Broadcasting 2007: Report on the Industry

Transcription

Broadcasting 2007: Report on the Industry
BROADCASTING
2007:
REPORT
ON THE
INDUSTRY
PREPARED BY THE CANADIAN ASSOCIATION OF BROADCASTERS
BROADCASTING 2007: REPORT ON THE INDUSTRY
TABLE OF CONTENTS
INTRODUCTION ............................................................................................................................................1
Section 1 ......................................................................................................................................................2
Canada’s Private Broadcasters: Local Stations, Across the Nation..............................................................2
Broadcasters by the Numbers ......................................................................................................................2
Employment Rising in all Sectors of the Industry..........................................................................................3
Section 2 ......................................................................................................................................................4
Broadcasting in a Broadband World..............................................................................................................4
Explosion of Choice, Fragmentation of the Audience ..................................................................................4
The New-media Consumer: Plugged-in and Online ......................................................................................5
Ad Spending: the Internet is Booming, while Traditional Media Remain Steady ..........................................6
Section 3 ......................................................................................................................................................8
Comparative Economic Performance ............................................................................................................8
Section 4 ....................................................................................................................................................11
Content by Canadians, for Canadians ........................................................................................................11
Section 5 ....................................................................................................................................................16
Copyright – A Growing Concern..................................................................................................................16
Section 6 ....................................................................................................................................................18
Making a Difference – Broadcasters’ Community Contributions ................................................................18
Ensuring Diversity on the Air and behind the scenes..................................................................................18
CAB Diversity Initiatives – Encouraging and Celebrating Diversity ............................................................18
Broadcasters – Leaders in their Communities ............................................................................................20
Section 7 ....................................................................................................................................................22
Conclusion ..................................................................................................................................................22
BROADCASTING 2007: REPORT ON THE INDUSTRY
INTRODUCTION
ABOUT BROADCASTING 2007: REPORT ON THE INDUSTRY
The report which follows was developed by the Canadian Association of Broadcasters to provide a factual
summary of the economic, social and cultural contributions of Canada’s private broadcasting industry.
Broadcasting 2007 provides a holistic view of the Canadian broadcasting sector, demonstrating the
essential role of Canada’s private broadcasters in their communities, informing and entertaining their
audiences, and keeping them engaged with their neighbours and Canadians across the country.
Published: November, 2007
ABOUT THE CANADIAN ASSOCIATION OF BROADCASTERS
The Canadian Association of Broadcasters (CAB) is the national industry association that represents
Canada's private broadcasters - including private television and radio stations and networks, and
specialty, pay and pay-per-view television services.
Private broadcasters are the voice and choice of Canadians. Private radio and television services enjoy by
far the largest share of the market, and Canadian programming broadcast by those services attracts the
predominant share of the total audience for Canadian content.
OUR VISION
The goal of the CAB is to represent and advance the interests of Canada’s private broadcasters in the
social, cultural and economic fabric of the country.
OUR MISSION
To serve as the eyes and ears of the private broadcasting community, to advocate and lobby on its behalf
and to act as a central point of action on matters of joint interest.
INTELLIGENCE GATHERING AND COMMUNICATIONS
The CAB operates as the eyes and ears of the private broadcasting community. The CAB functions as an
early warning system that analyzes and synthesizes issues impacting on the system and any policy or initiative of our governments or their agencies, and recommends a course of action.
For more information on the Canadian Association of Broadcasters, visit our website at www.cab-acr.ca
CANADIAN ASSOCIATION OF BROADCASTERS
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BROADCASTING 2007: REPORT ON THE INDUSTRY
SECTION
1
CANADA’S PRIVATE
BROADCASTERS:
LOCAL STATIONS,
ACROSS THE NATION
The broadcasting sector in Canada is truly expansive, spanning coast to coast to coast, and
employing thousands of Canadians across the country. Radio, Television, and Specialty and Pay
broadcasters are profoundly engaged with their communities – both geographically and culturally.
BROADCASTERS BY THE NUMBERS
Private broadcasters provide a local perspective on the events that are of interest to people in those
communities.
They broadcast in hundreds of markets across Canada in a multitude of languages, providing relevant
information to Canada’s many varied cultural and ethnic communities.
400
The news and entertainment programs that
private broadcasters produce contribute greatly
to Canadian expression, and the fiber of our
country – ensuring Canada’s place in the world.
367
350
300
Private broadcasters work in partnership with
many others towards the economic and social
betterment of our society. Canada would not be
as unified or strong without the contributions
of private broadcasters.
