Corporate Plan Summary 2007–2008 | 2011–2012 New Technologies

OF CANADIANS CHANGING NEEDS MEETING THE HOW WE’RE WHAT’S NEXT? >>

CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 NEW TECHNOLOGIES. NEW EXPECTATIONS. NEW OPPORTUNITIES.

HERE THEY COME>>

IN AN ERA OF CONSTANTLY ACCELERATING CHANGE, WHAT IS THE ROLE OF THE NATIONAL PUBLIC BROADCASTER? WE BELIEVE WE MUST NOT ONLY ADAPT TO CHANGE, BUT LEAD IT. WE’RE ACHIEVING THIS BY CONTINUALLY RENEWING OUR PROGRAMMING TO BETTER REFLECT AN INCREASINGLY DIVERSE SOCIETY. AND WE’RE MAKING THIS PROGRAMMING AVAILABLE TO MORE CANADIANS IN MORE WAYS THAN EVER BEFORE THROUGH TRADITIONAL TELEVISION AND RADIO, INTERNET, SATELLITE RADIO, PODCASTS, STREAMING VIDEO FOR CELL PHONES AND PDAS, AND MUCH MORE. TABLE OF CONTENTS

President’s Message ...... 2 Executive Summary ...... 5 1. Operating Environment ...... 13 2. Corporate Planning and Strategy . . . . 21 3. Financial Plan ...... 37 Appendices ...... 39 PRESIDENT AND CEO’S MESSAGE>>

MAINTAINING OUR CENTRAL ROLE

IN CANADIAN CULTURAL LIFE>>

CBC | Radio-Canada is Canada’s deserve in the rapidly evolving most significant cultural broadcasting environment, the Corporation needs a new and institution. It is indispensable effective long-term contract in bringing citizens together and with Canadians. in communicating this country’s Change is coming in many forms values and stories to Canadians in Canadian broadcasting – new technologies, new services, new within Canada and around the financial models, new audience world. We unite Canadians by groupings, and new industry offering high-quality Canadian structures. Each of these types programming that reflects this of change must be faced squarely by the Corporation if it is to country and its regions on all continue to play its central role available platforms, wherever as Canada’s national public and whenever Canadians want it. broadcaster – enriching the democratic and cultural life of Canadians, and providing a forum Whether it is Television timely that the Standing for debate on Canada, today and (CBC News:The National, Committee on Canadian Heritage in the future. Le téléjournal, The Rick Mercer is investigating the role for a Indeed, no matter how Report, Tout le monde en parle), national public broadcaster in quickly and dramatically Radio (The Current, Sounds the 21st century. We believe that Canadian broadcasting changes, Like Canada, Christiane Charette, it would be appropriate that CBC|Radio-Canada must Désautels), Specialty Services CBC|Radio-Canada’s mandate continue to provide a public (The Passionate Eye and funding be reviewed and space where programming that is on CBC Newsworld, established on a regular ten-year fundamental to Canadians’ civic, Les grands reportages on RDI), cycle. CBC|Radio-Canada is cultural and social well-being can the Internet (CBC Radio 3, heartened that the Government find a home. No other broadcaster bandeapart.fm) or satellite radio, has confirmed additional funding in the Canadian broadcasting CBC|Radio-Canada broadcasts of $60 million for Canadian system fulfils this role. programming with a unique programming for the public Canadian perspective. broadcaster for each of the next Some of these broadcasting two fiscal years. While this changes are fundamental. For At the same time, the swift provides a measure of stability, in example, the transition from and dramatic changes in the order for CBC|Radio-Canada analogue to digital production broadcasting world suggest that a to move forward in a meaningful and transmission, as well as the review of CBC|Radio-Canada’s way, and to provide Canadians proliferation of new broadcasting mandate is appropriate, and with the programming they platforms and devices, mean that for this reason, it is particularly the Corporation must reassess the

PAGE 2 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 PRESIDENT AND CEO’S MESSAGE>>

ways in which it reaches out to fragmentation, mean that the would also further our new and serves Canadians. Less efficient financial models relied on in the multi-platform strategy, called methods of content creation and past are being severely challenged. myCBC, which will provide delivery – such as analogue In particular, the traditional Canadians with tailored CBC over-the-air television transmission advertising model for over-the-air News coverage – on Television, – must gradually give way to more television is under pressure and is Radio, the Internet, and digital cost-effective technologies. At the not sustainable in the mid- to platforms – in those cities same time, CBC|Radio-Canada long-term. Conventional where local stations are currently must make its content available on broadcasters still deliver over located. The enactment of this 80 per cent of all viewing to strategy will require additional It is time for original Canadian drama and permanent funding. comedy programs on English- All of these factors lead to language television, and in the case CBC | Radio-Canada to one conclusion. It is time for of the French-language market, CBC|Radio-Canada to develop develop a new contract the share of conventional a new contract with Canadians – broadcasters is over 90 per cent. with Canadians to ensure a contract that will ensure that New ways of funding must be the Corporation is on the right found, if this contribution by that it continues to provide track, providing high-quality, conventional broadcasters is to be public-value content over both high-quality, public-value maintained. traditional and new platforms, content, and that it has As well, new funding must be in the way that best serves adequate, stable, long- found for all of CBC|Radio- Canada and Canadians. And, Canada’s services if we are to be that contract will also ensure term funding to fulfil its able to serve Canadians that CBC|Radio-Canada has and provide them with the adequate, stable, long-term mandate. high-quality, engaging content funding so that it will be able they expect and deserve. For to fulfil its mandate in the most new platforms, as they arise, so example, currently, some eight effective and efficient manner. that Canadians can gain access to million French- and English- the Corporation’s programming speaking Canadians do not receive content when, where and a local CBC|Radio-Canada how they want it. With public Radio service. We have developed service as its central objective, a Radio Strategy that would create CBC|Radio-Canada must be 15 new French- and English- proactive and responsive. language stations and production The fundamental changes in the centres providing local coverage broadcasting industry, combined for 37 fast-growing communities with continuing audience ranging in size from 100,000 to ROBERT RABINOVITCH 1.5 million people. This strategy PRESIDENT AND CEO

3 PAGE 4 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 EXECUTIVE SUMMARY>>

EXECUTIVE SUMMARY>> Established by an Act of Parliament as Canada’s national public broadcaster, CBC | Radio-Canada has a unique place in the Canadian broadcasting system.

Our mandate is to inform, KEY ACTION PLANS FOR 2007–2008 enlighten and entertain Canadians ENGLISH-LANGUAGE SERVICES using the full range of broadcasting platforms available to us. We must > RADIO, TELEVISION AND NEW MEDIA provide Canadians with • continued integration of News, including enhanced local comprehensive programming that News coverage. encompasses News, information, entertainment, and sports in order > TELEVISION to meet all of their interests and CBC Television’s strategic plan is comprised of the following needs. And, these programs must key elements: reflect Canada in all of its diversity • enhance Drama and Entertainment programming by in order to show Canadians who producing more series with full-season runs and airing they are and what it means to be a more “factual” entertainment series; citizen of this country. • deliver more multi-platform content supported by CBC|Radio-Canada delivers its increased resources and infrastructure; develop business programming and services via at models for multi-platform content and distribution; least 20 different media platforms, from conventional Radio and • deliver more value to Canadians using an integrated Television, to video delivered over approach to the delivery of regional programming cell phones, and audio via satellite through Television, Radio and CBC.ca. radio. It is the only Canadian broadcaster delivering Radio, > RADIO Television, Internet, and satellite- CBC Radio has identified these key strategic objectives: based services, in both English and • expand program development across the CBC Radio 2 French plus eight Aboriginal schedule and to other platforms; languages, to all Canadians. The Corporation’s broadcasting reach • increase direct engagement with Canadians so that extends across Canada and around CBC Radio continues to be the authentic voice of the the world. community; Key action plans have been • develop new platforms, such as podcasting which the developed by each of our Corporation launched in 2005–2006, to deliver content Television, Radio and New Media when, where and how our audiences want it; lines to bring Canadians • strengthen the presence of CBC Radio One by expanding high-quality distinctive Canadian local service to the five million Canadians who lack it. programs in 2007–2008. All CBC|Radio-Canada’s services contribute in a major way to enriching the democratic and cultural life of Canadians.

5 EXECUTIVE SUMMARY>>

KEY ACTION PLANS FOR 2007–2008 FRENCH-LANGUAGE SERVICES

CBC | Radio-Canada’s French-language media lines – Television, Radio and New Media – have been given a common set of objectives to:

> complete the integration of French Services;

> assert Radio-Canada’s positioning as a public service;

> maintain an optimal audience to our Television, Radio and New Media services;

> expand Radio de Radio-Canada’s offering for Francophones in minority communities and in the regions – currently more than two million Canadians do not have access to a local service of Première Chaîne;

> enhance the development of culture and expand its reach on all platforms;

> strengthen Radio-Canada’s international presence;

> expand the reach of the public service onto new platforms; and,

> create an environment conducive to employee engagement.

Delivering on these action plans Coverage Plan (ACP) to extend The Corporation continues to will be a demanding task for the over-the-air transmission seek out other sources of funding CBC|Radio-Canada in view of CBC Radio, Radio de in order to supplement its of its financial situation and the Radio-Canada, CBC Television, Parliamentary appropriations. significant broadcast environment and Télévision de Radio-Canada to However, in the absence of a changes underway. all communities in Canada with a radically revised mandate, population of 500 or more. These CBC|Radio-Canada cannot Specifically, CBC|Radio-Canada assets are reaching the end of their properly fulfil its role in the faces an aging, more diverse and useful life and must be replaced. At Canadian broadcasting system on urbanised population that has the same time, CBC|Radio-Canada the basis of its current resources. access to more media options than must complete the transition to ever before. It is our hope that the current high definition (HD) television and investigation by the Standing Recently announced mega-mergers provide services over a host of Committee on Canadian Heritage in the communications industry New Media platforms. into the role for a national public will create major challenges for the CBC|Radio-Canada requires broadcaster in the 21st century Corporation in terms of its ability significant direct Government will provide a rationale that allows to obtain program rights and support in order to meet the the Corporation to work out an advertising revenue. challenges of this changing effective long-term contract with Technologically, CBC|Radio-Canada environment. Parliamentary Canadians – a contract that will owns an aging transmission appropriations to clarify what Canadians expect from infrastructure which needs to be CBC|Radio-Canada were cut CBC|Radio-Canada and that will replaced. Government provided dramatically in the 1990s and are also ensure that the Corporation one-time capital and ongoing currently $394 million less, in has adequate long-term, stable operating funding between 1974 constant dollars, than in 1990. funding to meet those demands. and 1984 under the Accelerated This is not a sustainable situation.

PAGE 6 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 7 CBC|RADIO-CANADA SERVICES>>

BROADCASTING SERVICES>>

RADIO AND SATELLITE RADIO CBC RADIO ONE: commercial-free English-language network, offering local, national and international News, Current Affairs, documen taries, arts and cultural programming, and drama, on Radio and on Sirius Satellite Radio Channel 137.

CBC | Radio-Canada delivers a CBC RADIO 2: commercial-free English-language network, showcasing the musical diversity of Canada, comprehensive range of News, including classical music and jazz and other genres targeting adult music audiences. information, entertainment, and

sports programs via 28 different CBC RADIO 3: commercial-free English-language network, showcasing the best in new and emerging services. It is the only Canadian Canadian music via the Internet (radio3.cbc.ca), podcasting and Sirius Satellite Radio Channel 94. broadcaster delivering Radio,

Television, Internet, and satellite- PREMIÈRE CHAÎNE: commercial-free French-language network, offering regional, national and international based services, in both English information along with regional and national News, and French plus eight Aboriginal arts, culture, and human-interest programming. languages, to all Canadians. The ESPACE MUSIQUE: commercial-free French-language Corporation’s broadcasting reach music network, showcasing the musical diversity of Canada, including classical, jazz, chanson, world extends across Canada and around music, and emerging talent. the world, offering high-quality, BANDE À PART: commercial-free French-language distinctive content by, for and about network, showcasing the best in emerging French- language Canadian music and favouring the discovery Canadians, however and wherever of Canada’s new Francophone artists. they want it. PREMIÈRE PLUS: commercial-free French-language network, offering News, Current Affairs, magazines, and cultural programming, including the best of Première Chaîne, on Sirius Satellite Radio Channel 138.

INFO PLUS: commercial-free French-language, 24-hour all-News, information and Public Affairs network, offering the best of Radio-Canada programming, on Sirius Satellite Radio Channel 187.

RADIO CANADA INTERNATIONAL (RCI): commercial- free international Radio service broadcasting in nine languages.

RCI PLUS: Radio Canada International programming in eight languages, as well as broadcasts from Canadian and international network partners, on Sirius Satellite Radio Channel 188.

CBC NORTH | RADIO-CANADA NORD: Radio and Television services in English, French and eight Aboriginal languages to Canada’s northern communities.

PAGE 8 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 CBC|RADIO-CANADA SERVICES>>

TELEVISION INTERNET CBC TELEVISION: English-language network, CBC.CA: English-language Internet service providing a wide range of News, information carrying our Radio and Television content, and entertainment programming by, for and unique New Media and Corporate information. about Canadians.

