CRTC approves Kosiner’s proposed TV audio channels

The CRTC said Thursday it has approved an application from Kosiner Venture Capital Inc. to launch new TV audio channels, opening the door to competition in a market in which Stingray Digital Group Inc. currently holds a monopoly. The commission gave the OK to an application Kosiner made late last year seeking permission to provide an initial package of 45 music channels through TV-service providers, with that number gradually increasing to as much as 60 over the licence term. The CRTC granted Kosiner a licence that expires Aug. 31, 2022. Company owner Evan Kosiner said Thursday that the channels should be launched by the start of 2016. He added that discussions are taking place with a partner that would result in a well-known brand for the audio service. "It's a brand that everyone knows and enjoys in the music sphere," Kosiner said in a phone interview. Kosiner said he plans to offer the music service to TV-service providers at a discount of 65 to 70 per cent on what's currently available. He has previously said he would discount the service as much as 80 per cent on costs that range between $20,000 to $35,000 a month in each local market. The CRTC said in a decision posted online that Stingray is the only company currently providing TV-based audio services in Canada. Its licence for this service was renewed in August and will expire in 2020. Kosiner said a priority for him is securing carriage agreements with TV-service providers. Though many already have multi-year arrangements in place with Stingray, he doesn’t expect those agreements will delay the launch of his service. He said initial conversations with broadcast distributors indicate some are interested in "doubling up" on different music services. Stingray spokesman Mathieu Peloquin said in an email Thursday that the company is not worried about the new competition, adding that it has long-term agreements in place with customers and is confident in the strength of its products, which also include music videos and apps for TVs and mobile devices. Licence conditions for Kosiner's service are largely identical to those for Stingray. For example, its Canadian channels must play at least 35 per cent Canadian content each week, the non-Canadian channels in packages must not be predominant in comparison to Canadian channels, and it must contribute at least four per cent of gross revenue toward various funds for developing Canadian content. Kosiner said regulations coming into effect next year that will require TV-service providers to make skinny-basic packages available for no more than $25 a month, with pick-and-pay options available beyond that, will not be "a major factor" affecting demand for his new service. "Consumers expect to have 40 music channels included within their service," he said. "It's something that's well received. Otherwise, it wouldn't have lasted as long as it has already." The CRTC first established a licensing framework for pay audio services in 1995, with the Copyright Board introducing tariffs on such services in 2002. — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC approves Kosiner’s proposed TV audio channels

Broadcast | October 1, 2015

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