Updated July 30 with info on remaining 10 stations.
It would be an exaggeration to say that radio is dead. There’s definitely a case to be made that AM radio is on the way out, and interest in that century-old technology is pretty low, at least for mainstream commercial enterprises.
But FM is still popular, and the bands are still pretty packed in Canada’s largest markets. In smaller markets, there are fewer stations, but still a lot of value.
At least there used to be.
Two weeks ago, the CRTC published applications for the sale of 35 of the 45 radio stations Bell Media announced in February it was offloading, and for the first time we have their sale prices listed. (On July 30, it added the other 10 stations)
It’s $12.9 million. For 35 radio stations. Or about $369,000 each.
Update: With the newly announced stations, it’s now $40.9 million for 45 radio stations, or about $908,889 each.
Now, it’s important to note that Bell isn’t selling stations in its largest markets. None in Toronto, Montreal, Edmonton, Calgary, Vancouver, Ottawa, Quebec City, Winnipeg, Halifax. The biggest market with a station being sold among the 45 is Hamilton, where CKLH-FM (Bounce 102.9) has to compete with the big Toronto stations and has no more in-market sister stations after Bell sold its two AM stations there to CINA. St. Catharines and Kelowna are the only other markets in the top 20 in Canada that Bell is getting out of.
So naturally Bell isn’t going to get the kind of money for these stations as it would for say, its FM stations in Toronto, Montreal or Vancouver.
But consider this:
- From 1997 to 1999, Affinity Radio Group bought CKTB St. Catharines for $1.5 million, CHTZ-FM St. Catharines for $5.5 million, and CHRE-FM St. Catharines for $7.3 million.
- In 1999, when Okanagan Skeena Group bought Copper Island Broadcasting, which owned three B.C. radio stations (CKXR Salmon Arm, CKGR Golden and CKCR Revelstoke) now on the list of stations going to Vista, the purchase price was $2.1 million total. And those stations were all on AM at the time.
- In 2000, when CHUM Ltd. bought CKLY-FM Lindsay, it was for $800,000.
- When Standard Radio bought Telemedia’s Ontario and western assets in 2002, its 62 radio stations, including the 21 in B.C. that are now going to Vista, were valued at $369.6 million, or about $6 million each. When Astral bought Telemedia’s 11 Quebec radio stations (in its six largest markets) and eight Atlantic stations (Fredericton, Truro, Grand Falls, Bathurst and Woodstock), they were valued at $227 million and $28 million, respectively, or $20 million and $3.5 million each on average.
- When CTVglobemedia bought CHUM Ltd. in 2007, the 33 radio stations in that deal were valued at a total of $450 million, or $13.6 million each. Now, most of those stations were in Canada’s largest markets, but that’s still quite the difference, especially when you consider that with inflation factored in it would be closer to $20 million now.
- That same year, when Astral bought Standard Radio, its 53 radio stations, still including those 21 B.C. stations going to Vista, were valued at $1.026 billion, or $19.4 million each.
- In 2011, when Bell bought CTV, its 35 radio stations were valued at about $300 million (depending whether you count things like the value of leases). That’s a little under $10 million each.
- And in 2013, when Bell bought Astral Media, the value of the 21 French FM stations was $290 million ($13.8 million each) and its 44 English FM and 19 English AM stations at $723 million ($11.5 million each).
Because sales of radio station groups don’t publicly disclose assigned value per station, these are the best guesses we have as to their value. And while a station in Salmon Arm, B.C., is never going to be comparable to one in Vancouver, it’s still pretty telling that the value of the average radio station in these mega deals is about the same as what dozens of stations are being sold for now. I wouldn’t call this a fire sale, but it’s clear Bell isn’t affording much value to the stations.
I also wouldn’t be surprised if other sales happen. Missing from the list of stations being sold are the two in Brandon, Manitoba, and stations in Orillia, Midland and Pembroke, Ontario, that are not exactly big markets. It’s possible they just haven’t found a buyer yet, or they’re still negotiating.
