Evidence of meeting #32 for Canadian Heritage in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was advertising.
A recording is available from Parliament.
Liberal
Fares Al Soud Liberal Mississauga Centre, ON
From your experience from a newsroom economic standpoint, does proximity to a major hub like Toronto crowd out investment in distinct local reporting capacity in adjacent cities?
Vice-President, CTV News, Bell Media Inc.
No, not necessarily. I mean, a good story is a good story. Our news organizations in Toronto, be they CTV Toronto or CP24, have long held the point of view that their responsibility is to cover not just the city of Toronto but also the broader greater Toronto-Hamilton area.
Liberal
Fares Al Soud Liberal Mississauga Centre, ON
Fantastic. Thank you, Mr. Gray.
Mr. Simard, regional broadcasters operate under very different market conditions. In some regions, local news production is no longer commercially viable at all, while in other regions it is.
What distinguishes those markets from the ones that are still operating?
Vice-President, Groupe Radio Simard
It is clear that the size of markets has a significant impact on that. We rely primarily on local advertisers, so the healthier the local market, the better positioned we are to remain viable. Generally speaking, radio stations in our markets are still effective. As Ms. Jamet mentioned earlier, radio continues to reach and engage with the public.
As a result, when investment is made in our media through advertising, advertisers are still able to achieve results. That is one of the key features of small markets. That said, competition in these markets is extremely fierce. We are not alone in any of our markets, and our competitors are facing the same challenges we are when it comes to labour and efficiency.
We are sharing a pie that is shrinking year after year. Consequently, we have to compete increasingly aggressively, despite a sharp rise in operating costs, many of which are beyond our control. The cost of equipment, for example, has increased dramatically in recent years. At the moment, this makes the business model difficult to sustain.
Liberal
Fares Al Soud Liberal Mississauga Centre, ON
When resources decline, what tends to be cut first, in practice? Is it the number of journalists, the extent of coverage or the depth of reporting?
Vice-President, Groupe Radio Simard
In our region, journalism hasn't been affected, at least not in recent years. In fact, it's the cornerstone of our local stations. We want to continue playing our role and offering a high-quality service. As a result, we didn't have to make that agonizing choice. As a group, we were able to restructure our operations, adapt our approach and avoid reducing the number of journalists. To date, we have maintained that staffing level, and we intend to continue doing so.
Liberal
Fares Al Soud Liberal Mississauga Centre, ON
Thank you, Mr. Simard.
Ms. Cena, community television often fills gaps left by larger players. From the feedback you've received, where are those gaps most prominent?
Executive Director, Tri Cities Community TV
Thank you for the question.
For our organization, the gaps are in equipment. Our funding only goes so far. We split the LJI funding between two journalists, who do a great job. We always have them working by the seat of their pants—interviews here and interviews there. Having said that, we struggle with equipment. We try to keep our journalists happy. The LJI funding, though, is only for the people who are creating the stories. It isn't for me, someone who interviews. It isn't for equipment. Eighty thousand dollars only goes so far. That's what we are getting. I'll just be fully transparent. We were surprised to get that, but the Canada Media Fund has been excellent in providing us with that, and we hope the program continues. I know it goes until 2027.
As you heard earlier, multi-year funding would really help us out. A lot of newspapers have gone by the wayside, like our Tri-City News. A few weeks ago, or maybe a month ago, Freshet News was here supporting their stance. There are outlets, but they are few and far between. I feel that a connection—what we're doing—is really important.
I know everyone is here to talk about everything on a global level. I feel like a small fish in a big pond, but I'm here to be in the pond. As big or as small as it is, I'm really grateful, so thank you for the question.
Liberal
Bloc
Martin Champoux Bloc Drummond, QC
Madam Chair, with your permission, we're going to take a little trip down memory lane.
I'd like to address Michel Lorrain.
When we worked together, Michel, back in 1990–1991, you were the morning host at CHLN. I was there as well. I hosted on weekends, and I was the producer of the program Omnibus with Michel Charland at noon. We had news programming throughout the day. At the time, we called it talk radio, and there was another AM station competing with us, as well as two FM stations. It was a radio market that was fairly representative of markets in similar-sized cities. But above all, there was that strong connection between radio and its community. There was a real relationship with listeners, with the local population. Radio stations like the one we worked at were deeply involved in their communities at the time.
Does that very close, almost fiercely loyal, connection between citizens and their local radio station still exist?
Does that sense of magic still exist in the relationship people have with regional radio stations?
President and broadcasting consultant, MLorrain Conseils, Groupe Radio Simard
First, there is still a desire to do so, although to a lesser extent than 40 years ago, obviously, for many good reasons—first and foremost economic reasons. Even so, I've witnessed a deep rooting of certain radio stations in their communities. A good example can be found in the Groupe Radio Simard stations in Rivière-du-Loup, where a significant amount of money is still invested in news and public affairs, precisely to maintain that connection with the community.
I would add that there are even activities that, from an external perspective, could be described as unprofitable. Broadcasting the finals of the Bas-Saint-Laurent senior baseball league is one such example. It's not an activity that generates revenue, but it does reinforce the bond between the radio station and the community.
In Roberval, when the first three or four swimmers finish crossing the lake, all the other media leave, except radio. I've seen it myself. The radio stays on site to cover the event until the very last swimmer emerges from Lac Saint-Jean. This is not a profitable activity, but it's one that creates a lasting connection with the community.
Bloc
Martin Champoux Bloc Drummond, QC
There's been a lot of talk about the financial or economic challenges facing the sector, but I felt it was important, in closing, to highlight this close relationship between radio stations and their communities.
President and broadcasting consultant, MLorrain Conseils, Groupe Radio Simard
Radio is an old medium, as was mentioned earlier, but it is still listened to by 85% of the population every week. We should never forget that.
Liberal
The Chair Liberal Lisa Hepfner
Thank you, everyone.
Thank you to all the witnesses.
Thank you very much for your time.
If there's something you've forgotten to mention today or something that occurs to you later, or if you come across more data that you think this committee should have, please submit it to us through the clerk. We can include that information as we develop a report at the end of this study.
Thank you again for your time today.
The meeting is adjourned.