Written by David Bray | 05 November 2009

Radio people are always looking for new ways to generate revenue.  Few, could argue that, in order to do so, radio has had to reinvent itself over the years.  It is that very flexibility which has allowed the medium to thrive during different ages.  Now is the time to address a new generation of opportunities.

Written by David Bray | 05 November 2009

The CRTC ruling allowing duopolies effectively clears the way for radio in major markets across Canada to be controlled by a few significant groups.  One of the most influential of these is Standard Radio Inc.  To understand its history, you have to take a closer look at who is holding the reins.

President Gary Slaight is one of the driving forces behind the policies that characterize Standard.  His father, Allan Slaight, purchased the group in 1985 and son, Gary, joined him in 1987.  In recent years, Gary has overseen the day to day dealing of the firm's radio division.

while some groups become bogged down by red tape, requiring a committee to confirm the time of day, that isn't true at Standard.  the always -decisive Slaights hold the reins.  This approach affords a variety of benefits.  When it comes to acquisitions, they can proceed aggressively without having to answer to shareholders.  Gary has been working to build a strong network of rock stations in major markets across Canada.  One of the more recent purchases was that of Z95.3/CISL in Vancouver for a rumored purchase price of approximately $18 million.  That turned out to be a steal as Z95.3 with its 12+ tuning share of 13.1 per cent is a market leader.  Add to that rockers CJAY92 in Calgary, the Bear in Edmonton, the Bear in Ottawa, MIX 96 in Montreal and flagship MIX 99.9 in Toronto and you have a network to be reckoned with.  With the exception of their recent sale of St. Catharine's HTZ-FM to the O'Briens for "too much to turn down," Standard seems to be assuming an acquisitive posture.  Gary Slaight confirmed that HTZ-FM wasn't fitting into their long-term major market strategy and would be better off in the hands of a local broadcaster.

This chart covering Standar's major market stations as of the Summer '98 BBM demonstrates the firm's overall strength.

Whereas other conglomerates such as WIC have tended to allow each market operation to operate more or less independently, Standard has continued to centralize many functions.  By cutting through much of the red tape, Slaight has managed to strictly control operating costs and deliver impressive profit margins.

Slaight brought in well-known programmer Jim Johnston (J.J.) as director of programming for the group.  In his career J.J. has posted some great numbers for a variety of rock stations, most recently the FOX, and then CFMI-FM in Vancouver.  His influence is immediately apparent, particularly in the strides made by Toronto's MIX 99.9.  One of his many innovations was the insertion of multilingual breakers/liners.  This kind of progressive thinking is critical in a market that has been called the "most culturally diverse in the world".  Johnson works on a weekly basis with the great lineup of programmers in the other markets to share successes, promotion ideas, and ensure continuity throughout the group.  One persistent rumour had Standard brining hot talker Howard Stern into Ottawa as well as other markets.  Slaight now offers assurances that this won't happen, given the costs, the controversy, and the declining ratings for Stern.

On the sales front, Bill Hertz assumes the role of national director of sales, coordinating the efforts of GSM's across the country.  Except for one brief dalliance with the CHUM group, Hertz has been a long time employee of Standard.  Hertz proudly points to the fact that Standard aggressively seeks to drive the overall cost per points in their markets.  At the same time, he stressed the importance of "client service" and "new ideas" for clients.  Along those lines, Standard's centralized approach has allowed them to develop national promotions and features for clients with all their FM stations participating.

In this era of acquisitions, amalgamations, and duopolies, there is one certainty concerning Standard Radio.  With the Slaights holding the reins, it's going to be an exciting ride.

Written by David Bray | 05 November 2009

Over the past year I've been to a few spectacular send-offs, lavish lunches and rapturous retirement dinners.  But sadly, for the vast majority of good people making excellent contributions in the broadcasting / advertising/marketing industries, no such honours wait in store.  Please consider this my simple tribute to those who are too often forgotten.

In part, as a consequence of consolidations and conglomerate buyouts, we have recently seen a wave of layoffs.  A new owner often spells trouble for the old staff.  Or perhaps it is someone new at the helm implementing a series of cost cutting measures.  Or a bad ratings book.  Or it may just be an employer who has forgotten the meaning of loyalty.

Being a middle ages, mid-level manager without a job has become frighteningly common.  Nobody is lobbying on behalf of those individuals.  This is not to make light of the prejudice that others in our communities have faced.  Those are serious situations that society is working to address.  But who speaks for the little guy who has been cut loose; the working family man and woman who have tried to do their best for so many years simply to find themselves friendless when whatever power they had is gone.  All of a sudden, people aren't so quick to return their calls.

