Speeches and Interviews
February 13, 2003
Change. Challenge: CBC/Radio-Canada's Place in Today's Broadcasting Environment
Notes for remarks by Robert Rabinovitch, President and Chief Executive Officer CBC/Radio-Canada, to the Broadcast Executive Society, Toronto, Ontario
Thank you Doug.
I'd like to begin by thanking the Broadcast Executives Society for inviting me to speak.
The last time I had the chance to address many of you was at the Canadian Media Director's Council Annual Conference in April 2001.
Then, our topic was convergence and what it meant for broadcasting. I explained how CBC/Radio-Canada was capitalizing on technical and content convergence.
In fact, technical convergence has opened up many opportunities for the public broadcaster. Many of our correspondents now report in English and French on Radio, Television and the Internet. New technologies are making it possible for us to improve programming and leverage our funding further.
Having now passed the midpoint in my term as President and CEO, I am very pleased to have this opportunity to update you about the exciting changes we've been making to strengthen CBC/Radio-Canada's capacity to serve and connect Canadians, changes to our programming and to the way we do business, changes to reinforce our role as a national public broadcaster in a highly competitive broadcast universe.
A Challenging Competitive Landscape
I certainly don't need to remind any of you that these are extraordinary and challenging times.
Over the past two decades, globalization, market liberalization and sweeping technological change have transformed virtually every sector of the Canadian economy and every aspect of Canadian daily life.
Nowhere is the impact of these sweeping changes more apparent than in broadcasting.
The long-heralded 500-channel, multi-media universe has taken shape.
To some degree, it has delivered what it promised – more choice in information and entertainment, and in the means through which it can be accessed.
Of course, for broadcasters and advertisers like us, "choice" has been a mixed blessing. Yes, it has opened up exciting new ways to reach audiences and consumers. But it has also given us "audience fragmentation" and the gradual erosion of audience share.
As we look for new ways to capitalize on the opportunities that the digital world has created, the pressures to cut costs, preserve market share, and tap new sources of revenue have never been greater.
CBC/Radio-Canada is not immune to these pressures.
We too need to remain relevant to our audiences.
We too must squeeze maximum value out of our operations and investments – taxpayers demand value for their spending.
We must form partnerships and strategic alliances with others in the broadcasting spectrum.
CBC/Radio-Canada must also work with advertisers and sponsors to generate additional revenues. And, we have the added challenge of finding the right advertising mix that reflects our place as a public broadcaster.
Public Broadcasting: As Relevant As Ever
In the kind of environment I've just described, a strong public broadcaster is even more essential than ever.
During last Fall's celebrations of the 50th anniversary of television in Canada, Canadians tuned-in and logged on for special programming and turned out in tens of thousands for community events across Canada.
In doing so they confirmed yet again how important CBC/Radio-Canada is in their daily lives Poll after poll shows that 9 out of 10 Canadians see CBC/Radio-Canada as an essential public service. For them, public television and public radio wasn't just a good idea half a century ago; it's still a good idea today.
This is not only true for Canada, but for countries around the world. As clutter has increased, there has been a resurgence in public broadcasting around the world.
It is widely accepted that public broadcasters exist to provide the public space that supports both the democratic and cultural process that affirms citizens' sense of society.
We exist to help people connect, to make citizens better informed, to promote creative industries and showcase creative expression, to help people relate to their fellow citizens and to extend their horizons to the rest of the world.
As Canada's national public broadcaster, CBC/Radio-Canada has a responsibility to Canadians:
A responsibility to provide distinctive and ambitious programming that connects Canadians and reflects Canada as a whole and in all its regional and cultural diversity.
A responsibility to air quality programming in both English and French, on Radio, Television and the Internet. A responsibility to entertain, enlighten and enrich Canadian lives. And, a responsibility to achieve our goals in a cost effective manner – to be as efficient as any private broadcaster.
With so much choice, why is it that there is so little Canadian dramatic production?
We do know the answer. The business case for Canadian production is not there. The numbers simply do not encourage investment in Canadian programming.
One million dollars to produce an hour of television that will attract under $100,000 in advertising revenues. That's less than a quarter of what a slick American simulcast will garner for a fraction of the price.
From a bottom line perspective, it's simply uneconomic for the private sector to produce distinctively Canadian television programming that focuses on Canadian stories.
