TORONTO – Rogers Media has applied to start its own pay audio service to compete with Galaxie and Max Trax.
In its application to the CRTC, Rogers proposes to operate a pay audio service with at least 30 channels, available through the digital set-top box, providing commercial-free music in a variety of formats, similar to the existing services.
If approved, and the service is carried by Rogers Cable, the cableco would have to carry a third-party pay audio service because of the affiliation, Rogers noted in its application.
The Rogers Media application did not make a clear case for why a third pay audio service is needed in Canada, especially given the recent launch of the XM and Sirius Canada satellite radio services, which Rogers Cable has recently applied to carry. (The pay audio application is separate from that sad rad request.)
But the Rogers Media submission did state that “existing pay audio services have garnered interest from Canadian cable and DTH subscribers,” so presumably there is a business case for operating such a service. It also spoke of the highly competitive music field, now crowded with iPods and satellite radio.
Its submission did not state how much Canadian content it would air, though it said it “would also be prepared to agree to a condition of licence requiring a general 35% Canadian content level,” which is required of the existing pay audio services.
However, Rogers would prefer to have varying Cancon levels, matching the radio regs, which require a minimum of 35% in pop, rock, dance, country, and easy listening formats, but only 30% for oldies, 15% for instrumental-only channels, 10% for specialty formats such as jazz, and 7% for third-language music.
Rogers said the service, to be called Rogers Pay Audio, “will very likely produce all of the channels on our service.” As such, all of the channels will be Canadian, unlike the two satellite radio services, XM and Sirius Canada, which carry mainly channels from their American parents.
Rogers would contribute 4% of annual gross revenues to Canadian talent development, as required of the existing pay audio services (in this case, it would go to the Radio Starmaker Fund/Fonds RadioStar).
The service would be 100% owned and operated by Rogers Broadcasting Ltd.
Rogers would not comment on its proposal until the deadline for interventions passes (which is Oct. 5) and the company has 10 days to reply.