(Source: CRTC)
2
Television
Radio
250
200
157
150
89
100
50
15
9
184
465
English
Private
Commercial
AM Stations
Private
Commercial
FM Stations
French
Third-language
100
80
74
60
40
20
51
30
23
4
0
26
14
5
15
3
2
7
2
4
11
2
101
49
18
79
13
13
Over-the-air
Analog
Specialty
Category 1
Specialty
Services
Category 2
Specialty
Services
Pay
Television
Services
PPV Services
CANADIAN ASSOCIATION OF BROADCASTERS
BROADCASTING 2007: REPORT ON THE INDUSTRY
EMPLOYMENT RISING IN ALL SECTORS OF THE INDUSTRY
The broadcasting sector is a major source of direct employment in Canada. There are more than
23,000 Canadians currently employed in the broadcasting sector.
Broadcast Employment
25000
20000
15000
10000
5000
0
2001/02
2002/03
Pay & Spec
Radio
Priv Conv
Total
2003/04
2004/05
2005/06
(Source: CRTC)
The number of Canadians working in the broadcasting sector has increased in the industry as a whole,
and in each sector of the industry, over each of the past five years.
CANADIAN ASSOCIATION OF BROADCASTERS
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BROADCASTING IN A
BROADBAND WORLD
Media consumption patterns in Canada have changed dramatically in recent years. Canadians have a
wealth of media choices from the regulated broadcasting sector, as well as a vast number of unregulated
broadband competitors.
This trend is especially notable in younger Canadians (the 18-24 age group), who are increasingly downloading and streaming the audio and video content that was traditionally provided by broadcasters.
EXPLOSION OF CHOICE, FRAGMENTATION OF THE AUDIENCE
Within the regulated sector, the choice available to television viewers has exploded since 1996.
Viewing to English Services 1996
0.8% TLC
0.7% CNN
3.1% A&E
1.0% TNN
3.1% PBS
5.2% NBC
25.9% CTV
Viewing to English Services 2005-6
1.3% TLC
0.2% Golf 0.4% Speed
0.1% Consumer News
2.9% TBS
1.8% CNN
1.6% Spike
0.1% BET
1.9% A&E
1.0% US Supers
1.4% Other US
2.3% NBC
12.5% CTV
1.6% US Independents
2.4% CBS
4.9% CBS
1.4% PBS
1.5% FOX
1.4% TMN
0.7% Superchannel
0.4% MoviePix
3.0% All Diginets
4.2% ABC
1.1% PROV
0.5% Vision
0.3% Weather
2.8% YTV
2.6% City
3.0% TSN
2.0% Treehouse
0.7% Weather
1.8% Family
1.0% Comedy Network
1.8% Teletoon
0.2% Star
1.9% SportsNet
CANADIAN ASSOCIATION OF BROADCASTERS
0.3% Toronto One
1.0% Omni 1&2
2.1% CH
1.2% W
0.4% Vision
7.1% Global
6.0% CBC
4
6.0% CBC
2.0% YTV
2.5% TSN
0.4% TMN
0.2 Superchannel
1.1% Newsworld
0.7% MuchMusic
16,0 % Cdn Independents
8.4% Global
1.8% ABC
1.5% Space
1.5% Showcase
0.6% Score
1.0% TV Prime
0.3% Outdoor Life
0.7% MuchMusic
0.4% MuchMoreMusic
6.0% Other Conventional
2.2% A Channel
0.9% Bravo
0.9% Newsworld
0.8% CMT
0.7% CTV Newsnet
1.8% Discovery
0.6% Food
1.0% HGTV
1.2% History
0.8% Other Can. Spec.
0.5% Life
BROADCASTING 2007: REPORT ON THE INDUSTRY
Viewing to French Services 1996
0.3% Météo
2.2% RDS
3.9% Famille
Viewing to French Services 2005-6
1.5% RDI
1.7% Super Écran
0.4% MusiquePlus
0.9% TV5
10.8% TQS
43.4% TVA
1.7% VRAK
0.2% TVOF
0.8% TV5
1.8% Télétoon
4.6% Série Plus
1.6% RDI
2.2% RDS
0.5% Musique Plus
0.5% MusiMax
0.7% Météo
0.8% Historia
0.3% Évasion
1.7% Z
4.4% Super Écran
34.0% TVA
4.6% Canal Vie
2.0% RQ
1.8% LCN
3.0% Canal D
0.6% ARTV
2.6% TQ
27.4% SRC
15.7% SRC
15.5% TQS
(Source: BBM, Nielsen)
THE NEW-MEDIA CONSUMER: PLUGGED IN AND ONLINE
Canadians are among the world's leaders in adopting new media technology. Since 2003, the percentage
of Canadians who subscribe to digital television services has climbed steadily, from 36% to 55%.
Canadians are also getting online at a rapid pace. Among G8 countries, Canada has the highest
broadband subscription rates, with 60% of households plugged in to high-speed internet.
