HomeCanadian PerspectivesOP-ED: The Public Broadcaster Built the...

OP-ED: The Public Broadcaster Built the Local Digital Infrastructure. Private Radio Watched.

I came across a thread on LinkedIn recently from someone in Canadian media, frustrated, making the case that CBC was crowding out local stations in search results. I can’t find the post now, but the comment section told me everything I needed to know: people in the industry recognized the pattern, had their own versions of it, and were mostly framing it the same way.

That CBC is capturing local search.

Local stations in mid-sized markets are watching their digital audiences erode and tracing at least part of it to CBC News expanding into their backyard, including Red Deer and Medicine Hat – communities that already had newspapers, private TV stations, and radio.

The complaint is understandable, however the diagnosis is wrong.

CBC is not taking something that belonged to private radio. CBC is building local digital infrastructure with public money, at a pace and scale private radio cannot match and capturing the intent that private radio had a decade to own and didn’t.

That’s a different problem. And it has a different set of culprits.

How we got here

The CRTC approved Google’s plan to compensate Canadian news organizations under the Online News Act to the tune of $100 million a year for five years. CBC’s share is capped at seven per cent, split between French and English services.

With that money, CBC hired up to 30 new permanent journalists across 22 communities. Nine of those communities are on the Prairies. It expanded to 77 local bureaus total.

Critics – including the Canadian Association of Broadcasters (CAB) – called this unfair. The CBC employs roughly one in three working Canadian journalists. The new funding pushes that ratio closer to 37%. Private radio and TV journalists were not eligible for the equivalent journalism tax credits available to newspaper publishers. The CAB lobbied for parity. They got $38.4 million over three years for a separate fund. The structural imbalance stayed intact.

All of that is true and none of it is the actual problem.

The actual problem

Bauer Media built Rayo. Global built DAX. Townsquare built a programmatic platform on top of 400 local news and entertainment websites it owns outright. All of them are private commercial broadcasters. All of them looked at the structural shift in local media and made an infrastructure decision.

Canadian private radio looked at the same shift and made a distribution decision. Push existing broadcast content through platforms it doesn’t own. Build websites. Run digital inventory through ad networks it doesn’t control. Call it a digital strategy.

The result is that when CBC News showed up with 30 journalists and a mandate to cover local communities, it wasn’t arriving into a contested digital market. It was arriving into a vacancy.

Private radio had the audience relationships. It had the local advertiser relationships. It had years of regulatory protection that generated cash flow that could have been reinvested into owned digital infrastructure. In most mid-sized markets, it had no serious digital competition for local content.

It chose not to build.

What ‘capturing local search’ actually means

When a CBC journalist in Red Deer publishes a story about city council, that story gets indexed. It gets found. It appears in search results for queries about Red Deer news, Red Deer weather, Red Deer local events.

If a local private radio station has a news website that publishes the same story – same topic, same community – it competes for the same queries. That competition is real. In many markets, CBC is winning it because CBC has more journalists, a stronger domain, and more content.

But here’s what the framing of capture obscures: search traffic isn’t a fixed pool being extracted from private radio, it’s a share of intent. People in Red Deer are searching for local news. Someone will capture that intent. If private radio had built the infrastructure – the content, the data, the audience relationship – it would own it. It didn’t. CBC did.

Calling that capture is accurate. Calling it unfair requires ignoring who left the door open.

Who made this outcome possible? Three parties:

Private radio ownership groups. The consolidation wave of the last two decades prioritized cost reduction and format standardization over local digital investment. Local programming got stripped. Local news shrank. The argument was efficiency. The effect was the liquidation of the audience asset that gave private radio any competitive advantage over a national platform.

The CRTC. The regulatory framework treated local radio as a protected analog business long after the digital shift had begun. When it did move amid licence conditions, Canadian content requirements, and local news commitments, it moved slowly and with enough carve-outs that operators could comply without meaningfully investing in local digital capability. Regulatory protection without investment incentives is a subsidy for stasis.