This piece was prompted by a couple of recent emails I received, which were farewell notes from friends recently shown the door.  That is a true mid life crisis.

They need to make a living to support their families but find a decided lack of openings for someone with their experience.  Starting over in a different field is a daunting challenge.  Employers aren't exactly champing at the bit for trainees in their forties or fifties.

Even more insidious is the threat to their sense of self-worth.  Somewhere along the line our priorities have gotten dangerously of of whack.  Politically astute glad handers get gala dinners while truly decent, conscientious hard working individuals get forgotten.

No Hall of Fame in their future.  Well those people are my heroes.

Why do we respect the smug and sometimes cruel people who misuse power?  I think of a well-known senior executive who gleefully told the story of how he reduced one of his managers to tears.

In the end, I will remember those who gave it their all, acting with humanity and always keeping their priorities straight.  After all, a great cost per point, a number one in the ratings, or one's ability to exceed sales quotas aren't really worth much as an epitaph.  I know that, to some, this sentiment may seem quaint or even humorous.  We'll probably never share the same values.

The ones I respect are all those that face adversity with dignity.  That fight on for their families while maintaining the respect of their friends.  I may not be able to afford a gala, but you'll always be welcome at my place for dinner.

Written by David Bray | 05 November 2009

I find myself at a loss for words. I make no claim to being the purveyor of profound insights. In fact, I am constantly astonished by how little I really know. The awareness of that fact comes with time and experience. The certainty of youth soon gives way to a sometimes confused pondering of various perspectives. Perhaps I can best summarize with the title of a piece I wrote, "The More I Learn, The Less I Know." But sometimes you are struck by words and actions that resonate with such emotion that for at least a moment, a truth becomes clear.

A few months ago I wrote a column that was "a Tribute to the little guy." A simple tribute to good people making excellent contributions in the broadcasting/advertising/marketing industries for whom no Hall of Fame, lavish lunches or spectacular sendoffs wait in store.

I wrote of my respect for those facing mid-life crises in the form of layoffs.

I'll say it again. These people are my heroes. I concluded with the following:

"In the end, I will remember those who gave it their all, acting with humanity, and always keeping their priorities straight. After all, a great cost per point, a number one in the ratings, or one's ability to exceed sales quotas aren't really worth much as an epitaph. I know that, to some, this sentiment may seem quaint or even humorous. We'll probably never share the same values.

The ones I respect are all those that face adversity with dignity. That fight on for their families while maintaining the respect of their friends. I may not be able to afford a gala, but you'll always be welcome at my place for dinner."

I thank both the RTNDA and Dick Smyth for reprinting the piece.

I have to say that when I wrote those words, it never occurred to me that I was doing anything more than spitting into the wind. With age, we can also become jaded and a bit cynical. Then a series of responses began to come in. Your notes resonated with me in a way that my simple words can't begin to express. Most of all, it left me with the sense that there are some very special people out there with their hearts and values in the right place. The responses came from people in senior and junior positions. From those who have faced difficult circumstances and those who have good luck (so far).

Many just wrote to express their agreement with the sentiment:


One person maintained their sense of humour:


One person offered a succinct response to the rash of layoffs:


Another looks back:


Many of the responses were very personal:


Some reflected on those talented middle aged people facing difficult circumstances:


One of the most moving notes came from a daughter:
While I don't know the gentleman referred to, he must be very special indeed to have raised such a daughter. In my heart, people like her father will always be the true heroes. I suppose we are all best judged by those whose lives we have truly touched.

Your words, stories and sentiments are more articulate than I could ever hope to be. I want to express my profound thanks for showing me that, despite days when it seems like the opposite, there are some very fine people out there sharing values that make us all a little bit stronger. I may not know much, but that is one truth I won't forget.



(Printed in "Broadcaster Magazine")

Written by David Bray | 30 October 2009

Last Friday, the Canadian Radio-television and Telecommunications Commission announced the results of its commercial radio policy review. The process began with four intense days of hearings held this past May in Gatineau, Quebec. Since then, members of the broadcast, music and advertising industries have been anxiously waiting for the word to come down. The surprising payoff? The regulations were not altered.

One portion of the decision that did not attract much attention, but perhaps should have, was L-band licensees - which "will be free to develop whatever broadcast services they believe will be of the greatest interest to the listening public." Remember that DAB stagnated largely because stations were limited to replication of existing AM/FM programming, with the exception of 14 hours per week. Consumers weren't willing to buy new receivers unless they could get alternative programming. Bottom Line: Look for innovative, niche and multicultural broadcasters to exploit this in a big way.

