Canadian Satellite Radio
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Canadian Satellite Radio
Overview
As the United States led the charge in satellite radio evolution, Canada quickly followed suit. In 2004, the Canadian Radio-television and Telecommunications Commission (CRTC) began hearings for potential developers of Canada's first satellite radio services. This sparked significant interest, resulting in three major applications: XM partnered with Canadian Satellite Radio, Sirius teamed up with Standard Broadcasting and the CBC, and a surprising third application came from CHUM Limited and Astral Media.
Competing Proposals
CHUM Limited and Astral Media's proposal stood out as they offered a unique approach utilizing existing terrestrial DAB transmitters to receive satellite transmissions, which would then be broadcast to consumer-owned receivers. In contrast, XM and Sirius planned to blend U.S. technology with Canadian broadcasting channels, benefiting from existing satellite coverage in parts of Canada that already served a small audience.
Approval and Conditions
In June 2005, the CRTC approved all three applications under specific conditions:
- At least eight channels must be produced in Canada, allowing nine foreign channels per Canadian channel.
- 85% of content on Canadian-produced channels must be Canadian (musical or spoken word).
- 25% of Canadian channels must be French-language.
- 25% of music on Canadian channels must be new Canadian music.
- 25% of music must feature emerging Canadian artists.
The companies complied with these regulations, while XM and Sirius negotiated to offer 50% French content, exceeding the CRTC’s requirements. XM was also granted five channels for National Hockey League Play-by-Play, covering Canadian NHL games.
Market Controversy
CHUM Limited appealed the decision, arguing that the presence of U.S.-backed companies could stifle the growth of an entirely Canadian enterprise. They claimed the deals with XM and Sirius created unfair competition. Meanwhile, XM and Sirius, along with their Canadian partners, accused CHUM of seeking a monopoly in the Canadian satellite radio market.
Current Landscape
Despite some public discontent over the level of required Canadian content, broadcasters promised to add more French and Canadian programming. The Canadian Federal Cabinet endorsed the CRTC's decision on September 10, 2005. XM launched on November 29, 2005, followed closely by Sirius on December 1. Subscription fees are $12.99 for XM with a $19.99 activation fee, and $14.99 for Sirius without activation fees. Both expect subscriber numbers to rise rapidly, though concerns about potential monopolies persist.
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