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Digital airwaves cloud Cancon's future by Brian Laghi

Sep 6, 2005

Source : Globe & Mail


For a sneak preview of the next assault on Canadian culture, the politicians charged with protecting homegrown talent need look no further than the BlackBerries seemingly fused to their hands.

The communications tool allows politicians to communicate instantaneously with staff members, reporters and the Prime Minister's Office. And before the end of the decade, they may be able to receive radio broadcasts, making it even easier to keep up with national and international events.

"It's music, communication and entertainment in one," said Kaan Yigit, president of Solutions Research Group, a Toronto-based firm specializing in technology and media research.

"Right now, your PC can take you to a number of places and download songs legally or illegally or stream music. You'll be able to do the same thing with your handheld five years out," he said.

Later this week, the federal cabinet is expected to decide whether to let stand a decision allowing licences for two satellite radio providers that would give Canadians access to scores of U.S. stations. The matter has been the subject of furious and costly lobbying.

But behind the political infighting is the question that Mr. Yigit said is reflected in the little BlackBerry right under politicians' noses. Can the government continue to guarantee Canadian musicians a portion of the radio airwaves in the face of technological advances?

"Typical young Canadians today probably spend almost twice as much time using the Internet, MSN, e-mail, streaming, surfing and downloading than they spend listening to radio," he said.

"It's not that Canadian content is irrelevant. It's that the times are changing and the effectiveness of regulations is in serious question."

Currently, Canadian content rules for radio require that 35 per cent of music on domestic stations be Canadian.

But satellite radio -- which is already available in the United States -- could change listening habits in Canada.

The Canadian Radio-television and Telecommunications Commission decided that the two companies -- co-owned with U.S. corporations -- must ensure that 10 per cent of their stations are Canadian, a figure opponents say is too low. The cabinet could refer the decision back to the CRTC, or overturn it. But are the regulators going to be engulfed in the future anyway?

Maybe, said a Liberal MP. But Canadians need to have a debate before changing the rules.

"I am not averse to new technology and what it can bring us. I don't want to stop consumers from having their choice," said Sarmite Bulte, a Toronto MP for the riding of Parkdale-High Park.

"But I do think we need to have a debate about whether regulation can be applied to the new technology."

Ian Morrison, a spokesman for Friends of Canadian Broadcasting, agreed that a BlackBerry-toting Canadian may one day be able to access everything from British football to German pop. But that market is still much smaller than audiences for big-league local radio.

"These stations count a lot more than isolated individual listeners," he said. "Maybe over 10, 20 or 30 years the net effect will be to reduce their profitability, but these are big stations."

John Bitove Jr., who heads one of the satellite proposals, says the idea would provide more venues for domestic talent to be heard.

"The world's changing, things are whirling," said Mr. Bitove, whose company, Canadian Satellite Radio, is making its proposal in partnership with U.S. provider XM Satellite Radio Holdings Inc.

"I think we've as good, if not some of the best, talent in the world. We just have to find forums and vehicles to get them out there."

But an official with a corporation that opposes the proposal says that Mr. Bitove's company would provide only the bare minimum in Canadian stations.

Peter Miller, vice-president of business and regulatory affairs for CHUM Ltd., said the content requirement for satellite groups is too low and is unfair competition for groups like his that must provide 35 per cent Canadian content.

CHUM, which has been given a non-satellite licence for about 50 subscription Canadian channels through network broadcasts, said it should not be that difficult to come up with Canadian stations.

Moreover, Canadian listeners now want to hear homegrown music, Mr. Miller added. "If you're into female vocalists, you want to hear Jann Arden," he said. "You want to hear Sarah McLachlan. All of these great, great Canadian artists, they don't get any airplay in the U.S. I want to listen to them."

© Globe & Mail