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CRTC "approves" satellite radio
http://www.theglobeandmail.com/serv...NStory/Business
CRTC "approves" satellite radio
By ROMA LUCIW
Thursday, June 16, 2005 Updated at 4:28 PM EDT
Canada's federal telecommunications regulator has granted three licenses to sell satellite and digital radio in this country, a decision that industry experts predict will lead to upheaval in the industry.
The Canadian Radio-television and Telecommunications Commission said in a landmark ruling Thursday that all three applicants who applied can have licenses to sell subscription radio in Canada, provided they comply with certain Canadian-content rules.
"These decisions foster the objectives of the Broadcasting Act and balance the interests of Canadian consumers, the radio industry and the music industry," CRTC Chairman Charles Dalfen said in a statement.
The three applicants are Canadian Satellite Radio Inc., a Toronto-based joint venture between entrepreneur John Bitove Jr. and Washington-based XM Satellite Radio Holdings Inc.; Sirius Canada Inc., a partnership between Canadian Broadcasting Corp., Toronto-based Standard Broadcasting Corp. Ltd., and New York-based Sirius Satellite Radio Inc.; and a joint venture of Toronto-based CHUM Ltd. and Montreal-based Astral Media Inc. that proposes to use terrestrial transmitters instead of satellites.
The CRTC set the following conditions for the satellite providers:
* At least eight original channels produced in Canada. A maximum of nine foreign channels may be offered for each Canadian channel
* At least 85 per cent of the musical selections and spoken word programming broadcast on the Canadian channels must be Canadian
* At least 25 per cent of the Canadian channels must be in the French language
* At least 25 per cent of the musical selections on the Canadian channels must be new Canadian musical selections
* A further 25 per cent of the selections must be by emerging Canadian artists.
In addition, the CRTC ruled that the satellite providers must donate a minimum of 5 per cent of their annual sales to "initiatives for the development of Canadian talent," such as funds that help development both English and French-new musical artists.
The Astral/Corus application has promised to provide the highest level of Canadian music and programming of the three, a key concern for the Canadian regulator. The Astral/Corus station plans to offer 50 channels produced entirely in Canada, 20 per cent of which will be in French language, as well as five channels geared towards the Aboriginal, Chinese, German, Italian and South Asian communities.
There are already thousands of Canadians receiving U.S.-based satellite radio service in Canada. Prior to the release of the CRTC's decision, there had been concern about the amount of Canadian content the U.S.-based satellite companies would provide. Each has proposed to include several Canadian channels among the more than 100 channels they beam across North America.
Most industry players and other observers had expected that licences would be granted to all three of the applicants, but with detailed and possibly restrictive conditions.
Instead of stabilizing the subscription radio scene and preparing it for a smooth launch in Canada, the CRTC decision could end up causing even more turmoil.
With files from Richard Blackwell and Simon Tuck.
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