Amid cuts in funding, the Canadian Broadcasting Corp. has made plans to pursue their “everyone, every way” plan which will attempt to encompass more digital delivery platforms in the next five years. CBC has had a shortfall of $24.6-million in 2011 and this number is expected to get worse as funding cuts were announced recently.
During CBC Radio-Canada’s fourth-annual public meeting, CEO Hubert Lacroix, spoke about delivering “more regional and more digital… and distinctly Canadian” programming. Lacroix talked about how CBC had stuck to its commitment to the plan that was put in place two years ago. The CEO highlighted Edmonton, Montreal and Northern Canada where weekend and late-night news were launched as proof of CBC’s following through on its commitment to refresh content and deliver it online or on wireless devices.
The bold plans to move forward may seem like they are on track but the broadcaster is losing money and remains unable to cover its $1.84-billion in operating expenses. Advertising and subscription fees account for $649-million and $1.16-billion of funds provided by Ottawa fail to cover the expenses of the company.
It was announced in March that the federal government would reduce funding by $115-million to CBC over the next three years. To make matters worse, in July the Canadian Radio-television and Telecommunications Commission (CRTC) stated that they would stop giving a $47-million subsidy to CBC. This decision was the result of lobbying by cable and satellite companies to stop the funds. CBC is now scrambling to increase revenue by looking at avenues it had not used before like seeking the right to sell ads space services like CBC Radio 2.
This may be a short term issue and the acquisition of programming BCE Inc. and Rogers Communications Inc. is creating a “vertically integrated” market. This means only a few large companies will own a bulk of the broadcast assets for TV, radio and internet.
Lacroix is sounding the alarm and has stated that, “Back in 2008, vertical integration was a concept confined to boardroom conversations. Not anymore.” In a market place like this, Lacroix stated that, “Diversity and range of voices is at stake. That’s where a public broadcaster comes in.” He believes that the pressures will cause institutions like CBC to disappear if regulation and rule changes do not stop the damage from taking place.
Source: Financial Post
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