Radio / Television News

Cabinet decides not to meddle in satellite radio decision


GATINEAU – Now that the two new Canadian satellite radio companies were scared into committing to more French language channels (going from three to four, or half of the Canadian channels they each will have), the federal cabinet issued a statement today saying it won’t interfere with the CRTC decision on the matter.

After two months of enormous lobbying pressure from all sides, as reported extensively by www.cartt.ca, Minister of Canadian Heritage Liza Frulla and Minister of Industry David Emerson late this afternoon said that cabinet decided to let the decision stand.

After looking at several appeals of the June 16th CRTC decision to license SIRIUS Canada (a partnership of Standard Radio, the CBC and SIRIUS) and Canadian Satellite Radio (a relationship between XM Satellite Radio and Canadian businessman John Bitove) received by the Governor in Council, “the Government of Canada is upholding the Canadian Radio-television and Telecommunications Commission (CRTC) decisions that permit Canadian Satellite Radio (CSR) and SIRIUS Canada to operate satellite radio subscription services, and CHUM-Astral to operate a terrestrial subscription radio service,” says this afternoon’s government statement.

CHUM and Astral were the key appellants of the decision, saying the level of Canadian content required by the satellite companies is unfair when their terrestrial option promises the same levels of Cancon as over-the-air radio. CHUM officials have said in the past that its terrestrial option will likely not launch in the face of the satellite companies.

“The Government also welcomes the recent requests by CSR and SIRIUS Canada for the CRTC to amend their licenses to enhance their offering of Canadian and French-language programming. The CRTC’s forthcoming public process to review the license amendments will enable Canadians to express their views on issues such as the impact of new technologies on Canadian content and consumer choice,” it added.

“I am pleased that our discussion on the issue of Canadian and French-language content on satellite radio has resonated with Canadians, and led to an intense dialogue in recent weeks,” added Minister Frulla. “The proposals put forward by Canadian Satellite Radio and SIRIUS will raise the level of Canadian and French-language content higher than was required in the original CRTC decisions and ensure a variety of Canadian choices for the benefit of all Canadians.”

The Canadian Recording Industry Association, despite the fact that Canadian artists will now get North America-wide exposure on satellite, stuck by its opposition to the decision. "Our country’s longstanding and successful Canadian content policy has been dealt a blow," said Graham Henderson, president of CRIA, in a release.

"We regret that the importance of maintaining this policy wasn’t reflected in the decision by our elected representatives.

"I know that all of us, on both sides of the satellite radio debate, place enormous value on a vibrant, homegrown culture," Henderson added. "We look forward to working with our colleagues in the broadcasting and cultural communities to heal the rifts opened by this debate, and to working together to secure a strong future for Canadian culture."

Of course, SIRIUS Canada and Canadian Satellite Radio are pleased and both say they will launch either “shortly” or “soon”.

Sirius Canada is delighted that cabinet has confirmed the CRTC’s decision and we look forward to bringing satellite radio service to Canadians as quickly as possible," said Kevin Shea, president and CEO, Sirius Canada. "Having listened and responded to the concerns expressed over the recent weeks, we are confident that will be bringing a stronger product to market, a product that meets the unique needs of Canadian listeners, and artists."

“The CRTC decision is good news for Canadian artists because it will provide an unprecedented platform to reach a larger audience," said Gary Slaight, president and CEO, Standard Broadcasting. "In addition, Canadian artists will benefit from Sirius Canada’s planned $22 million investment toward French and English talent development initiatives over the next seven years."

"Canadian consumers can look forward to hearing more from Sirius Canada shortly," continued Shea. "With this behind us, we can concentrate on putting together a winning lineup of channels and subscription and product packages that will appeal to a broad spectrum of Canadian listeners."

"We are going to make the right honourable Prime Minister Paul Martin, the government of Canada, the Canadian Radio-television and Telecommunications Commission, all of Canadian Satellite Radio’s automotive, retail and artist supporters and all Canadians proud of the government’s decision today to support the CRTC’s decision of June 16," said Bitove, chairman and CEO of CSR, in its release.

– Greg O’Brien