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Radio Networks and the Redefinition of Local Private Râdio

Randy Lyle Taylor

B. Ed. University of Alberta 1995

A THESIS SUBMlTTED IN PARTIAL FULFlLMENT

OF THE REQUlREMENTS FOR THE DEGREE OF

MASTER OF ARTS

in the Schod of Communication

8 Rauây Taylor 1998 SIMON FRASER UNIVERSITY Juiy 1998

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Radio networking has generally been the exclusive domain of the CBC as the national

broadcaster with the exception of a limited number of private radio networks that emerged in

the early 1920's pnor to the formation of the public broadcasting systern. For the most part it

was thought that private radio would fùlfil the primary function of local broadcaster.

The thesis examines the resultant impact to local radio programming sewices of the

CRTC policy permitting the licensing of private networks in the late 1980's. Several

relationships are examined. Foremost of these is the dialogue between pnvate radio

broadcasters and the regulator. Notions of community local identity and the increasing use of broadcast technology are also taken into account Since none of these issues have remained

static, and continue in a dynamic fashion, an historical perspective has been adopted illustrating a policy shift away from broadcasting as a culturaVpublic paradigm, to a market/audience paradigm.

Evidence is hwnfiom local, regional and national perspectives examining concepts surrou11ding comrnunity, policy and technology. CRTC annual reports, public notices and broadcasting decisions are cited as well as documents published by the major industry lobby group, the Canadian Association of Broadcastexs (CAB). A case study method is used to investigate the local impact of the larger national issues. The thesis traces the growth of private radio networks fkom their begi nnings as distributors of live sporting events to recent developments as deliverers of programming which has traditionally been let? to the local broadcaster. It is suggested that these developments have been faci li tated no t on1y by advances in broadcast/information technology, but also as a result of a graduai loosening of the regdations goveming private broadcasting in Canada.

This thesis argues that local pnvate radio, especially in smaller communities, is king redefined by broadcasters, the regulator and the community. Furtherrnore, that local identity and cornrnunity are beçoming regionalized as a result of the decrease in local programming hours available. Many of the broadcaster's comrnitments to the community, once contractually articulatecl as a condition of licence, have aow ken relegated to industry self-supe~sorystatus.

The thesis conciudes with a discussion of policy alternatives including the need to acknowledge local information as vital Canadian content The paper cails for increasing regdatory vigilance of existing policy governing local content. TABLE OF CONTENTS

.. * ABSTRACT ...... 111

II . COMMLMITY ...... 8 Participation in Media and local Prograrnming ...... 9 Broadcast Identity ...... 12 Radio's Cornmunity Potential ...... 16 The Profit Imperative ...... 19 m . POLICY ...... 27 Early Regulation ...... 28 CAB Strategy ...... 31 CRTC Policy Development ...... 35 Self-Regdation ...... -44 Local Programming Policy ...... 49

IV . NETWORKS & TECHNOLOOY ...... 59 The Transition to Digital ...... -60 Private Regional and National Networks ...... 64 Impact of Broadcast Technology on Comrnunity ...... 68

V . NEWORKING AND COJbfMJMTY ...... -70 Ownership and Cornmunity ...... 71 Local Programrning Reductions ...... 74 The Russian Newscast ...... 80

VI . THE TRANSFORMATION OF LOCAL RADIO ...... -85 Neworks and Technological Intervention ...... 85 Re-defining 'local' ...... 89 Future of Regdation ...... 90

11 Appendix B ...... 106 Appendix C ...... 107

1, MTRODUCTION

This thesis wil exmine the resultant impact on local private radio prograrnming services of

Canadian Radio Television Telecommunic~tionsCommission (CRTC) policy changes to permit the licensing of private radio networks.

Several temis are embedded in this study that require clarification. They include private radio, broadcasting networks, community and 'localness'. Private radio is defined as a broadcast distribution undertaking that is licensed to operate apart fiom those aspects of the Broadcasting Act (Canada, 199 1) and Radio Regdations (Canada, 1986) goveming the

Canadian Broadcasting Corporation (CBC), community and educational licensees.

Networks are defined in Section 2 of theAct as follows:

"network" includes any operation involving two or more broadcasting undertakings whereby control over al1 or any part of the programs or program schedules of any of the broadcasting undertakings involved in the operation is delegated to another undertaking or person.

When we speak of 'local' and 'community', several concepts can be applied The following should be viewed as a general outline and certllinly not dl-inclusive :

a local cornmunity defined primarily by geopolitical boudaries

a local market defined generally by media dverüsing potential

a local community defined by cultural considerations Each concept carrieswith it different notions of local identity. The Canadian regulatory structure attempts to adciress each of these perspectives. The CRTC issues a broadcasting licence to those deemed best able to 'serve7 a particular local geographic community.

Several factors are usually considered, foremost among them is the financial ability of the community's commercial sector to provide the undertaking with the necessary advertising revenue to allow it to operate. As well, broadwten are expected to operate within the parameten of the Broadcasting Act (199 1 ) in order to "serve to safeguard, e~chand strengthen the cultural, political, social and economic fabric of Canada" (Canada, 199 1).

This study concems, in part, the difficulty arising fiom the forced interaction of these various communities with regard to local radio. They often hold competing interests, yet are portrayed as sharing the sarne goal. For example, refemng to the three conceptualizations above, the needs of a local advertising market can be defined quite differently than a town, which is defined by its geopolitical boudaries. Indeed, the local advertising market could extend to businesses operating outside a tom's municipal boundcines. Similady, the cultural considerations ofcommunity are not wholly dependent upon topography or advertising. It is this particular idea of 'local-ness', or local identity, that I have chosen to examine.

This thesis proceeds with the underiying assumption that local radio has the potentiai to provide a community with the means to assist in defining itself Just as the medium can be utilized to advertise the goods and seMces required to fuel the consumer economy, it can also be usehl in providing timely public service information (Girard, 1992; Quinones, 1997). I also hope to show that it is not solely the content, or what is said, but also the language, or how it is said, that is equally important As a result, the local broadcaster has a unique oppominity to speak to a community using the language of that community. Local places, for example, are referenced and acknowledged in wcular ways. In the Vancouver are%for instance, most cornmuters are familiar with that stretch of road known as 'the cut'. Most people residing in Vancouver will refer to 'the cut' on the north shore' rather than by its proper name. In order to effectively communicate, locaLradio traffic reporters acknowledge their awareness and cornmunity membership by using the appropriate terminology; refemng to 'the cut7and not 'the sbetch of the Upper Levels highway that extends south of the Lynn

Canyon exit'. Although the information transrnitted in both instances may be identical, a sense of local community is reflected in the first example. A broadcaster unfamiliar with these subtle community nuances would sound awkwarâ. Furthemore, the relationship is symbiotic. As local radio assists in the maintenance of community, memben of that community also corne to define the role local radio plays in their daily lives.

These ideas were recognized over half a century ago, prompting the 1946 Canadian

Parliamentary Cornmittee on Broadcasting to recommend that:

as a condition of issuance or renewal of a licence a station should be required to submit to an undertaking that it wouid faithfûIly perfom its duty as a tnistee of the frequency and would indicate the amount of time and the proportion of its revenue it was prepared to devote to local venues, discussion of matters of local interes5 the development of local talent and other public service. (p. 246) Local-ness and community are explored in chapter one through a discussion of scveral

approaches found in communication theory. The efforts of Liora Salter ( 1973) and Jean .

McNulty (L979)in examining citizen participation in radio prograrnming were particularly

useful in laying the groundwork for this study. Their insights two decades ago have proven to

be nothing short of prophetic. Also discussed is the broadcaster-audience relationçhip,

pdcularly the techniques utilized by broadcasters to communicate with what is perceived to

be 'the listener',

Radio, as it is examined here, is bound and constrained not only by the regulatory

climate, but also the conditions imposed by the profit imperative. This is, afier all, an

examination of pnvate, and not public, radio broadcasting. It is therefore important to

consider the components of capitalism as an important Mework in the broadcaster's link

to the cornrnunity and regulator. This discussi*oncould have easily taken place throughout

several chapters, however it seemed best suited to the first

Historically, radio broadcasting in Canada has been the regulated under five different

Broadcasting Acts (1932,1936,1958,1968 and 1991) as part of an ongoing process of

technologid and economic change. Consistent throughout tbis history has been the

perceived need to develop a distinctly Canadian system. There have been several m.lestones

in our national broadcasting policy. While most are documented clearly in policy and

regdations as part of the regulatory structure, other more latent influences, are less visible.

ïhese forces are to be found in the language, images and tones adopted by the various acton. For exarnp!e, in the 1984 CRTC Annual Report Chaiman Andre Bureau indicated that "the

Commission believes that a greater emphasis on supervision rather than stict regulation

together with a consultative approach... is the appropriate ~rientati~ii"(Canada, 1984, p.2 1).

Chapter two of this thesis addresses policy formation and development. I have taken an

histonc, somewhat linear, approach begiming in the 1920's, concentrating on the regdatory

mechanisms that focus on those issues conceming local progamming and networks.

Compiling evidence for this study has proven to be somewhat challenging. Where

possible, attempts have been made to go beyond simply docurnenting CRTC policy by

examining public notices, decisions and discussion papers. These documents, while

important, need to be examined in relation to private broadcasting in general and local

broadcasting in prticular. No government policy, broadcasting or othenvise, is fonnulated

in a vacuum. Potential policy notions are ofien suggested in speeches and position papers

before adoption. In order to make these co~ectionsit was necessary to find what coiild be

loosely constnied as the 'voice' of private broadcasting in Canada and to asceriain the

degree to which this voice was being heeded as part of the policy process. For the past 30 years the Canadian Association of Broadcasters (CAB) has been actively lobbying on behalf of its membership which now stands at 40 1 radio stations. As of this writing nearly 80% of al1 private radio stations in Canada are CAB members (CAB, 1997). This study also examines various position papers, interventions and submissions advanced by the CAB with regard to policy. Chapter three examines broadcasting networks and technology using historic reference points. Radio broadcasting networks played an important role in early Canadian broadcasting history. During the 1920's there were a limited number of private radio networks, most of them carrying American content (Peers, 1969; Raboy, 1990). In later years radio networks became the domain of the CBC,lacgely as a result of the 1936 Broadcasting

Act. Local broadcasting was relegated to the pnvate sector. As Marc Raboy has outlined,

"in 1938, the public/private dichotomy thus came to be fnimed in terms of 'public' versus

'community', where 'public' meant national and publically owned, and 'community' meant local and privately owned (1990, p. 63). Today, as broadcasters utilize digital technology to produce and distniute programrning, radio networking is more efficient. Distance has been altered dramatically resulting in the broadwtea potential 'reach', to use a marketing term, being extended More importantly, however, as 1 will argue, networking and technology have contributed to the redefinition of the traditional mode1 of the local broadcaster. As will be seen, these broadcasting initiatives have been encouraged by the regulator to the detriment of some local cornmunities.

To assess the degree to which national policy and industry objectives were being artïculated at the local level, a case study method was chosen. It was necessary to choose a radio station that had a relatively long history in a cornrnunity with no direct cornpetition fiom ano ther local broadcaster. If the broadcast undertaking chosen was also obligated, either by condition of licence, regulatory or community pressure, to address the concerns of a particular cultural minority, then this would be reflected in CRTC documents comprising the public file. Moreover, this methodology would also afford a glirnpse into any political econorny issues associated with hroadcast networks. The case sbdy chosen was CKGF in

Grand Forks, BC and is discussed in chapter four. This radio station first went on the air as an independen t AM station in the 1960's before becoming part of srnail regional network broadcasting in the West Kootenays. The area also has a Russian speaking cornmunity which has had varying degrees of access to CKGF over the past 30 years. II. COMMUNITY

When Dave Glover retired in 1993, the city of Trail staged a party on a Saturday afternoon and people turned out "by the hundreds". The local paper reported "A radio love affair of 44 years is coming to an end..as Trail's most beloved announcer calls it quits"

(Rode, 1993). Even if one casts aside the obvious promotional value for the radio station in organizing such an event, it is clear that something motivated the community of Trail to attend Glover's retirement sendoff. However, what is less clear, and exceedingly difficult to articulate, is the radio station's role in the building and maintenance of a sense of community. Unless people felt there was some kind of connection, familial or othenvise, what wodd provoke people to set time aside to attend this function?

Of the two components of diis relationship, radio and community, the idea of community is by far the most challenging to define. Since 'community' can be viewed from a multitude of perspectives, I have chosen to examine communication research that seeks to link radio, as a broadcasting medium, with the constnict of community. As previousiy stated in the introduction, references to radio for the purposes of this study should be applied to the concept of private radio broadcasting, although, as will be seen, public and community models of radio could just as easily be substituted Participation in Media and Local Programrning

In the early 1970fs, Liora Salter (1973) sought to explore why sorne people chose to participate in media and othen did not As part of her study Salter examined various themes surrounding community. ültimately she discarded the notion of cornmunity as a sociological category, opting instead to build upon Suttles (1972) definition of community as "a consciousness developed not within an ara, but in relatiowhips to other areas and jurisdictions" (p.20). Furthemore, Sdter suggests that a community's self- definition occun in relation to extemal "adversaries or advocates" (p. 20). Salter's work in this area has been realized in at least one recent instance. Broadcaster Kuljeet Kaur who hosts a two-hour talk show in Surrey, British Columbia, has been the target of threats and hate mail as a result of her outspoken views on gender equality m'thin the Sikh mmmunity (Moore, 1997). Although not licensed by the CRTC and only available by satellite, the radio program clearly illustrates radio's potential for definhg comrnunities. These listeners share common interests and beliefs. There are other examples as well. Radio has been utilized as a mobilization tool in countries struggling with the implementation of basic human rights (Girard, 1992) and, as will be seen, the medium is very effective in cornmunity-level emergencies which, to borrow fiom Salter, can be described as extemal adversaries to the health of the communiîy.

Jean McNulty (1979) spent a great deal of time explonng the tie between broadcasting, especially local content, and community, and challenged researchers to delve into this important area This thesis is, in part, a response to that call. It was McNulty's psition that:

Communication for the individual penon is carried on at the local level in daily activities of conversation, information exchange, entertaining and being entertained. As part of the communication exchanges in daily life, reception of broadcasting and participation in programming activities could be considered with a cultural context at the cornrnunity level. (p. 273)

Broadcasting institutions, according to McNulty, were important to the development of

Canadian cultural expression, while "the cultural wntext within which an individual might use the broadcasting media for information or entertainment" had more to do with community life (p. 270).

McNulty7sobjective at the time was to spur the development of local programming created by decidedly non-professional participants. "The majority of the content", she argued, "is prognunming which contains strong images and values from the commercial, popular culture of the prevailing econornic system of North Arnerica" (p. 166). What was (is) needed, according to her, were 'other voices' to provide alternatives to the commercialkation of broadcasting. We share her view that with a variance in programming content corne different views ofreality and social experience which can only serve to strengthen a comrnunity identity. While most would agree that private radio, by definition, does carry pcimarily commercial or commercialized content, are we to assume that private radio has no role whatsoever to play in Salter's community consciousness or McNulty's comm uni ty iden t i ty?

