cra broadcasting report eng finalthe report which follows was developed by the canadian association...
TRANSCRIPT
BROADCASTING
2007:REPORTON THEINDUSTRYPREPARED BY THE CANADIAN ASSOCIATION OF BROADCASTERS
TABLE OF CONTENTSINTRODUCTION ............................................................................................................................................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
BROADCASTING 2007: REPORT ON THE INDUSTRY
INTRODUCTIONABOUT BROADCASTING 2007: REPORT ON THE INDUSTRYThe report which follows was developed by the Canadian Association of Broadcasters to provide a factualsummary 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 theessential 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 BROADCASTERSThe Canadian Association of Broadcasters (CAB) is the national industry association that representsCanada'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 byfar the largest share of the market, and Canadian programming broadcast by those services attracts thepredominant 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 thesocial, 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 behalfand to act as a central point of action on matters of joint interest.
INTELLIGENCE GATHERING AND COMMUNICATIONSThe CAB operates as the eyes and ears of the private broadcasting community. The CAB functions as anearly warning system that analyzes and synthesizes issues impacting on the system and any policy or ini-tiative 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
101Over-the-air
49Analog
Specialty
18Category 1SpecialtyServices
79Category 2SpecialtyServices
13Pay
TelevisionServices
13PPV Services
74
23
4
3014
515
3 2
51
26
7 2 411
2
Tele
visi
on
184Private
Commercial AM Stations
465Private
Commercial FM Stations
157
1550
100
150
200
250
300
350367
89
9Radio
English
French
Third-language
0
20
40
60
80
100
400
SECTION
1
2 CANADIAN ASSOCIATION OF BROADCASTERS
BROADCASTING 2007: REPORT ON THE INDUSTRY
CANADA’S PRIVATEBROADCASTERS: LOCAL STATIONS, ACROSS THE NATIONThe 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 NUMBERSPrivate 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 relevantinformation to Canada’s many varied cultural and ethnic communities.
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.
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)
EMPLOYMENT RISING IN ALL SECTORS OF THE INDUSTRYThe broadcasting sector is a major source of direct employment in Canada. There are more than 23,000 Canadians currently employed in the broadcasting sector.
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.
3CANADIAN ASSOCIATION OF BROADCASTERS 3
BROADCASTING 2007: REPORT ON THE INDUSTRY
0
5000
10000
15000
20000
2001/02
Pay & Spec
2002/03 2003/04 2004/05 2005/06
Priv Conv
Radio
Total
25000
Broadcast Employment
(Source: CRTC)
SECTION
2
4 CANADIAN ASSOCIATION OF BROADCASTERS
BROADCASTING 2007: REPORT ON THE INDUSTRY
BROADCASTING IN ABROADBAND WORLDMedia consumption patterns in Canada have changed dramatically in recent years. Canadians have awealth of media choices from the regulated broadcasting sector, as well as a vast number of unregulatedbroadband competitors.
This trend is especially notable in younger Canadians (the 18-24 age group), who are increasingly down-loading and streaming the audio and video content that was traditionally provided by broadcasters.
EXPLOSION OF CHOICE, FRAGMENTATION OF THE AUDIENCEWithin the regulated sector, the choice available to television viewers has exploded since 1996.
12.5% CTV1.6% Spike
2.9% TBS
1.3% TLC
0.1% Consumer News0.2% Golf
1.8% CNN0.1% BET
1.9% A&E1.0% US Supers1.4% Other US
2.3% NBC
2.4% CBS
1.8% ABC
1.4% PBS1.5% FOX
0.7% Superchannel0.4% MoviePix3.0% All Diginets
2.0% YTV
1.2% W0.4% Vision
3.0% TSN
2.0% Treehouse0.7% Weather1.8% Family
1.0% Comedy Network1.8% Teletoon
0.2% Star
1.9% SportsNet
1.4% TMN
0.4% Speed
8.4% Global
6.0% CBC
0.3% Toronto One
2.1% CH
2.6% City
6.0% Other Conventional
2.2% A Channel0.9% Bravo
0.9% Newsworld0.8% CMT
0.7% CTV Newsnet1.5% Space1.8% Discovery 1.5% Showcase
0.6% Food1.0% HGTV
0.6% Score1.0% TV Prime
1.2% History0.3% Outdoor Life0.8% Other Can. Spec.0.7% MuchMusic0.5% Life0.4% MuchMoreMusic
1.0% Omni 1&2
25.9% CTV
0.8% TLC1.0% TNN
0.7% CNN3.1% A&E
3.1% PBS
5.2% NBC
1.6% US Independents
4.9% CBS
0.5% Vision1.1% PROV
2.8% YTV0.3% Weather
0.4% TMN0.2 Superchannel
2.5% TSN
4.2% ABC
7.1% Global
6.0% CBC
16,0 % Cdn Independents
0.7% MuchMusic1.1% Newsworld
Viewing to English Services 1996 Viewing to English Services 2005-6
THE NEW-MEDIA CONSUMER: PLUGGED IN AND ONLINE Canadians are among the world's leaders in adopting new media technology. Since 2003, the percentageof 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.
