MONTREAL – Satellite radio will boost French culture says a new study commissioned by Canadian Satellite Radio.
From July 14 to July 19, 2005, CSR (the partnership between Canadian John Bitove and XM Satellite Radio) had the Omnitel Omnibus group survey Quebec residents to gauge their interest in satellite radio.
Predictably, the study found that Quebeckers were solidly behind satellite radio. "A mere 5 per cent of Quebecers think satellite radio could have a negative affect; however, 55 per cent of Quebec residents stated that satellite radio will positively affect Canada’s French culture. CSR is eager to launch our service and bring Quebecers the French content they are asking for," said André DiCesare, French talent and industry relations for CSR, in the press release today. "By investing in French artists, French programming and French talent development, CSR hopes to bring Quebec culture the exposure it deserves."
The survey was released, ostensibly, to help counteract the appeals to Federal Cabinet by several Canadian cultural groups, at least in the forum of public opinion.
Other parts of the survey say that 22% of Quebec residents would be interested in subscribing to a Canadian satellite radio service for the planned price of $12.99 per month. Also, two-thirds of Quebec respondents agreed that they would like to be able to listen to French radio stations when they travel outside of the province, says the release.
“One of the primary discoveries found that, while traditional radio stations are struggling to hold onto a younger audience, respondents under age 35 expressed higher levels of interest in satellite radio, illustrating that satellite radio could be a stronger medium to reach younger listeners,” adds the statement.
CSR has estimated that the Canadian economy will receive a benefit of approximately $2 billion in overall economic activity over the next decade should the satellite radio services launch in Canada. Factored into this direct benefit to the economy are artists royalties and development funding, retailer revenue, auto manufacturing, marketing costs, shipping and distribution, production fees, installations, salaries, subscription fees and various government taxes.
CSR plans to invest $35 million throughout its first licensing term to support the growth of the Canadian music and entertainment industry, from which 50 per cent will be reserved for francophone artists, including nearly $7 million to key organizations, MusicACTION and ADISQ, as well as financial support for numerous other initiatives including European showcases and new national talent contests to support emerging artists.
"With an increasing number of independent artists, consumers, retailers and automakers asking for satellite radio in Canada, we want to ensure that this fast growing consumer technology can soon be made accessible by Canadians, providing the myriad of benefits that come with offering it in this country," added CSR president Stephen Tapp. "We fear that if they can’t get it in Canada – the grey market will continue to grow as consumers will continue to tap into the US for satellite radio services – a service that does not include the depth of French language and English Canadian programming or the monetary benefits that a Canadian service will be able to provide."
The survey was conducted via telephone using a randomly selected sample of Canadians aged 18+. Only the Quebec portion of the sample was asked to respond to the custom questions about satellite radio. With a Quebec sample size of 501, the results are considered accurate to within (+/-) 4.38 percentage points, 19 times out of 20, of what they would have been had the entire adult Quebec population been polled. Within Quebec, a quota was assigned to ensure a proportionate number of interviews were completed in Montreal. The sample was then weighted to replicate the actual population distribution by sex and age within the province of Quebec.
(Ed. Note: If it seems like Canadian Satellite Radio is doing all the heavy PR lifting when it comes to counter-attacking the opposition, you’re not seeing things. The other Canadian satellite radio license holder, SIRIUS Canada – a partnership with Standard Broadcasting, the CBC and SIRIUS, has remained pretty quiet. We’re told by several sources that’s likely due to CSR’s plans for an initial public offering later this year or early next, so it needs to be front and centre, defending the satellite radio turf as it aims for a fall 2005 launch. While XM has no ownership stake in CSR, SIRIUS (U.S.) is a part-owner in SIRIUS Canada, so the CBC/Standard group doesn’t need to go public for additional capital at this time, even though it, too, is aiming for a fall launch.)