This bnngs us to the important distinction between pnvate radio's role in community articulation on one band and private radio's audiencebuilding imperative on the other. There is the somewhat troubling notion of ascertaining where the line is drawn.

In his examination of this question, Peter Dahlgren (1 99 1) begins wiih various definitions of publics, and what he has labelled 'sense-making', and concludes his ovexview by suggesting that "for better or worse, the media themselves are an important factor in creating the shared cultutai perceptions which do exist" (p. 17). Being a member of an audience, he argues, is a step towards becoming a member of the public. If publics are created as a by-product of a radio station's role in the comrnunity, one aspect of which is stimulating citizen interaction, then, according to Dahlgren, the individual-as-audience member is weli on hisher way to becoming an individuai-as-public member. It is a mere

"moment, a step in the process ..A wnstitutes the encounter with media output within the immediate social ecology of reading/viewingllistening" @. 17). In other words, at the nsk of over simplifying, the public/community function stems directly fiom the social function, or what has been temed in this pper as the communicative function, with radio. Furthemore,

"One may be critical of the meanings which are shared, but a mode1 which would mive for a public 'uncontaminated' by media culture is both illwty and counter-productive" (p. 17). Both McNulty and Salter suggest that community development andlor consciousness is best

. encouraged through persona1 communications within the community. The media, in thiç case

radio, is viewed simply as an adjunct or conduit. McNuliy, in particular, says "Basically,

broadcasting is a poor substitute [for direct human exchanges] because it is a one-way

transmission medium " (p. 266). With the possible exception of phone-in programs, radio

does not provide for traditional two-way verbal exchanges, behveen a listener and, Say,

announcer. However a strong, if not esotenc case, can be advanced that radio does provide

more than one-way dialogue. Radio's strength lies in its ability to communicate not only

with a sense of timeliness, that is to say immediacy, but it can also convey a sense of kinship.

Broadcast Identity

Although this point is conjecture and without scientific evidence, listenea will &en

artnibute parîicular personality traits such as humour and fnendliness to their 'favourite'

radio persondities. These insights are often not related to the acnial role the broadcaster is

perfoming, but rather what dhe is perceived to be 'like'. In their book Edightened Rocism,

Sut Ihally and Justin Lewis discovered sirnilar audience characteristics with regard to the

Cosby Show on television. Cosby, the actor, was confusecl with his character Cliff Huxtable.

The two were often indistinguishable to viewers: Gwe we allow ourselves this degree of farniliarity, it is possible to see how fantasy and reality fade quietly into one another, how our TV fnends and acquaintances take their place within our 'real' world and jostle for attention and support with Our 'real' fiiends and family. This blumng of the distinction behveen fantasy and everyday life was a constant fature of nearly al1 our respondents' comments. (p. 19)

Radio Iistenen like television viewers, wnbe certain personality characteristics to the broadcasters they listen to regularly, in spite of the fact that generally they do not know these people beyond their onair personas. Some broadcasters become integral parts of the listenefs lives. It may be as mundane as the voice associated with the radio alarm or the voice that deliven the news every moming. Radio stations ofien encourage their perso~elto make live appearances at cornrnunity events, thereby selling the presence of the penonality and, of course, the cal1 letters. Indeed, these attributes of one-on-one communication are actively encouraged as part of broadcast training, especially the onair component. Here, for example, is a typical example of the notion of the 'broadcast penonality' taken from The

Program Director's Haadbook:

It's possible to deliver a ten-second line about the weather and sound human. Suppose you replace "Today's weatheq sunny, colcl, 35 degrees" with ''Better wrap the kids up tight Mom, it's goma be a cold 35 degrees today" It's the sune informatioa but you achieve personality. You will be perceiveci as curling about Mom cmd her child...al1 while delivering the weather line. (Emphasis added) (Pavia, 1983, p. 37)

If radio listeners ascni certain characteristics to radio personalities, then it is equally plausible that, to effect some notion of communication, the sarne is true of broadcasters. In order to develop a rapport with the audience, the broadcaster avoids addressing 'everyone' as

a mass unit, electing instead to communicate singularly as in the example above. Of course,

this requires some rather large scale populist assumptions. Since individuak cmtbe

collectively addressed one by one, it becomes necessary to assign certain demographic and

gender characteristics to a symbolic 'listenef.

Using private radio as an example, Tim O'Sullivan and his colleagues (1 994) have defined this process as "mode of address" .They quote a radio training guide that encourages broadcasters to direct their efforts towards communicating with a fictional woman, Doreen, and her husband Bill who are consûucted as typical listeners. Doreen, it is said, '%hile she's not stupid she listens to the radio with half an eu". Husband Bi1 1 doesn't fare much better, he is describeci as 'having a short attention span" (p. 183). it would be tempting at this juncture to reflect upon these implications and consider several important issues, not the least of which would include suggestions of sex-roie stereotyping in broadcasting. There are many arguments concerning valid audience measurement (hg, 199 1; Hartley, 1982), however our purpose here is to only acknowledge that a relationship between a radio station and its community of listeners does indeed exist; furthemore that this mode1 involves communication. Perhaps this helps explain why hundreds of people will take time out to attend a retirement event for a local broadcaster in Trail. There is a feeling of knowing and sharing similar experiences within a community. The suggestion here, however unscientific, is of two-way communication on a particular undefined level. John Dewey (1 929) seemed to ppthis dilemma and put fonvard the suggestion that

communication was more than simply the spoken word: .

Social interaction and institutions have been treated as products of ready- made specific physical or mental endowment of a selLsuficing individual, wherein language acts as a mechanical go-between to convey observations and ideas that have pnor and independent existence. Speech is thus regarded as a practical convenience but not of fkdamenial intellectual sipificame. (p. 134)

Therefore it is entirely conceivable for Dewey to consûuct communication without the use

of language. "Nahiral events", he says, "becorne messages to be enjoyed and administered,

precisely as are Song, fiction, oratory, the giving of advice and instruction... they are more

than mere occurrences; they have implications" (p. 138). In his work on the characteristics of

the crowd, Robert Park (1972) highlighted the importance of what he called "emotional

contagion":

At eveiy encounter emotional and mental contact is experienced. Every occasion, whether a mamage or a funetal, has its own peculiar mood which controls the feelings of those present..this process of reciprocal action and psychic adjustment occurs continually and automatically whenever people are together. People are usually not conscious of the infiuence of these social forces surrounding them. (p. 2 1)

There is some cornfort in the fact that even for Park this notion is difficult to define,

although by elevating the well known behavionstic princi ples of stimulus and response to the

level of "bqression, interpretation and response" (p. 107), he provides a modicum of clarity.

Interestingly, both Salter and Park choose similar tenninology in describing comrnunity. For Salter is it consciousness, while for Park comrnunity communication exists on a psychic level; '30 subtle that [the communication] arnount[s] to a kind of clairvoyance" (p. 107).

Xorthrop Frye ( 1982) aiso acknowledges these themes in Divisions On A Ground. According to Frye, "NO matter how cornplex the technical means of communication, the elements communicated are still words, tones and images, the same elements that have been around since the earliest stone age7'( p. 40).

Radio broadcasters who possess an understanding, instinctive or othewise, are able to tap into this domain; communicate or 'speak to7 the community. This relationship, albeit a challenge to define, is indeed a reciprocal one. Community events, environmental phenornena, and relationships with those outside the community are not only observed and acknowledged, but are often articulated by the local broadcaster. This study suggests that this process is precisely what Frye means when he talks about "interpenetration" (p. 23) with regard to "creating a vision that becornes a focus for a cornmunity" (p. 24).

Radio's Community Potential

After listening to even a few minutes of private radio offenngs on either the AM or

FM spectmm anywhere in Canada, one could be forgiven for concluding that there appear to be very few incidences of community linkages or vision being forged 1s the full potential for private radio's involvement in the cornmunity king utilized in Canada? Probably not. Howev=i, as Our exphation of radio's potential continues, we shall focus on two examples where, perhaps, radio has excelied in its communal relationship beyond striving for market dominance and profit

Private radio is credited with saving countless lives in Mexico in 1995 when on the moming of September 14 an earthquake with a magnitude of 7.3 rocked Mexico City

(Quinones, 1997). Since radio waves travel faster than seismic vibrations, authorities constmcted an early warning system involving 53 radio stations. Briefl y explained, this system links several coastal earthquake monitoring stations with the hterior broadcasting outiets. Once a quake is detected

The alert immediately cuts into regular programming with an annoying 'wah- wah' sound, alerting listeners that an earthquake is on its way ...employees have been trained in Yohat to do following an earthquake; each has a manual to consult at home and in their cars. Al1 reporten have beepen, two-way radio and cellular phones. (p. 29)

The article goes on to Say that before the quake Mexican radio was used largely for entertainment and rarely for news. But "as the earthquake hit, television went black and newspapea were incapacitated" (p. 29). Earthquakes, according to the Quinones story, have played an important role in the development of Mexîcan radio. The mode of address here is quite clear. A direct communicative relationship existed transcending the artificial constnicts required to personalize broadcast content as with the next example. In Victoria, BC, in 1997, the city was paralyzed with the wont snow and wind storm in

decades. CFAX radio preempted regular programming to coordinate.rescue and relicf efforts.

According to press reports, "every phone in the radio station rang for several days"

(Fairbridge, 1997, p. 9). CFAX was able to organize a team of coordinators for avery part of

the city at which time the local community cable channel began carrying the radio station's

audio and listing the volunteer co-ordinators on the screen. nie station kept the authorities

infomed by fax. People were able to make judgements regarding work or traveling based

largely upon timely idonnation provided by radio. Authorities were also better equipped to

handle relief efforts.

There is no doubt that in both cases the media outlets benefitted fiorn these ernergencies. One could posit that such emotional events wouid even elevate the status of the radio stations and their broadcast personalities within the community. Indeed, the

Broadcast Technolog-column that reported the Victoria incident proclaimed "promotion

like that, you cannot biiy" (p. 7). This of course suggests the notion of the profit motive inherent in private radio which has been alluded to, but not yet examined, in this thesis.

As a medium, private radio is so pervasive in our society that to acknowledge the characteristics of such a cornmonplace entity could appear trivial. Moreover, it is not the characteristics of the medium as much as the economic systern in place that determines its pnmary role in society-that of delivering listenen to advertken. This theme is not only central to the discussion at han& that of community, but is also vital to the chapters that follow concerning broadcast policy and networks.

The Profit Imperative

Claus Offe (1975) has examined policy formation within the capitalist state. His model revolves around the four key points of; exclusion, maintenance, dependency and legitimacy. Inasmuch as this thesis will concem itself with state broadcast policy formation

Offe's views are particuiarly relevant and important.

For Offe, the notion of accumulation is a primary underpinnia& especially with regard to the relationship between the state and the accumulation, or fiee enterprise, process. Offe deîmes accumulation as the mechanism for uie production of goods and profit.

Production or accumulation, in Offe's model, is not carried out by the state, but rather in enterprises that are fiee not to produce unless production is accurnulative. This process of accumulation is undertaken outside, and is excluded from, the state. The enterprise is under no obligation to embark on a course of action that will not result in profit The state, in other words, cannot intervene and force an enterprise unit to produce something that can not be sold Secondly, th:: state has the mandate to create, sustain, maintain and protect the accumulation process. Any threats to accumulation, whether national or international, must be addressed to restore balance. Since by definition accumulation is the foundation of the capitalist state, then the absence of this phenornenon would lead to the disintegration of the , state. since the state relies on the economics of accumulation in employment and taxation.

Both the government die enterprise operate within a codependent relationship . The apparatus of the state, then, must operate to ensure the accumulation process remains healthy. Hence Offe's notion of dependency.

Finally, in his fourth point, Offe argues that legitimacy is achieved when the various state institutions convey egalitarian images such as equal access to power and essentially work to mask the hue nature of the capitalist state. The very existence of the capitalist state thereby presupposes the ongoing denial of its nature according to Offe. Although not cited by

Offe, this last point is also found embedded in Antonio Gramsci's thoughts on hegemony in the 1930's (Hardt, 1992). Since private radio differs fiom public, educational or other non- commercial broadcasting in that it operates according to capitalist (market) principles, a thorough study of community/Ioca1ness in the private broadwting dornain cannot be realistically undertaken without assessing Offe's notions. How can Offie's analysis be applied to private radio?

In Offe's model. a private radio station or network must operate within the four, albeit briefly defined, themes outlined above. To bring his mode1 to the fore then, the accumulation process is safeguarded by virtue of state involvement to regdate (or not regulate) to achieve a relative state of health. Thus there is maintenance and dependency. Private radio reks on the stâte to create and maintain a stable economic base. Licences to operate broadcast undertakings are issued, in part, based on the applicant's ability to convince the CRTC that the community has the advertising potential to support the business.

As part of this licensing procedure opemton are also offered a degree of protection from other broadcasten seeking entty into the market. The accumulation process here is clear.

Pnvate radio is in the business of delivering listeners to advertisers. Indeed, listeners are the accumulated product However, they are rarely identified as such which brings to mind

Offe's final point of legitimacy (1975). The listener is identified publically by the broadcaster oniy as a member of the community, however, the listener's role as a commodity is deftly hidden.

Although most of her work is concemed with television, Ien Ang (199 1) provides an excellent overview of the audience-as-market and audience-as-public paradigms. Her paternalistic models of public broadcasting 'fiom above' and the 'give the audience what i t wants' market dictum are easily transported to radio. These and other related issues especially those conceming regulation and Offe's notion of maintenance wîll be explored in subsequent pages. Community and Networks

Having discussed radio and community, it is now necessary to examine the third component of this thesis, the concept of networking, with regard to community. In Public Notice CRTC

1986-355, the Commission defined networking as

any operation involving two or more broadcasting undertakings whereby control over al1 or any part of the programs or program schedules of any of the broadcast undertakings involved in the operation is delegated to a network operator. (p. 5)

The key aspect of this definition that is of interest here is the delegation of control of programs or program schedules to the network operator. Since time is a finite resource for broadcasters, the use of network programrning and the delegaîion of control to a network operator naturally results in an equivalent decrease in the arnount of time available for local programming.

With the delegation of control to the network operator, the mode of address is aitered Whereas the local broadcaster is concemed primady with one community, the network operator must address several communities, assumhg there is more than one local broadcaster acting as a network affiliate. in seeking to comrnunicate with its affiliate stations, the network operator and ultimately the local broadcaster, must ensure that one community is not alienated in favour of another. A listener in the north central interior of BC is not necessarily interested in issues pertaining to municipal politics in a city in the

Kootenays. Too many such discomected references and listeners wil! simply tune out. The. solution, of coune, is to remove as many references to specific communities as possible andfor maintain the local listener base by carrying network prograrnming that is either extremely generaiized or, altematively, so specific, that there is deemed to be mas appeal.

