The Broadcasting Environment and CBC/Radio-Canada’s Audience Performance Prepared for Hubert T. Lacroix’s Appearance Before the Heritage Committee on April 27, 2009 Ottawa Table of Contents 1. Overview of the Broadcasting Industry 2. Financing the Broadcasting Industry 3. The English-Language TV Market 4. The Francophone TV Market 5. Emerging Technologies in the Video World 6. CBC Radio’s Audience Performance 7. Radio-Canada’s Audience Performance 8. Emerging Technologies in the Audio World 9. Internet 10. What the Public Says The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 1 1 Overview of the Broadcasting Industry 1. Overview of the Broadcasting Industry A $14.2 Billion Dollar Industry A mixed private/public system Employing some 53,000 Canadians Main sectors of activity include: The Relative Size of the Different Sectors of the Broadcasting Industry (Revenue Share) Television Radio Broadcasting 13% Radio Distribution (Cable & Satellite) TV Broadcasting 43% CBC/Radio-Canada (excluding Specialties) Total Revenue $1.6B Employees 9,857 Source: CBC/Radio-Canada Annual Report 2007-08, Staff at March/09 TV Distribution* 44% Source: CRTC *$2B of TV distribution revenue is paid to specialty TV broadcasters The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 3 1. Overview of the Broadcasting Industry Television: The Key Players Operating revenues totaling over $6.0 billion 22,000 employees Main players: Revenues - Television 1,681 CTVglobemedia 1,390 CBC/Radio-Canada CTVglobemedia CBC/Radio-Canada 945 CanWest CanWest 448 Astral Astral Corus Corus 420 Quebecor Rogers Rogers Québecor 368 300 Source: Private estimates based on CRTC Broadcast Policy Monitoring Report 2008, CBC/Radio-Canada Annual Return to CRTC The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 4 1. Overview of the Broadcasting Industry There Has Been an Explosion of Choice Increase in the Number of Television Services 438 349 282 43% Specialty Specialty 19% Conventional Conventional 1995 2000 2005 Source: Nielsen Media Research, BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 5 1. Overview of the Broadcasting Industry With Ownership Concentrated in Few Hands $5 Billion in Mega Mergers Approved in 2007 French Television RadioCanada English Television Other Other CBC Quebecor CTVgm Rogers Astral Shaw Astral Corus Cogeco CTVgm Quebecor Canwest Based on 2007 Television Revenues (excludes CBC/Radio-Canada appropriation) The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 6 1. Overview of the Broadcasting Industry Usage of TV Has Remained Strong, Despite the Growth of the Internet Weekly Per Capita Hours of Viewing to Television All Persons 2+, 1987-1988 to 2007-2008 26.3 27.2 27.0 27.1 20042005 20062007 25.4 25.4 23.7 25 21.9 22.0 22.0 21.5 21.4 20.9 21.2 20.9 22.6 22.0 22.3 22.0 22.6 22.6 19951996 19961997 19992000 Per Capita Hours 20 15 10 5 0 19871988 19881989 19891990 19901991 19911992 19921993 19931994 19941995 19971998 19981999 20002001 20012002 20022003 20032004 20052006 Source: BBM, Nielsen Media Research, Statistics Canada As of 2004-05, data are the results of a fusion of Mark II and PPM data. This has inflated per capita viewing over previous years The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 7 20072008 1. Overview of the Broadcasting Industry Radio: Providing the Local Connection Operating revenues totaling $1.8 billion Main players: Key Radio Players (Number of Stations) CBC/Radio-Canada 82 Astral 82 CBC/Radio-Canada Astral New Cap Corus New Cap 56 Rogers CTVglobemedia (CHUM) Corus 52 Rogers 52 CTVgm (CHUM) 34 Source: 2007 Broadcast Policy Monitoring Report The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 8 1. Overview of the Broadcasting Industry Deregulation Has Led to Growth Total Revenues and PBIT Margin of Private Radio % $1,600 25 Total revenues $1,400 PBIT Margin 20 $1,200 Radio Deregulated Millions $1,000 15 $800 10 $600 $400 5 $200 $- 0 1995 1996 1997 1998 1999 2000 2001 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance 2002 2003 2004 2005 April 22, 2009 2006 2007 9 1. Overview of the Broadcasting Industry And a Highly Concentrated Industry Which Became More so With Astral’s $1.1 Billion Purchase of Standard Radio (September 2007) Private Radio BEFORE Private Radio AFTER CTVgm CHUM Other Cogeco Cogeco Other Corus Corus Newcap Newcap Astral Rogers Rogers Astral + Standard