The Canadian Radio-Television and Telecommunications Commission (CRTC) said Thursday it is prepared to temporarily reduce its requirements for Corus Entertainment’s production of content of national interest.
Facing a “difficult” and “restrictive” financial situation marked by a 61% decline in available cash, Corus asked the CRTC to lower its requirements for its English-language television channels. Currently, the group must spend 8.5% of its previous year’s gross revenue on the production of programs of national interest (EIN), a rate that Corus wants to reduce to 5%.
In his letter to the CRTC, Corus Vice President Matt Thompson pointed to the Hollywood writers’ strike and the economic context to explain the media company’s setbacks.
“Rising inflation continues to impact Corus’ business by disrupting supply chains, increasing program, service and labor costs, reducing demand for advertising and reducing demand for the company’s services,” the executive said .
Corus brings together around thirty television channels and around forty radio stations in the country, including the television channels Global, History (Historia in French), Cartoon Network and Teletoon.
Revenue at half the amount
Corus’ revenue has plummeted dramatically. In the first nine months of its 2023 fiscal year, the company posted a 7% decline in gross profit and reported adjusted net profit of 37.6 million to shareholders, down 70% year-on-year.
Corus shares have slumped since the start of the year, falling from just over $2 on New Year’s Day to $0.90 when markets closed on Thursday.
Given “the urgency of the situation,” the CRTC agreed to Corus’ demands on Thursday. However, a decision will only be made in a consultation that runs until the beginning of November.
Recall that Bell Media turned to the federal appeals court last week to protest the CRTC’s decision to renew its licenses without considering its request to reduce EIN requirements.
EINs include drama and comedy, long-form documentaries, music and dance, vaudeville and some awards shows. The CRTC sets EIN minimum rates to encourage various media groups to invest in their production despite the high cost of this type of programming.