OTTAWA – The CRTC has licensed all three applications for pay radio services in Canada, opening the industry to unprecedented competition and consumer choice.
However, the services will be heavily regulated, unlike their progenitors in the United States. The commission imposed what could be seen as onerous Cancon requirements on the two satellite services: SIRIUS Canada and Canadian Satellite Radio Inc. (CSR). The terrestrial-based service owned by CHUM and Astral Inc. was approved as filed and will have to follow existing regulations for conventional radio (such as having at least 35% Cancon for popular music).
The Commission is requiring CSR and SIRIUS to produce at least eight channels in Canada (they had proposed five in their applications), with at least 25% of them in French. For each Canadian channel, they can have no more than nine foreign ones. Canadian channels must be original (more than 50% programming created just for the satellite service, not rebroadcast from a conventional radio station), and air at least 85% Cancon of music and spoken-word programming. Of the Cancon music, 25% must be new music (released within the last six months), and another 25% must be by emerging Canadian artists (never had a radio chart hit before).
As well, the satellite services must contribute at least 5% of gross annual revenues to funds that develop Canadian content, such as FACTOR or MusicAction. CHUM only has to pay 2% because it has larger start-up costs and plans on producing 50 Canadian channels to launch (with another 50 possibly added in year four of operations).
CSR and SIRIUS say they are seriously considering launching later this year, while CHUM says the low number of Canadian services required of the satellite services means there is no “level playing field” and they are reconsidering their business plan and may not launch.
No subscription-based service can do local advertising or programming. They are restricted to six minutes of spots per hour of national advertising.
The foreign (mainly U.S.) channels aired on the Canadian services would have to follow Canadian standards in terms of offensive material, meaning that some channels may have to be blacked out here.
CRTC Chair Charles Dalfen told www.cartt.ca the licensing framework tried to “strike a balance” among the interests of the industry, consumers, and musicians. By approving all three applications, the commission is trying to stem the grey market of U.S.-based services coming into Canada, he says.
Other benefits to Canadians are having more homegrown channels, reaching small and remote communities, giving more exposure to Canadian talent, and giving listeners greater mobility to radio services, the CRTC says.
CSR and SIRIUS have to inform the commission in writing within 150 days as to whether they would accept these new conditions of licence. Both said they will like respond much sooner than that.
