Broadcasting & Media

Communications Department BCIT

Environmental Research Report By: Danielle Yallouz

Site Centre

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E xecutive Summary The Television and Radio Broadcasting Industries in Canada are in a state of evolution. Advancements in technology are causing a major shift in practices within the industry, affecting not only companies participating and employees working in the industry, but also who are studying to become a part of it. This report analyses both industries using in-depth situation analysis. It also highlights the stages of product lifestyle, the industry’s potential for growth, and external factors that are currently affecting the industry. Several major players who control the majority of the market share dominate both the TV and radio broadcasting industry in Canada. This report investigates these organizations’ responses to the expected transition and how they are dealing and adapting with technological advancements. Jobs within the field of television broadcasting and radio are also changing. Companies are now requiring their employees have new, more modern skills sets, such as digital publishing skills. Traditional jobs are being eliminated all together as the online space begins to take over traditional forms of media. Furthermore, those who have graduated with a broadcasting or journalism degree or diploma are working in non-traditional jobs to the field, the majority business related. There are multiple ways for broadcasters to stay relevant. These include embracing non-linear distribution channels, exploring the world of website design and coding, partnering with retail brands who are creating their own content, discovering the concept of television and radio on the go, being part of the podcast generation, and showcasing their personal brand through business education. The top universities are starting to discover how to educate their broadcasting and radio students in order to keep up with the digital media trend. Ryerson, Carleton, UBC and the University of Guelph are just a few of the schools leading the way. This report will outline exactly what they are doing to stay current. It is important to note that the Canadian government is also supporting the television and radio broadcasting industry by offering services in support of Canadian broadcasters. Lastly, a summary of Canadian scholarship and bursaries available for broadcasting students concludes the report.

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Television Broadcasting in Canada

Situation Analysis Industry Definition This industry is made up of facilities and studios that program and distributes audio-visual content, which is then delivered to the public via over-the-air-transmission. It is important to note that this industry does not include operators that only distribute content online. However, it does include operators that are making the transition from traditional broadcasting to online mediums.1

Category/Industry/Market Analysis Aggregate Market F actors 1

a. Establisments: 279 (-) b. Enterprises: 106 (-) c. Employment: 10,741 (-) d. Annual Revenue 2016/2017: $3137.1 million (-) e. Industry Value Added (IVA): 1055.5 million (-) f. Annual Growth Rate: -4.0%

*See Changes in Appendix A Key E xternal Drivers 1

1. Total Advertising Expenditure 2. Number of Fixed Broadband Connections 3. Corporate Profit 4. Per Capita Disposable Income

Stage in Product L ife Cycle 1 The Broadcast Industry in Canada is currently in decline. It is predicted that the Industry’s added value will diminish over the next 10 years at an annulized rate of 4.4%. In contrast, Canada’s GDP is expected to grow at an annulized rate of 1.8% during the same time period. Yet, experts have indicated that there is still hope for this decling industry. The media landscape is drastically changing due to a rapid shift in technology. This shift is causing a rise in audience consumption through online streaming channels and mobile devices, disrupting traditional viewing practices.

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Advertising revenue is now being captured by these new online media channels. So, the industry is expected to restructre and embrace these new tehcnologies by using them to enhance the broadcasting space. By changing their business models, operators are hoping to recapture viewers and advertisers. Therefore, many experts are stating that the indsutry is more accurately in transtion rather than in decline. 1 Sales Cyclicality /Seasonality This industry is highly cyclical. Seasonal fluctuations also disturb broadcasting revenue and are common within the industry. 2

Distribution Channels 1

a. Key buying industries-generating demand i. Advertising Agencies in Canada

ii. Consumers in Canada

b. Key Selling Industries-generating supply i. Movie & Video Distribution in Canada

ii. Movie, Television & Video Production in Canada iii. Video Postproduction Services in Canada

Profits At the end of 2017, profits are expected to equal a loss of 5.8% of revenue totaling $-1.8 billon dollars. Over the last five years, advertisers have decreased investments in traditional television channels. This is due to a shift in media consumption, mainly to online platforms. It is causing advertisers to spend their budget on a diverse assortment of media channels. As a result, television broadcasters have experienced a major decline in revenue. In order to compensate, operators have lowered operating costs by cutting labor and lowering investments in original programming. Unfortunately, this has not done enough to counterbalance the decrease in revenue. 1 1“Television Broadcasting in Canada.”IBISWorld Canada , IBISWorld, 2017, clients1.ibisworld.ca/reports/ca/industry/default.aspx?entid=1261. 2.Canada, Government of Canada Statistics. “Television Broadcasting, 2015.”Government of Canada, Statistics Canada, 5 July 2016, www.statcan.gc.ca/daily-quotidien/160705/dq160705a-eng.htm.