CBC NEWSWORLD: English-language, RADIO-CANADA.CA: French-language Internet 24-hour all-News and information service, service carrying our Radio and Television ﬁnanced entirely by subscriptions and content and unique New Media and Web advertising revenue. content.

CBC COUNTRY CANADA: 24-hour English- CBC RADIO 3: commercial-free English- language digital Television service, by language network, showcasing the best in subscription, offering international drama, new and emerging Canadian music via the sporting events and the arts. Internet (radio3.cbc.ca), podcasting and Sirius Satellite Radio Channel 94.

THE DOCUMENTARY CHANNEL: 24-hour BANDE À PART: commercial-free French- English-language digital Television service, language network, showcasing the best in by subscription, offering Canadian and emerging French-language Canadian music international documentaries and extending and favouring the discovery of Canada’s new our reach to Canadians. Francophone artists.

TÉLÉVISION DE RADIO-CANADA: French- RCI VIVA: commercial-free Web Radio service language network, delivering high-quality, broadcasting in eight languages, providing public-oriented, rassembleur general information about Canada and posting programming, including News and Public discussion boards for recent and aspiring Affairs. immigrants to Canada.

RÉSEAU DE L’INFORMATION DE RADIO- CANADA (RDI): French-language 24-hour all-News and information service, ﬁnanced REACHING NEW AUDIENCES entirely by subscriptions and advertising GALAXIE: commercial-free digital pay audio revenue. service offering 45 channels of continuous music, without talk, to nearly six million CBC NORTH | RADIO-CANADA NORD: subscribers. Radio and Television services in English, French and eight Aboriginal languages to Canada’s northern communities. CBC RECORDS | LES DISQUES SRC: recording label, releasing about 15 new Canadian CDs annually. ARTV: French-language arts and culture Television service, by subscription, offered through a public-private partnership. WIRELESS: WAP and SMS messaging services delivering interactive content to PDAs and cell phones. TV5MONDE: An international consortium, offering a mix of News and general-interest, French-language Television programming.

9 NON-BROADCASTING ACTIVITIES>>

NON-BROADCASTING ACTIVITIES>> In addition to operating its broadcasting services, CBC | Radio-Canada engages in a range of non-broadcasting activities for the purpose of supporting its Corporate priorities and programming activities.

NON-BROADCASTING ACTIVITIES

The REAL ESTATE DIVISION optimises revenues by selling or renting surplus assets and generates savings by managing CBC|Radio-Canada real estate more efﬁciently. The Division frees up funds that can be invested in programming while ensuring that all CBC|Radio-Canada business units have the facilities they need.

The MERCHANDISING DIVISION generates revenues by licensing, selling and distributing CBC|Radio-Canada CDs, DVDs, digital downloads, books, clothing, and licensed merchandise of one of the most widely recognised brands in the country.

CBC TECHNOLOGY invests in state-of-the-art technology to increase efﬁciency and quality in the Corporation’s production and business processes. The Division contributes to the Corporation’s annual savings and brings in revenues for investment in programming.

The MOBILE DIVISION ensures that programs have access to mobile production equipment and also generates revenues for investing in programming by selling excess capacity.

SHARED SERVICES updates delivery of transactional and administrative services in Human Resources, Information Technology and Finance and Administration. Shared Services works to standardise processes.

1. OPERATING ENVIRONMENT>> CBC | Radio-Canada faces a complex operating environment which is influenced by statutory policy objectives, regulatory obligations, ongoing technological changes, shifting consumer trends, and industry restructuring, as well as significant financial constraints.

1.1 POLICY OBJECTIVES section 5(2) regulatory objectives 1.2 THE EXPANDING AND REGULATORY include: being adaptable to the WORLD OF REQUIREMENTS different characteristics of English- BROADCASTING and French-language broadcasting; Section 3(1) of the 1991 taking into account regional needs; Technological innovation and the Broadcasting Act sets out the and, being readily adaptable to emergence of new broadcasting broadcasting policy for Canada scientific and technological change. platforms are radically changing the and comprises an extensive list of way in which Canadian consumers general policy objectives for the This statutory and regulatory can enjoy video or audio content, Canadian broadcasting system, as context has a significant influence whether it be news, sports or well as specific policy objectives on the planning process as entertainment. As a result of for CBC|Radio-Canada. The CBC|Radio-Canada attempts developments in digital, wireless Corporation must keep all of these to determine the best way to and Internet Protocol (IP) policy objectives in mind when implement its Corporate mandate. technologies, Canadian consumers assessing its current activities and In particular, the Corporation face an expanding world of planning for the future. In addition, must take into account the fact broadcasting, which offers greater CBC|Radio-Canada must take that implementation of its plans diversity in every dimension: into account the ways in which the may involve licensing or other content, technical quality, method Canadian Radio-television and regulatory approvals by the CRTC of delivery, mode of reception, Telecommunications Commission under the Act or, in the case of and time and place of viewing (CRTC) has interpreted and the use of radiocommunication or listening. These changes affect sought to implement these policy spectrum, authorisation or licensing Canadian consumers in two objectives in its licensing decisions by Industry Canada under the fundamental ways. and regulations. Radiocommunication Act. First are the technological The CRTC is specifically required The licenses of innovations that enhance the by section 5(1) of the Act to CBC|Radio-Canada’s main viewing and listening experience exercise its duties under the Act broadcasting services are set to of Canadian consumers. These with a view to implementing expire on August 31, 2007. technological innovations constitute the section 3 policy objectives, The CRTC has granted an improvements to older technologies subject to any directions from the administrative renewal of these and while they may replace those Governor in Council while, at the licenses, however, and will technologies, in general, they same time, having regard for the re-initiate the license renewal will not disrupt the associated regulatory policy set out in section process when it has completed its broadcasting activity. For example, 5(2). Among other things, the review of its conventional television the transition from analogue to policy, specialty services and the digital cable provides Canadian distribution sector. This will likely consumers with not only more occur in 2008. choice, but an enhanced viewing environment, as well. Similarly, the move to high definition (HD)

13 OPERATING ENVIRONMENT>>

television from NTSC provides WEEKLY PER CAPITA HOURS OF VIEWING TO TELEVISION Canadian consumers with a All Persons 2+ measurable improvement in the September to August (1995–1996 to 2005–2006) quality of video they are watching, but it does not replace video with 30 some other form of communication. On the other hand, a second type 25.0 of technological innovation permits 25 the consumer to gain access to audio or video on totally new average (23.5) broadcasting platforms such as 22.6 22.6 satellite radio, mobile wireless 20 video, as well as Internet downloading and streaming. These types of innovations expand the

consumers’ broadcasting universe 1995–1996 2000–2001 2005–2006 by providing them with the opportunity to have access to audio SOURCE: Nielsen Media Research or video content in ways or at times that were previously not The Continuing Demand for TV television: conventional over-the-air possible. These innovations have There can be no doubt that transmission, cable distribution, and the potential to be extremely television is both an important DTH satellite distribution. Of these disruptive in their long-term effects and a resilient medium. Despite three, cable has long been the on pre-existing platforms and numerous social and technological dominant technology, whereas technologies. changes, television viewing has over-the-air reception has become 1.2.1 TRENDS IN remained remarkably stable for increasingly marginalised, especially in English Canada. THE VIDEO WORLD decades. In fact, over the last 10 years, television viewing has As indicated in the table below, The key word for the video world actually increased from about 22 DTH is more common in rural is “more”. There is more video hours per week in the mid-1990s, areas and smaller centres than in programming available over more to around 24 to 25 hours per week. cities, while the penetration of distribution platforms, providing cable tends to increase in larger more types of content to more The Evolution of the Way towns and cities. Reliance on people than ever before. in Which TV is Distributed over-the-air reception1 tends to be There are three primary This huge expansion in video relatively uniform in rural and distribution technologies for represents a signiﬁcant opportunity and an important challenge to Canadian broadcasters. In order to SATELLITE, CABLE AND OFF-AIR PENETRATION RATE % get a better understanding of the Canada Excluding Québec Francophone Québec nature of this opportunity – and Satellite Cable Off-air Satellite Cable Off-air not be carried away by the hype generated by the proponents of one Area Population technology or another – it is 1,000,000+ 14% 77% 8% 18% 59% 23% necessary to look closely at what 100,000–1,000,000 22% 67% 10% 19% 69% 12% is actually happening in the 50,000–100,000 39% 52% 9% 31% 60% 9% video world. < 50,000 50% 37% 13% 40% 50% 10%

Source: BBM Fall 2005/Spring 2006, NMR 2005–2006

1 In the above table and elsewhere throughout this Corporate Plan Summary, off-air reception means the reliance on over-the-air only to receive television services; i.e., the viewer has not subscribed to either satellite or cable services. Note that over-the-air reception may still be used by those who have subscribed to a cable or satellite service.

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urban areas, although certain by far the world’s largest producer ongoing and enhanced cities where there are numerous of English-language television Government support – both over-the-air signals available programming – and the regulatory and direct – is critical (e.g., Montréal) stand out as overwhelming availability of US if there is to be a robust Canadian exceptions to this general rule. programming over-the-air and on presence in the evolving digital the services of Canadian environment. The Unique Challenge Facing Broadcasting Distribution English-language Broadcasters New Ways of Accessing Undertakings (BDUs) means that Video Content The remarkable contrast between English-language broadcasters face French-language television and a challenge that is unique in the Technological advancements over English-language television in the broadcasting world. the past 10 years have given rise digital environment highlights very to a variety of new platforms for clearly the unique situation facing Given the size of the television consumers to receive and view English-language broadcasters market in English Canada, the video programming, including in Canada. cost of producing high-quality mobile wireless, video-on-demand television programming and the (VOD), personal video recorders intense competition from US Given the size of the programming, it is clear that television market in English Canada, the cost ILLUSTRATION OF MULTI-PLATFORM GROWTH – VIDEO of producing high-quality 1995 2005 television programming TV Distribution TV Distribution Over-the-air TV Over-the-air TV and the intense Analogue cable Analogue cable Digital cable Personalisation competition from DTH satellite VCR Wireless cable (MDS) US programming, it is Specialty TV IPTV Pay TV clear that ongoing and Internet enhanced Government Personalisation VCR support – both regulatory Specialty TV Pay TV and direct – is critical... DVD player PPV In every other country in the PVR world, viewing of domestic VOD programming far exceeds viewing Video downloads 2 of foreign programming. In this Video streaming regard, French-language television in Canada is aligned with the Portable overall global pattern of domestic DVD player television consumption. Digital video player Mobile phone In English Canada, however, the Laptop computer proximity of the United States –

2 See “One Television Year in the World: 2005 Issue” (Eurodata Worldwide). In this analysis of 73 territories covering ﬁve continents, the English-language Canadian market was the only one in which indigenous programs did not comprise a majority of the ten most popular programs aired in 2004.

15 OPERATING ENVIRONMENT>>

(PVRs), Internet streaming, and Given the diversity of these new Overall, new audio platforms Internet downloading. platforms, their relationships to represent a significant challenge to traditional television vary traditional over-the-air radio. The These new platforms and significantly and, in some cases, can wide array of new platforms has technologies affect the video be quite complex. Consequently, increased audience fragmentation opportunities available to Canadians it is simplistic to suggest that they and decreased the visibility of any in three key ways. are replacing traditional, scheduled single audio service. As a result, First, they significantly expand television. Nonetheless, it is clear audio broadcasters are being forced where consumers can receive and that they will have an impact on to be both more thoughtful and watch video programming. For television viewing and, hence, on more innovative when developing example, mobile wireless services let the broadcasters and BDUs who audio content and when deciding viewers watch video clips wherever provide television programming the best means to deliver it to there is cell phone coverage. to the public. Canadian listeners. It is no longer Similarly, wireless Internet service a case of one size fits all. Rather, 1.2.2 TRENDS IN permits users to stream or download audio programs must be carefully videos wherever there is Wi-Fi or THE AUDIO WORLD designed and targeted if they are a similar service. Canadians are no The key word in the audio world is to be successful with increasingly longer limited to their living rooms “choice”. Listeners expect to be sophisticated audiences. when it comes to watching video. able to choose what they hear, how Conventional Radio they hear it and when they hear it. Second, all of these new platforms, Radio was the first technology They want specialised with the exception of some forms used by broadcasters in Canada to programming that suits their tastes. of Internet streaming, can be reach a mass audience, and it has And, they want to be able to listen characterised as on-demand services remained an important medium to that programming when and which free viewers from the since its inception. Over the past where it suits them. These listener rigidity of program schedules. 10 years, however, listening to expectations have been shaped and These services permit consumers conventional over-the-air radio reinforced by both technological to select the programming that has decreased across all age developments and by the interests them and to decide when groups, with the decline being willingness of some broadcasters, to view it. In many cases, the greatest among younger including CBC|Radio-Canada, to viewing opportunities include Canadians. video programming that is simply embrace new opportunities in the not available via traditional audio world. television. WEEKLY PER CAPITA HOURS OF LISTENING TO CONVENTIONAL Third, some new platforms, such as RADIO FOR SELECTED DEMOGRAPHIC GROUPS mobile wireless, provide video in a Fall Sweeps significantly different format from (1995 to 2006) traditional television. These new 25 platforms are emerging to meet the 23.3 22.4 demand of the dynamic segment 22.4 21.2 21.8 of the Canadian audience.Video 21.5 20 20.6 20.6 content can now be viewed on dramatically different screen sizes, 18.4 18.1 18.3

ranging from 2.5 cm cell phones 15 50+ and 5 cm video iPods to 127+ cm 14.2 35–49 displays for HD. This represents a 25–34 new type of viewing experience 10 11.0 10.5 18–24 which offers unexplored 12–17 opportunities for creativity 7.6 and content. 1995 2000 2006

