TORONTO – Seems like every radio company not involved in a satellite radio investment has now jumped into an appeal of the CRTC’s licensing decision to federal cabinet.
Led by CHUM Ltd. and Astral Media (who were granted a terrestrial subscription radio license), the rest of the appellants are: CHIN Radio, CJRT-FM Inc., Fairchild Radio Group Ltd., O.K. Radio Group Ltd., Newcap Inc., Larche Communications Inc., Aboriginal Voices Radio Inc., Rock 95 Broadcasting Ltd., Evanov Radio Group Inc. and Radio-Nord Communications Inc.
Officially the group of companies filed “a notice to appeal to the Governor in Council to set aside Decision CRTC 2005-246 and Decision CRTC 2005-247 (the "Decisions") in which the Canadian Radio-television and Telecommunications Commission (the CRTC) granted licences to operate satellite subscription radio undertakings to Canadian Satellite Radio Inc. and SIRIUS Canada Inc.”
Most of Canada’s cultural establishment said they will appeal, too.
Last month, as reported by www.cartt.ca, the CRTC granted three subscription radio licenses. SIRIUS Canada is a partnership between the American company, Standard Broadcasting and the CBC. Canadian Satellite Radio is a partnership with XM Satellite Radio and John Bitove (Prizm Brands), and also counts Corus Entertainment, Rawlco Radio and Golden West Broadcasting as minor investors.
The satellite companies are American-owned but the Commission mandated that they must carry at least eight made-in-Canada channels, above the applicants’ wishes for just four.
The CHUM/Astral option (using Digital Audio Broadcasting technology) would have kept all existing Canadian content requirements and would have been Canadian-owned. However, in the face of satellite competitors whose receivers are already being built into cars and who already have a retail presence ready to go, not to mention millions of subscribers just south of here, CHUM and Astral will likely not launch at all, unless the decision is overturned.
The appellants are broadcasters serving large and small markets, English and French language, ethnic and aboriginal audiences. In their Notice of Appeal, the broadcasters argue that the conditions of licence outlined in the Decisions to licence U.S. supported satellite services are inconsistent with the broadcasting policy for Canada outlined in Section 3(1) of the Broadcasting Act, and in particular, says the release:
1. Section 3(1)(f), which requires broadcasting undertakings to make "maximum use, and in no case less than predominant use, of Canadian creative and other resources, in the creation and presentation of programming"
2. Section 3(1)(d), which states that the Canadian broadcasting system should "through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of aboriginal peoples within that society"
3. Section 3(1)(a), which states that the "Canadian broadcasting system shall be effectively owned and controlled by Canadians".
"Irrespective of CHUM and Astral Media’s interests as licensees, we do not believe that the regulatory framework created by these decisions allows for a sustainable broadcasting system", said Paul Ski, executive vice-president radio, CHUM Limited. "The low threshold of Canadian content requirements imposed on the U.S. supported satellite licensees is a dramatic departure from historical broadcasting precedent. If allowed to stand, this will inevitably cause significant harm to not only Canadian artists and radio broadcasters, but to the Canadian broadcasting system as a whole."
The appellants see the ruling as the beginning of the end of Cancon because if satellite radio needs only a 1:9 Canadian:foreign split, what’s to stop Canadian cable operators and direct to home satellite operators to demand the same thing?
"With the very low level of French-language programming (2.5%) and no specific expectations regarding ethnocultural and/or aboriginal services, it is hard to understand how these decisions reflect Canada’s linguistic duality and cultural diversity," added Jacques Parisien, President of Astral Media Radio.
“The appellants believe the decisions present potential implications for more than just audio services as at least one of the U.S. parents of the satellite licensees has announced its intention to begin providing video services. This establishes a precedent for the entire audio visual sector in Canada as new wireless entertainment devices emerge,” adds the release.
A full appeal will be filed with the Privy Council before the July 31, 2005 deadline.
This is the third appeal filed against the ruling following the appeal launched by a coalition of French-language cultural groups, including ADISQ, APFTQ, ARRQ, la SARTEC, SOCAN, SODRAC, la SPACQ and UDA and another broad-based coalition of English-language culture and labour organizations including Friends of Canadian Broadcasting, CRIA, CIRPA, ACTRA, Writers Guild, Directors Guild and member groups of the Canadian Labour Congress.
– Greg O’Brien