As an example, a sdled'golden oldies7network radio program could originate anywhere without unduly alienating a specific &liate community. Similarly, the (arguably debatable) unique qualities of controversial New York broadcaster Howard Stem would be an example of specificity in network broadcasting. In either case, the network broadcaster is forced to construct a listener devoid of any local attributes and characteristics. The content is without

Northrop Frye's 'tones and images7.Furthemore, the articulation and sense-making process within a community is hampered by the distinct loss in local programming hours. A local broadcaster's role in discussinglpublicizing externalized community threats and advocates, to remto Salter's thesis, can not be undertaken in a networked environment since, in essence, this mapping would take place outside the comrnunity. Lastly, local broadcasters are unable to respond to timely community events, especially emergencies, if control has ken delegated to a network broadcaster. There is no suggestion here that in the event of a cornmunity emergency, such as the one tbat struck Victoria, that a broadcaster would be unable to regain technical control from the network operator, only that staff may be less able to respond with the same organizational immediacy. If broadcasting, as Jean McNulty (1979) suggests, "is regarded as a distribution system with

iio inherent content of its own" then, "what it distributes can corne from whatever source" (p.

270). We cm see this occumng even in non traditional networked environrnents:

Shelley Joyce, aftemoon drive host on CRM's sister station, CHQM-FM Vancouver, used to live in BC's lower mainland but now lives in Kamloops. At 1 larn every day, Shelley sits at her mic in her home and voicetracks her show into CHQM's RCS system via a Centrex line. (Fairbridge, 1996, p. 12)

Not only is Joyce severely limited in detecting subtle commurùty nuances but more

importantly by pre-recording the program the radio station cannot respnd to events andior

conditions in the community as they are occurring. There are other examples of this as well.

Vancouver radio personality Wayne Cox routinely broadcasts the weather each moming

from his home in White Rock, BC networked to CKKS-FM in Vancouver via a broadcast

line. While Cox can address the pertinent issues of that day's weather, he can not receive

telephone calls or speak to a listener off-air. He is dependent upon othen at the radio station

to supply him with timely local information (Northrop, 1997).

If networking jeopardizes, or at the very least re-âefines, a broadwter's role in the community, it confoms to Offe's modei of capitalism and accumulation. The Iocal broadcaster is able to operate with fewer staff and lower operating expenses. The network operator can deliver more listeners across a wider area and levy higher advertising fees for access to the audience base- The broadcast network is analogous to the national railway which facilitated the importation of cheap goods manufacturai abroad. The broadcast network allows cheap prograrnming into the local comrnuniîy. However, unlike its rail counterpart, the broadcast network is unidirectional and provides no local goods, or in this case community information, for export There are no clear benefits to the wmmunity aside fiom the obvious entertainment programming. Kevin Dowler @orland, 1996, ch. 12) has astutely reminded us that it was just this influx of cheap goods that contributed to the demise of the railroad as a unifjmg national entity. Goods were made less expensive by the very system wed to distribute them; thus, whatever benefits were accrued through local exports were lost as dependence on cheap foreign products grew and the incentive to produce locally waned.

A sense of community is developed and nurtured as part of a consciousness process.

Lines on a map and municipal bounâaries alone do not, as Dahlgren (199 1) points out, constitute the sense-making of shared cultural perceptions. Broadcaste rs, in this case radio broadcasters, are an integral part of that process by referencing peuple, places and things unique to the community using a particular mode ofaddress. Although private broadcasters in Canada have always been wnstraîned in vmng degrees by regulation., they operate as cornpetitive advertising businesses. Although the mode1 of non-commercial communiîy radio envisioned by Liora Sdter and JmMcNulty in the 1970's would be better suited to community building, it is not as pervasive as private radio. The CBC is non-cornmerciai by nature. However it also lacks the local presence of the pnvate stations and is structured, for the most part, regionaily. In British Columbia for example, CBC Radio produces two moming prograrns. The CBC regional oftice in Vancouver produces a morning program for the lower mainland while the BC interior listens to programrning that originates in Kelowna

Other socalled 'storefronts7 operate in Prince Rupert and Prince George. In spite of thc profit imperative which mol& progamming, especially network prograrnming and technology, we are still left with private enterprise, in most cases, as the sole radio opth operating at the community level.

This would seem to be a most appropriate discussion with which to close the first chapter conceming community. How radio broadcasting has been allowed to develop in

Canada, especially with regard to commw-ty and networks, is examined in the next chapter. III. POLICY

Thie development and implementation of any policy conceming private radio broadcasting in

Canada must be viewed as a continuum. To isolate a particular piece of legislation without setting it against a contextual backdrop would be to oversimplifj~.Private radio's roots in community broadcasting and the rise of private network broadcasting in this country can only be fully anaiysed by assessing the historical success andor failure of these broadcasten in hakg their concems adopted by the policy makers. An examination of this nature requires an ove~ewof Canada's broadcasting policy fiom its inception to more recent discussions conceming deregulatioa I have drawn nom several sources for this chapter which is divided into three sections. Early explorations in policy developrnent carried out by

Austin Weir (1969) and Arthur Siegel (1983) proved to be extrernely enlightening. Marc

Raboy's (1990) efforts in the 1980's and 90's were a furthex complement. These are detailed in the first section Additional insight was provided by examhg CRTC annual reports beginning in the late 1960's and documents origimting with the Canadian Association of

Broadcasters (CAB) which comprise section two. The chapter concludes with examinations of particular policy documents relating to radio networking in the 1990's. The early days of private radio pnor to the onset of eamest regulation are hard to imagine by today's standards. The inaugural director's meeting in January of 1926 of the

Canadian Association of Broadcasten indicates thirteen directors, all men, were present.

Four of them represented radio stations owned by newspapers, and another four sat at the table to articulate the interests of radio manufacturen who also held ownership positions.

The remaining five directon represented the Canadian National Railways and radio societies

(Allard, 1976). Three years later, the CAB gathered to discuss its presentation to the Aird

Commission which was created to recommend a national broadcast policy. Interestingly,

"those members specificaily opposed to outnght provincial or federal nationalization were unanimous that the best antidote would be a high degree of self-regulation" (p.8). There is also evidence that Amencan network interests were getting first hand reports on Aird proceedings (PeenJ969). Canadian concem about undue U.S.influence prompted the oft quoted question by Graham Spry "The question is [will Canadians get broadcasting by] the

State or the United States?" (p. 91).

The first commission to regulate broadcasting was created by the Canadian Broadwt

Act of 1932. The Canadian Radio Broadwting Commission (CRBC)assurned control of broadcasting which had previously been the domain of the Minister of Marine and Fishenes which had responsibility for issuing licences. Although Canadian radio was in its formative stages of development as a mass medium, such was not the case in the United States: [Jndeed !here had already ken developed in the United States a corporate consdidation of radio manufacturiy*transmission and broadclsting interests, mostly under or allied with the Radio Corporation of Amenca The chief agencies of public seMce programming, entertainment, communication and manufacturing involving radio were rapidly passing into the hands of a very small but very powerful group. (Weir, 1965, p. 98)

It should be noted that although four of the leading Canadian stations were affiliated with the

U.S. networks at this time, Canada's rural areas were largely unserved (Peers, 1969).

According to Weir (1 965) fourteen stations out of forty eight at the end of 193 1 managed to subsist on not more than half an hou of sponsorship daily. It was at this time, on the heels of the depression, that local stations began relying on local sports, amateur shows and church services. "Broadcasting on private stations just grew up" (p.99). The 1932 Broadcasting Act gave complete control of network broadcasting in Canada to the newly fomed CRBC, which enacted a regulation prohibiting networking unless approved by the Commission (CRTC,

1986a). The CRBC operated stations in the major urban centres and provided programming to the rural private stations who operated as network affiliates. Between 1933 and 1939 the effects of the depression were wearing off and pcivate broadcasting in Canada experienced a tumaround Stations across the country were deemed to be making "good profits" (p. 240); however, it wasn't long before private broadcasten appeared before a 1934 parliamentary cornmittee claiming that regulations were putting them out of business:

the counsel for the CAB pleaded the case for private stations and emphasized the difficulty of their problems. He was asked a few minutes later by MI. Coldwell, MP., if he were owner or part-owner of a station, and in an unguarded moment replied, "Unfominately, no". (p. 240) Nevertheless, their cornplaints resulted in a speedy relaxation of regulations (Peers, 1969).

The Broadcast Act of 1936 further delineated public and private brodiâsting by creating the Canadian Broadcasting Corporation (CBC). However, the CBC like it's predecessor the CRBC, continued to act as both regulator and cornpetitor since it was responsible for recommending the individual licensing of private stations to the govemment.

The 1936 Act aiso prohibited affiliation with non-Canadian neiworks. T.J. Allard (1976) who would eventuaily rise to become a CAB executive has referred to the years between

1936 and 1958 as years of "rebirth" (p. 14) and 6'reconstniction" (p. 17). There was rapid growth in the private sector. In 1939 the CAB asked for written permission to operate a second network which would be financed by private broadcasten using lines leased from the

CBC. The pian was rejected because it would have essentially operated as an extension of the Columbia Broadcasting System (CBS)in the U.S. (Weir, 1965). Pnvate broadcasters, however, were persistent and returned to the Parliamentary Committee on Broadcasting in

1946 to lobby against what it saw as a cSC contlict of interest and continued pushing for networks. in denying the CAB position, the Committee made it clear that:

SeMce to community areas is the fiction of private stations. Network operations, or wverage of whole regions of the countq, are not the normal function of the private radio station Your Committee feels it would be good for dl concerned if a clear undefstanding were to be obtained upon this point. (Weir, p. 245) Private broadcasten did not walk away entirely empty handed. The meeting resulted in the

Cornmittee recognizing that there was "a place for, and definite need for private community stations supplementary to the national system ...They have and we believe they should have good opportunity for service and for business" (Raboy, p. 86). This session also revealed the CAB's definition of 'community', cited as "a centre with its surrounding satellite communities and its adjacent temtory" (Weir, p. 244). Broad parameten to Say the least.

CAB Strategy

Forrnally called the Royal Commission on National Development in the Arts, Letters and

Sciences, the Massey Commission was fmed in 1949. in preparation for the hearings and to bolster its case that private broadcasting was in a 'state of emergency', the CAB embarked upon an arnbitious $20,000 publicity campaign:

there would be a c'community station week" with special mouncements highlighting the public se~ceactivities of the private sector... speciai material was prepared for each station manager to broad cast... in total, it was a massive campaign, and the first effort to carxy the story of the CAB and private broadcasting directiy to the public in a major way. (Allard, p.28)

The head of the CBC at the time referred to the PR onslaught as "probably the most intensive publicity campaign ever waged by a group of interesâs for fiindamental changes in certain laws of Canada" (Raboy, p. 87). The CAB's 'emergency' hinged upon the notion that since the private radio stations had not been nationalizeâ, as had been recommended by the Aird

Commission but rejected by Parliament, there. existed._- two broadcasting systems, one public

=d one private. It was therefore unreasonable, according to the CAB, to expect that the

CBC should act as both regulator or "cornpetitor, regulator, prosecutor, jury and judge"

(Weir, p. 251). According to the CAB'S proposal, if the public sector would look afier issues

such as unity and "finer types of broadcasting", then 'allowed' to fom networks,

permanently licensed, subject only to the law of the land and fieed fiom competing with the

CBC for advertising dollars, the private sector would do commercial prograrnming" (Raboy,

p. 99). The Commission's response was unequivocal. Private broadcasting was part of the

national system and O perated as a public se~ceand not as an industry (Raboy, 1990; Weir,

1965).

Although there were no specific recommendations concerning cornrnunity and networking, the Massey Commission hearings clearly illustrated the ability of the CAB to mobilize in an attempt to influence public opinion. Indeed, the apparent success of the organization to launch such efforts resulted in intemal CAB restructuxing and information gathering. The membership base was expandeci, monthly economic data was collected from member stations, analysed and distnbuted quarterly, and a public relations department was created. This ùiformation was also passed on to a cabinet cornmittee during twice-annual briefing sessions (Allard, 1976). Whereas in earlier appearances, the CAB referred to their members as 'private' or 'community' radio stations, the CAB was now cloaking itself in democratic rhetoric, referring to "fke enterprise broadcasting stations" (Raboy, p. 99). The CAO campaign ha4 actually been initiated yean earlier in its submission to the 1947

Parliamentary Cornmittee an Broadcasting which was entitled "Control of Radio: An Urgent Canadian Problem". It called for a "Radio Bill of Rights" (Allard, 1976; Raboy, 1990;

Weir, 1965). Raboy has refened to these subtle nuances as "semantic transformations" (p.

94). In the cold war years that followed, this Ming proved to be an astute strategic move.

Bebveen the years 1948 and 1958, several planks in the Cm's policy platform had been nailed dom. According to T.J.Allard:

The regular meetings with Cabinet cornmittees were so successful that by October of 1954 CAB was in the position of king able to invite the Cabinet to lunch at the Rideau Club, and the Parliarnentiuy Press gallery to a reception the same evening in the same place. The Government appointed a member of the broadcasting cornmittee to act as an informal liaison with the CAB'S general manager so that it would be constantly inforrned of the industry's Mews. (p. 34)

The CAB "succeeded in achieving 100 per cent of its major objectives" and was described by a leading Toronto newspaper as "the most effective and powerfûl lobby on Parliament

Hill" (p.34). A study of the private station programming at this time (1949-50) shows that of the roughly sixteen hours of &ly programming for the 119 stations surveyed only three houn and twenty minutes could be classed as local programming. The rest of the time was taken up with recorded and network material. Of the local theallocated, it was "news, sports and devotional... al1 the simplest to produce, requiring very little talent outside the regular salaried staff' (Weir, p.328). In addition to creating the Board of Broadcast Govemors (BBG), the 1958 Broadcasting Act also put private stations on equal footing with the CBC and opened the door for the creation

'of private networks to compete with the CBC. In the yeaa that followed, private broadcasting flourished. Government policy allowed private stations to enter the FM and television spheres, licensing periods were extended frorn one to three, then five years, and the fieeze on power increases was lifted. By the Eime the 196 1 Special Cornmittee on

Broadcasting had convened, BBG Chaiman Andrew Stewart adrnitted that he could not tum away from the requirements of private radio to earn profits. Thus, he was obligated to make decisions that ensured a degree of financial protection for the private sector while staying away fiom programming intervention in their day-to-day &airs (Raboy, 1990). By 1966, the

CAB'S concems could be explained to govement by a former president, Don Jarnieson, who was now elected to parliament for the Liberal Party. Jamieson was instrumental in refining the 1968 Broadcast Act which was created, in part, to deal with the onset of cable and intraduced the term "broadcast undertaking" to include transmitting and receiving

'enterprises' embracing new technoiogy (Canada, 1968). A major issue that posed more questions thm answers in the Act, especially in years to corne, was the notion that broadcasting would be regulated in 'the public interest'. The term was not clearly defined

The various commissions and legislation affecting broadcasting between 1932 and

1968 document the stniggle between private and public broadcasting in Canada. The tuming point arrived in mid August 1958, when the Consecvative govement enacted the

Broadcasting Act putting private broadcasten on quai footing with the CBC (Raboy, 1990; Siegel, 1983). The CAB had grown from a loose knit goup of entrepreneurs to a highly efficient infiuential organization. By gauging public sentimen~and framing its goals as lofty democratic principles, the CAB by the late 1960's was able to achieve most of its objectives. The BBG and CRTC were conditioned with almost Skinnerian regularity to include the financial well-being of private sector broadcasting as part of their regulatory frameworks. An oveMew of the CRTC Annual Reports spanning the last three decades makes this abundantly clear.