This will continue. Canadians like American television with its high production values and we cannot build a business case that is viable. Sure we can pay private broadcasters through tax incentives and grants to produce Canadian content but they will always do what is in their economic interests. And so they should.
Public service broadcasting is increasingly seen as the most important tool for maintaining and fostering a national identity.
Even for larger, more distant countries like the U.K., France, Australia, maintaining a strong national identity and fostering strong connections between citizens is THE key to addressing the new pressures that come with living in a global village.
In this period of impending war for example, only CBC/Radio-Canada can afford to have and will have Canadians in the theatre of war to give Canadians a Canadian interpretation of the events and explain how these impact on their lives.
This war we expect will be extremely expensive to cover. But it is our responsibility to be there for Canadians.
New Strategic Directions
Almost three years ago, we at CBC/Radio-Canada recognized that we had to re-define ourselves in the new competitive environment. We needed to make our networks even more distinctive and less commercial – a real alternative and complement to Canada's private broadcasters.
We've made programming changes across all media lines to achieve these goals.
Programming Changes
We have literally transformed CBC Television over the past few years.
We've redefined the way that national and regional news programming is broadcast. We've revitalized our flagship news program The National and added innovative programs such as Canada Now, CBC News Sunday and Disclosure.
We've increased children's and youth programming by one-third (innovative, commercial-free with thirteen new series).
Our arts programming has been expanded with Opening Night – a two-hour prime-time showcase for the performing arts – again commercial free.
We've boosted regional representation and presence on network programming.
And we've re-balanced our sports coverage to give greater profile to the outstanding accomplishments of Canada's amateur athletes at the national and international levels.
And while our radio services are achieving record high numbers, we are renewing these services. We want to increase the extent to which they are connected to the lives of listeners in communities across the country.
Yesterday, we announced a fundamental repositioning of French Television -- including RDI and ARTV -- to focus on being first and foremost a public service.
We have also made headway in cross-network, cross-platform collaboration. Programs like the Olympics, The Last Chapter / Le Dernier chapitre, Random Passage / Cap Random and Trudeau.
Operational Changes
Our entire programming strategy is built on the premise that we need to channel as much funding as we can into the production of Canadian programming of the highest quality.
And that money can only come from new efficiencies and methods of operations.
Optimizing real estate usage
We have been examining all non-core activities for potential sources of revenue, extracting value from "bricks and mortar", so to speak, to provide resources for content production. So far, the strategy is paying off.
By selling and renting surplus real estate in Toronto, Regina and Montreal, for example, we achieved $5 million additional annual revenues for re-investment in programming.
In Ottawa, Edmonton and Quebec City, we're bringing all media lines under one roof and achieving savings by optimizing our space, dramatically reducing space needs, and sharing technological investments. We will also increase our visibility in these cities.
At the same time, we are increasing our news gathering abilities by opening new news bureaus across Canada.
We see the benefits everyday in our increasing foreign journalistic presence, where well-known Canadian reporters like Don Murray, Patrick Brown and Céline Galipeau deliver their international reports in English and French, for our Radio, Television and Internet audiences.
As such we are able to reap the benefits – both financial and creative -- of cross-media cooperation and sharing of resources.
Adopting new technologies
Our Centre de l'information in Montreal is an example of how we are taking advantage of new technology and new work methods to bring greater value to Canadians.
By combining and digitizing resources for the gathering and production of news for both French Television and RDI, this new facility enables us to leverage maximum value from shared resources.
In many other places across the country, we are employing new technologies to improve on-air presentation.
In Windsor, for example, we are using Parker Vision technology to integrate studio production activities under the control of a single operator, rather than multiple professionals. The result is a seamless, more efficiently produced on-air product.
Across all our 18 media platforms – our national English and French television networks, our radio networks, CBC Newsworld and RDI, Radio 3, on wireless and the Internet – we are working hard to maximize the full potential of content management.
And this is just the beginning. We have a series of initiatives to generate revenues and enhance efficiency from within. For example:
- We are examining non-core activities to find better ways to operate:
- IT
- HR
- Finance and Administration
- We are implementing an integrated system to manage contracts, program inventory, marketing and sales.
- We are adopting new technologies to improve signal delivery - promising savings of close to $10 million/year.
- We are evaluating outsourcing our transmission maintenance services.