Standard Based on 2006 Total Radio Revenues The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance Based on 2007 Total Radio Revenues April 22, 2009 10 1. Overview of the Broadcasting Industry There Has Been Some Slippage in the Usage of Radio Weekly Per Capita Hours Of Listening To Radio All Persons 12+, 1987 to 2008 25 21.3 20.9 21.4 21.6 21.5 21.1 21.6 21.2 21.0 Per Capita Hours 20 20.2 19.9 20.4 20.5 20.3 20.1 20.2 19.5 19.6 19.1 18.6 18.3 18.3 15 10 5 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: BBM (Fall Sweeps) The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 11 1. Overview of the Broadcasting Industry Distribution: 90% of Canadians Pay for TV Penetration of OTA and BDUs % 75 Cable/Satellite Distribution 90 25 Off-Air 1997-98 10 2008-09 Source: Nielsen Media Research, BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 12 1. Overview of the Broadcasting Industry 5 Companies Account for 90% of Subscribers Now the largest segment of the broadcasting industry A $6.1 billion dollar industry Major players: Top Canadian Distributors by Number of Subscribers (in 000's) Rogers Vidéotron Other 1,069 Cogeco 857 Bell TV Shaw / Star Choice Rogers 2,316 Star Choice 892 Cogeco Bell TV 1,838 Shaw 2,248 Vidéotron 1,692 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 13 2 Financing the Broadcasting Industry 2. Financing the Broadcasting Industry How Is the Industry Financed Subscription revenues are now, by far, the most important source Distribution (%) of Revenue Sources TV Subscription Revenues 13 The various sectors rely on different revenue sources 50 28 Government and Corporate Grants TV Advertising 9 Radio Advertising Note, this does not include the contribution of CTF and Tax Credits Source :Statistics Canada 2007 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 15 2. Financing the Broadcasting Industry Advertising on Conventional Television Is Flat and Expected to Decline Television Advertising Revenues 3,000 Actuals Forecast 2,500 Conventional TV Millions of $ 2,000 1,500 1,000 Specialty TV 500 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: TV Basics (1996-2007); CRTC (2008) and TD Newcrest forecast (as of January 2009) The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 16 2. Financing the Broadcasting Industry However, the Current Economic Crisis Has Hit Conventional Broadcasters Particularly Hard Growth of Conventional TV Advertising (Broadcast Year-to-Date Change vs Prior Year) 10.0% Broadcast Year 2008 Broadcast Year 2009 (YTD) 8.0% 6.0% 4.0% Conventional TV advertising struggled to grow in 2008 … 2.0% 0.0% -2.0% -4.0% … and dropped precipitously when the economic crisis hit. -6.0% -8.0% Source: TVB TSS Advertising Tracking Reports (Released April 2009 with broadcast (Sep. - Aug.) year to date (YTD) February 2009 results) The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 17 2. Financing the Broadcasting Industry Advertising: An Important Part of Our Funding CBC/Radio-Canada: A $1.6B Corporation 6% Parliamentary appropriation for operations (item not affecting current operating funds) 9% Additional non-recurring funding 5% Advertising and program sales Other financing income 56% 20% CBC Newsworld, RDI, Galaxie, and CBC Country Canada 4% Amortisation of deferred capital funding Revenues and operating sources of funds - CBC|Radio-Canada 2007-2008 (millions of dollars) The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 18 2. Financing the Broadcasting Industry But Our Advertising Revenue Has Weakened Advertising is vital to the operations of our television networks It represents 50% of CBC Television’s budget and 40% of Télévision de Radio-Canada’s And like other conventional broadcasters, CBC/Radio-Canada’s advertising revenue has weakened $1,800 CBC|Radio-Canada’s Advertising Revenues: 1990-2008 (Dollars in millions and in 2008 constant dollars) $1,600 $1,400 $1,200 $1,000 $800 $600 $458 $434 $375 $400 $310 $200 $1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance 2001 2002 2003 2004 2005 April 22, 2009 2006 2007 2008 19 2. Financing the Broadcasting Industry … While Our Appropriation Has Remained Flat for Many Years Our government appropriation has declined by almost $400 M since 1990 CBC|Radio-Canada’s Parliamentary Appropriation: 1990-2008 (Dollars in millions and in 2008 constant dollars) $1,800 $1,600 $1,569 $1,400 $1,200 $1,171 $1,006 $1,000 $800 $600 $400 $200 $1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 20 3 The English-Language TV Market 3. The English-Language TV Market Almost Three-Fifths of All Viewing Occurs Within the Digital Universe Distribution Of Viewing to English TV by Viewing Environment Monday-Sunday, 24 Hours % 24.3% 12.7 DTH (Satellite) 24.5 11.6 Digital Cable 58.2% 33.7 64.8 Analogue Cable 36.4 10.9 Off-Air 2001-2002 Source: BBM Nielsen 5.4 2007-2008 September to August The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 22 3. The English-Language TV Market Those With the Most Choice Watch More TV Weekly Per Capita Hours of Viewing to Television by Environment ANGLOPHONES September 2007 to August 2008 27.6 25.7 26.2 25.7 15.3 Total OTA Analogue Digital Cable DTH Source: BBM Nielsen The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 23 3. The English-Language TV Market And They Enjoy a Multitude of Programming Choices A LOOK AT FRAGMENTATION Share of Viewing to English TV All Day (24 Hours) % Turner Classic Movies TLC ABC CBS FOX NBC PBS Peachtree TV Spike CBC CBC New sw orld Speed Golf CNN CNBC CTVglobemedia Conv A&E Other US Spec Cdn Pay Eng CanWest Conv Cdn Digital Eng Other Spec Eng Bravo! CP24 Comedy+ CTV New snet MuchMusic Space Vision Sportsnet National+ W Netw ork+ Weather YTV+ Treehouse Teletoon Eng+ Tvtropolis+ TSN+ Slice Score HGTV History+ Food Netw ork Show case+ September 2007 to August 2008 Source: BBM Nielsen The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 24 3. The English-Language TV Market But These Choices Don’t Emanate from Diverse Ownership Share of Viewing to English TV All Day, 24 Hours % CBC US TV (Conv. & Spec.) 5% 23% 28% Other Cdn TV (Conv. & Spec.) CTVglobemedia (Conv. & Spec.) 14% 18% 5% 6% Astral Media (eng.) Rogers CanWest (Con. & Spec.) August 27, 2007 to August 31, 2008 Source: BBM Nielsen The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 25 3. The English-Language TV Market Increased Viewing to Specialty/Pay Has Impacted Viewing to Conventional TV Share of Viewing to English-language TV Station Groups, Prime Time (7 p.m. to 11 p.m.) % CBC* 8.9 6.9 7.3 6.9 7.6 CBC* CTV 13.5 15.1 14.7 13.8 12.8 CTV Global 8.7 8.5 8.4 8.1 7.2 Other Canadian Conventional 12.9 15.6 15.0 14.7 14.4 Other Canadian Conventional Specialty/Pay 42.8 41.1 41.9 44.0 45.7 Specialty/Pay US Conventional 13.2 13.5 12.7 12.4 12.4 US Conventional 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 Global * Excluding Affiliates in own time Source: BBM Nielsen The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 26 3. The English-Language TV Market Top US Programming Remains the Most Popular Top 10 Series on English TV 2007-2008 TV Season RANK 1 2 3 4 5 6 7 8 9 10 NETWORK CTV CTV Global Global CTV Global CTV CTV CTV CTV PROGRAM American Idol 7 – Performance American Idol 7 –Results Survivor: China House Grey’s Anatomy C.S.I. Miami C.S.I (Thursday) Desperate Housewives C.S.I (Monday) Dancing With The Stars 5 - Performance AMA 2,521,000 2,340,000 2,194,000 2,075,000 2,015,000 1,967,000 1,958,000 1,910,000 1,897,000 1,894,000 Note: Prime time shows only, August 2007 to April 2008. Excludes CTV’s Canadian Idol which ended in mid September. Source: BBM Nielsen The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 27 3. The English-Language TV Market CBC Television Remains the Home of Canadian Content English Conventional TV & Canadian Programming Prime Time % Viewing Hours Broadcast Hours Foreign 21% 22% 76% 74% Canadian 79% 86% 90% 15% 10% Canadian Foreign 78% 24% 26% ‘September 2007 to August 2008’ Source: BBM Nielsen The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 28 3. The English-Language TV Market And the Network Airing the Most Popular Canadian Drama/Comedy Series Top 20 Canadian Drama/Comedy Series RANK NETWORK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 CTV CBC CBC CBC CBC CTV CBC CBC CBC Global CBC CBC CTV CBC CTV CBC CBC CBC CBC CTV AMA PROGRAM 1,234,000 826,000 740,000 710,000 686,000 652,000 636,000 598,000 590,000 572,000 553,000 546,000 495,000 452,000 432,000 430,000 424,000 400,000 392,000 373,000 Corner Gas (Monday, 8 p.m.) Little Mosque (Tuesday, 8:30 p.m.) Just for Laughs (Sunday, 8 p.m.) Rick Mercer Report (Tuesday, 8 p.m.) Little Mosque (Wednesday, 8 p.m.) Robson Arms (Monday to Wednesday, 8:30 p.m.) The Tudors (Tuesday, 