SOURCE: BBM (Fall Sweeps)

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These downward trends in radio is available; and greater flexibility is given a prominent place in listening are significant – it is clear and control over when audiences broadcasters’ schedules. All parties that both teens and adults under access and listen to that content. in the broadcasting sector – the age of 25 are consuming specialty, conventional, public, and The new audio platforms have met relatively less “traditional” radio as private – have economic and public with varying degrees of acceptance they embrace many of the new supports at their disposal. These by the public and the final verdict technologies to gain access to audio types of support are necessary if is still out on most of them. Among content, particularly music. Yet, it is Canadians are to have access to other things, the public’s willingness still too early to predict the future Canadian programming. to accept the business models state of over-the-air radio, given its underlying some of the new central role as a provider of local platforms – such as subscription news and information to listeners The public’s willingness fees – has yet to be fully tested. in cities and towns across Consequently, it is likely to be the country. to accept the business several years before any conclusions New Ways of Accessing can be drawn regarding the models underlying some Audio Content viability and the role of the of the new platforms – Over the past decade, numerous new platforms, as well as the new ways of accessing audio full extent of their impact on such as subscription content have become available in conventional radio. fees – has yet to be Canada, including digital radio, 1.2.3 FINANCING pay audio, satellite radio, mobile CANADIAN TELEVISION fully tested. wireless, Internet streaming, podcasting, and Internet The basic economics of English- Government provides direct downloading of music. and French-language television economic support for Canadian production in Canada, and the As with new video platforms, these television programming by way availability of relatively inexpensive new audio platforms provide of programming grants and US programming, mean that market consumers with increased choice contributions, and other direct forces alone cannot be relied upon in terms of where and how audio expenditures related to Canada’s to produce a predominance of services can be received; increased culture, including funding and Canadian programming or to diversity in the type of content that tax-based support provided to ensure that Canadian programming CBC|Radio-Canada, Telefilm Canada, the Canadian Television Fund, and other programs ILLUSTRATION OF MULTI-PLATFORM GROWTH – AUDIO and agencies with mandates to preserve, promote and develop 1995 2005 Canadian culture. Distribution Distribution Radio Radio In the case of Canada’s private Internet conventional broadcasters, these On-demand Satellite radio benefits operate through Tapes Government and CRTC CDs On-demand regulations, and include pro gram CDs Portable substitution and protections under Music downloads Walkman the Income Tax Act which Streaming audio discourage Canadian advertisers Podcasting from placing advertisements in Portable foreign programming. For the Walkman broadcast year 2003–2004, the Digital audio player value of these two benefits alone Mobile phone has been estimated at between $270 million and $330 million

17 OPERATING ENVIRONMENT>>

CBC | RADIO-CANADA’S PARLIAMENTARY APPROPRIATIONS (1990–2006) (Dollars in millions in 2006 constant dollars)

1,800

1,600 1,508

1,400

1,200 1,114

1,000

966 800

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

for Canada’s English-language marketplace and destroy most > revenues from ancillary private conventional specialty services’ businesses. activities. broadcasters.3 Recently, the For Canadian English-language CRTC has also created an specialty services alone, the value 1.3.1 PARLIAMENTARY additional public support of these protections has been APPROPRIATION mechanism for Canada’s private estimated at approximately CBC|Radio-Canada’s total 5 conventional broadcasters and $735 million annually. Parliamentary appropriation for certain specialty services in the As a point of comparison, 2006–2007 is $1,114 billion – an form of supplemental revenues for CBC Television has access to amount which, in constant dollars, drama programming. These public economic and public supports is $394 million less than the benefits are worth $34 million valued at $261 million annually Corporation received in 1990. This and two million dollars annually through its operating appropriations basic Parliamentary appropriation for Canada’s English-language from Government.6 has been frozen for many years and and French-language private is not fully indexed for inflation. conventional broadcasters, 1.3 SOURCES Several cost elements within the 4 respectively. OF FUNDING Corporation’s operations, including Canadian specialty services are also There are four basic sources of all non-salary items, are subject to provided with more fundamental funding for the Corporation: ongoing inflationary cost increases public support in the form of entry that are not offset through increases protections from foreign and > the annual appropriation in our annual appropriation. of funds by Parliament; domestic competitors. Without In 2006–2007, CBC|Radio-Canada these market protections, a vast > advertising revenues; received $60 million in one-time number of American services funding in support of programming > subscription revenues; and, would enter the Canadian costs, as it had in each of the five

3 Nordicity Group Ltd., Analysis of Government Support for Public Broadcasting and Other Culture in Canada, 2006. 4 CBC|Radio-Canada Research and Strategic Analysis estimate. 5 Nordicity Group Ltd., Analysis of Government Support for Public Broadcasting and Other Culture in Canada, 2006. Nordicity estimates the value of total Canadian specialty services beneﬁts from these entry protections at $900 million of which $735 million accrues to English-language specialty services. 6 CBC Television’s Government-funded Operating Expenditures for 2003–2004; excludes capital and Corporate overhead allocations.

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previous years. And the Government television operations on advertising program sales, facilities rentals, has just confirmed additional revenues is not sustainable in the CBC News/RDI Express, and funding of $60 million for long run. This is a significant advertising on CBC.ca and Canadian program ming for concern from a planning Radio-Canada.ca. Other revenues CBC|Radio-Canada for each of perspective, and it implies that new are generated via merchandising, the next two fiscal years. sources of revenue must be found. Galaxie (the Corporation’s pay audio service), building and parking The level of public funding of While the CRTC recently revenues, revenues from the leasing CBC|Radio-Canada does not announced the elimination of of space on our transmitters, and compare well with that provided to restrictions on advertising, this rent charged to external clients public broadcasters in other OECD will not improve the downward who use our mobile facilities. In countries. According to a recent trend in the advertising revenues 2006–2007, CBC|Radio-Canada Nordicity study, Canada ranks third generated by the conventional generated $110 million in self- from the bottom in its support for broadcasting sector. Indeed, the generated revenues. public broadcasting, above only increased availability of advertising New Zealand and the opportunities in American By their very nature, these self- United States. programming may well siphon generated revenues can vary advertising dollars away from significantly from year to year. CBC|Radio-Canada requires stable Canadian programming. While it is therefore difficult to rely multi-year funding if it is to be able on these revenues from a long-term to plan its programming and 1.3.3 SPECIALTY planning perspective, any revenue operations with any reasonable SERVICE REVENUES generated in this way is extremely degree of confidence. Many valuable to the Corporation for broadcasting projects extend across CBC|Radio-Canada receives re-investment in programming or several years and yet there is no subscription and advertising in support of programming. certainty that, once begun, such revenues from its Specialty Services, projects will continue to have the CBC Newsworld, CBC Country necessary funding to see them Canada and Réseau de l’informa - through to completion. This is tion de Radio-Canada (RDI). In a highly unsatisfactory situation 2005–2006, these revenues totalled which impairs the ability of $124 million. These are relatively CBC|Radio-Canada to properly steady revenues as large-scale implement its Corporate mandate. movements in subscribership, We believe a longer term funding either up or down, are uncommon. cycle would best ensure support The associated expenses are also While the CRTC recently for the development of programs relatively steady and of approx- during the several years it takes imately the same magnitude as announced the elimination to move from an initial concept the Specialty Services’ revenues, to broadcast. however. Consequently, these of restrictions on revenues have a neutral effect 1.3.2 ADVERTISING on overall planning and do not advertising, this will not represent a significant source In 2005–2006, an Olympic year, improve the downward of additional funding. CBC|Radio-Canada generated trend in the advertising $315 million in advertising and 1.3.4 SELF-GENERATED program sales. REVENUES revenues generated The conventional television CBC|Radio-Canada’s strategic by the conventional advertising market continues to direction calls for it to leverage experience relatively flat growth, its assets to generate revenue broadcasting sector. while costs are increasing at a that can then be re-invested in much higher rate. These two programming. Self-generated facts indicate very clearly that revenue accrues from across the the traditional dependence of Corporation. For example, the CBC|Radio-Canada’s conventional media generate revenue through

19 PAGE 20 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 CORPORATE PLANNING AND STRATEGY>>

2. CORPORATE PLANNING AND STRATEGY>>

2.1 THE PLANNING PROCESS The diagram opposite depicts the various components and timing CBC|RADIO-CANADA of CBC|Radio-Canada’s annual ANNUAL PLANNING PROCESS planning process. CBC | RADIO-CANADA STRATEGIC DIRECTIONS The November Board of Directors BOARD OF DIRECTORS’ REVIEW/APPROVAL meeting represents the high point in SEPTEMBER/NOVEMBER CBC|Radio-Canada’s planning CBC | RADIO-CANADA FIVE-YEAR process. The strategic directions CORPORATE PLAN TO GOVERNMENT JANUARY approved by the Board at that time form the basis of the Corporate Plan BOARD OF DIRECTORS and provide the key assumptions BUDGET APPROVAL MARCH necessary to develop each media’s operating and capital budget. The SETTING MANAGEMENT PERFORMANCE OBJECTIVES REVIEW Corporate Plan is approved by the FEBRUARY/MARCH MARCH/APRIL Board in January and then filed with Government. Finally, prior to the start CBC | RADIO-CANADA of the fiscal year, the Board approves ANNUAL REPORT JUNE each media’s operating, capital and working capital budgets which have been drawn up to reflect the strategic priorities as approved by the Board in November. 2.2 CORPORATE PRIORITIES CBC|Radio-Canada’s mission is: To create audacious, distinctive programming, programs designed to inform, enlighten and entertain, programs that reflect Canadians and Canada’s regions, programs that help tie the country together and explain great national and international events, programming in all genres with emphasis on News and Current Affairs, drama and culture; and not forgetting our special responsibility to children.

In order to achieve this mission, we must have a culture driven to achievement, to excellence and to quality, recognising creativity, risk-taking, courage, and adaptability. Creative organisations must be in a continuous state of renewal. We must always be conscious of the audience we serve and we must strive both from external sources and by internal management to optimise our finances in order to put the finest programming on the air.

21 CORPORATE PLANNING AND STRATEGY>>

In order to achieve this mission on a day-to-day basis, we pursue the following eight strategic thrusts.

HIGH-QUALITY 1. Ensure distinctive programming of the highest quality on all DISTINCTIVE CANADIAN delivery platforms.

PROGRAMMING>> 2. Recognise the importance of regional reﬂection and of the changing face of Canada. 3. Ensure the sustainability of CBC | Radio-Canada’s Canadian schedules.

EFFICIENCY>> 4. CBC | Radio-Canada must be a well-managed company and generate cash ﬂow to re-invest in programming.

CREATIVE AND HUMAN 5. Strengthen CBC | Radio-Canada’s commitment to all its

RESOURCES>> employees – to those who create and those who support them.

STRATEGIC 6. Position CBC | Radio-Canada to enhance its ability to fulﬁl its

PARTNERSHIPS>> mandate through selective alliances and partnerships.

COLLABORATION>> 7. Reinforce the capacity of CBC | Radio-Canada to work as one integrated company.

STRONG STAKEHOLDER 8. Enhance/strengthen CBC | Radio-Canada’s stakeholder

RELATIONS>> relationships.

The focus of these priorities is the In order to further enhance the appropriate. The incorporation of delivery of high-quality distinctive plan ning process and in response to these performance indicators into Canadian programming to the recommendations of the Auditor the Corporation’s planning process Canadians, and they have been General’s 2005 Special Examination began in 2006 and they will be central to the Corporation’s of CBC|Radio-Canada, the fully integrated into that process planning process for each of the past Corporation developed a series of within two years. ﬁve years. They were most recently performance measures that will While data collection and approved by CBC|Radio-Canada’s allow it to better assess its progress measurement commenced April Board of Directors in January 2006. in meeting its Corporate priorities. 2006, data for two measures, 2.3 MEASURING content and stakeholder CBC |Radio-Canada has PERFORMANCE relationships, is already available and is reported in Appendix D. By April enhanced the strategic The Auditor General of Canada’s 2007, data for all measures will be report on the Special Examination available and will be reported in planning process by of CBC|Radio-Canada, released in next year’s Corporate Plan. developing performance 2005, suggested improvements in By April 2008, the performance the ability of the Corporation’s indicator system will be fully indicators for each of Board of Directors, the Government operational and it will then be and the public to assess possible to examine annual our Corporate priorities CBC|Radio-Canada’s performance performance results, performance and linked them to on a year-to-year basis. As a result, against targets, as well as we have enhanced the strategic performance trends. the Corporation, as a planning process by developing performance indicators for each of These changes have already whole, or to individual our Corporate priorities and linked enhanced the planning process them to the Corporation’s main and, in the longer term, should media operations, as Television and Radio services, or signiﬁcantly increase the appropriate. to individual media operations, as effectiveness of the Corporation’s overall operations.

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An overview of CBC|Radio-Canada’s Corporate performance indicators is set out below.