CRTC Policy Development

The fint CRTC Annual Report dated March 3 1,1969 was submitted by Pierre

Juneau. This document is important not only because it is the first Annual report, but rather because as the first it would set the tone for the Cornmission's regulatory persona It was an oppomullty to send a signal to not oniy the public, but the major players. It deserves close examination Under the heading, Scope of Problems, the report addressed the problematic notion of 'public interest' contained in the 1969 Act by indicating that:

The CRTC's concems are about broadcasting for the public. The "Public Interest", in its full acceptation, includes the interest of the industry, for without a viable industry the public interest could not be served (Canada, 1969, p.3)

The first annual report also highlighted the importance of community service suggesting that applicants must demonstrate their applications be in accordance with the spirit of the Broadcasting Act and fit proposed progamming enrich or contribute significantly to existing program services in their respective coverage areas. If this condition was not met a licence application would be denied. ( p. 9) '

In fact, in its first year of operation the Commission denied four FM applications (CRTC

Decisions 19684 through 7), because the community seMce imperative was not met. The

CRTC also revoked the licence of ClLS Yarmouth, N.S. for fading to maintain minimum

standards in its news and public &airs programming. When Restigouche Broadcasting

Company Ltd., licensee of CKND in CampbelIton N.B., failed io program suf'ficient public

service content for its French speahng audience, the Commission placed conditions upon a

The 1970-71 Annual Report is significant in that, the Commission, for the first time cited the financial growth of broadcasting as an important economic group. Broadcasting, the

report states, grew at a rate of only five and a half per cent that year, well behind Canadian average for economic growth in 1970. According to the report, broadcasting historically outpaced the ewnomy as it did the previous year when growth was thirteen per cent. Despite increased expenses and decreased profit rnargins, AM and FM licence applications were substantially higher in 1970-7 1. There were 20 applications for new AM stations and one for

FM (Canada,1971). Also of significance that year was the introduction of new Canadian programme regulations. The Annual Report tnimpeted several points it claimed were suciesses resul ting from the regulations, the comerstone of which was the 30% so-called

'Cancon' mling goveming Canadian music.

The Annual Reports far the years 197 1 through 1974 highlight the CRTC's concem on several fronts. The 1971 document does not contain a section on radio, electing to concentrate on cable and television. There was a slight increase in network broadcasting reporte4 mostly for hockey and football. Applications for new licences jumped considerably to 55 in spite of the reported poor economic growth the previous year.

Technologicai change dominated the report issued in 1972 prompting the warning that perhaps "the traditional fûnctions of broadcasting-to serve the social and cultural growth of Canada and its multiple communities-will be even more difficult to ensure"

(Canada, 1973, p. 1). The following year the harsher language evident in earlier reports reappears. The CRTC found it necessary to re-affirm that radio fiequencies are public property. in some cases, the Commission stated, some FM stations had become "li ttk more than sophisticatecî, unattended record playea" (Canada, 1974, p. 14). The report also highlighted the major themes covered in the October 1973 public hearing conceming FM policy. The CAB'S presentation to those hearings centered on community:

The community's needs and demands, including its economic potential and geographical situation, are the elements which should determine the pnvate FM station licensed to serve it me CAB] also felt that the "regulations flowing from this policy should be qualitative rather than quantitative and should be sufficiently flexible to reflect the individual opportunities and constraints of each licensee. (p. 14)

It may be usehl at this point to consider the patterns that emerged in the 1970's with respect to AM and FM broadcasting. Statistics Canada figures (Canada, 1998) and other reports, such as the 1986 Task Force on Broadcasting Policy, detail the significant rise of FM radio beginning in the 1970's. From 1974 to 1984, FM'S share of radio revenue jurnped fiom 7% to

25%. FM listening skyrocketed fiom 17% to 41% in roughly the same period. The hardest hit were the smaller AM stations (Canada, 1986~).Technology in the form of 'AM stereo' is frequently cited in CRTC Annual Reports throughout this period as the hopefùl cure for

AM'S economic woes. History would be seen to repeat itself hhFodecades later as broadcasters, particularly the CAB, looked to digital broadcasting to invigorate lacklustre revenues.

Networking and Technology Policy

Of particdar interest in the 1973-74 hmaiReport is the expansion of the Telemedia

Network in the province of Quebec. The network, originating with CKAC Montreal, included CHLN Trois Rivieres, CHLT Sherbrooke, and CKHin Hull. The application sought to add stations in Quebec City, Rimouski and Chicoutimi. As a condition of licence, the CRTC indicated that "it expected each of the independent affiliated stations to maintain in its service the number of reporters required to maintain an adequate local and regional news service and an effective contibution to the information network" (p. 22). This appears to be the earliest example of regional radio networking in the private sector under the auspices of the CRTC which had inherited the power to license private networks fiom the

BBG. The Telemedia decision, which concerned information programrning, went beyond the seasonal professional sports network arrangements that had been the nom.

The following year another regional network was given approval to operate. Prince

George Broadcasting Ltd was granted a four year licence to transmit its signal fiom 10:30am to 6am on three affiliate stations and five low-power rebroadcasting stations (LPRT).This decision (Canada, 1974b) is significant for two reasons. It appears to be one of the first applications approving 'al1 night' networking, which later became cornmon practice.

Secondly, the decision highlights the Commission's concerns in granting LPRT licences to pnvate stations:

Although the Canadian Broadcasting Corporation has been using low-power rebroadcasting stations (LPRT) for rnany years, the use of similar stations by private broadcasten has been permitted only on an expenmentai basis. However, the Commission is now actively studying the part which such stations can play in providing additional radio broadcasting services to Canadians living in isolated communities. (p. 169)

In a related development that year, the CRTC issued a licence renewal for CKPR-FM in

Thunder Bay which included the use of automated equipment "Such equipment", the

Commission stated "should not be used to reduce staff, but to liberate personnel for more active preparation and production of local programrning" (Canada, 1974c, p. 187). In 1974, sports networkinp licences, according to the Annual Report, more than doubled over the previous year. .

The CRTC Annual Reports from 1976 to 1982 are distinguished fiom preceding yean by their length and detail. The 1976 Report, which for the first time included

Chaiman's Remarks, dropped fiom three hundred to a scant fifty pages. Individual licence decisions were no longer cited and only a broad oveMew was provided making thorough examination di fficult (Canada, 1977).

The experirnental LPRT network approved for Prince George Broadcasting in 1974 was formalized in 1976. The Commission's 1976-77 Annual Report clearly sanctioned these arrangements given the appropriate conditions. Eight radio stations were charged with failing to provide aircheck tapes in the 1976-77 pend Fines for violating Section 4(5) of the

Radio (AM) Broadcasting Regulations ranged fiom $25 to $1,000. New applications for AM and FM licences expioded in the 1977-80 period with an unprecedented 3 17 applications

(Canada, 1980). The tate 1970's also witnessed the licensing of the CKO news network

(Canada, 1976). Cowisting of "spoken word programmin& pnmady consisting of news and information content", it was an ambitious network plan that was destined to fail. Many of the eleven stations originally licensed to operate by the fa11 of 1979 never made it to air

(Canada, 1989b, p. 1). After a short one year renewal in 1989 ,the Commission revoked the licences (Canada, 1990b) and was preparing to redistribute the frequencies by August 1990

(Canada, 1!Boa)- Tne trend towards leaner AMU~Reports launched in 1976 continued through to 198 1 when the document took on a decidedly corporate look complete with Aislin cartoons. The title page that year depicted a knight in amour holding a shield emblazoned with the maple leaf in his left hand while gripping a fly swatter in his right. A portable tape machine is clipped to the knight's belt with headphones clarnped over his helmet and musical notes flowing out each ear. If the stalwart knight was intended to suggest an ensuing skirmish then perhaps the batileground would be deregulation (Canada, 19 82).

John Miesel, an academic who took over as CRTC Chaiman in 198 1, kept a watchful eye on the Reagan administration's deregdation of the FCC, and posed the question "what is the role and place of regdation in our society?" (p-ix).Although seeming to hedge his bets somewhat wncerning the outcome of American broadcasting policy,

Miesel made it clear that, in his view, Canada has always tempered its desire for economic prospenty with an overriding sense of social wncem and therefore "Deregdation a

I'americaine is, therefore, not an option open to us" @.x).

In his second year as Chairman, Miesel addressed two merissues. He called on the goverment to "'reduce drastically the present power of the Cabinet to review and/or set aside the Commission's decisions" (Ca~adaJ983, p. ix). and cited the conflict between ''the relative weights to be attached to cultural and economic factors" (p. ix). In other words, "is indumial strategy more critical right now than cultural policy?" ( p. ix). Miesel stated his position in a marner that would keep both opposing forces mollified On one hand he claimed that an industrial strategy was not included in the CRTC's statutory responsibilities, however in the next breath he indicated that. "in practice, the goais of the Broadcasting

Act ...will not be supported if the broadcasting and telecommunication industries are deprived of their economic underpimingsn (ph). Exercising diplomacy, Miesel also ternpered his acknowledgrnent of the profit motive by suggesting that "there is a tendency to attach undue weight to industry spokespersons" while individuals or perforrners have fewer financial resources (p. x).

In examining the 1983-84 Annual Report it is clear that the broadcasting industry voices were heard-loud and clear. Incoming Chaiman Andre Bureau's annual message signalled several important shifh in policy directions. Bureau stated that %e profitability of the radio indusûy as a whole declined slightly" (Canada, 1984, p-v) and was very clear on where he saw the solutions emanating fiom stating: "the introduction of new technology..including syndication and radio networks [would lead to] renewed vigour in this sector" (p.v). To fùrther encourage the entrepreneurial spirit which he saw as a requirement to face the growing technological developments, Bureau had this to say:

The Commission believes that a greater emphasis on supervision rather than strict regdation together with a consultative approach to major issues is the appropriate orientation. This approach pemiits greater flexibi1ity.A allows increased scope for industry to devote more time to the creative and marketing aspects of broadwting. (p. 2 1) The Annual Report lists several changes moving towards a more 'flexible' approach

especially with FM licences. One of these steps increased the limit in daily commercial time

to 150 minutes. Tïie emphasis on industry self-regulation and technological change is

increasingly evident the following year when, in the 1984-85 Annual Report, Bureau

indicated:

the Commission is moving away from detailed regulation. What we are moving towards is, for want of a better term, a supe~soryapproach.. .simply put this approach involves relying on the good judgement and common sense of the licensee in the first instance. (Canada, 1985, p.v)

Technology, according to the report, is held out as one of the major factors contributing to

the fact that "between 1978 and 1985 the number of broadcasting applications received by

the Commission increased by 100% (p. vi). Furthemore, a "revival of networking and

syndication could well lead to sustained and steady growth" (p-vi). The following year

commercial time on AM stations was lified with the suggestion that the audience wodd

regulate and *-actas a very effective and powerful influence" (Canada, 1986, p.xi). In the

news release announcing the 1985-86 Annual Report, Chairman Bureau issued a strong

waming to broadcasters that the increased technology and regulatory changes must lead to

"more in tems of programming quality" and "improve Canadian content" (Canada, 1986b).

While seemingly pushing broadcasters to do more, it is clear thaî for the third year in a row

"for radio, the Commission was moving to an era of less regulation in which cornpetition and

industry self-regdation become more significant govemors of the actions of broadcasters" (Canada, 1987, p.xi). The audience, listenen and commutiity were increasingly signified as consumen (p.20).

Self-Regulation

The period between 1986 and 1990 saw the Commission take further steps towards industry self-regdation. In 1986 CRTC Chairman Bureau proclaimed that his goals of the last three and a half years had been accomplished:

In each case the regdations are pared dom to the essentials, streamlined and updated to meet the challenge of a continuing technological revolution which is transforming broaddng industries. In many cases, this restmcturing extended even to redesigned forms and applications. (Canada, 1987, p.39)

The ongoing restructuring process seemed to result in a healthy growth in the number of AM and FM stations fioin 1984 to 1987, alîhough pre-tax profit for radio %vas"too low to be wnsidered reasonable" (CanadaJ988, p.vii)- In 1987, during the 20' anniversary of the

Broadcast Act, the CRTC launched a review of radio and television networking and syndication in order to develop "more flexible policies" (Canada, 19 87, p.43) '. Four part time Commissioners were appointed. Between 1987 and 1989 al1 of them coming fiom broadcasting backgrounds (Canada, 1988; CanadaJ989). As the 90's were approaching it

'~hisevent is discusxd in greater detaii later.

44 was cleir that the Commission was linking the aims and objectives of the Broadcast Act with financial performance:

in both bmadcasting and telecommunications, healthy profits are needed to insure that industry can be expected to serve Our country's social and cultural imperatives. Such profits, if wisely channelled, can and must help underpin Canada's culture and identity. (Canada, 1990, p. 15)

To encapsulate the policy discussion thus far, and before examining network specific policy, we can see the gradual, yet hatic, influence of the private sector. The intent of the Aird

Commission to naîionalize radio was dashed by the 1932 Special Comrnittee on

Broadcasting. However tenuous, the door for private radio was still open. The CAB, by couching its objectives in notions of democracy, was able to gradually have its formative agenda recognized. In 1936, the Canadian Broadcasting Act strengthened private radio which was fomally acknowledged in the 1958 Act as a valuable component of the national broadcasting system By that time the CAB had open access to the corridors of power in

Ottawa This relationship solidified in the early 60's when the regulator (BBG) msforced to put the health of the private broadcasters on the policy agenda

These developments, when coupled with the trend towards market-dominance and deregulation in later years, all but jettisoned cultural policy discussions and replaced them with an alrnost religious adherence to the 'the marketplace must decide' doctrine.

Technology, in the form of networks and automation, were viewed differently by the industry and regulator. For pnvate broadcasten the technology paved the way for cheap prograrnming; however, as reflected in the Annual Reports, the CRTC saw technology as a

cultural tool to encourage Canadian program distribution through syndication. This

atmosphere enabled the steady growth of private nehvorks and revampeâ policy that would

eventual ly redefine communi ty.

During the late 1980's and leading up to the most recent review of radio in December of 1997, there are several key regulatory events which are crucial to acknowledge. These events, or markers, are vital in that they provide a context for understanding the relationship between networking and local programming.

in September of 1986 the CRTC issued Public Notice 1986-248 which contained several amenciments to the Radio Regulations. According to the Commission, its primaq objective was to provide a regulatory framework that would ensure Canada's broadcasting system remained "strong and viable in order to place an increased emphasis on the use of

Canadian creative resources" (Canada, 1986). The CRTC asked broadcasters to "develop industry codes and guidelines in certain areas previously directly covered by regulation" (p.

3). The decision to eliminate AM advertising restrictions, it was hoped, would motivate the industry "70 generate increased support for the development of Canadian musical talent" (p.

3). In spite of interventions, such as the one fiom MP L~MMacDonald that stated broadcasten would sirnply run more cornmercials wkhout any concomitant increase in program quality, the Commission adopted the 'market forces' ap proach. Corn pe tition was cited as the primv reason why broadcasten would not allow their air time to be cluttered wi!h excess advertising.

