Hundreds of radio stations, TV outlets risk closure: study

As many as 40 local television outlets and 200 Canadian radio stations could be forced to close in the next three years as the financial pressures faced by media companies intensify under the COVID-19 pandemic, suggests a new study from an industry advocacy group.

The Canadian Association of Broadcasters issued a report on Wednesday warning of potential closures and widespread job cuts as private TV and radio broadcasters face a cumulative projected revenue shortfall of up to $1.06 billion by the end of 2022.

Most vulnerable are the country’s AM radio stations, the report said, as well as other independent private radio and TV operations in smaller markets across the country.

The study, titled “The Crisis in Canadian Media and the Future of Local Broadcasting,” was commissioned by the CAB, which represents the majority of private broadcasters in

Canada, and conducted through Winnipegbased independent media economics consultancy Communications Management Inc.

The CAB says it’s concerned about the fallout from a substantial erosion in local advertising revenues over recent months.

Radio stations may be hardest hit in the short term, the report suggests, partly due to many advertisers pulling back on their spending in the pandemic.

Private radio ad revenues are expected to be $383 million below last year, it said.

The report’s projections suggest that without further government support those declines could mean as many as 50 private local radio stations go out of business over the next four to six months.

Another 150 radio stations could topple in the 18 months that follow, it said.

TV stations could risk a similar fate with roughly 40 of Canada’s 94 private TV broadcasters in danger of closing within one to three years, the research predicts.