Canada’s broadcasting regulator, the CRTC, has granted Corus Entertainment Inc.’s request to ease some of its Canadian content spending requirements in response to the company’s financial struggles. The regulator approved Corus’ plea to lower its obligated spending on programs of national interest for its English-language stations to five per cent of revenue from 8.5 per cent. The decision also included an extension of a repayment deadline for under-expenditures of Canadian programming requirements. The broadcaster made the request for regulatory relief last October, citing financial constraints due to programming and advertising uncertainty.
The CRTC emphasized that the overall amount Corus must spend on Canadian programming has not changed, but the company now has more flexibility in choosing the type of Canadian programming to invest in while continuing to support news programming. The extension of the repayment deadline for under-expenditures of Canadian programming requirements will help Corus navigate revenue volatility. Under the rules set by the CRTC, Corus has been able to underspend on Canadian programming by up to 10 per cent of the minimum requirements in a given year, as long as it makes up the difference the following year. However, this clause did not apply to the final year of its license term, which expires in August 2026.
In a statement, Corus President and CEO Doug Murphy expressed appreciation for the CRTC’s decision, calling it the most substantive regulatory change the company has seen in years. He emphasized the importance of the decision as a first step towards broader changes to the regulatory regime that he believes are long overdue. Murphy highlighted the urgency of the situation for Corus and the industry, given the financial challenges faced by the company, including advertising revenue declines and rising programming costs due to inflation.
The CRTC also mentioned that requests from other broadcasters for regulatory relief will be considered as part of its ongoing plan to modernize the Canadian broadcasting framework. The commission acknowledged the changing landscape of the broadcasting industry and the additional pressures faced by broadcasters to meet their obligations. A letter attached to the decision, addressed to executives from various companies, outlined the commission’s intention to incorporate the applications for regulatory relief into upcoming proceedings to implement the amended Broadcasting Act.
The decision by the CRTC follows its three-phase plan to modernize national broadcasting regulations in response to Bill C-11, the Online Streaming Act, which aims to update the Broadcasting Act to require digital platforms to contribute and promote Canadian content. The CRTC’s decision includes requirements for both traditional broadcasters and online streaming services to pay annual fees, which took effect last month. The second phase of the plan is expected to last through 2026, with a focus on further modernizing regulations and addressing the evolving broadcasting landscape in Canada.