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Porter’s F ive F orces Analysis

Threat of New E ntrants (L OW) The threat of new entrants is LOW, so the barriers to enter the industry are HIGH. This is mainly as a result of high market share concentration within the industry. There are a few big players who dominate the broadcasting space, making it difficult for entrants to access the viewer market as the existing operators have already captured them. Furthermore, capital costs are increasingly high. The growth of external competition, like alternate media including online streaming services, also causes difficulty for new entrants. This industry is also highly regulated, which creates additional hurtles for entrants to enter the industry. 1

Pressure from Substitutes (HIGH) The threat of substitutes in the industry is extremely HIGH. Due to technology developments, there has been major shift in the media landscape over the last five years. Consuming media on mobile devices and online has become extremely popular. This shift has eroded the television medium, which previously commanded the world’s media sector and more importantly served as the main avenue for advertisers. Consumers now have more options to consume content, threatening traditional broadcasting operators. 1

It is interesting to note that over the last five years, total employment is estimated to have decreased at an annualized rate of 4.8% to 10,741 workers. The number of industry enterprises is also estimated to have fallen at an annualized rate of 3.9% to 106.3 This is all due to the threats from substitutes. A study done by Nielsen this year has found that traditional TV viewing by 18-24 year olds has now fallen 41.3% since 2012; over a five-year period, more than 40% of this age group’s traditional TV viewing time has been substituted by other activities or more likely alternative viewing mediums, like online streaming.4

Industry Rivalry (HIGH) Competition in this industry is HIGH exhibiting high market share concentration. In 2017, the top four players in the industry generated 75.3% of the industry’s total revenue, dominating the market.1 3.Bradshaw, James. “Canada's New TV Rules Could Erode Jobs, Funding, Report Warns.” The Globe and Mail, The Globe and Mail, 5 Jan. 2016, www.theglobeandmail.com/report-on-business/canadas-new-tv-rules-could-erode-jobs-funding-report-warns/article28015965/. 4.“The Nielsen Total Audience Report: Q1 2017.” What People Watch, Listen To and Buy, 7 Dec. 2017, www.nielsen.com/us/en/insights/reports/2017/the-nielsen-total-audience-report-q1-2017.html. 5.“Porter's Five Force Analysis for Lifestyle Broadcast Industry.” UKEssays, www.ukessays.com/essays/business/porters-five-force-analysis.php.

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Bargaining Power of Suppliers (L OW)

In this Industry the Power of Suppliers is LOW. There are three main supply industries supporting the Broadcasting Industry in Canada, movie and video distribution in Canada, Movie, and Television & Video Production in Canada and video postproduction services in Canada. Each of these industries has low market share concentration; therefore there is not one company that has a majority of the market share giving broadcasting networks many alternatives to choose from. 1

Bargaining Power of Buyers (HIGH) Bargaining Power is HIGH for buyers in this industry. There is a vast amount of channels and programs for viewers to choose from equating in high internal and external competition within the industry. Furthermore brand loyalty for channels is quite low, whereas loyalty to shows is usually high, giving the viewers even more power. Lastly viewers are price sensitive when it comes to purchasing television packages especially as technology evolves and provides viewers with less expensive viewing options. 5

E nvironmental F actors Demographics The audience in Canada is changing. The Canadian Radio-television and Telecommunications Commission (CRTC) stated that television demographics are now more diverse, containing ethnic and linguistic groups, people with various disabilities and a shifting age group.6 The Canadian population is getting older; causing a shift in content that is targeting an older viewer demographic. Technological The media environment is very obviously evolving at quite high speeds. New technology, including streaming networks, mobile devices- tablets and mobile phones- and cable networks are disrupting the industry by causing it to fragment and erode revenue streams. These new technologies are replacing the traditional television medium, as well as becoming more and more popular. The number of fixed broadband connections, which is negatively correlated with industry revenue because it represents the number of households and businesses that have access to broadband Internet, is expected to reach 14.8 million in 2022.1 6.Government of Canada, Canadian Radio-television and Telecommunications Commission (CRTC). “Offering Cultural Diversity on TV and Radio.” Government of Canada, Canadian Radio-Television and Telecommunications Commission (CRTC), 14 June 2017, www.crtc.gc.ca/eng/info_sht/b308.htm. 7.Watters, Haydn. “Here's What You Think a Pick-and-Pay Model Means for TV's Future.”CBCnews, CBC/Radio Canada, 2 Feb. 2016, www.cbc.ca/news/business/pick-pay-cable-cbc-forum-1.3430193.