Percentage of Canadian Households with Internet Subscription
80%
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Dial Up
High Speed
2003
2005
2004
2006
Total
(Source: CRTC)
Younger Canadians (18-24) are adopting and/or migrating to online services for content that was
previously provided by broadcasters. That age group vastly outpaces even the next demographic
segment (25-34) in these activities.
CANADIAN ASSOCIATION OF BROADCASTERS
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BROADCASTING 2007: REPORT ON THE INDUSTRY
Online Audio and Video Activities of Canadian Adults Surveyed by Age
80%
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Download /
Listen to
music
Listen to
radio
Watch videos
18 to 24
35 to 44
55 to 64
25 to 34
45 to 54
65+
Watch TV
on the
Internet
Download
movies
Download
TV programs
(Source: CRTC)
AD SPENDING: THE INTERNET IS BOOMING, WHILE TRADITIONAL
MEDIA REMAIN STEADY
The growth of spending on internet advertising has increased dramatically versus growth for television,
and radio. Internet advertising revenues are increasing rapidly in Canada and in other countries around
the world, including the UK and the US.
In Canada, internet ad revenues increased from $176 million in 2002 to $1.0 billion in 2006, based on
a compound annual growth rate (CAGR) of 55%. By comparison, television ad revenues have increased
over the same period by 5.7%, while radio has increased by 6.5%. The CAGR for the entire ad sector
was 6.3% over this time period.
Growth in Ad Revenues – 5 Year CAGR
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1%
Canada
Television
Radio
Total Ad Market
(Source: Television Bureau of Canada)
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CANADIAN ASSOCIATION OF BROADCASTERS
US
UK
BROADCASTING 2007: REPORT ON THE INDUSTRY
Internet Ad Revenues – in millions of $/£
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2002
2003
2004
2005
2006
Canada
UK
US
(Source: Television Bureau of Canada)
Advertising expenditures per capita are significantly lower in Canada than in other comparable countries.
Of comparable countries in 2006 (Canada, the United States and the United Kingdom), Canada had
the lowest advertising expenditures on television, major media (including television, radio, magazines,
newspapers and out-of-home) and all ad-supported media combined.
Lower advertising expenditures per capita in Canada reflects at least in part the geographic proximity
to the US, and the resulting impact of advertising spilling across the border on US media.
Advertising Expenditures Per Capita, $ Canadian, 2006
$1,000
$800
$600
$400
$200
0
Canada
UK
Radio
Major Media
Television
All Media
US
(Source: Television Bureau of Canada)
CANADIAN ASSOCIATION OF BROADCASTERS
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3
COMPARATIVE ECONOMIC
PERFORMANCE
On the whole, Canada’s private broadcasters have demonstrated moderate financial growth over the past
five years. While the overall picture is positive, conventional television shows some signs of weakness,
with some other industry sectors experiencing stronger growth.
Over the last five years:
•
•
•
•
•
•
Total television revenues increased at a Compound Annual Growth Rate (CAGR) of 6.2%,
compared to 9.1% for BDUs
Private conventional television ad revenues increased at a CAGR of just 3.5% with
profitability falling to 4.1%
Conventional TV revenues have increased at a CAGR of 3.8%.
Specialty revenues increased at a CAGR of 10.1%
Pay revenues increased at a CAGR of 9.7%
Radio ad revenues increased at a CAGR of 6.5%
PERCENT OF GDP
Broadcasting industry revenues as a whole increased slightly as a percentage of GDP over the period
2002 to 2006. Radio and television broadcasting revenues as a percentage of GDP remained relatively
stable, at 0.10% and 0.35% respectively.
Percent of GDP
0.55%
0.50%
0.45%
0.40%
0.35%
0.30%
0.25%
0.20%
0.15%
0.10%
0.05%
0.00%
2002
Radio
Television
BDU
(Source: Statistics Canada, CRTC)
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CANADIAN ASSOCIATION OF BROADCASTERS
2003
2004
2005
2006
BROADCASTING 2007: REPORT ON THE INDUSTRY
TOTAL TELEVISION REVENUES
Television revenues in Canada have grown over the past five years. Total television revenues increased
from almost $4 billion in 2001/02 to slightly over $5 billion in 2005/06, based on a compound annual
growth rate (CAGR) of 6.2%.
