GATINEAU – Saying that two proposed purchases would violate its common station ownership policy, the CRTC has denied Jim Pattison Broadcast Group’s application to purchase two more stations in British Columbia’s Okanagan Valley.
In 2007, Pattison agreed to buy CKIZ-FM Vernon from Rogers Media and CIGV-FM Penticton from Great Valleys Radio for undisclosed purchase prices.
However, Pattison already owns two FM stations in Kelowna, which is less than 60 kms from either of Penticton or Vernon and the proximity means that such concentration of ownership in the valley runs contrary to CRTC policy, says the decision.
“As set out in Public Notice 1998-41, the Commission’s Common Ownership Policy generally permits the ownership of no more than three stations in a given language in markets where less than eight commercial stations are operating in that language,” reads the decision. Astral Media owns the other stations in the valley.
“In the case of an FM station, section 2 of the Radio Regulations, 1986 defines a "market" as the FM 3mV/m contour of a station or the central area as defined by the Bureau of Broadcast Measurement (BBM), whichever is smaller. In the present case, given the size of the BBM-defined market compared to the 3mV/m contour, the Commission determines that since the 3mV/m contour is the smallest, the market for each station involved is defined as its 3mV/m contour,” reads the decision.
“If the Commission were to approve the applications to acquire CKIZ-FM Vernon and CIGV-FM Penticton, all of the nine commercial radio programming undertakings serving Vernon, Kelowna and Penticton that are currently in operation would belong to two operators – Pattison and Astral Media Radio… The Commission reiterates its view, as expressed in Broadcasting Public Notice 2008-4 on the diversity of voices, that the Canadian broadcasting system should ensure that audiences have access to a diversity of programming – especially national, regional and local content. The Commission also notes that a plurality of ownership in the private element is necessary in order to maximize the diversity of voices in the Canadian broadcasting system,” it says.
Although the magnitude of overlap with Kelowna varies between CKIZ-FM Vernon and CIGV-FM Penticton, the Commission says that the 3mV/m contours of both stations overlap the 3mV/m contours of the existing Pattison stations in Kelowna. “Given the foregoing, the Commission has determined that exceptions to the Common Ownership Policy would need to be sought in each case,” exceptions (technical considerations or economic need) that the regulator believes these acquisitions did not qualify for.
“With respect to both CKIZ-FM Vernon and CIGV-FM Penticton… the Commission notes that neither station is failing nor operating in a market that is severely economically depressed. Moreover, neither Pattison nor any other operator in the region has claimed that a denial of these applications would cause a station to cease operations. Finally, because the stations to be acquired are currently operating, the Commission notes that technical considerations are not relevant to these applications.
“Therefore, in both cases, approval of the transaction would constitute an exception to the Common Ownership Policy without any demonstrated technical or economic need for such an exception,” said the Commission in denying the applications.