HIGH-QUALITY DISTINCTIVE PROGRAMMING

CONTENT CREATIVE HUMAN RESOURCES

is measured by is measured by • Canadian content; • Commitment to training and development; • Number of awards; • Employee satisfaction. • Distinctiveness.

REGIONAL REFLECTION AND STRATEGIC CHANGING FACE OF CANADA PARTNERSHIPS

is measured by is measured by • Programs produced in regions for regions; • Joint ventures/partnerships. • Programs produced in regions for network; • Visible minority staff; • Overall usage by visible minorities (18+).

SUSTAINABILITY OF CANADIAN SCHEDULES COLLABORATION

is measured by is measured by • Television advertising revenue; • Expenditures on cross-media programming; • Expenditures on Canadian programming. • Extension of News integration and consolidation.

STRONG STAKEHOLDER EFFICIENCY RELATIONSHIPS

is measured by is measured by • Self-generated revenues; • Canadians’ satisfaction levels; • Programming expenditures. • Opinion leaders’ overall impression of CBC | Radio-Canada; • Opinion leaders’ general impression of CBC | Radio-Canada as being an essential service; • Relevance to stakeholders.

CBC|Radio-Canada’s main divisions and broadcasting services, done by our English services Television and Radio networks use are shaped by its Corporate and French Services. further programming indicators to mandate and Corporate priorities, While CBC|Radio-Canada serves assess performance against targets, as well as the external factors many different audiences, all of all of which are reported in discussed in Section 1 – The CBC|Radio-Canada’s services have Appendix E. Operating Environment. Our one common objective, which is to conventional Radio and Television 2.4 BROADCASTING enrich the democratic and cultural services continue to form the life of Canadians. SERVICES core of CBC|Radio-Canada’s CBC|Radio-Canada’s strategic broadcasting activities, and objectives for the Corporation as a planning for these activities is whole, as well as for its individual

23 CORPORATE PLANNING AND STRATEGY>>

2.4.1 CBC TELEVISION programming. In 2005–2006, seven This situation, in which indigenous of the 10 most popular Canadian content is overwhelmed by foreign, CBC Television encompasses drama/comedy series were aired primarily US content, is not unique CBC Television, with on CBC Television, including such to television. The feature film 16 conventional, over-the-air household names as The Rick industry finds itself in a similar stations across the country, as well Mercer Report, Royal Canadian situation. This overwhelming as the wholly owned Specialty Air Farce, This Hour Has 22 Minutes, predominance of foreign video Services, CBC Newsworld and and Just for Laughs. In addition, content is a crucial cultural issue CBC Country Canada. CBC Television has continued its facing English-speaking Canada. Main Network record of critical acclaim with over Given this environment, CBC Over 16.5 million Canadians 200 award-winning shows in Television will focus on two rd spent some time watching 2005–2006 including, from the 53 important areas during 2007–2008: CBC Television each week of Columbus International Film and programming and platforms. the 2005–2006 broadcast year. Video Festival, The Passionate Eye – This is consistent with previous Who Shot My Brother (Best of years where CBC Television’s Festival); the fifth estate – Tsunami: CBC Television’s reach has repeatedly demonstrated Untold Stories (The Silver Chris); the broad range and appeal of and On The Road Again – Dog vision is to be: its programming. Providing Lovers (Bronze Plaque). As well, programming that is of interest CBC Television received The source of the to all sectors of the Canadian 42 Gemini Awards in 2006. best, most informative, public is a key element of CBC Television’s CBC|Radio-Canada’s mandate and Strategic Objectives enlightening and the breadth of CBC Television’s CBC Television operates in a reach is clear proof that it is entertaining unique broadcasting environment succeeding in this area. in that the Canadian English- programming by, for While CBC Television has had language television market is remarkable success at meeting the only market in the world and about Canadians, the overall needs of Canadians, it where the viewing of foreign and to provide it to faces a much greater challenge programming far exceeds the when it comes to consistently viewing of domestic programming. them when, where and drawing mass audiences to its This is due to the overwhelming programming during prime time. abundance of US programming how they want it. Unlike its private sector and the dependence by Canada’s counterparts which rely primarily private English-language television on US programming during prime net works on the advertising time, CBC Television’s prime-time revenue generated through schedule is overwhelmingly simultaneous substitution. This Canadian. In 2005–2006, leaves CBC Television as the only 80 per cent of CBC Television’s broadcaster able to deliver an prime-time schedule was comprised overwhelmingly Canadian schedule of Canadian programs, as compared reflecting Canada’s culture, values, to only 29 per cent for CTV and lives, history, and humour each 28 per cent for Global. week throughout the year. This is especially true in today’s rapidly While CBC Television may not evolving and highly competitive often win the prime-time ratings environment in which Canadians game against US programming, can increasingly gain access to it does succeed at delivering video content when, where and audiences to Canadian how they want to.

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And CBC Television’s strategy to accomplish these goals involves the following:

PROGRAMMING – > Offer its audiences programming that is not only intelligent and engaging, OVERALL OBJECTIVES but also entertaining and enjoyable. > Maintenance of the traditional breadth of program offering: performing arts, in-depth journalism, professional and amateur sports, dramas, and comedies.

CBC TELEVISION Grow audiences to CBC Television by: MAIN NETWORK > Designing a new promotion and presentation strategy to maintain viewers across the program end breaks and through day parts. > Expanding the program development process to the remainder of the schedule for drama, documentary and factual entertainment programming, News, and sports. > Managing program pilot production, program testing and program evaluation centrally from the Network Programming Ofﬁce. Enhance the entertainment offer by: > Maintaining for 2007–2008 the 243 hours of entertainment programming achieved in 2006–2007, in the categories of drama/comedy, arts/music/variety and factual entertainment. > Making the schedule more predictable for viewers. > Producing more series with full season runs. > Airing more factual entertainment series and daily lifestyle programs in 2007–2008, and creating a dedicated “Doc Zone” in prime time to showcase a move to more accessible and popular documentary programming. Regional commitments > Continue to evolve regional strategy begun late in 2006–2007 (half-hour lifestyle show, interstitials throughout the day, one hour local evening newscast) so that CBC Television better connects with Canadians from all regions. > Utilise regional programs as testing ground for potential network programs. > Vancouver incubator project: Television, Radio, Web integration. > Model for future News gathering nationally and locally in the future. News and Current Affairs > Implement recommendations arising from the CBC News Study, diversiﬁcation of content segments (e.g., health, “working life”, family matters, etc.) to provide a wider forum in which to debate the key issues facing Canadians. Sports > Find replacement for Canadian Football League (CFL) games (hours of programming and revenue) when those rights expire after 2007. Children > Increase Canadian content of children’s programming in 2007–2008 to 90 per cent. > Continue “We’re partnering with parents” segments. > Strengthen brand through initiatives such as “Kids’ CBC Days” in local communities and promotional displays at airports and malls.

25 CORPORATE PLANNING AND STRATEGY>>

OTHER PRIORITIES CBC.ca (News and information) > Increase trafﬁc by concentrating on core programming strengths: important and popular. CBC.ca (children and youth) > Create a “youth zone” in which entertainment content can be created and shared. > Build brand loyalty through the partnership with Invest in Kids (www.investinkids.ca). CBC Newsworld > Pursue mandatory carriage regulation to protect distribution. > Renew relationships and partnerships with BDUs to protect wholesale fee. CBC Country Canada > Develop new programming focus and re-brand accordingly. The Documentary Channel > Regulatory approval received for change in effective control. Proceed with transfer of operations to the Canadian Broadcasting Centre in Toronto from Corus Entertainment. New online entertainment service > Focus on drama/comedy, factual entertainment, documentary, sports, and children’s content, as a complement to News and information focus of CBC.ca.

2.4.2 CBC RADIO CBC Radio 2 is CBC Radio’s Spring 2002. CBC Radio One’s culture and music network with share of 9.3 per cent in Fall 2006 CBC Radio operates three 14 stations across the country, all is its highest Fall share on record. English-language audio platforms: of which operate on the FM band. CBC Radio 2’s share of 3.7 per cent CBC Radio One, CBC Radio 2 While CBC Radio 2 has long been is its highest since Spring 2001. and CBC Radio 3. CBC Radio recognised as the home of classical also cooperates with Radio de Audience fragmentation continues music in Canada, its low awareness Radio-Canada to produce CBC to represent the single greatest and audience, which has skewed North/ Radio-Canada Nord challenge to CBC Radio. The 60+ years old, has led to discussions programming for broadcast to increasing number of audio choices on how the service might be Northern Canada in English, available to Canadians makes it redeveloped. French and eight Aboriginal extremely difficult to maintain, languages. CBC Radio 3 has been developed let alone enhance, the profile and by CBC Radio to meet the needs listener base of CBC Radio’s CBC Radio One is CBC Radio’s of younger listeners, while taking services. CBC Radio is responding flagship News, information and advantage of new delivery to these challenges by developing a entertainment network with platforms. CBC Radio 3’s blend of presence on as many new platforms 37 stations across the country, 18 of cutting-edge contemporary music as possible and by coordinating and which are offered via the FM band. is streamed over the Internet, is a cross-promoting its programming CBC Radio One service is rooted podcasting service, and is one of the on all of these delivery channels. in the regions, offering a mix of services offered by Sirius Canada. local, regional and national programs The other major challenge is the that explore different perspectives, Nearly 3.8 million Canadians, aged growing diversity of the Canadian opinions and events. All of 12-plus, listened to either population. It has become CBC Radio One’s stations are CBC Radio One or CBC Radio 2 increasingly difficult to appeal to all available to listeners over the each week during BBM’s latest Fall types of listeners, given the growing Internet. CBC Radio One is also survey. In the Fall 2006 survey, disparity in the interests and values available over Sirius Satellite Radio. CBC Radio captured a combined of Canadians as the population both share of 13.0 per cent, which ages and changes in ethnic mix. matched the previous record from

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CBC Radio’s Strategic Objectives CBC Radio 2 Development CBC Radio has a unique vision for each of its three The CBC Radio 2 redevelopment process that was major platforms. announced in 2006 and is to be implemented, beginning in 2007–2008, involves: > CBC Radio One should be recognised and valued as the definitive source for Canadian > Broadening of the range of music broadcast News, information and entertainment. to be more representative of the musical community in Canada and more relevant to > CBC Radio 2 should be Canada’s leading Canadian listeners: cultural platform in all genres, the place where creativity finds a home. • Strong commitment to core classical and jazz audience remains; > CBC Radio 3 should be a driving force in contemporary music, identifying and • Addition of adult-oriented singer- promoting leading-edge Canadian talent. songwriters, complementary adult vocal performers and adventurous Building on these three platforms, CBC Radio intends contemporary non-pop compositions to meet listeners on their own terms – in respect of of relevance to adults aged 35–49; both time and place – broadcasting over-the-air, via the Internet, podcasting, and adapting to new distribution • Strong orientation to new Canadian talent channels, such as satellite radio and mobile devices, as not exposed elsewhere; opportunities become available. > Inclusive and accessible content and CBC Radio has identified four key strategic objectives: presentation style;

> Expand program development across the > Day-to-day consistency to address listener CBC Radio 2 schedule and to other needs at time of day. platforms; These are the three measures of success for this > Increase direct engagement with Canadians redevelopment process. It is expected that a so that CBC Radio continues to be the redeveloped CBC Radio 2 will appeal to a broader authentic voice of the community; age cohort of the popu lation, more reflective of the distribution of Canada’s adult population. A service > Develop new platforms such as podcasting to with a broader appeal should reach more Canadians deliver content when, where and how our and translate into an increase in the network’s share audiences want it; and of all radio listening. > Strengthen the presence of CBC Radio One by expanding local service to the five million Nearly 3.8 million Canadians, Canadians who lack it. aged 12-plus, listened to With respect to regionalism, CBC Radio has developed and begun to implement a plan to extend either CBC Radio One or service to a significant number of Canadians who do not have access to a local CBC Radio One service. CBC Radio 2 each week Markets covered by this plan include: during BBM’s latest Fall Kitchener Red Deer Hamilton survey. In the Fall 2006 Barrie Kingston Nanaimo Kelowna Chilliwack Saskatoon survey, CBC Radio captured Peterborough Cranbrook Kamloops a combined share of 13.0 It is important to note that while we believe that per cent, which matched extending our local Radio service to more Canadians is critical in order to properly fulfil the Corporation’s the previous record from mandate, CBC Radio requires additional funding if this plan is to be fully implemented. Spring 2002.

