Anna Maria Tremonti, The Current, CBC Radio One

Anna Maria Tremonti, The Current, CBC Radio One

On March 22, 2016, the Government of Canada announced an important reinvestment in Canada’s public broadcaster: an additional $75 million in 2016-2017 and $150 million per year on an ongoing basis. This reinvestment is a tremendous vote of confidence by government and by Canadians in our programs and services. This multiyear funding commitment will provide the stability to continue our digital transformation and invest in the programs and services important to Canadians. We will report to the Government of Canada and to Canadians on our use of these new funds.

Our revenue continues to be exposed to the industry-wide softening of advertising markets and the shift of advertising away from traditional television to digital platforms. We are closely monitoring the situation, as we expect the advertising market to remain challenged.

We are also continuing to monitor and assess the financial impacts of the decisions made by the CRTC’s Let’s Talk TV review on the TV broadcasting industry in Canada. Changes resulting from these regulatory decisions could affect our specialty channel revenue. Plans have been developed to mitigate negative changes to our specialty channel distribution and revenue, including negotiating the channel carriage of our specialty channels with our cable, satellite or microwave distribution partners.

These uncertainties threatened some of the content creation and some digital initiatives planned under Strategy 2020. As such, about 35% of the new funding will go to ensuring our momentum and the work underway in order to continue moving forward with the transformation of CBC/Radio-Canada into the digital public space, while we work with government and other stakeholders to reinvent our business model.

On May 13, 2016, SiriusXM Canada Holdings Inc. announced its intention to recapitalize the company by way of a go-private transaction. CBC/Radio-Canada intends on voting in favour of the proposed plan. The transaction would involve the sale of its 10.2% stake at $4.50 a share, generating proceeds of approximately $58 million. The programming partnership will continue through 2022.