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by CTV.ca News Staff
CTV.ca
Jun 17, 2005
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The CRTC opened Canadian skies to a potential
revolution in broadcasting Thursday, with its approval of three licences
for digital radio services. The services won't fly, however, unless
they meet strict Canadian content standards.
"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 Thursday.
Pay radio, a developing industry south of the border, offers subscribers
CD-quality programming beamed directly to their specially-designed receivers.
Aside from its high fidelity, proponents of the service tout its ability
to reach listeners in remote locations, out of reach of regular radio
signals.
All that comes at a price, of course. The service is expected to cost
between $10 and $13 a month, with a minimum $100 price tag on the radio
receiver.
In its decision, the Canadian Radio-television and Telecommunications
Commission gave the go-ahead to one ground-based and two satellite-based
services, but only if they adhere to strict content guidelines.
The conditions placed on the two newly-licensed satellite radio services
include:
- At least eight original channels produced in Canada, 25 per cent
of which must be in the French language
- A maximum ratio of nine foreign channels to each Canadian one,
- 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 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
- At least 5 per cent of their gross annual revenues to initiatives
for the development of Canadian talent
Of the two satellite services, one was proposed by Sirius Canada Inc.,
a consortium involving the CBC, Standard Radio, and U.S.-based Sirius
Satellite Radio.
The other is backed by Canadian Satellite Radio, a partnership with
Washington-based XM Satellite Radio Holdings owned by Toronto entrepreneur
John Bitove Jr.
The third proposal, brought by CHUM and Montreal-based Astral Media,
was for a digital radio service using land-based transmitters.
Unlike its space-based competition, the ground-based service was given
the green light for 50 Canadian channels, with 20 per cent in French.
In terms of content, it will have to ensure that 35 per cent of the
English-language stations' popular music is Canadian, while the service
as a whole will have to contribute two per cent of gross revenues to
developing new homegrown talent.
Appeal possible
While the CRTC raised the bar for Canadian content, the main satellite
players say they should be able to live with the demands.
"If you believe that competition is good, it's a good decision
that the CRTC made," Bitove Jr. said, appearing on CTV Newsnet's
Countdown with Mike Duffy Thursday night.
"I think we've got our work cut out to see if we can get XM aligned
with us on these new requirements."
However, a spokesperson for the lobby group Friends of Canadian Broadcasting
said the CRTC should not have approved all three proposals.
The group supported the CHUM bid and is worried it will die because
of competition from the other American-allied proposals.
The group will be meeting with other arts organizations to consider
appealing the decision.
While CHUM Radio Executive Vice President Paul Ski admits he was disappointed
by the decisions, he is "not sure if there should be an appeal."
Ski said, appearing on Countdown, that the CRTC's ruling makes it difficult
for "those of us who are thinking of launching subscription radio
in Canada."
Analysts say that Canada, with its many remote communities beyond the
reach of conventional radio stations, is a natural market for satellite
radio.
The death of traditional radio?
With the prospect of listening to any kind of music without the interruption
of advertisements and DJs, digital radio is expected to offer some fierce
competition to Canada's slate of small AM and FM radio stations.
John Hayes, president of Corus Radio, one of the country's largest radio
broadcasters, notes that satellite radio cannot deliver local news,
weather and sports.
He says conventional radio is doing fine, noting that last year industry
revenues were up by between two and 2½ per cent and that this
year looks even better.
Jeff Vidler, partner at Solutions Research Group dismissed claims from
critics who say the decision means the end of radio as we know it.
"Some people say satellite radio will mean the death of traditional
radio -- not necessarily. It means another chapter in radio," Vidler
said, appearing on CTV Newsnet.
"There was AM radio, FM radio, and now satellite radio."
CJLS Yarmouth radio station co-owner Chris Perry isn't worried either.
"Local radio stations were destined to die when the eight-track
came out, and then the cassette, and then the CD, and now digital radio,"
Perry said, appearing on Countdown.
"I see local land-based radio stations surviving well into the
next century."
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