CRTC RULES ON SUPER BOWL ADS LED TO LAYOFFS: BELL.
Bell Media cited the federal broadcast regulator’s contested Super Bowl advertising policy as a factor in its decision to cut more than two dozen jobs across the country.
The media division of BCE Inc., Canada’s largest telecommunications company, is reducing positions at more than 24 locations across the country including radio and television stations, spokesman Scott Henderson confirmed in an email Tuesday.
“The restructuring is the result of the challenges Bell Media and other Canadian media companies are facing due to increasi ng i nternational competition, the evolution of broadcast technologies, and advertising and regulatory pressure,” Henderson said.
One such regulation is the Canadian Radio- television and Telecommunications Commission’s new policy that lets Canadians watch big- budget U. S. ads during the National Football League’s championship game.
Bell contends it will lose millions of dollars from the decision introduced in August since it relies on its ability to sell ad space to recoup the costs of its exclusive rights to broadcast the game in Canada.
“There’s definitely been a significant revenue impact from the Super Bowl and other regulatory decisions as well,” Henderson said, although he emphasized the policy is just part of overall pressure on the media environment.
“But the reality is that Bell Media and other Canadian media companies are facing notable change on all fronts, and as a result we need to adjust our business appropriately.”
High-profile radio and TV hosts across the country lost their jobs in this round of cuts. TSN Vancouver hosts Peter Schaad and Scott Rintoul, CHUM FM Radio’s Ingrid Schumacher in Toronto, and CTV Vancouver’s Coleen Christie are among those affected.
Meantime, Bell and the NFL are fighting the CRTC rule in court. The NFL even reached out to U.S. President Donald Trump to put additional pressure on Canada to reverse the decision, which it argues added uncertainty to the business environment. It remains to be seen whether the government will intervene to change the rule before the game on Sunday.
The broadcaster’s last major round of layoffs occurred in 2015 when it cut 380 positions, mostly in production and editorial, from its Toronto and Montreal offices. The cuts sparked fears for the future of local news. Bell’s holdings include CTV, CPTV, BNN and 105 radio stations.
In the most recent reporting period, Bell’s adjusted profit was $ 784 million across all business segments. Revenue from its media division grew 3.5 per cent to $ 716 million and earnings before interest, tax, depreciation and amortization increased 2.2 per cent to $ 187 million. Advertising revenue, however, decreased for both TV and radio.
Bell is scheduled to report its latest quarterly results and 2017 guidance on Thursday.
MEDIA COMPANIES ARE FACING NOTABLE CHANGE.