Let's take a look at the highlights, and most importantly, the ramifications of the decision. The CRTC made mention of the stiff competition the medium faces from new regulated and unregulated technologies for the distribution of music (MP3 players, iPods, Internet radio, podcasting, downloading, satellite radio and cellphone radio). "The key challenge facing the radio industry is to remain relevant" in the face of such new technologies, said CRTC chairman Charles Dalfen.

Still, little in the review beyond new approaches to Canadian content development directly addresses these issues. While it was widely expected that a bonus or quota system for new and emerging artists would be introduced, the minimum level of Cancon remains at 35% without further restrictions. Upping it to 40% was considered, but rejected due to the competitive climate in which radio finds itself.

Regulations were changed for classical (raised to 25% from 10%) and jazz and blues (up to 20% from 10%), but this will have an effect on relatively few stations. Bottom line: The CRTC essentially deferred to broadcasters by not imposing more taxing regulations while they are gearing up for the fight with outside influences.

Some important changes were made in the approach to Canadian content development (CCD) contributions. The basic contribution system would be based on a radio station's revenues, as opposed to the size of the market in which it operates. The CAB issued a release saying that "the increased burden that will result from tying these initiatives to broadcasters' revenues is of some concern." Bottom line: This is the way it always should have been - pay on the ability to do so. Smaller niche stations will be the grateful winners in this scenario.

Bottom line: I have a sense that the real review of radio will be conducted by the listeners who are being confronted with all of these choices. Stay tuned.

Written by David Bray | 30 October 2009

Digital Radio Roll-Out Inc. (DRRI), today announced that applications have been filed with the CRTC and Industry Canada, laying the groundwork for the launch of Digital Audio Broadcasting (DAB) in the nation’s capital early in 2002. Notification has been filed by all of the major broadcasters currently active in the market including Astral Radio Inc., CBC/Radio Canada, CHUM Ltd., Rogers Media, Standard Radio Inc., Telemedia Radio Inc.

Duff Roman, President of DRRI, made the announcement at the Canadian Association of Broadcasters (CAB) 75th Annual Convention, currently being held in Ottawa. Mr. Roman declared that "I’m pleased to see the ever-increasing support for DAB in Canada. This enthusiasm has helped to position our nation as a world leader in the development of digital radio. It is only fitting that listeners in the country’s seat of power be treated to the power of DAB - superb digital audio with the addition of value-added datacasting services."

Currently, over 55 DAB stations have made service available to 10 million people in Vancouver, Toronto, Windsor, and Montreal. A comprehensive engineering study is also underway which will plan for new digital audio broadcasting (DAB) stations to serve the major population corridors in Canada. Covered by the new services will be all markets between
Toronto - Windsor, Toronto - Ottawa, Toronto - Montreal, Montreal - Quebec City, Calgary - Edmonton, and Vancouver - Greater Fraser Valley. The planned expansion will add a series of markets including Hamilton, Kitchener, London, Cambridge, Guelph, Cornwall, Calgary, Red Deer, Edmonton, Quebec City, Trois Rivieres and Chilliwack.

Digital Radio Roll-Out Inc. (DRRI), is a non-profit joint initiative of major private broadcasters (Astral Radio Inc., CHUM Ltd., Corus Entertainment Inc., Rogers Media, Standard Radio Inc., Telemedia Radio Inc.), a number of smaller private broadcasters, and public broadcasters (CBC, Radio Canada) with the support of the Canadian government.
DRRI’s mandate is the introduction of digital audio broadcasting services across Canada. DAB is the replacement technology for current AM and FM analogue transmission.

Written by David Bray | 30 October 2009

Radio in Canada is about to make waves unlike any we have heard before. In fact, I would go so far as to call them tidal waves of change. As the CRTC convenes their overall review of radio in an attempt to map out the road for the future, digital radio in various incarnations is the central topic. A series of new applications (pun intended) for the medium are being explored. At the same time that the industry is working to determine the role that DAB will play in the years to come, the concept of subscription radio has been added to the mix. On top of all of this, the way radio tuning will be surveyed in the future is under examination by BBM. For radio fans, this is a sonic feast.

While DAB (Digital Audio Broadcasting) was initially contemplated as a replacement technology for AM/FM, its future clearly appears to rely on a revision of CRTC regulations to allow for introduction of DAB exclusive stations. In addition, a great deal of work is also currently being done on the development of third party datacasting applications which will generate revenue for the broadcasters investing in DAB.