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This proves that viewers are starting to adopt mobile devices and streaming services. In response, broadcasters are beginning to restructure their business models to better serve their digital customers and recapture advertising revenue. Operators will become more flexible in their content they offer to consumers. For example, offering a “pick and pay model” where viewers can choose to subscribe to specific channels that they most enjoy watching, without having to buy an entire package.7 Furthermore, the CRTC is contemplating allowing greater access to non-Canadian programming.6 Next, Broadcasters are anticipated to create more interactive ways of consuming television by customizing the viewing experience for audiences and making TV more accessible on multiple platforms. An example of this is allowing viewers to purchase products displayed in commercials with “simply a click of a remote”. 6

Market Response

1. CBC-43.9% Market Share1

a. CBC has focused on expanding its digital and multi-platform offerings and scaling back its traditional television offerings. Through these digital advancements, CBC aims to give their content, which they air first through a traditional broadcast, “a second life on digital platforms”. CBC is working to establish a higher quality OTT video experience for its viewers, set to replace the current CBC player, using the URL “watch.cbc.ca”. CBC also pledges to focus on mobile content delivery. 9

“Embracing our digital shift means rethinking how we produce, format and distribute content. Digital is no longer seen as a separate entity; it is woven into all that we do as we work towards a truly multiplatform experience across our services.” –CBC Annual Report 2015 9

2. Bell Canada- 18.2% Market Share1

a. Bell’s strategy is acquisition, focusing on relevant, high rated content,

sports and international news. They recently acquired “Astral Media”, which was Canada’s largest radio broadcaster with 84 radio stations across eight provinces. They were also a big player in specialty premium television. The company predicts a shift to digital media and because of their involvement in subscription television, expects higher programming costs in the future. Bell is planning to focus on continuing to improve on its popular LTE network, leverage its strong wireless communications and innovate in emerging media platforms. Bell continues to improve and innovate with their online steaming service “CraveTV”, which is currently growing in audience. “CraveTV” has

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introduced a “TV Everywhere” option providing live and on demand television content on mobile devices. 10

“Bell continued to build on our position as Canada’s broadband communications leader in 2016. We are investing in the most advanced networks and service innovations to lead in the marketplace and ensure Canada’s competitiveness in a global digital economy, while delivering consistent dividend growth to you, the shareholders who have invested in Bell’s broadband strategy.” –George A. Cope, President CEO Bell Canada 10

3. Corus Entertainment Inc.-7.6% Market Share1

a. The company has become a major player in the Broadcasting Industry

after the acquisition of Shaw Media in 2016. Going forward, Corus vows to share content across multiple platforms, coordinating digital and traditional coverage of all major events, leveraging TV personalities as well as bundling TV and radio together, thus creating new revenue opportunities. Corus plans to continue investing in “Ad Tech” while strengthening premium brands across not online television and radio but digital and social channels as well. 11

“We are well positioned to continue to build on the significant advances we made this year towards our goal of transforming Corus from a traditional broadcaster, into a future-focused, integrated media and content company.” –Doug Murphy, President & CEO Corus Entertainment Inc. 11

4. Rogers Media Inc.-5.6% Market Share1

a. At the end of 2016, Rogers announced a long-term partnership with

Comcast in order to improve its video experience by introducing the X1 an all IP-based video platform. This scalable IPTV is expected to be fully functional in early 2018. With this exciting innovation, viewers will benefit from future innovations in voice, data, video, and smart home monitoring devices. Rogers Media has also made a commitment to shift from print to digital to satisfy changing consumer demands. 12

*For breakdown of financial performance of all four major players see Appendix B-E. 9.“Financial Reports • CBC/Radio-Canada.” Financial Reports, www.cbc.radio-canada.ca/en/reporting-to-canadians/reports/financial-reports/. 10.“Financial Reporting.” Bell Canada Enterprises :: Annual Report » BCE, www.bce.ca/investors/financialperformance/annual. 11.“Financial Reports.” Corus Entertainment, www.corusent.com/investor-relations/financial-reports/. 12.“Rogers Investor Relations.” Rogers Investor Relations, investors.rogers.com/.

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Radio Broadcasting in Canada Situation Analysis Industry Definition This industry consists of broadcasting stations, networks and syndicates that transmit programming through AM, FM and satellite radio channels. The industry does not include operators that broadcast content exclusively through the Internet.13

Category/Industry/Market Analysis Aggregate Market F actors 13

g. Establisments: 1,163 (- ) h. Enterprises: 595 (- ) i. Employment: 10,287 (- ) j. Annual Revenue 2016/2017: 1,711.4 (- ) k. Industry Value Added (IVA): 1,093.7 (- ) l. Annual Growth Rate (11-16): 0.0%

Key E xternal Drivers 13

1. Per Capita Disposable Income 2. Total Advertising Expenditure 3. Number of Fixed Broadband Connections 4. Totally Vehicle Kilometres

Stage in Product L ife Cycle The Radio Broadcasting Industry in Canada is currently mature. The industry’s added value during the 10 years to 2021, is expected to increase at 0.8% annualized rate. At the same time, the Canadian GDP is expected to grow at annulized rate of 1.8%. Although, the industry has seen stabaliztion over the last five years, there is an increasing number of external and internal competition from other forms of broadcast media threatning the industry. 13

Sales Cyclicality /Seasonality This industry is cyclical. Seasonal fluctuations also disturb the radio broadcasting revenue and are common within the industry. 13“Radio Broadcasting in Canada.”IBISWorld Canada , IBISWorld, 2017, clients1.ibisworld.ca/reports/ca/industry/default.aspx?entid=1261.