Private Conventional Television – in millions of $
$2,500
$2,000
$1,500
$1,000
$500
$
2001/02
2002/03
2003/04
2004/05
2005/06
Total Revenues
Ad Revenues
PBIT
(Source: CRTC)
Total Specialty – in millions of $
$2,250
$2,000
$1,750
$1,500
$1,250
$1,000
$750
$500
$250
0
2001/02
2002/03
2003/04
Total Revenues
Ad Revenues
Sub Revenues
PBIT
2004/05
2005/06
(Source: Television Bureau of Canada)
CANADIAN ASSOCIATION OF BROADCASTERS
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BROADCASTING 2007: REPORT ON THE INDUSTRY
PRIVATE RADIO REVENUES
Private commercial radio experienced strong and relatively steady growth over the period 2001/02
to 2005/06.
Total revenues increased from slightly over $1.1 billion to over $1.4 billion, based on a CAGR of 6.4%.
Private Radio – in millions of $
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$
2001/02
2002/03
2003/04
2004/05
2005/06
Total Revenues
Ad Revenues
PBIT
(Source: CRTC)
CANADIAN BROADCASTER GROWTH RELATIVE
TO U.S. NEW MEDIA PLAYERS
While Canadian broadcasters have seen revenues grow over the past five years, their rate of growth is
substantially less than that of the major US new media players available in Canada.
100%
89.0%
80%
60%
36.76%
40%
20%
6.2%
6.5%
Television
Radio
10.1%
0%
Specialty
and Pay
Canadian Broadcasters
US New Media
(Source: CRTC. Yahoo and Google Annual Reports)
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CANADIAN ASSOCIATION OF BROADCASTERS
Yahoo
Google
BROADCASTING 2007: REPORT ON THE INDUSTRY
SECTION
4
CONTENT BY CANADIANS,
FOR CANADIANS
Canada’s private broadcasters make an important contribution to both the production and exhibition
of Canadian television programming and music.
Canadian private conventional, pay and specialty television broadcasters make substantial investments
in Canadian programming, with expenditures on eligible Canadian programming totalling almost
$1.5 billion in 2005/06.
Canadian programming expenditures, the acquisition of independent productions, licence fee
commitments to CTF-supported projects and copyright payments have all increased at a faster rate
than the growth in broadcaster revenues.
TELEVISION/SPECIALTY AND PAY PROGRAMMING EXPENDITURES
Expenditures by private conventional television increased from $540 million to $641 million,
while expenditures by pay and specialty services increased from $632 million to $915 million.
Expenditures on Canadians Programming – in millions of $
1800
1600
1400
1200
1000
800
600
400
200
0
2001/02
2002/03
2003/04
2004/05
2005/06
Priv Conv
Pay & Spec
Total
(Source: CRTC)
CANADIAN ASSOCIATION OF BROADCASTERS
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BROADCASTING 2007: REPORT ON THE INDUSTRY
INVESTING IN CANADIAN PROGRAMMING
Canadian private television broadcasters make substantial expenditures on programming in a number of
different genres. Almost half a billion dollars are spent on news annually, with approximately a quarter of a
billion dollars each year spent on Canadian drama and comedy, other information programming and sports.
Canadian Program Expenditures by Genre, 2005/06 – in millions of $
Private
OTA
News
English
Specialty
and Pay
French
Specialty
and Pay
Ethnic
Specialty
and Pay
Total
$328.1
$104.6
$42.5
$2.2
$477.4
$66.3
$167.8
$40.9
$3.0
$277.9
$9.3
$180.8
$40.0
$0.4
$230.3
Drama & Comedy
$73.9
$138.3
$30.3
$1.4
$243.8
Music & Variety
$35.0
$29.7
$5.0
$6.5
$76.2
Human Interest
$101.6
$49.0
$9.3
$2.8
$162.1
$3.8
$26.6
$6.0
$0.2
$36.6
$623.7
$700.3
$173.9
$16.3
$1514.0
Other Info
Sports
Other
Total
(Source: CRTC)
In total, Canada's private broadcasters spent more than $1.5 Billion on Canadian programming last year.
PRIVATE BROADCASTERS – THE PRIME SUPPORTER
OF CANADIAN PRODUCTION
Private conventional, pay and specialty television broadcasters make substantial commitments through
licence fees to help fund independently produced Canadian television programming supported by the
Canadian Television Fund.
These fees increased from $294 million in 2001/02 to $392 million in 2005/06. They account for an
ever-larger portion of the total production budget, increasing from 16% in 2001/02 to 22% in 2005/06.
Private Broadcaster Licence Fees – in millions of $
500
450
400
350
300
250
200
150
100
50
0
2001/02
2002/03
2003/04
2004/05
Private Licence Fees
(Source: Canadian Film and Television Production Association)
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CANADIAN ASSOCIATION OF BROADCASTERS
2005/06
BROADCASTING 2007: REPORT ON THE INDUSTRY
Meanwhile, Canadian production companies now account for only 2% of Canadian television production
budgets, compared to 6% in 2000/01.
