OTTAWA – The Canadian Association of Broadcasters has asked the CRTC to defer its planned review of the Canadian radio sector for at least 24 months.
The CAB is of the view that current radio policy is working well enough for now and the Commission should wait and analyze the impact of the new subscription radio services about to hit the market before embarking on a re-do of Canadian radio policy.
The Canadian broadcast industry has been waiting for a CRTC public notice announcing the much-delayed review and is now hoping it can be put off further.
“It is the CAB’s view that the circumstances of the radio industry and related sectors in the near future are such that discussions of the policy at this time are unlikely to lead to a successful resolution of the issues at hand. Moreover, the current policy continues to provide benefits to both the radio and music industries and in the CAB’s view has not given rise to any critical issues in urgent need of immediate review,” reads the CAB letter, authored by president and CEO Glenn O’Farrell.
Other issues include the stalling of digital radio rollout in Canada and around the world (except in the U.K.) and other emerging technology which is still in its infancy and whose overall impact on broadcast radio is still uncertain.
Most importantly though according to the CAB, traditional broadcasters will need time to assess the impact of satellite radio, which will launch in Canada this fall from SIRIUS Canada and Canadian Satellite Radio.
“At this particular time, during the launch of satellite radio in Canada, it is completely impossible for the radio industry to advise the Commission on what a renewed strategy for digital transition should be, or what impact a new strategy might have on the prospects of the commercial radio industry,” says the CAB letter.
“It is possible, though there is uncertainty here as well, that the terrestrial subscription radio licensee might have some role in a renewal of the Eureka-147 based technology strategy. Meanwhile, some broadcasters have shown interest in the U.S. IBOC (in-band on channel) technology, but it is far from clear that IBOC will provide the elements needed for a successful consumer launch and consequently a successful digital transition for commercial radio, since it suffers from the same commercial disadvantages as Eureka-147.”
The next two holiday seasons will be crucial – to see just what consumers end up getting for Christmas in terms of audio or radio gear.
“This holiday buying season will be crucial, as will the anticipated entry of new manufacturers into digital radio in the new year, and their success in the holiday buying season of 2006. Therefore a delay of the radio review for 24-36 months would allow the radio industry to identify the right path to propose a coherent and cohesive plan to ensure a successful digital transition for commercial radio. No such plan is possible at the current time – and yet, such a plan is integral to the success of commercial radio and the discussion of its appropriate contributions to public policy,” says the CAB.
The delay will also allow for a cooling off period, says the CAB, between those in the radio and music industry who found themselves on opposing sides of the satellite radio issue.
In its reply to O’Farrell’s letter, the CRTC was non-committal, but said it will have something soon (Ed note: I’m guessing before – or at – the CAB’s annual convention in Winnipeg, November 6 to 8).
“The Commission will make its determination with respect to the timing and content of any review of commercial radio policy shortly. The CAB and other interested parties will be informed of this decision in the normal course,” said the letter from CRTC secretary general Diane Rhéaume.
– Greg O’Brien
