The decline in cable subscriptions and the exodus of advertisers to digital giants continue to weigh on specialty channels. All French-language channels, without exception, have suffered revenue declines in the past year, starting with ICI RDI. For the 2022-2023 fiscal year, Radio-Canada’s continuous news channel posted pre-tax losses of 12 million dollars, a shortfall that increased by 31% compared to the previous year.
This is what is revealed by data from the Canadian Radio-television and Telecommunications Commission (CRTC) published last June. Figures that the public broadcaster is quick to temper, while acknowledging a drop in revenues and an increase in costs.
“The CRTC report includes, in addition to normal operating costs, the pro rata share of the institutional cost chain for services such as human resources, legal services, finance… […] “Despite the impression that the CRTC report may give, we can affirm that the financial situation of ICI RDI is still sustainable,” indicated by email the institution’s spokesperson, Guylaine O’Farrell.
The fact remains that the trend is undeniable. The decline of specialty channels is marked, and RDI is paying the price. According to the CRTC, the “Information Network” saw its revenues, mainly from advertising and subscriptions, drop from $54.5 million to $41.2 million in just seven years. A change in regulations in 2016 is not unrelated, as RDI is no longer automatically included in cable packages in Quebec. But the drop in revenues is mainly due to economic factors that affect all of traditional television: the growing number of people unsubscribing from cable and the loss of advertising revenue.
Despite this difficult context, Radio-Canada is not questioning the future of RDI. The question now is whether it is viable in the long term for the channel to be available only to cable subscribers. For now, the Crown corporation emphasizes that RDI is managing to hold its own in the current environment. The channel boasts of having reached 4.2% of the market share this summer, “a historic high” since it went on the air in 1995. The average viewing time per viewer has also increased by 24 minutes compared to five years ago.
“Yes, there are fewer and fewer people who subscribe to cable. But the people who still watch TV are increasingly watching RDI, and for longer and longer. That shows the relevance of this channel,” summarizes Guylaine O’Farrell of Radio-Canada.
LCN caught up with reality
One thing is certain: RDI is doing better in terms of market share than its English-language counterpart, CBC News Network. According to CRTC data, CBC’s news channel generated pre-tax losses of $13.8 million in 2022-2023.
RDI, however, remains behind its big rival, LCN, in terms of audience ratings. In recent years, Quebecor’s news channel has been by far the one that has best resisted the decline in cable television. Its revenues were even up, despite the general trend. However, LCN has been caught up by reality over the past year. For the first time since 2017, its revenues are down.
LCN remains profitable, with a pre-tax profit of $5.7 million, down 30% compared to the previous year. Bad news for Quebecor, which reported pre-tax losses of $18 million for TVA Sports, which has been loss-making since its founding. “LCN and TVA Sports’ 2022-2023 results are affected by the decline in advertising revenues and the erosion of the number of subscribers, a major trend that is affecting the entire industry,” the company said in an email.
TVA management is now calling on governments to extend the tax credit available for print media to television newsrooms. “If we want to preserve strong media coverage that is essential to our democracy, it is the entire work of journalists, regardless of the media or broadcast platform, that must be supported.”
Within Quebecor, there is also no lack of mention of the battle before the CRTC that pits the company against its competitor, Bell, over royalties. Quebecor believes that its specialty channels, first and foremost TVA Sports, are not receiving their due from the cable distributor, which is affecting their results.
More closures expected?
Bell also owns several specialty channels that were once very lucrative. The telecommunications giant is also feeling the full brunt of the cable television rout. Some of its channels, such as Canal Vie and Canal D, have seen their revenues fall by half, and sometimes even more, between 2016 and 2023. Remember that Bell Media ended the operations of Vrak, once the favorite channel for teenagers, last year. Could other channels suffer the same fate?
RDS, the group’s sports channel, is struggling with the explosion of costs for obtaining broadcasting rights for major professional leagues. Pre-tax losses for RDS and RDS Info last year amounted to 22.4 million. Contacted by The dutyBell Media declined to comment. the recent CRTC report.