Conventional broadcasters' profits dive

Canada's conventional private broadcasters suffered a dramatic plunge in profit in 2008, according to figures from the Canadian Radio-television and Telecommunications Commission.

The federal broadcast regulator released a report Tuesday saying profit before interest and taxes at the private broadcasters was $8 million in the year ended Aug. 31, down from $233.4 million in 2007.

The CRTC compiles annual data on the conventional broadcasters, which include CBC, CTV and Global.

It found they earned $2.1 billion in total revenue in 2008, a decrease of 1.5 per cent. Local advertising, which totalled $387.3 million, remained almost unchanged, but national advertising sales fell to $1.47 billion, a decrease of $50 million or 3.3 per cent.

The federal regulator has agreed to review the scope of the licence renewal hearings for the private conventional television stations this April because of what were described as the "challenges" of the broadcast environment.

There have been layoffs announced at both Global and CTV and the broadcasters are believed to be facing even steeper declines in ad sales.

Despite their declining profitability and lower ad revenues, the private conventional networks increased the amount of money they spent on foreign programming in 2008, the CRTC says.

Total spending by private broadcasters on foreign programming rose 7.4 per cent to $775.2 million.

CTV bought Mad Men as a mid-season replacement, as well as Fringe, 11th Hour and The Mentalist, and Global has U.S. shows such as Boston Legal, House, and Brothers and Sisters.

Spending on Canadian programming remained almost unchanged, totalling $619.6 million:

• $88.3 million for drama.
• $90.4 million for general interest programming.
• $323 million for news.
• $67.2 million for other information programs.
• $24.7 million for musical and variety shows.
• $7.5 million for sports.
• $16.6 million for game shows.

The broadcasters said their operating expenses rose four per cent to $2.1 billion.