Dear Ms. Frulla,

This letter is to request that you revoke the CRTC’s recent decision to approve licenses for satellite radio broadcasters in their current form. The reason for the request is that inadequate Canadian content requirements are a condition of these licenses.

Since their inception in 1933, Canadian content regulations have placed the onus on broadcasters (generally as a condition of license) to locate and play Canadian selections that meet the broadcaster’s format and quality objectives. This onus has two effects (one obvious, one not so obvious) as follows.

1. Airplay of Canadian music on radio creates demand by listeners for recordings and performances by local and domestic artists. This demand leads to the possibility of commercial success as — and thence to the viability of becoming — a Canadian performer.


2. Less obviously, the broadcaster’s requirement to obtain Canadian selections from somewhere, in concert with the demand just described, has generated an industry that identifies, recruits, produces, promotes and supports Canadian talent. This takes the form of Canadian labels, and Canadian divisions of foreign music companies, in short: Canadian jobs.

The onus on broadcasters to play Canadian selections has created the market for domestic culture. Without this onus to locate Canadian content, the content industry would not require customized Canadian labels and record companies (and by extension Canadian workers); economies of scale would dictate that the Canadian arms of media organizations should be shut down in favour of consolidation of the Canadian market into existing US-based multi-national culture companies. A simple consideration of the relative sizes of the Canadian and American markets would suggest that we would not be assured of seeing 30-40% Canadian content in such a consolidated market. Economically it seems likely that most commercial radio would essentially become affiliates of larger US chains.

Given the importance of the Canadian content requirements, Ms. Frulla, it would seem obvious that the CRTC should require them of the next big media shift: the shift from terrestrial to satellite radio. It has not done so. The licenses it issued require 1 Canadian channel for every 9 foreign channels (10% Canadian channels) with no Canadian requirements on any other channel. This is pitiably small, and means that many Canadians will never listen to any Canadian channel.

Moreover, under the CRTC’s misguided regulations, 50% of the selections played on Canadian channels will be new selections which is not sustainable in a standard commercial format. These Canadian channels will simply be viewed by foreign broadcasters as a throwaway tax, not promoted to Canadians and therefore not listened to by Canadians.

If satellite radio becomes the future of radio that many believe it to be, then this CRTC decision will represent the beginning of the end for the Canadian music industry. In time we will stop listening to AM and FM bands in favour of the higher quality noise-free digital signals. At that time — without Canadian content controls on satellite radio — Canadians will no longer hear Canadian music. It will be American culture for us.

The CRTC argues that Canadian-broadcast services are non-viable. Despite this, one of the three licensees is proposing to broadcast Canadian content at the current FM radio levels, so clearly the industry feels that Canadian-broadcast satellite radio is viable!

If broadcasters feel there is money in satellite broadcasting then they should program services in Canada that conform to Canadian broadcasting policy. Simply producing throwaway content to satisfy ill-conceived regulations is not going to protect Canada’s fragile cultural industry. When the CRTC rashly throws away a regulatory gem in favour of 400 channels of American content as the initial offering for a new technology we have to ask about their priorities and oversight.

Ms. Frulla, Canadians deserve better than to be deluged with American content in the name of “progress” after over 70 years of successful promotion of Canadian culture. Take action today to reverse this misguided decision on the part of the CRTC. Canadians will be watching you to see how effectively you can protect our national treasure: a vibrant culture supported by an industry full of jobs.

Sincerely,
Colin Henein