Federal departments and agencies continued to spend millions on CBC advertising, while private sponsors abandoned the network, according to government records. .According to Blacklock’s Reporter, the network experienced a 25% decline in English television ad sales due to the loss of Hockey Night in Canada licensing..During an Inquiry of Ministry tabled in the Commons, the Cabinet revealed that federal sponsors had spent $15.8 million on CBC ads since 2019..Conservative MP Tracy Gray (Kelowna-Lake Country, BC) requested the figures, who asked “How much did each department, agency or other government entity spend on advertising with the CBC?”.The largest CBC sponsors were the Business Development Bank ($4.9 million), department of Health ($1.6 million), VIA Rail ($1.3 million), Farm Credit Canada ($1.2 million), department of Employment ($945,000) and the Royal Canadian Mint ($919,000). Government ad revenues were in addition to a $1.3 billion annual parliamentary grant, the network’s largest revenue source..Since 2014, CBC-TV English advertising revenues have experienced a decline due to the loss of its exclusive licensing rights to NHL hockey, which Rogers Communications acquired. That ended CBC’s 65-year monopoly on NHL hockey game licensing..According to CBC financial statements, English TV ad revenues at the time were $344 million and last year's revenues were down 25% to $248 million..At that time, CBC management denied that the loss of hockey rights would cost the network much money..“We lost a few dollars,” then-president Hubert Lacroix testified at 2015 hearings of the Senate Communications committee..“When you look at the broadcasting rights and the cost to produce hockey, and the revenues on the other side, and when you look at it over six years, we didn’t make money on this contract,” testified Lacroix..“If you can’t make money on hockey in Canada, I don’t know what you could make money on,” replied Sen. Michael MacDonald (NS). .“This was very poor management.”.In 2016, Lacroix proposed the network ban commercial advertising altogether in exchange for a $400 million annual increase in its parliamentary grant. .“You would have an ad-free environment,” said Lacroix..Following a failed attempt to sell advertising on CBC Radio, television ad sales experienced a significant decline. .In 2013, management successfully convinced regulators to lift a radio ad ban in place since 1975. .CBC had predicted annual sponsorships worth up to $24 million, but the actual sales amounted to only $1.4 million annually..“It’s like they live in a fantasy world,” Elmer Hildebrand, CEO of Golden West Broadcasting, said in an interview at the time. .“Why would they expect a lot of advertisers?”.“It was all an illusion,” said Hildebrand. .“The CBC wants to be all things to all people. I think they are irrelevant.”
