Marketing – Strategy – Pricing – Competition
Tuesday July 22nd 2014

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All of your Eggs in One Basket

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CBC has committed a strategic blunder.  Actually the blunder happened many years ago when they got complacent relying heavily on sports, hockey specifically, for the bulk of their money and viewers.  Today they paid the price.  The national post does a good job of summarizing.    Rogers bought the rights to NHL hockey for the next twelve years and basically took CBCs money maker away.  This type of nightmare can happen to any complacent organization that thinks it is invincible as the CBC has been acting for years.

The CBC, as a taxpayer funded broadcaster, has a mandate to provide the type of programming that the private sector will not.  Here is the type that I am thinking of… documentaries, unique regional coverage, investigative journalism, the arts, science programming.  Instead the public broadcaster paid the price.  With the loss of hockey they will have a gaping hole in the programming and in their revenues.  They will also lose the platform to cross promote their other offerings such as news, drama and their radio stations.

They went wrong by putting so much effort into sports broadcasting in which they have no competitive advantage and are in fact disadvantaged by their inability to always have the highest bid for the programming rights.  It was also viewed as a must have by commercial broadcasters.

CBC got crunched and may not recover if the federal government decides to pull further funding.


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