Stations being sold
Here are the stations Bell has announced the sale of:
To Vista Radio (21 stations in interior and northern B.C., $3 million total)
- CHOR-FM Bounce 98.5, Summerland, B.C.
- CJAT-FM Bounce 95.7, Trail, B.C.
- CKKC-FM Bounce 106.9, Nelson, B.C.
- CKGR-FM Bounce 106.3, Golden, B.C.
- CKXR-FM Bounce 91.5, Salmon Arm, B.C.
- CKCR-FM Bounce 106.1, Revelstoke, B.C.
- CJMG-FM Move 97.1, Penticton, B.C.
- CKOR Bounce 800, Penticton, B.C.
- CJOR Bounce 1240, Osoyoos, B.C.
- CICF-FM Pure Country 105.7, Vernon, B.C.
- CHSU-FM Virgin Radio 99.9, Kelowna, B.C.
- CILK-FM Move 101.5, Kelowna, B.C.
- CKFR AM 1150, Kelowna, B.C.
- CKNL-FM Bounce 101.5, Fort St. John, B.C.
- CHRX-FM Move 98.5, Fort St. John, B.C.
- CJDC Pure Country 890, Dawson Creek, B.C.
- CKRX-FM Bounce 102.3, Fort Nelson, B.C.
- CFTK Bounce 590, Terrace, B.C.
- CJFW-FM Pure Country 103.1, Terrace, B.C.
- CHTK-FM Bounce 99.1, Prince Rupert, B.C.
- CKTK-FM Bounce 97.7, Kitimat, B.C.
To Durham Radio (3 stations in central Ontario, $2 million total)
- CKLY-FM Bounce 91.9, Lindsay, Ont.
- CKPT-FM Move 99.7, Peterborough, Ont.
- CKQM-FM Pure Country 105.1, Peterborough, Ont.
To My Broadcasting Corporation (4 stations in eastern Ontario, $1.4 million total)
- CFJR-FM Move 104.9, Brockville, Ont.
- CJPT-FM Bounce 103.7, Brockville, Ont.
- CFLY-FM Move 98.3, Kingston, Ont.
- CKLC-FM Pure Country 98.9, Kingston, Ont.
To Arsenal Media (7 stations in Quebec, $6 million total)
- CHRD-FM Rouge 105.3, Drummondville
- CJDM-FM Énergie 92.1, Drummondville
- CFEI-FM Boom 106.5, St-Hyacinthe
- CFZZ-FM Boom 104.1, St-Jean-Sur-Richelieu
- CIKI-FM Énergie 98.7, Rimouski
- CJOI-FM Route 102.9, Rimouski
- CFVM-FM Route 99.9, Amqui
To Maritime Broadcasting (5 stations in New Brunswick and Nova Scotia, $4 million total)
- CIKX-FM Bounce 93.5, Grand Falls, N.B.
- CJCJ-FM Pure Country 104.1, Woodstock, N.B.
- CKBC-FM Bounce 104.9, Bathurst, N.B.
- CKTO-FM Bounce 100.9, Truro, N.S.
- CKTY-FM Pure Country 99.5, Truro, N.S.
To Whiteoaks Communications/Golden Horseshoe Broadcasting (4 stations in southern Ontario, $22.5 million total)
- CKLH-FM Bounce 102.9, Hamilton, Ont.
- CHRE-FM Move 105.7, St. Catharines, Ont.
- CHTZ-FM 97.7 HTZ FM, St. Catharines, Ont.
- CKTB Newstalk 610, St. Catharines, Ont.
To ZoomerMedia (1 station in Ontario, $1.5 million)
- CJOS-FM Bounce 92.3, Owen Sound, Ont.