CANADIAN BROADCASTERS – OVERWHELMINGLY, CANADA’S CHOICE
Notwithstanding the increasing availability of foreign programming services on Canadian distributors,
Canadian television services have increased their market share. The share of total viewing attracted by
Canadian television programming services increased from 75.2% in 2002/03 to 78.7% in 2005/06.
(Note: This figure includes CBC and SRC’s conventional and specialty services. The conventional English
and French services account for 7.7% of this figure in 2005-2006.)
Canadian Television Services, Share of 2+ Viewing
80%
79%
78%
77%
76%
75%
74%
73%
72%
71%
70%
2002/03
2003/04
2004/05
2005/06
Canadian TV
(Source: BBM, Nielsen Media, CRTC)
Licensed Canadian over-the-air AM and FM radio services are hugely popular with listeners. They
consistently account for over 90% of all radio listening in Canada, with Internet, foreign over-the-air,
pay and satellite radio services accounting for the remainder.
(Note: This figure includes CBC and SRC’s radio services. They accounted for 11.6% of this figure
in 2005-2006.)
Canadian Radio Services, Share of 12+ Listening
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2002/03
2003/04
2004/05
2005/06
Canadian Radio
(Source: BBM, CRTC)
CANADIAN ASSOCIATION OF BROADCASTERS
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BROADCASTING 2007: REPORT ON THE INDUSTRY
CANADIAN RADIO SUPPORTS CANADIAN TALENT
Canadian radio broadcasters make a substantial contribution to the development of Canadian musical talent
by providing extensive on-air exposure for Canadian artists and through Canadian talent development
expenditures and copyright payments, totaling almost $24 million and $78 million respectively in 2005/06.
These expenditures have increased at a much greater rate than the growth in radio revenues.
Contribution to Canadian Talent Development – in millions of $
30
25
23.9
21.0
20
18.1
17.1
15
13.1
10
5
0
2001/02
2002/03
2003/04
2004/05
2005/06
CTD
(Source: CRTC)
CANADIAN CONTENT DEVELOPMENT
Private radio plays a major role in the success of Canadian music artists, not only by driving CD sales and
providing on-air promotion of tours and musical events, but more importantly by providing name and song
recognition to artists who often have little to no promotional resources.
In the CRTC’s 2006 review of the Commercial Radio Policy, a new approach was established by the
Commission, including the provision of funds for spoken word talent. As a result, the nomenclature of this
funding regime was changed from Canadian Talent Development (CTD) to Canadian Content Development
(CCD).
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CANADIAN ASSOCIATION OF BROADCASTERS
BROADCASTING 2007: REPORT ON THE INDUSTRY
Under the new approach to CCD, the Commission also proposed a basic contribution system based on a
radio station’s revenues, rather than on the size of the market in which it operates. By the Commission’s
own estimates, this change to the CCD system would result in an increase in funding of $3.5 million to
$4 million per year.
In addition to its yearly contributions, private radio licensees make direct contributions to CCD initiatives
when awarded a new licence, renewing an existing license, or when transferring control or ownership of
a radio licence.
RADIO STARMAKER FUND:
In 2000, the CAB helped create a music marketing and promotion fund aimed at supporting co-operative
activities by broadcasters and the music industry.
With the endorsement of the CRTC, the Radio Starmaker Fund and Fonds RadioStar were created to
achieve the industrial goal of developing a strong supply of commercially playable music. Radio Starmaker
Fund and Fonds RadioStar are artist-focused initiatives providing marketing and promotion assistance to
artists, as opposed to other initiatives that are solely focused on sound recording.
The Fund has been a demonstrable success in breaking the next wave of Canadian talent. In 2005-2006,
83% of the artists funded received significant charted airplay in Canada.
The Radio Starmaker Fund has injected over $15 million in new marketing and promotional monies to
help launch the careers of emerging Canadian artists.
The Radio Starmaker Fund and its French-language equivalent, Fonds RadioStar, as well as FACTOR,
MUSICACTION and Canadian Heritage’s Canadian Music Fund are key to the growth of Canadian talent.
CELEBRATING NEW TALENT – THE CANADIAN RADIO MUSIC AWARDS
The Canadian Radio Music Awards (CRMAs) honour artists in the early stages of their careers. Sponsored
by the CAB and Canada’s private broadcasters, the CRMAs are awarded each year as part of Canadian
Music Week, and help celebrate the success of new Canadian talent and the cooperation between the
music industry and private radio broadcasters. CRMA nominees include artists who have hit the Canadian
charts for the first time and who have achieved top airplay in different formats based on radio “spins” in
the previous year. Votes cast by music directors, program directors and on-air personalities determine
the winners.
Avril Lavigne, Sam Roberts, Arcade Fire and Michael Bublé are just some of the artists who have
received early recognition from the industry, and who have gone on to become Canadian and
international superstars.
