OTTAWA – With several video distributors now asking to add the satellite radio channels from XM Canada or Sirius Canada to their respective channel lineups, the Canadian Association of Broadcasters has asked the CRTC to take a close look at the applications.
Responding to a request made by Bell Canada earlier this year to add the satellite radio signals to its terrestrial TV channel lineups, the CAB said "the application focuses attention on one of the fundamental principles of the Canadian broadcasting system, i.e. the requirement for a predominance of Canadian services, and that therefore a number of matters need to be addressed by the Commission before authorizing the distribution of subscription radio services by Bell or by broadcasting distribution undertakings (BDUs) in general. BDU carriage changes the underlying business plans of the satellite radio services," reads the letter from CAB senior vice-president of policy and regulatory affairs, David Keeble.
Along with Bell, Rogers, Cogeco, and Telus have all made similar applications.
Saying that licensing the sat rad companies in Canada did not contemplate BDU distribution, new rules should be created if the CRTC is to approve the Bell application. "(T)he Commission, in licensing these services, imposed obligations on the licensees of the satellite radio services that were based on the nature of the delivery technology and the detailed business plans proposed by the applicants. Because the services are delivered by satellite with a North American footprint, they were given different conditions and obligations than those delivered through purely terrestrial means to Canada," says Keeble’s letter.
BDU distribution would increase the subscriber base for XM and Sirius in Canada and boost revenue. This, in turn, should increase the Canadian content obligations on the Canadian satellite radio companies, says the CAB. "Depending on the number of BDUs who ultimately choose to distribute these services and the specifics of the distribution arrangements negotiated with individual BDUs, it is possible that the satellite radio services could access hundreds of thousands if not millions of new subscribers… (G)iven the potential implications of distribution through BDUs, the CAB submits that any authorization for BDU distribution should be accompanied by consideration, perhaps by licence amendments proposed by the satellite radio licensees, of what incremental obligations should apply to satellite radio services as a result of incremental distribution arrangements."
Plus, since the sat rad channel lineups themselves are 90-10 in terms of foreign-vs.-Canadian channels, simply adding them into the Rogers Cable lineup, for example, would run counter to the regs which call for a predominance of Canadian channel carriage by all BDUs.
A distributor "would need to distribute a sufficient number of Canadian programming services, such as Canadian commercial radio stations, Canadian specialty radio licensees, Canadian pay audio services and/or other Canadian audio services, to ensure that there is in fact an overall majority of digital audio channels devoted to Canadian services," notes the CAB submission.
"While section 6(2) of the Regulations has a mechanism for the Commission to relax the requirement for a majority of Canadian channels, the CAB notes that Bell has not applied for such relief. In any event, the CAB is of the view that any relaxation of this fundamental requirement in the case of Bell or any other BDU cannot be justified on any reasonable grounds and would therefore be inappropriate."