The Commission deleted al1 references to radio networks in the new radio regulations. However, it retained the clause prohibiting broadcasters fiom affiliating with a foreign network. Temporary networks, those operations defined as a particular program or a series of programs in place for less than one month, would require applications, while extended programming arrangements would require a network licence. The CAF3 lobbied to have simulcasting restrictions modified for joint AM and FM licences in the same market but was unsuccessfid in its endeavour. The Commission stated that it "remains adamant that the objective of maxirnizing program diversity be maintained" (p. 14). However, if the CRTC was holding firrn on simulcasting, there were those who felt the regulator was still going too far with deregulation. In her minority opinion, Commissioner Monique Coupa1 criticized the

Commission's radio policy amendrnents by suggesting that:

As usual we are giving even more to the industry than they requested. While the Uiciust~~sought to have a certain flexibility to place a few more ads at specific times of the year, we are removing any hourly restrictions. In doing so we are almost destroying the diversity that we sought to establish between AM and FM radio ...The argument that the industry is in a dificult financial situation and needs some relief may be true for some marginal stations but not for the majority. @. 15)

Two years later another major policy change was announced by Chaiman Bureau. One that he claimed would facilitate more "varied, high quality and distinctive progmns" (Canada, 1988). The modification to existing network and syndication reguiations were astounding.

Network operaton were now allowed to distribute a variety of programs without requiring approval for each one. More importantly, however, "There are to be no speci fic 1imi ts on the arnount of 'non-local' programming that radio stations can use" (Canada, 1988) and in the 24 months following the denial of its simulcast request, the CAB was able to bnng the

Commission around to accepting more flexibility in late evening-early moming programming. Broadcasten were told "nor are there any rules applying to the "ovemight" programming period (fiom midnight to 6:OOam)" (Canada, 1988).

When one considers the Policy Objectives and Issues contained in section two of the

Public Notice, the continueci moves towards indusûy self-regulation are not surprising. Of the five main objectives, two sought to "clarify and consolidate regulations" and "alleviate the administrative burden for the industry and for the Commission", while another objective was developed '90 streamline and rationalue the Comission's regdatory framework".

None of the objectives cited any cornmuni*& andor cultura1 goals with the possible exception of the first objective which stated the policy would "support the use and expsure of

Canadian resources" (Canada, 1989a, p. 4).

In its surnmary of 1989 Radio Networks and Syndication Policy the CRTC oficially reversed the doctrine that had been in place for 45 yean beginning with the CRBC: The Commission regards [private] networks as a central component of the Canadian broadcasting system..the Commission regards ~tworlisas important vehicles to achieve the goals set for the system in the Act (p. 12)

Although the document States that "the primary responsibility of AM and FM licensees is to provide locally oriented and original programming" (p. 12), the policy is very clear that it

"does not intend to introduce policy or regulation limiting the level of non-local programming" $21). Rather than adrninister the level of network, or non-local content, the

Commission chose to require local licensees to spell out their levels and scheduling during their renewals.

Local Programming Policy

An important distinction must be made at this juncture. The 1989 Network and

Syndication Policy concerned itself with non-local prograrnming. No clear references were made to local content However, by definition, an increase in non-local [network] progmmming would result in a conesponding decrease in local programming. In other words, both concepts are inveaely proportional.

The Commission, in 1993, took steps to dari@ its position on local content following a cal1 for cornments the previous year (Canada, 1993). The CRTC was interested in a proposal to introduce a new local prograrnming requirement for commercial AM and FM stations. This requirement would delete the 15% spoken word programming policy for FM and require both AM and FM stations to devote at least one-third of the broaacast week to local programming. The proposal would also delete the requirement for FM stations to air three hours per week of local news. Several organizations expressed concem. L'Union des

Artistes (UdA) saw this leading to "more unifomity in radio programrning and increased use of networking in smaller markets, thereby diminishing radio's role in providing a strong local service" (p. 2).

While "encoiiraging local programming on AM stations, the Commission... decided not to tie these stations to any minium level". The regulator also moved to eliminate "al1 policy requirements respecting levels of news and spoken word" for commercial FM stations" (p. 5). Again, the issue would be examined as part of the licence renewal process.

Licensees would be required to "include spoken word material of direct and particular relevance to the cornmunity served, such as local news, weather and sports, and the promotion of local events and activities" (p. 7). Public Notice 1993-38 also produced a new definition of local programming:

Local programming includes programming that origînates with the station or is produced separately and exclusively for the station It does not include progranunhg received nom another station and rebroadwt either simultaneously or at a later time; nor does it include network or syndicated programming that is five minutes or longer unless it is produced either by the station or in the local community by arrangement with the station. (p. 6) The following November, speaking to the CAB'S annual general meeting, Presiaent and

CE0 Michael McCabe hsd no trouble giving credit where credit was due:

Prodded by our Taking the Lead Strategies and our Economic Recovery Plans, the CRTC has moved to eliminate most of the policy and regulatory obstructions to radio's operation in the marketplace. Some remah, but the CAB continues to press for change. I believe that it can be fairly said that the CRTC has come to understand the problems of radio and is moving to do what it cm to help. The problems that remain are marketplace problems. (McCabe, 1993, p. 3)

If the Commission had come to understand the marketplace problems ofradio, it wasn't doing enough by CAB standards. By the 1995 CAB convention, McCabe was calling for "a

Regulatory Revolution" (McCabe, 1995, p. 2). Aithough admitting much had been accomplished, McCabe complained, "we have achieved it inch by grudging inch. We have been nickefled and dimed and today we are a day late and a dollar short" (p. 2). What was needed, according to McCabe, were "hld policy and regulatory partners who will have vision and passion to help strengthen radio's contributions to Canada" (p. 2). Less ihan a month later, CAB members were learning that Canadian broadcasting interests would be able to mise money by selling more of their non-voting shares to foreign interest (Enchin,

1995).

McCabe's regulatory revolution was one step closer to reality shonly aRer the CAB convention in 1995. In November the Commission issued a cal1 for comments conceming

Local Management Agreements (LMAs) in Public Notice 1996-13 8. An LMA arrangement between two licensees enables both radio stations to share certain rescurces thut hitherto

were competitively separate, such as sales andlor engineering. Some LMA's had already

been granted on a case by case basis as long as the Commission was assured that both

stations were able to keep distinct and separate prograrnming, news and management services. Ownenhip guidelines were required to be maintained and ai least one of the stations had to prove financial difficulty. The CAB responded to the call by suggesting

.LIMASwere necessary for radio to "regain econornic viability, and to maintain local radio seMce and divenity in programming" (p. 3). Half of the submissions originated from outside the industry and expressed wncem about the potential for monopolies and artificially-inflatedadvertising rates.

Sudbury MP Raymond Bonin wamed that the Commission was neglecting '%e principle of cornrnunity interest" (p 4). While admitting the CRTC could keep a watchful eye on distinct news and prograrnrning services, Bonin claimed it failed to "impose measurable and enforceable performance critena and requirements on the licensees" (p. 4). As a result he said there was no assurance "that a management agreement neither lessens competition in a market or adversely affects the cornmuni@interest sacrificing qudity in, and responsibility for, Ilocal programming" (p.4). Similar concems were expressed by Industry Canada's

Cornpetition Bureau.

Perhaps the rnost insightful comment came fiom the Conseil provincial du secteur des communications du Syndicat canadien de la fonction publique (CPSC/SCFP). The organimiion clairned it illusory to believe such agreements did not result in "pseudo-

cornpetition". On a &y-to-day basis, the organization wvondered, would joumalists,

'production teams and sales departments employed by the two parties operate as if they were

in a genuine competitive situation?

The Commission's decision indicated that "the much-needed flexibility LMAs provide to radio licensees in their efforts to swive in an increasingly competitive multimedia enviromnent ouîweighs the concems raised in the submissions discussed" (p. 5).

Local Management Agreements moved h-om king evaiuated on a case-by-case bais to being standardized without any of the parties to an LMA having to demonstrate financial hardshi p.

A close examination of private radio's financial history would be a study unto itself and certainly worthy of exploration. Although such detailed scrutiny is outside the scope of this thesis, two press reports fiom 1995 and 1996 indicate that some broadcasters were faring quite well. Western International Communicahons (WC) was reported to have earned a share increase of 43.5% (Moore, 1995). The same article States the shares of major broadcasters jumped over 37% in the fint ten months of 1995, outpacing the growth of the

Toronto Stock Exchange which registered a 5.8 per cent boost "Its not an illusion", an analyst is quoted as saying, "It's a real improvement in performance" (1995). Alrnost a year later to the day, another press report indicated WIC reported a year-end profit of 8.3 million on a revenue of 459 million dollars (Broadcasting-Canwest-Global-Profits,

1997~).In some cases, the growth in the CEO's compensation outpaced that of the shareholden (Surtees, 1997). Brian Chater, President of the Canadian Independent Record

Producen Association (CIRPA), has repeatedly challenged the industq7saccounting. Citing the fact that very few English-speaking stations have gone off the air pennanentiy, Chater says "the CAB'S figures resembles the act of an old-time striptease artist-what they don? show is more interesting that what they do" (Fraser, 1997)~.According to more recent CRTC statistics, 1997 saw Canada's private radio stations register a 500% increase in pre-tax profit over 1996, from 8.6 million dollars to over 51 million (Brehl, 1998).

The industry reaction to the standardization of LMAs was predictable. It was hailed as "one of the most positive moves in the industry's history" (Hyatt, 1994, p. 13) and a policy designed to stave off financial disasters which were ofien portrayed using biological metaphors:

Like most other cases the Halifax LMA [the first] was bom to stop the bleeding. Both the Newcap stations and SUN-FMwere losing money (p. 13).

CAB Vice-President of Radio Jane Logan urged broadcastes to take advantage of LMA7s regardless of a station's financial situation:

2~sa former broadcaster 1 know of at least one instance where a Vancouver radio station incorporated a separate company to administer certain promotional activïties. Any fiuids generated fiom these projects were kept separate for accounting purposes. Thc CRTC policy not only opens the door to LMA's in larger markets, but also allows stations that are not in financial trouble to hook up with cornpetitors... this is an important financial tool. Stations in every market should be able to use. it proactively (p. 13).

Having achieve4 success in lobbying for LMAs Logan also hinted that the CAB's next effort

would be even more ciramatic:

Where LMAs do work, Logan sees them as a stepping Stone to the Amencan- style multiple-licence ownership, where a broadcaster can own more than two stations in any given market (which is currently forbidden in Canada under current CRTC regulations). The CAB is "working" on the CRTC to allow that, she says. (p. 13).

The CAB effort to move beyond LMAs is impressive. When the Commission announced that

it would be reviewing its policies conceming radio (Canada, 1997a) the CAB's presentation

called for substantial changes to the Canadian codent regulations and move towards

multiple licence ownership (CAB, 1997). The CAB package contained a study by Granum

Communications, entitled "The Impact of Duopoly on the U.S. Radio Industry". Whether the CRTC rnoves towards John Miesel's 'deregdation a I'americaine' remains to be seen.

However, what was dismissed out of hand as 'no option' in 1982, is now cleariy on the table.

This was evidenced merwhen, in a Montreal speech on Apnl 1,1997, CRTC Chairperson

Francois Bertrand could not have spoken with more clarity:

the CRTC wants to expedite the transition to convergence and open cornpetition. Our approach to open markets and deregdation is based on the need to put in place transitory mechanisms before the deregulafedmarket becornes a reality. [emphasis added] (Bertrand, 1997) Since the mid 1980's (some would argue earlier) the eçpoused theocy of the CRTC policy conceming local involvement appsto openly conflict withthe reality of policy irnplementation. In contrast with earlier decisions, the Commission chose not to impose specific conditions on the level of local programming. Moreover, the regulator now indicated that networks are viewed as fulfilling the goals of the Act, precisely the opposite of what had been stated in previous years. The very words used by the Commission to define

'local' clearly illustrated that it is not content that is important, but rather the source, or origin, of the prograrnming. In other words, it is not what is said, but rather where it is coming From that is panunount.

The discussion in this chapter has not addressed, in any great detail, CRTC efforts to reguiate Canadian musical content; the most notable attempt resulting from the 1968

Broadcasting Act. This omission is not to suggest these efforts have been futile. Indeed, the collective benefits that have accrued to Canada's music industry have been remarkable and are ofien cited as a regulatoly success stoiy (Fraser, 199%). However, while the Canadian content radio regulations, implemented in 1970, do not specifically address networking and cornmunity policy, they do provide a giimpse into CRTC policy prioritizing.

As we've seen, the CRTC mapped it's early strategy around two central themes: the preservation of Canadian culhire and protecting the economic interests of private broadcasten (McPhail & McPhail, 1990). The CRTC witnessed the intrusion and domination of Canadian radio and television by Amencan programming and also stmggied to niace cable and satellite technology within an existing regulatoiy hamework The

Commission's so-called 'cancon' regulations were national in scope and did not address local or comrnunity concems becaw the emphasis as upon music as a programming component and not information. To be sure, the Commission did stipulate different information requirements for AM and FM radio stations. FM, as discussed earlier, was required to broadcast minimum levels of spoken word programm ing ;however, the regulations did not speci that these segments had to be local in nature. By 1983, many of the regulations conceming information and spoken word programming had been placed in a new licence category cdled 'Description of Programming7:

This section is not a condition of licence but permits applicants to elaborate on their proposais in a nuqber of ares including network affiliation and sirnulcasting, spoken word, music description, advertising policies, automation and prognunming schedule. (Canada, 1983) [emphasis added]

In mcing the evolution of broadcast policy development in Canada it must be rernembered that the original model was based upon a distinctly public system. The Aird Commission sought advice fiom BBC Chaînnan Sir John Reith pnor to drafiing its recornmendations for a Canadian broadcasting system. The benefits of nationalized radio as extolled by Reith exerted a strong influence upon at least one of the Aird Commissioners (Raboy, 1990). With the growing influence of the private broadcasters in policy development, through the CAB, the public broadcasting model became a public-private hybrid However, the language of the Broadcast Act, particularly section 3, (Canada, 199 1) still reflects the cultural aims and objectives identified with public broadcasting.

It would seem that John Meisel's culture vs industry question posed in the early

1980's remains unanswered, certainly wuesolved, although there have been occasions, such as the early Telemedia network in Quebec, where cultural and industrial interests appear to have converged. IV. NETWORKS & TECHNOLOGY

As we've seen, broadcasters continue to signify networks and technology as touchsiones to prosperity and enrichment. However, what has not been discussed thus far is how broadcasters are utilizing technology in designing networks. It seems appropriate, then, to provide an overview in order to offer a context before exarnining the case study in the final chapter.

One of the first Canadians to seize upon broadcast technology was Harold Carson.

Shortly following the invention of the transcription in 1934, he reaîized that by combining a group of stations, supplying them with transcriptions and then launching intensive sales efforts "real money could be made" (Weir, 1965, p. 90). Another company, Al1 Canada

Broadcasting Systern, began to operate a network and transcription business at about the same tirne. The two firms combined to forrn All-Canada Radio Facilities Limited which held shares in eleven stations, ten of them in the West (Litt, 1995). More recently, broadcast technology closely parallels the increasing reliance society has corne to place on cornputers and the digital domain. Record players have been displaceci by CD players. Typewx-iten have been moved to basements and storage lockers to make way for word processors. Letten are inaeasingly being mailed electronically. In a 1996 survey of BC radio stations, the British

Columbia Institute of Technology (BCIT, 1996) found that of 42 stations surveyed, only three indicated they were still using records and al1 but two outlets were editing digitally.

