GATINEAU – Bell Canada has applied to the CRTC to be allowed to carry one or both of Canada’s satellite radio subscription services on its cable BDUs serving parts of Ontario and Quebec.
Bell has two regional Class 1 digital licences, serving Toronto, Hamilton/Niagara, Oshawa, Kitchener, London, Windsor, Ottawa, and the surrounding areas, and one serving Montreal, Gatineau, Sherbrooke, Quebec City, and the surrounding areas. The Ontario BDU will roll out starting in Toronto later this year, while the Quebec service is already operating in parts of Montreal, the company said in its application. Bell wants to be able to distribute XM Canada and/or Sirius Canada with each BDU.
Rogers Cable has applied for permission to carry satellite radio in its Class 1 BDUs in Ontario, New Brunswick, and Newfoundland and Labrador. Bell says it supports Rogers’ proposal as long as applications from other BDUs are approved.
Bell says carrying sat rad on its digital undertakings would give many benefits to consumers and artists alike. “First, it will give these services instant recognition that would allow them to grow their businesses,” the company says. This would increase programming choices for Canadians and boost the exposure and financial support to Canadian musicians, especially new and emerging artists.
Next, “given the excitement in the market” for satellite services, it would encourage more analog cable subscribers to move to digital. “Subscriber growth of digital distribution undertakings has been shown to drive more revenue for specialty, pay TV, Class 1, and Class 2 programming undertakings. Furthermore, a subscription to a digital BDU eases the consumer’s transition to reception of high definition television services,” Bell’s application says.
The move would also “level the playing field” with DTH services, which have been granted permission to air satellite radio services.
Satellite services are currently distributed on American DTH services, Bell notes. “The draw of these powerful brand names, if not replicated by Canadian distributors, could further encourage Canadian consumers to abandon the Canadian broadcasting system to obtain U.S. satellite service through the grey or black markets.”
Bell says that the impact of sat rad on existing licensed radio and pay audio services “would be minimal,” noting that the CBC, licensee of the Galaxie pay audio service, appeared at the CRTC sat rad hearing in support of Sirius Canada, while Corus, which owns the Max Trax pay audio service, appeared in support of Canadian Satellite Radio, which became XM Canada.
Bell’s application is here.
