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My question was why do the want to fund private media. If you read the article it says "Critics have said that the CBC is taking ad revenue away from private m

My question was why do the want to fund private media. If you read the article it says "Critics have said that the CBC is taking ad revenue away from private media that are struggling financially." I wasn't asking why taxpayers were funding the CBC, a public company. EDIT: regarding "worst of both worlds", CBC gets to fulfill it's mandate at a cheaper cost with ads.

JamisonM 10y ago
I think there is merit to the argument that the government should do its best to not compete with private industry unless that competition is "fair" and warranted. Given that ad space is currently abundant and declining in value the "not warranted" part is pretty clear and that a public broadcaster need not run at a profit the "fair" part is a pretty good point too. They are not considering "funding" private media so much as no longer undermining it to some (I think small) extent. (I am largely undecided on this point myself.)
anigbrowl 10y ago
But there's no certainty that if CBC goes ad-free the same amount of ad revenue will naturally flow to its competitors. I think you're assuming there's a fixed amount of money in the economy that must go somewhere if CBC stops carrying ads. Consider the possibility that company X advertises on CBC and 3 other private broadcasters. CBC stops showing ads, but it doesn't follow that company X will now increase its ad spend at the other vendors. Now it's true that the privately owned outlets might raise their ad prices a bit now that there are fewer ad slots available across the media as a whole, or they might increase their ratio of advertising to programming - at least up to the point where consumers get sick of hearing so many ads. Anyway, private media outlets might make more money out of this...but then again they might not. It's no sure thing and so it's inaccurate to claim that ad spending will automatically shift towards the remaining market participants.
- appleiigs 10y ago
  We are on the same page I think. The CBC is saying $158mm will go to private media. You say that's inaccurate. I'm saying if it is accurate, taxpayers shouldn't be paying $400mm more for $158mm to go to private media.

JamisonM 10y ago

I think there is merit to the argument that the government should do its best to not compete with private industry unless that competition is "fair" and warranted. Given that ad space is currently abundant and declining in value the "not warranted" part is pretty clear and that a public broadcaster need not run at a profit the "fair" part is a pretty good point too. They are not considering "funding" private media so much as no longer undermining it to some (I think small) extent. (I am largely undecided on this point myself.)

anigbrowl 10y ago

But there's no certainty that if CBC goes ad-free the same amount of ad revenue will naturally flow to its competitors. I think you're assuming there's a fixed amount of money in the economy that must go somewhere if CBC stops carrying ads. Consider the possibility that company X advertises on CBC and 3 other private broadcasters. CBC stops showing ads, but it doesn't follow that company X will now increase its ad spend at the other vendors. Now it's true that the privately owned outlets might raise their ad prices a bit now that there are fewer ad slots available across the media as a whole, or they might increase their ratio of advertising to programming - at least up to the point where consumers get sick of hearing so many ads. Anyway, private media outlets might make more money out of this...but then again they might not. It's no sure thing and so it's inaccurate to claim that ad spending will automatically shift towards the remaining market participants.

appleiigs 10y ago
We are on the same page I think. The CBC is saying $158mm will go to private media. You say that's inaccurate. I'm saying if it is accurate, taxpayers shouldn't be paying $400mm more for $158mm to go to private media.