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DB's avatar

I dusted of my bean-counting skills and reviewed the CBC's annual report and CRTC submissions. My conclusion is that the CBC is a bloated, poorly run organization. Facts to support that conclusion include:

1) CBC English TV averages 108 employees per station, CTV 49. The difference is not spending on news as CTV spent $153M on news while the CBC spent $50M.

2) CBC English TV spent $40M on Sales & Promotion which generated $72M in advertising revenue. CTV spent $44M on Sales & Promotion and had $513M in advertising revenue. Put another way, CTV spent 8.6% of its advertising revenue on Sales & Promotion - the CBC spent 55.6%.

3) CBC's Trade Receivables represent 4 months of advertising and subscriber revenue. That indicates a "pay us when you feel like it" attitude in the collections department.

4) CBC's expenses increased from $493M in Q3 to $574M in Q4 (Jan 1 to Mar 31), an increase of $81 M (The increase was $65M in 2023). CBC's explanation was "Operating costs tend to be higher in the fourth quarter as the Corporation incurs costs preparing for the fall broadcast season and completes project deliverables due by the end of the fiscal year".

The CBC does not explain what costs are incurred for the fall season or what projects must be completed by the end of the fiscal year. Is there a lot of travel? Fancy get togethers to celebrate the fall schedule? Are costs related to cancelled shows and failed pilots written-off in Q4? Is this an accounting issue where costs aren't booked until Q4? Or do they look at their budget and see they have money left so they go on a spending craze in order to use up their budget? My bet is a spending craze.

5) The Rogers/CBC HNIC deal is an epic failure for the CBC. Rogers gets full use of the CBC's network, gets 100% of the advertising revenue, and pays the CBC nothing. The only benefit the CBC gets is plugs for its shows during HNIC.

6) The CBC's 2023/24 financial results were only released last week - that's more than 6 months after their year end. The audit was completed almost 3 moths after year end. The financial results should have been audited and released by the end of April - one month after year end. Virtually every public company does this.

7) The CBC has a number of key performance indicators (KPIs) which they often miss. How do they handle these misses? Do they replace people? No, they lower the target for the following year.

With problems like these, I don't see how the CBC can be reformed. If we want a public broadcaster, I think we need to scrap the CBC and start over.

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Luke deGruchy's avatar

Wow! So far a strong majority of your readers want the CBC to get the Milei chainsaw treatment.

The last part of your column nicely links to the first. A large minority of Canadian see the CBC is biased and want it refunded. Susuki and Mansbridge want to pour tons of fuel on the fire, counterproductively proposing to make it MORE biased, making this outcome even more likely.

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