Corus still waiting for regulatory relief from CRTC as revenues continue to fall in Q2

As it reported further declines in revenue for the second quarter of 2024, Corus Entertainment Inc. called on the CRTC to finally grant it the regulatory relief that has been under consideration for almost six months. CEO Doug Murphy said during the company’s quarterly conference call that Corus is still waiting on a final decision for its relief application. The company had asked the CRTC to temporarily reduce its programs of national interest (PNI) expenditure requirements from 8.5 per cent to five per cent of last year’s revenues, and extend the deadline to pay Canadian programming expenditure (CPE) shortfalls. Murphy urged the CRTC to “get on with it.” For the three months ending Feb. 29, consolidated revenue was $299.5 million, a decline of 13 per cent from $343.9 million last year. Profits for the quarter were $52.7 million, an 11 per cent decrease from $59.1 million last year. Corus’ revenue troubles were largely due to its TV segment, which saw a 14 per cent decline year-over-year from $321.5 million to $278.1 million. The company pointed to a 12 per cent and five per cent decrease in advertising and subscriber revenues, respectively. TV profits also declined, going down seven per cent from $63 million to $58.9 million. Radio revenues saw a minor decrease of four per cent year-over-year, declining from $22.3 million to $21.5 million. Despite the drop, however, Corus managed to greatly improve radio profitability. The company reported an increase of 145 per cent year-over-year from $350,000 to $857,000. The increase was largely because of a higher profit margin from cost containment and operational efficiency measures. “Every passing year, quarter, and even month, brings new reminders that our framework is broken and unsustainable,” said Murphy. “Federal broadcasting rules continue to wrongly assume that Canadian broadcasters are the only place that Canadians consume content and these assumptions now hold us back in an increasingly cross-platform environment.” The CEO commended the government for the passing of the Online Streaming Act and the CRTC for taking “some encouraging early steps” to implement it, but said there is much more to do. “We are doing our part at Corus to plan for the future and we are making difficult decisions. Ottawa must do theirs and they must do it quickly,” continued Murphy. “It is long past time for more equitable and flexible broadcasting regulations in Canada. There is not a moment to waste.” In response to a question raised by a Scotiabank analyst regarding cuts to news broadcasts, such as recent ones from Bell, Murphy advocated for continued requirements for broadcasters to carry news. “News really, in my opinion, should be the only regulatory obligation that Canadian broadcasters have,” he stated. “We shouldn't have to be required to spend money on dramas or anything else.” “Unfortunately, our system is rooted in the 1991 Broadcasting Act, which was designed at a time when the production industry in Canada was nascent and so the oligopoly profitability of broadcasters in those days was taxed to fund the launch of the industry and it worked” he said. However, now broadcasters are stuck with old regulatory obligations that are “increasingly punitive” as they struggle to compete with foreign streamers today, he explained. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca

Corus still waiting for regulatory relief from CRTC as revenues continue to fall in Q2

Broadcast | April 15, 2024

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Corus still waiting for regulatory relief from CRTC as revenues continue to fall in Q2

Broadcast | April 15, 2024

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