LETTER – AM radio stations face difficult economic challenges staying afloat

EDITOR’S NOTE: In early November columnist Alan Forseth  contacted the Canadian Radio and Television Commission (CRTC) with concerns he had regarding what was becoming an increasing lack of ‘local’ programming being broadcast on radio stations.  While not exclusive to radio station CHNL 610 in Kamloops (owned by Stingray Radio), he used it as my reference. Following several emails back and forth to the CRTC, they advised they had informed Stingray of his concerns, and that they were directing them to respond. Forseth  also expressed his concerns through a blog post he shared on his blog Thoughts on Politics in B.C. on Dec. 4 and on ArmchairMayor.ca Dec. 5 headlined, “Without a strong local presence, there is NO reason for anyone to tune in to local(?) radio.”  Steve Jones, president of Stingray Radio, has now responded.

Dear Mr. Forseth,

Thank you for the opportunity to address the concerns expressed to the CRTC via email and forwarded to Stingray Radio on December 9, 2024. As suggested by the Commission, I am copying them on this reply to you.

CHNL-AM/Kamloops operates under the CRTC’s Radio Regulations, the Revised Commercial Radio Policy, and under Broadcasting Regulatory Policy CRTC 2009-62 as amended by Broadcasting Regulatory Policy CRTC 2022-334.

With respect to local programming, Condition of Licence 8 set out in the Appendix to Broadcasting Regulatory Policy 2009-62 points out that only commercial FM radio stations are subject to a standard condition of license requiring that at least one-third (42 hours) of their programming in the broadcast week be devoted to local programming, which can include both spoken word and music content, in order for them to solicit or accept local advertising.

As an AM undertaking, CHNL is not required to broadcast any local programming specifically.

Despite having no regulatory obligation to do so, CHNL maintains a local newsroom staffed by three people and provides hourly news updates throughout the broadcast day.

In addition, CNHL continues to provide coverage of the Kamloops Blazers hockey games, a key part of the Kamloops community. We also locally staff our two FM stations in Kamloops throughout the day, allowing for breaking news and urgent information to be broadcast on CHNL at any point, despite the station relying heavily on syndicated programming.

Those measures, along with our inclusion in the national emergency alert program, ensure that CHNL listeners will never be left in the dark.

In your November 12, 2024, email to the CRTC you point out that CHNL “once boasted the largest hard-hitting newsroom in BC, outside of metro Vancouver”. Unfortunately, that is an accurate statement and reflects changing times, demographics, and listener behaviour. While AM radio was once a primary source of information to towns and cities across Canada, audiences have migrated to FM stations and now to digital platforms. The stark reality is that many once-powerful AM radio stations have completely shut down.

In August of 2024, Corus Entertainment shut down CHML-AM in Hamilton, a radio station with a nearly-100-year history of providing news and information for the Hamilton region. Closer to Kamloops, Bell Media recently shut down two AM stations in Vancouver, including CFTE-AM, once known as the legendary 1410 CFUN. They also shut down stations in Edmonton, Calgary, London, Windsor, Winnipeg, and Hamilton.

Not only have listeners and many advertisers migrated to FM radio stations, but the equipment required to maintain an AM operation is extremely expensive. Broadcast companies are finding it impossible to make a business case to continue operating AM radio stations, especially when equipment reaches end-of-life.

Stingray Radio struggled to keep CHNL alive in the news/talk format, despite significant financial losses, for several years. To our knowledge, Kamloops was the smallest city in Canada maintaining a news/talk format. It is the most expensive radio format to operate, and we did our very best to make it viable.

Ultimately, this fall we made the difficult decision to streamline our operations so that CHNL could avoid the fate of the stations noted above. Thanks to these programming changes, we hope to keep CHNL on the air and a vibrant part of the Kamloops community for many years to come.

In closing, Mr. Forseth, I share your concerns. They are legitimate. However, the economic realities we face in our industry are real. Staring down the option of shutting off CHNL completely or making these necessary changes to ensure its survival, I believe we made the right decision and remain proud of CHNL’s ability to serve Kamloops while many AM radio stations across Canada cease to exist.
I am grateful for the opportunity to speak to your concerns.

Thank you for making your voice heard with the CRTC and Stingray Radio. I wish you the best this holiday season and remain available to answer any questions you may have.

STEVE JONES
President, Stingray Radio