9 p.m.) The Border (Monday, 9 p.m.) Air Farce Live (Friday, 8 p.m.) The Guard (Tuesday, 10 p.m.) This Hour Has 22 Minutes (Tuesday, 8:30 p.m.) Rick Mercer Report (Friday, 8:30 p.m.) Corner Gas (Tuesday, 8:30 p.m.) Sophie (Wednesday, 8:30 p.m.) Degrassi : Next Generation (Monday, 7:30 p.m.) Halifax Comedy Fest (Monday, 8:30) Winnipeg Comedy Fest (Monday, 8 p.m.) Halifax Comedy Fest (Tuesday, 9 p.m.) Heartland (Sunday, 7 p.m.) Instant Star (Tuesday and Sunday, 8:30 p.m.) Note: Prime time shows only, August 27, 2007 to April 6, 2008. Source: BBM Nielsen The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 29 3. The English-Language TV Market CBC Television’s Reliance on Analogue Cable and Off-Air Viewing Has Declined Distribution of Viewing to CBC Television by Viewing Environment Monday-Sunday, 24 Hours % 11.2 DTH 24.4 6.9 Digital Cable 25.0 54.9 Analogue Cable 31.5 26.9 Source: BBM Nielsen 2001-2002 Off-Air 19.1 September to August 2007-2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 30 4 The Francophone TV Market 4. The Francophone TV Market The Francophone Digital Universe Now Accounts for 57.7% of All Viewing Distribution of Viewing Among Francophones by Viewing Environment Monday - Sunday, 24 Hours % DTH 27.5 19.7 37.6% 17.9 57.7% Digital Cable 30.2 47.5 Analogue Cable 33.0 14.9 2004-2005 Off-Air September to August 9.3 2007-2008 Source: BBM (Quebec Only) The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 32 4. The Francophone TV Market But Off-Air Viewers Still Watch More Than 20 Hours of TV Each Week Weekly Per Capita Hours of Viewing to Television by Environment FRANCOPHONES in QUEBEC September 2007 to August 2008 % 33.0 32.7 30.7 30.4 22.2 Total OTA Analogue Digital Cable DTH Source: BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 33 4. The Francophone TV Market And They Have a Plethora of French and English Services from Which to Choose A LOOK AT FRAGMENTATION Share of Francophone TV Viewing in Quebec All Day (24 Hours) % Cdn Spec Eng Other Cdn Conv CBC CBS US Spec Global ABC CTV FOX Other french station Other US Conv Cdn Pay Fr Other TV Eng Cdn Digital Fr Canal Evasion Historia Z-tele SRC Series+ RDI Meteomedia MusiMax MusiquePlus RDS Teletoon Fr. VRAK TVA Canal Vie Canal D TV5 LCN September 2007 to August 2008 Source: BBM ARTV TQ TQS The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 34 4. The Francophone TV Market But Two Companies Control More Than Half of These Services Share of Francophone Viewing Television among Ownership All Day, 24 Hours % English TV Other French Cdn TV Radio-Canada 6% 14% 14% 29% 25% Quebecor (Conv. & Spec.) Astral Media (fr.) 3% Télé-Québec 8% Remstar August 27, 2007 to August 31, 2008 Source: BBM Nielsen The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 35 4. The Francophone TV Market All Conventional Networks Have Lost Ground to Specialty Services Share of Francophone TV Viewing in Quebec, Prime Time (7 p.m. to 11 p.m.) % Radio- Canada 21.1 19.7 18.7 19.1 Radio- Canada 27.5 26.7 26.2 TVA 12.2 10.8 8.9 2.6 2.5 TQS Télé-Québec TVA 28.9 TQS 12.1 Télé-Québec 3.2 2.5 Specialty/Cable 26.3 30.3 34.3 36.6 English Stations 8.1 7.5 6.6 6.2 Other 0.4 2004-2005 0.3 2005-2006 0.3 2006-2007 Specialty/Cable 0.5 English Stations Other 2007-2008 ‘September to August’ Source: BBM PPM 2004-2005 TO 2007-2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 36 4. The Francophone TV Market Radio-Canada’s Reliance on Off-Air Viewers Has Declined Significantly Distribution of Télévision de Radio-Canada Viewing by Environment Monday - Sunday, 24 Hours % 16.1 DTH 30.7% 26.9 14.6 51.9% Digital cable 25 46.6 Analogue Cable 33.3 22.7 Off-Air 14.8 2004-2005 September to August Note : Radio-Canada is less reliant on off-air viewers than CBC TV 2007-2008 Source: BBM Quebec Francophones The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 37 4. The Francophone TV Market Radio-Canada Is the Leader When It Comes to Canadian Programming French-Languages TV Stations and Canadian Programming Prime Time % Broadcast Hours Foreign Hours of Viewing 11% 15% 28% 37% 55% Foreign 78% Canadian 89% 86% 72% 63% 45% Canadian 22% ‘September 2007 to August 2008’ Source: BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 38 4. The Francophone TV Market But Is Not the Only One to Offer Series That Are Appreciated by Francophones Top 20 Drama/Comedy Series on French-Language