Satellite Radio - Canada

Canada

On November 1, 2004, the Canadian Radio-television and Telecommunications Commission (CRTC) began hearing applications for Canada's first satellite radio operations. Three applications were filed: one by Standard Broadcasting and the CBC in partnership with Sirius, one by Canadian Satellite Radio in partnership with XM, and one at the last minute by CHUM Limited and Astral Media.

The first two would use the same systems already set up for the U.S., while CHUM's application was for a subscription radio service delivered through existing terrestrial DAB transmitters rather than directly by satellite (although satellites would be used to deliver programming to the transmitters). The CHUM service was all-Canadian; the other two applications propose to offer a mix of Canadian-produced channels and existing channels from their American partner services.

A small "grey market" already existed for Sirius and XM receivers in Canada in which a Canadian would use an American address to register their receiver and setup.

On June 16, 2005, the CRTC approved all three services.

In its decision, the CRTC required the following conditions from the satellite radio licensees:

• A minimum of eight channels must be produced in Canada, and for each Canadian channel, nine foreign channels can be broadcast.
• At least 85% of the content on the Canadian-produced channels (whether musical or spoken word) must be Canadian.
• At least 25% of the Canadian channels must be French-language stations.
• At least 25% of the music aired on the Canadian channels must be new Canadian music.
• At least 25% of the music played on the Canadian channels must be from up-and-coming Canadian artists.

These conditions were an extension of the existing Canadian content rules applicable to all broadcasters in Canada. The applicants had until 13 November 2005, to notify the CRTC of their decision. Both companies managed to negotiate the standards a little to their favor, and in return, they would instead play 50% French content as opposed to 25%. Also, XM Canada succeeded in getting an extra five channels of National Hockey League Play-by-Play onto their platform, without an additional channel creation, by agreeing to cover every Canadian team's game during the season.

CHUM appealed the decision, claiming they would not survive if Sirius and XM both were allowed in the Canadian market, and that the licence conditions regarding Canadian content imposed on Canadian Satellite Radio and Sirius Canada were too lax. Canadian Satellite Radio and Sirius Canada countered that CHUM was simply trying to create a monopoly in the Canadian market.

In late August 2005, Heritage Minister Liza Frulla asked the federal cabinet to review the CRTC decision and possibly send it back to the CRTC for further review. Lobbyists complained that the CRTC decision did not require enough Canadian content from the broadcasters. The broadcasters responded by promising to add additional Canadian and French content.

After vigorous lobbying from both sides, the federal cabinet officially accepted the CRTC decision on September 10, 2005.

XM satellite radio was launched in Canada on November 29, 2005. Sirius followed later on December 1, 2005. Monthly subscription rates are $12.99 for XM (85 channels) with a one-time activation fee of $19.99 and $14.99 for Sirius with a one-time activation fee of $19.99 (100 channels). (All prices are in Canadian dollars.) The CHUM/Astral service never launched, and its license expired on June 16, 2007.

Following the merger of Sirius and XM in the United States in 2010, the Canadian companies did not immediately follow suit, but continued as competing providers even as their programming became increasingly integrated. They subsequently reached a merger deal, becoming Sirius XM Canada in June 2011.