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CBC Cuts Coming? We might be at risk at loosing Compass again

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On Wednesday CBC: Compass hour, Bruce had announced the CBC was looking for more money from the federal government.

Then on Wednesday/Thursday the Globe & Mail reported:

CBC senior management denied asking for more public money this week.

It appears the CBC has an issue with about $400 million in funds. The CBC receives has a budget of $1.5 billion dollars with $900 million coming from the federal government on a yearly basis.

So if all hell breaks loose at the CBC this year and things go as mentioned above, the CBC could be out more then 25% of their budget.

When you loose 25% of your budget, there is due to be cutbacks whether you like it or not.

Right before the cuts in 2000, it was 3x more expensive for the CBC to put on local supper hour programs then the income generated from the local programming. It was costing them $70 million to receive $25 million in ad revenue. I am not sure where the margins are now however this data is from 2000 or 9 years ago and isn't exactly up to par. The cost for advertising for numerous supper hour segments on something like Compass is around $4000 with the video being filmed.

With this major loss of income in 2009, we Islanders might be at risk to loosing some of our CBC Compass supper hour unless the CBC goes with alternative measures. Some alternatives that have been suggested include more americanized content. Apparently the CBC is currently using almost exclusively Canadian content.

In a letter from the CEO of CBC, he went on to state that, "jobs, services and programs" would be affected".

This year, the CBC projects it will lose between $55 million and $65 million. Most of it which will be absorbed by the CBC's savings accounts. Next year, job cuts and asset sales may be used to help cut cost at the CBC.

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