Radio stations donate over $300,000 annually in airtime to promote the CRMAs.
CANADIAN ASSOCIATION OF BROADCASTERS
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SECTION
5
COPYRIGHT –
A GROWING CONCERN
Copyright payments are one of the key costs associated with broadcasting, especially as it pertains
to radio broadcasters. Copyright tariffs are set by the Copyright Board of Canada, and are intended to
reflect the value of music. In recent years, however, the number of copyright payments has increased,
with broadcasters often being charged several times for simply playing recorded content over the air.
Yet, the rates for these tariffs are settled on in isolation from one another, creating a situation where multiple overlapping copyright tariffs have combined to drastically increase the basic cost of doing business.
Each increase in payments leaves broadcasters with fewer resources for technology, innovation, existing
and new jobs, and community-oriented initiatives.
Annual tariff payments made by CAB members were almost $150 million in 2006.
Copyright Fees Paid by Private Radio in Canada
220
200
49.0
180
160
17.5
$ Millions
140
120
60.0
100
80
8.3
7.7
6.2
5.9
13.1
13.6
60
3.6
40
1.1
4.5
5.0
6.2
7.7
8.1
15.0
15.9
20
0
(Source: CAB)
16
27.9
28.3
29.4
30.1
31.5
32.7
42.2
43.2
46.5
1997
1998
1999
2000
2001
2002
2003
2004
2005
SOCAN
CSI
NRCC
AVLA/SOPROQ
CANADIAN ASSOCIATION OF BROADCASTERS
49.7
76.9
2006 Proposed
tariffs
BROADCASTING 2007: REPORT ON THE INDUSTRY
For many years, the SOCAN tariff closely tracked the rate of growth of radio revenues. However,
with new tariffs and new rates, the rate of growth for copyright fees now far exceeds the rate of
growth for radio revenues.
Rate of growth of copyright payments versus rate of growth of private radio revenues.
Growth of private radio revenues, SOCAN fees, and total copyright fees,
1995-2005, Index basis (1995=100)
INDEX (1995=100)
350
300
250
200
150
100
1995
1996
1997
1998
1999
2000
2001
2002
Private Radio Revenues
Total Copyright Fees (old rates)
SOCAN Fees (old rates)
Total Copyright Fees (new rates)
2003
2004
2005P
(Source: CAB Radio Review Submission, 2005)
Growth of private radio total operating expenses, and total copyright fees,
1995-2005, Index basis (1995=100)
350
300
250
200
150
100
1995
1996 1997
1998
1999
2000
2001 2002
2003
2004 2005P
Private Radio Operating Expenses
Total Copyright Fees (old rates)
Total Copyright Fees (new rates)
(Source: CAB Radio Review Submission, 2005)
The spiralling copyright burden isn’t exclusive to radio. Private conventional, pay and specialty television
broadcasters also make substantial copyright payments to the various rights collectives to compensate
artists for the use of their works.
Copyright payments by these broadcasters increased from $56.6 million in 2002 to $72.5 million in 2005.
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BROADCASTING 2007: REPORT ON THE INDUSTRY
SECTION
6
MAKING A DIFFERENCE –
BROADCASTERS’ COMMUNITY
CONTRIBUTIONS
ENSURING DIVERSITY ON THE AIR AND BEHIND THE SCENES
Canada is a culturally diverse nation, comprised of a multitude of ethnocultural, regional and Aboriginal
groups, as well as persons with disabilities. Private broadcasters recognize this diversity, and strive to
ensure that our airwaves reflect all Canadians through the development and implementation of initiatives
that improve and advance diversity in the industry.
Greater diversity in private broadcasting means a greater reflection of Canada’s highly diverse population,
enabling audiences to see and hear themselves through programming and community-based initiatives.
In this regard, private broadcasters continue to play a major role in leading the development of many
diversity initiatives, including scholarship and mentorship programs which ensure that a new and diverse
generation of Canadians has the ability to participate in the broadcasting sector.
Broadcasters have been amongst the most prominent sponsors and participants in industry events
targeted towards addressing diversity issues. These include the annual Innoversity Summit in Toronto, and
Télédiversité in Montreal. Both of these events offer a marketplace of fresh and innovative ideas on how
to proactively address the issues around representing Canada’s diversity through the media, and act as
an excellent networking opportunity for those who wish to work in the broadcasting and media sector.
CAB DIVERSITY INITIATIVES – ENCOURAGING AND
CELEBRATING DIVERSITY
The CAB has also overseen a number of initiatives to encourage and celebrate diversity in the
broadcasting sector, including:
•
•
•
•
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The Best Practices and Industry Initiatives recommended by the Task Force for Cultural Diversity on
Television, which were unanimously endorsed by the CAB's Television and Specialty and Pay Boards
in May 2005.
