p2pnet.net News:- CHUM and Astral “are expected to pull the plug on digital radio plans,” following news that Canadian broadcast regulators have approved applications from two groups already running in the US, Reuters quotes analysts as saying.

Yesterday, the CRTC (Canadian Radio-Television and Telecommunication Commission) approved applications by three groups, including the two biggest American satellite radio companies, to begin digital, subscription radio services in Canada.

However, content requirements, “may be too restrictive for the U.S.-based applicants, the analyst noted, given ‘precious’ satellite space that could be used for U.S. growth,” says Reuters.

Ironically, “the decision creates a pipeline for U.S. radio programs direct to Canada, with little in return for our country,” says Friends (Friends of Canadian Broadcasting) spokesman Ian Morrison.

CHUM and Astral are Canadian

“Our thesis for the CHUM/Astral offering was that it would not move forward if both of the U.S-tied satellite radio licenses were approved,” CIBC World Markets analyst Robert Bek says in a note to clients, according to Reuters.

He goes on, “As a result, we do not believe that the CHUM/Astral application will go ahead in the face of yesterday’s CRTC decision, unless either of the other applicants decides not to enter Canada as a result of the more restrictive requirements in place.”

CHUM spokesman Paul Ski confirmed that his station and Astral, which would have used land-based transmitters instead of satellites, will reconsider their launch, “since the other two groups already have the necessary infrastructure in place,” says the story.

Friends predicted the decision would, “create a flood of demand from other broadcasters to lower their requirements to fund and play Canadian programs, particularly music. Currently, Canadian conventional radio stations must play a minimum of 35% Canadian music artists. Talk formats cannot offer less than 50% Canadian content.”

‘Grumpy old men’

But the people who should be the most upset are Canadian radio listeners, “on whose behalf the regulator is supposedly acting,” writes the Globe & Mail’s Matthew Ingram, going on:

“In typical fashion, the government – in the form of the Canadian Radio-television and Telecommunications Commission – has jumped all over an emerging technology with its hobnailed regulatory boots, and wound up creating more problems than it has solved. The only ones who aren’t complaining are the people who wisely signed up with XM and Sirius through the ‘grey market’ and are happily listening to whatever they want whenever they want, without having to ask the government’s permission first.

“It’s moments such as these that make the CRTC seem like grumpy old men, waggling their fingers at all those young whipper-snappers and muttering about sinful boogie-woogie music and how they can’t hear themselves think with all that racket going on. Obviously, the regulator can’t just create policy on the fly – it has to interpret the Canadian Broadcasting Act. But decisions such as the satellite radio case make it abundantly obvious that both are woefully out of date.”

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See:-
Reuters – Chum-Astral seen pulling plug on digital radio bid, June 17, 2005
approved applications – Canada tunes in to digital radio, p2pnet, June 17, 2005
Friends – CRTC and CBC attempt to subvert Parliament, June 16, 2005
Globe & Mail – Ingram: Radio doesn’t need the CRTC, June 17, 2005

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