By Ahmad Hathout
Corus executives said Friday that they hope the federal government will direct to news a portion of its new $600-million pledge to Canadian content.
The new money, announced by Culture Minister Marc Miller earlier this month, is part of a rebuke of a CRTC decision last month to up, by 10 per cent, the amount foreign streamers must pay into the broadcasting system. The minister has already told the CRTC to revisit the decision and will hand down a new policy direction that will require the regulator to contemplate affordability of services when making decisions on the implementation of the Online Streaming Act.
“Specific details on the amount, timing, or recipients of the $600 million have not been publicized to date,” Jennifer Lee, Corus’s chief administrative and legal officer, said during a third-quarter earnings conference call.
“There is no question that independent Canadian broadcasters need more news, funding, and support, and we believe this point is well understood in Ottawa. At a minimum, we hope that a proportional share of the $600 million is earmarked for the [Independent Local News Fund] and applies across all years of eligibility.”
Corus has hailed the ILNF as a bit of a lifeline for its flagship Global News product after the CRTC made its 15 stations eligible for the fund’s money.
The CRTC ruled two years ago that 1.5 per cent of streamers’ five-per-cent base financial contribution to the system – worth about $42 million and which is being challenged in court – will go toward the ILNF. The regulator also ruled last month that the traditional broadcasters will need to commit a percentage of their revenues toward news.
Corus is steering a tight ship broadly, which includes at Global News. Last fall, it laid off 26 journalists as part of an “efficiency review process” as it seeks regulator approval for a recapitalization plan that is expected to loosen a creditor noose worth $500 million around its neck.
That plan, which involves forgiving the debt in exchange for 99 per cent ownership in a company housing Corus assets, is currently under CRTC consultation after getting court approval – and it’s facing resistance. A minority Corus shareholder group is asking the regulator to reject the plan because, ironically, it allegedly threatens local news, lacks editorial safeguards, and leaves effective control of a massive Canadian media footprint in the hands of unidentified financial investors. (It’s a view that is shared by others, views of which Cartt will cover at a later date.)
“Across our businesses, we are simplifying how we operate, sharpening our cost base, and backing the content, platforms, and capabilities that contribute most to sustainability and growth opportunities,” Corus CEO John Gosling said on the call Friday.
“We’re looking for and finding new ways to create value for clients and advertisers across our multi-platform offering,” he added. “…Progress on these priorities depends very much on a regulatory environment that supports fairness, flexibility, and true competitiveness for all players. We need smart decisions, smarter rules, and much more speed to right the imbalances in our current system and support a healthy Canadian broadcasting landscape.”
Corus’s fiscal third quarter, which ended May 31, is being compared to the equivalent 2025 period, which consisted of ad spending related to the federal election and deep playoff runs of certain western Canadian NHL teams — namely, the Edmonton Oilers and Winnipeg Jets. These losses have been offset by cuts in services and other “efficiency” measures.
Television advertising revenue was down 20 per cent to $120.3 million against the equivalent period last year. Subscriber revenue was $96.5 million, down 13 per cent. Total television revenue was down 16 per cent to $229.5 million, while radio revenue was $20 million, which was down 15 per cent.
Overall revenue was $249 million, down 16 per cent in this fiscal quarter, compared to the equivalent period.
Profit was down 53 per cent to $29 million. Television profit was $30 million, down 52 per cent, and radio profit was down 20 per cent to $4 million.
