GATINEAU – Canada’s public broadcaster has been given the green light to introduce advertising on its Radio 2 and Espace musique properties, but only for three years.
“The Commission considers that advertising will serve to ensure that the CBC has the resources to continue to provide high-quality diverse programming. However, the Commission is imposing conditions of licence that limit advertising to a maximum of four minutes per hour and limit the number of times that programming can be interrupted for advertising to twice per hour,” reads the May 28 decision.
The Commission also ruled that Radio 2 has to air 2,800 distinct musical selections and Espace musique 3,000 in the course of a month, which should ensure the unique musical nature of the radio brand.
The decision to allow advertising on the two radio properties was panned by many, including Friends of Canadian Broadcasting, a dissenting opinion from CRTC vice-chair of broadcasting Tom Pentefountas and the Ontario Association of Broadcasters.
Friends spokesperson Ian Morrison noted that opening Radio 2 and Espace musique up to advertising “sets CBC Radio on a slippery slope” and “is the beginning of the end of the last commercial-free service offered by the CBC.”
“Next CBC management will ask for permission to place ads on its main radio networks Radio One and la Première Chaîne. CBC management says it needs the cash to backstop budget cuts by the Harper Conservatives, despite their 2011 election promise to maintain or increase support for CBC's programs,” he said.
Pentefountas agreed that allowing advertising on Radio 2 and Espace musique will be something that can’t be undone. “I understand that the whole thing will be re-examined in three years, but allow me to be skeptical. As the expression goes, it’s very hard to put the toothpaste back in the tube,” he wrote in his dissent.
“First, it’s a very slippery slope once the door is opened to the commercialization of public radio, and second, it seems crystal clear to me that the commercialization of Espace Musique and Radio 2 will trigger the disappearance of the distinct and complementary character of those services.
"In its initial application, the CBC/SRC requested revenues of $16 million in unlimited advertising. My colleagues decided to allow up to four minutes of advertising per hour. At best, the CBC/SRC would therefore make not more than $11 million in revenues. I will not go into further detail on administrative management proposals, which is beyond my mandate, but I find it perplexing that a broadcaster funded in large part by Canadian taxpayers would ask for $11 million out of a budget of $1.85 billion," added the vice chair in his dissent.
“In its 1974 decision, the CRTC eliminated commercials on CBC Radio, feeling that a commercialized CBC would adversely affect the distinct and unique character of CBC radio. With its decision today, the CRTC has now reversed its historical position,” said the OAB in a statement, adding, “we believe it will be virtually impossible to wean the CBC off commercialization. The national treasure that is CBC Radio will be lost forever in the process.”
During the proceeding, CBC altered its original advertising proposal. Its amended proposal called for five minutes per hour in the first year, seven minutes in the second year and nine minutes in the third. In subsequent years, there wouldn’t be any limits. The Commission expressed concern that this amount of advertising would be disruptive to listeners.
Added Paul Ski, CEO of Rogers Radio and chair of the Canadian Association of Broadcasters’ radio council: “We remain concerned that this decision will fundamentally alter the balance of public and private broadcasting enjoyed by listeners. This decision will be difficult to reverse now that funding from advertising is available to these services.”
In its decision, the CRTC acknowledged that the considerable opposition to the public broadcaster’s advertising proposal, but determined that the niche nature of each service combined with only national advertising wouldn’t have too great an impact on the radio advertising market. Without advertising, the Commission feared what the CBC executives told them would come true: that there would be a reduction in the quality of programming available on the two radio networks. At the same time, the Regulator expressed concern that too much advertising would drive listeners away.
“The Commission is of the view that these conditions, combined with other programming conditions of licence already in place, will serve to mitigate the negative effects of advertising on listeners and its impact on programming,” says the decision.
CBC chief executive Hubert Lacroix lauded the CRTC for recognizing the importance of its 2015 plan and for giving the corporation the flexibility it needs to move forward. “The decision today…allows us to continue in the direction we’re in,” he said in a conference call with media.
Lacroix acknowledged the corporation didn’t get what it wanted with respect to the number of advertising minutes, but took solace in the fact that at least the Commission allowed CBC to gain a new revenue stream.
“Four minutes is not what we requested, but it’s a new stream of revenues for us and we’ll make sure that with the dollars that come from this make sure that we invest them in CBC/Radio Canada programming. Four minutes is more than zero but it’s less than eight,” he said in response to a question from Cartt.ca.
If CBC wants to continue advertising on the two radio stations beyond August 31, 2016 (this is the expiry date of the temporary authorization), the corporation will have to seek approval from the CRTC.
“At that time, the Commission will expect the CBC to provide evidence that advertising has not had an undue negative effect on the advertising markets, that advertising has not been unduly disruptive to listeners, that periods the CBC’s level of investment in radio has been maintained and that the variety and diversity of the service that Espace Musique and Radio 2 provide has not been diminished,” the decision says.
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Concerns were raised during the proceeding that CBC wasn’t going to do enough for programming of national interest (PNI). The CRTC acknowledged CBC’s commitments were below historical levels, but it added that a balanced schedule with two hours of long form documentaries and two hours of drama and comedy would achieve objectives under the Broadcasting Act.
Other elements of its decision on PNI include: CBC English-language television shall broadcast a minimum of nine hours per week in prime time, averaged over the broadcast year and at least 5.25 hours of PNI devoted to Canadian programs from independent production companies.
With respect to children’s and youth programming, the CRTC was less than enthusiastic about the CBC’s proposed programming commitments. It described the corporation’s decision to eliminate any commitment to youth programming on English TV as inconsistent with its mandate. Equally, the drop from 20 hours to 10 hours for French language children’s programming was problematic for the Regulator.
So, it ruled that, as a condition of licence, the CBC must air “at least 15 hours per week of programming aimed at children under 12 years, averaged over the broadcast year.” In addition, the CRTC places on the corporation “an expectation of five hours per week of programming aimed at youth aged 12 to 17.”
ACTRA was pleased with the CRTC’s ruling on programming for youth and children.
“It’s critical to the future of the CBC and Canadian content that we ensure our most vulnerable audience has a secure place where they can watch the shows they love and see themselves reflected on our screens. It’s only right that the Commission require an ‘expectation’ that the CBC provide youth programming, something from which CBC management were trying to distance themselves,” ACTRA National executive director Stephen Waddell noted in a statement.
