CHUM seeks to add non-Canadian channels to its proposed subscription radio service

[lprice99]

CHUM Ltd. is looking to expand its Canadian radio operations and wants federal regulators to allow its proposed subscription radio service to import channels from countries such as the United States.

Chief executive officer Jay Switzer said CHUM is altering its plan for a subscription radio service, which had called for heavy promotion of Canadian content, in order to compete with satellite radio programming now being offered.

"We still have a very pro-Canadian, Canada-first platform, but we're looking for some flexibility in terms of how we might move some of [our] Canadian content around," Mr. Switzer said after CHUM's annual meeting in Toronto yesterday.

The company's new strategy looks to "pair up some completely Canadian channels with some imported channels, which we hadn't originally asked for," Mr. Switzer said.

[Arthur Dent]

Now that XM and Sirius are in Canada, I would be glad to see CHUM come up with subscription radio service too and hope the CRTC allows them the right to carry less CanCon. I for sure would gladly dump my Sirius subscription for another sevice with half the channels and better sound quality. XM's and Sirius' sound sucks.

[HornHonker]

Yes, it is nice to see they may still be in the game. If they don't get sucked into the low bandwith/high stream numbers they would be capable of very good sound. This may also put competative pressure on the sat companies to try to increase their sound quality.

[fionn]

Remember everyone, CHUM tried very hard to scuttle satellite radio in Canada. Do you really want to support them?

[hugh]

I would support Chum because, as Hornhonker suggests, competition is good.

Chum, in their defence played by the rules. They didn't try and cheat anyone, they fought the battle and lost.

Honestly after John Bitoves 475 million dollar payday, maybe we all lost!

[Arthur Dent]

Not all, only those who buy XM Canada shares

[hugh]

true Arthur - true.

[mark]

So CHUM was/is serious about going ahead with their service? I thought it was just a ploy to keep XM & Sirius out.

What types of radios would this service require?
Would they be using terrestrial antennas to broadcast?
Would they be launching a service comparible to Clear Channel in the US?
Would they be bound by language/content laws?

I could see people in larger cities going this route if it meant they got better reception and quality than AM/FM radio but for all of us out in the boonies I think satellite would still be superior.

[hugh]

Mark, Chum was serious but they said they would ONLY go ahead if satellite radio was NOT approved. I think they truly believed the government would not allow satellite radio in this country and frankly the laws, even as they stand today, suggest that the use of U.S. satellites to deliver the signals is illegal.

[mcpish]

Originally Posted by mark

What types of radios would this service require?
Would they be using terrestrial antennas to broadcast?
Would they be launching a service comparible to Clear Channel in the US?
Would they be bound by language/content laws?

I read the entire transcript of Chum's meeting with the CRTC in Nov 2004. The radios themselves are simply DAB radios (Eureka 147) with a custom access module to allow for subscription radio services. This is the same radio format in heavy use in the UK. I remember them mentioning that one of the advantages of their radios was that in addition to receiving the Chum subscription, the radios can simply be used as conventional DAB radios to receive DAB broadcasts. This was the main reason they argued that their subscription model would be "complimentary" to traditional radio rather than competive to it like Sirus/XM. The logic went that Chum's subscription plan would "kickstart" the adoption of DAB radio in Canada which itself has been available for years but so far has had limited commercial success (only stations in a few big markets). Chum reasoned that with their plan they could offer thier service in all major cities and that this would encourage conventional broadcasters to start broadcasting in DAB in other cities (Winnipeg, Calgary, Edmonton) because there would finally be consumers who'd have DAB receivers.

I actually quite like this idea simply because it uses existing "open" standards rather the closed-vertically integratted model that SIrius/XM use. At least in theory if you were to buy one of these "Chum" radios and it actually spurred a lot of new 3rd party conventional DAB stations in your city, you wouldn't be left with a useless radio if Chum's service suddenly went away. If Chum kept the bitrate high and emphasized sound quality (basically the opposite of what Sirius and XM do), then I'd consider getting a subscription to their service.

[classicsat]

What types of radios would this service require?

Likely DAB radios.

Would they be using terrestrial antennas to broadcast?

In the beginning, yes, and at that likely only in urban centres. Eventually, I think E-147 is satallite compatible, but Chum would have to have a deep-pocketed partner to accomplish that.

Would they be launching a service comparible to Clear Channel in the US?

Don't get. Clear Channel does not have pay multichannel
service that could be comparable to what Chum intends to offer, at least to my knowlege.

Would they be bound by language/content laws?

Definately, since Chum will be in 100% control of the platform (unlike the current satellite providers, which are piggybacking on the US service), and what channels are avaliable.

I could see people in larger cities going this route if it meant they got better reception and quality than AM/FM radio but for all of us out in the boonies I think satellite would still be superior.

That is the rub with the Chum proposal, little or no timely rural coverage.

[Kieran]

I wish CHUM has partnered with XM....both would have benefitted.

I live in the country and CHUM does not give a ---- about rural Canada, hence, I do not give a ---- about CHUM.

[ai4i]

Originally Posted by hugh

...they fought the battle and lost...

Not really, they got one of the three licenses.
I would love to have a license to offer service to thirty million people.