Ad revenue erosion | Quebecor cuts 240 jobs in its media sector

The ax falls in the media sector of Quebecor, which eliminates 240 positions, including 140 at Groupe TVA, due to the erosion of its advertising revenues. Its big boss, Pierre Karl Péladeau, points to the growing presence of broadcasting platforms, Ottawa’s inaction in the face of web giants and “unfair” competition from Radio-Canada.

No sector was spared by the decline in revenues last year. It is in this context that the restructuring was announced on Thursday, on the occasion of the publication of the year-end results of Groupe TVA, which lost approximately 9 million, or 21 cents per share, last year. .

“We are forced to take the appropriate measures to restore the financial situation and ensure the sustainability of TVA Group,” said Mr. Péladeau in a press release. This decision is difficult, but necessary in the current context. »

Approximately 11% of TVA Group’s workforce should be made redundant. All sectors – broadcasting, film and audiovisual services, magazines as well as production and distribution – should be affected. Elsewhere within the conglomerate, some 100 positions will be abolished on the side of NumériQ, Quebecor media expertise and Quebecor content.

Employees who will lose their livelihood should be notified this Friday.

pointed out

Mr. Péladeau listed external factors to explain TVA Group’s difficulties. He attacks broadcast services like Netflix and Amazon Prime, Radio-Canada’s “ratings race” as well as the public broadcaster’s Tou.tv Extra platform, which increases the pressure on traditional channels. Finally, the controlling shareholder of Quebecor attacks its main competitor, Bell.

“Unlike all other cable operators in Quebec, Bell TV continues to pay royalties below the market value of our channels, while continuing to favor its own channels,” denounces Mr. Péladeau.

In an email sent to The PressRadio-Canada indicated that no one is “rejoicing in the face of job losses”, adding that “French-language television production is based” on the balance between the private and the public”.

“Everyone has their role to play and everyone has their challenges,” wrote its spokesperson, Marc Pichette.

Mr. Péladeau also urged the federal Parliament to adopt Bill C-18, tabled in the spring of 2022 and which aims to force web giants to pay newsrooms to use their content.

“The various government bodies must act before it is too late,” he argues.

However, there are internal challenges. Among other things, TVA Network’s operating expenses have increased by about 20% due to “content investments” and the TVA Sports sports channel continues to lose money. At MELS, there has been a decline in profitability for studio and equipment rentals. The studios could not take advantage of the presence of a major production, as was the case in 2021 with Transformers: Rise of the Beast.

The volume of activity is also in decline on the side of visual effects services. Both newsstand sales and subscriptions continue to fall in the magazine division. It can no longer count on government aid, as was the case at the height of the pandemic.

Worrying trend

For the professor of journalism at the School of Media at UQAM Patrick White, this context of falling advertising revenues is a bad omen for the media sector.

“These layoffs reflect the media crisis in 2023, a permanent crisis,” he said. Where I agree with Mr. Péladeau is on the urgency of adopting Bill C-18. The Senate needs to pass this quickly to give local media a break. »

Elsewhere in the Quebec media sector, the Postmedia newspaper chain announced on January 24 its intention to eliminate 11% of its approximately 650 journalist positions. Within the Montreal Gazettethe last English-language daily in the metropolis, this could result in a dozen departures if nothing is done.

“And I’m not even talking about the layoffs at the wall street journal, at News Corp, at Yahoo! and across many digital media, adds White. Falling income is hurting a lot right now. »

The Union of TVA Employees, affiliated with the Canadian Union of Public Employees, was informed of the restructuring when it was announced. Its president, Carl Beaudoin, preferred to obtain more details before commenting.