Over 60 DAB versions of AM/FM stations are currently on air in Vancouver, Toronto, Windsor, Montreal, and Ottawa. Seven

Halifax DAB signals are also currently being field-tested. Applications have been made by the stations in Victoria. Experience has taught us that being a high tech replacement technology is good, but not enough. Soaring DAB receiver sales in the U.K. (over 400,000 since June of last year) has demonstrated the importance of DAB exclusive stations in addition to the greatly improved fidelity and data display features. The first multilingual DAB only license has been granted and a number of other applications are pending. Radio Canada/CBC has introduced its first experimental DAB station with their news/weather/traffic offering in Montreal. Look for some very progressive thinking and a number of exciting announcements from them in the near future.

And speaking of the future……if the CRTC buys into the concept of subscription radio, some very interesting alternatives for digital radio may be in store. The CRTC hearing on subscription radio is expected to be held by August or September. Heads were turned recently when three applications were submitted by the filing date. These include the XM/Canadian Satellite Radio and Sirius/CBC/Standard satellite proposals along with the CHUM Ltd. terrestrial/DAB solution. It had been widely expected to be a two way race focusing on the discussion of satellite. But, CHUM took the opportunity to look at an alternative approach utilizing the terrestrial DAB infrastructure, some of which is already in place. 

The initial consideration of subscription radio was triggered by the application made by Canadian Satellite Radio (CSR), a partnership with John Bitove Jr. and XM Satellite Radio based in Washington, D.C. CSR is promising 100 channels of nationwide music and information which will serve both urban and rural areas. The XM service in the U.S. has experienced substantial growth and currently boasts 1.5 million+ subscribers. An agreement to include XM receivers in GM vehicles has been a very positive force, one that is expected to be repeated in Canada. In order to compliment the existing channels, CSR is committed to building studios in both Toronto and Montreal. Moreover, Stewart Lyons of CSR proudly points to the Canadian content XM will be delivering not only to Canadians, but to listeners south of the border. Vice President of Programming, Bob Mackowycz emphasizes the fact that XM will give independent artists a voice in a way that mainstream radio can’t. CSR doesn’t see itself as being in competition with conventional radio, but rather as a compliment to it. One that offers cutting edge niche programming that mass appeal stations can’t afford to deliver. 

The CHUM subscription radio application involves a progressive rollout of urban centres that, by the end of the first term of license, will deliver 100+ commercial free DAB stations in a variety of formats with the much-touted DAB benefits… reliable reception, crystal clear sound, and a data display for song credits, weather, traffic, etc. Most importantly, the CHUM application stresses the fact they will fulfill or exceed the 35% CANCON requirements normally demanded by the CRTC. CHUM is rumoured to be speaking with other broadcasters and potential partners that could provide experience and expertise in subscription media services and wireless communications. It is presumed that the CHUM initiative would feature subsidized digital receivers which would offer both traditional free access for conventional DAB stations as well as their slate of conditional access stations for a $10 monthly subscription fee. 

While we don’t yet have all of the details on the Sirius satellite application (with CBC and Standard as partners), expect a formidable presentation. The value of the CBC to Canadians is highly regarded by Heritage Canada and the CRTC. The CBC sided with Sirius, in part, due to their preference for its satellite configuration from a technical perspective. It is also worth noting that the Sirius application makes mention of seeking the development of combined satellite/DAB receivers. If this becomes technically possible, it would provide an ideal solution for the CBC which is heavily committed to DAB in urban areas. The satellite transmission would allow them to adequately cover all outlying areas. 

Lastly, a BBM committee has been convened to review survey timing and methodology in Canada. The implications of changes in this area are quite far reaching for the industry. I hope to report on some exciting developments on this in the near future.

Listeners have been demanding change and they are, in all likelihood, about to get it. More varied programming options, improved fidelity, display features, and interactivity are just some the features that are in store. From a receiver standpoint, I have seen and heard some of the bells and whistles on the new models being developed for Canada and they are addictive. For example, a new pause and rewind feature (with a 10 minute buffer) allows you to scroll back and hear the traffic report you missed or listen to that last song over again. Things just keep getting better.

Standing still is simply not an option for a medium that prides itself as being the best option for those on the move. It would appear that a combination of DAB exclusive stations and subscription radio will offer valuable niche programming options which enhance the listeners experience without diminishing the vital day to day contribution of local broadcasters. Add to that exciting new digital receivers and a wealth of listener survey data. I think I hear the future….stay tuned.

