Canadian Broadcasting Corporation (CBC)

Quick Facts

  • Established: 1936 (Crown Corporation)
  • Owner: Government of Canada
  • Previous Names: Canadian Radio Broadcasting Commission (CRBC), 1932-1936
  • Industry: Broadcasting
  • Website: cbc.ca

Background

The Canadian Broadcasting Corporation has a rich history, largely in radio, bringing information to people all across the world’s second largest country by area. With the advent of television, the CBC was a pioneer of Canadian film and television production, as well as a broadcaster. Often, for many rural Canadians, the CBC was their only connection with the rest of the country.

CBC Television, on the sum, is a profitable business. CBC Newsworld makes a profit. CBC’s new digital channels (Country Canada and The Documentary Channel) are probably too new to make a profit, but likely will over time. The main CBC stations are hit and miss. Hockey Night in Canada (HNIC) is an extremely lucrative moneymaker for the CBC network.

CBC Radio is not profitable since there are no advertisements. It is subsidized by profits from television assets, and by taxpayers.

CBC Radio has a substantial number of very loyal listeners. CBC television viewers tend to be fickle channel surfers. Sadly, the highest grossing revenue producers for the main CBC channels (with the exception of HNIC) are shows imported from America.

The Privatize.CA Conclusion

As with most Government initiatives, this one had good intentions and arguably admirable results.

Since 1936, however, we have evolved into a thousand-channel digital universe. The Internet has made information more readily available to Canadians almost everywhere. Commercial satellite radio services are becoming increasingly popular.

There is no question Canada has changed, and the CBC has too.

Right now, the main CBC television network is virtually indistinguishable from its CTV, CanWest Global, or CHUM competitors. These are privately owned, and typically profitable. The main CBC network should be privatized or sold to a competitor.

BCE, owner of CTV and the Globe and Mail, indirectly run CTV Newsnet (headline news) and ROBTV (business news). CBC runs a CNN-style news station called Newsworld. Why is this government-owned? Dictatorships have government-owned news channels, not thriving democracies. CBC should sell of Newsworld to a company other than BCE. Furthermore, limits to foreign news channels should be lifted by the CRTC (the regulator). Canadians should have the freedom to choose to watch news from anywhere they want in the world. The current limits to this freedom are illusory, anti-democratic and archaic.

CBC Country Canada could simply become “Country Canada”, and could be sold. The Documentary Channel is a joint venture that should have little problem finding a new investor.

Most cities with CBC radio stations also have commercial stations that are mostly profitable. However, many people love CBC Radio, and it has become something of a “sacred cow” in Canada. Therefore, privatizing or dismantling and selling off the licenses and properties would likely result in an overwhelming public outcry.

Instead, the CBC Radio organization could receive new life as a charitable foundation resembling the National Public Radio (NPR) network in the United States. Funding could be phased out over a multi-year period, allowing for philanthropists, listeners, corporations, interest groups, and others to pick up the slack.

If people truly love the CBC as much as they say they do, then this could prove very successful, and a well executed financial plan could potentially “free” the organization from having to beg governments for money ever again.

CBC could also offer “memberships” which include benefits such as printed program guides, maybe a CBC Radio magazine, special online access, “I support” accessories, etc.

If, after the period of time passes the CBC has not managed to replace its required funding, the organization would still have other options, including seeking advertising revenue. Licenses in some areas where there is duplication might be sold to commercial interests to fund bursaries to provide base financing for the rest of the organization. Best of all, fundraising drives could be held right on the radio.