Globe and Mail story on Calgary grants

[radiofan]

Calgary adds five radio stations to FM dial
GRANT ROBERTSON

From Thursday's Globe and Mail

Alberta's oil boom is now a radio boom.

In the latest example of how record oil prices are driving virtually every aspect of that province's red-hot economy, federal broadcast regulators decided yesterday to allow five new FM radio stations in the Calgary area, increasing the number of local commercial stations on that dial to 14.

Such an increase is virtually unheard of in the normally cautious world of the Canadian Radio-television and Communications Commission, which rarely grants so many licences at the same time.

So what caused the CRTC to break from the norm in Calgary? Essentially, the large number of petro-dollars sloshing around the city.

"We look at the ability of the market to absorb new competition," CRTC spokesman Denis Carmel said.

"It's an indication of the economic growth in southern Alberta."

The last CRTC approval approaching such magnitude saw four new radio licences approved in Halifax in 2004. However, several of those stations were niche formats, such as talk and religious music, which didn't infringe on existing stations.

However, the four new stations approved in Calgary, and another in Airdrie, which is just north of the city, will more or less wade directly into the mainstream commercial radio fray.

The four Calgary licences include an alternative rock station to be operated by Harvard Broadcasting Inc., a folk-acoustic station owned by Rawlco Radio Ltd., an "adult alternative" format owned by Newfoundland Capital Corp. Ltd., and a "hot adult contemporary" station owned by CHUM Ltd.

The Airdrie licence, operated by Tiessen Media Inc., is billed as an "eclectic adult contemporary" station, which will also serve Calgary listeners.

With advertising markets slowing in other parts of Canada, several media companies want a slice of the good times in Alberta.

When the CRTC put out a call for applications in the Calgary market, 10 bidders applied for stations, while another three sought stations in nearby Airdrie.

Several players in the Calgary market, including Corus Entertainment Inc., which owns two FM stations and an AM station, argued that the floodgates shouldn't be opened to new stations simply because the economy is healthy.

In a letter to the CRTC, Corus asked the regulator to ensure its decision "is in the interest of maintaining market stability," which was echoed by other players. While Corus didn't oppose the new licences, it said the CRTC needs to keep a close eye that those players don't stray outside of their proposed formats.

CHUM Ltd. said its station will play a mixture of Top 40 and cutting-edge new music, likely putting it in close competition with Standard Broadcasting's two FM stations in the Calgary market, which are leaders in that category.

Under the terms of the licences, the five companies will be contributing funds toward developing Canadian talent, a requirement under CRTC rules

The Globe and Mail Story

[kat]

From the decisions rendered by the CRTC, it is more than obvious that they don't want any little guys or independents playing radio in the major markets.

After attending the hearings, I cannot for the life of me believe that they passed over Pattison and awarded another license to the incompetant fools at NewCap.

The CRTC should be abolished and be replaced by some real radio people who actually know what the biz is all about.