Cogeco Media is denouncing a CRTC decision that dismisses a joint complaint from the broadcaster and Bell Media regarding Quebecor’s broadcast of content from its digital platform QUB Radio on 99.5 FM (CJPX-FM) Montreal.
The commission’s decision follows a move by Cogeco earlier this month to ask the Federal Court of Appeal to force the CRTC to rule on the joint complaint, filed late last year, revolving around the content distribution agreement Leclerc Communications struck with Quebecor Media’s NumériQ. Bell and Cogeco argued the deal effectively changed control of the station, which requires CRTC approval and violates the commission’s policy on cross-media ownership. It had been nearly a year since the Part 1 complaint was filed with no decision.
Caroline Jamet, President of Cogeco Media, told host Philippe Cantin in an interview on French-language talk radio station 98.5 (CHMP-FM) on Friday, that the commission “didn’t have the courage to enforce its own rules.”
“We don’t understand this decision,” said Jamet. “We completely disagree. You know that Quebecor has already tried several times to obtain a radio license, which was refused. So, today’s decision ultimately shows that you don’t need a CRTC license. If you make an agreement with a radio station, you can broadcast content.”
Agreement doesn’t impact ‘strategic decisions’: CRTC
“Quebecor covers the costs associated with producing QUB’s content, and QUB’s programming consists of a 12-hour over-the-air (OTA) broadcasting block. However, the Commission considers that Leclerc continues to exercise strategic control over programming at prime time. The decision to offer spoken-word programming rather than musical programming during prime time is Leclerc’s, as is the decision to purchase programming from a single source,” it stated.
“Furthermore…QUB’s programming must be to Leclerc’s reasonable satisfaction. Quebecor could not unilaterally decide to modify the content of QUB’s programming without Leclerc’s consent,” the decision continued, noting Leclerc can terminate the agreement with 30 days’ notice.
The commission says the agreement does not affect Leclerc’s power to make strategic decisions regarding CJPX-FM, with Leclerc assuming responsibility for the station’s budget and expenses (studios, technical expenses, non-programming personnel, regulatory affairs), as well as revenues generated.
“Leclerc is responsible for advertising pricing, negotiations with advertisers, and customer relations. In addition, it is responsible for numerous expenses that have a significant impact on the profitability, or lack thereof, of CJPX-FM,” the commission stated. “Leclerc also makes the decisions associated with news, such as the amount allocated to the news budget, third-party contracts, and the hiring of journalists. Finally, it is responsible for ensuring compliance with the station’s regulatory requirements.”
In its intervention, the Forum for Research and Policy in Communications (FRPC) alleged that the content agreement essentially has resulted in the operation of a programming network between the two parties, constituting a broadcast undertaking under the Broadcast Act, which requires a licence.
“The agreement creates a broadcast right, not a requirement, and Leclerc retains many forms of supervisory control,” the CRTC responded, adding that it is “applying a light approach to radio network regulation.”