(Published in "Broadcaster Magazine")

Written by David Bray | 30 October 2009

General Motors of Canada Limited (GMCL) announced today that GM will become the first automaker to deliver factory installed DAB (Digital Audio Broadcasting) technology to the automobile marketplace. This stunning development is the culmination of a strategic alliance formed between GM of Canada and Digital Radio Roll-Out Inc. ( DRRI). The two have been working together since 1998 to develop a made-in-Canada digital radio solution. The Oshawa-built Chevrolet Impala and Monte Carlo will be among the first models available with DAB.

Maureen Kempston Darkes, President and General Manager of GM of Canada made the announcement at the Canadian Association of Broadcasters (CAB) 75th Annual Convention saying “digital radio is the future of broadcasting in Canada. It provides consumers with new features such as CD quality sound and value-added data services. GM plans to be the
automaker of choice when it comes to digital technology and mobile commerce.” An enthusiastic Duff Roman, President of DRRI, declared that "this announcement establishes Canada as a world leader in digital radio. I am thrilled that, very soon, hundreds of thousands of GM car buyers will be treated to the true power of DAB - superb digital audio with the addition of value-added datacasting services delivered seamlessly to major markets across Canada. GM is to be applauded for its vision.”

Michael McCabe, President and CEO, Canadian Association of Broadcasters said "GM's announcement today reflects the inroads being made to really drive home the importance of DAB to the broadcasting system in Canada. Now, more and more Canadians have access to this technology where they go about their daily lives - in their homes, in their offices and now in
their cars."

Currently, over 55 DAB stations have made service available to 10 million people in Vancouver, Toronto, Windsor, and Montreal. Ottawa is next in line to be added to the market list, with preparation underway for an airdate of early 2002. Planned expansion into all major corridors will add a series of markets including Hamilton, Kitchener, London, Guelph, Cornwall, Calgary, Red Deer, Edmonton, Quebec City, Trois Rivieres and Chilliwack. Digital Radio Roll-Out Inc. ( DRRI), is a non-profit joint initiative of major private broadcasters (Astral Media Inc., CHUM Ltd., Corus Entertainment Inc., Rogers Media, Standard Radio Inc., Telemedia Radio Inc.), a number of smaller private broadcasters, and public broadcasters (CBC, Radio Canada) with the support of the Canadian government. DRRI’s mandate is the introduction of digital audio broadcasting services across Canada. DAB is the replacement technology for current AM and FM analogue transmission.

Written by David Bray | 30 October 2009

Digital Radio Roll-Out Inc. ( DRRI), today announced that 15 Ottawa area digital license applications have been approved the CRTC. This completes the groundwork for the launch of Digital Audio Broadcasting (DAB) in the nation’s capital, expected in early in 2003. All of the major broadcasters currently active in the market received approvals. The list of successful applicants includes Astral Radio Inc., CBC/Radio Canada, CHUM Ltd., Rogers Media, Standard Radio Inc.

Duff Roman, President of DRRI declared that "I’m pleased to see the ever-increasing support for DAB in Canada. This enthusiasm has helped to position our nation as a world leader in the development of digital radio. It is only fitting that listeners in the nation’s capital be treated to the power of DAB - superb digital audio with the addition of value-added datacasting services."

The 15 new licensees join the 57 DAB stations which have made service available to 10 million people in Vancouver, Toronto, Windsor, and Montreal. Halifax is expected to join the list by early 2003. A comprehensive engineering study was recently completed which will plan for new digital audio broadcasting (DAB) stations to serve the major population corridors in Canada. Covered by the new services will be all markets between Toronto - Windsor, Toronto - Ottawa, Toronto - Montreal, Montreal - Quebec City, Calgary - Edmonton, and Vancouver - Greater Fraser Valley. The planned expansion will add a series of markets including Hamilton, Kitchener, London, Cambridge, Guelph, Cornwall, Calgary, Red Deer, Edmonton, Quebec City, Trois Rivieres and Chilliwack.

Digital Radio Roll-Out Inc. ( DRRI), is a non-profit joint initiative of major private broadcasters (Astral Radio Inc., CHUM Ltd., Corus Entertainment Inc., Rogers Media, Standard Radio Inc.), a number of smaller private broadcasters, and public broadcasters (CBC, Radio Canada) with the support of the Canadian government. DRRI’s mandate is the introduction of digital audio broadcasting services across Canada. DAB is the replacement technology for current AM and FM analogue transmission.

