Quebec taxpayers are continuing to subsidize a traffic radio station with $1.5 million a year

Do you listen to Radio Circulation 730? Maybe you should, because you’re still paying for it.

Last month, the Quebec government renewed its no-bid contract with Cogeco Media to subsidize the Montreal traffic information station, agreeing to pay it up to $7,738,965 for five years, or $1,547,793 per year.

Cogeco Media doesn’t break down budgets for individual radio stations, but we know from CRTC filings that the average cost to run its radio stations is about $3 million a year, and when Cogeco first applied to the CRTC for a new licence to run a new all-traffic radio station in 2010 (and an anglophone equivalent on another AM frequency), it budgeted about $2 million, rising with inflation.

So I think it would be fair to say that taxpayers are footing about half the cost of running this station that consistently performs at the bottom of Numeris radio ratings (which is not unexpected since no one is going to tune in for more than a few minutes at a time).

The last contract between the government and Cogeco, which has been posted online because of an access-to-information request, was signed in 2018 for three years and renewable for two more, at a cost of $1.37 million a year. Besides agreeing to run the all-traffic station, Cogeco also provides some advertising time and a weekly interview.

Whether this is a good investment is up for debate. But a 2014 survey showed 40% of drivers had tuned into the station at least once, so the government seems to think there’s at least some use to it.

And it’s not like the traffic situation is going to get much better soon.

22 thoughts on “Quebec taxpayers are continuing to subsidize a traffic radio station with $1.5 million a year

  1. Brett

    If it had an English equivalent I would actually listen multiple times per day. I drive for a living and only listen to CJAD for traffic updates. I understand French but never listen to 730AM because French is a third language.

    Reply
    1. Fagstein Post author

      Of course the government would only support a French station.

      The original contract between the government and Cogeco was actually for $3 million a year, or $1.5 million for a station in each language. But when other broadcasters expressed interest in launching stations at 690 and 940 AM, Cogeco dropped the English station application and just converted CKAC 730 to a traffic station instead.

      Reply
  2. Sidney Margles

    It is ludicrous for the government to subsidize that one station when the provision of traffic reports is and should be provided by competing radio stations seeking audiences.

    Reply
    1. Peter L

      The days of real radio are long gone, Mr Margles. The Rowcliffe and Leckner Jet Ranger days are long past.

      For traffic reporting specifically, there is not a lot of value that a helicopter can add – 50 years later, pretty much in every metro area, we know exactly where the problems are. *Maybe* you can choose a different route before you get in the car and leave the house, but there aren’t a lot of alternatives in most cases – if you work downtown and you live on the South Shore, you can *maybe* take a different bridge …

      Don’t get me wrong – if I could turn the metaphorical dial on my radio back to 1975, I would in a heart beat. Sadly, the dial is jammed on the present. :-(

      Reply
  3. Ian Swain

    I find it hard to understand why somebody, who is concerned with the traffic, would tune into a radio station, when online Apps have that data built in and offer routing options. To me it appears to be 15 years too late to the table. I do listen to road reports on radio (CBC being very good, with Lita) but do not envision myself tuning into a station dedicated solely to traffic

    Reply
    1. Fagstein Post author

      I find it hard to understand why somebody, who is concerned with the traffic, would tune into a radio station, when online Apps have that data built in and offer routing options.

      Not everyone is comfortable using a cellphone while driving or wants to spend time loading up Google Maps before they leave when they can just tune into a radio station at the touch of a button and get a traffic report in a few minutes that they’re spending in their car anyway.

      Reply
    2. Dore Schary

      I listen to it in the car all the time.
      A couple of their people are actually pretty entertaining to listen to. There’s one dude who always sounds like he had six whiskeys and two packs of cigs the night before and is all, like, “Now, everyone, chill. It should be no biggie but those BRETELLES are REALLY SLIDY so slow the heck down, okay?”
      And it’s added lingo like “UN CAMION EN PORTEFEUILLE!!!!” and “UN EFFET ENTONNOIR!!!!!” to my vocab.
      They’re kind of like weather network geeks in that, when the s..t hits the fan and there’s something huge, it’s almost like they get all hyped up with the updates.

