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Support
Satellite Radio
It has been well publicized that the vast majority of unsigned
independent artists recognize the opportunities that satellite
radio provides. The following is an overview of why Canada's
artists so overwhelmingly support satellite and subscription
radio.
During
the summer of 2004, Indie Pool was approached by Canadian
Satellite Radio (CSR) and asked to support their application
for license to broadcast in Canada. CSR, which is associated
with XM Radio, is wholly owned by Canadian John Bitove, the
man who headed Toronto's Olympic bid and the man responsible
for securing the Toronto Raptors franchise.
Indie Pool began a month of research into the playlists of XM
and Sirius to test whether their contentions about being "indie-friendly"
were accurate. We were happy to discover upon our initial listening
sessions that there were many Canadian artists being heard on
satellite in the U.S. that are rarely, if ever, heard on commercial
radio in Canada. We heard older artists, hot new acts and even
music from unsigned Canadian artists. Here's some of what we
initially researched and heard:
Andrea Klas, Ashley MacIsaac, Audiogram, The
Be Good Tanyas, The Beethoven Frieze, Ben Heppner, Broken Social
Scene, Canadian Brass, Carol Welsman, Cash Brothers, Charlotte
Diamond, Cirque De Soleil, Colin Linden, Corb Lund Band, Death
From Above 1979, Daniel Lanois, David Wilcox, Dayglo Abortions,
Deborah Cox, Delerium, DOA, Frank Mills, Fred Eaglesmith, Fred
Penner, Grapes of Wrath, The Guthries, Guy Lombardo, Harry Manx,
Hayden, Holly Cole, Hot Hot Heat, Howard Shore, Ian & Sylvia,
Jack Grunsky, Jane Siberry, Jeff Healey Band, John McDermott,
Jr. Gone Wild, k.d. lang, Kate & Anna McGarrigle, Kathleen
Edwards, Kevin Breit, Kid Koala, Kittie, Lenny Breau, Leonard
Cohen, Lhasa, Liona Boyd, Loreena Mckennitt, Margo Timmons,
Michael Burgess, Molly Johnson, Monica Schroeder, Moxy Fruvous,
Murray McLauchlan, Natalie McMaster, Neko Case, The New Pornographers,
Nylons, O Susanna, Oscar Peterson, Percy Faith, Plastikman,
Raffi, Real, Rita McNeil, Robert Goulet, Rockin' Highliners,
Ron Sexsmith, Rufus Wainwright, Rymes With Orange, The Sadies,
Sean Hogan, Shadowy Men on a Shadowy Planet, Sharon, Lois and
Bram, Skinny Puppy, Skydiggers, Slaves on Dope, Stan Rogers,
Stickmen, Stills, Sue Foley, The Supers, Tafelmusik, Tal Bachman,
Tegan and Sara, The Weakerthans, The Wilkinsons, Voivod, Walter
Ostanek & His Band.
Needless to say, we were impressed that this new technology
was creating so much opportunity for Canadian artists, even
before licensing in Canada. Here was a US-based, continental
broadcasting system playing more Canadian independent music
then we had ever heard on Canadian commercial radio.
Research also showed us that there was a growing grey market
in Canada (i.e. Canadians subscribed to XM or Sirius using a
US address). According to Decima, at least 100,000 Canadians
were already subscribed to the satellite radio services. The
CRTC had no level of control over these broadcasts. With that
threat growing, and the recent high-profile satellite signings
of Howard Stern, major league baseball, the NFL, the NBA, Snoop
Dogg, Tom Petty, Martha Stewart, Tony Hawk and many others,
we concluded that the risk of doing nothing was greater than
the risk of confronting the issue. Ignoring this risk was not
protecting Canadian culture.
We met with CSR to discuss their plans for Canadian Talent Development
funding. We were happy to find out that they wouldn't only support
traditional funding organizations (which overwhelmingly favour
signed artists), but they would also support projects that will
affect the lives of unsigned artists. They had already committed
some funding to Canadian Music Week, The Indie Awards and other
indie-friendly projects. At the time, many artists were paying
a lot of money for digitization of their CDs to sell on Puretracks
and iTunes. CSR kindly offered to contribute $40,000 per year
to digitization, with Indie Pool committing to reduce digitization
fees by the same $40,000 (i.e. no profit for Indie Pool, just
a price reduction for unsigned artists).