Written by David Bray | 29 October 2009

Listen carefully and you can hear the countdown. The race is on and nothing less than the future of the radio industry in Canada is at stake.

The first critical step took place with the early November CRTC hearings in Ottawa/Hull at which 3 satellite/subscription applications were presented. In the room was a who’s who of Radio in Canada. The lobbying for intervention support leading up to all of this was intense. So much hand shaking and arm twisting took place that few people in the radio or music industries are left with shoulder sockets in tact. It would appear that traditional broadcasters have seen the writing on the wall since CHUM, Astral, Standard, CBC/Radio Canada, Rawlco and Corus are all throwing their hats into the ring in one way or another. Traditional radio remains very strong but continues to face the challenges of declining teen tuning and the restlessness of a public hungry for more while being accustomed to feasting on a variety of specialty television stations. For its part, the CRTC will be eager to avoid the grey market problems experiences with the implementation of satellite television.

Make no mistake, the Canadian radio industry overall remains healthy from both a financial perspective (with 2003 ad revenues of $1.2 billion, up 8.4% year over year) and in terms of audience tuning with a 94.8 percent national weekly reach and 21.8 hours tuned weekly per capita (A18+, BBM Spring 2004). Some signs are less than encouraging. Both BBM and the recently released Statistics Canada study confirm dramatic decreases in hours tuned per capita for teens.

Troubling for some listeners and from a music industry standpoint is the lack of new music and the lack of formatic variety. Especially in a world where CHR formats continue to give way to more gold based formats such as Jack, Dave, Bob, etc. Not that the radio industry should be making any apologies. Traditional stations are funded by ad revenue which demands that they strive to have broad-based appeal, garnering as many adults 25-54 as possible. This dictates familiar music without the risk of exposing new music or niche formats. Added to that are local news, weather and traffic. The truth is that broadcasters are currently doing a very good and professional job of it. Still, this underlines the need for complimentary services committed to exposing groundbreaking new music and a tapestry of vital niche formats that cry out to be heard. It seems clear that, as opposed to cannibalizing existing hours tuned, these complimentary services will repatriate listeners to radio and generate an excitement missing for generations. Folk, alt country, comedy, roots, electronica, blues, bluegrass, opera, jazz, singer-songwriter and a good deal more will now be given a second look and listen. Since these new stations would be driven by subscription revenue, the need to be all things to all people vanishes. Instead, the stations can strive to exist on their own terms, offering listeners something truly unique.

Heads were turned when three applications were submitted by the filing date. These include the XM/Canadian Satellite Radio and Sirius/CBC/Standard satellite proposals along with the CHUM Ltd. terrestrial/DAB offering. Radio observers here expected a two-way race focusing on the discussion of satellite, but CHUM took the opportunity to look at an alternative approach using Digital Audio Broadcasting in major markets. The three subscription radio applicants don’t see themselves itself as being in competition with conventional radio, but rather as a compliment to it. One that offers cutting edge niche programming that mass appeal stations can’t afford to deliver. Initial research seems to bear this out, although, it is too early to tell. It is worth noting that the subscription applicants include the major broadcast groups in the country who might be loathe to proceed if they felt they were going to cannibalize their own audience and revenue bases. There is a commitment from all concerned not to include local weather and traffic, a mainstay of conventional radio. From a marketing perspective there would be the opportunity for advertising on some talk stations while the music would be free of conventional ads. On the other hand, there would seem to be substantial opportunities for sponsorship on those stations which could prompt some very innovative marketing approaches.

The initial consideration of subscription radio was triggered by the application made by Canadian Satellite Radio, a partnership with John Bitove (a well known Canadian entrepreneur) and XM Satellite Radio. Bitove has put together a formidable team comprised of some of the country’s most respected artists, programmers, analysts and entertainment industry VIP’s. CSR is promising 100+ channels of nationwide music and information that would serve both urban and rural areas from coast to coast. The 5 unique channels (in the initial phase) to be produced in Canada include a variety of niche music programmes in both English and French hosted by noted Canadian

musicians/personalities as well as an All Comedy station which Mark Breslin (C.E.O. of Yuk Yuk’s International) calls “the best opportunity to expose Canadian comedy that I’ve seen in many years”. As in the U.S., there is an agreement to include XM receivers in GM vehicles made and sold in Canada (starting with the 2006 models should the license be awarded in time),

The Sirius satellite team (with CBC and Standard as partners) headed up by Kevin Shea features another strong team with substantial traditional radio experience. They would also promise 100+ channels of nationwide music and information with 5 unique Canadian offerings. The value of the CBC to Canadians is highly regarded by Heritage Canada (a government ministry protecting Canadian culture) and the CRTC. The CBC sided with Sirius, in part, due to its technical preference for the 3 constantly moving satellites which promise good coverage of certain rural areas. Experts seem to be divided on the benefits of the XM versus the Sirius satellite systems, both of which boast certain advantages.

