CBC losses $36M in 2010: CRTC
By QMI Agency
http://cnews.canoe.ca/CNEWS/MediaNews/2011/06/03/18236001.html
Canada's national public broadcaster lost nearly $36 million last year, according to recently published figures from the Canadian Radio-television and Telecommunications Commission.
The Canadian Broadcasting Corporation posted a pre-tax loss of $35.4 million for the year ending Aug. 31, 2010, mainly due to rising costs. In 2009, it lost $22 million.
The CBC gets a $1.1-billion annual subsidy from the federal government and operates in many less profitable and remote regions of the country.
"It all seems like a losing proposition," said Stephen Taylor, director of the National Citizens Coalition, a taxpayer advocacy group.
The NCC wants to see the CBC privatized to ensure an equal playing field in Canada's TV industry.
Taylor said the CBC is taking ad dollars that would otherwise go to private players.
"It's taking essentially the juice out of the competition," he said. "Market-wise, that doesn't help. It doesn't help build better television."
Total CBC revenue was up 1.4% to $1.24 billion from just under $1.23 billion in 2009.
"The increase in our revenues is mainly attributable to our performing TV schedules, the broadcast of the FIFA World Cup and increasing revenues for our digital services," said CBC spokesman Jeff Keay.
The loss demonstrated on the CRTC statements is a standard accounting loss, Keay said. "On a budgetary basis the CBC/Radio-Canada runs a balanced budget each year."
Last year, CBC brought in $338.8 million in advertising revenue, up 14.1% over 2009. But expenses were also 2.79% higher as the CBC spent more on programming and promotions, including print ads aimed at boosting public confidence in the broadcaster.
Last month, CBC/Radio-Canada denied a QMI Agency request for more information on how much it spent on to celebrate its 75th anniversary.
Overall, sales and promotional spending was up 16.53%, though administration and general expenses were down 10.69%.
The CBC spent more on programming than it made on programming at $69.6 million versus $66.4 million.
The broadcaster spent nearly 11% less on staff salaries in 2010 than it did in 2009, paying out $540 million to roughly 6,227 employees. The average yearly pay for a CBC staff member was $86,717.
The CRTC also published data on Canada's private broadcasters.
The group, which includes BCE's CTV, Shaw's newly acquired Global and Quebecor's TVA saw high single-digit and double-digit revenue gains as advertisers ramped up spending and pay-TV subscribers spent more money.
The gains however did not translate into more jobs in private-sector broadcasting. The conventional TV workforce shrank by 6.3% in 2010, while the pay and specialty services workforce remained relatively stable.
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