CBC May Seek Bridge Financing from Feds
Richard Stursberg held a town hall meeting in Toronto today to update staff on the CBC’s financial situation, saying CBC’s advertising revenue have fallen “off a cliff,” and the CBC is considering asking the government for bridge financing to weather the recession.
The update focused on the financial health of the corporation for the rest of this year and next year. Given the tough financial climate across the media industry, the news was not good. “We have not been able to bail the boat as quickly as the water is coming in over the gunwales,” Stursberg said.
He predicted that CBC English services would face a $12 million shortfall for this fiscal year, and forecasted a continued slump in advertising revenue for next year. He said the advertising revenue shortfall began last summer: “The revenues fell off a cliff… I have not seen a slide that precipitous and that deep in my entire life.”
Stursberg said the CBC is considering bridge financing with a line of credit or by pulling forward future appropriations. “But.. the money would be paid back.” The money would be a bridge loan he said “not a hand-out.”
A spokesperson for Heritage Minister James Moore told the Toronto Star he was already in discussions with the CBC and indicated the door was open to help the corporation.
“In these difficult economic times all broadcasters, including the CBC, are facing challenges, and he is open to working with everyone in a way that will serve all Canadians,” Deirdre McCracken told the Star.
But the Executive Vice-President, English Services added that “we don’t know how receptive the government will be to the request.” Bridge financing would be a new approach for the CBC. Stursberg also said before the request is formally made the CBC would need to get a final view of the financial picture, and then get approval from the board.
Discussions on this approach are already underway. “We’ve been in discussions with the federal government about (the bridge financing option) for the past month,” Jeff Keay, the broadcaster’s head of media relations said.
If the bridge financing approach fails Stursberg said “We’re looking at the company as a whole… everything’s on the table,” in response to question about potential lay-offs and cuts.
Stursberg kicked off the presentation with an overview of the tremendous progress CBC Radio, Television and cbc.ca have made this year. CBC Radio One has exceeded its target, he said, “These results are nothing short of astonishing,” and CBC Television hit “the highest share this decade. We are actually, in the 2+ demographic, beating Global. Our Canadian shows are beating their American shows.”
“It’s terribly frustrating that things should go so well and we’re faced with such financial difficulty,” he said but the CBC is much better off than if things had been going badly.
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“We have a sports licence [...] context makes it difficult to launch”: delays in the specialized sports channel?
What’s a gunnel? R we ryting fonetikly now?
Joe, what are you saying????
a gunnel is an accepted variant of the word gunwale.
not that it actually matters much to the conversation, but I’ll change it.
What did Stursberg say about Radio 2?
I’m guessing the silence is deafening.
Excellent radio hosts and a Canadian identity were in the water that was bailed.
The captain is supposed to go down with the ship. But in this corporation, I bet he – or they – will simply find another ship, courtesy of captains of industry, while the sailors are cast adrift and the ship sinks.
I think he said he was happy that Radio 2 had about met the demographic targets they were hoping for. But don’t quote me on that. It’s simply my hazy recollection. Radio 2 (or the changes) wasn’t a focus of the update.
sun media may have been completly correct ,
only if they can’t appreciate the difference between a loan and hand-out.
What do you call it when you give someone a loan and then give them the money to pay you back?
I call it confusing the issue. A hand-out, as the Sun article implied would cost taxpayers additional money. A loan would not. This idea is for a loan on parliamentary appropriations. Not a hand-out. This approach is designed to avoid additional cost to taxpayers. Additionally taxpayers would not give the CBC “money to pay [it] back.” The idea is that the loan would be repaid from future revenue or the existing funding when the economy improves.
From the CBC press release yesterday:
“CBC/Radio-Canada is trying to manage its existing appropriation in a way that spreads the effect of the financial crunch over several years. Private broadcasters have the financial flexibility that comes from access to capital markets and commercial borrowing. As a Crown Corporation, CBC/Radio-Canada has no access to this type of borrowing for working capital purposes.”
Which is why they want a loan.
Eventually this will translate to job losses. The Conservatives will not do anything that appears to help the CBC.
Jobs losses will be here soon.
Let the renovations begin in the name of saving money.
Radio 2 reportedly spent over $2 million last year advertising its embarrassing new programming that has so badly bombed. Then there was the $1 million in bonuses to the 12 members of the senior executive team. Not to mention Sylvain Lafrance’s $80,000 a year expense account. All of that is the tip of he iceberg. It all adds up.
Waste not, want not.
I wonder if part of the reason CBC listenership is up is that people are spending less money on entertainment outside the home. I know we are! And we are consequently listening to radio more, watching TV more — much of it CBC programming. It seems to me this might be an argument the CBC could use to influence the government to make them a loan — or whatever other vehicle they think could help keep them afloat until the economy turns around again. Crises are always opportunities. Some establishments are seeing business boom in these hard times — libraries are busier than ever, for example. It’s just a question of figuring out what tack to take to make the most of this financial crisis.
2009 Young Artist Award Nominations were released this morning, a few CBC Canadians have been nominated! Some include:
Isaiah Grant for CBC series “The Border” (BEST PERFORMANCE IN A TV SERIES Guest Starring Young Actor);
Jodelle Ferland for CBC special “Celine” (BEST PERFORMANCE IN A TV MOVIE, MINISERIES or SPECIAL Supporting Young Actress).
For the full list of 2009 nominations visit youngartistawards.org or http://www.youngartistawards.org/noms30.html
Final Winners will be announced at the 30th Annual Young Artist Awards ceremony and benefit scheduled for Sunday March 29th, 2009 at the Global Theater, Universal Studios.
*feel free to post on to blog as a new topic! Congrats CBC
Tina – what’s the price of tea in China?