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.
5CANADIAN ASSOCIATION OF BROADCASTERS 5
BROADCASTING 2007: REPORT ON THE INDUSTRY
34.0% TVA
4.4% Super Écran
2.6% TQ
15.5% TQS
15.7% SRC
4.6% Canal Vie
0.3% Évasion0.8% Historia
0.7% Météo0.5% MusiMax
0.5% Musique Plus2.2% RDS
1.6% RDI4.6% Série Plus
1.8% Télétoon0.8% TV5
0.2% TVOF1.7% VRAK 1.7% Z
0.6% ARTV
3.0% Canal D
1.8% LCN
43.4% TVA
0.3% Météo1.5% RDI
2.2% RDS3.9% Famille
1.7% Super Écran0.4% MusiquePlus
0.9% TV5
10.8% TQS
27.4% SRC
2.0% RQ
Viewing to French Services 1996 Viewing to French Services 2005-6
0%5%
2003
2004
2005
2006
10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%
Dial Up High Speed Total
Percentage of Canadian Households with Internet Subscription
(Source: BBM, Nielsen)
(Source: CRTC)
AD SPENDING: THE INTERNET IS BOOMING, WHILE TRADITIONALMEDIA REMAIN STEADYThe 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 increasedover 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.
BROADCASTING 2007: REPORT ON THE INDUSTRY
6 CANADIAN ASSOCIATION OF BROADCASTERS
0%5%
10%15%20%25%30%35%40%45%50%55%60%65%70%75%
Download /Listen to
music
18 to 24
25 to 34
35 to 44
45 to 54
55 to 64
65+
Listen to radio
Watch videos Watch TVon the
Internet
Downloadmovies
DownloadTV programs
80%
Online Audio and Video Activities of Canadian Adults Surveyed by Age
0.0%
-1%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Canada
Television
US UK
Radio
Total Ad Market
9.0%
Growth in Ad Revenues – 5 Year CAGR
(Source: Television Bureau of Canada)
(Source: CRTC)
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.
7CANADIAN ASSOCIATION OF BROADCASTERS 7
BROADCASTING 2007: REPORT ON THE INDUSTRY
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2002
Canada
2003 2004 2005 2006
UK
US
10000
Internet Ad Revenues – in millions of $/£
(Source: Television Bureau of Canada)
0
$200
$400
$600
$800
Canada
Radio
UK US
Television
Major Media
All Media
$1,000
Advertising Expenditures Per Capita, $ Canadian, 2006
(Source: Television Bureau of Canada)
SECTION
3BROADCASTING 2007: REPORT ON THE INDUSTRY
COMPARATIVE ECONOMICPERFORMANCEOn the whole, Canada’s private broadcasters have demonstrated moderate financial growth over the pastfive 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 GDPBroadcasting industry revenues as a whole increased slightly as a percentage of GDP over the period2002 to 2006. Radio and television broadcasting revenues as a percentage of GDP remained relatively stable, at 0.10% and 0.35% respectively.
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
0.40%
0.45%
0.50%
0.55%
2002
Radio
2003 2004 2005 2006
Television
BDU
Percent of GDP
8 CANADIAN ASSOCIATION OF BROADCASTERS
(Source: Statistics Canada, CRTC)
TOTAL TELEVISION REVENUESTelevision revenues in Canada have grown over the past five years. Total television revenues increasedfrom almost $4 billion in 2001/02 to slightly over $5 billion in 2005/06, based on a compound annualgrowth rate (CAGR) of 6.2%.
