Arsenal Media buying BPM Sports from RNC Media

Arsenal Media, which has been slowly expanding its Quebec radio station holdings over the years to the point where it is now the largest radio broadcaster in Quebec by number of stations, announced today it is acquiring the three BPM Sports stations from RNC Média:

  • CKLX-FM 91.9 in Montreal
  • CHXX-FM 100.9 in Donnacona (Quebec City)
  • CHLX-FM 96.5 in Gatineau

The acquisition, if approved by the CRTC, would expand Arsenal from 25 stations to 28 (with another station in Joliette to launch by spring), and add its first stations in those three markets. (Arsenal specializes in stations in smaller and medium-size markets.)

Arsenal’s president and founder Sylvain Chamberland said in the company’s statement that he’s a listener of BPM Sports and plans to use its “business model adapted to new advertising realities, listening habits and advanced technologies” to improve BPM’s bottom line.

RNC Media, meanwhile, will exit the Montreal market with this transaction and see its once sprawling network of stations reduced to just two: CHOI-FM 98.1 Radio X in Quebec City and CHLX-FM 97.1 in Gatineau, which licenses the Rythme FM brand.

You have to wonder if those might also be sold (Cogeco might be interested in the Gatineau station, but it’s unclear who could or would buy CHOI). But RNC says it will continue to develop those stations, as well as its four TV stations in Gatineau and Abitibi (affiliates of TVA and Noovo).

RNC says it’s proud of what it accomplished with BPM Sports and the decision to sell was “difficult” but Arsenal “has the resources and expertise to ensure the sustainability of these stations.”

Sustainability had many of these stations’ employees concerned. BPM Sports has a loyal audience but its ratings remain poor. Some personalities like Tony Marinaro left the station, while others complained about late payments. The sale is no surprise, and we’ve known for months that Arsenal would probably be the buyer.

CKLX-FM launched in 2004 as Couleur Jazz, a new station that thought it could gain a niche audience by focusing on jazz music in the home of the Montreal International Jazz Festival. In 2012, realizing that wouldn’t work, it tried to turn the station into a Montreal version of Radio X, then a different talk format as Radio 9, and finally shifted to sports in 2015. In 2022, it made the Quebec City and Gatineau stations part of the BPM Sports network to save money by sharing programming.

Something I learned from Chamberland when I interviewed him years ago is that Gatineau is a tough market. You have all the Ottawa radio stations with English-language music, and the francophone population of Gatineau is not that big. BPM Sports doesn’t even have French-language rights to Ottawa Senators games (those are held by Cogeco’s 104.7).

But Chamberland is a radio guy. He told me he believes in making investments where necessary to make stations successful. So at least in the short term, employees and listeners of BPM Sports should be pretty happy about this move.

The purchase price was not disclosed, but should become public when this goes in front of the CRTC. In an interview on BPM Sports, Chamberland said the price was more than Canadiens player Jake Evans’s salary, which is $2.85 million. That sounds about right to me. Earlier this year Arsenal spent $6.5 million buying seven stations from Bell Media, with the largest markets served by them being St-Jean-sur-Richelieu and Drummondville.

Until the deal approves and closes, RNC Media remains in charge. But Chamberland said he would like to see more local programming on the Gatineau and Quebec City stations. He also said BPM’s Montreal staff would be moving to Arsenal studios in St-Lambert.

Correction: This post originally contained a typo in the callsign for CHLX-FM Gatineau.

5 thoughts on “Arsenal Media buying BPM Sports from RNC Media

  1. Anonymous

    Arsenal Media I think is playing a very strong hand of cards at this point. They appear at least on the surface to have figured out how to turn mid and smaller market radio stations into winners. The real key being that they appear to have found a good formula for getting advertisers on board. I can’t help but wonder also if their wide net approach has let them get into regional and national marketing campaigns as well, which make a big difference.

    To be fair, they may find Montreal to be not such a receptive marketplace, however. Most businesses have been hassled to death by sales, and most radio stations these days don’t have the reach to make a campaign work so well. It depends very much on who you are trying to talk to.

    All sports all the time is a tough market.

    Reply
  2. Anonymous

    At least these three stations went to Arsenal. They could have been gobbled up by Cogeco or Bell. That would have been really bad news. It would have made for an even further concentration of media in the Montreal market. We need more competition. And I consider media concentration in any market the death nail of any media. It’s too bad RNC seems to be selling off some stations. Maybe this is a slow exiting of the media space. I hope not.

    Small off topic question. CHAA-FM 103.3 has added a HD3. it seems to be offering Urban pop music. I haven’t noticed any branding name like their HD2 Coyote New Country has. Any info on this new HD3.

    Reply
    1. Anonymous

      I am not sure that Bell is a net buyer of radio stations at this point, especially not smaller or secondary markets.

      Reply

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