The CHUM/Astral subscription radio application involves a progressive rollout of urban centres that will initially deliver 50 commercial-free satellite digital stations in a variety of formats with the much-touted digital benefits… reliable reception, crystal clear sound, and a data display . The CHUM/Astral initiative would feature subsidized digital receivers that would offer both traditional free access for conventional DAB stations as well as their subscription stations. The primary difference with this initiative is the fact that it wouldn’t be national as such, but rather would involve a series of terrestrially based stations in larger markets across the country sharing programming.

The CHUM application stresses the fact that all of the stations will meet or exceed the Canadian Content requirements mandated by the CRTC for traditional stations. The satellite applicants point to their ability to broadcast Canadian music into the U.S. on their CANCON only stations as well as playlisting an increased amount of Canadian music on the American based stations.

CANCON on conventional stations, while meeting the regulatory requirements, does relatively little to assist new or niche artists. Innumerable formats are left without voices. The primary result is having the likes of Celine Dione or Avril Lavigne move into ever higher rotation. The enthusiasm of independent Canadian artists for this subscription opportunity is infectious. Many major talents are looking at radio with renewed vigor and hope.

The monthly subscription fee for any one of the services will be in the $10-$13 per month range. The two satellite offerings have the auto industry on board for factory installed radios. XM (with its Elton John commercials in the U.S.) has also begun to tout its portable radios. The CHUM group, owners of MuchMusic and a variety of related properties, will initially focus on a young target group with portable radios. At the hearings, both the Canadian Satellite Radio team and the Sirius/Standard/CBC teams argued that the CRTC should license all three applicants and let the consumers decide which they prefer. CHUM/Astral argued that they would need to be the sole license winner in order for their model to be economically practical.

Satellite/subscription radio, with its wide diversity of formats, will make an important cultural contribution to radio listeners in Canada. Niche formats, normally lost in the melting pot of traditional radio will be given the voice that they deserve. Moreover, numerous Canadian artists, who wouldn’t normally receive much airplay on traditional stations, will be afforded the opportunity to have their music heard by a much wider audience, both across Canada and the sizeable U.S. market. This, in turn, affords our artists increased touring opportunities and CD sales. Listeners benefit by having access to cutting edge formats and exposure to artists that they might not otherwise hear. All this without giving up traditional local radio stations. It is the best of both worlds. It seems clear that this is the next step in the evolution of radio. One that is critical to the artistic and financial success of Canadian performers and writers.

The number of satellite subscribers in the U.S. is about 3 million and growing rapidly. This has the added benefit of revitalizing the radio receiver industry at retail. Expect the same to be true of the Canadian experience. In terms of a grey market, it is estimated that many thousands of Canadians are already listening to satellite radio.

Listeners and artists alike have been demanding change and they are, in all likelihood, about to get it. The radio industry is listening to them. I think I hear the future….stay tuned.


(Published in "Marketing Magazine")

Written by David Bray | 29 October 2009

They used to call it buying space. Not so long along ago, media buying was a relatively simple process. Success in media sales was dependent more on service than on savvy analysis. But much like most everything else in life, progress brought complexity. Every answer brings a new set of questions. So here advertisers sit in an era of increasing media fragmentation trying to ascertain what they should buy and in what combination. On the flip side of the coin, broadcasters and publishers are contemplating what properties they should buy in order to maintain control of the marketplace. Expansion brings us scores of new specialty TV channels catering to almost every whim, hobby, fantasy or fetish. In this turbulent atmosphere, radio has an opportunity that should not be overlooked.

Traditionally speaking, television has always been a mass medium while radio was somewhat more targeted with formats catering to specific niches. Suddenly, television is leapfrogging radio in its attempt to superserve narrowly defined niches. All History, All Golf, All Women’s Sports, All Weather, All Cartoons, etc. I’m waiting with anticipation for the new “All Female Left-handed Golfer’s Channel” beaming in 24 hours a day. Although they could run out of “A” list programming by 3am. But pity the poor buyer. Long gone are the days of programmes such as the finale of MASH which delivered astronomical audience shares and spectacular reach.