Television RANK NETWORK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 RC RC TVA TVA TVA TVA TVA RC TVA TVA TVA RC TVA RC TVA RC RC RC RC TVA AMA PROGRAM 1,343,000 991,000 942,000 912,000 857,000 849,000 813,000 761,000 751,000 743,000 692,000 691,000 633,000 630,000 622,000 592,000 583,000 505,000 504,000 503,000 Les Lavigueur, la vraie histoire Les Boys Annie et ses hommes Les Sœurs Elliot Taxi 0-22 Les étés d’Anaïs Destinées L’Auberge du chien noir La Promesse Nos étés KM/H Providence Histoire de filles Belle-Baie Le Négociateur Rumeurs Casino Virginie C.A. Le cœur a ses raisons Note: Prime time shows only, August 27, 2007 to April 6, 2008. Source : BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 39 5 Emerging Technologies in the Video World 5. Emerging Technologies in the Video World New Ways of Accessing Video Content Technological advancements over the past ten years have given rise to a variety of new platforms for consumers to receive and view video programming, including video-ondemand (VOD), personal video recorders (PVRs), Internet streaming and Internet downloading. These new platforms and technologies have affected the video opportunities available to Canadians in three key ways. 1. They significantly expanded where consumers can receive and watch video programming. 2. All of these new platforms, with the exception of some forms of Internet streaming, can be characterized as on-demand services which free viewers from the rigidity of program schedules. 3. Some new platforms provide video in a significantly different format from traditional television. The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 41 5. Emerging Technologies in the Video World More Video Programming Available Over More Distribution Platforms Illustration of Multi-platform Growth – Video 1995 TV Distribution • Over-the-air TV • Analogue Cable Personalization • VCR • Specialty TV • Pay TV 2008 TV Distribution • Over-the-air TV • Analogue Cable • Digital Cable • DTH Satellite • Wireless Cable (MDS) • IPTV • Internet Personalization • VCR • Specialty TV • Pay TV • DVD Player • PPV • PVR • VOD • Video Downloads • Video Streaming Portable • DVD Player • Digital Video Player • Mobile Phone • Laptop Computer The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 42 5. Emerging Technologies in the Video World Ownership and Usage of Some of the New Video Devices Is Low Trends in the Penetration and Usage of Video Technologies Among Canadian Adults Penetration and Use of Devices and Services Anglos 18+ Francos 18+ Trends VIDEO TVs HDTV sets HDTV receivers 96% 37% 21% 95% 28% 17% Universal Growing Growing CABLE TV Analog Digital Total 27% 31% 60% 25% 34% 60% Declining Growing Stable DTH Telco TV (1) 24% 2% 25% <1% Stable Emerging Digital TV - Total Over-the-air 57% 9% 59% 12% Growing Declining VCR DVD Player DVD Recorder 79% 89% 20% 71% 87% 18% Declining Stable Growing 9% 13% 14% 12% 10% 10% Growing Growing Growing PERSONAL TV VOD (viewer) PVR Video-iPod/MP3 Player Owner Source : CBC/Radio-Canada's MTM, 2008 (1)TV Services provided by telephone companies The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 43 5. Emerging Technologies in the Video World But Acceptance of These New ‘On-Demand’ Tools Is Higher Among Those Aged 18-34 Penetration and Usage of New Video Technologies Among Anglophone and Francophone Age Groups VOD usage (last month) 18-34 13% Anglophones 18+ 35-49 50-64 11% 8% 65+ 3% 18-34 19% Francophones 18+ 35-49 50-64 14% 9% 65+ 3% PVR penetration 16% 15% 13% 6% 11% 12% 10% 4% Video Streaming (last month) 63% 46% 33% 12% 61% 42% 25% 9% Video iPod/MP3 Player penetration 24% 16% 7% 2% 19% 11% 6% 1% Source : CBC/Radio-Canada's MTM, 2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 44 6 CBC Radio’s Audience Performance 6. CBC Radio’s Audience Performance CBC Radio Weekly Usage Maintained Despite Overall Decline in Radio Usage Anglophone Weekly Reach 15 All 12+ Monday to Sunday (5am to 1am) % 16 14 15 14 14 14 15 15 14 14 14 14 5 5 5 5 5 S1 2006 S4 2006 S1 2007 S4 2007 S4 2008 11 6 Fall 2001 6 Spring 2002 6 Fall 2002 6 Spring 2003 5 5 5 Fall 2003 Spring 2004 Fall 2004 6 S1 2005 5 S4 2005* * The lock-out of CMG employees affected 6 out of the 8 weeks measured during S4 2005. Source: BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 46 6. CBC Radio’s Audience Performance Audience Shares