27 CORPORATE PLANNING AND STRATEGY>>

2.4.3 CBC.CA Within this environment, CBC.ca’s This section begins with a review vision is to be: Canada’s most of the performance of each service The Internet has become an important and popular media in the past year and is followed by integral part of the lives of most website. the overall plan for French Services. Canadians and, as such, represents an increasingly important platform CBC.ca Strategic Objectives Télévision de Radio-Canada for CBC|Radio-Canada. On In pursuit of this vision, CBC.ca’s Télévision de Radio-Canada the English side, CBC.ca operates plans for 2007–2008 are to: includes Télévision de Radio- in an extremely fragmented Canada, with eight conventional, > Increase CBC.ca traffic by and competitive environment, over-the-air stations, and the continuing to focus on core with competitors ranging from specialty News and information strengths: important and traditional Canadian broadcasters service, Réseau de l’information popular programming. with an online presence de Radio-Canada (RDI). (e.g., CTV.ca, Canada.com), to > Implement Web 2.0 and Main Network new social networking sites the Media Player. (e.g., myspace.com and Youtube.com), Ninety-six per cent of to high-profile search engines and > Increase revenues. Francophones tuned to Télévision portals (e.g., Google, Yahoo!). > Support the development de Radio-Canada each week throughout the 2005–2006 More than three million Canadians and implementation of a broadcasting year. Télévision de visit CBC.ca each month from multi-platform strategy. Radio-Canada has managed to home, making CBC.ca the third > Increase site stability and retain this very high level of usage, most popular News and reliability. even as the French-language information website in Canada. television market place has become In the five-year period of 2001 to 2.4.4 FRENCH SERVICES more fragmented with an 2006, usage of CBC.ca has more All of CBC|Radio-Canada’s increasing number of broadcast than tripled. French-language media lines services and an increased level (Television, Radio and New of video content available USAGE OF CBC.CA Media) report to the Executive on alternative platforms, especially AT TWO POINTS IN TIME Vice-President for French Services. the Internet. Canadians 2+, at home (in thousands) This integrated approach facilitates the development of a global vision In 2005–2006, Télévision de for French Services that recognises Radio-Canada continued its 3,500 the individual strengths and initiative to refocus its activities 3,119 distinctive character of each media on public service values and to 3,000 line while promoting the strengthen its regional presence. overarching goal of improving the 2,500 These programming initiatives quality of the democratic and have been very well received by

2,000 cultural life of the citizens of audi ences, with Télévision de Canada. Radio-Canada continuing to receive 1,500 CBC|Radio-Canada’s French about one-ﬁfth of all viewing by Services’ key strength is its content, Francophones in prime time. 1,000 935 which is widely recognised as being: Canadian programming dominates the prime-time schedule of 500 • credible, reliable and accessible at any time; Télévision de Radio-Canada, and has done so for the past ﬁve years. 2001 2006 • civically oriented and In 2005–2006, 88 per cent of inclusive; Télévision de Radio-Canada’s SOURCE: comScore Media Metrix prime-time programming – Note: These averages are based on the • varied and of high quality; months of September, October and 24.8 of 28 hours – was Canadian. November. • distinctive and innovative. Not only was Télévision de Radio-Canada’s prime-time schedule overwhelmingly

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Canadian, but its programs were Radio Canada International (RCI), audience share of 13.3 per cent in among the most popular aired on CBC|Radio-Canada’s international Spring 2006 and 12.3 per cent in French-language television in service and the new multilingual Fall 2006. Taken together, Première Canada. The network will continue Web Radio service, RCI viva. Chaîne and Espace musique to build an expanded presence as This new Web Radio service will reached 1,216,000 listeners each the venue for enter taining, socially play a pivotal role for immigrant week in Fall 2006. relevant Canadian programming of communities in Canada and will Radio-Canada.ca the highest quality and greatest provide a gateway for all new appeal. and prospective arrivals to the Radio-Canada.ca provides country. In addition, Radio de Francophones with high-quality Looking to the future, Télévision Radio-Canada cooperates with content complementing the de Radio-Canada intends to CBC Radio in the production of programming offered by continue its leadership in HDTV CBC North /Radio-Canada Nord, Télévision de Radio-Canada production. Since Fall 2005, high which broadcasts to Northern and Radio de Radio-Canada. deﬁnition programs produced Canada in French, English and Radio-Canada reporters now post principally in prime time increased eight Aboriginal languages. their blogs on the Radio-Canada.ca from 25 hours to 600 for the website. 2006–2007 season. Five sectors Première Chaîne, with 20 were prioritised: drama, production centres and 14 regional According to comScore Media entertainment, Current Affairs and News bureaux across the country, is Metrix, almost 1.5 million documentaries, sports, and News. the most comprehensive French- Francophones visited In 2006–2007, Télévision de language News network on radio Radio-Canada.ca in Fall 2006. Radio-Canada aired 14 regular in Canada. Première Chaîne is Usage of Radio-Canada.ca has programs and three specials in HD. available to 98 per cent of Canada’s almost doubled since 2001. Francophone population. While Télévision de Radio-Canada’s place in Première Chaîne’s key achieve - USAGE OF programming for adult audiences is ments in 2006–2007 included the RADIO-CANADA.CA AT TWO POINTS IN TIME extremely strong, it is recognised return of Christiane Charette, a new Francophones 2+, at home that work needs to be done to format for Désautels, a revamped (in thousands) revitalise its programming for Dimanche magazine, a new anchor 1,491 children. Two new daily shows were for the afternoon Radio journal 1,500 successfully introduced this year – newscasts, and an enhanced Kif-Kif and Les pieds dans la marge. regional programming line-up. In 2006–2007, Télévision de 1,200 Espace musique, launched in Radio-Canada also introduced new Fall 2004, provides a distinctive youth programs in order to regain music service reﬂecting the breadth 900 its leadership role in this important of Canadian diversity and musical 766 area of broadcasting. genres. It is available to Finally, with respect to News, Francophones from coast-to-coast 600 Télévision de Radio-Canada, in with a local presence in each 2006–2007, revamped Le téléjournal provincial capital. Its mandate is to 300 at 10:00 p.m., launched a new develop and promote French- Téléjournal at 8:00 a.m. and language Canadian talent and music returned to the 6:00 p.m. time slot of all genres (classical, jazz, world with a full regional newscast. music, and emerging music) for 2001 2006 Francophone Canadians. Radio de Radio-Canada SOURCE: comScore Media Metrix Note: These averages are based on the Radio de Radio-Canada includes In Fall 2006, Radio de Radio- months of September, October and three main audio platforms: Canada captured 15.2 per cent of November. Première Chaîne, Espace musique French-language radio listening and bandeapart.fm. Radio de among Francophones in markets Radio-Canada is also responsible served by the Corporation. for the operation of Première Chaîne attracted an

29 CORPORATE PLANNING AND STRATEGY>>

FRENCH CULTURE ACTION PLAN STRONG, PUBLIC AND PROGRAMS CONSISTANT SUPPORT DEMOCRACY >>BRAND > SERVICES’ INTEGRATION COHESION HUMAN OVERALL RESOURCES PLAN>> CULTURE AND DEMOCRACY In the 21st century, enriching the democratic and cultural life of Canadians requires a different paradigm.

ACTION PLAN – 2007–2008 DIRECTIONS

INTEGRATION > Complete the integration of French Services. > Conduct a comprehensive study of the Radio-Canada brand image. > Consolidate workspace to reﬂect the new reality. > Launch an image campaign in February 2007. > Effectively manage team cohesion.

PROGRAMS The French > Overall strategy to boost ratings. Services’ Group > Plan to expand regional roots and network contributions. > International strategy. > Strong News brand. > Consolidation and strengthening of sports.

Television > Boost continuous hours tuned to in evenings. > Increase number of big-draw programs in prime time. > Produce more episodes for key series. > Enhance national productions shot in the regions. > Enrich children’s programming (for children aged 2–11) aired during the day time and develop new programs targeted to teens (aged 12–17).

Radio > Strengthen Première Chaîne’s leadership position. > Increase Espace musique’s impact. > Produce more investigative reports. > Entrench RCI viva in cultural communities.

New Media > Clarify Radio-Canada.ca’s offering and positioning. > Make content more interactive and accessible to a general audience. > Develop a meeting place for youth and young adults on Radio-Canada.ca and News platforms. > Be a leading catalyst for New Media development. > Help deﬁne the new economy in audiovisual rights.

Regional > Strengthen regional roots. Strategy > Make better use of regional expertise on all network programming. > Improve our signal distribution.

HUMAN > Workforce training and mobility. RESOURCES > Succession planning. > Cultural diversity. > Internal communications strategy. > Integrated HR approach in the regions. > Union involvement in our efforts to promote the public broadcaster.

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STRONG, CONSISTENT BRAND 2.5 CBC | RADIO-CANADA: The Radio-Canada brand is more than a company name and logo. LEADING NEW It is an entity that creates programming and ensures our future success PLATFORM by securing public support. The sum total of what people see and feel DEVELOPMENT regarding Radio-Canada is its programs, services and employees. New technologies are providing The Radio-Canada brand is our most valuable asset: consumers with the ability to choose when, where and how they > It clarifies our offering. receive audio and video content – > It influences our audience’s loyalty. via the Internet, video-on-demand (VOD), podcasts, cell phone > It distinguishes us from our competitors. networks, satellite radio, and other > It drives our ratings performance. new technologies. And, consumers are demanding that broadcasters > It guides the future development of our programs. adapt to these new technologies > It allows us to confidently tackle new markets. or face being left behind.

> Our future growth depends on the value and strength of CBC|Radio-Canada is an our brand. acknowl edged leader in the use of emerging technologies and PUBLIC SUPPORT broadcasting platforms. Public support is to Radio-Canada what proﬁts are to private enterprise: CBC|Radio-Canada makes its > There can be no public service without the public. audio content available over every platform available to consumers in > Audiences are an essential indicator of our level of support. Canada. Canadians can listen to > Public support is gauged by: over-the-air Radio or tune into CBC Radio One, CBC Radio 2, • Ratings. CBC Radio 3, Première Chaîne, • In-house surveys. Espace musique, and bandeapart.fm over the Internet. They can • Focus groups. download podcasts to MP3 players • Public endorsements by opinion leaders. and iPods or get audio clips over their cell phone. They can listen to • Favourable media coverage. Galaxie on DTH and digital cable systems or they can tune into any one of six CBC|Radio-Canada channels on Sirius Canada’s satellite radio service. On the audio front, CBC|Radio-Canada has been and remains a leader on almost every platform. CBC|Radio-Canada’s English- and French-language Television services are also distributing their programming over multiple new platforms. For example, CBC Newsworld and RDI are part of the package of services distributed by cell phone companies in

31 CORPORATE PLANNING AND STRATEGY>>

Canada, and CBC Television’s 2.6 OPERATIONAL Services achieved efficiencies by programs are also avail able across EFFICIENCIES consolidating News and regional Canada via BDUs that offer operations under a single general video-on-demand (VOD) services. CBC|Radio-Canada is continually manager, consolidating Television, Select Television program ming is reviewing its business approaches Radio, technical support services, also available over the Internet via and production technologies to the research and strategic planning CBC.ca or Radio-Canada.ca. identify savings and leverage assets group, and creating a media for reinvestment in programming. committee to examine projects CBC Radio 3 launched its The Real Estate Division, created in involving multiple media lines. It 2000, manages CBC|Radio-Canada’s also completed the implementation podcasting service in June Real Estate portfolio of more than of the Vision Project. 2005 and is the number four million square metres and CBC|Radio-Canada’s generated $23 million in increased Merchandising Division has one listened-to music revenues, cost savings and cost taken advantage of the fact that avoidances in 2005–2006 while CBC|Radio-Canada is one of the podcast in Canada with also winning recognition for its most recognised brands in the approximately 200,000 environ mentally friendly practices country by providing Canadians (i.e., Building Owners and with the opportunity of buying downloads per week as Managers Association (BOMA) their favourite CBC|Radio-Canada Go Green certification in products either online or in a of December 2006. Montréal and Vancouver, CBC|Radio-Canada shop. During BOMA Environment Award 2005–2006, the Merchandising (Québec and Canada categories) In terms of the Internet, Division generated $6.5 million CBC|Radio-Canada has been for Maison de Radio-Canada in in revenue – an increase of one a Canadian pioneer of this new Montréal, and BOMA Certificate million dollars over 2004–2005. medium and continues to be of Building Excellence for the The Division also opened a an industry leader. CBC.ca and Canadian Broadcasting Centre boutique in Montréal and a kiosk Radio-Canada.ca are among in Toronto). Other achieve ments in Ottawa and released a record the most popular News and include obtain ing approval number of home videos for sale to information websites in Canada. for the redevelopment of the public. In addition, the Corporation has CBC|Radio-Canada’s Vancouver created specialised niche services, operations and the consolidation CBC|Radio-Canada is a founder such as CBC Radio 3 and of the St. John’s locations. and a partner in Sirius Canada bandeapart.fm, which are in the which provides satellite radio service On the technology side, across Canada. CBC|Radio-Canada vanguard of the use of such new CBC|Radio-Canada implemented technologies as podcasting. supplies six channels of content to new telecom and broadcast Sirius Canada, thereby extending CBC Radio 3 launched its technologies for an initial annual podcasting service in June 2005 the Corporate brand to a new savings of $1.4 million. It also platform, as well as throughout the and is the number one listened-to increased revenues through space music podcast in Canada with United States where four of those rentals on towers, sites and channels are also delivered by the approximately 200,000 downloads buildings. New remote production per week as of December 2006. US partner, Sirius Satellite Radio. methods generated significant As of the end of 2006, Sirius While CBC Radio 3 offers savings for the broadcast of such 100 per cent Canadian content, Canada had exceeded its subscriber activities as the 2006 Torino Winter projections and achieved half of its downloads originate Olympics. from outside of Canada – a fact subscription levels well ahead that demonstrates the importance CBC Television hopes to generate of its competitor, XM Canada. of the Internet for extending higher programming revenues by Overall, efficiency initiatives are means of the newly created Video CBC|Radio-Canada’s global reach. now generating $75 million The most popular podcasts are Syndication Unit and create savings annually in cost savings and Quirks and Quarks, Ideas and by outsourcing the Promotion increased revenue. As It Happens. and Design department. French

