Light-handed approach favoured in licensing of specialty audio services

Most distributors and broadcasters are advocating a light-handed approach to the licensing of new specialty audio programming services. But broadcasters say some protection is needed for existing radio stations in the current economic downturn. Responding to the CRTC’s request for comments on a licensing framework for new specialty audio programming services, and on proposed amendments to the Broadcasting Distribution Regulations regarding carriage of ethnic audio services – PN 2001-85 – the Canadian Association of Broadcasters (CAB) contends that only services that are not competitive with existing broadcasting services in a specific market should be licensed. Some protection is needed, the CAB argues, because the current economic downturn is expected to impact private radio in the months ahead. "Recent forecasts have indicated that private radio in Canada will face a decline of approximately 4 per cent in advertising revenues over the next year, reflecting the current economic status of private radio in the United States," the CAB writes in its Oct. 12 submission to PN 2001-85. "Given this, it is critical that the commission avoid initiating a new, competitive layer to the broadcasting system, and refrain from overlicensing new services that would lead to a reduction in voices." The CAB notes that unserved or underserved ethnic audiences would be the primary beneficiaries of specialty audio programming services, particularly in large markets with multi-ethnic populations. Therefore, the CAB suggests the commission license only those specialty audio services that target specific ethnic or official minority-language audiences and are not otherwise available in the area. But Bell ExpressVu LP believes licensing should not be limited to ethnic-language or other specialized services such as official minority-language, religious, gay/lesbian, or children’s services. The direct-to-home (DTH) satellite TV distributor suggests that such services could fill specific niches, and any constraints in terms of programming obligations should be limited so that programming excellence and relevance can be maximized. In its submission, the DTH operator calls for a framework modeled after the one that applies to Category 2 digital specialty television channels. It puts forward several benefits of this licensing approach, including ease of entry, protection for the distributor, an appropriate degree of protection for licensed commercial radio services, and reduced administration. "Such a framework has the appeal of an exemption order, but at the same time allows for a process whereby the specialty undertaking would be required to register its programming niche," Bell ExpressVu states. "The commission would need to examine the ownership only after it had obtained a distribution arrangement with a licensed BDU." Alain Strati, director of regulatory affairs at Rogers Media Inc., which operates the multicultural television station CFMT-TV in Toronto, agrees that an open-entry model similar to the Category 2 one would be the most appropriate approach. He states that a program service description for new audio channels should be provided to ensure that they are not directly competitive with existing over-the-air services, that there be no mandatory access or carriage rights, and that there be basic Canadian ownership and minimum Canadian content requirements. DTH operator Star Choice Communications Inc. says the framework should "encourage innovation and flexibility in the launch and distribution of these services through an open-ended licensing (or licence exemption) approach." It recommends the framework rely on competition and market forces, rather than regulatory intervention, wherever possible, and tap into digital technology by allowing flexible packaging and promotional arrangements.

Light-handed approach favoured in licensing of specialty audio services

Broadcast | October 26, 2001

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