Reel to reel tape machines and -tables, the workhorses of the broadcasting industry, have al1 but disappeared. The same survey found that 30 of the stations subscribed to some form

of regional (provincial) network. Another survey by Loyalkt College in Belleville Ontario

' reported similar results (Broadcasting, 1996). Several examples of the application of this

technology follow.

The Transition to Digital

The Okanagan-Skeena group of 16 small and medium market stations in BC

exemplifies the conversion fiom analog to digital. According to the companies chief

engineer:

Almost al1 prograxrming for the Skeena group stations is recorded on cornputer hard &ives and loaded into four serveroone each in Terrace, Penticton, Kelowna and Vernon. Shows are recorded in a fraction of "real time" as only the actual voice tracking need be cornmitted to disc. The rest of the programming, including music tracks, ad spots, station promos, contests etc., can al1 be retrieved from one of the serves by each station More king aired (Davis, p. 17).

As soon as programming is 'retrieved' in a digital format, which is the analog equivalent to

being 'played', distance becornes irrelevant The quality of networked content is

indistinguishable from locally generated programming. To use a simplified example, a 60

second commercial recorded on tape (analog), fed through a telephone line and played back

at a remote location will have the characteristically 'timy' telephone quality. However, the same announcement recorded digitally can be uploaded by computer, transmitted through

the telephone system, downloaded and played at a distance with no loss of quality.

Traditionzlly, remote broadcasts would require several people to set up and operate

an event since music and commercials required human intervention. However, once

programming is &gitized, it can be tnggered remotely. Since tumtables have been eliminated

and replaced with audio files on a computer, the remote broadcaster can conduct "a full on-

location show with a microphone, a laptop computer and the tool that holds the whole

system together-a modem" (p. 17).

A Bmaby-based firm, Digital CourierInternational (DCI), is using digital technology to deliver programming across North Arnerica The two-way distribution network operates 24 hours a day and seven days a week. Digital Courier uses an integrated seMces

digital network (ISDN) to connect radio stations and advertising agencies. Once an announcement is produced, it is maiM electronically and deposited in client computer

mailboxes. Shipping, storing and duplicating costs are eliminated and product can reach most of the major stations in North Arnerica with a keystroke. Dome Audio Video Effects

(DAVE) employee Vladmir Nikolic, whose fimi produces up to 50 commercials per &y, says

We don't deal with making hundreds of copies and doing the dubbing and shipping that goes with it. And with DCI, the audio quality is far better than we could make on tape. There is no distortion... The total investment needed to establish the DCI system at DAVE Audio was modest "It was maybe a couple of hundred bucks". (Lampheir, 1997, p. DI 1)

* Digital technology has also spurred the development of several specialized broadcast

scheduling programs enabling radio stations to either partially or fuliy automate. The software is also capable of integrating with network prograrnming. The Pristine Systems

package is able to coordinate commercials from program logs and integrate music and news

scheduling (Pristine Systems, 1998). The cornputer, however, does more than simply coordinate what program is played, when, and for how long. The music scheduling software is cornplex. Selections are coded witb several designations such as tempo, vocal gender, current, recurrent, gold or Canadian content. A skilfid music director can ensure that a Paul

McCartney Song is not selected, say, within one hour of the Beatles. Other selections, such as

Canadian content, can be designated to only nin at certain rimes of the day. The software sorts through the music database, shuffles the musical deck as it were, leaving tirne for the requisite nurnber of commercials and news.

The disc-jockey is fast becoming an anachronism. Since radio by its nature is driven by the clock, everything cm be timed out and pre-recorded. A system such as this enabled

CKAY in Duncan B.C .to set a station record in 1996 for the longest time running entirely on automation. "For a full 65 hours over the New Year's weekend, everyone had a holiday, except for a few people who came in to update the weather" (Licata Meardon, 1996, p. 14).

The digital sound quality of the prograrnming eliminates the concem over distance degradation and live presence. In other words, content aside, there is no perceivable difference in the audio integrity that would indicate that whether programming is originating outside the community or that the material has been voice-tracked. When cornbined with an efficient delivery system, such as satellites, it is possible to operate a broadcast network that incorporates several of these elements.

The Commission's fùll definition of a radio network can be found in Public Notice

1989-3.However for the purposes of this thesis it will be helpful to delineate national networking FroB local and regional networking. National networking is larger in scope, with programming carried to more than one, usually several, provinces. Regional networking is provincially-based with programrning haMng the potential to address regional issues. Local networking, which rnay at first glance seem to be a contradiction in ternis, is descnied as two or more stations, usually with common ownership, confined to a smaller geographical area. For example, Valley Broadcasters Ltd (Canada, 1997) operates a local network between

CKGF in Grand Forks and CKQR in Castlegar and forms the basis of a detailed case study in the next chapter. However, it may be usehl to briefly consider the technology supporting its local networking?

Castlegar serves as the point of origin for the local network with Grand Forks where the

CKGF ( 6amlOam) morning show operates 'by remote'. This is accomplished by stonng

I am indebted to former CKQR Chief Engineer, Kevin McKinnon for his assistance with this discussion. The reader is reminded that this technology, while stnl in piace, rnay be used differently given that McKinnon has lefi CKQR. the music and comrnercials on a computer in Castlegar and iriggering them in Grand Forks.

CKGF connects to the network server in Castlegar by modem using a telephone line and the on-air person then selects and plays the appropnate programming. The announcer's voice in

Grand Forks is combined with the music fiom Castlegar. Following the moming show (IOam to 6pm), CKGF cameesnetworked prognvnrning fiom CKQR with local (Grand Forks) commercials inserted by the Castlegar software. Listenen in Grand Forks are able to call their local radio station using the sarne telephone number that has been in place for years, except that now in the absence of local staff, the cal1 is received in Castlegar using call forwarding (personal communication, May 16,l 997).4

Private Regional and National Networks

As Chief Engineer for the Satellite Radio Network (SRN) from 1987 to 1996, Jack

Wiebe was responsible for designing the largest regional radio network in western Canada at the tirne (personal communication, January 23,l998). SRN operated two stereo services, one country and western (C&W), the other adult contemporary (AC), as well as a news audio and wire senrice. Clients were provided with satellite dishes, receivers and decoder boxes at no coa SRN used the BC Knowledge Network's KU-band uplink on the campus of the

University of British Columbia The decoder box wodd start or stop the equipment used to insert the clients' local messages automatically, although this technology was eventually

4 These stations are discussed in more detail in the chapter five case study.

64 replaced by digital bit streams. SRN began as a BC regional network and grew to over 130 clients across Canada. The network required local affiliates to reserve up to four minutes an hour for the exclusive use of SRN. This tirne was utilized to air network commercials which were sold both natinnally and regionallf (T. Gupta, persona1 communication, January 27

1998). SRN was purchased by the Pelrnorex Radio Network (PRN) in 1996.

PRN is the largest networking and syndication service in Canada with over 200 affiliates. The Mississauga Ontario-based company offers severai formats which according to the company, are "seamless" when combined with local stations:

The technology allows smaller stations to give the illusion that the big name announcer really has flown in to northern Alberta to read the news ...the . listener has a hard time telling when the real station stopped its local programming and went with the network (Bugailiskis, 1996, p. 10)

The technology behind Pelmorex is similar to SRN. The arrangement provides Pelmorex with the opportdty to sel1 national ads which are contained in the networked prograrnming.

The only limiting factor according to a Peimorex executive is "the formats themselves.

Whîle you may wish for a brighter sound another station would want something softer"

(P. 10).

or are excelient overview of the network 'barter' system see Karen Buzzard's Chatns of Gold PP- 4-9 The Churn Satellite Network (CSN) distributes the popular Dr. Launi Schlessinger program

(Dr. Laura) and daims that 10 per cent of the calis tu the US. program originate fiom

Canadian listeners. CSN distributes the program to over 30 Canadian stations.*The Dr. Lam show has been estimated to generate 42 million dollars (CND) per year, based on 280 station-contracts. Her national sponsors include Bayer Aspirin, Budget Rent-a-Car, AT&T and Dentyne. The media-wise Schlessinger has also diversified and now writes a newspaper column (Fairbridge, 1995; Lundren, 1996; Province, 1997).

An industry trade publication (Fairbridge, 1996, p. 10) has reported network benefits as

a cost-efficient programming option

helps smaller markets who do not have the taient or programming

bank available

major market stations duce prograrnming production costs

advettisen get target marketing, national exposure, brand

identification, and cost effectiveness

The article states more than 53 per cent of U.S. radio stations have network affiliations.

Canada, it reporteci., is 10 yean behind the Americans. Of coune, using the U.S. as a benchmark for pnvate radio professionalism is nothing new. The fim signs of Canadian radio copying their Amencan cornterparts began in 1928. Stations at that time "eagerly sought to emulate the bigger stations across the border in attracting sponsors and part of the new networks" (Peers, 1969, p. 12). Advertken were much iess interested in Canadian progâms because of their hi@ costs aduncertain popularity. The interest in U.S. programming continues unabated. In addition to Dr. Laura, CSN also carries: Dr. Joy

Browne, the Susan Powter Show, the Joan Rivers Show and Coast to Coast with Art Bell.

Other companies are importing Amcrican-based pre-recorded syndicated programming

(Broadcasting, 1997a). This is not to suggest that these delivery systems are bereft of

Canadian content; only that there has ken a major influx of Amencan programming, with some of it being extremely controversial.

On September 2"6,1997 CHOM-FM in Montreal and Toronto's Q-107 went to air with The Howard Stem Show onginating from WXRK-FM in New York City. In keeping with his abrasive style, Stem insulted Quebec's francophone population which resulted in more than one thusand written cornplaints to the Canadian Broadcast Standards Council.

The CBSC was created by the CAB in 1989 as part of the self-regdatory effort. The CBSC subsequently ruied that its voluntary code on ethics, Molence and sex-role portraya1 had been breached (Harris, 1997; Fine, 1997).

In keeping with the code both stations aired the decision in prime theand notified complainants accordingly. Q-107, a WIC station, announced a four-point plan to monitor the

Stem program and promised to devote $200,000 dollars to development of Canadian radio talent CHOM's program director told "Canadian cultural purists" to "unplug from the internet, cancel the cable subscription and watch the (CBC7s)"Road to Avonlea" (Broadcasting, 1997b). The CRTC was told by others (bat "stations shouldn't be able to

. - make money by breaking the law" (CRTC, 1997).

Impact of Broadcast Technology on Comrnunity

What is clear from exarnining radio's use of broadcast technology, be it transcriptions

or satellites, is that four particular patterns result First, techw logical achievements that blur

the distinction between local and network content are lauded as 'seamless' without regard to

content. How sornething appears, or sounds, takes precedence over what is said It is 'style

over substance'. At the further risk of appearing cynical there also seems to be an element of

pride in 'fooling' the listener into perceiving that programming ociginating fiom outside the

community could actually be local matenal.

Second, if mal broadcasters believe that they should irnport the 'big' urban voices

through this technology, what does that say about how wrnmunities are identified? How will

one community 'sound' when compared to another? A DCI system not only allows for the

efficient movement fiom commercials and short form prognunming, but it also allows

smaller stations to import more expenenced talent from larger markets.

Third, a major consideration is profit In each case the technology has been used to

expand private radio's advertising base. In the case of networks, with each station-affiliate signed up, the nurnber of consumen increases. At the local level, staff can be reduced or eliminated. Of the 21 affiliates listed as belonging to the WCRadio Network in September of 1997, over half did nof run local news afler 6pm. Many have dropped news on weekends and holidays (Ashbridge, 1997).

It is important to remember that the technology also enables local broadcasters to stage live remote broadcasts with fewer resources. It is no longer necessary to pack trailen and vans with heavy tunitable-equipped consoles. The technology also requires less coordination between the remote broadcast site and the radio station, since the remote announcer can use a laptop cornputer to ensure that the necessary music and commercial segments are played. The technology has the potential to facilitate and enhance fiuther local programming. Live coverage of civic events such as parades or municipal council meetings could be arranged at less cost However, if there is indeed an increase in local programming as a result of technological developments in broadcasting, it is not readily apparent V. NETWORKING AND COMMUNITY

As the reader is no doubt aware, with the exczpion of the firjt chapter examining notions of community, this study is grounded in policy, regulation and technology. It seems natural then to investigate how these variables CO-existin a community with access to a private radio station and how they affect comrnunity access.

The generd parameters of this case study are threefold. Fint, in order to gauge the arnount of access a community is given to a radio station, it seemed appropriate to locate a small single-station community in place throughout the regdatory changes of the 1980's and

1990's. Second, it was necessary to choose a radio station that developed what have been previously descni as either local or regional network ties. Third, I felt some farniliarity with the community was necessary to provide Merinsight beyond simply basic dernographic data. Finally, it was also felt this area should be reasonably close to major mnsponation links to facilitate travel arrangements if required.

Once these prelirninary requirements had been addresseci, it was necessary to determine whether suf£kient data existed to indicate a level of comrnunity contact both before and after the various changes in policy and technology. Furthemore, any impact resulting fiom these fluctuations, especially concerning policy, could only be detailed if members of the community agreed to make themseives available. Othenvise, it was felt this examination would lose a? important emotional component6.

Ownenhip and Community

The community chosen for the case study is Grand Forks, BC and radio station

CKGF, although it becarne apparent that it was necessary to cast a somewhat wider net in this endeavour. The original Grand Forks licence held by Boundary Broadcasting Ltd, was purchased by the local cable Company which, in tuni, purchased CKQR Castlegar owned by

Valley Broadcasten Ltd. The two stations were then networked. By examining the CKGF and CKQR public files at the CRTC regional ofices in Vancouver, it was possible to assess changes in cornmunity programming resulting from the delegation of local control to the network. Since the two outlets were inextricably tied, it seemed worthwhile to include

CKQR material where appropriate.

According to the last census (BC Stats,1996), there were 12,398 people living in the

Grand Forks area which lies between the Okanagan regioa to the West and the Kootenays to the east Nearby Christina Lake, a 10 minute drive, is a popular summer resort. The area's

&nie reader is reminded that a case study by definition is not meant to be a statistical analysis, in this examination there is no intention to suggest that ail cornmuniries with access to a local radio station have undergone identical experiences. That being said, however, there is ample evidence to suggest that further research is required in this area This is discussed Mer in the thesis summary. economic base is Iargely agiculture and resource-based. The 20% sample data shows that of the 675 people surveyed who speak one of the 18 non-official languages, 520 indicate a working knowledge of Russian. This is due to the influx of Doukhobor immigrants to the area over the past 100 years who fled religious penecution in Russia The cultural impact of the Doukhobor population upon the sunounding area is readily visible to anyone visiting the area. The tom's slogan is "sunshine and borscht" and is proudly displayed on a roadside sign at the entrance to the valley cornmunity. Castlegar, a larger community of 6,920, 94 kilometen to the northeast, and also has a sizable Russian minority (BC Stats, 1997). Its economy depends almost exclusively on the local Celgar pulp mil1 and the nearby Cominco smelter in Trail.