PAGE 32 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 CORPORATE PLANNING AND STRATEGY>>

Strategic Objectives The operations of CBC Music and The Corporation concluded CBC|Radio-Canada continues to CBC Records/Les disques SRC agreements with six of its unions in try to improve the efficiency of its will be regrouped to improve 2005–2006: STARF, SCRC, SCFP, operations and leverage its assets efficiencies, and Galaxie anticipates UDA, CMG, and APS. developing new commercial and expertise in order to generate Strategic Objectives new revenues. services to enhance its revenues. The Merchandising Division The Corporation will continue On the Real Estate side, the intends to expand its retail to foster an environment that Corporation expects to close the operations in low-risk locations promotes leadership and sale of excess density in its such as Montréal, Toronto, Ottawa, accountability across all levels of the Vancouver property, thereby and Edmonton. organisation while ensuring an generating revenues of around environment that is conducive to $37 million in the 2007–2009 Corporate administration will employee well-being and timeframe. Studies of possible continue the implementation of fulfilment. Further initiatives opportunities in Montréal and strategic sourcing contracts to resulting from the 2004–2005 Toronto should be completed in achieve better terms for the Wellness Study include the creation 2007 and action initiated if a procurement of products and of special quiet rooms, the reasonable business case exists. services. The economies of scale organisation of stress manage ment Similarly, a study of the possible available to CBC Shared Services seminars and the development of consolidation of the Halifax in transaction-intensive areas of respect and recognition workshops, operations should be completed administrative services will produce in consultation with Union in 2007 and action taken, if measurable and ongoing cost representatives. appropriate. Review of certain reductions. The Corporation hopes to international operations will also 2.7 HUMAN conclude agreements with a be undertaken, as well as a large RESOURCES number of Unions and guilds, number of capital, non-cyclical including AR, SPACQ, SARTEC, maintenance and renovation CBC|Radio-Canada has a highly WGC, AF of M, and ACTRA. projects. creative workforce of 9,800 employees spread across the 2.8 STRATEGIC The Corporation intends to add country. Ninety per cent of the two HD studios plus HD post- PARTNERSHIPS Corporation’s employees are production facilities in Montréal unionsed, belonging to one of Strategic partnerships have assumed and to complete one HD studio seven Unions. greater importance over the years in Toronto in 2007–2008. The as CBC|Radio-Canada has sought Desktop Radio technology will be In 2005–2006, CBC|Radio-Canada to increase the reach of its rolled out to all locations and new appointed its first Director of programming on new platforms technologies will be implemented Organisational Health and Wellness and to mitigate the risk associated to deliver audio and video via and hired an ergonomist as part of with undertaking new ventures. CBC|Radio-Canada’s websites. A its health and wellness initiative. Examples of partnerships include permanent post-production facility The Corporation also conducted a Sirius Canada’s satellite radio will be established in Toronto in survey of employees’ psychological service, new mobile wireless order to facilitate HD production well-being. The results of this services delivered by Canada’s of remote sporting events such as survey are being assessed jointly by cellular service providers and the Beijing Summer Olympics and Management, the Unions and CBC News/RDI Express. the FIFA World Cup. employees in order to determine CBC|Radio-Canada recently ways to address issues which renewed its in-flight service with may arise. Air Canada and continues to work A major initiative in 2005–2006 with its private sector partners in was the restructuring of French the specialty television services, Services into a single division. ARTV and The Documentary This required significant human Channel. resources support in order to ensure its successful completion.

33 CORPORATE PLANNING AND STRATEGY>>

CBC|Radio-Canada, along with its with MobiTV for the broadcast of has led to development of such partners, Sirius Inc. and Standard CBC Newsworld over the Internet cross-media projects as Broadcasting, introduced the Sirius to wireless devices. It is also Le 11 septembre, cinq ans après… Canada satellite radio service to negotiating arrangements with (9/11 Five Years Later), Foreign Canadians in late 2005. Public AOL, Google,Yahoo!, iTunes, correspon dents’ week, the Kent interest and acceptance has been Rogers, Telus, and Bell Mobility. Nagano event, La semaine verte and very high, as evidenced by the fact On the sports side, CBC Television L’heure de gloire. that subscriptions to Sirius Canada is exploring a partnership with The CBC News Integration have exceeded original forecasts. Insight Sports to create an Internet Project continued to roll out CBC|Radio-Canada supplies six sports portal and is also throughout 2005–2006. This channels to Sirius Canada. investigating potential partnerships initiative has resulted in the to distribute FIFA coverage via substantial sharing of information, video-on-demand and mobile CBC | Radio-Canada ideas and resources across wireless devices. is Canada’s largest CBC Radio, CBC Television CBC|Radio-Canada expects to and CBC.ca. continue to work on documentary broadcaster and offers The consolidation of the co-productions with international Corporation’s operations in single services from coast-to- partners such as The New York locations in Ottawa, Québec Times, S4C, and ZDF. Such coast-to-coast in English City and Edmonton has also co-productions extend the encouraged employees within CBC|Radio-Canada brand and and French and eight CBC|Radio-Canada’s English offer additional high-quality and French Radio, Television Aboriginal languages. distinctive programming to and New Media services to work Canadians. more closely together, as has the CBC|Radio-Canada is also Finally, the Corporation continues creation of CBC Shared Services, working with each of Canada’s to assess whether it would be which consolidated all of the three main cellular service appropriate to continue its Corporation’s internal services providers to offer content over affiliation arrangements with in Information Technology, their mobile wireless services. The independent television stations that Human Resources, and Financial initial focus has been on News, are currently CBC|Radio-Canada Administration into a single entity. weather and sports clips, but is Television Affiliates. expected to expand into other In all of these areas, forms of “mobisodes”. 2.9 WORKING CBC|Radio-Canada is seeking TOGETHER to build on its strengths across all Strategic Objectives media to capitalise on the associated CBC|Radio-Canada is reviewing CBC|Radio-Canada is Canada’s synergies and economies of scale. all of its partnership agreements largest broadcaster and offers in order to determine if there are services from coast-to-coast-to- Strategic Objectives opportunities to improve those coast in English and French and Specific initiatives to promote agreements in ways that enhance eight Aboriginal languages. While increased collaboration within the Corporation’s position. specialisation is necessary to take CBC|Radio-Canada for advantage of each media’s special 2007–2008 include: CBC|Radio-Canada has extended characteristics, working together • further consolidation of a three-year contract with Clear creates efficiencies, as well as staff and facilities within a Channel at Toronto Pearson synergies. International Airport for single building in various CBC News/RDI Express and is In 2005–2006, French Services CBC|Radio-Canada attempting to negotiate other underwent a major reorganisation, locations across the country agreements so that these services integrating all services under one (e.g., Vancouver, Halifax and can be extended to airports across office. This reorganisation builds St. John’s) to increase the the country. on the successful re-positioning opportunity for employees to of Télévision de Radio-Canada work more closely together. CBC Television expects to while addressing the challenges of conclude a distribution agreement a multi-platform environment and

PAGE 34 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 CORPORATE PLANNING AND STRATEGY>>

2.10 STAKEHOLDER 520 leading Canadians across the • providing important mandate RELATIONSHIPS country.The Corporation also and industry information to conducted a survey of key Members of Parliament to CBC|Radio-Canada has developed stakeholders and public opinion support CBC|Radio-Canada important relationships with its leaders to assess overall perceptions as Canada’s national public stakeholders, including Government, of CBC|Radio-Canada. broadcaster; and, Parliament, the CRTC, and the Canadian public. The maintenance Strategic Objectives • generating conﬁdence in of strong relationships with all of Speciﬁc initiatives to promote CBC|Radio-Canada’s these stakeholders enhances the strong stakeholder relationships in long-term vision with Corporation’s ability to achieve 2007–2008 include: outreach activities promoting, its objectives. for example, the Corporation’s • annual follow-up survey of license renewal strategy. CBC|Radio-Canada has developed key stakeholders and public strategies to work effectively with opinion leaders; each of these groups that involve promoting ongoing dialogue. One • target information sharing such initiative was “Listening to with key stakeholders and Canada’s Leaders” which involved opinion leaders regarding core one-on-one meetings with issues and initiatives;

35 PAGE 36 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 FINANCIAL PLAN>>

3. FINANCIAL PLAN>>

3.1 FINANCIAL Including the $60 million power of large media conglomerates OVERVIEW re-investment and salary inflation would allow them to outbid funding, CBC|Radio-Canada’s CBC|Radio-Canada for the most The Financial Overview in funding has increased by only three popular programming, including Appendix A presents the per cent between 1990 and 2006. sports programming and the Corporation’s financial picture for In constant dollars this means that Olympics. 2006–2007 through 2011–2012. CBC|Radio-Canada’s funding has In the early 1970s, the Government actually declined by approximately The operating appropriation is provided special funding to $394 million or 26 per cent over assumed to remain stable over the CBC|Radio-Canada to embark the past 16 years. forecast period. The apparent on an accelerated coverage plan increase from 2006–2007 to With the exception of the expected (ACP) designed to ensure that all 2007–2008 is due to transfers from increased revenues in 2008–2009 communities with populations of the operating to capital vote. The due to the Beijing Olympics, it is 500 or more would have access to 2008–2009 operating appropriation assumed that revenues will increase CBC|Radio-Canada’s over-the-air is 20 million higher as funds were $ each year by an amount that is less Radio and Television signals. As a transferred from 2004–2005 in than inflation. result, CBC|Radio-Canada’s order to help fund the Beijing over-the-air infrastructure was Operating expenditures for all Olympics that will be held in that expanded significantly. In its recent services are relatively stable from year. Salary funding increases for CRTC submission on television year to year to match available the years beyond 2006–2007 are technologies, the Corporation funding, with the exception of not known, so the forecast assumes proposed a hybrid solution for increased expenditures for Television that salary funding increases will continued ACP coverage. The services for the Olympics. approximate the actual increases in estimated cost to replace the aging salary expenditures. 3.2 MATERIAL RISKS transmitters for Radio alone is While CBC|Radio-Canada TO FINANCIAL PLAN $46 million. A proposal explaining receives funding for inflation this plan was submitted to the Continued fragmentation in the on the salary portion of its Minister of Canadian Heritage in industry and increased competition expenditures, inflation on goods January 2006. from other technologies is and services is not funded. This continuing to exert pressure on Finally, there has been dissatisfaction erodes CBC|Radio-Canada’s television advertising revenue and is among some cable distributors purchasing power by approximately expected to continue to do so in with respect to the operation $12 million per year. the foreseeable future. Therefore, and governance of the Canadian Beginning in 2001–2002, the revenues for the Corporation are Television Fund (CTF), and more Government has provided expected to decline in real terms. specifically with the funding CBC|Radio-Canada with a envelope of 37 per cent allocated Increasing concentration in the re-investment in programming of for productions destined for broadcasting – particularly $60 million. This funding has been broadcast on CBC|Radio-Canada. television – marketplace is expected renewed each fiscal year up to and The latter represents $92.5 million to put additional stress on including 2008–2009. The much- of the $250 million total fund. CBC|Radio-Canada’s advertising appreciated funding has been used The CRTC has set up a task revenues and program acquisition to strengthen and enhance Radio force to review these longstanding opportunities. The effect would be and Television programming, concerns. The task force has particularly felt in CBC Television, particularly in the areas of drama, issued recommendations and the as over 50 per cent of its funding children’s programs, documentaries, CRTC’s final decision is expected comes from commercial revenues. and arts and culture. in Fall 2007. Any reduction in In addition, the substantial buying CBC|Radio-Canada’s envelope

37 FINANCIAL PLAN>>

would result in higher costs to Borrowing will be for investments acquire independent programming or activities related to ongoing or to develop in-house operations that demonstrate programming. viability by generating funds sufficient to achieve a positive rate 3.3 BORROWING PLAN of return. Pursuant to the provisions of The Corporation will not borrow Section 46.1(1) and 54(3.1) of the money to finance base working Broadcasting Act, CBC|Radio-Canada capital activities or operating seeks the approval in principle of shortfalls. the Minister of Finance to borrow money, not exceeding in the The Corporation will submit aggregate $25 million, subject to specific borrowing proposals to the the following general conditions: Minister of Finance, consistent with the above principles. Proposals that are to be financed through borrowing will be consistent with and enhance the Corporation’s ability to meet its mandate.

