A Home Run
(Published in KW Record)
If I were a sports reporter, I might call it a home run for satellite radio. But since this is the entertainment section, I’ll just give you the highlights of the recent CRTC decision, one which marks a significant moment in the history of radio in Canada. With their approval of three subscription (pay radio) licenses, the CRTC issued an emphatic yes to new technologies which Chairman Charles Dalfen declared “will help to give Canadian talent exposure to listeners across Canada and indeed, North America-both through new Canadian channels and airplay on U.S. channels.”
The first step took place last November with the CRTC hearings in Ottawa/Hull at which 3 satellite/subscription applications were presented. These included the XM/Canadian Satellite Radio (which triggered the process) and Sirius/CBC/Standard satellite proposals along with the CHUM Ltd. terrestrial/DAB offering. I was there testifying in support of the concept of approving all three licenses. 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 were left with shoulder sockets in tact. After that came the hand wringing as everyone awaited the decision which was over 7 months in coming.
Here are some of the key facts.
Canadian Satellite Radio (XM)/ Sirius
Auto manufacturers are chomping at the bit for satellite in Canada. Michael Grimaldi, president of GM Canada immediately issued a statement saying “without doubt, satellite radio is the biggest advancement in mobile audio technology in the last 60 years and we plan to present it (Canadian Satellite Radio) in our upcoming models.”
In addition to being factory installed in new vehicles, satellite radio is now widely available at audio retail in the US and will soon be in Canada. Receivers by Polk and Yamaha allow for integration into your home stereo. It is also available through numerous manufacturers such as Sony, Alpine, Pioneer, and Panasonic, for dashboard install to rejuvenate your car stereo. Perhaps the most vibrant sector of Satellite Radio equipment is in the portable and plug and play category. These devices can interface with your car stereo through wireless FM modulators, they can hook up to your home stereo unit through a hardwired cradle and some simply plug into a boombox for true portability. These devices are currently manufactured by Delphi, Audiovox, Pioneer, and Tao.
The artists/musicians/comedians with whom I have recently spoken are equally enthralled about the satellite broadcasters' commitment to new talent and niche formats as well as the opportunity to reach the U.S. market.
The 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. The presumption here is that rather than cannibalize tuning to existing traditional stations, satellite will help to revitalize listeners and increase overall tuning to the medium, weaning attention away from video games, MP3/CD players, etc.
CHUM/Astral
CHUM representatives have repeatedly said that they would not launch if all three applications were approved. Most industry pundits agree that it would be economically impractical for CHUM to attempt to launch given the cost of producing 50+ channels and the formidable satellite competition.
The number of satellite subscribers in the U.S. is over 5 1/2 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
Listeners and artists alike have been demanding change and they are, in all likelihood, about to get it. The radio industry (and it would appear the CRTC) is listening to them. Stay tuned.
If I were a sports reporter, I might call it a home run for satellite radio. But since this is the entertainment section, I’ll just give you the highlights of the recent CRTC decision, one which marks a significant moment in the history of radio in Canada. With their approval of three subscription (pay radio) licenses, the CRTC issued an emphatic yes to new technologies which Chairman Charles Dalfen declared “will help to give Canadian talent exposure to listeners across Canada and indeed, North America-both through new Canadian channels and airplay on U.S. channels.”
The first step took place last November with the CRTC hearings in Ottawa/Hull at which 3 satellite/subscription applications were presented. These included the XM/Canadian Satellite Radio (which triggered the process) and Sirius/CBC/Standard satellite proposals along with the CHUM Ltd. terrestrial/DAB offering. I was there testifying in support of the concept of approving all three licenses. 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 were left with shoulder sockets in tact. After that came the hand wringing as everyone awaited the decision which was over 7 months in coming.
Here are some of the key facts.
Canadian Satellite Radio (XM)/ Sirius
- Each of the satellite licensees must offer at least eight original channels. A maximum of nine foreign channels may be offered for each Canadian channel.
- At least 85% of the content on those 8 Canadian channels must be CANCON
- At least 25% of the 8 Canadian channels must be in the French language
- At least 25% of the music on the 8 Canadian channels must be new Canadian music
- A further 25% of the music must be by emerging Canadian artists
- Each satellite service will feature a total of 80+ stations broadcasting to all of North America in digital sound. This will include a wide variety of music, multilingual, talk and comedy formats.
- Subscription rates have not yet been announced, but expect something in the $13 per month range.
- 6 minutes per hour of national (no local) advertising will be permitted
Auto manufacturers are chomping at the bit for satellite in Canada. Michael Grimaldi, president of GM Canada immediately issued a statement saying “without doubt, satellite radio is the biggest advancement in mobile audio technology in the last 60 years and we plan to present it (Canadian Satellite Radio) in our upcoming models.”
In addition to being factory installed in new vehicles, satellite radio is now widely available at audio retail in the US and will soon be in Canada. Receivers by Polk and Yamaha allow for integration into your home stereo. It is also available through numerous manufacturers such as Sony, Alpine, Pioneer, and Panasonic, for dashboard install to rejuvenate your car stereo. Perhaps the most vibrant sector of Satellite Radio equipment is in the portable and plug and play category. These devices can interface with your car stereo through wireless FM modulators, they can hook up to your home stereo unit through a hardwired cradle and some simply plug into a boombox for true portability. These devices are currently manufactured by Delphi, Audiovox, Pioneer, and Tao.
The artists/musicians/comedians with whom I have recently spoken are equally enthralled about the satellite broadcasters' commitment to new talent and niche formats as well as the opportunity to reach the U.S. market.
The 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. The presumption here is that rather than cannibalize tuning to existing traditional stations, satellite will help to revitalize listeners and increase overall tuning to the medium, weaning attention away from video games, MP3/CD players, etc.
CHUM/Astral
- The CHUM/Astral subscription radio application involves a progressive rollout of urban centres that would initially deliver 50 commercial-free satellite digital channels, produced entirely in Canada consisting of at least 20% in the French language.
- All channels would adhere to current CANCON minimum required by Commission regulations.
- 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.
- Auto manufacturers have said that they won’t support the CHUM platform, leaving them to concentrate on the portable/home market alone.
CHUM representatives have repeatedly said that they would not launch if all three applications were approved. Most industry pundits agree that it would be economically impractical for CHUM to attempt to launch given the cost of producing 50+ channels and the formidable satellite competition.
The number of satellite subscribers in the U.S. is over 5 1/2 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
Listeners and artists alike have been demanding change and they are, in all likelihood, about to get it. The radio industry (and it would appear the CRTC) is listening to them. Stay tuned.