Markets Bell is keeping its stations in
- Victoria, BC
- Vancouver, BC
- Calgary, AB
- Edmonton, AB
- Regina, SK
- Brandon, MB
- Winnipeg, MB
- Windsor, ON
- London, ON
- Kitchener-Waterloo, ON
- Sudbury, ON
- Toronto, ON
- Midland, ON
- Orillia, ON
- Pembroke, ON
- Ottawa/Gatineau, ON/QC
- Rouyn-Noranda/Val-d’Or, QC
- Montreal, QC
- Trois-Rivières, QC
- Saguenay, QC
- Quebec City, QC
- Sherbrooke/Magog, QC
- Fredericton, NB
- Halifax, NS
Problems on the horizon
Looking at the way Bell has sold these stations, it’s clear it’s breaking things up geographically and selling stations as groups where it can. This is in part because these stations have been grouped for a while (those B.C. stations have been together through several ownership changes now). But that can present problems for the CRTC where stations are in markets close to other stations already owned by these companies.
According to the CRTC’s common ownership policy, one company can’t control more than three radio stations in a market unless that market has at least eight commercial stations.
Arsenal, for example, already owns two stations in Matane, meaning an area about equidistant from Matane, Amqui and Rimouski is covered by four radio stations. Arsenal has proposed reducing power on the Rimouski stations it’s acquiring so the signals don’t overlap as much.
My Broadcasting, meanwhile, owns CJGM-FM (My FM 99.9) in Gananoque, just east of Kingston, and wants to acquire two stations in each in Kingston and Brockville. MBC argues the Kingston and Brockville stations don’t overlap, though Bounce 103.7’s transmitter is about halfway between Brockville and Kingston.
Finally, Vista has issues in the Nelson/Trail/Castlegar area in the Rockies. It has asked the CRTC for an exception to the common ownership policy, arguing the overlap is limited.
The remaining sales don’t appear to bring up common ownership issues.
Comments on the applications for sales to Vista, Arsenal, Durham and My Broadcasting are being accepted until Aug. 1. You can submit them here. Comments on the applications for sales to Maritime Broadcasting, ZoomerMedia and Golden Horseshoe are being accepted until Aug. 29. You can submit them here. Note that all information provided, including contact information, becomes part of the public record.
Great writing. Best wrap up of the changing of hands of those stations that I’ve seen. It’s called journalism folks. Well done!
Seems to me that the competition is longer between radio stations but between radio stations and the internet. We no longer care if there are monopolies; we’ve bought the business bs.
Thanks for keeping your column going. I see very little of what you are covering any where else.
Ps. Why aren’t I seeing you in the Gazette more often?
That’s the argument the big media companies use. And it’s not wrong. Besides people in their cars, not a lot of people listen to the radio, and even those people are increasingly choosing other options.
These sales will offer an opportunity to these mid-size players to show that they can make small-town radio work and thrive.
I think you will see the small and midsize players do much better at it than the mega monolith companies have done, for the simple reason that they will be more connecting to their own communities.
Big media isn’t wrong about the listenership being more and more the people in cars crowd. However, they seem very intent on not asking themselves why, and trying to address those whys. Instead, they have dropped off more and more programming out side of drive times, and have given people few reasons to turn the radio on in the house.
Oh, you realize that fewer and fewer people have a radio in their home, except maybe for a clock radio – and those are going the way of dinosaur now too. Smart phones aren’t all coming with FM radios either, and AM is even more rare. However, essentially all Canadians have either home internet, mobile internet, and the majority have both.
Just for fun, go into your friends houses, and look around. 30 years ago everyone had a stereo receiver with cassette or CD. Now they have ditched that for a net connected TV. More time for Netflix or doom scrolling the internet, less time for listening to the radio.
They know very well why. People don’t have radios on in their homes, and they’re spending less time in their offices. They’re trying their best to push smart speakers and streaming apps, but most of the audience has been cars for decades and will continue to be.
Is Bell keeping CHBD-FM Pure Country 92.7 in Regina?
Yes, missed that on the “keep” list.
Less listening in cars?
Or on headphones in the bus.
I am on the Numeris Media polling for a third year.
Numeris seems desperate to get numbers but make
it more difficult every year.