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Distribution Channels13 c. Key buying industries-generating demand

i. Consumers in Canada

d. Key Selling Industries-generating supply i. Advertising Agencies in Canada

ii. Data Processing & Hosting Services in Canada iii. Music Publishing in Canada iv. Wired Telecommunications Carriers in Canada

Profits In 2016, the average profit margin equaled a loss of 18.9% of revenue totaling $-323.5 million dollars. Over the past five years advertising expenditure has steadily increased, aiding the industry to maintain its average profit margin notwithstanding the decline in popularity of the radio. Overall, the industry is expected to be profitable over the next five years, as radio broadcasters continue to challenge competition like Internet radio and mobile platforms. The major players in the industry, for example Bell Canada or Rogers Communications, are able to achieve high profit margins up to 40%. 13

Porter’s F ive F orces Analysis Threat of New E ntrants (L OW) ThethreatofnewentrantsisLOW.Therefore,thebarrierstoentryinthisindustryarehighandsteady.Thisismainlyasaresultofthemanyregulationsthatmustbefollowedwithintheindustry.Forexample,theCanadianRadio-televisionandTelecommunicationsCommission(CRTC)’sMusic,Artist,PerformanceandLyricssystemhaveimplementedafederalquotamandatingthatapercentageofradiobroadcaster’smusicalselectionmustbewrittenby,recorded,orperformedbyaCanadian.Lastly,highconsumerloyaltycanactasanadditionalbarriertoentertheindustry.13Pressure from Substitutes (HIGH) ExternalcompetitionintheindustryisquiteHIGHandcomesinmanydifferentforms,includingaudioandvisualmedia.Forexample,theincreasedpopularityofmobilemusicdevicesandstreamingInternetradioisathreattotheindustry.Inordertocontesttheemergenceofnewlisteningtechnology,broadcastershavebeguntostreamtheirprogramsonlineandofferfreemobileapplicationsinordertocaptureayoungeraudience.13Industry Rivalry (ME DIUM) Competition in this industry is MEDIUM, exhibiting medium market share concentration. In 2017, the top four players in the industry generated 57.0% of the industry’s total revenue. 13 Because these companies own multiple stations and control the majority of the market share, they are able to charge a premium-

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advertising rate to companies trying to reach a wide audience across multiple locations. This makes it challenging for smaller operators to cover costs because initially they do not have a large enough audience to capture advertisers willing to pay premium. Bargaining Power of Suppliers (Moderate) Depending on the size of the radio broadcasting station, the industry has a varied bargaining power for suppliers. However, because the nature of the industry is changing and a growing number of larger radio operators are buying smaller companies, we can conclude that suppliers are experiencing an increasing amount of challenges when it comes to capturing businesses within the industry. Bargaining Power of Buyers (HIGH) Listeners have many options when it comes to choosing radio stations. The industry is fairly concentrated and competitive; giving listeners the power to choose which operator satisfies their audio needs the best. There is also a high availability of substitutes, giving the listener even more power to the buyer. E nvironmental F actors Technological This industry is being disrupted by many different shifts in technology. First, the quality and definition of radio has improved significantly. Low quality, static transmission is increasingly rare. This is because many stations have transitioned from AM to FM due to FM’s wider transmission spectrum that enables a clearer and crisper broadcasting quality. Most radio stations have also adopted “Program Associated Data” (PAD), which displays channel information, including a specific song name and artist that is playing, right on in-car-radio displays. Online streaming has also become extremely popular. Many stations have expanded broadcasting content onto the Internet, which reaches a wider global audience. Lastly, mobile technology, such as phones and MP3 players, has made an impact on the industry as well. Although portable radio devices have existed for long period of time, digital devices that are able to receive high quality sound have helped increase mobile radio’s popularity. These mobile devices have radio tuners built in or are able to access online radio streams using cellular data or WIFI. Mobile radio apps also expand the reach of the radio broadcaster. 13

Wireless networks and devices are becoming more advanced and sophisticated, resulting in the rise of Internet-based radio applications. Consumers are finding it easier and quicker to receive data driving the evolution of wireless data services and increasing consumer demand for mobile devices and on demand content. This is lead to the trend of streaming audio programming, which has increased to 82.6% in 2016 in comparison to downloading song and albums, which has dropped to 15-24%. 14

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Radio broadcasters are now forced to create content that is compatible with new and improved data networks like LTE and 5G technologies. International Data Corporation stated “ wireless market penetration in Canada is approximately 83% of the population and is expected to grow at an estimated 0.9% annually over the next four years”.15 In conjunction with this evolution of wireless data, the CRTC has also limited consumer wireless term contracts to two years, encouraging consumers to complete and review contracts quicker than before. Market Response

