Television journalists work before the announcement of the new leader of the Conservative Party of Canada, in Ottawa on Sunday, Aug. 23, 2020. As many as 40 local television outlets and up to 200 Canadian radio stations could be forced to close in the next three years as the pandemic adds to financial pressures media companies were facing before COVID-19, according to a new study from a media advocacy group. THE CANADIAN PRESS/Justin Tang

Television journalists work before the announcement of the new leader of the Conservative Party of Canada, in Ottawa on Sunday, Aug. 23, 2020. As many as 40 local television outlets and up to 200 Canadian radio stations could be forced to close in the next three years as the pandemic adds to financial pressures media companies were facing before COVID-19, according to a new study from a media advocacy group. THE CANADIAN PRESS/Justin Tang

Media study says hundreds of Canadian radio stations, TV outlets risk closure

Radio stations may be hardest hit in the short term, the report suggests

As many as 40 local television outlets and 200 Canadian radio stations could be forced to close in the next three years as the financial pressures faced by media companies intensify under the COVID-19 pandemic, suggests a new study from an industry advocacy group.

The Canadian Association of Broadcasters issued a report on Wednesday warning of potential closures and widespread job cuts as private TV and radio broadcasters face a cumulative projected revenue shortfall of up to $1.06 billion by the end of 2022.

Most vulnerable are the country’s AM radio stations, the report said, as well as other independent private radio and TV operations in smaller markets across the country.

The study, titled “The Crisis in Canadian Media and the Future of Local Broadcasting,” was commissioned by the CAB, which represents the majority of private broadcasters in Canada, and conducted through Winnipeg-based independent media economics consultancy Communications Management Inc.

The CAB says it’s concerned about the fallout from a substantial erosion in local advertising revenues over recent months.

Radio stations may be hardest hit in the short term, the report suggests, partly due to many advertisers pulling back on their spending in the pandemic and hastening a decline in the media industry’s revenues.

Private radio ad revenues are expected to be $383 million below last year, it said.

The report’s projections suggest that without further government support those declines could mean as many as 50 private local radio stations go out of business over the next four to six months.

Another 150 radio stations could topple in the 18 months that follow, it said, leading to as many as 2,000 job losses.

TV stations could risk a similar fate with roughly 40 of Canada’s 94 private TV broadcasters in danger of closing within one to three years, the research predicts.

The CAB is calling on the Canadian Radio-television and Telecommunications Commission to take swift action by establishing a “more fair and sustainable future” for local media.

Last month, the organization sent an emergency application to the CRTC requesting permission for broadcasters to be relieved of certain terms of their agreements, such as spending requirements on Canadian programming, for the broadcast year that ends Aug. 31.

Lenore Gibson, chair of the CAB, said broadcasters have “done their utmost to cut expenses” in areas such as administration, and “the last thing that they want to do is cut into programming costs, but that’s the only area that’s left now.”

The CAB is urging the federal government to provide emergency regulatory relief as well as greater “targeted support” for the industry starting this fall.

Without greater financial measures in place, the CAB says the effects could leave many communities with only national and international media organizations to provide them with most of their news, effectively eliminating most community coverage of local politics, health and education in some regions of the country.

ALSO READ: City-centre businesses mount slower recovery than rural areas, CFIB says

David Friend, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Media industryMovies and TVRadio

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Pen High student Myles made this Little Library in his woodworking class and it now stand in front of West Bench Elementary. (Submitted)
Penticton Secondary student makes Little Library for primary school

The Little Library has been installed in front of West Bench Elementary

The Desert Centre in Osoyoos opened on Saturday for the season. (Contributed)
Osoyoos Desert Centre opens for the season

‘Getting out in nature is one of the most important remedies [during] COVID restrictions.’

The Pencticton Vees beat the Trail Smoke Eaters 7-0 in the second to last game of the season on Saturday. (Pentiction Vees photo)
Penticton Vees play last game of season today at 4 p.m.

The Vees have dominated the league in wins and play the Cranbrook Bucks at 4 p.m.

This is where the new BC Housing for people experiencing homelessness will go on Skaha Lake Road, blocks from the popular tourist spot Skaha Lake park and lake. (Jesse Day file photo)
LETTER: No on-site drug use means it will be done nearby Skaha Park

Recovery and accountability are good ideas but not near popular tourist beach

Book Shop by Michael Law
There’s magic and colourful history at Penticton’s largest and oldest book store

The Book Shop, like so many businesses, is wanting to turn the page to the end of this pandemic

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

Spallumcheen councillors (from left) Todd York, Gerry Popoff, Christine LeMaire, John Bakker, Joe Van Tienhoven and Andrew Casson join Mayor Christine Fraser (fourth from left) in helping to proclaim the township open for business with new signage off Highway 97A. (Township of Spallumcheen photo)
Being open for business paying dividends for Okanagan township

Spallumcheen wins provincial award, new business and building starts increase

Pieces of nephrite jade are shown at a mine site in northwestern B.C. in July 2019. THE CANADIAN PRESS/HO-Tahltan Central Government MANDATORY CREDIT
Indigenous nation opposes jade mining in northwestern B.C.

B.C.’s Mines Act requires operators to prepare a plan to protect cultural heritage resources

Salmon Arm Silverbacks forward Mathieu Bourgault (13) tries unsuccessfully to deflect past West Kelowna goalie Johnny Derrick during the Warriors’ come-from-behind 7-6 BC Hockey Leaguje pod shootout victory Saturday, May 8, at Vernon’s Kal Tire Place. (Tami Quan Photography)
West Kelowna Warriors rally to edge Salmon Arm in shootout

Warriors overcome three significant deficits to post 7-6 BCHL pod win in Vernon; Silverbacks finish pod 9-7-2-2

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman’s body found in Kootenay National Park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

People pass the red hearts on the COVID-19 Memorial Wall mourning those who have died, opposite the Houses of Parliament on the Embankment in London, Wednesday, April 7, 2021. On May 3, the British government announced that only one person had died of COVID-19 in the previous 24 hours. THE CANADIAN PRESS/AP-Kirsty Wigglesworth
For a view of a COVID-19 future, Canadians should look across the pond

Britain, like Canada, is one of the only countries in the world to delay second doses for several months

Edmonton Oilers’ Connor McDavid (97) celebrates his 100th point this season with Leon Draisaitl (29) against the Vancouver Canucks during second period NHL action in Edmonton on Saturday, May 8, 2021.THE CANADIAN PRESS/Jason Franson
Edmonton superstar McDavid hits 100-point mark as Oilers edge Canucks 4-3

NHL scoring leader needs just 53 games to reach century mark

Most Read