After announcing the elimination of 240 positions, Quebecor is axing its digital component, in particular in its QUB music platform, which will cease its activities to merge with a French heavyweight in online listening.
Launched with great fanfare in May 2020, QUB musique was to be a 100% Quebec alternative to the online listening giants Spotify and Apple Music. But the service never met with the hoped-for success, even though it offered its subscribers a competitive catalog compared to other platforms.
According to our information, the playlists that are currently on the QUB music application will soon be hosted on the French platform Qobuz, which will enter Canada in May. QUB musique subscribers will also be able to join Qobuz, of which Quebecor was already a partner.
Although QUB musique is stepping down, QUB radio, Quebecor’s digital radio, will survive this vast restructuring plan announced Thursday, the details of which will be specified within the next few days. We already know that the TVA Group will slash 140 of its jobs, which corresponds to nearly 11% of its current staff. This division includes not only the TVA network and its specialty channels, but also MELS magazines and film studios.
Cuts every 24 hours
Around 100 positions will be cut elsewhere at Quebecor, including around 40 in the NumériQ division, of which QUB musique is a part. Within this entity, the 24 hours also suffered cutbacks, while the entire team responsible for producing documentaries for the Vrai channel was laid off.
Originally a paper newspaper distributed on weekdays for free in the metro, the 24 hours transformed significantly during the pandemic to become a predominantly digital medium aimed at younger audiences. Only one paper edition per week is now published, but this is set to disappear following these cuts, learned The duty.
Quebecor announced this vast restructuring plan on the sidelines of the publication of TVA Group’s financial results for the last quarter of 2022. During this period, the group’s TV channels saw their ratings increase, but profits were weighed down by falling advertising revenue. And this, while Quebecor has increased its investments in the production of television content in order to feed its Club illico and Vrai platforms.
Added to this is the financial abyss represented by TVA Sports, which has never been profitable since its launch in 2011, as well as magazines, which no longer have access to certain government aid put in place during the pandemic.
Uncertain future for TVA Sports
The President and Chief Executive Officer of Quebecor, Pierre Karl Péladeau, once again points the finger at “unfair competition” from Radio-Canada, which monopolizes part of the advertising revenue while taking advantage of public money, to which private broadcasters are not entitled. He also criticizes Bell for favoring its channels over those of Quebecor on its cable television service, in particular RDS to the detriment of TVA Sports.
At the microphone of Paul Arcand, Friday morning, Pierre Karl Péladeau admitted that TVA Sports had lost a lot of money since its foundation and did not hide that the future of the channel was uncertain today. “There are a number of considerations that do not militate against the prospect of success with regard to TVA Sports,” he said.
On the airwaves of 98.5, Pierre Karl Péladeau also recognized that there were too many video-on-demand platforms. He has not ruled out the idea of merging Club illico, which mainly offers series, and the new Vrai platform, which offers documentaries. ” [Avoir deux plateformes]it’s a strategy that will perhaps evolve,” indicated Mr. Péladeau.