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 1 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 33 BROADCASTING 2007: REPORT ON THE INDUSTRY SECTION 2 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 55 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) 6 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 77 BROADCASTING 2007: REPORT ON THE INDUSTRY SECTION 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) 8 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 99 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) 10 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 11 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) 12 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 13 13 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). 14 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 15 15 BROADCASTING 2007: REPORT ON THE INDUSTRY 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. CANADIAN ASSOCIATION OF BROADCASTERS 17 17 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: • • • • 18 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) CANADIAN ASSOCIATION OF BROADCASTERS 19 19 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. 20 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. CANADIAN ASSOCIATION OF BROADCASTERS 21 21 BROADCASTING 2007: REPORT ON THE INDUSTRY SECTION 7 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. 22 CANADIAN ASSOCIATION OF BROADCASTERS