for CBC Radio’s Have Remained at Historic Levels Share of Anglophone 12+ Listening in the Areas Served by a CBC Radio Station Monday to Sunday (5am to 1am) % 14.1 12.7 13.0 12.3 12.8 12.2 12.2 12.6 12.4 3.0 3.4 3.6 13.0 3.6 3.4 3.5 3.2 3.4 13.4 13.3 2.9 11.5 3.5 13.1 3.7 3.6 3.5 3.4 8.9 9.3 9.6 9.9 9.9 S1 2006 S4 2006 S1 2007 S4 2007 S1 2008 8.9 3.3 9.2 9.4 8.9 9.2 8.3 8.8 9.1 9.1 11.1 5.7 Fall 2001 Spring 2002 Fall 2002 Spring 2003 Fall 2003 Spring 2004 Fall 2004 S1 2005 S4 2005* S4 2008 Base: Anglophones who listened in CBC areas * The lock-out of CMG employees affected 6 out of the 8 weeks measured during S4 2005. Source: BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 47 6. CBC Radio’s Audience Performance CBC Radio One: Ranks in Top 3 in 9 Out of 10 Markets CBC Radio One Markets The Share of 12+ Listening Captured by Stations BBM S4 2008 Monday to Sunday 5 a.m. to 1 a.m. Share % Monday to Friday 6 a.m. to 8:30 a.m. Share % Ranking CBN St. John’s 11.8 23.1 2 CBG/CBT Gander/Grand Falls 8.8 16.2 3 CBY Corner Brook 16.3 27.4 2 CBCT FM Charlottetown 21.3 28.7 1 CBHA-FM Halifax 14.7 19.7 1 CBI Sydney/Cape Breton 16.1 26.8 1 CBA Moncton 10.8 15.8 1 CBZF FM Fredericton 16.7 25.6 1 CBD-FM Saint John 16.4 23.2 2 CBME-FM Montreal Anglos 7.6 8.6 5 CBO-FM Ottawa Anglos 15.4 21.4 1 CBLA-FM Toronto 9.4 12.9 1 CBE Windsor 4.1 6.9 3 CBCS-FM Sudbury 11.1 17.9 3 CBQT-FM Thunder Bay 19.9 23.0 2 CBW Winnipeg 11.7 15.6 2 CBK/CBKR-FM Regina 9.9 16.8 2 CBK Saskatoon 10.3 13.0 3 CBR Calgary 10.8 15.2 1 CBX Edmonton 7.1 9.5 5 CBU Vancouver 9.9 15.1 2 CBCV-FM Victoria 12.1 18.6 1 Morning show runs from 6 a.m.-9 a.m. in Newfoundland & Labrador The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 48 7 Radio de Radio-Canada’s Audience Performance 7. Radio de Radio-Canada’s Audience Performance Radio de Radio-Canada: Increased Usage Since 2001 Francophone Weekly Reach Francophones 12+ Monday to Sunday (5am to 1am) % 16 15 14 14 14 15 14 14 16 16 14 13 12 11 11 4 4 4 4 4 4 Fall 2001 Spring 2002* Fall 2002 Spring 2003 Fall 2003 Spring 2004 5 5 5 5 5 5 Fall 2004 S1 2005 S4 2005** S1 2006 S4 2006 S1 2007 * Labour dispute affected 3 ½ out of the 8 weeks measured ** The lock-out of CMG employees, outside of Quebec and Moncton, affected 6 out of the 8 weeks measured. Source: BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 6 S4 2007 6 5 S1 2008 50 S4 2008 7. Radio de Radio-Canada’s Audience Performance And Audience Shares Have Nearly Doubled in the Past Six Years Share of Francophone 12+ Listening in the Areas Served by a Radio de Radio-Canada Station Monday to Sunday (5am to 1am) % 15.6 13.7 12.4 11.1 10.8 2.5 2.1 2.3 2.2 14.7 15.7 2.3 3.0 16.5 2.9 15.3 2.5 16.3 3.0 16.7 15.2 20.0 19.8 19.4 4.1 4.0 3.9 15.9 15.7 15.5 S4 2007 S1 2008 S4 2008 2.9 2.9 2.4 8.6 8.7 Fall 2001 Spring 2002* 10.0 Fall 2002 11.5 Spring 2003 13.3 12.5 Fall 2003 Spring 2004 12.6 13.6 Fall 2004 S1 2005 12.8 13.3 12.3 S4 2005** S1 2006 S4 2006 13.8 S1 2007 * Labour dispute affected 3 ½ out of the 8 weeks measured ** The lock-out of CMG employees, outside of Quebec and Moncton, affected 6 out of the 8 weeks measured. Base: French Radio Listening Among Francophones in SRC Areas Source: BBM The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 51 7. Radio de Radio-Canada’s Audience Performance Weekday Morning Shares Demonstrate the Value of Local Programming The Share of 12+ Listening Captured by Individual Stations BBM S4 2008 Première Chaîne Markets Monday to Sunday 5 a.m. to 1 a.m. Monday to Friday 6 a.m. to 9 a.m. Share % Ranking Share % CBF-FM Montreal Francos 14 21 1 CBF-FM Sherbrooke 13 20 2 CBF-FM Trois-Rivières 12 14 2 CBV-FM Québec 12 17 1 CBJ-FM Saguenay 11 14 4 CBGA-FM Matana-Gaspésie-Iles 10 15 1 CJBR-FM Rimouski 13 20 3 CHLM-FM Rouyn 10 17 3 CBSI-FM Sept-Iles 7 10 3 CBOF-FM Ottawa-Gatineau Francos 12 16 2 CBAF-FM N. Brunswick Francos 4 8 3 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 52 8 Emerging Technologies in the Audio World 8. Emerging Technologies in the Audio world New Ways of Accessing Audio Content Numerous new ways of accessing audio content have become available in Canada. These new audio platforms provide consumers with increased choice in terms of where, how and when audio services can be received. The new audio platforms have met with varying degrees of acceptance by the public. The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 