Considering the existing indie-friendly play lists, the growing
grey market, the commitment to offering Canadian channels, the
export of Canadian culture to the US and the benefits to unsigned
artists, Indie Pool decided this was something worth fighting
for. We started a petition and received thousands of signatures
and positive comments from independent artists. (www.indiepool.com/comments)
In November
2004, the CRTC had a week of public hearings on satellite
radio in Ottawa. Gregg Terrence of Indie Pool spoke for 10 minutes
and expressed the apparent and overwhelming support for satellite
radio by Canada's unsigned artists. We delivered the petition
to the commission and shared our unique perspective on the issue.
After Indie Pool's presentation, in the hallways of the CRTC,
we were introduced to CHUM/Astral's DAB "made-in-Canada"
subscription service. Until that time, their group had not introduced
their service to Indie Pool and Canada's unsigned artists. Although
they did not ask for our support, we have since supported their
application for license in the name of choice for Canada's unsigned
artists.
Unfortunately, the CHUM/Astral group considers us opponents
since we do not stand against the satellite radio applicants,
their future competitors. We simply cannot ignore the fact that
Canadians are already choosing to subscribe to satellite radio
services and will continue to do so even if CHUM/Astral successfully
secured a subscription monopoly in Canada. For that reason,
we cannot ignore the grey market threat and support the CHUM/Astral
bid exclusively.
We are acting in the best interests of Canadian culture. If
we pretend that the satellite radio signals aren't already being
broadcast into Canada and that the early adopters are already
signing up, we'll be doing Canadian culture a huge disservice.
We will continue to have no Canadian channels. We will continue
to have no control over decency and programming. We will continue
to receive no funding for Canadian musicians from Canadian subscribers.
We will continue sending millions to the US and receive nothing
in return. We must face this threat, legalize these services
and exert some measure of control over their activities in Canada.
To do otherwise, as some are suggesting, would be a reckless
gamble with Canada's music and radio industries.
In June
2005, the CRTC announced the unanimous (5-0) approval of
all three satellite/subscription radio licenses. Canadian Satellite
Radio (XM), Sirius Canada and CHUM/Astral have all received
conditional approval to begin broadcasting in Canada.
In short, Canada's unsigned artists received everything we asked
for and more. We asked the CRTC to extract as much as possible
from the applicants (Canadian Content, artist development dollars,
etc...), but without setting conditions so high that they drive
the satellite radio providers into the grey market. The CRTC
has impressively walked this tightrope and delivered the best
possible result for independent musicians:
The CRTC has required:
• At least 8 original channels must be produced in Canada
(on each satellite service)
• There must be 85% Canadian Content on each of those 8
channels
The CRTC then delighted us by adding the following conditions:
• At least 25% of CANCON music must be new Canadian musical
selections
• A further 25% of the CANCON music must be by emerging
Canadian artists!
The CRTC wisely recognized the need to make Canadian Content
requirements progressive and smarter. We have been advocating
the need for progressive CANCON for some time now. We published
www.letsfixcancon.ca earlier this year and brought the subject
to the forefront. We did not expect the satellite radio decision
to offer insight into CANCON PRO, but we believe it shows the
CRTC is listening to Canada's unsigned artists and are eager
to assist their development.
In another victory, the licensees must also contribute an astounding
5% of their GROSS revenue to initiatives for the development
of Canadian talent. Using conservative estimates, this should
make satellite radio the single largest contributor to Canadian
Talent Development in Canada.
The same groups that stood against satellite radio are appealing
the decision to federal cabinet. We consider their appeals,
which effectively propose that the federal cabinet become a
complicit facilitator to black market satellite radio, to be
a reckless high-stakes gamble with Canada's culture and radio
industry. We are confident that cabinet will uphold the CRTC's
balanced decision but are remaining vigilant in our lobbying
efforts.
The Liberal government has responded to Canada's independent recording artists and has upheld the CRTC's landmark ruling to award licences to Canadian Satellite Radio, Sirius Canada and CHUM/Astral.
The decision to deny the appeal was delivered Friday afternoon after a meeting of senior cabinet ministers. According to many sources and media, cabinet was comfortable in upholding the original CRTC ruling, largely because ministers were persuaded by Canada's recording artists who stepped forward and called on the Liberal government to let the decision stand. It is our understanding that cabinet received thousands of letters from independent recording artists in support of changes to Canada's radio policies which overwhelmingly favour signed artists.
Canadian independent recording artists should be proud of what they have accomplished during this process. For the first time in Canada's history, unsigned artists have become an important political player, through petitions and letter writing campaigns. You are the future of Canadian music and your opinion needs to be heard.
Congratulations on your new found influence at the highest levels of power.
Cheers,
Gregg Terrence
Indie Pool
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