OTTAWA – Canadian television programming can be, and is, profitable for Canadian broadcast groups, says a study by consulting firm Nordicity Group.
The report, which was widely referenced at the CRTC’s licence renewal hearings for conventional broadcasters, found that large corporate broadcast groups that own conventional and specialty TV channels are “well-positioned” to generate positive financial returns from Canadian programming, primarily through repeating the programming multiple times across their various platforms.
The study was commissioned jointly by ACTRA, the Canadian Film and Television Production Association (CFTPA), the Directors Guild of Canada (DGC), and the Writers Guild of Canada (WGC).
"We accept the fact that foreign programming is largely more profitable than Canadian programming," said CFTPA president and CEO Norm Bolen, in the press release announcing the report. “That’s a function of the fact that it’s far cheaper to acquire foreign content than to produce domestic programming. But in an environment where broadcasters now receive unlimited plays on multiple channels and platforms while paying minimal licence fees, the suggestion that Canadian content is a financial albatross cannot be taken at face value."
Maureen Parker, executive director of the Writers Guild of Canada, said the scheduling of Canadian shows can make a significant difference, and that broadcasters “can make even more money from (the programming) by putting it on when more people are watching."
"The study shows that Canadian broadcasters have historically aired most Canadian prime-time television programming on Friday and Saturday evening, and that such scheduling reduces a program’s audience by 25% on average,” Parker said in the release. “Such scheduling also means advertisers will demand deeply discounted rates. When broadcasters make these choices for Canadian programming, it makes it even more difficult for the shows to turn a profit.”
In the absence of empirical evidence or detailed financial data from broadcasters, Nordicity interviewed representatives from six leading media buying agencies, analyzed audience data, examined the implications of consolidation on the licensing of programming, and factored in available data on broadcaster costs associated with programming, in preparing its analysis.
