FCC Considers Whether To Let Canadian Company Buy U.S. Radio Station.

[davideduardo]

In what would be a first, the Federal Communications Commission is being asked to approve an application to allow a U.S. station to become wholly-owned by a Canadian broadcaster. Border International Broadcasting has asked the FCC to waive its foreign ownership limits and allow it to move forward with a pending $325,000 deal to buy adult hits “102.7 The Lake” WLYK Watertown, NY from Clancy-Mance Communications. The station targets the Kingston, Ontario market just across the U.S.-Canada border.

FCC Considers Whether To Let Canadian Company Buy U.S. Radio Station.

In what would be a first, the Federal Communications Commission is being asked to approve an application to allow a U.S. station to become wholly-owned by a Canadian broadcaster. Border

www.insideradio.com

What is not discussed is the Canadian exclusion of ad expenditures on US electronic media as a business expense. How will "Border International" sell ads in Kingston with that limitation?

 

[TheBigA]

In what would be a first, the Federal Communications Commission is being asked to approve an application to allow a U.S. station to become wholly-owned by a Canadian broadcaster.

Seems to me there are stations in this country that are owned by Mexican broadcasters, right?

The tax question might be solved by the company setting up a US subsidiary.

 

[Kelly A]

Hopefully that wouldn't make their U.S. stations sound like Canadian stations. Talk about a recipe for failure.

 

[tall_guy1]

Me personally I prefer Canadian stations, so maybe a bit of Walk off the Earth and some other Canadian artists could at least be tested here in the US and see the impact.

 

[davideduardo]

Seems to me there are stations in this country that are owned by Mexican broadcasters, right?

But Mexican law allows Mexican advertisers to expense the cost of advertising on US radio stations. Canada does not.

The tax question might be solved by the company setting up a US subsidiary.

But would that be practical and cost effective for local businesses in the Kingston area? Paging Dr. Fybush!

 

[fybush]

As I am involved in this deal, I'm going to have to politely decline any public comment on it, beyond saying that the Canadian broadcasters in question know what they're doing and have been very good to work with.

 

[Kent]

But Mexican law allows Mexican advertisers to expense the cost of advertising on US radio stations. Canada does not.

Hasn't that station already been targeting Canada for several years? The logical assumption would be that it has been profitable with that approach, or it wouldn’t be purchased outright to continue that strategy. I will grant you, however, that there are plenty of fools in the broadcasting business.

 

[davideduardo]

As I am involved in this deal, I'm going to have to politely decline any public comment on it, beyond saying that the Canadian broadcasters in question know what they're doing and have been very good to work with.

Then we look forward to understanding the business model later!

 

[davideduardo]

Hasn't that station already been targeting Canada for several years? The logical assumption would be that it has been profitable with that approach, or it wouldn’t be purchased outright to continue that strategy. I will grant you, however, that there are plenty of fools in the broadcasting business.

Obviously, American companies can buy advertising and expense in, no matter where it is targeted. So BigA's suggestion that a US office or subsidiary make the ad buys may be one alternative.

 

[Theater of My Mind]

Hopefully that wouldn't make their U.S. stations sound like Canadian stations. Talk about a recipe for failure.

Canadian radio stations are required to play Canadian Content as a condition of their license, making up 35% or more of the music they play. That's a lot of burned-out songs on the air because there really aren't enough Canadian hits to make up the CanCon quota mandated by the government without playing some very, very tired Canadian gold.

Of course, an American radio station doesn't have to play CanCon because it's not regulated by the Canadian government. That could give a U.S station targeting a Canadian market like Kingston, Ontario, an advantage if it's programmed well. It's also likely to anger the CRTC, which is extremely protective of its Canadian culture mandates. (They even just passed a new law mandating Canadian Content by streaming services, including by American companies like Disney).

It may seem like a U.S. transmission should be out of reach from Canadian regulators, but the CRTC has ordered Canadian-targeted programming from U.S. signals off the air before:

Cross-Border Punjabi Stations Face CRTC Cease-and Desist Order - Puget Sound Radio

Three radio stations broadcasting predominantly South Asian-language programming widely available in the Vancouver market are heading for a showdown with the CRTC – and Canadian companies who advertise on those stations could also take a hit in the process.

www.pugetsoundradio.com

The situation in Watertown/Kingston is a little different. There will be no Canadian studio but there could be a Canadian owner. I would not be surprised to see more fireworks from the CRTC than from the FCC over this one. It's going to be interesting to watch.

