Like all conventional broadcasters, we are affected by a softening advertising market that is down approximately 5%. Espace musique and CBC Radio 2 garnered lower-than-expected revenues resulting in a $13 million shortfall. Additionally, other combined pressures, including CBC Television’s disappointing results in the key 25-54 year-old demographic and the loss of the NHL contract’s ripple effect, have resulted in a further $47 million shortfall.
CBC/Radio-Canada also faced additional pressures from fixed cost increases such as rent and property tax increases ($42M), and two federal government-wide salary funding freezes ($30M). These add up to an additional $72 million.
Finally, since 2009, we have absorbed $390 million in reductions and reallocations due in part to the 2008 recession; the government’s Deficit Reduction Action Plan and salary inflation funding freezes; and the elimination of the Local Programming Improvement Fund. We have also seen reductions in assistance from the Canada Media Fund.
This video includes French content only and presents an extract of Hubert T. Lacroix's presentation during the employee town hall on April 10, 2014.
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