Thank you, Madam Chair, and members of the committee.
I had hoped to join you last month prior to the committee rescheduling our meeting, so I'm glad we're having this important conversation today.
Since Bell acquired CTV in 2011, the global media industry has drastically changed. The industry is in flux due to technological disruption, changing viewer habits, shifting advertiser demand and vigorous competition from foreign web giants that are not subject to the same costly regulations as Canadian broadcasters.
Half of all households will not subscribe to traditional TV in 2026. Meanwhile, streaming revenues, already in the billions, rose 14% last year and will increase by an additional $500 million this year, disproportionately benefiting foreign web giants. Audiences now expect around-the-clock access to news, and media companies have had to adjust.
Some have sought to distort the facts about Bell's restructuring. We should all agree that facts matter, so here are some important facts.
First, Bell continues to invest in news and media. Since I became CEO in 2020, Bell Media has invested more than $1 billion in capital to better serve our viewers, not to mention the additional $22 billion invested in world-leading wireless and fibre Internet networks among other customer enhancements. This is on top of the almost $1.7 billion a year we invest in content. Despite these massive investments, CTV conventional stations lost more than $180 million last year, and Bell Media loses more than $40 million a year on news alone.
Second, Bell Media far exceeds all its regulatory obligations for local news. We air more than 25,000 hours of local news per year, and that's 150% more than the CRTC requires.
Third, CTV News Channel, CP24 and BNN, air 20,000 hours of news per year, and that's 300% more than the CRTC requires.
Fourth, CTV publishes approximately three times more digital news stories on an average day than when Bell acquired it 13 years ago.
Fifth, CTV now airs more original national newscasts than at any point in the network's 60-plus year history.
Sixth, for the first time ever, CTV National News will soon have dedicated journalists telling stories from all 10 provinces and 35% more correspondents than prior to 2023.
Seven: We are investing more than ever in francophone content. In 2021, we launched Noovo Info. Think about this: During a challenging time, Bell Media built a newsroom from the ground up. We hired a team of francophone journalists to broadcast news in five markets across Québec. Since then, the newsroom has grown 25%.
And finally, eight: Our Crave streaming platform offers almost 11,000 hours of French-language content. What’s more, our Rouge FM program Véronique et les Fantastiques recently announced that it would play only French-language music.
No other Canadian media company has made investments of this scale, but it is not enough to overcome the challenges facing our industry.
As a result, Bell made the difficult decision to implement workforce reductions through departures and the elimination of vacant positions. Less than 10%, or 440 positions, were at Bell Media. We know this is difficult for those affected, and we're supporting them with fair severance packages, career transition services and continued access to health benefits. We have also met all our obligations under collective bargaining agreements.
Bell is not alone. In the past year, the CBC announced it will cut 800 positions, TVA has eliminated close to 550 positions and Corus has reduced its workforce by at least 15%. Last year, Telus announced 6,000 job reductions, and Rogers has also restructured. The list is long and includes Shopify, Canada Goose, Lightspeed, Postmedia, Metroland, SaltWire, Paramount, Disney, Microsoft, Apple and Meta, as well as others in the U.S.
Let me be clear that we're not asking for special protections. We're asking for a level playing field with global web media giants. The regulatory framework has been too slow to adjust to the massive challenges we're seeing. The Online Streaming Act took three years to develop, and it has still not been implemented.
Bell pays almost $2 billion a year in federal regulatory fees and contributions. In contrast, Amazon, Disney, Netflix and others, each many times larger than Bell, have not paid anything despite the billions of dollars in revenue they earn from Canadians.
I hope to use our two hours together to discuss constructive solutions so that future generations have access to stories that reflect them and our country.
Thank you.
