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

Federal Conservative leader Erin O’Toole speaks during a virtual South Surrey & White Rock Chamber of Commerce town hall on Saturday, March 6, 2021.
O’Toole says South Surrey, White Rock face ‘acute’ challenges during pandemic

Federal Conservative leader speaks at local chamber town hall

A sign encouraging COVID-19 safety steps, with the Bayside rugby clubhouse – located adjacent to Semiahmoo Secondary and the South Surrey track – in background; Jan. 6, 2021. (Photo: Tracy Holmes)
Surrey sees 2,400 new COVID-19 cases in February

This is the lowest monthly increase since last fall

Liberty roses – created by acclaimed rose breeder Brad Jalbert – will be planted in White Rock later this month. (Contributed photo)
‘Liberty Rose’ to be planted along Johnston Road and at White Rock City Hall

Poppy-like rose created by acclaimed rose breeder Brad Jalbert

South Surrey’s Kirk Arsenault has started a new company, Str8laced, that sells cleat wraps that aim to keep athletes’ shoes from coming untied during games and practices. (Contributed photo)
South Surrey sports equipment entrepreneur tying up loose ends before Alberta move

Str8laced wraps keep laces from coming loose in the middle of play, says Kirk Arsenault

Volunteers from Semiahmoo Secondary joined with members of the Lower Mainland Green Team and the White Rock and South Surrey Naturalists Wednesday to remove invasive plants from White Rock’s Ruth Johnson Park. (Contributed photo)
Students, volunteers remove invasive plants from White Rock’s Ruth Johnson Park

Day-long project a collaboration between city, Lower Mainland Green Team

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

The family of injured Willoughby resident Ronald Gerald Jesso is hoping someone saw something that will help solve the mystery of how he came to be so badly hurt on the morning of Feb. 22. Jesso is still in hospital. (Jesso family/Special to Langley Advance Times)
An appeal to help solve the mystery of an injured Langley man

Family of Ronald Gerald Jesso asks witnesses to come forward

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

Most Read