At this juncture, it is necessary to provide an overview of the various ownership changes in these radio stations. Again, the primary focus is on Grand Forks; however, as will become apparent, the histories of both Valley (Castlegar) and Boundaxy (Grand Forks) are interdependent. Changes in nehvorking and cornmuni@are more readily apparent when set against a political economy or ownership template.

Although there had been occasional changes in ownership at boih stations previously, we begin in 1989 with a two stage transaction involving CKGF. In Decision CRTC 89-3 10

(Canada, 1989), the Commission approved a noteworthy share transfer. Majority shareholder

Kenneth L. Davis sold his shares (60%) to Wil fied Warner, the rninority shareholder.

Wamer, in tum, sold his 40% to LW. Gillespie, who became the new minonty shareholder. This transaction is significant for two rasons. Firstly, Gillespie owns 100% of County

Cable, licensee of the Grand Forks cable system. Secondly, the Commission deemed the deal

to be in the public interest in part because "The licensee has undertaken to pr~ducemore

cornbined programming on CKGF and the local community cable chamel" (p.2). The

decision is dated June 5, 1989.

Two years later, on July 12, 1991, Boundary Broadcasting (Gillespie and Wamer) applied to purchase controlling interest in CKQR Castlegar (Canada, 1991a). Arnong the

benefits of the ownenhip changes cited in the application were a cornmitment to spend over

$100,000 to improve signal quality. The new ownen also stated that:

It is also our intention to extend 60% to 80% of the programming fiom CKQR to CKGF to increase the local programming. This improvement in prograrnrning was previously not viable on CKGF.Castlegar and Grand Forks also have ethnic ties as both commrinities have a large population of Doukhobor's. The current staff and management at CKQR are very familiar with the local ethnic community and Mr. Wamer has 15 years experience in developing programming. As an example CKGF broadcasts a russian [sic] language newscast daily, if this feature is of interest to the Castlegar community we would work toward incorporating it in CKQR's programming. (P.18)

The letter went on to Say there was an expectation that there would be some cost swings as a result of the ownership change. The Commission approved the tramfer (Canada, 199 1b).

The last major financial transaction came in Apnl of 1996 when J. W. Gillespie (County Cable) became the sole shareholder in both Valley and Boundary (Canada, 1996) taking over

CKQR and CKGF.

There were several letters exchanged between the Commission and Boundary

surrounding the 199 1 share üansfer in which Wamer and Gillespie purchased effective

control of CKQR Castlegar. CRTC Licensing Analyst Robert Cousineau requested four

' points of clarification (Canada, 199 1a, p.29). Among hem:

1. ClariQ to what extent will CKGF progiamming be replaced with CKQR programming

2. Clariw extent of 'shared facilities and staff and staff reductions in Castlegar.

In his response to the above points, Wmer explained it was "our intention to provide live

programrning from 6am to lOam, 12 nom to lpm and 4:30 to 6:30pm.Al1 other

programming will be of a regional nature originating fiom CKQR". Warner stated that the

equivaient of two full time positions wodd be eliminated as a result of the transfer (p. 29).

Local Programming Reductions

Mer further examinhg the application and Warner's reply, the Commission

responded less than a month later with several inquiries. CRTC Licensing Manager lim Clavering turned his attention towards the reduction in local programming hours in Grand

Forks:

Based on the licence renewal application for CKGF, as scheduled on the February 12,199 1 Public Hearhg in Vancouver, the amount of locally produced programming on CKGF is entered as 89 hours 30 minutes. How will the reduction in local programming on CKGF,to either 49 hmrs or 35 hours, qualifjms a benefit to the Grand Forks community? (p. 35)

Clavering also requested the current sanglevels for news and programrning in Grand

Forks. The reply was insighdul to Say the least. In his response, Warner stated that local

programming hours wodd be 42 hours weekly. Sunday programming would originate from

Castlegar. In addressing the 50% proposed reduction, Warner explained that "the effects of the new GST [have] driven local shoppen to Cross [sic] border shopping in record nurnbers". "[Tl his market", said Warner, "can not support the nearly 90 houn of local programming our station provides weekly7*(p. 37). If shoppen were indeed heading south in droves, Wamer saw network technology as one way to keep them in BC:

1 must point out that the programming from CKQR will incorporate a split cart system which will allow us to continue the prograrns and features that have becorne popular with Grand Forks listeners aud advertisen... The local consumer can also benefit by being aware of market information and product and service prices in the Castlegar, Trail and Nelson areas. The CKGF listeners often tell us they feel local prices are high, and not cornpetitive with other large areas. (p. 37) Wamer also stated that CKGF prograrnming and news staffinç levels would consist of two fidi time positions. The fol lowing November the CRTC approved the trans fer. Public documents list the share purchase price for CKQR as $800,000 (Canada, 199 1b).

An important distinction must be drawn here. The correspondence conceming the share transfer is illurninating in that the potential new ownen are obligated to outline their operational policies. However, the licence commitments goveming program and staffing are still in place until such theas the undertaking's licence is renewed Although Warner's correspondence indicated a specific direction with regard to CKGF canying CKQR programming, he was bound by terrns of the existing licence. CKGF's licence came up for renewl in August of 1993.

CRTC Senior Licensing Analyst Michel Dalrnont sought clarification on several points in the CKGF renewal. Local prognunming, as expected, dropped- from the 89 hours and 30 minutes to 57 hours. Dalrnont wanted to know why and cited the new policy concerning local programming containeci in Public Notice CRTC 1993-38 which required licensees to "ensure spoken word of direct and particular relevance" was included in programming. Sewndly, Canadian Talent Developmeat (0)past accomplishrnents and proposed commitments were not properly articulated in the renewal (CRTC, 1993, pp.70-

71). Warner's response conceming the number of hours was simple and direct. The reduction in local programming was due to an increase in network content. Again, as in 199 1, the downturn in the local econorny was cited. In addressing the relevance issuc, Wamer stated

"we have 5een careh1 to maintain those spoken word features that have special relevance to the market" (p.79). CKGF's CTD was outlined as a "one hou program of Canadian performers weekl y.. .[featuring] intewiews w'th performers and in fo mation on their weers and where their product cm be purchased" (p.77). In addition, the station committed itself to an annual tribute to Canadian perforrners every Canada Day.

The simplicity and directness of Warner's response to local prograrnming hom prompted another letter fiom Dalmont on August 26. The question was repeated almost verbatim. This time instead of a few sentences, Wamer responded with several paragraphs outlining the "exclusively local newscasts" four times daily as well as several cornrnunity information features. The benefits of digital technology now meant that CKGF was able to

"cary these community information features at their regular times ... during network programrning" @. 82). The licence was renewed until August of 1997 (Canada, 1994a).

During the most recent licence period, and proceeding along a parallel track, another important application ernerged. CKQR applied for and subsequently received permission to operate an English-language network between Castlegar and Grand Forks (Canada, WBb).

The licence allows for 74 hours of network time between CKQR and CKGF.This application was alluded to, but not addressed, in the 1993 licence renewal application for

Grand Forks,

Scarcely more than a month afier the CKGF licence was officially renewed for several years ,Wilfied Warner wrote to then CRTC Secretary-General Alan Darling to noti& the Commission of a Merreduction in local programming due to undefined "econornic realities" (Canada, 1994b):

While the technical improvement occurred [with the purchase of a new transmitter] the financial side of the Company did not improve therefore 1 felt we had no option but to reduce operating expenses by reducing local programming. This was accomplished by moving the CKGF digital computer to CKQR and splitting off cornmercials separately to CKGF fiom the computer now located in CKQR (p. 1)

According to Wamer's letter, "Staffing at CKGF now stands at 2 full time positions" (p. 1) described as a manager/salesperson and a full time newsperson. As a result of the increased networking Wamer indicated that local programming would now be reduced yet again to 11 hom and 34 minutes. included in the list of programs and features that would be retained

the russian Language [sic] program broadcast Monday through Friday consisting of a newscast ~(ltllll*ogapproximately 8mins [sic] followed by Traditional [sic] Russian songs performed by local chois. A total of 15 minutes daily for a weekly total of 75 minutes. (p. 2) Wamer went on to Say that the CKGF studio building in downtown Grand Forks had been sold and the proceeds used tc pay down the company's long term debt. It is not cleu whether a portion of that debt included the new transrnitter. The new studio facilities would now be located in the County Cable facility where office costs could be shared. As if to allay any feus on the Commission's pari that CKGF 's local community involvement would suffer,

Warner stated that "800 phone lines which allow clients to cal1 toll free should they need to talk to our Trac or accounting departments in Castlegar" (p. 3) had been installed. Local inteniews with elected Grand Forks officiais would be done "2 to 4 times monthly":

To sum up I believe CKGF listeners have the best of both worlds. Technically with a new transmitter and our STL [studio transmitter link] network the station can deliver a first rate signal. From a prognunming stand point Listeners [sic] enjoy a regional station with a large focus on local information and news prognunming. (p. 33

The CRTC response to Warner was succinct. The "downsigng" to 1 1 hours and 34 minutes wvas acknowledged (Canada, 1994c, p.1) as was its policy which does "not establish minimum levels of local programming for AM stations" (CRTC 1993-38). The

Commission stated it wanted to be kept informed of any merreductions in local programming. The Commission did not have to wait very long. Another notification followed eight montlu later. The Russian Newscast

As stated at th6 outset of this chapter the objective of this case study has been to document

the confluent affects of broadcast policy, networking and technoiogy upon the notion of

community. During preparation and subsequent research for this case study it became

apparent that these forces had corne together to eliminate a valuable and historie

contribution to the Grand Forks community-the Russian newscast .'

Russian newscasts began on CKGF in June of 1969 with the original owner. These

programs consisted of regional, national and international stories rewri tten fiom newspapers

and later transmitted on the wire service. They were translated and voiced by the Russian

newscasters. Local stories were reportai as wel 1. Generally, pre-reco rded Russian music

often featuring local choirs was aired following the newscasts which ran six days a week.

These programs were aired as a public service (personal cornmum~cation.,23 January 1998).

As has already kennota these programs have been cited in licence renewals as evidence of CKGF's community involvement and contribution The history leading up to the cancellation will be outlined followed by brief analysis.

'1 am indebted to two Uidividuais, Steve BabakaBad BiU Kootenekoe for their assistance. Babakiff is the adminisirator for the Union of Spirinial Communities of Cbnst in Grand Forks. Kootnekoff has been a Russian broadcaster since 1980. Babakaiff supplied several pieces of correspondence sunoundhg the cancellation of the Rwian newscast These letters are attached in the appendix and wiil be cited accordingly. In eady 1995, CKGF infonned the Union of Spiritual Communities of Christ (USCC)that due to a wonening financial situation, the station could no longer afford to carry the newscasts as a public service. However the station said it would make time available if the

USCC could find its own Another letter, four months later, reminded the USCC that no sponsor had been found and imposed a deadline. This correspondence also reveals that the Russian programming presented a problem for CKGF's networking arrangernent~.~

CKGF's June letter to the CRTC informed the Commission that the Russian newscast was being dropped.1° That letter was also copieù to the USCC in another communication in

July, informing the group that the last Russian newscast would be on Friday July 28? The

USCC received no response to its letter seeking clarification From the CRTC (persona1 communication, 22 January 1998).

In examining these letters, several distinct patterns emerge. Fint, the Russian mwscasts appar to have transfomed hmprogramming that resided in the public se~ce announcement @sa) domain into an expensive feature requiring sponsorship. Clearly, in looking at the January and April conespondence, the station expected the USCC to assume responsibility for selling the programming. At times the lettea take on a mean-spirited quality. On one hanci, the station tells the USCC that it "recognizes the value in this program

*sec Appendix A

'~eeAppendix 6

''~ttachedas Appendix C in keeping the russian [sic] language alive and in use" while on the other hand wishing the

community group "continued success" in its forthcoming sales efforts (Appendix A). In the

two-part letter that followed, CKGF Station Manager Gary Dorosz told the USCC that its 15

minute presentation was reduced to 5 minutes in order not to interfere with the network. It is

clear that CKQR had round advertisers for two network prograrns niruiing at the same time;

moreover, that more profit could be generated by also selling the features in Grand Forks.

Dorosz closed his letter by slapping the church with the sponsorship deadline, "it is Our hope

that you cm find a sponsor before the May 1 deadline and we can continue to broadcast the

Russian News on a daily basis, Monday through Friday" (Appendix A). Mr. Dorosz seemed

to be implying that he had no control over the programming of his station. Furthemore, by

suggesting that "it has corne ?O our attention that we have some demand fiom our clients for

sponsorship of these [network] progra~ns'~,Dorosz failed to point out that it was his own

sales staff who were selling the programs and bringing them to the attention of Grand Forks

businesses. It was not a process of divine intervention. Not without compassion, however, he

offered the USCC the oppodty to broadcast the newscasts on the local cable outlet

(owned by the same company) "at no cost to your organization7'-a generous offer since most cable access was cornmunity-based and free of charge.

The third letter, fiom Wiifked Warner to the CRTC's Ailan Darling (Appendix C), is most illuminating. According to this note, CKGF's sales department had been hard at work for the last 3 months we have tried eveq possible idea to sell this feature howver our clients have told us this feature does not have suficient number of listenen to justiQ sponsonhip. As the Commission well knows the 1990~'s will not allow Companies [sic] such as ours to continue deficit programming

Warner failcd to mention that his Company had put most, if not all, of the sales responsibility on the USCC rather than his salespeople. One also wonden how CKGF clients would be in a position to assess iistenership since in most cases it is the radio stations themselves that gather this information as a marketing tool. Wamer's reference to 500 families moving into the community creating "significant changes to our listening audience and their priorities" seems odcily misplaced. The USCC is urged once again to opt for the community cable alternative on July 5& and the date for the last Russian newscast is re-stated (Appendix D).

According to Babakaiff (personal communication, 28 January 1998) the USCC did find a sponsor, however, CKGF7soffer of five minutes on Sundays was deemed to be inappropriate. Babakaiff s letter to the CRTC less than a week derthe cancellation has gone unansweredl' (Appendix E).

Over the space of four years the level of local programming on CKGF was eut from 89 hours to less than 12 hours per week. This reduction was facilitated by regional ne~orkingand the use of broadcast technology between CKQR and CKGF. in correspondence between the broadcaster and the CRTC it is clear that the purpose and

'[ntefe~~gl~,telephone calls to the nearby Trail and Osoyoos radio stations confirmed BabakaifYs thoughts that those stations had eiiminated their ItaIian and Portuguese newscasts within the 1st 5 or 6 years. it is not hown if the cancellations were the result of ownenhip changes. significance attached to sorne programming was aitered to suit the particular needs of the

licensee. The Russian newscast was held up virtuously as a fine example of community service, yet was also cited as an expensive deficit programming drain oii radio station resources. There are several references to the radio station's financial plight yet the Company seerns to be able to purchase a new trammitter, STL and even pay down some of its long tem debt. What remains unclear, however, is the arnount of cost saving resulting fiom the staff reductions in Grand Forks following the purchase and subsequent network licence granted to CKQR. VI. THE TRANSFORMATION OF LOCAL ROI0

Networks and Technological Intervention

While sharing many similar hinctions, what has been described here as local, regional and national networks exert different pressures upon local radio. Local networks, such as the example illustrated in chapter five, encourage regionalism by pushing the boundaries of the local commun& cultural and othewise, to encompass a broader scope. Grand Forks becomes part of Castlegar as local references are slowly replaced by more homogeneous references to the region. In some cases, such as in nearby Trail, the call letters are replaced by a more generalized regional identity. Dave Glover, the broadcaster cited in the fint chapter, began his 44 year career broadcasting on CJAT-the 'AT' according to popular belief represented Air Trail. When Glover finished his last air shifi before retirement he wasn't using the same call lettea. CJAT had become KBS-the Kootenay Broadcasting

System. The change reflected the local network that had been forged linking Trail, Nelson and Creston.

