The executives of Cogeco Media, owner among others of 98.5 and CKOI, in turn sounded the alarm on the future of commercial radio on Tuesday during hearings of the Canadian Radio-television and Telecommunications Commission (CRTC). Faced with falling advertising revenues, the Quebec company suggested that closing stations would “perhaps be the next step.”
“Several of our regional stations are in deficit. […] We are backed into a corner,” said Paul Beaudry, vice-president of regulatory and government affairs at Cogeco, during the hearings.
Until next week, the CRTC is hearing from the main players in the country’s media ecosystem about the development of the new regulatory framework which must take into account large digital platforms. Last week, the heads of Bell Media, Cogeco Media’s main competitor, caused a surprise during their testimony by letting it be known that their regional stations across the country have experienced “a loss of profitability” of 85% since the pandemic.
As reported The duty Tuesday, listening to commercial radio has declined sharply in the country, especially since the pandemic, since people are less inclined to travel by car with the advent of teleworking. This new reality, among other things, has accelerated the exodus of advertisers towards digital giants. Cogeco, which brings together 20 stations across Quebec, is no exception. According to figures compiled by the CRTC, revenues from its radio stations decreased by 14% between 2019 and 2022.
“Without a level playing field for traditional broadcasters, hundreds of stations will close and thousands of jobs will disappear. We will witness the appearance of media deserts from coast to coast,” warned the president of Cogeco Media, Caroline Paquet, before the CRTC.
Fewer French-speaking quotas
Currently, Cogeco operates, among others, the Rhytme FM network, CKOI, The Beat, but also several talk radio stations, such as 98.5 in Montreal, and FM93 in Quebec.
To maintain an information service in these stations, Cogeco recommends the establishment of an aid fund for radio financed by contributions from foreign platforms. “Radio has been completely forgotten. […] We must be given access to funds to which all other players in the industry have had access, such as television and the written press,” implored Mme Pack.
Like Bell, Cogeco also advocated for regulatory relief. The company’s leaders notably returned to the charge on the subject of the quotas of French-speaking and Canadian songs which are imposed on music radio stations.
Currently, 65% of the pieces played on French-language stations must be in French and 50% of the content must be considered Canadian. These requirements were maintained by the CRTC last year, to the great dismay of private broadcasters, who have been hoping for several years that these quotas would be revised downwards. Again on Tuesday, Cogeco maintained that these tags are not “in line with the tastes” of listeners.
“We need flexibility. At the moment, the audience is leaving us, especially among music radio stations, because they consume platforms where the content and music are of their choice, whereas we must respect a lot of parameters,” illustrated Marc Thibault, the general director of Cogeco Media.