BROADCASTING 2008: REPORT ON THE INDUSTRY Highlights Broadcasters’ Tremendous Support to Communities

Ottawa, November 3, 2008 - Launched today at the CAB 2008 Convention, the second annual edition of the Canadian Association of Broadcasters’ Report on the Industry looks at the economic, social and cultural contributions of the private broadcasting industry in Canada – but begins with this industry’s laudable and ongoing service to the communities of Canada.

Radio and television stations take tremendous pride in contributing airtime and volunteer hours, raising audience and station donations and airing public service announcements (PSAs) for a wide variety of charitable activities. The total value of pledges and PSAs reached $314.5 million over the past year while the time volunteered by employees – on-air personnel and others – totaled more than 230,000 hours.

“Canadian private broadcasters’ commitments to their communities have always been central to their operations,” said CAB President and CEO Glenn O’Farrell. “Our survey of members, carried out in fiscal year 2007-2008, provides quantifiable and reliable data on private broadcasters’ tangible and intangible examples of corporate social responsibility, all willingly given. Our members are proud of their involvement and of the tremendous impact they have on their communities.”

Broadcasting 2008: Report on the Industry presents research and data – some exclusive to this Report – from the CAB and a number of other sources, to build a factual summary of the industry overview of the private broadcasting industry in this country.

According to the document, broadcasting accounts for 16% of the cultural sector’s GDP and is also one of the three largest cultural subsectors in terms of job creation, representing 9% of direct employment in cultural industries.

Moreover, in spite of the fact that the advertising market is highly competitive, and is becoming increasingly fragmented, more than one-third of total ad spending in Canada goes to television and radio, and television claims a greater share of ad spending than any other medium.

Looking at the availability of TV services on a per capita basis, Canada’s broadcasting system is remarkable, with viewers enjoying more choice than people in most other television markets. Canadians have three times as many TV choices as people in France and more than seven times as many choices as people in the U.S. Canadians turn first to Canadian TV and radio with 66% of all television viewing in Canada to private conventional, specialty, pay and PPV television, and about 80% of radio tuning in Canada goes to Canada’s private broadcasters.

The Report also points out that private broadcasters contribute to Canadian content through their Canadian Content Development payments (radio) and their expenditures on Canadian programming (TV). These contributions total $1.6 billion in 2006-07, more than 25% of the industry’s total revenues. In comparison, BDU contributions to Canadian content via the Canadian Television Fund, other BDU funds, and cable community channels represent 5% of total BDU revenues.

With regard to copyright, the total hours tuned to music formats have declined in five years, the cost of music has increased as the copyright burden for radio is greater than ever before. The Report observes that copyright payments, however, are increasing and multiplying to the point that they no longer reflect any form of fair value exchange between the radio and music industries.

It is important to note that this report reflects financial data for the broadcast year ending August 31, 2007, and does not take into account recent economic changes that have occurred since that date.

The Canadian Association of Broadcasters is the national voice of Canada’s private broadcasters, representing the vast majority of Canadian programming services, including private radio and television stations, networks, specialty, pay and pay-per-view services. The goal of the CAB is to represent and advance the interests of Canada’s private broadcasters in the social, cultural and economic fabric of the country.

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For more information, please contact:

Susan Tolusso
Director, Communications
(613) 233-4035 ext. 331
(stolusso@cab-acr.ca)
Mobile : 613-796-4462