CBC contributes $3.7 billion to Canadian economy: Report

The CBC/Radio-Canada spends more on Canadian content, original news, journalism and the promotion of Canadian artists than a private broadcaster and adds $1.3 billion more to the Canadian economy than it would if it was privatized, a new study from Deloitte and Touche says. The report, released Wednesday, said the public broadcaster has a presence in regions that would be unjustifiable for a private broadcaster, creating creative clusters and contributing an overall $3.7 billion to Canada’s economy in 2010. The CBC received $1.1 billion in government funding in 2010 and had an overall budget of $1.7 billion. “This report clearly is there to support the strategic plan of CBC/Radio-Canada and to ensure that when we talk about the broadcaster, we have real facts in hand and that we go beyond the anecdotal evidence or the stories or numbers that have been drawn on the corner of a table, on a napkin,” Hubert Lacroix, CBC’s president and CEO, said in a conference call with reporters Wednesday. Lacroix said the report gave the broadcaster “robust conclusions.” “Canadians give us on average $34 a head. They should hear from us how we use those dollars and whether there’s a return for them and for the Canadian economy on those numbers. That’s why we have this report.” The CBC commissioned the study but did not disclose its costs, saying that could unfairly influence Deloitte’s negotiations with future clients. The report said that, of the $3.7 billion that the CBC contributed “in gross value-added” to the economy, $2.7 billion came from television, with radio and specialty services contributing $752 million and $263 million, respectively. Deloitte said CBC/Radio-Canada spends less than seven per cent of its programming budget on foreign programs, whereas English private broadcasters spend 60 per cent and French spend 15 per cent. “CBC/Radio-Canada spends significantly more than all the other conventional broadcasters combined on Canadian programming,” the report said. The CBC spent $151 million on independent productions in 2010, but a privatized version would spend $32 million, the report said, resulting in a “loss in economic value added to the independent sector of some $500 million.” It also said the CBC spent $155 million more outside Quebec and Ontario than a private version would, which would lead to lost value of $339 million for regional economies. The report said the public broadcaster’s presence in multiple production genres also helps producers across the sector, and that its consistent revenue source allows producers to plan ahead, invest and better compete internationally. The CBC’s local news and journalism programming would also suffer without public broadcaster status. The report said that CBC TV “spends 50% more on news and information content than private conventional TV broadcasters on average” and that Radio-Canada television spends three times more than its French competitors. A CBC survey, cited in the Deloitte report, said that 80 per cent of Canadians want more radio and television programming about their regions. The report also pointed to the CBC’s role in creating “creative clusters” throughout the country by experimenting with new technologies and digital distribution and providing Canadian artists with platforms. Lacroix said the report was motivated by a similar study undertaken by the BBC. He said it was not politically motivated, and that while it was sent to the offices of Prime Minister Stephen Harper and Heritage Minister James Moore, he is not asking for an increase in funding. The CBC’s $1.1 billion allocation from the government did not change in this year's federal budget. news@thewirereport.ca

CBC contributes $3.7 billion to Canadian economy: Report

Broadcast | June 15, 2011

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us