Four new categories of CAB Gold Ribbon Awards for excellence in Canadian broadcasting have been
created to encourage, recognize and celebrate the diversity of Canada and applaud those private
broadcasters who embrace diversity in their delivery of programming to Canadians.
The creation and distribution of information booklets on Employment Opportunities in the Canadian
Broadcasting and Affiliated Production Sector and Recommended Guidelines on Language and
Terminology – Persons with Disabilities: A Manual for News Professionals (in partnership with Radio
and Television News Directors Association of Canada).
The CAB’s Diversity in Broadcasting website (www.cab-acr.ca/diversityinbroadcasting), which
ensures that the initiatives undertaken by broadcasters across the country to reflect Canada’s diversity
are captured in a single resource-filled web portal.
CANADIAN ASSOCIATION OF BROADCASTERS
BROADCASTING 2007: REPORT ON THE INDUSTRY
An important aspect of the CAB’s work on diversity is the advancement and growth of initiatives in relation
to persons with disabilities. The CAB, working with the Joint Societal Issues Committee, produced its final
report on the Presence, Portrayal and Participation of Persons with Disabilities in Television Programming
in June of 2006.
The CRTC has saluted the CAB’s leadership on this issue, noting that the initiatives recommended in the
Report were “tangible and concrete”, and had the potential to contribute significantly to the attainment
of several objectives of the Broadcasting Act.
One of the key initiatives undertaken by Canada’s private broadcasters was a public service campaign
entitled “Open Your Mind”. The PSA was created to help influence a positive shift in public attitudes
about persons with disabilities and was aired throughout 2007. The spot featured four individuals from
the disability community from various occupational backgrounds, and strongly articulated the
employability of persons with disabilities in a variety of fields.
Working from the same concept, the Aboriginal Peoples Television Network (APTN) created its own version
of the PSA showing various Aboriginal persons with disabilities. The PSA aired on APTN and included
versions in English, French, Inuktitut, Cree and Ojibway.
“OPEN YOUR MIND" – THE CAB'S PSA CAMPAIGN
ON PERSONS WITH DISABILITIES.
(Source: CHUM Television)
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BROADCASTING 2007: REPORT ON THE INDUSTRY
BROADCASTERS – LEADERS IN COMMUNITIES
Private broadcasters are proud of the role they play in helping to shape our communities and our country.
Their commitment to Canadians is two-fold; on-air, they strive to deliver the best in news, information
and entertainment programming, while off the air, their commitment continues, through charitable donations and other public service assistance in communities around the country.
Private broadcasters make significant contributions in their communities through their constant
involvement with local groups and organizations. This assistance comes in many forms, including the
donation of airtime for telethons or radiothons, the airing of public service announcements in support
of charitable organizations, or the volunteering of time and energy in support of local groups.
Through these initiatives, many community groups are able to catalyze or stimulate growth, and to convey
their message using the full power of the broadcast medium.
The CAB maintains a listing of civic leadership and charitable initiatives, and encourages its members to
provide details on these undertakings in their community. Further information on examples of community
leadership is found on the CAB website at www.cab-acr.ca/leadership.
Below is a small sampling of recent projects and activities undertaken by broadcasters :
Standard Cares – Standard Broadcasting’s numerous radiothons across Canada generate significant
funds for children's hospitals. Since 1985, Standard Radio listeners have raised over $17.5 million for the
Hospital for Sick Children in Toronto. These radio fundraisers are now held at Standard stations across
the country, raising much-needed funding for children’s hospitals in their community. In addition to
generating considerable funding and public awareness for charitable causes, these activities enhance
listener involvement and loyalty.
CanWest Raise-a-Reader – Since its inception in 2002, the CanWest Raise-a-Reader program has raised
$7.45 million for local literacy beneficiaries in participating communities. This event is the culmination of a
month-long media campaign aimed at raising awareness and interest in the importance of essential skills
like reading and writing in Canadian society.
CTV Atlantic’s Christmas Daddies Telethon – A telethon to raise funds provide less fortunate children
with gifts and clothing over the holidays, Christmas Daddies was one of the first such events in Canada.
Launched in 1964 and held each year on the first Sunday in December, the telethon is a Maritime tradition,
having raised more the $24 million.
KOOL FM Poster Boy Campaign – The 12th annual KOOL FM Poster Boy Campaign in support of the
Grand River Regional Cancer Centre was an unparalleled success raising $185,251 in April 2006. The
event featured KOOL FM morning personality Brian Bourke living on a billboard for seven days to raise
awareness and generate donations to the centre. The successful event saw significant donations from
individuals, clubs and businesses in the community. In its 12 years of existence, the KOOL FM Poster
Boy Campaign has raised over $1.7 Million for local charities. The station was honoured to receive an
Ontario Association of Broadcasters Award for Community Service in 2006 for this campaign.
