Saturday, 9 June 2012

Radio Revenues Rising, Community Grants Increasing

Radio Revenues Rising, Community Grants Increasing
Jun 7, 2012
Online streaming music services and Web-based radio stations are gaining listeners and ad income, yet traditional radio revenues increased by approximately four per cent over the previous year, demonstrating steady growth and continued confidence in an industry whose revenues are now back to pre-recession levels.

As one example of radio’s resurgence, there were 13 additional FM stations operating in Canada in 2011, bringing the number to 535. These stations combined for $1.3 billion in total revenues, up from $1.24 billion in 2010.
That’s according to the Canadian Radio-television and Telecommunications Commission (CRTC), and the statistical and financial information on the 669 commercial radio stations operating in Canada for the broadcast year ended August 31, 2011, it has released.
Meanwhile, some 35 five campus and community radio stations, broadcasting from Saint John to Shawinigan to Kamloops, are set to increase local programming thanks to the latest round of funding from the Community Radio Fund of Canada (CRFC).
The CRFC is awarding $267,742 under its Radio Talent Development Program and Youth Internship Program. This brings the total amount of funds distributed since the CRFC was founded in 2008 to more than $760,000.
The Radio Talent Development Program and Youth Internship Program are made possible by Canadian Content Development (CCD) contributions from Astral Media Radio, totalling $1.4 Million over seven years. The goal of both programs is to develop innovative local-interest programming while providing mentorship, education and training for broadcasters. This summer the CRFC will release its Radiometres program, with additional CCD contributions coming from Canada’s commercial broadcasters. With the new funding, the CRFC will distribute up to $1,000,000 this year, with individual stations able to apply for up to $20,000 through an outcomes-based model.
A complete list of recent recipients is available online.
The CRTC compiles financial data on the Canadian broadcasting and telecommunications industries to produce a series of reports each year, including the recent commercial radio report.
The CRTC also recently published the 2011 financial results for conventional television stations, specialty, pay and pay-per-view television services and video-on-demand services, and broadcasting distribution companies.
This year’s report on the radio industry provides data on a national basis and by individual markets, as well as on the 82 radio stations operated by the Canadian Broadcasting Corporation.
While total revenues for AM and FM stations increased from $1.55 billion in 2010 to $1.6 billion in 2011, expenses also rose from $1.21 billion to $1.26 billion during the same period. As a result, profits before interest and taxes (PBIT) climbed from $298.3 million to $311 million, and the PBIT margin went from 19.2% to 19.3%.
There were 13 additional FM stations in 2011, bringing the number of FM stations operating in Canada to 535. These stations combined for $1.3 billion in total revenues, up from $1.24 billion in 2010.
Revenues for English-language FM stations grew by 4.9% to $1.04 billion, while those for French-language FM stations increased by 2.8% to $246.7 million. Ethnic FM stations, for their part, posted revenues of $19.8 million, representing an 11% increase over the previous year.
The number of AM stations in Canada continued to decline from 141 in 2010 to 134 in 2011 as a number of stations converted to the FM band. Nevertheless, total revenues increased by 1.2% for a total of $311 million, surpassing the $307 million generated in 2010. Revenues for English-language AM stations went from $272 million in 2010 to $274 million in 2011, a 1% increase. For the first time since 2006, the French-language AM stations reported an increase in revenues, which climbed by 4.7% to $11.7 million.
Finally, ethnic AM stations saw their revenues increase by 1.6% for a total of $24.4 million.
In 2011, commercial radio stations employed 10,576 people and paid a total of $676.3 million in salaries, an increase of 4.7% from last year when they employed 10,104 people and paid $640.7 million in salaries.
The Community Radio Fund of Canada is the national not-for-profit funding body for the growth and sustainability of campus and community radio. Approximately 175 community-based radio stations across Canada make up the community-owned, volunteer-driven sector of Canadian broadcasting. The CRFC helps develop and enrich this vital broadcasting sector to ensure local, public-access radio for Canadian communities.
“We have established an amazing track record these past four years,” said CRFC President John Harris Stevenson. “We’ve funded more than a hundred very diverse initiatives, all across Canada, in multiple languages, resulting in more than a thousand hours of new local programming.” Stevenson adds, “It’s also a nice way to get ready for the launch of our newest program.”
“With the funding from the CRFC, our regular listeners and visitors can discover or rediscover the local area,” said Jacques Chartier, Station Manager of CJRG-FM Radio GaspĂ©sie in GaspĂ©, Que. “This funding helps us to better meet our mission.”
John K. Muir, Station Manager of CFFF-FM Trent Radio in Peterborough, ON agrees. This is the second time they’ve been awarded funding from the CRFC and they say it helps them build on the station’s existing successes. “Trent Radio strives to provide hands-on learning opportunities and outreach to the community. So with this funding, we will be able to hire a Summer Events Intern Correspondent, who will be given the opportunity to learn about radio while producing local content.”

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