commissioners dissent over tangible benefits for Montreal radio stations

The CRTC has approved the takeover of two AM radio stations in Montreal by a new owner but two commissioners are calling for the cancellation of a tangible benefits program. In a decision released Monday Aug. 11, the commission allowed numbered company 7954689 Canada Inc. (also known as Tietolman Terault Pancholy Media) to sell CFNV, a French-language station, and CFQR, an English-language station, to Ronald Richards Realty Inc. (RRRI). “The commission finds that approving this transaction is in the public interest, as it will help ensure that the stations continue to serve the community of Montreal, including the English official language minority community, by providing local programming,” the decision stated. Canadian broadcasters are required to support Canadian content development (CCD) through tangible benefits funding. A minimum of six per cent of the value of the transaction must be allocated to the appropriate funds. 7954689 started out proposing a value of the transaction at $386,002. There were extenuating circumstances involving repayment of shareholder loans and assumption of debt. RRRI had also purchased the shares in two deals. The numbered company eventually asked for an exception to the tangible benefits policy. The regulator decided the value of the transaction was $1,122,752 and ordered the new owner to pay three per cent of the cost to Canadian Starmaker Fund and Fonds RadioStar (60 per cent to Starmaker and 40 per cent to RadioStar); one and a half per cent to FACTOR and Musicaction (60 per cent to FACTOR and 40 per cent to Musicaction); one per cent to any eligible CCD initiative at the discretion of the buyer; and half a percentage to the Community Radio Fund of Canada. The total allocated to the funds is $67,366. But Ontario commissioner Bram Abramson and Atlantic and Nunavut commission Ellen Desmond disagreed. They pointed out that the stations have only made a profit one year, during the pandemic and attributable to increased government advertising about the COVID situation. “The facts are such that the applicant is attempting to ensure the survival of these stations in an environment where the AM radio band is in decline,” the pair wrote in their dissent. “Many AM radio stations have converted to FM or have exited the market completely, recognizing the challenges of operating an AM station.” They called on their colleague to waive the tangible benefits assessment of the transaction. ppark@thewirereport.ca

Two CRTC commissioners dissent over tangible benefits for Montreal radio stations

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By Paul Park
| August 11, 2025

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Two CRTC commissioners dissent over tangible benefits for Montreal radio stations

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