Canada’s state broadcaster lost 18% in ad revenue last year and is seeking to find “additional funding” to offset the loss.
According to Blacklock’s Reporter, the CBC Corporate Plan Summary 2021-2025 noted the network’s cash flow struggles.
“Advertising revenue from conventional TV will continue to be under pressure,” wrote CBC management.
The CBC also noted that “without additional funding, program spending in future years will have to be reduced to match available resources and some services will have to be reduced.”
CBC receives $1.2 billion a year in taxpayer dollars annually, which is its main source of income. Last year, the broadcaster reported a $204.8 million decline in advertising revenues when compared to the year prior.
In their plan, the CBC bet on a surge in revenues from the Tokyo Olympics but it has yet to be seen whether the network’s dwindling viewership has matched its hopes.
“The projections are based on a series of assumptions pertaining to key factors, e.g. the economy, media industry, rules and regulations, that are difficult to predict and are beyond our control,” the plan claimed.
“Any changes to these factors may cause actual results to differ from the projections over the planning period.”
In recent years, CBC has struggled with dwindling viewership and retaining a sizable audience. Last year, it was revealed that in 2019 CBC-TV viewership fell below 4% for the first time in history.
Although the CBC’s popularity and financial viability continues to fall into the gutter, the Trudeau government has indicated that it may increase “funding support” for the ailing network.
An April 20 briefing note titled Funding Support For The CBC, claimed that the government had concerns about the “immense pressure” on the broadcaster’s finances.