CBC Ad Revenues Beat Expectations
The CBC pulled in more advertising revenue than expected last quarter, despite a punishing recession that is pushing some broadcasters to the brink of bankruptcy.
“It looks like the advertising revenues will be ahead of plan by the first quarter,” Richard Stursberg said during a surprisingly upbeat financial update held in Toronto to present the first quarter results. The executive vice-president of CBC English services said “”The sales department has done an outstanding job. It looks like the first half will be ahead slightly of where we need to be.”
The news will come as a relief to CBC employees who have faced 393 layoffs and retirements in English services over last few months, in large part because of the collapse of the advertising market last summer and fall. He also noted that the corporation was on track with its cost reduction targets.
Stursberg said he is pleased with the audience growth for both CBC Television and CBC Radio. CBC Television’s audience numbers have improved in the last couple years in pretty much “every single time slot,” he said.
Since the recession hit last fall, the CBC has been facing a massive $171 million revenue shortfall. Stursberg said there were a couple unexpected events are helping the corporation tackle the shortfall, such as cost-cutting measures and a new local programming fund which provided some unexpected revenue.
Nevertheless the central plank of the corporation’s recovery efforts remains the sales of a number of real estate holding and assests. For these sales to proceed the CBC needs approval from the government, a process Stursberg describe as more than difficult. “Dealing with the government is not just difficult, it’s a nightmare,” he said, adding that the process was “on track it’s just slow. “
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I wonder how many jobs could have been saved if the senior brass had been more on top of things?
Still shameful they bonuses are being handed out while staff lose their lively hood.
So – how many jobs does this save?
Prefer to amend the question to “jobs and programming”…
cost cutting measures= dumping the workforce
Not what I would want to see happen, speaking as a viewer and listener, Tripoli.
This is the worst possible news.
…so can i have my job back?
Unless a miracle happened during the First Quarter 2009, what the CRTC has to say about the CBC listenership (esp. CBC Radio) as at December 2008 is considerably different from what Richard Stursberg is intimating re: audience growth. (CRTC News Release: “CRTC issues second annual report on the communications industry,” August 5, 2009 http://www.crtc.gc.ca/eng/NEWS/RELEASES/2009/r090805.htm, accessed August 24, 2009)
Can’t the CBC do a similar model for it’s souce of funding of licence fees as the BBC does? That way we don’t have to go through those gruesome ads and instead have non-stop programming that can actually get more viewer ship?
Clarification needed, please.
My understanding of the LPIF (Local Programming Improvement Fund) comes from the Canadian Association of Broadcasters [CAB]:
“On July 6th, the CRTC issued its decision on the Local Programming Improvement Fund (LPIF) for over-the-air broadcasters serving markets of less than 1 million. The decision re-affirms the Commission’s establishment of the Fund at a rate of 1.5%, for its first year, starting in 2009 with revised eligibility and definition of local programming as outlined in the CRTC decision. It is expected that the Fund will be operational by October of 2009.
CAB has been mandated to assist in the establishment of the Fund. CAB must establish a governance structure which should involve representatives from contributors to and beneficiaries of the LPIF. CAB will also work with McCay, Duff LLP the chosen administrator of the Fund, to ensure operational simplicity, transparency and accessibility to the Fund.
CAB’s Board of Directors agreed to form a working group along with CBC/SRC representatives. The mandate of the working group will be to establish the governance structure and to enlist the BDU representative to the LPIF Board of Directors. It is expected that the Fund will be operational by October of 2009″ (Canadian Association of Broadcasters [CAB], “Special Update, July 22, 2009,” http://www.cab-acr.ca/english/media/special_update6_july_09.shtm).
And what the CAB 2009 Financial Report (http://www.cab-acr.ca/english/pdf/CAB_Financial_Report_2009.pdf) states just doesn’t match the information from Stursberg’s analysis of the ‘much improved’ financial picture of the Canadian Broadcasting Corporation in the First Quarter 2009 (FQ09). Private radio broadcasters experienced a continuing downturn in radio revenues: “Radio advertising revenues: -5.7% in May 2009 compared to May 2008 YTD” (p.4).
What is Stursberg referring to? Did a miracle really happen at CBC (re: my previous comments)?
See also the CAB letter, dated February 23, 2009, initially calling for proposals for the LPIF, suggesting that CBC also be involved: http://www.cab-acr.ca/english/research/09/CAB_proposal_re_LPIF_PN_2008-100.pdf.
Further, the CRTC made its decision on July 6, 2009 (“Policy determinations resulting from the 27 April 2009 public hearing”), but unless I missed the information in reading the decision, there doesn’t seem to be mention of CBC anywhere. (See Broadcasting Regulatory Policy CRTC 2009-406 http://www.crtc.gc.ca/eng/archive/2009/2009-406.htm)
So, my question is this: The LPIF wasn’t in existence in the FQ09 so how could monies have been allocated already (re: “a new local programming fund which provided some unexpected revenue”) and to the Canadian Broadcasting Corporation, specifically? And I just cannot find any Quarterly Reports submitted by the Canadian Broadcasting Corporation for 2009 anywhere to corroborate Stursberg’s comments. Can anyone help me here?
