Source : FMQB

The Canadian Radio-Television And Telecommunications Commission (CRTC) is set to make a decision this week about whether to allow satellite radio in Canada. The CRTC has three license applications on the table and their decision will be handed down on Thursday afternoon, according to the Canadian Press. The three satellite proposals are from Canadian Satellite Radio (CSR), a consortium involving former Toronto Raptors owner John Bitove Jr. and XM Satellite Radio Holdings; The CBC and Standard Radio, which is partnered with Sirius; and CHUM Ltd. and Montreal-based Astral Media. The last proposal would actually forgo satellite delivery for now and deliver pay radio to consumers via a series of broadcast towers instead. Much like U.S. satellite radio, the Canadian services would offer between 60 and 100 commercial-free channels of music for a fee of about $10 to $15 per month.

Ian Morrison, spokesman for Friends Of Canadian Broadcasting, told the Canadian Press that the watchdog group supports the CHUM/Astral application because it is compliant with the Broadcasting Act requirement for a significant level of Canadian programming. CHUM has said that each of its channels would carry 20 to 35 percent native content.

But despite CHUM having the most Canadian programming, the choice still poses a dilemma for the CRTC because the satellite services would have a much better reach. The Canadian Press says that the two satellite services would cover all of North America, including remote under-populated regions of Canada, while CHUM's land-based option would reach only about 75 percent of the population via major urban markets, though a satellite option is expected to be available by 2010. On the other hand, if the CRTC chooses to approve a service that delivers only five percent Canadian content, then next time a conventional radio station applies for a licence renewal, they may question why they are still required to play 35 percent, which is the typical level for commercial radio.

As FMQB reported back in February, a group of independent Canadian artists lobbied for the CRTC to approve satellite radio so that Canada's music industry can increase artist development funding. They estimated that between 50,000 and 100,000 Canadians are illegally subscribing to U.S. satellite radio, resulting in $40 million lost to the Canadian economy since 2001.

© FMQB