54 8. Emerging Technologies in the Audio world And They Present a Challenge to Traditional Radio Illustration of Multi-platform Growth – Audio 1995 Distribution • Radio On-Demand • Tapes • CDs Portable • Walkman 2008 Distribution • Radio • Internet • Satellite Radio On-Demand • CDs • Music Downloads • Streaming Audio • Podcasting Portable • Walkman • Digital Audio Player • Mobile Phone The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 55 8. Emerging Technologies in the Audio world Use of Audio Technologies Among Anglophones and Francophones Is Different Trends in the Penetration and Usage of Audio Technologies Among Canadian Adults Penetration and Use of Devices and Services Anglos 18+ Franco 18+ Trends Audio Radio Ipod/MP3 Player Owner Satellite Radio subscriber 92% 39% 9% 90% 30% 4% Universel Growing Growing Download - Music (past month) Download- Podcast (past month) Streamed Audio (past month) 16% 19% 27% 12% 7% 25% Declining Growing Stable Source : CBC/Radio-Canada MTM, 2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 56 8. Emerging Technologies in the Audio world Acceptance of These New Technologies Is Higher Among Younger Canadians Penetration and Usage of New Audio Technologies Among Anglophone and Francophone Age Groups iPod/MP3 Player penetration Podcast download (last month) 18-34 43% Anglophones 18+ 35-49 50-64 28% 14% 65+ 4% 18-34 53% Francophones 18+ 35-49 50-64 35% 16% 65+ 5% 7% 5% 4% 2% 12% 8% 3% 1% Audio Streaming (last month) 37% 32% 24% 9% 41% 29% 17% 6% Music download (last month) 32% 16% 8% 2% 26% 13% 5% 1% Source : CBC/Radio-Canada MTM, 2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 57 9 Internet 9. Internet Broadband Internet Has Entered the Mainstream Home Internet Connection % ANGLOPHONES 18+ FRANCOPHONES 18+ 73 Broadband 67 Broadband Total 82% Dial-up None 7 Total 73% Dial-up 18 None 5 27 * Broadband and dial-up do not equal total home Internet connections because some respondents refused or don’t know what type of Internet connection they have Source: MTM 2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 59 9. Internet But Weekly Time Spent With the Internet Still Lags TV and Radio Weekly Per Capita Usage of Internet, Television and Radio Hours/Week ANGLOPHONES Internet 13.8 Internet 25.8 Television Radio FRANCOPHONES 18 11.1 31.5 Television Radio 19 Source: MTM 2008 (Internet), NMR and PPM 2008-2009 (STD September to December) (TV), BBM S4 2008 (Radio) The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 60 9. Internet CBC.ca: Among the Leaders in News and Information Average Monthly Unique Visitors to News and Information Web Sites Total Canada 2+, at Home October-November, 2008 (000's) ABOUT.COM 4,688 CANADA.COM 3,078 CBC.CA 3,076 THEWEATHERNETWORK.COM 3,048 CANOE.CA 3,046 YAHOO!NEWS.CA 2,990 CTV.CA 2,313 CNN.COM 1,651 BBC.CO.UK RADIO-CANADA.CA 1,598 1,092 Source: comScore Media Metrix (EnglishPerformance Canada) The Broadcasting Environment – CBC/Radio-Canada’s Audience April 22, 2009 61 9. Internet Radio-Canada.ca: 2nd Most Popular in News and Information Average Monthly Unique Visitors to News and Information Web Sites Francophones 2+, at Home October-November 2008 (000's) 1,847 CANOE.CA 940 RADIO-CANADA.CA 920 METEOMEDIA.COM 793 RDS.CA 615 CYBERPRESSE.CA BRANCHEZ-VOUS.COM 268 CBC.CA 272 Source: comScore Media Metrix (French Canada) The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 62 10 What the Public Says 10. What the Public Says Our Measures of Value Since 2001, the following indicators of performance have been measured: Satisfaction “I am satisfied with the programming on CBC/Radio-Canada Television/Radio.” Essential “It is essential that CBC/Radio-Canada Television/Radio is available to Canadians.” Distinctiveness “CBC/Radio-Canada Television/Radio has programs that aren’t on any other television/radio station.” News Credibility “You can trust news and information on CBC/Radio-Canada Television/Radio.” Comprehensive “You can count on CBC/Radio-Canada Television/Radio to give you complete news coverage.” The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 64 10. What the Public Says In 2008, 9 in 10 Canadians Supported CBC/Radio-Canada on All Indicators Corporate Performance Indicators for ALL CBC/RADIO-CANADA TV/RADIO SERVICES Among all Canadians 18+ % In terms of: 98 Essential Trusted 96 