PAGE 38 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 APPENDIX A>>

FINANCIAL OVERVIEW>>

2006–2007 2007–2008 2008–2009 2009–2010 2010–2011 2011–2012 SOURCES OF INCOME Operating appropriation 914,323 1 948,321 1-2 967,034 1-2 946,423 1-2 946,423 2 946,423 Additional funding for programming initiatives 60,000 60,000 60,000 60,000 3 60,000 3 60,000 3

Total Operating Appropriation 974,323 1,008,321 1,027,034 1,006,423 1,006,423 1,006,423

Advertising and program sales 330,735 335,227 395,341 4 343,349 345,066 346,791 Real Estate 7,332 7,994 8,216 8,298 8,381 8,465 Transmission and distribution 7,339 7,307 7,642 7,718 7,796 7,874 Galaxie 21,449 22,307 19,281 20,052 20,854 21,689 Other revenues5 192,155 177,807 178,261 180,044 181,844 183,662

TOTAL SOURCES OF INCOME 1,533,333 1,558,963 1,635,775 1,565,884 1,570,364 1,574,904

OPERATING EXPENDITURES Television and Radio services6-7 1,439,564 1,464,753 1,541,121 4 1,470,784 1,475,432 1,479,527 Transmission, distribution and collection 60,898 61,203 61,509 61,816 62,125 62,436 Corporate Management 15,984 16,064 16,145 16,225 16,306 16,387 Additionnal pension contribution 11,200 11,200 11,200 11,200 11,200 11,200 Amortisation of capital assets 119,666 120,862 122,070 123,292 123,908 125,147 Deduct: items not requiring current operating funds (113,979) (115,119) (116,270) (117,433) (118,607) (119,793)

TOTAL OPERATING EXPENDITURES 1,533,333 1,558,963 1,635,775 1,565,884 1,570,364 1,574,904

NET POSITION ------

Net position after reduction of funding for programming and other expenditures (60,000) (60,000) (60,000)

1 Includes the repayments of funds transferred from NATV proceeds ($9,277,000 in 2006–2007, 2007–2008, 2008–2009, and 2009–2010). 2 Salary funding increases from Treasury Board have not yet been determined for fiscal years beyond 2006-2007. It is assumed that salary funding received will be equal to actual increases in salary expenditures. 3 While the $60 million in temporary funding has been approved for 2007-2008 and 2008-2009, it has not been approved for the three following years. 4 Includes 2008 Beijing Olympics revenues and expenditures. 5 Includes Specialty Services (CBC Newsworld, RDI and CBC Country Canada) and other miscellaneous revenues. 6 Includes expenditures related to CBC|Radio-Canada’s Main Services and Specialty Services (CBC Newsworld, RDI and CBC Country Canada). 7 Includes $60 million spending on programming initiatives.

39 APPENDIX B>>

CAPITAL BUDGET>> The Corporation’s total capital spending base in 2007–2008 is planned to be $91.6 million, which excludes any funds carryover from 2006–2007 to complete projects started in that year. Beyond 2007–2008, the capital spending base will remain at approximately $91 million.

Roughly 60 per cent of the capital The majority of the remaining over-the-air television broadcasting budget over the next three years is budget will be spent on transmitter (PN 2002-31) and its Regulatory planned to be spent on production and tower maintenance, and to Framework for the distribution infrastructure, where major improve and extend Radio services of digital television services initiatives include replacing failing in line with CRTC commitments. (PN 2003-61). Private broadcasters, obsolete analogue equipment with Other investments include building as well as CBC|Radio-Canada, digital standards, modernising improvements and changes to have commenced to roll out DTV Radio production facilities, further comply with codes and regulations, and will continue to do so over the rollout of Desktop Television and investments to refresh part of next few years. production and some high our vehicle fleet. Following an in-depth hearing in definition television (HDTV) The Corporation will also be late 2006, the Canadian Radio- production investments to replace grappling with the pressures of television and Telecommunications existing assets which have reached replacing its aging towers and Commission (CRTC) released their end of life. transmitters that were introduced its review of policies with respect Approximately 15 per cent of the during the Accelerated Coverage to over-the-air (OTA) television. budget is planned to be spent on Program (ACP) of the late 1970s The Commission confirmed its Corporate-wide systems and and early 1980s to provide service carriage rules for OTA television technology infrastructure. Specific to small communities. Generally, and its authority to implement initiatives include the rollout of our these assets have a useful life of 20 subscriber fees for OTA television Desktop Radio production system to 30 years. The concentration of broadcasters. However, the CRTC which has been pushed to the towers and transmitters introduced concluded that those fees are not limits of its useful life, and initial over the ACP period presents an yet needed. The Commission also investments in an electronic anomaly in the replacement cycle heard from parties on the document and records management of these assets, with a resultant spike transition to digital television. system. Further investments include in the demand on the capital funds. CBC|Radio-Canada presented its updating our server infrastructure proposed hybrid model involving The transition to digital radio, and software upgrades. A major both OTA and cable/satellite for digital television (DTV) and high facility improvement and integrated the digital environment. definition television (HDTV) newsroom operation investment in will be market driven and will In order that CBC|Radio-Canada Vancouver is also underway which be very costly but necessary.The not fall behind in the transition to is primarily funded by the sale of CRTC issued its Licensing Policy digital, large capital investments are unused density on our property. framework to oversee the transition required in its transmission and from analogue to digital distribution infrastructure, as well

PAGE 40 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 APPENDIX B>>

as production studios and other Developments in the US equipment, which can only be marketplace around In-Band partially addressed within current on-Channel (IBOC) digital radio funding levels. services and its planned, and still to be tested, development of related The CRTC has also recently issued HD radio receivers on the market its new policy on digital radio, in in 2006–2007 may have some Broadcasting Public Notice CRTC implications in the Canadian 2006-160. This new policy opens marketplace, prompting a possible the door for alternative usages utilisation of a similar technology of the RF spectrum currently in Canada. We are currently allocated to digital radio monitoring US developments in broadcasting (DRB), including the this area, as well as digital radio broadcasting of new digital audio broadcasting (DRB) developments programming services, multimedia in Canada and around the world. and IP packaged content, which These may increase capital pressures may make DRB another element on the Corporation. of the CBC|Radio-Canada multiplatform strategy.

41 APPENDIX C>>

MANDATE AND GOVERNANCE>>

CORPORATE MANDATE The Canadian Broadcasting Corporation/Société Radio-Canada (“CBC | Radio-Canada” or the “Corporation”) was ﬁrst established by an Act of Parliament in 1936. The Corporation’s current legislative mandate, Corporate powers and governance mechanisms are set out in the 1991 Broadcasting Act (the Act). Each year, pursuant to section 54 of the Act, the Corporation must submit to the Minister of Canadian Heritage a Corporate Plan regarding the businesses and activities, including investments, of the Corporation and its subsidiaries, if any.

THE ROLE OF THE vi. contribute to shared national CORPORATION IN THE CANADIAN consciousness and identity; BROADCASTING SYSTEM vii. be made available throughout Canada by the most appropriate and efficient means Section 3 of the Act sets out the broadcasting policy and as resources become available for for Canada and includes provisions specifically the purpose; and, addressing the role of the Corporation in the Canadian viii. reflect the multicultural and multiracial broadcasting system. In particular, paragraphs 3(1)(l) nature of Canada. and (m) provide: These provisions establish a very broad mandate for (l) the Canadian Broadcasting Corporation, CBC|Radio-Canada, requiring the Corporation to as the national public broadcaster, should make its programming available across the country in provide Radio and Television services a manner which satisfies both national and regional incorporating a wide range of programming needs, in both English and French, while also reflecting that informs, enlightens and entertains; the multicultural and multiracial nature of Canada. (m) the programming provided by the In addition to this domestic mandate, Corporation should: CBC|Radio-Canada is also required by section 46(2) i. be predominantly and distinctively of the Act to provide an international service which Canadian; must comply with license conditions and regulations ii. reflect Canada and its regions to national issued by the Canadian Radio-television and and regional audiences, while serving the Telecommunications Commission (the “CRTC”), special needs of those regions; as well as any directions issued by the Governor iii. actively contribute to the flow and in Council. exchange of cultural expression; iv. be in English and in French, reflecting No other Canadian broadcaster – commercial or public the different needs and circumstances – has the same breadth of mandate or the same scale or of each official language community, scope of operations as CBC|Radio-Canada. including the particular needs and circumstances of English and French linguistic minorities; v. strive to be of equivalent quality in English and French;

PAGE 42 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 42 APPENDIX C>>

CORPORATE POWERS acquisition of real property or the to the CRTC regarding the disposition of real or personal disputed license condition. Part III of the Act sets out the basic property (other than program powers of the Corporation. Pursuant to section 24(2) of the material or rights), as well as a Act, none of CBC|Radio-Canada’s A central feature of the regime $15,000,000 (modified by “core” licenses (i.e., conventional established by Part III is the Governor in Council approval) Television and Radio station licenses) arms-length relationship between (48(2)(b)) limit for the lease of real may be revoked or sus pended CBC|Radio-Canada and the property. Transactions involving without CBC|Radio-Canada’s Government with respect to the greater amounts require the consent. If the CRTC determines Corporation’s broadcasting approval of the Governor that the Corporation has breached activities. Section 35(2) specifically in Council. a condition of license, the CRTC provides that Part III “shall be Pursuant to section 46.1 of the Act, must forward a report to the interpreted and applied so as to CBC|Radio-Canada may borrow Minister of Canadian Heritage and protect and enhance the freedom money, with the approval of the the Minister must lay the report of expression and the journalistic, Minister of Finance, up to a limit before Parliament (S25). creative and programming of $25,000,000, or any greater independence enjoyed by the The Corporation’s other amount authorised by Parliament. Corporation in the pursuit of its broadcasting activities objects and in the exercise of its REGULATORY (e.g., speciality Television and pay powers.” This requirement is REQUIREMENTS audio services) are subject to the repeated in section 46(5) (in the same regulatory regime as is context of the Corporation’s In the establishment and operation applicable to other industry objects and powers) and again in of its broadcasting activities, participants. Pursuant to section section 52(1) (in the context of CBC|Radio-Canada must comply 26(1)(b) of the Act, however, the certain financial reporting provisions). with the licensing and other Governor in Council may direct regulatory requirements established the CRTC to reserve channels or The head office of the Corporation by the CRTC under the Act, as frequencies for is required by section 50(1) of the well as any requirements under the CBC|Radio-Canada. Such a Act to be located in the National Radiocommunication Act which may direction need not relate to one Capital Region. The powers of the apply to the Corporation’s use of of the Corporation’s core licenses. Corporation are spelled out in radiocommunication spectrum. section 46(1). Section 46(1) CBC|Radio-Canada’s main reiterates that CBC|Radio-Canada’s Given the special role of broadcasting licenses are scheduled mandate is to provide the CBC|Radio-Canada in the to expire on August 31, 2007. programming contemplated by Canadian broadcasting system, there The CRTC has granted an paragraphs 3(1)(l) and (m) and then are limits set out in the Broadcasting administrative renewal of these identifies a list of powers, such as Act with respect to the CRTC’s licenses and will re-initiate the the ability to originate or purchase regulatory authority over the license renewal process when it programs, enter into associated Corporation. has completed its review of its contracts, and acquire copyright Section 23(1) of the Act requires conventional television policy, and trademarks that have been the CRTC to consult with specialty services and the granted to the Corporation so that CBC|Radio-Canada, if distribution sector. This will likely it may achieve this purpose. CBC|Radio-Canada so requests, occur in 2008. regarding any license conditions The Corporation is an agent of GOVERNANCE Her Majesty, except in respect of proposed to be applied to the As indicated above, Part III of the the Corporation’s international Corporation. If license conditions Act establishes the governance service and the Corporation’s are applied which the Corporation mechanisms for the Corporation. employees: section 47(1) of the Act. believes will unreasonably impede its ability to fulfil its mandate under As such, the Corporation may enter Pursuant to section 36 of the Act, the Act, the Corporation may refer into contracts (47(2)) and acquire CBC|Radio-Canada has a Board the matter to the Minister of property (47(3)) in the name of of Directors comprising 12 Canadian Heritage (23(2)). The Her Majesty (48(2)(a)), subject to a Directors, including the Chair and Minister may then issue a directive $4,000,000 limit with regard to the the President, all of whom are