Less pay ($) incentive from Numeris. No more handy paper survey, but one has
to go to online drivel page. Household writes stations and times down and
fills in the forms the next day or two.
We listen to a lot or radio on several stations in various rooms and we know several languages.
Now that world shortwave has shut down, there is mainly domestic and cross-border to hear.
So more times for concentration on local stations.
People and radio culture are changing, as are the number of people who pay attention to radio at all, not even knowing the complet lists of local stations. (The mini-stations from colleges and unis are often more entertaiing than local AM/FM stations.
Better jazz shows on Radio-Canada in general.
Wow, that’s a big list of stations being sold off. But, it will also allow other players to do a better job with those stations.
I wouldn’t call Bell Media an innovator when it comes to programming.
I listen to a lot of radio during the day. When a radio is around, I’ll listen to it. But, when I don’t have a physical radio at hand, I will stream the station.
So, in the end, you’re listening to the same radio stations. I can tell you that when I’m working, I’m streaming CFQR-AM 600 for hours at work.
And the car radio is always on, when I’m driving.
The smaller stations Bell is keeping are also in markets where they have a TV operation.
A lot of information here, good reporting.
I think though maybe one item stands out: “valued at” doesn’t mean actually worth that, in the sense that other than the two parties in the deal, nobody else would pay that. This is especially true in deals where the seller ends up owning part of the the resulting bigger company. It is a complicated game of numbers.
I think also you have to look at who the buyers were, and what their intentions were and where they felt the stations would end up on profits. Each of these big buyers had the either a network plan or a reduce duplication plan. Call it synergy or whatever the corporate double speak was at the time, the goal was to move from a collection on individual radio stations and on to regional hubs, where you consolidate management to one group, news to a group, and programming is done regionally or nationally based on branded station sets. The idea being that huge saving could be had be eliminating duplication and individuality, replaced with more generic stations in different markets. What Bell is selling are mostly regional stations where it is harder for them to slash and burn anymore jobs to make a mythical bottom line. They are keeping pretty much all the places they have CTV. Neat how that works.
For Bell in particularly this was the big thing: Jam all the radio and TV together into globs in the local market, reduce staffing, and make billions.
We ended up with Bob and Jack and various smooth music stations, all with the same branding often coast to coast, programmed by a couple of people in the head office and often run with no DJ voices at all. The Bob stations had no jocks most the day. They got replaced with the equally ill defined Bounce format, which they launched by switching 25 stations in one shot. That again was a local DJ in the morning and then automated music the rest of the day.
… and they wonder why ratings keep dropping.
FM in particular is still a very valid and very viable content deliver format, but if you are competing bland, lifeless, not at all local corporate radio against other sources of music such as streaming and personal music collections, they will often lose. I think that radio (and to a lesser extent TV) doesn’t even really occur to Gen Z, as an example, because the big media companies don’t seem to understand that nationwide carpet bombing of bland music isn’t going to drive listenership.
So yeah, great article.
I wonder if some owned and operated tv stations by CTV, Global and Rogers(CITY-TV) might be the next to be on sale?
Global is in financial trouble because it no longer has telecom backing. CTV and Citytv don’t have much interest in breaking up their networks, though it’s entirely feasible for smaller stations to be sold off or shut down.
It isn’t hard to imagine that in the near term this could change. it has been well known for years that OTA viewers are a small percentage of total viewership. Maintaining the transmitter, powering it, and all the other steps that go into putting a signal over the air is expensive when compared to the OTA audience numbers. This is certainly a significant expense point for the owners.
The real question becomes how long they will feel the need to keep a local presence at all. I think for CTV and Global, local presence is mostly to justify being able to do SimSub over the US network channels on cable. Their stations nationwide have more or less the same programming in the same order everywhere. Now it is just the local news, the studio, and the transmitter that is in play. They have cut the news part as far as they can and moved into much smaller shared buildings. Only the transmitters for the moment have avoided the axe. Can that be far away?