(Lethbridge News Now)

By Dave Barry

Broadcasters warn of possible closures of radio and television stations across Canada

Aug 26, 2020 | 11:29 AM

Ottawa– Private radio and television broadcasters are sounding the alarm about the state of their industry. The industry says the impact of the COVID-19 pandemic could lead to the closure of dozens of stations across the country.

President of Pattison Broadcasting Rod Schween says stations may be in trouble.

“A number of stations are facing negative return so last year for example, 40% of Canadian radio stations saw negative PBIT(Profit Before Interest and Tax), and 70% of Canadian television stations saw negative PBIT.”

“Without immediate action, Canada will see a wave of local television and radio closures over the next three years,” said Lenore Gibson, Chair of the CAB Board of Directors. “This will deny many communities a daily local media voice, and significantly reduce the diversity of news choices and voices in almost every community in Canada.”

A report commissioned by the Canadian Association of Broadcasters warns advertising revenue shortfalls may push up to 50 radio stations off the air within the next six months and shutter as many as 150 over the next 18 months. Meantime almost half of the 40 privately owned Canadian television stations could close within the next three years. The closures could add up to as many as 2,000 job losses.

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The greatest impact will be felt in smaller cities and rural communities, which already have limited journalism resources. The report states that while administration jobs have been cut to deal with financial shortfalls over recent years, newsroom jobs and other on-air positions will likely be impacted more in the future.

“Private broadcasters are doing everything possible to avoid major cuts or reductions in local news coverage,” said Robert Ranger, President and CEO, RNC Media Inc. “This would be a last resort. We don’t want to deny communities in Quebec or across the country their choice of daily local media – media that remain critical pillars to our democracy and shared culture.”

The report acknowledges advertising revenues have been shrinking for years for private broadcasters. However, the pandemic has accelerated the negative trend and created a crisis in the Canadian industry.

The report suggests the federal government can protect the industry by offering immediate financial assistance and through regulatory relief by recognizing some licence obligations can’t be met. Long term, the report suggests the federal government institute a holistic review of the future of media in Canada.

Note: Lethbridge News Now through the Jim Pattison Broadcast Group are members of the Canadian Association of Broadcasting.