Ad revenue at CBC falls by 11 per cent by Rick Westhead
Source : Toronto Star
December 20, 2004
The financial divide between Canada's private television broadcast industry
and the CBC widened last year as advertising revenue at the country's largest
public broadcaster slipped to its lowest level since at least 1998.
Advertising revenue at cash-strapped CBC/Radio-Canada, which is being battered by a loss of revenue from the National Hockey League lockout, plunged 11 per cent last year to $291 million, according to a report issued last week by the Canadian Radio-television and Telecommunications Commission, or CRTC.
The CBC's English TV service sold $190 million worth of ads in 2003, while
its French unit sold about $100 million. The public broadcaster's previous low was $307 million in 2000. The report included statistics since 1998, the first year of the CRTC study.
Private broadcasters typically chase popular U.S. programming, while the CBC
creates lesser-known Canadian content. "They have to tell the story of Canada, but maybe they could find a better way to do it," said Patrick Walshe, an executive with media buying firm Starvest Media Group in Toronto.
A CBC spokesperson declined to comment.
CBC's sports division generated $183 million in sales in 2003, the most among
the broadcaster's units, followed by its news division with $131 million, the
CRTC said.
At the same time as CBC's ad sales slipped, Canada's private broadcasters
garnered a record $1.7 billion worth of revenue, up 11 per cent from 2002.
CanWest Global Communications Corp., whose holdings include the National Post
as well as other papers, outpaced private broadcasters with $672 million in
sales, up 7 per cent from 2002. BCE Inc.'s CTV recorded $637 million in revenue, up 14 per cent, followed by CHUM Ltd., whose stations include CityTV and whose sales rose 16 per cent to $194 million.