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CANADIAN ASSOCIATION OF BROADCASTERS
BROADCASTING 2007: REPORT ON THE INDUSTRY
Pitch In Kingston Day – 98.3 FLY FM, 1380 CKLC, and 103.7 BOB FM sponsored the 5th Annual Pitch In
Kingston Day in April 2006. Kingston residents were encouraged to organize groups to clean up a corner
of Kingston as a part of this initiative. Station employees took part and, together with participants from
over 100 local businesses, cleaned up eight blocks of the downtown Kingston area. In the previous year,
14,600 volunteers cleaned almost 15 tonnes of litter on Pitch-In day.
Harvest Sharing Food Drive – In 2006, 104.9 JR fm and 103.7 BOB FM developed an innovative project
for increasing donations to the local food bank in Brockville, Ontario: They parked a transport trailer in
front of their studios and challenged the community to fill it with food donations. 2006 was the biggest
year yet, bringing in 2400 bags of food up from the previous year’s 1700 bags. As a result, the transport
trailer was so heavy it sank into the ground and a tow truck was required to pull it out.
C-FAX 1070 Community Awards – This annual event, supported by A-Channel and 107.3 KOOL FM,
recognizes the unsung heroes in the community. People in the Greater Victoria region are nominated by
fellow members of the community in categories including: Citizen of the Year, Community Leader of the
Year, Business Leader of the Year, Arts Leader of the Year, Sports Leader of the Year, and Youth of the
Year. There are two additional awards entitled the “Teamwork Award” and “911 Award”. The runners-up
and winners of each category are honoured at a special luncheon. Along with celebrating these individuals, C-FAX 1070 also awards numerous public service announcement grants for deserving community
groups.
CJLS's On-Air Appeal Boosts Salvation Army's Red Kettle Christmas Campaign – A series of on-air
appeals by CJLS in Yarmouth, Nova Scotia, helped boost the Salvation Army's annual "Red Kettle" campaign in the community. Three remote broadcasts by the station throughout its listening region and additional daily promos helped push the campaign's take to over $47,000, a substantial increase over past
years. Proceeds from the annual campaign go towards helping needy families over the holiday season.
RockDétente Radiothon for Le club des petits déjeuners – For the past seven years, Astral’s
RockDétente stations in Quebec have hosted le Grand Radiodon RockDétente au profit du Club des
petits déjeuners du Québec, an annual Radiothon which raises funds to help provide children with a
nutritious breakfast every day before class. Last year’s edition of the Radiothon raised over $2 million.
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CONCLUSION
Canadians have never had more programming choice than they do now.
The global media landscape has undergone a dramatic transformation, and Canadians are among the
world’s leaders in embracing these new technologies. Canadian broadcasters are leaders in new media,
and have demonstrated the ingenuity necessary to appeal to the changing demands of the audience.
Canada’s private broadcasters continue to be an essential part of this media landscape, providing an
invaluable source of news, information and entertainment programming to all Canadians, in markets both
large and small across the country.
In addition to their core broadcasting enterprises, broadcasters are moving boldly into the new digital
frontier, offering a wide variety of content online and on a variety of mobile devices. Through their own
dedicated broadband sites, they are offering interactive programming, news and marketing opportunities
for Canadian businesses.
Private broadcasters have firmly established their dedication to providing Canadians with the quality
content that they have come to expect through their demonstrable commitment to homegrown music
and programming.
Radio broadcasters provide support to musical talent through airplay, promotion, and contributions
to Canadian Content Development at a level that is unseen anywhere else in the world.
Television broadcasters have continued to increase their programming expenditures while increasing
their share of the budgets for Canadian drama productions.
Private broadcasters contribute billions of dollars to our economy, and employ tens of thousands of
Canadians. Moreover, their extensive investments in communities act as a catalyst to Canada’s charitable
organizations through the generation of public awareness that is crucial to their cause.
A brief look at the data provided in Broadcasting 2007: Report on the Industry makes it abundantly clear
that private broadcasters are committed to playing a key role in Canada’s cultural, social and economic
future, and that they are proud of the role they play in achieving the cultural policy objectives as set out
in the Broadcasting Act.
What is equally clear is the growth of unregulated advertising, and the comparatively weaker advertising
market in Canada as compared to its counterparts in the U.K. and the U.S..
Consequently, every reasonable opportunity to strengthen the economic model to support Canadian
broadcasting must be seriously considered.
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CANADIAN ASSOCIATION OF BROADCASTERS