Thursday, October 11, 2012

CBC Music losing millions as content costs surpass revenue

The CBC. will lose millions of dollars a year on its free music service for the foreseeable future, as the high cost of content surpasses the advertising revenue the service earns.
CBC Music was launched in February just as the broadcaster was bracing for deep budget cuts that would lead to the loss of 650 jobs and prompt the CBC to request permission to sell advertising on its Radio 2 service.
Private companies who charge for digital music services have complained about the CBC’s encroachment, arguing the public broadcaster uses taxpayer money to run a service that will put them out of business.
The stakes are high: Canadians spend about $500-million a year on music and digital sales account for about 34 per cent of the market.

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