43 APPENDIX C>>

appointed by the Governor in Parliament. The Minister must lay and to the President of the Treasury Council. Directors are appointed this summary of the Corporate Board. The Minister must lay the for a term of up to five years. The Plan before Parliament. Annual Report before Parliament Chair and the President may be within a further 15 sitting days. Section 131 of the FAA requires re-appointed any number of times, the Corporation to maintain Finally, in addition to these but all other Directors are limited satisfactory books of accounts, governance mechanisms set out in to two consecutive terms, unless while section 132 requires that the the Act, in April 2005, the Board of the third term is as Chair or Corporation have internal audits Directors appointed an outsider to President. conducted in this regard. The act as Independent Officer under The Board of Directors is Corporation must provide the CBC|Radio-Canada’s Corporate responsible for the management of Minister of Canadian Heritage Policy on Disclosure of the businesses, activities and other with such reports of its financial Wrongdoings (the Whistleblower affairs of the Corporation which, affairs as the Minister may require. Policy). CBC|Radio-Canada’s pursuant to section 40 of the Act, is The Act, at section 53(2), states Whistleblower Policy is also in accountable to Parliament through that the Corporation is not accordance with the Government’s the Minister of Canadian Heritage. required to provide information Whistleblower Legislation, which which could compromise or limit was subsequently passed in Pursuant to section 45 of the Act, the journalistic, creative or November 2005. The Corporation the Board must establish two programming independence of the also has an extensive code of standing committees, one in regard Corporation, to Treasury Board or Journalistic Standards and Practices. to English-language broadcasting, the Ministers of Canadian Heritage Complaints from the public, which and another in regard to French- or Finance. are not resolved at the program language broadcasting. Section level, are referred to one of the 148.1 of the Financial Administration The Auditor General of Canada Corporation’s two independent Act (FAA) requires the Board to is the auditor of the Corporation Ombudsmen. establish an audit committee of no (section 61 of the Act). Pursuant fewer than three Directors. to section 132 of the FAA, the With the passage of Bill C-2, the Corporation must have an annual Federal Government’s Accountability The Corporate Plan, which the auditor’s report prepared, which Act, in December 2006, Corporation is required to file with is addressed to the Minister of CBC|Radio-Canada becomes Government pursuant to section 54 Canadian Heritage. Sections 138 subject to the provisions of the of the Act, must include a statement to 142 of the FAA require the Access to Information Act (ATI), as of the Corporation’s objectives for Corporation to have a special of September 1st, 2007. the next five years and its strategy examination of its systems and for achieving those objectives, the The Access to Information Act gives practices at least once every five capital budget and the operating the public a right of access to years. The auditor’s report with budget for the next financial year all records held by the Federal respect to this special examination and any borrowing plans for that Government, Crown Corporations must be submitted to the Board of year. The capital budget is subject and other federal institutions Directors. If considered necessary to the approval of Treasury Board subject to the Act; it also sets by the auditor, after consultation and any borrowing plans are subject out exceptions to that right. with the Board, the auditor shall to the approval of the Minister The important exception for bring any relevant information to of Finance. CBC|Radio-Canada concerns the attention of the Minister of information related to journalistic, Pursuant to section 55 of the Act, Canadian Heritage. creative and programming the Corporation must also submit to Pursuant to section 71 of the Act, activities. Therefore, the Act will the Minister of Canadian Heritage the Corporation must, within three not apply to information that a summary of the Corporate Plan, months after the end of its financial relates to CBC|Radio-Canada’s modified to reflect the financial year, provide an Annual Report to programming content (Television, resources proposed to be allocated the Minister of Canadian Heritage Radio, online). to CBC|Radio-Canada by

PAGE 44 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 APPENDIX C>>

CBC | RADIO-CANADA SENIOR MANAGEMENT COMMITTEE

PRESIDENT AND CHIEF EXECUTIVE OFFICER

SENIOR VICE-PRESIDENT, EXECUTIVE VICE-PRESIDENT, EXECUTIVE VICE-PRESIDENT, VICE-PRESIDENT, HUMAN RESOURCES CBC TELEVISION FRENCH SERVICES CBC RADIO AND ORGANISATION

PRESIDENT VICE-PRESIDENT, VICE-PRESIDENT VICE-PRESIDENT, VICE-PRESIDENT, VICE-PRESIDENT REAL ESTATE STRATEGY AND CHIEF COMMUNICATIONS GENERAL COUNSEL AND CHIEF DIVISION AND BUSINESS FINANCIAL OFFICER AND CORPORATE TECHNOLOGY DEVELOPMENT SECRETARY OFFICER

In preparation for September 1, 2007, the Corporation is: These 10 divisions report to the President through their respective > DEVELOPING AN ATI FRAMEWORK FOR THE divisional heads. The first three CORPORATION. divisions (French Services, > BRIEFING MANAGERS ACROSS THE CORPORATION CBC Television, and CBC Radio) ON ATI, AS IT WILL RELATE TO CBC|RADIO-CANADA. are responsible for the programming activities of the > ESTABLISHING AN ATI OFFICE IN OTTAWA, FROM Corporation. CBC Technology and WHICH CBC | RADIO-CANADA’S ATI PROGRAM WILL the Real Estate Division, as well as BE MANAGED. the Corporation’s Shared Services, MANAGERIAL AND ORGANISATIONAL STRUCTURE a transaction and call centre that provides Human Resources, CBC|Radio-Canada’s head office is located in Ottawa, with two main Financial and IT support services, network offices in Toronto and Montréal and 27 regional offices across the support the management of country in such major cities as Halifax, Québec City, Calgary, and Vancouver. facilities and systems for all The Corporation’s organisational structure reflects its broadcasting broadcasting activities. The and related activities, as well as its infrastructure and administrative remaining divisions assist the main requirements. There are a total of 10 divisions within the Corporation: broadcasting activities through management of support functions: > FRENCH SERVICES (TÉLÉVISION DE RADIO-CANADA, Human Resources, Finance, Legal, RADIO DE RADIO-CANADA AND NEW MEDIA) Regulatory Requirements, Strategy, > CBC TELEVISION Business Development, and Communications. All divisions > CBC RADIO continually assess best practices to > CBC TECHNOLOGY ensure that the maximum amount > REAL ESTATE of the Corporation’s overall funding is available for broadcasting > STRATEGY AND BUSINESS DEVELOPMENT activities. > FINANCE AND ADMINISTRATION The Senior Management > HUMAN RESOURCES AND ORGANISATION Committee of the Corporation > COMMUNICATIONS includes the President and the ten > GENERAL COUNSEL AND CORPORATE SECRETARY divisional heads.

45 APPENDIX D>>

KEY MEASURES OF CBC| RADIO-CANADA’S PAST PERFORMANCE>>

PERFORMANCE MEASURE 2002–2003 2003–2004 2004–2005 2005–2006 QUALITATIVE Essential 95% 97% 96% 97% Satisfaction 84% 86% 86% 89% Distinctiveness 81% 84% 87% 90% Completeness (Comprehensiveness) 91% 93% 93% 95% News credibility (Trusted) 93% 95% 94% 96%

QUANTITATIVE WEEKLY REACH CBC Television 16,637,000 16,965,000 16,197,000 16,530,000 CBC Newsworld 6,216,000 5,815,000 6,127,000 6,222,000 Télévision de Radio-Canada (Francophones) 5,100,000 5,162,000 6,134,000 6,230,000 RDI 2,930,000 2,725,000 2,683,000 2,485,000 CBC Radio One 3,072,000 3,022,000 3,136,000 2,729,000 CBC Radio 2 1,249,000 1,163,000 1,181,000 1,156,000 Première Chaîne 833,000 924,000 976,000 997,000 Espace musique 303,000 313,000 429,000 429,000 SHARE CBC Television (Prime time) 7.4% 8.9% 6.7% 7.9% CBC Newsworld 1.1% 1.1% 1.1% 1.0% Télévision de Radio-Canada (Prime time) 17.6% 16% 21.1% 19.7% RDI 2.6% 2.3% 2.9% 2.5% CBC Radio One 9.1% 8.5% 9.1% 7.3% CBC Radio 2 3.5% 3.3% 3.2% 3.4% Première Chaîne 10.7% 12.9% 13.1% 13.1% Espace musique 2.3% 2.3% 3.0% 2.8% CANADIAN CONTENT CBC Television (Prime time) 84% 86% 67% 80% CBC Newsworld 90% 90% 90% 89% Télévision de Radio-Canada (Prime time) 86% 88% 85% 88% RDI 97% 95% 90% 90% CBC Radio 100% 100% 100% 100% Radio de Radio-Canada 100% 100% 100% 100% NUMBER OF AWARDS CBC Television - - 200 279 Télévision de Radio-Canada - - 55 28 CBC Radio - - 85 78 Radio de Radio-Canada - - 18 7 New Media - - - 16

Notes Prime time = 7:00 p.m.–11:00 p.m. when the largest television audience is available. TV ratings data based on September to August period. Cancon and shares for CBC Television and Télévision de Radio-Canada are for prime time. Radio ratings data based on an average of Fall and Spring sweeps. Télévision de Radio-Canada ratings data based on different methodologies: BBM’s Picture Matching Technology for 2001–2002 to 2003–2004 BBM’s Personal People Meters as of 2004–2005.

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TARGETS AND RESULTS OF MAIN TELEVISION AND RADIO NETWORKS>>

CBC TELEVISION’S PERFORMANCE MEASURES

PERFORMANCE PERFORMANCE BASE/TARGET RESULTS BASE/TARGET INDICATORS MEASURES 2006–2007 2006–2007 2007–2008

PUBLIC VALUE Differentiation Maintain ratio Achieved1 Maintain ratio Public perception Increase top Achieved2 All programs box score from > 60% in top 3 36% to 42%2 box score Acclaim B+ or better Discontinued Measure in 2006–2007 dropped

AUDIENCE CBC Television prime-time share, 8.5% 7.4%3 8.0% regular season

REVENUE Main networks’ commercial $210 million $205 million $212 million advertising revenues, April–March

COST Total budget with allocations, $517.5 million Achieved4 $512.8 million April–March

1 Based on percentage of titles. 2 Results reflect a change of methodology used to gather this indicator. Almost 2/3 of titles given top marks. 3 Target of 8.5% was premised on larger draw from the Canadian Television Fund (CTF), which did not occur. 4 The original target was increased subsequently with further budget releases to $522.4 million. Actual final costs are $522.3 million.

47 APPENDIX E>>

CBC RADIO’S PERFORMANCE MEASURES

PERFORMANCE PERFORMANCE BASE/TARGET RESULTS BASE/TARGET INDICATORS MEASURES 2006–2007 2006–2007 2007–2008

HIGH LEVELS OF FIATS results for CBC Radio One1: LISTENER SATISFACTION Satisfaction 67% 59% 67% Essential 85% 83% 85% Distinctive 77% Discontinued N/A in 2006–2007 Relevant 58% 60% 58% Regionally reflective 76% 64% 76% Ethnically/culturally diverse 65% 64% 65%

NATIONAL REACH Reach 3.8 million 3.8 million 3.8 million AND SHARE2 Share 12.2% 13% 12.2%

RECOGNITION FOR Number of national or PROGRAM EXCELLENCE international awards 100 121 100

LOCAL SERVICE EXTENDED Number of service extensions into N/A See note3 Same INTO UNSERVED MAJOR markets with >100,000 population RADIO MARKETS

1 Core listeners top three boxes, fully integrated attitudinal tracking survey (FIATS) Fall 2006. 2 BBM Fall 2006 Survey. 3 Service extensions into underserved markets is a significant long-term goal for CBC Radio. While resources did not permit any such extensions during 2006–2007, this goal remains an important strategic objective for the Radio service.

PAGE 48 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012 APPENDIX E>>

TÉLÉVISION DE RADIO-CANADA’S PERFORMANCE MEASURES

PERFORMANCE BASE/TARGET RESULTS BASE/TARGET INDICATORS 2006–2007 2006–2007 2007–2008

AUDIENCE INDICATORS

OVERALL APPRECIATION OF PROGRAMMING BY VIEWERS 6.7 6.6 6.7

“On a scale of 0 to 10, what score would you Base 2004–2005 give to the programming of Radio-Canada?”

COMBINED AUDIENCE SHARE FOR Between Between TÉLÉVISION DE RADIO-CANADA AND RDI 15% and 20% 15.9% 15% and 20% At least 14% for At least 13% for Télévision de Radio-Canada 13.50% Télévision de Radio-Canada

FINANCIAL INDICATORS

PERCENTAGE OF FINANCIAL RESOURCES 82% 80% 80% INVESTED IN PROGRAMMING Base 2004–2005

MEET ADVERTISING REVENUE TARGET, MAIN NETWORK ONLY $110 million $107.2 million $108 million

MAINTAIN THE CTF ENVELOPE RESERVED FOR About $23 million $25.2 million $25.2 million RADIO-CANADA AT THE LEVEL OF PREVIOUS YEARS (base 2005–2006)

REGIONAL REFLECTION AND DIVERSITY INDICATORS

WEEKLY HOURS AVERAGED ANNUALLY – 7 hours 7.8 7 hours REGIONAL PROGRAMS FOR THE NETWORK

INCREASE THE NUMBER AND RETENTION RATE OF EMPLOYEES 1.4% 1.6% 1.4% FROM VISIBLE MINORITIES, NETWORK AND REGIONS Base 2004

HUMAN RESOURCES INDICATORS

PERFORMANCE EVALUATIONS FOR ALL EMPLOYEES, 100% of Close to Between TIEING PERFORMANCE TO OBJECTIVES employees 100% 90 and 100%

49 APPENDIX E>>

RADIO DE RADIO-CANADA’S PERFORMANCE MEASURES

BASE/TARGET RESULTS BASE/TARGET PERFORMANCE INDICATORS 2006–2007 2006–2007 2007–2008

MAINTAIN AN OPTIMAL LEVEL OF LISTENING Between 15.2%1 Between Combined audience share of 14% and 16% 16.7%2 14% and 16% Première Chaîne and Espace musique

PURSUE OUR COMMITMENT TO CANADIAN MUSICIANS 350 310 300 Recording of concerts and shows Base 2004–2005

REGIONAL INVESTMENT 45% 50% 45% Maintain our level of investment in regional production Base 2004–2005

EVALUATION OF THE PERFORMANCE OF ALL EMPLOYEES, 100% of Close to Between TIEING PERFORMANCE TO OBJECTIVES employees 100% 90 and 100%

1 BBM Fall 2006 Survey. 2 BBM Spring 2007 Survey.

BC1-3/2007 978-0-662-69955-2

Publication and Distribution

Corporate Communications CBC | Radio-Canada 181 Queen Street PO Box 3220, Station C Ottawa, Ontario K1Y 1E4 613-288-6000 [email protected] CBC.Radio-Canada.ca

Design: Utopia Communications

PAGE 50 | WHAT’S NEXT?>> CBC | RADIO-CANADA CORPORATE PLAN SUMMARY 2007–2008 | 2011–2012