Today Canada's broadcast regulator failed to recognize the opportunity to hold the line on music piracy - threatening emerging online music businesses - and undervalued Canadian musical talent in a "short-sighted" decision on digital subscription radio, comments the Canadian Recording Industry Association (CRIA).

The Canadian Radio-television and Telecommunications Commission's (CRTC's) licensing decisions and accompanying framework, authorizing the applications by Canadian Satellite Radio and Sirius Radio Canada for satellite subscription radio services and by CHUM Subscription Radio Canada for a terrestrial subscription radio service, followed a public hearing held in Ottawa in November 2004.

"CRIA's members invest in excess of $50 million annually in the careers of Canadian artists and in the creation, production and distribution of their music," comments CRIA President Graham Henderson. "The CRTC's failure to ensure that the new digital subscription radio services hold the line against music piracy is short-sighted and a tremendous disappointment. There are relatively inexpensive and simple technological fixes out there. We had offered to work with the services, but the CRTC elected not to address this important issue. Furthermore, it threatens emerging online music businesses that are the natural partners of digital subscription services."

CRIA had urged the CRTC to exercise its authority to require any new digital subscription service to adopt content protection measures preventing digital signals from being downloaded, edited into individual songs and redistributed through peer-to-peer music swapping services and by other unauthorized means. The Commission's licensing framework and accompanying decisions failed entirely to address this issue. In addition, CRIA had requested that any new subscription radio service respect the policy objectives of Canada's Broadcasting Act and make necessary commitments to Canadian content.

"It is unfortunate that the CRTC did not demand more from the proposed new services. While its approach to emerging Canadian talent warrants mention as innovative, overall its licensing framework represents a missed opportunity to offer Canadian consumers new means of accessing a significant volume of their favourite Canadian music," says Mr. Henderson. The decisions require the services to carry Canadian programming only on Canadian-specific channels, for a total of less than 10 per cent of the overall available programming."

The Canadian Recording Industry Association (CRIA) promotes the interests of Canadian record companies and artists. CRIA represents the producers, manufacturers and distributors of more than 95 per cent of all records produced and sold in Canada.