1. Bell Canada-28.1% Market Share13 2. Newfoundland Capital Corp. Ltd. -9.8% Market Share13 3. Rogers Communications Inc.- 9.7% Market Share13 4. Corus Entertainment- 9.3% Market Share13

The Radio Broadcasting Industry has suffered a major shift over the last five years. Alternative media, such as streaming media services, mobile applications and podcasts, have disrupted the industry by stealing audiences and advertising revenue. Due to this disturbance, the Radio Broadcasting Industry has struggled to maintain its relevance to the average consumer. In order to combat this decline in audience, the big players in the industry have started to participate in merger and acquisition activity. Traditionally, many independent stations served their own niche, individual markets; however, because of the change, the industry’s dominating broadcasting operators have acquired smaller stations, streamlining their programming and expanding their network. This more effectively captures a greater number of advertisers. Furthermore, broadcasters are starting to embrace online media radio channels. A study done by PWC found that by 2021 US online radio advertising revenue would account for more than one-tenth of the global online radio advertising revenue.16

Currently, radio advertising accounts for 81% of total radio revenue, however in the US alone, online radio advertising is anticipated to see a $1.4bn increase in the next year and a $2.0bn increase by 2021.16

14.Hartung, Adam. “4 Trends That Will Forever Change Media, Advertising And You In 2017 And Beyond.” Forbes, Forbes Magazine, 6 Jan. 2017 15.“News Releases.” BCE Bell Canada Enterprises: Canada's Top Communication Company, www.bce.ca/news-and-media/releases/show/BCE-reports-2016-Q4-and-full-year-results-announces-2017-financial-targets-Common-share-dividend-increased-5-1-to-2-87-per-year-1. 16.PricewaterhouseCoopers. “Radio.” PwC, www.pwc.com/gx/en/industries/entertainment-media/outlook/segment-insights/radio.html.

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For example, in October 2016, Bell Media introduced the iHeartRadio brand to Canada, a service that offers consumers online access to Bell Media’s 105 radio stations across Canada.17 Corus Entertainment has integrated their Radio and News in hopes to “leverage synergies between the two while creating growth through content sharing, cross promotion and advertising bundling”.11

“Radio is everywhere. It is accessible. It is local. This is the key to radio’s future. Whether in your vehicle, streaming from a computer or listening to the Radioplayer Canada App on your phone or tablet, radio is a part of your everyday life.” –Rob Steele, President & CEO Newfoundland Capital Corporation Limited 18

*For breakdown of financial performance of all four major players see Appendix F-I.

Radio Broadcasting in Canada & Television Broadcasting in Canada Jobs in the Industry Traditional Jobs Photojournalism, Communications, Sports Journalism, Foreign Correspondent, Newspaper reporter, Magazine editor, Public relations, Social media, Investigative journalism, Editor, TV Producer/writer, News Broadcaster, TV/Radio Host. In March 2016, the CRTC made changes to their regulations, revolutionizing the way consumer purchase broadcast products. Under these new policies, Media companies can now sell individual stations to consumers. By unbundling TV packages, audiences now have choice, empowering the consumer while reducing costs. However, this has had a major negative effect on the creation of Canadian TV programs and in turn increased the amount of layoffs within the industry. 19

17.Bradshaw, James. “IHeartRadio Joins Canada's Streaming Market through Partnership with Bell.” The Globe and Mail, The Globe and Mail, 6 Jan. 2016, www.theglobeandmail.com/report-on-business/iheartradio-joins-canadas-streaming-market-through-partnership-with-bell/article28028272/. 18.“Annual Reports.” Newcap Radio, www.ncc.ca/annual-reports-information-circulars-annual-information-forms/. 19.Bradshaw, James. “Canada's New TV Rules Could Erode Jobs, Funding, Report Warns.” The Globe and Mail, The Globe and Mail, 5 Jan. 2016, www.theglobeandmail.com/report-on-business/canadas-new-tv-rules-could-erode-jobs-funding-report-warns/article28015965/.

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Bell Media, one of the largest, most successful telecommunications company in Canada, announced in January of 2017 that they would be reducing positions at more than 24 locations nationally, including radio and television stations. The restructuring was deemed the result of increasing competition due to the evaluation of broadcast technologies and advertising and regulatory pressure. The last major round of layoffs made by Bell Media was in 2015 when they cut 380 positions across the country. 20

ESPN also announced in April of 2017 the layoff of about 100 employees. This is in addition to the 300 employees they laid off in 2015. However, ESPN has stated the layoffs come as Disney speeds up efforts to introduce an ESPN branded subscription-streaming service. 21

“You have to be willing to either create or experience some distribution as we migrate from what has been a more traditionally distributed world to a more non-traditional distribution world,” Robert A. Iger, Disney’s chief executive, told analysts on a conference call in February. “ 21

Digital Native Publishers A study done by the Bureau of Labor Statistics’’ Occupational Employment Statistics (OES) program found that the number of journalists at digital native publishers has more than tripled over the past 10 years. 22

