RADIO RULING DRAWS STATIC FROM CHUM-ASTRAL TEAM CRTC gives go-ahead to all three applicants – Canadian group faults local content requirements Graham Fraser – Toronto Star The federal broadcast regulator approved three new satellite and digital radio services yesterday. But the one all-Canadian player in the race immediately complained that its competitors were let off too easily in terms of Canadian content.
The two applicants that have partnered with U.S. satellite radio broadcasters said they were delighted with the Canadian Radio-television and Telecommunications Commission ruling. A partnership of CHUM Ltd. and Astral Media complained of unfair competition.
The CHUM-Astral group was given the go-ahead for a digital ground-based service on the terms they had asked for. The other two applicants, Canadian Satellite Radio Inc. and Sirius Canada proposed subscriber packages to be delivered from U.S. satellites with U.S. partners.
The CHUM-Astral partnership said it was disappointed by the conditions set for its competitors, despite the fact they were told they had to boost their Canadian content.
"To put it lightly, shocked, stunned and quite surprised by the decision," said Phil Ski of CHUM Ltd., when asked his reaction. "We are going to have to review the decision in detail over the next few days to determine whether or not it would be appropriate for us to launch, given the conditions."
Ski said CHUM and Astral had thought there would be a more equitable playing field.
"We don't believe there is," he said. "In essence, what's happening is that all of the channels that CHUM and Astral are putting on the table are all Canadian-developed channels, originating in Canada, produced in Canada, and have the requisite amount of Canadian content."
The satellite applicants, he said, would be able to launch their service with 10 per cent of their channels being Canadian.
"That's all," he said. "We don't think that's equitable."
He said CHUM and Astral had always argued that unless the conditions were equitable between the satellite and non-satellite services, it would be difficult for them to launch.
Canada's private conventional broadcasters, meanwhile, immediately complained their Canadian content requirements were too onerous.
"Subscription radio will compete for audiences, and consequently will have an impact on conventional radio in Canada," said Glenn O'Farrell of the Canadian Association of Broadcasters in a statement.
He argued the licensing of new national subscription radio services should not be allowed to undermine local radio broadcasters.
O'Farrell also pointed out that Canadian private radio stations are required by CRTC regulations to devote 35 per cent of their music to Canadian content, and for French-language stations, 65 per cent French vocal music (55 per cent between 6:00 a.m. and 6:00 p.m., Monday to Friday). They are also required to abide by spoken word content regulations.
Kevin Shea, the president of Sirius Canada, thanked the CRTC for the decision.
"They've given us a framework to work toward," he said, adding that he would have to consult with his U.S. partners.
Sirius has teamed up with the CBC, Standard Radio and Sirius Satellite Radio Inc., based in New York.
Similarly, Toronto businessman John Bitove, chief executive of Canadian Satellite Radio Inc., was also pleased.
Canadian Satellite Radio is in partnership with XM Satellite Radio Holdings Inc., based in Washington D.C. Like Shea, Bitove said he would have to consult with his partner to alter the business plan.
"They're a big public company in the U.S., and we have to negotiate with them now," he said.
The two satellite partnerships were given guidelines for providing Canadian content.
These include providing original Canadian content on a minimum of eight channels, or 10 per cent of the channels to be provided, with 60 per cent of the Canadian channels being music channels, and 25 per cent of them being French-language channels. On those Canadian channels, 85 per cent of the content will be Canadian, 25 per cent must be new musical selections, and 25 per cent must be by emerging Canadian artists.
CRTC chairman Charles Dalfen said there was no possibility of a Canadian satellite, and the regulator was forced to accept that a satellite service would be piggy-backed on a U.S. service.
The solution, he said, would address the problem of a growing "grey market," illegal subscription to U.S. services, and provide radio service to Canadians in remote areas as well as commuters.
"If you're commuting along the Gardiner, it's nice to have this choice," he said. "You can listen to the weather (on local radio) and then listen to the all-Mozart channel."
Jim Thompson of Friends of Canadian Broadcasting argued that the decision has opened the floodgates to American radio programming coming into Canada, and expressed deep disappointment that the CBC was a partner with one of the American satellite services.
"If (CBC President Robert) Rabinovitch had been in charge when television first came on stream, today we would have about one hour of Canadian programming on ABC and CBS in Canada," he said. "We wouldn't have CBC." |