9CANADIAN ASSOCIATION OF BROADCASTERS 9
BROADCASTING 2007: REPORT ON THE INDUSTRY
$
$500
$1,000
$1,500
$2,000
2001/02
Total Revenues
2002/03 2003/04 2004/05 2005/06
Ad Revenues
PBIT
$2,500
Private Conventional Television – in millions of $
0
$250
$500
$750
$1,000
$1,250
$1,750
$1,500
$2,000
2001/02
Total Revenues
2002/03 2003/04 2004/05 2005/06
Sub Revenues
Ad Revenues
PBIT
$2,250
Total Specialty – in millions of $
(Source: CRTC)
(Source: Television Bureau of Canada)
PRIVATE RADIO REVENUESPrivate 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%.
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 issubstantially less than that of the major US new media players available in Canada.
BROADCASTING 2007: REPORT ON THE INDUSTRY
10 CANADIAN ASSOCIATION OF BROADCASTERS
$
$200
$400
$600
$800
$1,000
$1,200
$1,400
2001/02
Total Revenues
2002/03 2003/04 2004/05 2005/06
Ad Revenues
PBIT
$1,600
0%
20%
6.2% 6.5%10.1%
40%
60%
80%
Television Radio Specialtyand Pay
Yahoo Google
Canadian Broadcasters
US New Media
100%
36.76%
89.0%
Private Radio – in millions of $
(Source: CRTC)
(Source: CRTC. Yahoo and Google Annual Reports)
SECTION
4BROADCASTING 2007: REPORT ON THE INDUSTRY
CONTENT BY CANADIANS, FOR CANADIANSCanada’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 EXPENDITURESExpenditures 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.
CANADIAN ASSOCIATION OF BROADCASTERS 11
0
200
400
600
800
1000
1200
1400
1600
2001/02
Priv Conv
2002/03 2003/04 2004/05 2005/06
Pay & Spec
Total
1800
Expenditures on Canadians Programming – in millions of $
(Source: CRTC)
INVESTING IN CANADIAN PROGRAMMING Canadian private television broadcasters make substantial expenditures on programming in a number ofdifferent genres. Almost half a billion dollars are spent on news annually, with approximately a quarter of abillion dollars each year spent on Canadian drama and comedy, other information programming and sports.
In total, Canada's private broadcasters spent more than $1.5 Billion on Canadian programming last year.
PRIVATE BROADCASTERS – THE PRIME SUPPORTER OF CANADIAN PRODUCTIONPrivate conventional, pay and specialty television broadcasters make substantial commitments throughlicence fees to help fund independently produced Canadian television programming supported by theCanadian 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.
BROADCASTING 2007: REPORT ON THE INDUSTRY
0
50
100
150
200
250
300
350
400
450
2001/02
Private Licence Fees
2002/03 2003/04 2004/05 2005/06
500
Private Broadcaster Licence Fees – in millions of $
Canadian Program Expenditures by Genre, 2005/06 – in millions of $
12 CANADIAN ASSOCIATION OF BROADCASTERS
Private English French Ethnic TotalOTA Specialty Specialty Specialty
and Pay and Pay and Pay
News $328.1 $104.6 $42.5 $2.2 $477.4
Other Info $66.3 $167.8 $40.9 $3.0 $277.9
Sports $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
Other $3.8 $26.6 $6.0 $0.2 $36.6
Total $623.7 $700.3 $173.9 $16.3 $1514.0
(Source: CRTC)
(Source: Canadian Film and Television Production Association)
Meanwhile, Canadian production companies now account for only 2% of Canadian television productionbudgets, compared to 6% in 2000/01.
CANADIAN BROADCASTERS – OVERWHELMINGLY, CANADA’S CHOICENotwithstanding the increasing availability of foreign programming services on Canadian distributors,Canadian television services have increased their market share. The share of total viewing attracted byCanadian 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 Englishand French services account for 7.7% of this figure in 2005-2006.)
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.)
13CANADIAN ASSOCIATION OF BROADCASTERS 13
BROADCASTING 2007: REPORT ON THE INDUSTRY
70%
71%
72%
73%
74%
75%
76%
77%
78%
79%
2002/03
Canadian TV
2003/04 2004/05 2005/06
80%
Canadian Television Services, Share of 2+ Viewing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2002/03
Canadian Radio
2003/04 2004/05 2005/06
100%
Canadian Radio Services, Share of 12+ Listening
(Source: BBM, Nielsen Media, CRTC)
(Source: BBM, CRTC)
CANADIAN RADIO SUPPORTS CANADIAN TALENTCanadian radio broadcasters make a substantial contribution to the development of Canadian musical talentby providing extensive on-air exposure for Canadian artists and through Canadian talent developmentexpenditures 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.
