Cogeco considering appeal options
By Ahmad Hathout
The CRTC said an agreement to get Quebecor’s internet station QUB Radio on the traditional FM dial run by Leclerc Communication did not require commission approval because the owner still had and has control of the station.
Cogeco and Bell, two major players in the Montreal radio market, filed a complaint to the commission arguing that because the agreement last summer sees QUB Radio programming take over CJPX-FM (99.5 FM) during primetime Monday through Friday, it required a change of control application to the CRTC. Had that process been followed, they further argue, the CRTC would have found that Quebecor would be offside cross-media ownership rules, which stipulate that a company cannot control more than two of the three types of media in a single market — radio, television and newspaper — and Quebecor operates the latter two.
But the CRTC rejected those arguments on Friday, ultimately ruling that Leclerc still exercises control of the station despite the length of time QUB Radio is on the air – an argument that Leclerc made in response to commission inquiries.
The particulars of the decision include that Leclerc still maintains decision-making control because it broadcasts its own programming between 6 pm and 6 am, Monday through Friday and on weekends – airing 67 hours and 30 minutes of local programming per broadcast week; it was and is Leclerc’s decision to have spoken-word programming in QUB’s 12-hour block; Leclerc can replace the programming on the fly if it wants; and that QUB programming must be to Leclerc’s satisfaction or it can terminate the agreement entirely upon 30 days’ notice.
“Therefore, in the Commission’s view, Quebecor could not decide entirely at its own discretion that the QUB programming broadcast on CJPX-FM should henceforth be musical or cease to be composed of public affairs programs hosted by well-known hosts. If Quebecor really exercised effective control of the programming during prime-time hours, it would be able to make changes of this kind.”
Despite Quebecor playing a key role in the management of programming at primetime, including content creation, editing and promotion, Leclerc also has operational control because it manages the day-to-day of CJPX-FM, the CRTC said. It remains responsible for the broadcasting of news and traffic bulletins and advertising at primetime and has full responsibility over the regulatory and technical aspects, such as employing a technical team to ensure the quality of the rebroadcast. It also assumes the risks because Quebecor did not acquire an economic interest in the family-owned company.
“Leclerc assumes responsibility for all decisions concerning the station’s strategic plan, budget, and expenses (CJPX-FM studios, technical expenses, non-programming personnel, regulatory affairs), as well as the revenues generated,” the decision goes on. “Leclerc is responsible for advertising pricing, negotiations with advertisers, and customer relations. In addition, it is responsible for numerous expenses that have a significant impact on the profitability, or lack thereof, of CJPX-FM. Leclerc also makes the decisions associated with news, such as the amount allocated to the news budget, third-party contracts, and the hiring of journalists. Finally, it is responsible for ensuring compliance with the station’s regulatory requirements.”
As for the cross-media policy complaint, the CRTC acknowledged that despite finding that Leclerc still exercises control over CJPX-FM, the diversity of voices component of the policy should be addressed.
The regulator said Leclerc’s editorial presence and independence in the making of its own programming sees spoken word content that is distinct from QUB’s. Leclerc’s local and regional news finds its way in periods when QUB’s content is being aired, and listeners have access to newscasts prepared and delivered locally by Leclerc’s news department, “reinforcing the diversity of information in the Montreal market,” the CRTC said in its decision, adding Leclerc is also not in violation of its conditions of service, as alleged by the complaint.
Cogeco Media said in a press release that it “decries” the decision.
“The Commission is flouting its own rules on diversity of voices — a principle that is essential to the vitality of our society,” Caroline Jamet, president of Cogeco Media, said in the release.
“This decision sets a dangerous precedent, opens the door to all kinds of misuses and abuses, and undermines the entire Canadian media ecosystem,” Jamet continued. “In doing so, the CRTC is abdicating its role as guardian of diversity of voices and enforcer of its own regulations and policies. With this decision, the CRTC is allowing a blatant violation of the existing regulatory framework. We are now left to question the Commission’s ability to carry out its mandate.”
Cogeco had filed an application asking the Federal Court to force the CRTC to rule on the matter, as it had been nearly a year since it filed a Part 1 application lambasting the agreement.
Cogeco told us it will now pull that Federal Court application and is considering its options when asked about a possible appeal.
Bell and Quebecor did not respond to a request for comment.
Photo via QUB Radio FB page
