Strategic context: Evolution to date
The profile of Canada’s broadcasting industry is changing dramatically: the prevalence of foreign content, changing consumer habits and expectations, and shifting demographics are all contributing to the shift.
Public broadcasting continues to play a crucial role in Canada and around the world because, even in the digital age, there is still a need for investment in high-quality original content. As the below chart indicates, CBC/Radio-Canada leads the way through our investment in Canadian content.
Table 1: CBC/Radio-Canada is driven to do more
As Canada’s public broadcaster, CBC/Radio-Canada invests substantially more in Canadian content than the largest private-sector broadcasters in both the English and French markets.
Source: BBM (Broadcast year 2013) and CRTC (Broadcast year 2013)
Strategy 2015: Everyone, Every way
Our current strategic plan, 2015: Everyone, Every way, is continuing to guide the Corporation towards being more Canadian, more regional and more digital and achieving tangible results.
Key business drivers
Over the next five years, we believe Canada’s operating environment will be shaped by several key business drivers. We will be monitoring such changes, including:
- Technology advances, particularly digital, which will require a real transition from our legacy systems and infrastructure towards evolving technologies;
Table 2: Technology adoption by language market
The adoption rate of new technologies varies by market.
Source: MTM, Spring 2014 — *Accessed the Internet on a TV set in the past month
Table 3: The digital century demands innovation
Consumer preferences and media technology have changed considerably since the turn of the century.
Source: BBM Canada, Mediastats, MTM, PwC and Sirius XM Canada
* Anglophones only for the year 2001; Canadians for the year 2012
~ No regular television service via a television subscription service (e.g., cable, satellite, IPTV from a telco) or free, off-air television.
^ 2013-2014 Broadcast Year-to-date (Aug 26, 2013 – May 25, 2014, excluding Olympic weeks 25-26).
- Evolving audience habits and preferences, to increasingly internet-driven technology, while still maintaining core television viewing;
Chart 1 and 2: TV viewing is dominated by a handful of companies
TV viewing is highly fragmented, but the channels are owned by a small number of larger, vertically integrated broadcasters: Bell, Rogers, Shaw, and Quebecor.
Source: CBC/Radio-Canada Research and Analysis (BBM Canada, PPM, 2+, 2013-2014 Broadcast Year-to-date (Aug 26, 2013 - May 25, 2014).
Note: Shaw includes viewing to Corus stations.
Shifting demographics, including an aging Canadian population, more diversity in urban areas, and increased immigration;
The Corporation’s changing and aging labour force, which needs to continue reflecting the Canadian population, and to which we need attract, engage and retain the right skills and talent;
The evolution and increasingly complex situation surrounding the industry revenue mode, and the additional pressures this places on CBC/Radio-Canada to secure a long-term, sustainable way to manage our finances;
Table 4: Internet advertising is the growth area
Many advertisers are turning to the Internet to spend their marketing dollars, which is affecting the revenues of traditional media.
Canadian Broadcast and Internet Advertising Revenues
Source: Statistics Canada and Internet Advertising Bureau
Public expectations to ensure CBC/Radio-Canada provides a public voice and is accountable for the taxpayer dollars with which we are entrusted;
Competitive factors and the ongoing pressures of global players .
Given the realities of this volatile environment, as a public broadcaster, it is imperative that CBC/Radio-Canada play to our unique strengths and maximize our opportunities. A space for us all is a framework that allows us to continue to adapt, keep pace and make the necessary choices as the market evolves. The three priority areas to address are: relevance, organizational agility and financial viability.