      I realize that’s a different thing than our taxes paying for it, but it’s helpful and also kinda fun.

      Reply
  4. Sylvain Naud

    Maybe they should drop their power down to 5 or 10 Kw, there saving on energy cost. There’s no need to keep the transmitting power at 50 Kw for a local audience.

    Reply
    1. Fagstein Post author

      730 AM is a clear channel and it might cause some issues if they lower power like that. Besides, the greater Montreal area is pretty big and they might lose some people during the day if they drop down to 10kW.

      Reply
  5. Bob

    Thanks for this informative article. I always wondered how much money from the coffers was going into this.
    Personally, when I need traffic info, I rely on the all the signboards (that happen to be constantly not lit or functioning), and Google Maps/Waze.
    Hopefully, even a portion of this money should go into updating those informational services.

    Reply
    1. Fagstein Post author

      Cogeco isn’t responsible for either the information boards on highways or coordination with Google/Waze. Those things are funded through other parts of the transportation department’s budget.

      Reply
  6. Bill V Lee

    Just “part of the chain” in the Vancouver market
    ———-
    CKGO is a commercial radio station in Vancouver, British Columbia, owned by Corus Entertainment and calling itself AM 730. It broadcasts a highway advisory format. Its radio studios and offices are in the TD Tower in Downtown Vancouver. Wikipedia
    Frequency: 730 kHz (AM)
    Broadcast area: Greater Vancouver
    Call sign meaning: “Go”
    First air date: February 3, 1955 (but not as a traffic station then)
    Format: Highway advisory
    Former call signs: CKLG (1955–2001); CJNW (2001–2002); CHMJ (2002–2022)
    Power: 50,000 watts
    ——-

    Reply
  7. Jean-F. Bérubé

    The purpose of radio circulation 730 is to provide traffic information. Ratings as measured by numeris are no object because the purpose of the government was not to make big 15 minute increment numbers. Englophones of Quebec seem jealous of the fact that the crtc did not authorize an english language equivalent on the AM dial. You never hear french speaking montrealers complain about that station being subsidized by the Quebec government. Only the english speaking people who never voted for the CAQ.

    Reply
    1. Fagstein Post author

      Englophones of Quebec seem jealous of the fact that the crtc did not authorize an english language equivalent on the AM dial.

      Cogeco pulled its application. The CRTC didn’t deny it.

      Reply
    2. Peter L

      Oh, now, come on JF. The question should be “does Radio Circulation actually do anything positive?” C$1.5M is chump change in MTQ’s budget, but if there are no actual results, what is the the point? As noted, ratings intended to sell advertising measure nothing of value on a station that is intended to provide a service.

      One way you could measure its impact would be to turn the transmitter off for a week or two and see if there is any increase in commute times. This assumes that there is some objective measurement of that and I doubt there is.

      Reply
  8. Devyn

    that’s kind of a weird arrangement. Does Radio Circulation 730 also provide general information like weather and news updates? If it’s literally only traffic, I don’t see the argument for subsidizing.

    Reply
    1. Fagstein Post author

      Does Radio Circulation 730 also provide general information like weather and news updates?

      It’s a full-time traffic station. It does not include news or other programming.

      Reply
  9. Anonymous

    I have tuned in a few times, when the traffic situation I was in had gotten really bad.
    I do believe the station provides useful information. But, I must admit, I would rather listen to a music station than a traffic station while driving.

    Now, what I find odd is that most new electric cars are dropping the AM Band on their radios. But, Cogeco doesn’t seem to understand that perhaps they should place CKAC 730 on the FM Band via their HD Radio signal on 105.7 FM-HD2. Or better yet, even try and maintain their HD Radio signal on 105.7 FM. I’ve tuned in to that station a few times, and the HD Radio signal wasn’t even working. I guess their only interest is getting government money.

    Reply
    1. Fagstein Post author

      Why not reactivate 980 or 990 and make it English traffic?

      Cogeco wasn’t in the mood for a whole CRTC process to start a new AM station. Adding a new AM station on a limited channel isn’t interesting enough for it, especially if it’s far from certain they would get government funding for the English station under a government that isn’t crazy about subsidizing English-language government services.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *