Speeches and Interviews
December 4, 2009
Speaking Notes for Hubert T. Lacroix, President and CEO, CBC/Radio-Canada, at the CBC/Radio-Canada Open House, Vancouver, British Columbia
(Please check against delivery)
Thank you, Tim.
It’s my turn now to welcome you to our brand new CBC/Radio-Canada Broadcast Centre. I hope that you’re as excited as I am about what this means for your city, your province, and for public broadcasting in Canada.
I’ve been in this job for almost two years now. During that time, I’ve made a point of traveling to as many places in this country as I can to meet our CBCers but also to meet as many Canadians as I can – the people we all work for. It’s vital for me to get a pulse on what’s happening in the communities, and I can’t get that from sitting in my office. That’s why I’m here today.
More than television and radio
The first thing I want you to tell you about is how far CBC/Radio-Canada has come in 75 years, pioneering new services and new platforms in our constant pursuit to meet your evolving media needs. As you can tell from our surroundings, we are definitely not the same old CBC/Radio-Canada.
Today, we offer you a comprehensive range of services, from television and radio to the Internet and satellite radio, from digital audio to streaming video on mobile devices. We give you the content you want, when and how you want it.
Let me show you what I mean.
So now you know: all of our services in total for $34 per Canadian per year.
Let me put that into context. I pay $187 a month to my cable service provider, which translates into over $2,000 per year. Think about your bill now, and then consider that all of the services that CBC/Radio-Canada offers you and me – on television, radio, the Internet, satellite, iPod and mobile devices, in two official languages and across six time zones – cost us less than three dollars per month. I am definitely biased but will still suggest to you that you have there a pretty good value proposition.
A year of paradox: unprecedented success despite financial crisis
Last year, 2008–2009, was a year of paradox: on the one hand, we achieved unprecedented success. On the other, we faced a daunting financial crisis that demanded some extremely difficult decisions.
Let me start with our successes.
While other conventional broadcasters were struggling with shrinking audiences, CBC Television increased its share in prime time, beating for the first time Global's predominantly American prime-time schedule to become the second-most-watched network in Canada.
Télévision de Radio-Canada maintained its position in prime time, despite its competitors’ many reality shows and the plethora of specialty channels in its environment.
Our radio services never had better ratings, and the strength of these conventional services carried over to our Web services. In 2008–2009, our Internet sites drew six million visitors and provided over two million podcast downloads every month.
Our success has continued into the current season, with Heartland, Rick Mercer Report, Hockey Night in Canada and Dragons’ Den all drawing million-plus audiences regularly. In addition, Battle of the Blades was one of CBC’s biggest hits in recent memory – between 1.5 and two million Canadians followed this competition each week.
And let’s not forget the renewal of CBC’s news operations. This was the most significant change ever undertaken by CBC News. Over 1,000 people in CBC news were reassigned in the process. It was the result of the single, biggest audience research project ever undertaken by CBC. Canadians told us what they wanted and we listened. And you should know that many of the changes we instituted were pioneered right here in Vancouver.
I’m very proud of what we’ve accomplished.
The $171 million shortfall and the recovery plan
Yet, despite this success, we still had to stare down and deal with a serious financial crisis. Why?
Simply put, we and other Canadian conventional television broadcasters depend on advertising revenues to survive: in our case, between 40 and 50 per cent of our television budgets depend on them, and those ad revenues have been on a steady decline since well before the global economic downturn hit us in mid-2008. The recession simply accelerated the problem.
And so, we entered fiscal 2009-2010 facing a $171 million shortfall.
To deal with it, we implemented a financial recovery plan. You may have heard about its consequences. It included the elimination of approximately 800 full-time positions across the Corporation, including 41 here in Vancouver. That was the toughest part: letting go of very good, engaged and experienced CBCers. Then, there were the reductions and cancellations to our programming schedule – many of you will have felt the loss of your local Living daytime show, for example. We also implemented permanent reductions in discretionary spending, and compensation freezes or reductions for senior management. Finally, we had to sell some of our assets to generate cash to meet some of our liabilities, including close to $50 million in severance and other like charges.
It was a very tough year that demanded many difficult decisions and choices. But we are still standing, and standing proud, and we are confident that we will be in a position to balance our budget at year-end if we get, as expected, the last Government approvals which we need to complete our asset sales transactions.
Pushing forward: maintaining our strategic direction
Our financial situation may have slowed us down, but it has certainly not stopped our progress towards becoming an even more relevant and dynamic national public broadcaster.
Our strategic direction for the future has three pillars.
First, we must continue to be THE home of Canadian programming. That means being the most important creator and broadcaster of programming that shapes the Canadian experience, that tells Canadian stories, that reflects our sense of humour, that showcases our people, our communities, and our geography.
Second, we must deliver our content across all media platforms, making it available to audiences whenever, wherever and however they want it. Look at how our kids are consuming their media. Sure, they still sit down in front of the television every once in a while. But more often than not, they’re on their Smartphones, iPods, laptops. How long have those devices been around? It boggles the mind to think of how quickly things have changed, but we are committed to staying in that race and leading change.
The third and last pillar is our ongoing commitment to remaining deeply rooted in Canada’s regions. Our connection to the regions is an essential part of our mandate. That’s why we spared the regions as best we could when making our cuts last March: even though they hurt and were felt, only 14 per cent of the reductions were made in the regions.
What we are doing here in Vancouver, in this building, is a great example of our vision of public broadcasting in a new age.
First is the integration of our media lines. English and French, news and current affairs, television, radio and the Web, are all working together in a new state-of-the-art newsroom. It’s a model that’s being implemented in other regions across the country. It’s a big change and a big deal. It means better collaboration and resource sharing, more efficient news gathering, and quicker reaction to breaking stories. Ultimately, it means better service for Vancouver. You’ll see what I mean when you tour our facilities later.
Second, and just as important, is the building itself, which was designed for greater interaction between the public broadcaster and the community it serves. This place will serve as a cultural hub for the city for decades to come.
Towards a sustainable future
I mentioned earlier that we managed to achieve remarkable success with our programming in spite of failing ad revenues. But this is not a feat that we will be able to repeat forever. Fundamental issues need to be resolved. Unless we’re able to develop a sustainable, long-term financing model, CBC/Radio-Canada’s ability to fulfill its mandate remains seriously at risk.
Recent initiatives from the CRTC and the Government will help address some of the challenges we face. I’m referring here to the new Canada Media Fund and the Local Programming Improvement Fund.
But while these are encouraging steps in the right direction, they do not solve the fundamental problem that’s plaguing the system. That final and most critical part of the solution now rests in the hands of the CRTC.
Value-for-signal. You’ve surely caught wind of it by now. The PR war between the broadcasters and the cable companies would have been tough to miss.
Bottom line, this is a simple issue – a delicate one to solve – but a simple one. Cable and satellite companies are taking our signals for free and re-selling them to you for a profit. Show me another industry where this happens. It doesn’t make sense. This free-riding has to end.
Now I don’t blame you if you get the impression that this isn’t about you, the consumer, but rather about two industries squabbling publicly over your money. Please believe when I tell you that it’s much more fundamental than that for us.
Yes, this is a money issue. But, more importantly, it is a culture issue. It’s imperative that Canadians continue seeing themselves and their lives reflected on television. Local TV really does matter. What we’re doing here in Vancouver matters. But also what we do in Regina, Windsor, Québec City, and St. John's, Newfoundland. That’s what we’re fighting for.
As I said, at the end of the day, the issue is quite straightforward.
In a media landscape that’s both chaotic and exciting, never before have Canadians felt such a strong need to see themselves – their lives, their values and their realities – shared and reflected. Now there’s a leadership role the public broadcaster is ready to play.
Today is your opportunity to see how we do that. I hope all of you will take the time to tour our facilities, meet our people and ask your questions. Discover for yourselves what this amazing combination of cutting-edge tools in the hands of talented and dedicated staff will be able to do for this province.
And I certainly can’t leave without mentioning the great cause we’re supporting today. The Greater Vancouver Food Bank Society relies on your generosity to help feed up to 25,000 people around the city each week. It’s a pillar of the Vancouver community, and it’s an honour to be able to help their cause. Food Bank volunteers will be ready all day to accept donations at pledge stations located throughout the Broadcast Centre. Please give generously.
And now is your chance to ask us your questions. CBC/Radio-Canada belongs to you, so it’s only fair that you get the chance to ask us about what’s on your mind. It’s what we’re here for this morning, so fire away.
Thank you.
