Thursday, June 16, 2011
CBC prepares to defend its finances
From the National Post story:
The CBC on Wednesday released a study on the economic impacts of the CBC (and its French-language counterpart, Radio-Canada). In what will not come as a shock to anyone, the study the CBC commissioned found that the CBC has a significant positive impact on the Canadian economy.
Deloitte & Touche, the study's authors, estimate that the CBC contributed $3.7-billion in "gross value added" to the Canadian economy in 2010, based on expenses of $1.7-billion, of which $1.1-billion was direct government funding. The good news goes even further: the study estimates that the CBC contributes an additional "net value added" of $1.3-billion, a figure at which it arrives by estimating the economic benefits of spending the CBC's $1.1-billion on alternative government measures. Ten per cent on health, 30% on social services, 0.2% on gazebos in Muskoka, that kind of thing.
The general conclusions are fairly obvious -not only does every dollar invested in the CBC generate significant positive dollars worth of economic activity, but spending it elsewhere would have less of an impact.
But the author, Scott Stinson, notes:
These takeaways, though, come with a couple of boulders of salt. First is the very nature of a study like this. The economic impacts are essentially an elaborate piece of guesswork that measures both the direct impact of investment and the indirect impact "across CBC's supply chain and more widely as money continues to flow through the economy."
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