Regional networks, such as the WIC network, based out of Vancouver are usually regional news and information service providers. Although these networks have not been explored in any depth here they are nevertheless important and certainly warrant investigation in future researcb As news and talk shows from Vancouver are carried in local communities throughout BC, is there is pressure to discuss decidedly urban issues? Would, for instance, the Vancouver audience neccssarily want to hear agricultural issues of concem to those receiving the program in the Canio? Lasily, let us remember that the majority of the guests for these prograrns will originate in the urban üeiitre and thus, io cite O'Sullivan et al, become the prirnaxy definers of the issues of the day in the rural penphery (1994).

Other networks, such as Okanagan Skeena Group Limited, (OSGL) own radio, cable and television undertakings in the northwestem, northern coastal and interior areas of BC and have the potential to share a multitude of resources. in 1990, OSGL purchased controlling interest Okanagan Radio Limited (OKR) which has stations in Penticton,

Surnrnerland and Osoyoos, for over one and a half million dollars (Canada, 1990). Six years later, OSGL was able to write a cheque for over 4 million dollars to purchase effective control of the Four Seasons Radio Ltd (Canada, l996a). OSGL was thereby able to extend its regional network to Trail, Nelson, Creston, and Kelowna. In the reasons for its 1990 decision, the Commission noted that the approval will allow 'Yhe opportuniîy for OKR to participate with other OSG stations as part of a chah of stations in prognmming production and developrnent" (p. 2).

However, it is the national networks that leave precious linle local space in the cornmunity. Where local and regional networks have the potential to provide at least some local articulation, national networks do not in the enormous drive to eliminate any hint of local or regionai identity, these networks use a reductionist and homogenous mode of address. Populist notions such as those fomented by either Dr. Lam or Howard Stern abound in the networked programming environment. Local community concems become

irrelevant.

The CRTC, since the mid 801s,seems to have drawn iittle distinction between the

alleged benefits of networking and syndication and has unified the two concepts. In its policy

statements (Canada 1983; Canada 1984) syndication is seen as a new cultural tool for the

production of Canadian programs. What Canadian content achieved for Canada's recording

industry, syndication would do for broadcast prognunmhg. Networking, naturally, is viewed as the del ivery mechanism. Little thought seems to have ken given to the resul tant impact

upon local content and cornmunity, an example of which was detailed in the case study.

The rapid expansion, change and transformation of broadcast technology has also left its mark on the deterioration of local broadcasting. In addition to facilitating the expanded use of networks, technology has been used to automate and de-personalize the broadcaster. len Ang (199 1) uses the term "textualking" (p. 27) to describe the process of linking the television audience with advertiser. The network, she says, acts as an intermediary in this wmplex process. In Heather Menzies' view the broadcaster would be simply a servo- mechanism (1996). Comected as the human relay in the digital system, the pnmary fiinction of the 1990's broadcaster is ensunng that the radio station's cornputer and network links are intact Menzies pains a chilling picture of the work environment dominated by technology: Many jobs that previously involved a good deal of talent, intelligence, and cornmitment-for instance, in hospitals, stores, insurance and law offices, and factories-have been turncd into McJobs. As the context .for their work is digitized, people are being systematically stripped of their capacity of human involvement and judgernent. Machine intelligence and logic take over. (p.36)

While not specifically refemhg to private radio, both women offer appropriate models to

cons ider.

The use of technology in broadwting was fint aminted as vital in the 1972 CRTC

Annual Report as part of what Robert Babe (1990) has labeled as one of the several myths

surrounding techology. Babe suggests that technology in Canada is seen as nationalistic.

We need technology, he argues, because as Canadians communications technology has

always defined who we are. Furthemore, as technology inexorably advances (another myth)

there is the fervent desire to catch up and keep up lest we be relegated to third world statu.

Of importance to this thesis is Babe's notion that as a result of this 'btechnological

deteminism" (p.9) the govemment's regulato~ystructure must make the necessary

adjustments. To look at the examples at haad then, if broadcast technology and networking

are deemed to be nahiral occurrences required to keep in step wîth the rest of the

hdustrialized world, then naturally the CRTC would not block what would be seen as industrial advancements in the broadcast sector. Indeed, it would be prudent to remove any such obstacles. Menzies provides an interestiog mode1 for examining this regdatory restructuring (1996). Redefining 'local'

As local networks continue to bring rriore smaller radio stations into their sphere of influence, local cornmunities ~illeventually redefine the role of their local station. Already, such as in the previous chapter, we can see where 'local' has come to be defined as the time normally associated with the moming program4am-l0m. The rest of the program day is networked. It is perhaps not measonable to forecast that given a continuance of this phenornenon people's expectations of their local station will change. If local issues are not articulated, if local voices are not heard outside of the moming time slot, then radio may well cease to be looked upon as anyhng other than a one-way passive medium incapable of interacting with the cornrnunity it ostensibly is supposed to serve. Cal1 forwarding and 800- numbers comecting cornmunity and radio station will be the nom.

Almost twenty years ago Jean McNulty (1979) warned that if radio was only seen as a distribution system with no inherent content of its own, then the programming could originate fkom any source. In advocating a strong base for local programming she envisioned a cultural wasteland of sorts in the absence ofcommunity content and access. Although aot specificaily addressing networks, McNultyaswamings would seem to be very pertinent in the

1990's.

There are also more tangible benefits stemming fiom a vibrant local programming base. Community planning, such as disaster mitigation, can only take place where there is a strong local radio presence. Other media can not respond with the same degree of timeliness,

immediacy and mobility. Effective mitigation also revires the community to instinctive13

rely on the potential of the local broadcaster to âci âs a coordinator. Unless the local broadcaster maintains a local presence, the cornmunity will eventually eliminate radio as a

potential source of assistance in an emergency.

Future of Regulation

What began as an eamest regulatory effort to preserve and protect social and cultuml objectives has slowly evolved into regulation to achieve economic goals. indeed, the regulator's working definition of 'comunity' and 'local', as cited in its annual reports, has undergone a metamorphosis culminating with references to the radio 'consumer' in 1995.

For its part, the CAB has aiways held to a market-orientation approach while constrintiy couchîng its goals in cultural objectives. The Association has already suggested that the radio regulations goveming Canadian content be change4 with new airplay levels tied to the purchase of Canadian music at the retail level (Fraser, 1997a). The financial health of private radio is fiequently the subject of spirited debate between the CAB and those arguing for an increase in regulations goveniing broadcasting. Perhaps we should consider a fùrther examination of how this problernatic area can be further defined. At the very leasî, the various actoa in the broadcasting arena, public and private, need to centre the debate around an agreed upon set of finanrial standards and accounting procedures.

As bas ken discussed, our efforts as Canadians towards advancing culture in the regulation of private radio broadcasting have historically involved the production and perfoming of Canadian music. Few would argue that the Canadian content regulations of the '70's have not left an indelible mark upon our cultural landscape. However, what has been overlooked in broadcasting policy is the importance of local information at the community level. A broadcaster would be hard pressed to successfidly argue for a 20% reduction in Canadian musical content Would a similar lessening in vital local information be accorded a similar response fiom the Commission?

If indeed information prograrnming is to receive attention in future broadcast policy development, should the CRTC not delineate between rural and urban broadcasters? Surely a community with access to five radio stations would seem to have more options than a smaller community forced to rely on a single local broadcaster. To be sure, the profit margins of the ml broadcaster are less than hidher urban colleague, however, there is a greater responsibility in administering the stand alone station operating in a less cornpetitive environment,

As evidenced by Ms. Bertrand's speech quoted in the last chapter, the CRTC mind set, if it is not already there, is moving towarck total de-regulation. One wonders how section three of the Broadcasting Act (Canada, 19%) can ever be fully realized. Local

prograrnming levels do not require specification apart From licence application and renewais.

Canadian Talent Development (CTD) is king sclf-regulated by the CAB and multi-licence

ownership based upon the American model is on the drawing board. The CRTC has already

taken the fint bold steps towards implementing multi-licence ownership (Canada, 1998).

Public Notice 1998-41 calis for proposed changes that would allow a single radio station

owner to hold three stations in a srnall market and four stations in a larger market. The

proposals have been criticized by some culturai groups as "putting too much power in the

hancisi of fewer people" (Broadcasting, 1998). The CRTC seems to have aîtempted to strike a

balance behveen corporate and culturai interests by also seMng notice it intends to boost

Canadian content levels to 35%. Prior to the announcement, the mere possibility of multi-

licence ownership was said to be dnving up prices for radio stations leading to the possibility

that "dozens and even hundreds of stations [will] change hands" (Reguly, 1998, p. B10).

Our broadcast policy choices, at least at first dance, do not appear to be overly

complicated. However, when faced with the economic or market model on one hand and the

social or cultural model of radio on the other we, as Canadians, stmggle. Recent debates

swirling around the friture of the CBC are a prime example. Perhaps it is a case of the

industrial voice of the CAB king heard more often or the appointments of CRTC

commissiowrs with a background in private broadcasting that tip the scale. ûther countries

(Taylor, 1995) seem to be able to initiate national discussions surrounding these issues.

Perhaps there are lessons to be learned from them. It is wholly unrealistic to expect a reversal in policy direction from the CRTC away From the market deteminant model. This market-oriented approach, with its requisite emphasis on tixhnology, continue unabated. There are, however, alternatives. The licence renewal process could be revised to allow competing applications. If we are indeed moving towards an era of continued de-regulation, then surely private broadcasters would welcome the notion of cornpetition, rather than CRTC licence protection. If the business of broadcasting lacks a sufficient remon investments, as the CAB so often maintains, then perhaps these financially-burdened broadcasten should be relieved of their troubling regulatory obligations and relinquish their license to other willing individuals or comrnunity groups? As AM broadcastea continue to apply for simple 'flips' to FM enabling them to take advantage of the superior signal quality, perhaps the AM frequenciep that have been cast aside could be utilized by these groups, who embrace a different vision of broadcasting.

The CRTC could choose to effectively regulate what few policies remain in place goveming the issues discussed in this thesis. In some instances, and I wodd suggest the preceding case study makes this abundantly clear, it is not so much a matter of the regulator creating a new set of regulations but rather choosing to utilize the regulatory tools already at its disposal. Programming histoncaily cited by the broadcaster as perfoming a public seMce function should not be transfonned into an advertising feature left to the vagaries of the local advenising market Clearly, to cite another example, the Commission did not intend private networks to supplant local accesslcontent. However, as was ill~atedin the preceding case study in Grand Forks, the CRTC is willing to accede to these requests. Moreover, the Commission could no longer consider licence applications/renewals in radio without simultaneously examining concentration of ownenhip issues within the larger community communications context. Broadcasten have been nadiiionally barred from owning more than one AM and FM station within a given community (which in light of

Public Notice 1998-4 1 has been al1 but discarded), hoivever, should similar regdatory steps now be taken for regions, such as those cited in the previous chapter? As the regulator heads towards multi-licence owneahip at the community level it is vital that further academic research be conducted with regard to regional concentration of owneahip, especially regional networking.

Apart fiom the important policy issues, there remains the notion of how to widen the parameters of prevalent broadcasting discourse to include concepts that reach beyond the dominant market model. This discussion would naturally encornpass larger cultural issues that contribute to a definition of Canadian broadcasting. However, it seems logical that the institutions responsibie for training and educating broadcasters shouid shoulder some responsibility in this regard. Indeed, if it is possible to infiuence the current hegemonic pattern in broadcasting, it will have to stem fiom a concerted effort fkom within the industry itself. If those ushered into broadcasting discourse through training institutions have been aflforded more than one primary perspective, then new (or perhaps old) broadcasting models cm be introduced, aithough as Ganiham has suggested (hg, 1990, p. 105) a "crisis of the imagination" exists when attempting to conceive of di fferent, non-mar ket, approaches to broadcasting. The cyclical nature of our historic approach to radio regulation is unmistakable. We began with a markevaudience mode! i:: the 20's and shified towards a culîural/public mode: ûf broadcasting beginning witli the Aird Commission. For a bnef time it seems a hybrid of sorts prevailed that resulted in the creation of a Canadian music industry. Now, as the rnillenniurn approaches, the pendulum continues to signal a return to the market approach Sadly, this approach almost assuredly guarantees that the technology of networking, combined with the doctrine of supervision in place of regulation, will inexorably lead to a cornmensurate loss in community radio programming. The continuing erosion of local content will lead to a re- definition of the relationship between listener, broadcaster and community. Allard, T. J. (1976). The C.A.B. story. Ottawa: Canadian Association of Broadcasten

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T'i. Lcttu WUeaJk our .iirlLu diLuurian aqadirrp a FAX rpok.or {oa trk Rua- hu * paapm m SUICUILIU Rdip - Gad ml - 1 Appendix B 1

aAppendix D

July 9, LW5

sponwnhip tot th. mian Nous. 1*a .or& to repart ue hue m fyw trird misrrwr, accounts and hrvc men offemd Um rrduction m tM applicable tate,, 811 ta no'rval!. Clgain I knw mnshina tomunications im into~llka.inrunnln9 Russiin- ~inqWqopfaprvrinp an Cablm Channa! i0, as rell 1 hrve talked f.;, klph Dldato at Shw Cabh in krttegar rd they taa'arm intemrtod in urryinp @van .ors pra~raimfngthan yw am alrcady p~ailucing: Ralph'r wrqg.r?ion wr;a ta grduc8 r aorithly nmr update ilma rt USCC mhm. X twl the fundm invntmd-in praaicing tha Ruimirn Nmr for eKQc cauld ha dfverted ta fund r Yi- progru arordinator utm ewld proan a m~lrrvicko oroqru *O run an Ubim On bath *ide8 of th. rn9untain. Yhen 1 trlked to blph h offand to .nt ycu ta awist wfth tni~proieet. M 8 irrult of th lrck of sgonsorshlp tor tkfr taatun rc art unable tu continum ury'ing ?ha progrm. Our lrrt brordcrst uill k Fridiy July 28, lm, Th C.R.T.C. Ma ben notified. tow at th lrttar a8 attacha& 1 rirh ta thmit yau tb~YWP ctiaporrtian ove? th. yaarr and otfrr bmt utrhrr tm œntinwd omsperity in the tutum. C.R.T.C. Oa.ri, Oaurio KlS2C3 .

Atkntion: Mr. AhJ. OUM,Sem- Gd-1

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