Comprehensive 95 Distinctive 89 Satisfaction 89 Source: QRS 2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 65 10. What the Public Says And Over 8 in 10 Canadians Tune to at Least One of Our Services Each Month Past Month Usage of CBC/RADIO-CANADA SERVICES Among all Canadians 18+ % 85 Any CBC/Radio-Canada Services CBC Television/Télévision de Radio-Canada 78 CBC Radio/Radio de Radio-Canada CBC.ca/Radio-Canada.ca 39 27 Source: QRS 2008 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 66 10. What the Public Says CBC/Radio-Canada Is a Vital Part of Canadian Culture Corporate Image Ratings CBC/Radio-Canada is a vital part of Canadian culture 64% You can trust CBC/Radio-Canada 56% CBC/Radio-Canada is an organization that delivers the highest quality services for the resources it has available CBC/Radio-Canada ensures that the funds available to them are used to best reflect the needs and interests of Canadians 27% 53% 23% 47% CBC/Radio-Canada is in touch with ordinary people CBC/Radio-Canada pays attention to what the public thinks about its programs and services 21% 49% CBC/Radio-Canada brings Canadians together as a country CBC/Radio-Canada is innovative, always looking for new programs and ideas to deliver services 15% 25% 35% 33% 39% 28% 34% Source: Public Support Survey, TNS, April 2006 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance 28% Strongly Agree Agree April 22, 2009 67 10. What the Public Says With Its Mandate Continuing to Be Important to Canadians Mandate Importance Ratings Providing in-depth News and Information from a Canadian perspective 81% 11% Providing News and Information that people can trust 81% 11% Providing Television and Radio services which are available to people living in all parts of Canada 78% 73% Promoting our culture and identity Serving the needs and interests of each region of the country Entertaining people 12% 16% 69% 18% 67% 20% Providing programs of interest to many different groups of people 65% 21% Reflecting the multicultural nature of Canada 65% 20% Helping people from all parts of Canada understand each other better Offering high quality, distinctive Canadian programming Source: Public Support Survey, TNS, April 2006 67% 18% 65% Very Important The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance 17% Important April 22, 2009 68 10. What the Public Says And Canadians Believe CBC/Radio-Canada Is Delivering on Its Mandate Corporate Performance Ratings Providing in-depth News and Information from a Canadian perspective Providing News and Information that people can trust Providing Television and Radio services which are available to people living in all parts of Canada Providing programs of interest to many different groups of people 18% 21% 28% 48% 33% 44% 46% Serving the needs and interests of each region of the country 45% Helping people from all parts of Canada understand each other better 44% Source: Public Support Survey, TNS, April 2006 68% 55% Entertaining people Offering high quality, distinctive Canadian programming 21% 64% Promoting our culture and identity Reflecting the multicultural nature of Canada 67% 36% 34% 32% 31% 50% 29% Very Good Job The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance Good Job April 22, 2009 69 10. What the Public Says CBC/Radio-Canada Represents Good Value for the Funding It Receives Perceived Value For Money Of CBC/Radio-Canada Funding 63% Very Good Value 19% Good Value Source: Public Support Survey, TNS, April 2006 The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 70 10. What the Public Says But It Is Poorly Funded Compared to Other Public Broadcasters Per Capita Public Funding for Public Broadcasters 2007* 146 Norw ay 136 Denam rk 134 Sw itzerland 130 Germ any U.K. 124 109 Sw eden 107 Finland 80 Austria Ireland 65 France 65 62 Belgium 47 Japan 44 Australia Italy 39 34 Canada Average = 76 29 Spain** (2006 est.) 10 New Zealand 4 U.S. (2006) 0 20 40 60 80 C$ per inhabitant 100 120 140 160 * Data for 2007 fiscal year unless indicated otherwise. ** Figures for Spain include an estimate for the public broadcasters of the autonomous regions. Source: Nordicity Group Ltd. Public funding data obtained from various sources; Exchange rates from Bank of Canada. Population data from Population Reference Bureau. The Broadcasting Environment – CBC/Radio-Canada’s Audience Performance April 22, 2009 71