It is evident that because of its popularity, radio and TV broadcasters are starting to explore employment opportunities in OTT. Whether that is online creative, news or live content, broadcasters have started launching their own OTT services or partnering with existing online platforms. Knowing how to create an IT environment with high quality content delivered to consumers through new media channels is what gives broadcasters the edge in such a crowded online space. A study done “Monster”, an American online publication, using data from U.S. Bureau of Labor Statistics and PayScale, found that Broadcast and Journalism graduates’ top 10 jobs after graduation are not very traditional. The jobs include: Content Marketer, Copywriter, Corporate Communications Specialist, Editor, Grant Writer, Public Relations Specialist, Reporter, Social Media Specialist, Sports Information Director, and a Technical Writer. 38

20.Jackson, Emily. “Bell Media Cites CRTC Super Bowl Ad Policy as a Factor in Latest Round of Layoffs.” Financial Post, 31 Jan. 2017, business.financialpost.com/technology/bell-media-cites-crtc-super-bowl-ad-policy-in-latest-round-of-layoffs. 21.Bonesteel, Matt, and Cindy Boren. “ESPN’s Massive Round of Layoffs Hit Familiar Faces, Including Marc Stein, Andrew Brandt and Adam Caplan.” The Washington Post, WP Company, 1 May 2017 22.“Employment Picture Darkens for Journalists at Digital Outlets.” Columbia Journalism Review, www.cjr.org/business_of_news/journalism_jobs_digital_decline.php. 38.“Top Jobs For Journalism Graduates & Degrees.” Monster Career Advice, www.monster.com/career-advice/article/top-10-jobs-for-journalism-grads.

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How to Stay Relevant

Traditionally, the TV Industry relied on two main sources of revenue: advertising and subscription. The majority of networks’ revenue streams come from a hybrid of both models. However, subscription based programming streamed through Internet is starting to thrive, giving the viewer more control over programming for a cheaper price. In order to capitalize on this industry trend broadcaster should take the following into consideration. 1) E mbrace Non- L inear Distribution: New Platforms & Digital Space The digital online space has shaken the media environment over the last decade, fundamentally changing the way viewers consume content. In such a cluttered and fragmented environment consumers are engaging with more content conveniently over multiple platforms and devices. Rather than seeing this as a threat, broadcasters should look at this new form of consumption as an opportunity to better interact and co-create with its viewers. By offering multiplatform OTT distribution, broadcasters can widen viewership and better engage. Corus Entertainment Inc. has being doing just that. In fiscal 2016, its social content was viewed over one billion times. Corus subsidiary Globalnew.ca receives more than 56 million total view monthly. On its websites alone, Corus reaches 10 million Canadians monthly.11 They are also able to reach even more Canadians via mobile apps which provides consumers live stream “on the go” across devices. CBC is following close behind, in 2015/16, about 15 million Canadian used CBC’s digital sites every month with more than half of these consumers streaming this content on mobile devices. This number has grown by 3 million in the past year alone.9 2) E xplore Web Design and Coding Broadcasters need to learn how to control the space by becoming experts in streaming and coding. For example, having the knowledge to create apps is a strong asset for broadcaster. Coding will give broadcasters better control over where and how to publish content. This will empower the creator to connect with audiences in a more interactive way. It is about staying relevant, giving the audience what they want and communicating in the way that individual now prefer to consume news and creative content. 3) Work With Retail Brands Who Are Now Creating Their Own Content Channels Companies like Red Bull and GoPro are creating their own channels in order to help market their products. Yahoo just recently announced that they have received the rights to stream NFL games live this year.23 Additionally, Google has already introduced a TV network called Google Fiber.24 Lastly, Disney just recently announced the 2019 launch of a branded direct-to-consumer streaming service for their content as well as

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a new ESPN video streaming service in early 2018.25 Those who have studied Broadcasting or Journalism, or have experience in the industry, can now use their skills in a whole new way by working for big brands producing content that will help market and attract a new audience. 4) Stay Relevant: TV on the Go In order to stay relevant, Broadcasters must also react to the variations in their audience’s viewing habits; they need to fulfill the consumers’ need to experience interactive, engaging, and convenient broadcasts. “TV on the go” is a model that is becoming extremely popular within the industry. Streaming broadcast through mobile devices will help capture a wider audience, while making it seamless to share content with others through social platforms. Using a second screen device in conjunction with TV broadcasting allows viewers to not only watch, but discuss content in real time with their friends and family as well as interact with the broadcast and advertising contact. TV viewing is becoming a more holistic, high quality and engaging experience for viewers. Many major networks have moved online in order to better the viewer experience. 25

5) Stay Relevant: Radio on the Go Radio broadcasting is developing in a very similar way to TV as they too are seeing the need to create a more personalized experience for listeners. For example, the popular music-streaming app Spotify recently added radio, creating stations based on listeners’ music preferences. It is estimated that it won’t be long until other radio stations follow suit. BBC’s Radio 1 has relocated online and even has their own YouTube channel with almost 4 million subscribers and 1.1 billion views. 26