CANADIAN CONTENT DEVELOPMENTPrivate radio plays a major role in the success of Canadian music artists, not only by driving CD sales andproviding on-air promotion of tours and musical events, but more importantly by providing name and songrecognition 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 theCommission, including the provision of funds for spoken word talent. As a result, the nomenclature of thisfunding regime was changed from Canadian Talent Development (CTD) to Canadian Content Development(CCD).
BROADCASTING 2007: REPORT ON THE INDUSTRY
14 CANADIAN ASSOCIATION OF BROADCASTERS
0
15
10
5
20
25
2001/02
CTD
2002/03 2003/04 2004/05 2005/06
30
13.1
18.117.1
21.0
23.9
Contribution to Canadian Talent Development – in millions of $
(Source: CRTC)
Under the new approach to CCD, the Commission also proposed a basic contribution system based on aradio station’s revenues, rather than on the size of the market in which it operates. By the Commission’sown 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 initiativeswhen 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-operativeactivities by broadcasters and the music industry.
With the endorsement of the CRTC, the Radio Starmaker Fund and Fonds RadioStar were created toachieve the industrial goal of developing a strong supply of commercially playable music. Radio StarmakerFund and Fonds RadioStar are artist-focused initiatives providing marketing and promotion assistance toartists, 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 AWARDSThe Canadian Radio Music Awards (CRMAs) honour artists in the early stages of their careers. Sponsoredby the CAB and Canada’s private broadcasters, the CRMAs are awarded each year as part of CanadianMusic Week, and help celebrate the success of new Canadian talent and the cooperation between themusic industry and private radio broadcasters. CRMA nominees include artists who have hit the Canadiancharts for the first time and who have achieved top airplay in different formats based on radio “spins” inthe 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.
15CANADIAN ASSOCIATION OF BROADCASTERS 15
BROADCASTING 2007: REPORT ON THE INDUSTRY
SECTION
5BROADCASTING 2007: REPORT ON THE INDUSTRY
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 multi-ple 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, existingand new jobs, and community-oriented initiatives.
Annual tariff payments made by CAB members were almost $150 million in 2006.
200
180
160
140
120
100
80
60
40
20
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Proposedtariffs
SOCAN
NRCC
CSI
AVLA/SOPROQ
220
$ M
illio
ns
27.9 28.3
1.14.5 5.0
29.4 30.1 31.5
7.7
32.7
8.1
6.2
42.2
13.1
6.2
43.2
13.6
5.9
46.5
15.0
7.7
49.7
15.9
8.3
76.9
60.0
17.5
49.0
3.6
Copyright Fees Paid by Private Radio in Canada
16 CANADIAN ASSOCIATION OF BROADCASTERS
(Source: CAB)
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.
The spiralling copyright burden isn’t exclusive to radio. Private conventional, pay and specialty televisionbroadcasters also make substantial copyright payments to the various rights collectives to compensateartists for the use of their works.
Copyright payments by these broadcasters increased from $56.6 million in 2002 to $72.5 million in 2005.
17CANADIAN ASSOCIATION OF BROADCASTERS 17
BROADCASTING 2007: REPORT ON THE INDUSTRY
Growth of private radio revenues, SOCAN fees, and total copyright fees, 1995-2005, Index basis (1995=100)
Growth of private radio total operating expenses, and total copyright fees,1995-2005, Index basis (1995=100)
100
150
200
250
300
IND
EX
(1995=100)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005P
Private Radio Revenues
SOCAN Fees (old rates)
Total Copyright Fees (old rates)
Total Copyright Fees (new rates)
350
100
150
200
250
300
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)
350
(Source: CAB Radio Review Submission, 2005)
(Source: CAB Radio Review Submission, 2005)
SECTION
6
18 CANADIAN ASSOCIATION OF BROADCASTERS
BROADCASTING 2007: REPORT ON THE INDUSTRY
MAKING A DIFFERENCE –BROADCASTERS’ COMMUNITYCONTRIBUTIONS ENSURING DIVERSITY ON THE AIR AND BEHIND THE SCENESCanada is a culturally diverse nation, comprised of a multitude of ethnocultural, regional and Aboriginalgroups, as well as persons with disabilities. Private broadcasters recognize this diversity, and strive toensure that our airwaves reflect all Canadians through the development and implementation of initiativesthat 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 manydiversity initiatives, including scholarship and mentorship programs which ensure that a new and diversegeneration 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, andTélédiversité in Montreal. Both of these events offer a marketplace of fresh and innovative ideas on howto 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 DIVERSITYThe CAB has also overseen a number of initiatives to encourage and celebrate diversity in the broadcasting sector, including:
• The Best Practices and Industry Initiatives recommended by the Task Force for Cultural Diversity onTelevision, 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 beencreated to encourage, recognize and celebrate the diversity of Canada and applaud those privatebroadcasters who embrace diversity in their delivery of programming to Canadians.