The Online Streaming Act and its implementation. The legislation correctly identified that streaming platforms owe contributions to Canadian content. It did not create any mechanism to ensure those contributions built infrastructure rather than content. Money flowed to production. The stack stayed foreign-owned.

The CBC question

None of this means CBC’s local expansion is unambiguously good policy.

The legitimate concern is substitution. If public money flows to CBC to fill a local news gap and that flow crowds out any remaining commercial incentive for private radio to fill the gap itself, then Canada has permanently outsourced local digital infrastructure to a public institution.

That creates its own dependency. A future government changes CBC’s mandate, its funding, its editorial direction and the local digital infrastructure goes with it. Private radio, having exited the market, cannot re-enter at competitive cost.

The risk isn’t that CBC is too powerful now. The risk is that Canada ends up with local digital media that is structurally dependent on parliamentary appropriation and ministerial goodwill. That is a different kind of fragility than advertising dependency, but it is still fragility.

What would actually change anything?

The complaint about CBC capturing local search is a symptom. The underlying condition is that Canadian private radio has not built the infrastructure to compete digitally in its own markets.

That doesn’t change through regulatory complaints. It changes when ownership groups treat local digital infrastructure as a capital investment rather than an overhead cost. It changes when licence renewals carry real performance requirements on local digital capability, not just broadcast commitments. It changes when the private sector decides to build what it spent a decade watching a public broadcaster build instead.

The positions CBC now holds in local digital search weren’t taken. They were vacated.

Complaining that someone moved in is not a strategy.

James Wallace
James Wallacehttps://momentummediamarketing.com
VP Operations | Momentum Media | A highly sought-after interactive strategist, advisor, and thought leader who is widely known for his programming and interactive design. James spends a significant amount of time researching online technology, AI, streaming and social platforms.

SUBSCRIBE NOW - IT'S FREE!

At Broadcast Dialogue®, we are committed to delivering industry-leading insights, news, and analysis directly to your inbox—completely free of charge.

By providing full / accurate information, you are helping us sustain Broadcast Dialogue® as a free resource. In return, we commit to delivering high-quality content that keeps you informed on the latest trends, technology, and news shaping the broadcast landscape—at no cost to you.

The Weekly Briefing from Broadcast Dialogue® is delivered exclusively to our subscribers by email every Thursday.
Please enable JavaScript in your browser to complete this form.

Your Subscription Information

Your Name
Your Email Address
Broadcast Dialogue uses this information to understand our audience and deliver relevant content.
Broadcast Dialogue uses this information to understand our audience and deliver relevant content.

Your Company Information

A Couple Of Questions

Do you consider yourself retired?
Are you seeking employment opportunities?

Broadcast Dialogue uses this information to understand our audience and deliver relevant content.

Latest News

Sportsnet analyst and former NHL’er John ‘Cheech’ Garrett has passed away

Sportsnet analyst and former NHL goaltender John "Cheech" Garrett has passed away unexpectedly at the age of 74. A colour commentator on Vancouver Canucks regional broadcasts...

Blink49 Studios, Yuk Yuk’s to develop comedy slate

Blink49 Studios has unveiled a new joint venture with Yuk Yuk’s to develop and produce a slate of live and digital comedy projects. Under the...

Freelance Local News Producer (Multiple)

Who we’re looking for: Rogers tv is looking for freelance producers in various markets across Canada. These freelancers will produce short-form community news stories as...

OP-ED: What Canadian Media-Tech Companies Think the Market Still Pays For

NAB Show is full of noise. Product theater. Category inflation. The usual claims about transformation. What makes the Canadian exhibitor list interesting is that it...

The Weekly Briefing

REVOLVING DOOR: Avi Lewis has secured the federal NDP leadership. The veteran broadcaster and filmmaker is arguably best known for his time as host of...