6) Be a Part of the Podcast Generation One in four Americans listened to at least one podcast in the past month, according to recent research from Edison Research and Triton Digital. Now totalling 57 million Americans listening monthly (up 23% year-over-year) this industry is becoming lucrative for those who enter. For example, the sport-broadcasting network ESPN is paving the way with the 30 for 30 podcast. This podcast, led by Jody Avirgan, will tell original sport stories featuring interviews and archival audio. Contrarily, networks are using podcasts as inspiration for TV content. For example, Fox 21 is planning on adapting the iconic podcast series “Serial”. ABC is bringing the podcast “Startup” to life and lastly award winning podcast “Lore” is going to be remade by Amazon. 27

23. Schwab, Frank. “Yahoo Will Broadcast First Free Global Live Stream of NFL Game.” Yahoo! Sports, Yahoo!, 3 June 2015, sports.yahoo.com/blogs/nfl-shutdown-corner/yahoo-will-broadcast-first-live-stream-nfl-game-on-oct--25-151500015.html. 24.Google Fiber | High Speed Internet Service & TV, Google, fiber.google.com/about/. 39.Castillo, Michelle. “Disney to End Movie Deal with Netflix and Start Its Own Streaming Services.” CNBC, CNBC, 9 Aug. 2017, www.cnbc.com/2017/08/08/disney-will-pull-its-movies-from-netflix-and-start-its-own-streaming-services.html

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7) Showcase your Personal Brand by L everaging Business Knowledge

Showcasing a unique personal brand has never been more important. There are many opportunities online for broadcasters to create new revenue streams through non-traditional mediums. Because of the increased popularity of YouTube, Snapchat, Twitter, Instagram and Facebook Live and podcasts, it is possible for broadcasters to not only make a living by building their own brand online, but also to become true entrepreneurs. Having concrete, basic, business skills, as well as a keen understanding of the corporate world, is now more beneficial than ever before. Canadian Institutes: Competition for BCIT Ryerson University The RTA School of Media has four programs for students including: Media Production, Sports Media, New Media and Media Production. Although each program is unique, encompassing different aspect of the Media environment, each program encourages students to take courses like social media management, media entrepreneurship, and marketing and even introductory web design. Ryerson’s School of Media is embracing the current trends and teaching their students tangible skills that will allow them to thrive in the new and exciting media space. 28

Carleton University Carleton’s Journalism program is the oldest in the country, however built by a rich history of experience; the program has continued to grow with the industry and has produced many successful graduates. By enriching their students with the most relevant areas of journalism as well as teaching strategic communication, digital media and media law, students are exposed to multiple aspects of the industry. 29

25.Minas, Chris. “How Mobile Technology Is Changing the Face of Broadcast.” The Guardian, Guardian News and Media, 31 Jan. 2013, www.theguardian.com/media-network/media-network-blog/2013/jan/31/mobile-changing-face-broadcast. 26.“Press Office - Broadcast Journalism in the Digital Age: Mark Byford Speech.” BBC, BBC, www.bbc.co.uk/pressoffice/speeches/stories/byford_leeds.shtml. 27.Research, Edison. “The Infinite Dial 2017.” Edison Research, Edison Research Http://Www.edisonresearch.com/Wp-Content/Uploads/2014/06/Edison-Logo-300x137.Jpg, 30 Mar. 2017, www.edisonresearch.com/infinite-dial-2017/. 28.“Journalism.” Ryerson University, www.ryerson.ca/graduate/journalism/. 29.“Admissions.” Undergraduate Admissions Broadcasting Career, admissions.carleton.ca/careers/broadcasting/. 30.“UBC Bachelor of Media Studies.”Bachelor of Media Studies, mediastudies.arts.ubc.ca/. 31.“University of Guelph-Humber.” Media Studies, www.guelphhumber.ca/media.

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UBC Bachelor in Media Studies

This new program to UBC investigates into technological innovations, which enable new ways for society to communicate. This includes Radio, TV, Film, Blogs, Twitter and Instagram as all media channels being explored. The UBC Bachelor in Media Studies combines traditional hands on skills with new technology. Students are required to take creating writing, journalism, film studies and production, podcasting, social media management, statistics and even computer science courses. 30 University of Guelph- Humber The Bachelor of Applied Arts in Media Studies (BAMS) - Diploma in Media Communications at Guelph aids to students in exploring the new and exciting world of broadcast and journalism by learning things like producing a newspaper or television broadcast, promoting and managing a large event, producing a body of photographic work, or creating of multi-platform communication vehicles through digital technology. What makes this program unique is its recognition of the importance of business as an aspect in new media, and its incorporation of business courses. 31