In the midst of these developments, the overall number of radio stations has remained fairly consistent. Credit the CRTC with this much…..it has not allowed Canadian markets to be flooded with unprofitable radio stations like we have seen in some U.S. cities.  While television audiences are being spread across a burgeoning menu of choices, the top radio stations continue to deliver the kind of audiences that advertisers have come to expect.

In Canada, radio has, by standing pat while the number of television stations explodes, improved its competitive position. Radio audience measurement is more detailed than ever with the availability of BBM’s single source demographic/product usage diary data and the incomparable RTS study. These afford the medium precise niche targeting without audience dilution.

While the number of radio stations may not have markedly increased, the revised ownership regulations issued by the CRTC have had a dramatic impact. Broadcast groups are now afforded the opportunity for multiple ownership in a market (e.g. a group can own two AM and two FM stations in a major market). This has resulted in expansion for certain major broadcast groups and the demise of others. With so much consolidation, the atmosphere is very difficult for independent broadcasters.

One development saw Astral Media purchase 19 radio stations in Quebec, New Brunswick and Nova Scotia from Telemedia. Adding CITE-FM to their CKMF-FM powerhouse gives Astral a formidable foothold in the Francophone Montreal market.

In the Anglophone Montreal market, Standard Radio picked up CHOM-FM which will make a nice addition to their current holdings, CJAD and MIX96.

In another stunning development, Standard Radio announced the acquisition of Telemedia stations in Ontario, Alberta and B.C. plus Craig stations in Manitoba and Alberta. Adding EZRock to MIX99.9 and CFRB in Toronto gives the group a very well rounded presence in Canada’s largest market. In subsequent transactions the northern Ontario properties were then sold to Rogers while other western properties were sold to Newcap.

With the exit of Telemedia from radio, the list of major ownership groups is becoming very thin. We have Corus, Astral, CHUM, Standard, Rogers and the CBC. The remaining groups, while providing essential and vibrant voices, are somewhat smaller. The question remains as to what will be the implications of these changes.

Certainly, one of the most interesting aspects of multiple station ownership in individual markets is better station positioning. Owners can zero in on a very specific niche which is complimentary to those targeted by their other stations. The listener/advertiser benefits in that there tends to be less format duplication. For example, fewer different owners slugging it out in the Female 25-54 Adult Contemporary arena. By dominating a distinct niche, owners afford themselves definite marketing advantages, not the least of which is setting the market cost per point for their given target. Advertisers can take advantage of group sales which boast domination of a targeted demo. For example, witness Corus Radio properties in Toronto. With Q107’s classic rock, Mojo Talk Radio for Guys (AM640) and The Edge’s (CFNY-FM) new music (not to mention Energy95.3) a group buy delivers excellent coverage of young males and certain lifestyle groups (e.g. beer drinkers).

Multiple ownership allows broadcasters to spread operational costs (traffic, accounting, production, rent, etc.) over more properties, thus making the overall enterprise more efficient. This, in turn, results in more flexibility with ad rates. Broadcasters have been pruning staff on an ongoing basis to make sure their stations both maintain profit margins while remaining cost competitive with others stations and media.

Another implication of broad ownership is the resurgence of syndication, albeit in a very different form. In the days of “mosaics” and various other CRTC programming regulations, a number of independent syndicators prospered. With the easing of the restrictions, avenues for this sort of programming largely dried up. On the other hand, syndication firms such as Sound Source (owned by Standard) can prove to be a valuable resource for their parent firms.  They produce cost effective programming with a base of stations from their parent network already in place. The idea of a “Superstation” sharing programming is another popular experiment. Here, a format (e.g.EZRock) is developed by the flagship station in a group. From there the format and certain programming elements are rolled out to other members in the broadcast group. This allows the advertiser to focus on certain targeted features and maintain a consistency from market to market.

One of the most ambitious examples of the brave new world of syndication or networking has been CHUM’s creation of the “Team”,  Canada’s first Sports Talk Network. They boast affiliates in 9 key centres….Toronto, Montreal, Vancouver, Ottawa, Kingston, Kitchener, Peterborough, Winnipeg and Halifax. Costs are applied over a broad market list, affording the sort of programming which might normally be cost prohibitive for an individual market. Ads can be purchased on both a local and national basis. Sadly, the network has not yet been able to generate sufficient audience or revenue to make it a success. CHUM has recently announced a restructuring with somewhat less centralization and more emphasis on local content.

So, while buying space in radio may be somewhat more complex than in days gone by, the combination of superior audience data, targeted group buying opportunities, exciting programming experiments and consistently substantial audiences is making the experience more rewarding than ever.

(Published in "Marketing Magazine")