A new twenty-seven page paper from the CBC entitled "Why Advertising on CBC/RadioCanada is Good Public Policy," argues that advertising does not detract from the public broadcaster's mandate and that there is no good public policy reason to eliminate advertising from its television services.
Currently CBC/Radio-Canada’s ad revenues are just under $368 million in a total Canadian television advertising market of approximately $3.3 billion.
Advertising revenues currently account for about one fifth (18%) of the CBC's total revenues.
The CBC argues the elimination of advertising on CBC/Radio-Canada would have numerous negative consequences including a decrease in Canadian programming expenditures of almost $160 million annually.
Last year, CBC/Radio-Canada invested as much in Canadian programming as all conventional private broadcasters combined, almost $700 million in broadcast year 2010.
In the document, Nordicity argues the elimination of advertising on CBC/Radio-Canada could jeopardize the corporation’s annual $1 billion subsidy because it would might no longer be able to meet the objectives of the Broadcasting Act and CRTC expectations.
"Private and public broadcasters compete on many levels in our mixed public-private system, but each has a contribution to make," said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada. "The national public broadcaster has access to advertising revenues to help meet Broadcasting Act objectives, while private broadcasters have, most notably, access to public subsidies to help them meet Canadian content requirements."
"The elimination of advertising revenues would seriously compromise the Corporation's ability to fulfill its mandate and roll-out initiatives planned under 2015: Everyone, Every Way," added Lacroix.
The study was released today by CBC/Radio-Canada in the context of the International Institute of Communication's pre-conference on public broadcasting, organized alongside the Corporation's 75th anniversary celebrations.
Read " Why Advertising on CBC/RadioCanada is Good Public Policy " and then discuss in Digital Home`s Canadian Television Industry / Channels and Providers discussion forum.