 

[tall_guy1]

Canadian radio stations are required to play Canadian Content as a condition of their license, making up 35% or more of the music they play. That's a lot of burned-out songs on the air because there really aren't enough Canadian hits to make up the CanCon quota mandated by the government without playing some very, very tired Canadian gold.

Of course, an American radio station doesn't have to play CanCon because it's not regulated by the Canadian government. That could give a U.S station targeting a Canadian market like Kingston, Ontario, an advantage if it's programmed well. It's also likely to anger the CRTC, which is extremely protective of its Canadian culture mandates. (They even just passed a new law mandating Canadian Content by streaming services, including by American companies like Disney).

It may seem like a U.S. transmission should be out of reach from Canadian regulators, but the CRTC has ordered Canadian-targeted programming from U.S. signals off the air before:

Cross-Border Punjabi Stations Face CRTC Cease-and Desist Order - Puget Sound Radio

Three radio stations broadcasting predominantly South Asian-language programming widely available in the Vancouver market are heading for a showdown with the CRTC – and Canadian companies who advertise on those stations could also take a hit in the process.

www.pugetsoundradio.com

The situation in Watertown/Kingston is a little different. There will be no Canadian studio but there could be a Canadian owner. I would not be surprised to see more fireworks from the CRTC than from the FCC over this one. It's going to be interesting to watch.

They just tend to play a lot of the different songs released by the different artists at least for pop (Fefe Dobson, Walk off the Earth, Alessia Cara, Tegan and Sara, Strunbellas, ect.)

 

[RadioGuy1864]

If they are broadcasting from NY and do not have an office in Canada, I don't see where the CRTC has any jurisdiction over the station. Canadian companies advertising on the station may be in a predicament.

 

[fybush]

There's an awful lot of speculation going on here. Here are whatever facts I'm able to share, because they're already public knowledge:

WLYK has been programmed from Canada by a Canadian broadcaster (Rogers) for many years now.

There has been no CRTC action against that arrangement of which I'm aware.

The current WLYK programming continues to come from a Canadian source, though the actual automation system playing it out is situated in the US.

 

[Kelly A]

There's an awful lot of speculation going on here. Here are whatever facts I'm able to share, because they're already public knowledge:

Wait, speculation here on Radiodiscussions?? And this surprises you?

 

[tall_guy1]

There's an awful lot of speculation going on here. Here are whatever facts I'm able to share, because they're already public knowledge:

WLYK has been programmed from Canada by a Canadian broadcaster (Rogers) for many years now.

There has been no CRTC action against that arrangement of which I'm aware.

The current WLYK programming continues to come from a Canadian source, though the actual automation system playing it out is situated in the US.

If you operate the station, you should maybe at least do a "show" on the station maybe on Sunday night highlighting Canadian or international pop...I would listen!

 

[fybush]

If you operate the station, you should maybe at least do a "show" on the station maybe on Sunday night highlighting Canadian or international pop...I would listen!

I never said I operated it! I'm a contractor and a consultant, in this case. My roles are entirely technical.

 

[tall_guy1]

I never said I operated it! I'm a contractor and a consultant, in this case. My roles are entirely technical.

I got it! That makes sense.

 

[davideduardo]

If you operate the station, you should maybe at least do a "show" on the station maybe on Sunday night highlighting Canadian or international pop...I would listen!

Scott does not run that station. He is a consultant to many stations and groups.

And why would a station, which has the advantage of not having to comply with CanCon, do what every contemporary (pop, CHR, AC, Country, Oldies, etc) format station in Canada is already doing? It's obvious that this station's USP (Unique Selling Proposition) is not playing as high a percentage of "the same artists over and over".

 

[tall_guy1]

Scott does not run that station. He is a consultant to many stations and groups.

And why would a station, which has the advantage of not having to comply with CanCon, do what every contemporary (pop, CHR, AC, Country, Oldies, etc) format station in Canada is already doing? It's obvious that this station's USP (Unique Selling Proposition) is not playing as high a percentage of "the same artists over and over".

I would just think the station's ownership and proximity could make for a good specialty show once a week perhaps for people who are interested. I remember an alternative show late at night called "Passport International."

 

[davideduardo]

I would just think the station's ownership and proximity could make for a good specialty show once a week perhaps for people who are interested. I remember an alternative show late at night called "Passport International."

Again, you need to read about Can-Con, the Canadian requirements for Canadian Content in media.

Canadian content - Wikipedia

en.wikipedia.org

If all the significant stations in Canada have to comply with Can-Con and you, as station owner, feel that being liberated from Can-Con makes you more popular, why would you do a show that has exactly the same content as every other station in the Canadian market you are trying to serve?