The Canadian Radio-television and Telecommunications Commission (CRTC) has granted Corus Entertainment Inc.’s request to ease some of its Canadian content spending requirements due to financial difficulties. The CRTC approved Corus’ plea to lower its spending on programs of national interest for its English-language stations to 5 percent of revenue from 8.5 percent. The decision was made in response to Corus citing severe financial constraints due to declining advertising revenue and high inflation. Corus is a vital source of news through its Global Television Network and is the largest provider of independent programming in Canada.
Corus President and CEO Doug Murphy welcomed the CRTC’s decision, calling it the most substantive move towards regulatory change that the company has seen in years. He expressed hope that this decision could lead to broader changes in the regulatory regime that are long overdue. The CRTC clarified that the overall amount Corus must spend on Canadian programming has not changed, but the decision grants more flexibility to the company in choosing the type of Canadian programming it invests in while continuing to support news programming.
The CRTC’s ruling also includes an extension of Corus’ repayment deadline for under-expenditures of Canadian programming requirements, providing the broadcaster with more flexibility to navigate revenue volatility. The approval means that Corus will now be able to carry forward under-expenditure amounts into its next licence term. The regulator also pointed out that Corus no longer benefits from the flexibility given to broadcast distributors to fund local news content, as it is not affiliated with Shaw Communications Inc. anymore, which was acquired by Rogers Communications Inc.
The CRTC stated that requests from other broadcasters for regulatory relief will be considered as part of its ongoing plan to modernize the Canadian broadcasting framework. Among these applications was a filing by Bell Media requesting relief from spending requirements on local news and Canadian content for English-language television stations. The CRTC’s plan to modernize national broadcasting regulations is in response to Bill C-11, the Online Streaming Act, which received royal assent in April 2023. The legislation aims to update the Broadcasting Act to require digital platforms to contribute and promote Canadian content.
The CRTC is currently in the second phase of its work on modernizing national broadcasting regulations, which is expected to last through 2026. The decision to grant Corus Entertainment Inc. regulatory relief is seen as a significant move in response to the changing broadcasting landscape and financial pressures faced by broadcasters. The CRTC’s decision provides Corus with the flexibility needed to navigate its financial challenges while continuing to provide vital news and programming content to Canadian viewers.