• The creation and distribution of information booklets on Employment Opportunities in the CanadianBroadcasting and Affiliated Production Sector and Recommended Guidelines on Language andTerminology – Persons with Disabilities: A Manual for News Professionals (in partnership with Radioand Television News Directors Association of Canada).
• The CAB’s Diversity in Broadcasting website (www.cab-acr.ca/diversityinbroadcasting), whichensures that the initiatives undertaken by broadcasters across the country to reflect Canada’s diversityare captured in a single resource-filled web portal.
An important aspect of the CAB’s work on diversity is the advancement and growth of initiatives in relationto persons with disabilities. The CAB, working with the Joint Societal Issues Committee, produced its finalreport on the Presence, Portrayal and Participation of Persons with Disabilities in Television Programmingin June of 2006.
The CRTC has saluted the CAB’s leadership on this issue, noting that the initiatives recommended in theReport 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 campaignentitled “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 versionof 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.
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(Source: CHUM Television)
BROADCASTERS – LEADERS IN COMMUNITIESPrivate 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 dona-tions 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 thedonation 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 conveytheir message using the full power of the broadcast medium.
The CAB maintains a listing of civic leadership and charitable initiatives, and encourages its members toprovide details on these undertakings in their community. Further information on examples of communityleadership 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 significantfunds for children's hospitals. Since 1985, Standard Radio listeners have raised over $17.5 million for theHospital 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 amonth-long media campaign aimed at raising awareness and interest in the importance of essential skillslike reading and writing in Canadian society.
CTV Atlantic’s Christmas Daddies Telethon – A telethon to raise funds provide less fortunate childrenwith 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 theGrand River Regional Cancer Centre was an unparalleled success raising $185,251 in April 2006. Theevent featured KOOL FM morning personality Brian Bourke living on a billboard for seven days to raiseawareness and generate donations to the centre. The successful event saw significant donations fromindividuals, 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 anOntario Association of Broadcasters Award for Community Service in 2006 for this campaign.
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20 CANADIAN ASSOCIATION OF BROADCASTERS
Pitch In Kingston Day – 98.3 FLY FM, 1380 CKLC, and 103.7 BOB FM sponsored the 5th Annual Pitch InKingston Day in April 2006. Kingston residents were encouraged to organize groups to clean up a cornerof Kingston as a part of this initiative. Station employees took part and, together with participants fromover 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 projectfor increasing donations to the local food bank in Brockville, Ontario: They parked a transport trailer infront of their studios and challenged the community to fill it with food donations. 2006 was the biggestyear yet, bringing in 2400 bags of food up from the previous year’s 1700 bags. As a result, the transporttrailer 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 byfellow members of the community in categories including: Citizen of the Year, Community Leader of theYear, Business Leader of the Year, Arts Leader of the Year, Sports Leader of the Year, and Youth of theYear. There are two additional awards entitled the “Teamwork Award” and “911 Award”. The runners-upand winners of each category are honoured at a special luncheon. Along with celebrating these individu-als, C-FAX 1070 also awards numerous public service announcement grants for deserving communitygroups.
CJLS's On-Air Appeal Boosts Salvation Army's Red Kettle Christmas Campaign – A series of on-airappeals by CJLS in Yarmouth, Nova Scotia, helped boost the Salvation Army's annual "Red Kettle" cam-paign in the community. Three remote broadcasts by the station throughout its listening region and addi-tional daily promos helped push the campaign's take to over $47,000, a substantial increase over pastyears. 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’sRockDétente 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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CONCLUSIONCanadians have never had more programming choice than they do now.
The global media landscape has undergone a dramatic transformation, and Canadians are among theworld’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 aninvaluable source of news, information and entertainment programming to all Canadians, in markets bothlarge 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 owndedicated broadband sites, they are offering interactive programming, news and marketing opportunitiesfor 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 ofCanadians. Moreover, their extensive investments in communities act as a catalyst to Canada’s charitableorganizations 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 clearthat private broadcasters are committed to playing a key role in Canada’s cultural, social and economicfuture, 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 advertisingmarket 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 Canadianbroadcasting must be seriously considered.