CAB pushes for delay in radio review in wake of satellite radio licensing

The CRTC is remaining silent for now about the date and scope of a potential radio review, although Canada’s private broadcasters are pushing for a delay. "The commission will make its determination with respect to the timing and content of any review of commercial radio policy shortly," states the CRTC in an October 6 letter to the Canadian Association of Broadcasters (CAB). "The CAB and other interested parties will be informed of this decision in the normal course." The commission’s letter is in response to a September 30 request by the CAB for a further delay in the regulator’s radio policy review - which subtly questions the CRTC’s recent licensing of two foreign-backed subscription satellite radio services. The radio review was due to take place in 2003 but was put off by CRTC chair Charles Dalfen because subscription satellite radio had not been licensed and the digital radio rollout had not progressed very far (CCR Update, Nov. 19/03). The CRTC’s decision to licence Canadian Satellite Radio Inc. (CSR) and Sirius Canada Radio Inc. was criticized by cultural groups and others in the industry because it set lower levels of Canadian content for the two satellite radio providers than traditional radio broadcasters. The CAB letter again mentions the disparity between Canadian content quotas for satellite radio and traditional radio. "The CAB submits that the current environment, in which little is known about the competitive impact of widely varying Canadian content quotas, is not conducive to constructive discussions between the music industry and the radio sector on measures to help increase the diversity of Canadian music on commercial radio," reads the broadcasters’ letter requesting the delay. It also notes that the commission’s desire to have the CAB forge stronger partnerships with the music industry has been derailed by the politicized debates surrounding subscription satellite radio. "Despite the success of these cooperative initiatives (Radio Starmaker Fund, Canadian Radio Music Month and the Canadian Music Awards), the CAB submits that, given the current climate, it would be preferable for there to be a cooling off period, following the very heated public discussion on subscription radio," states the letter. The CAB notes that it was working with its radio members to develop a bonus system that would be applicable to Canadian and French vocal music exhibition quotas, and would increase the amount of new Canadian music and artists played on commercial radio. But discussions of the bonus system have not gone to the music industry "quite frankly because of the distraction of the appeal on the (satellite radio) decisions and the concerns the music industry has raised with these decisions," says the CAB. The association also points the finger at subscription satellite radio operators for the slow rollout of digital radio - an offering that could affect the radio environment in the future. The CAB notes it has been difficult in the United States, Canada, and the United Kingdom to get automobile manufacturers to include digital radios in their car models. "In North America, this has been doubly difficult since the major automobile companies have a significant stake in the success of a competing technology - satellite radio," the association tells the CRTC. "During the subscription radio hearings, it was made clear that they were not open to the provision of any other digital radio technology in their products." The CAB advises that it is pertinent to hold off on the radio review as developments will occur over the next 24 months that will give the industry a better picture of what to expect on the digital radio front. One of the unknowns is what digital radio technology will be adopted. Some broadcasters appear interested in the U.S. IBOC technology while others are looking at the Eureka-147-based standard. The CAB also notes that any competitive disadvantages created for commercial radio by subscription radio must be addressed in any future policy review, but adds it is too early to assess the impact. The association contends that it will take at least 24 months, or two holiday buying seasons, before anyone can "reasonably" evaluate consumer adoption of subscription radio in Canada. The CAB further notes that there is no pressing need for a radio policy review since the existing one "continues to provide benefits to both the radio and music industries" and "has not given rise to any critical issues in urgent need of immediate review."

CAB pushes for delay in radio review in wake of satellite radio licensing

News | 10/07/2005 4:00 am EDT

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