Bill Doskoch: Media, BPS*, Film, Minutiae

Curated knowledge, trenchant insights & witty bon mots

CBC wants $400M to go ad-free

Lede: “CBC/Radio Canada has submitted a position paper to the federal government proposing the public broadcaster move to an ad-free model, similar to the one used to pay for the BBC in the United Kingdom, at a cost of about $400 million in additional funding.”

From the CBC (“CBC/Radio Canada asks for $400M in increased government funding to go ad-free“):

“We are at a critical juncture in our evolution, continuing to operate under a business model and cultural policy framework that is profoundly broken,” said the CBC’s document, released on Monday afternoon.“At the same time, other nations are moving their cultural agendas forward successfully — and reaping the benefits of strong, stable, well-funded public broadcasters.”

The additional money CBC is asking for would largely be “replacement funding” if the media organization eliminates advertising. The proposal requests $318 million to replace advertising revenue: $253 million in lost ad sales plus $105 million to “produce and procure additional Canadian content” to fill the programming gaps in their absence. CBC is also asking for $100 million in “additional funding of new investments to face consumer and technology disruption.”

However, the proposal notes that removing ads will also result in savings of $40 million in the cost of selling advertising.

Total government funding for CBC would equal an investment of $46 per Canadian every year — up from the current $34 per Canadian it currently receives, the document says.

Two-thirds of the ad revenue given up by the CBC, the proposal argues, “would migrate to other Canadian media, including private TV and digital, for a net gain to them of $158M.”

Mon, November 28 2016 » Main Page, Media