This is what causes me to mistrust what Stursberg reportedly said about ad revenues exceeding expectations: “Canada economy shrinks 5.4 percent in first quarter,” Reuters.com, June 1, 2009 http://www.reuters.com/article/bondsNews/idUSN0145466620090601, accessed August 29, 2009.
Not only the Canadian economy but also the private broadcasters experienced “horrific” FQ results, so how come CBC’s fantastic sales department beat all the odds and “exceeded expectations,” I asked myself.
From the silence and lack of figures from CBC (before and) since my query, I can only surmise that the original expectations were so abysmally low that even one ad would have exceeded all expectations. Either that or there were no realistic expecations at all.
Come on, CBC, prove me wrong. Speak up! You’re the Media after all! You can do it. You can come up with the facts, the figures, the right answers.
Then again, maybe you can’t, muzzling notwithstanding.
Gigi, the ad revenue forecasts were downgraded after the recession hit, I don’t have the exact numbers on hand.
Thanks, Paul, but my comments are concerned with the 2009 First Quarter results Stursberg reportedly released, and to which you blogged your comments.
I can’t find any information on what those figures were, or to whom those results were given. There seems to be a big silence on the results.
I would have thought there’d be, at the very least, a news article somewhere on the CBC site, since the FQ09 results “beat expectations” but alas, I just can’t find one.
Is the CBC “hiding its light under the bushel,” so to speak? Or are my speculations more to the point, the truth?
“Gigi Grante says:
Thanks, Paul, but my comments are concerned with the 2009 First Quarter results Stursberg reportedly released, and to which you blogged your comments.
I can’t find any information on what those figures were, or to whom those results were given. There seems to be a big silence on the results.
I would have thought there’d be, at the very least, a news article somewhere on the CBC site, since the FQ09 results “beat expectations” but alas, I just can’t find one.
Is the CBC “hiding its light under the bushel,” so to speak? Or are my speculations more to the point, the truth?”
Putting aside your snide comments about the sales department for a moment did you ever stop to consider the possibility that it would be cast iron stupid for the CBC to be trumpeting good results on the first quarter?
The CBC is still negotiating with an arrogant and openly hostile Minister on the disposal of some assets which, if they are unsuccessful, will probably trigger a second round of reductions that will make the first round look like a day at the beach.
As well there are still a number of people whose positions have been declared redundant but, due to bumping, are still there who would probably start demanding that their redundancy be retracted.
No matter how good the first quarter results were they could not be possibly be good enough to offset the hole that the CBC is in for the short term.
I realize it is frustrating when you can’t get Senior Management to stop acting responsibly simply because you demand they do, but sometimes that’s just the way things go.
As I key in these strokes, the CBC Ombudsman, the CBC Communications Department, and the Ministry have handled/are handling my request for numbers to back up Stursberg’s reported statements (found in this blog), as any good ‘Watchdog’ (aka Watcher of the Airwaves) would do.
In the meantime, people may want to take a look at the 2009-10 ‘estimates’ for Operating Expenses and Capital for the CBC posted on the Ministry of Cultural Heritage’s site: http://www.tbs-sct.gc.ca/est-pre/20092010/me-bd/CH-PC-eng.asp#bm03, especially noting: “For the Canadian Broadcasting Corporation, the decrease [in spending by the Ministry] is due to several items, including a $60 million adjustment in the corporation’s spending profile from the previous year, a $20 million reduction in spending an a $44.1 million reduction in revenue generation, both due to the ending of the Beijing Olympics. These decreases were partially offset by $20.0 million for collective bargaining.”
Someone familiar with reading financial statements may explain these figures, comments to those who find it difficult to understand what it all means.
Stay tuned for the true figures. . coming soon.
~ Gigi, one of the Media Watchdogs (aka Les Lionnes des Ondes)
As I key in these strokes, the CBC Ombudsman, the CBC Communications Department, and the Ministry have handled/are handling my request for numbers to back up Stursberg’s reported statements (found in this blog). . . .
Take a look at the reasons why CBC didn’t get the monies from the Ministry at:
http://www.tbs-sct.gc.ca/est-pre/20092010/me-bd/part-I-eng.asp
Stay tuned for the real figures . . . coming soon.
~ Gigi, one of the Media Watchdogs (aka Les Lionnes des Ondes)
I’d imagine that you’ll be out of luck, as that strikes me as the kind of commercial information that would be exempt from ATI requests. But I’m glad you have a hobby.
And if it turns out that Stursberg was spot on will you be offering a public apology?
Probably not… and not just because the comments on this thread will be closed.
“Someone familiar with reading financial statements may explain these figures, comments to those who find it difficult to understand what it all means.”
If you don’t know what you are talking about then I have to ask… why are you talking about it? Are the axes getting that dull?