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Lecture 9

CMN 4115 Lecture Notes - Lecture 9: Common Booster Core, Commonwealth Broadcasting Association, Externality

Course Code
CMN 4115
Michael Strangelove

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Lecture 9
It was the liberals who began the first wave of slashing CBC.
Since 1980 the dominant economic theory…policy platform
!All operating under neo-liberal
!Transfer of public to private
!Tremendous transfer of wealth of taxes from public to elite’s
pockets through government.
National audience share.
A series of speciality channels
!Channels created to attracted a particular channel.
!E.g. space, spider
!They are packaged in the bundle and you pay for the bundle.
Cable rates have been increasing 3 times the rate of inflation.
The cable industry is a mature market.
Cable and satellites are mature markets.
They grow with new house formations
Canada and US the housing is fairly slow growing and it grows at the rate of
new babies.
Slow growth in new housing formation.
How do you make money in a mature market?
!Steal customers
!Raise your rates
Netflix market is not a mature market
Its an entirely new field
There are couple billion people who have not yet subscribed to any online tv.
Profitability of radio in Canada
Ad budget remains relatively same but the audience is moving online
!Companies are taking 10-20% of budget and moving it to online.
People who watch news are urban educational professionals or tax payers.
46% of Canadian homes have no use for the internet
28% of Canadians don’t have a home computer
98% unless you are extremely poor you have tv subscription.
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Revenues holding steady but listeners are dropping
!Charging more
19 out of 21
!canadan’s ranking of CBC in terms of audience reach
if you are not very successful as a broadcaster, they are not listening to you
Mature markets
Slow growth
Market failure creates a need
Comemrical TV can provide us with info news for the popular culture.
They are interested in serving us as consumers
Our needs as citizens, regional, local national are not served by commercial
Justification why we find all modern democracies have some form of PSB.
Contradiction between the market which drives for profit maximization,
make as much money possible. Issues of common good etc.
That imperative, industrial imperative.
Maximization that drives
Profit maximization is irreconcilable with national and cultural political goals.
!Contradiction within market system between our needs and
shareholders needs
Another contradiction:
!Nationalism (sense of belonging to nation) and the public service
are complementary but also contradictory.
!Nationalism demands the aggregation (when you bring lots of
audience together…mass) of a single audience of a shared taste
interest and culture.
!In that whole nation there is a whole bunch of publics…Christian,
jewish. Etc.
!Nationalism contradicts and comes up against the issue of needs
and interests of plural publics
!Needs to create national citizenry and its needs to address
individual groups as well.
Presentation 1
!CBC Radio 2
!Liberal model
!The public through taxation might spend millions of $ towards CBC
or radio, streaming online.
!Is this a service that its affectedness should be measured in terms
of is it generating a profit or breaking even?
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