Corus Entertainment is leaning into its digital strategy to bring back advertisers as it continues to report revenue losses in linear.

In a call with investors on April 12, president and CEO Doug Murphy said he predicts digital marketing is “at a tipping point because there’s so much ad-supported inventory that’s not being monetized.”

The company highlighted its “video first” strategy in its Q2 2024 financial results, which promotes the use of Pluto TV and Global News FAST channels, subscriber-based platforms StackTV and Teletoon+, and the ad-supported Global streaming platform.

While Corus reported a 5% year-over-year decrease in TV subscriber revenues, coming to $117.3 million from $124 million in the prior Q2, the loss was attributed to reductions in linear subscriptions outpacing gains in digital subscriptions.

The broadcaster’s consolidated revenues for the quarter fell 13% to $299.5 million compared to $343.9 million in Q2 2023.

The revenue losses were largely due to a decline in TV revenue in the quarter, which fell 14% to $278.1 million, including a 12% reduction in advertising spend at $148.9 million. The company did report an increase in viewership on Global, thanks to the return of franchises such as NCIS and FBI, the dramas CSI: Vegas and 9-1-1, and Big Brother Canada (pictured).

Murphy warned investors to not expect a heavy flow of programming from U.S. networks in the fall, stating that their financial outlook is “similar, if not worse than Canada” due to impacts from the writers and actors strikes last spring and summer.

“I don’t think they want to over-deliver and overproduce, that’s certainly the message we’re seeing,” said Murphy, adding that members of the Corus programming team were in L.A. last week to preview possible acquisitions for the next broadcasting year. He said Corus is aiming to be smart with its programming strategy to maintain a large volume of simulcasts with U.S. networks.

Murphy also emphasized the ongoing regulatory burden on broadcasters as Corus awaits a number of decisions from the CRTC, including a possible amendment to its broadcasting licence and the CRTC’s decision on initial base contributions under Bill C-11.

He said Corus is working with the Canadian Association of Broadcasters to “apply as much pressure as we can” in Ottawa to emphasize the need for regulatory relief. He added that Corus’ obligations are “increasingly punitive,” including the requirement to spend production dollars on drama, rather than invest those dollars into news.

With files from Media in Canada

Image courtesy of Global