Satellite Radio Licenced

The Canadian Radio-television and Telecommunications Commission (CRTC) today announced the approval of three subscription radio licences and the establishment of a licensing framework for satellite subscription radio services.

The Commission approved the licence applications of SIRIUS Canada Inc. (SIRIUS Canada) and Canadian Satellite Radio Inc. (CSR) for subscription radio services to be delivered by satellite and terrestrial transmitters, and the application by CHUM Limited (CHUM/Astral) to offer subscription radio services uniquely through terrestrial transmitters.

The Commission placed conditions on the two newly-licensed satellite radio services, designed to ensure the broadcast of Canadian content and to benefit established and new Canadian artists.

The Commission is requiring that the satellite subscription radio licensees offer:

At least eight original channels produced in Canada. A maximum of nine foreign channels may be offered for each Canadian channel

At least 85% of the musical selections and spoken word programming broadcast on the Canadian channels must be Canadian

At least 25% of the Canadian channels must be in the French language

At least 25% of the musical selections on the Canadian channels must be new Canadian musical selections

A further 25% of the selections must be by emerging Canadian artists.

The licensees must also contribute at least 5% of their gross annual revenues to initiatives for the development of Canadian talent, such as FACTOR or MusicAction funds which assist the development of new musical artists. These contributions will be contributed equally to the development of English and French-language talent.

Meanwhile the Canadian Association of Broadcasters (CAB) is urging the CRTC to ensure for local commercial radio a fair regulatory environment in a highly competitive marketplace.

“Subscription radio will compete for audiences, and consequently will have an impact on conventional radio in Canada,” said Glenn O’Farrell, President and CEO of the CAB.

“The licensing of these new national subscription radio services under a new regulatory regime should not be allowed to undermine the ability of local radio broadcasters to serve their respective communities in both English and French-language markets across Canada.”

The service is expected to cost consumers between $15 to $20 per month.