Government F unding In Canada, broadcasting operators function together with the Canada Media Fund, while following quotas imposed by the Canadian Radio-television and Telecommunications Commission (CRTC). They receive some public support from the Canadian Government. A study done in 2016 by Nordicity, found that Canada exhibits one of the lowest levels of public funding for public broadcasting among 18 major Western Countries. The nation, which receives funding annually, was the third lowest when evaluating the level of per capita public funding, receiving just over $1 billion or $29 per capita. 32

Broadcasting operators in Canada also make 37% of its total revenue from commercial sources and 20% share from sale of advertising and sponsorships, ranking fourth and seventh respectively among 18 major Western Countries. 32 The Canadian Government also provides indirect support to Canada’s broadcasting operators. This is done through the implementation of section 19.1 of the Income Tax Act as well as many regulations that prevent international competition; specifically from US stations for Canadian advertising spend.32 However in March of 2016, it was announced that Canadian Federal government is committed to helping drive pubic broadcasting’s shift to the digital platforms by increasing CBC funding. The budget pledges $675 million, which includes a $75 million, increase for the rest of the year and an additional $150 million annually until 2021. 33

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CRTC will also introduce $90 million in additional supports for local TV in September 2017. Furthermore, the Canadian Periodical Fund currently donates $75-million a year to magazine publishers.36

These types of organizations are not stopping there, in June 2017, News Media Canada, a group that supports and advocates for print and digital media in Canada, requested that the federal government set up a $350 million fund to support journalism in Canada. 37

Canada Media F und Canada Media Fund is a non-profit corporation supported by the Canadian government. It receives financial contributions from the government as well as Canada’s cable, satellite and IPTV distributors. The corporation’s main goal is to support, through financial aid, Canadian television and digital media industries. The Canada Media Fund allocated a total of $349.7 million dollars for 2017-18. 34

Canada Council for Arts The Canada Council for Arts is a federal crown corporation that provides financial aid to Canadian artists, groups and organizations that use film, video, new media and audio as a form of expression enhancing the viewing and listening experience of the Canadian audience. They provided $144.8 million dollars to 2,055 artists in 2015-16. 35

Scholarships for Broadcasting36 CTV Broadcasting Scholarship Available to a full-time Cambrian College student enrolled in the Journalism or Public Relations program. Value $1000 dollars and to be awarded to one student annually. Astral Media Scholarship Provided by the Canadian Association of Broadcasters for all Universities. Value $5000 for full time students. Eligible Provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan. Bayshore Broadcasting Media Scholarship Provided by Bayshore Broadcasting Media, Community Foundation Grey Bruce for all Universities in the following provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan.

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Global Television Network Broadcasters of the F uture Awards- Internship Award for a Canadian with a Physical Disability - Canadian Scholarships Provided by Global Television Network for student at BCIT. Value $15,000 for one student. Global Television Network Scholarship Award for a Canadian Visibility Minority Student Provided by Global Television Network for all Universities in the following provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan. Value $4500 for one student. Ruth Hancock Scholarship Provided by the Broadcast Executive Society, this scholarship is specifically for broadcasting students at Canadian Colleges and universities. Value $1500 dollars annually. 32.“Public Broadcaster Comparison 2016.” Analysis of Government Support for Public Broadcasting, CBC/Radio Canada, 11 Apr. 2016, www.cbc.radio-canada.ca/_files/cbcrc/documents/latest-studies/nordicity-public-broadcaster-comparison-2016.pdf. 33.Bradshaw, James. “Federal Budget Pledges $675-Million in CBC Funding.” The Globe and Mail, The Globe and Mail, 23 Mar. 2016, www.theglobeandmail.com/report-on-business/liberals-pledge-675-million-in-cbc-funding/article29354285/. 34.“Interested in CMF Funding? Here’s Everything You’Ll Need to Know.” Canada Media Fund, www.cmf-fmc.ca/programs-deadlines. 35.“Funding.” Canada Council for the Arts, canadacouncil.ca/funding. 36.Media Studies Scholarships in British Columbia, www.canadian-universities.net/Scholarships/British-Columbia/Media-Studies.html. 36.Kuitenbrouwer, Peter. “Newspaper Publishers Ask Ottawa for $350 Million a Year to Save Print Journalism.” Financial Post, 16 June 2017, business.financialpost.com/news/newspaper-publishers-ask-ottawa-for-350-million-a-year-to-save-print-journalism. 37.Press, The Canadian. “Media Group Asks Ottawa for $350-Million Canadian Journalism Fund.” Macleans.ca, 17 June 2017, www.macleans.ca/news/canada/media-group-asks-ottawa-for-350-million-canadian-journalism-fund/

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Appendices

Annual Change Broadcasting in Canada Industry Appendix A Financial Performance of Market Leaders- Television Broadcasting in Canada Appendix B

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Appendix C Appendix D Appendix E

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Financial Performance of Market Leaders- Radio Broadcasting in Canada Appendix F Appendix G Appendix H

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Appendix I