February 10, 2025
As a federal election gets closer, the fate of the CBC gets nearer.
The worst thing that can happen to the CBC (and the 78% of Canadians who support it) is that Pierre Poilievre gets elected to majority government. He will indeed defund the CBC, the only question is how quickly and completely.
The second worst thing that can happen is that the Conservatives don’t come to power and Ottawa hits the snooze button on re-engineering the public broadcaster. Recall, the McGill poll from November 2024 reaffirmed broad public support for the CBC but only if it addresses its major criticisms.
The public debate about those criticisms of the CBC, and what to do about them, finds commentators speaking from two different viewpoints. No, not for and against. But rather “news” versus “entertainment.”
Most of the high profile commentators are journalists who focus on the democratic imperative of saving CBC News in a shrinking journalism ecosystem. After all, about a third of Canada’s 10,000 professional journalists are employed by the public broadcaster. The journalist corps representing the other two-thirds, employed by privately owned media, is steadily shrinking despite the federal government financial aid that Poilievre also says he will defund.
There’s been a useful public debate on how CBC News could do the trifecta of improving programming, defending its audience share (at risk among young Canadians) and mollifying its critics in the political class.
Chris Waddell and Peter Menzies, both interviewed here on MediaPolicy, have offered useful ideas on how to do it. Their views were supplemented last week by the journalist and policy analyst Ed Greenspon and independent (and very much ex-CBC) news producer and writer Tara Henley.
If there’s at least one common theme to all these opinions, it’s to decentralize or re-regionalize CBC News. As it happens, this rhymes with the talking point that the new CBC President Marie-Philippe Bouchard is making by extolling “local” and “proximity” as the CBC’s greatest virtues.
Decentralizing CBC News would address at least two problems: first, give Canadians more of the local news they want. Second; mitigate the hinterland anger directed at a richly endowed public broadcaster that is dug deep into the Toronto streetscape where its main newsroom is steeped in a metropolitan bias, the natural outcome of where most of its employees live.
Another common theme among the news-first proponents is the lack of interest in preserving or improving CBC’s entertainment programming. Waddell and Henley want to toss it overboard entirely and cry uncle to the US streamers, while Greenspon just doesn’t mention it at all.
The CBC is the nation’s biggest platform for Canadian entertainment content, in particular television drama and documentaries (leave aside CBC sports television programming for now, that’s a different discussion).
The private Canadian broadcasters are spending less and less on “Programs of National Interest” (PNI)—-don’t be distracted by the awkward CRTC jargon—- for a variety of macroeconomic factors that can’t be bargained or reasoned with.
The ad market for television has deflated.
Canadian broadcaster revenues and profit margins have been falling steadily because of cord-cutting and the success of foreign television and music streamers.
Corus Entertainment (operator of StackTV and Global TV) is almost insolvent.
Bell Media runs its news division at a massive loss and is barely profitable only because of an entertainment portfolio anchored by its long-term deal to retail HBO programming in Canada.
Rogers is focussed on sports programming.
At last weekend’s Digital Media at the Crossroads conference, Richard Stursberg projected that English-language Canadian broadcasters will be collectively in the red by 2028.
Indeed, the trends are all going in the wrong direction.
Spending on Canadian TV dramas by the English language Canadian networks has shrunk 65% (in real dollars) over the last decade according to a recent study commissioned by the Director’s Guild.
Meanwhile the streamers have set a new, stratospheric bar in rising per hour production budgets. Canadian broadcasters can either respond with bigger budgets (they can’t or haven’t) or allow the gap in on-screen production values to widen. (The APTN/CBC/Netflix co-pro North of North could not have been made without the Netflix investment that made filming in Iqaluit possible).
Enter the CRTC’s white-flag-of-surrender idea of abolishing the regulatory category of “PNI” in hopes that when it orders Netflix, Amazon and Disney to make “Canadian content” the streamers will by default make dramas. Meanwhile, abolishing PNI for Canadian broadcasters would mean Bell, Global, Rogers and Québecor can opt to shift their spend from money-pit dramas to profitable unscripted television and lifestyle programming.
Quite apart from whether it’s a good idea to outsource Canadian television dramas to American studios looking to sell back into their own market, the question is whether Canadian broadcasters would ever make a drama series again if the CRTC doesn’t require it.
Those who were around to win the regulatory battle for Canadian television drama back in the 1980s will have an opinion on the matter.
If we have to take a defunded English language CBC out of the funding equation for Canadian television drama we subtract a programming budget north of $120 million annually, as the public broadcaster is the nation’s biggest buyer of Canadian dramas.
Bell spent $70 million on English-language Canadian drama in 2023-24 (its budget was $75 million ten years ago) and Corus spent $37 million (it was $96 million as Shaw and Corus combined in 2014).
The numbers speak for themselves.
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News publishers call the federal Liberals’ latest move “as dumb as a bag of hammers” and Ottawa’s reinstatement of its government advertising on Meta’s social media platforms wasn’t on anyone’s bingo card. The spending ban was in retaliation for Meta’s blackout of Canadian news on Facebook and Instagram.
Friends and foes of the Online News Act Bill C-18 will say the predictable things. What a spineless, election-motivated reversal. What a foreseeable debacle.
News Media Canada took the opportunity to hurry new survey results to press: a solid majority of Canadians want the federal government to spend more advertising in newspapers and less on social media.
According to its press release, “almost two thirds (63 per cent) of Canadians trust advertising in newspapers/news sites, while just 28 per cent trust ads they see on Facebook/Instagram.”
The publishers’ alliance applauded the Ontario government’s decision last July to boost ad spending on newspapers while pointing out that the federal advertising budget allocates only two per cent of its dollars to print.
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I often recommend Ken Whyte‘s Substack column SHuSH and do so again.
Whyte is the owner and operator of the Canadian book publisher Sutherland House and as such automatically qualifies as an expert in the economics of Canadian media. He’s also the former editor of Maclean’s Magazine, ex-President of Rogers Publishing, and once Editor-in-Chief of the National Post. Additionally, he writes like a dream.
In his last column he contemplates what a Trump tariff on books would do to Canadian publishers who are mostly small independents that hold, collectively, a minority share of the Canadian market that is otherwise dominated by foreign giants.
Sound familiar?
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