Presentation to the StandingCommittee on Canadian Heritageon the State of the CanadianBroadcasting System by:

Carole Taylor, O.C.Chair of the Board of Directors

Robert RabinovitchPresident and CEO

March 14, 2002

CBC Panel

• Carole Taylor, Chair of the Board of Directors

• Robert Rabinovitch, President and CEO

• Michel Tremblay, Vice-president, Strategy and Business Development

Canada’s Most Important Cultural Institution

• The importance of public broadcasting to Canadians

• CBC committed to producing innovative and uniquely Canadian programming

• Setting the standard for news and public affairs

TV & RadioRadioTV

CBC’s Journalistic PresenceNewfoundland and LabradorCorner BrookGanderGoose BayLabrador CitySt. John’sPrince Edward IslandCharlottetownSummerside

Nova ScotiaBaie St.MarieHalifaxSydneyYarmouthNew BrunswickBathurstCampbelltownCaraquetCarletonFrederictonGrand FallsMonctonSaint JohnQuébecBaie ComeauChicoutimiGaspéIles de la Madeleine

KuujjuaqMataneMontréalQuébecRimouskiRouyn-NorandaSept-IlesSherbrookeTrois-RivièresOntarioHawkesburyHearstKingstonKitchenerLondonOttawaSudburyThunder BayTimminsTorontoWellandWindsor

ManitobaBrandonThompsonWinnepegSaskatchewanLa RongePrince AlbertReginaSaskatoonYorktonAlbertaCalgaryEdmontonLethbridgeBritish ColumbiaKelownaNelsonPrince GeorgePrince RupertVancouver and SurreyVictoriaNunavutCambridge BayIqaluitNorthwest TerritoriesForth SmithInuvikRankin InletYellowknifeYukonYellowknife

What CBC Means to Canadians

• Connecting Canadians– Telling our stories– Reflecting the regions to a national audience – Providing a life-line service to many – Giving Canadians a unique Canadian perspective on

domestic and world events

• Being an incubator for Canadian talent

• Taking programming risks

CBC: More Important than Ever in a Media-Cluttered World

• Dedicated to providing Canadians with a concrete sense of their roots and identity through our distinctive programming

• The CBC remains a cornerstone of Canadian culture and of the broadcasting system

• Public policy must recognize and reflect this reality

“The only thing that matters in

broadcasting is programming content.”

Source:…..

Meeting the Needs of Canadians

• Our objective is to deliver programming to Canadians in the form and at the time they choose on all available platforms:– Radio and television networks and stations – Wireless news– Youth internet services– Pay audio service

Significant Challenges Remain

• The availability of television programming has more than doubled over the last 10 years

• More than $1 billion in CTF funding and millions in tax credits

• …yet the viewing to Canadian programming has not increased in either the English or French markets, especially in prime-time

English TV

27 26

73 74

1992-93 2000-01

Foreign

Canadian

French TV

69 62

31 38

1992-93 2000-01

Foreign

Canadian

Viewing to Canadian Programs: A 10 year comparison

Viewing to Canadian and Foreign Programs on English TV and French TV7pm-11pm

1992-93 and 2000-01%

(NMR - September to August data)Source:

Why Canadians Aren’t Watching More Canadian Shows

• Market fragmentation– With the explosion in availability of new specialty services,

viewing options have been spread over more services– No corresponding rise in viewing to Canadian programming

• Give Canadians opportunities and they will watch!– A People’s History 16 million Canadians reached– Random Passage 1.2 million Anglophone viewers– Music Hall 1.6 million Francophone viewers

Viewing to Canadian Programs in Prime-time per Program Source

French TV

35

34

14

3

11

3

Radio-Canada*

RDI

TVA

TQS

English TV

41

9

34

4

93

CBC TV*

Newsworld

CTV Global/Canwest

(NMR - September to August data)

7pm-11pm2000-01

%

Base: 26% Base: 62%

* excludes CBC TV/Radio-Canada affiliates in their own time** includes Canadian educational broadcasters and U.S. conventional***Includes Télé-Québec, TFO & Radio-Canada affiliates in their own time

Other Non-Pay**

Pay/Specialty

Other Non-Pay**

Pay/Specialty

Source:

Programming Economics: A Major Factor

• Quality Canadian programming is costly yet can not recover its costs in the market – Da Vinci’s Inquest costs $1 million per episode yet

generates less than $100,000 in advertising

• This reality applies to all players in the system and has a fundamental impact on prime time, especially in the English market

Prime-time: The Most Important Viewing Period

Hourly Viewing Curve of All Television StationsMonday to Sunday, All Persons 2+

January to December 2000

Vie

win

g Le

vel (

%)

(NMR)

50%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%6:

00 -

6:1

5AM

7:00

- 7

:15A

M

8:00

- 8

:15A

M

9:00

- 9

:15A

M

10:0

0 -

10:1

5AM

11:0

0 -

11:1

5AM

12 N

OO

N -

12:

15P

M

1:00

- 1

:15P

M

2:00

- 2

:15P

M

3:00

- 3

:15P

M

4:00

- 4

:15P

M

5:00

- 5

:15P

M

6:00

- 6

:15P

M

7:00

- 7

:15P

M

8:00

- 8

:15P

M

9:00

- 9

:15P

M

10:0

0 -

10:1

5PM

11:0

0 -

11:1

5PM

12:0

0 -

12:1

5AM

1:00

- 1

:15A

M

2:00

- 2

:15A

M

3:00

- 3

:15A

M

4:00

- 4

:15A

M

5:00

- 5

:15A

M

7pmto

11pm

Source:

Basic Block Schedule Templates CanadianWinter 2002

20 / 20

Dawson’sCreekSmallville

GilmoreGirls

NYPDBlue

8

9

10

Entertainment Tonight

BostonPublic

Raymond

Becker

’70s Show

Spin City

Frasier

The Job

JudgingAmy

Will & Grace

Shoot Me

The Agency

Survivor/ Friends

ThePractice

DarkAngel

King Of HillSimpsons

Malcolm

TheX-Files

BlueMurder

7 Blackfly

OuterLimits

Andromeda

PsiFactor

Mutant X

Bob & Margaret

Specials

Wife & Kids

E R

AllyMcBeal

Who WantsMillionaire

Law &Order SVU W-FIVE

Alias

Degrassi

WeakestLink

Law &OrderPhilly

Drew Carey

Wheel Of FortuneJeopardy

7

8

9

10 ThirdWatch

Scrubs

’80s ShowAccord. Jim

The WestWing

CSI: CrimeScene Inv.

Who’s Line/ CSI

TheAssociates

Exhibit AMysterious

Ways

FigureSkating /

ColdSquad

eTalk

Imagine That21C

Foreign

pm Monday SundaySaturdayFridayThursdayWednesdayTuesdayNetwork

Mr. Bean22 Mins7

8

9

10

Air FarceMarketPlaceIt’s A Living

RandomPassage /Da Vinci’s

Inquest

Life &Times

The NatureOf Things

Disclosure the fifthestate

Witness

Country CanOn The Road

Open-ing

Night

Our Hero

22 MinsRed GreenAir Farce

Made In Can

HockeyNight InCanada

HockeyThe NationalSun. Report

Emily OfNew Moon

RandomPassage /Da Vinci’s

Inquest

Venture

Only titles and country of origin of programs which most frequently occupy time periods are shown.

A strong and vibrant national public broadcaster is the most effective way of ensuring for Canadians a high quality and distinctive Canadian voice.

Simulcast Schedule Templates CanadianWinter 2002

20 / 20

Dawson’sCreekSmallville

GilmoreGirls

NYPDBlue

8

9

10

Entertainment Tonight

BostonPublic

Raymond

Becker

’70s Show

Spin City

Frasier

The Job

JudgingAmy

Will & Grace

Shoot Me

The Agency

Survivor/ Friends

ThePractice

DarkAngel

King Of HillSimpsons

Malcolm

TheX-Files

BlueMurder

7 Blackfly

OuterLimits

Andromeda

PsiFactor

Mutant X

Bob & Margaret

Specials

Wife & Kids

E R

AllyMcBeal

Who WantsMillionaire

Law &Order SVU W-FIVE

Alias

Degrassi

WeakestLink

Law &OrderPhilly

Drew Carey

Wheel Of FortuneJeopardy

7

8

9

10 ThirdWatch

Scrubs

’80s ShowAccord. Jim

The WestWing

CSI: CrimeScene Inv.

Who’s Line/ CSI

TheAssociates

Exhibit AMysterious

Ways

FigureSkating /

ColdSquad

eTalk

Imagine That21C

Foreign Simulcast Foreign

pm Monday SundaySaturdayFridayThursdayWednesdayTuesdayNetwork

Mr. Bean22 Mins7

8

9

10

Air FarceMarketPlaceIt’s A Living

RandomPassage /Da Vinci’s

Inquest

Life &Times

The NatureOf Things

Disclosure the fifthestate

Witness

Country CanOn The Road

Open-ing

Night

Our Hero

22 MinsRed GreenAir Farce

Made In Can

HockeyNight InCanada

HockeyThe NationalSun. Report

Emily OfNew Moon

RandomPassage /Da Vinci’s

Inquest

Venture

Only titles and country of origin of programs which most frequently occupy time periods are shown.

How do we Strengthen the CBC?

1. Reconfirm the pivotal role of CBC in the system and provide it with the necessary flexibility to serve Canadians

2. Re-balance policy and funding instruments to provide support to those that are committed to distinctive Canadian programming

3. Introduce multi-year funding for CBC to facilitate program planning and increase operating flexibility

Preserving a Distinctive Voice for Canadians

With your help we will have the tools to ensure wekeep setting the standard for what Canadian broadcasting can be and to preserve a truly distinctive voice for Canadians.