- We are looking at different ways, perhaps in partnership, of managing our mobiles.
- We are developing new ways of feeding our TV stations that will save us $5M per year.
- We will continue to look at different arrangements to lever income from our real estate.
And we will continue. No stone will remain unturned. There are no sacred cows, nothing is sacrosanct as we pursue efficiency and enhanced programming through the use of new presentation methods and technology.
Open for Business – Strategic Partnerships
Another important element of our new strategy is our openness to strategic partnerships and alliances.
We take great pride in our three new specialty Television licences launched in the fall of 2001 - all resulting from partnerships with private sector participants. All are designed to support our mandate:
- ARTV (in partnership with BCE among others);
- The Documentary Channel (with Corus and NFB); and
- Country Canada (started with Corus as a service designed to boost our capacity to serve rural Canadians and to be a second window for our programs).
As well, we have set up a new Merchandising Division with an expert in the field, David Hainline, to develop retail sales of CBC products and brand, such as Hockey Night in Canada. We will extend our reach, reinforce the CBC/Radio-Canada brand and generate new sources of revenue.
Across the country, we are entering into new partnerships with our affiliates to better serve Canadians and make sure they have access to all of CBC/Radio-Canada programming.
This strategy has led to the acquisition of former CTV affiliates in Ontario and Saskatchewan.
In the Quebec market, our new arrangement with Cogeco has resulted in the creation of our own newsrooms in Trois-Rivières, Sherbrooke and Chicoutimi/Jonquière, as well as the broadcast on these stations of 100% of Radio-Canada Television's schedule.
And we are partners with La Presse in Voilà!, a TV news and listing weekly with a circulation of over 650,000 per week.
We are also very proud of our program production deals with Alliance Atlantis and other broadcasters.
These are just a few examples of how strategic alliances and partnerships are helping us to reach new markets, both at home and abroad, to gain access to new distribution channels and to stretch our public funding as far as we can.
Open for Business – Advertising
Our partnership efforts apply to our advertising activity as well.
Obviously the paradigm of advertising effectiveness has changed as much as broadcasting itself. (Forrester Report) Personal video recorders are beginning to have an impact on audience delivery. We must all look at different methods of measuring and reaching audiences.
For example, The National with Peter Mansbridge is seen four times between 9 p.m. and midnight, on CBC Television and CBC Newsworld. Yes we cannibalize the 10 p.m. slot, but the reality is no longer just about how many people see a particular ad in a particular time slot. It's now a question of how many people are reached over multiple platforms over a period of time. (example of ABC marketing)
CBC/Radio-Canada's movement towards a clearly differentiated multi-media brand brings extraordinary opportunity for advertisers. And, let me be clear here – advertising has a critical place on CBC/Radio-Canada schedules. Ad revenues remain vital to our success.
Our distinctive programming reaches customers you need to reach. It's harder to reach people who don't watch a lot of television.
We are committed to working with advertisers to find the right mix for their campaigns.
An excellent example of this approach was evident in CBC's partnership with Home Depot. We teamed up Hockey Night in Canada and Home Depot for a "Backyard Rink" contest that invited Canadians to send in pictures and stories of their backyard rinks.
The response and stories were phenomenal and exceeded our expectations and we will announce the winning submission in two days on February 15th, Hockey Day in Canada.
Conclusion
So, there you have it.
CBC/Radio-Canada in 2003 is a changed place.
Our commitment to maintaining a public space and a distinct Canadian voice in a world dominated by foreign programming is unwavering.
We have strengthened our expression of Canada's diverse regional and cultural perspectives. We have boosted our support for Canadian talent, voices and creativity. We have extended our reach to new audiences on new platforms.
We continue to buttress our operational and financial position so that we can respond to rapidly changing market conditions and audience needs.
As we all look to the horizon, change and uncertainty will continue to have a major impact on our businesses. The only thing that is certain is that there will be change.
As our business models come under pressure and as new opportunities open up, clearly none of us can afford to be static, we must all anticipate and respond rapidly to the shifting landscape.
CBC/Radio-Canada is no exception. We will continue to change and respond, to look for innovative new ways to achieve our goals, while remaining focused on our ultimate goal of connecting Canadians in an increasingly complex world.
We will remain a key pillar of Canadian broadcasting – a firmly established, clearly distinguished, independent voice for Canadians.
Thank you.
