CBC recommends moving to ad-free model

[mvcg66b3r]

CBC/Radio-Canada wants all its services to broadcast advertising free, however it will require $318 million in new annual funding to do so. The proposal is one of several the CBC made Monday in a submission to Canadian Heritage’s public consultation on homegrown content in a digital world.

The CBC says removing ads would allow the public broadcaster to focus on the cultural impact of its mandate and strengthen Canada’s creative economy.

In order to go ad-free, CBC/Radio-Canada would need the federal government to boost its per-person funding to $46 — an increase of $12 per Canadian. It notes the amount is “still well below comparable public broadcasters around the world, like the BBC, which receives $114 per person.” That hike in per-person funding would include $100 million annually for “new investments to face consumer and technology disruption.”

The public broadcaster says the move would also “free up advertising revenue to help private media companies transition to a digital environment.”

http://www.broadcastermagazine.com/acquisition/cbc-recommends-moving-ad-free-model/1004124534/

 

[FreddyE1977]

That's probably the most creative way I've ever seen to ask
"May we please have $318 million?"

 

[TheBigA]

This is the same government that requires a percentage of Canadian content from radio. If they create a mandate, they should be willing to fund it. This will be a huge relief to the commercial broadcasters.

Comparing it to the BBC isn't fair, since the government obtains the funding from a device tax leveled on the purchase of TVs and radios. TTBOMK, there is no such tax in Canada.

 

[PTBoardOp94]

The British tax ("license fee") is paid annually, not only on the purchase of new TVs and radios. I don't know if the CBC has a similar tax or not.

The fact that the CBC only gets $318 million in ad revenue is pretty shockingly low, though. Some mid-size cable networks in the US pull that kind of ad revenue, despite fairly small audiences. The likes of HGTV and Bravo.

 

[mimo]

The British tax ("license fee") is paid annually, not only on the purchase of new TVs and radios. I don't know if the CBC has a similar tax or not.

There is no tax on tvs or radios in Canada that goes to funding the CBC. A very small portion of the yearly income tax collected goes to the CBC and that amounts to $34 a person.

 

[anotherguyTN]

I just hope they don't go to the begathon tactics of PBS stations here in the US.

 

[TheBigA]

I just hope they don't go to the begathon tactics of PBS stations here in the US.

If the Canadian government balks at the CBC's request, they will have no other choice.

 

[CTListener]

The British tax ("license fee") is paid annually, not only on the purchase of new TVs and radios. I don't know if the CBC has a similar tax or not.

The fact that the CBC only gets $318 million in ad revenue is pretty shockingly low, though. Some mid-size cable networks in the US pull that kind of ad revenue, despite fairly small audiences. The likes of HGTV and Bravo.

Smaller country = smaller potential audience = smaller potential ad revenue. Remember, all those eyes and ears south of the border mean just as little to the CBC's advertisers as eyes and ears north of it mean to NBC, ABC, CBS and Fox's.

 

[TheBigA]

Smaller country = smaller potential audience = smaller potential ad revenue. Remember, all those eyes and ears south of the border mean just as little to the CBC's advertisers as eyes and ears north of it mean to NBC, ABC, CBS and Fox's.

Not to mention that most of the programming isn't as commercially appealing as the competition.