CEO notes the challenges in the sector are felt worldwide
Corus Entertainment’s CEO Doug Murphy provided insights into the ongoing challenges faced by the Canadian media sector during an interview with BNN Bloomberg. As viewer preferences evolve and advertiser demand wanes, the Toronto-based company is grappling with a tough economic environment.
According to Murphy, Corus is transitioning from a traditional television broadcaster to a multi-platform aggregator of premium video content, a strategy dubbed “video first.” Despite these efforts to adapt and recapture its audience, the response from advertisers has not met expectations.
“We have made great progress in what we describe as our ‘video first’ strategy,” Murphy told BNN Bloomberg. “[It’s] off to the races on an audience perspective – the challenge is demand.”
Murphy noted the broader media industry worldwide is facing similar hurdles, with traditional broadcasters delivering larger audiences than advertisers are currently willing to purchase. “It’s not just at Corus, in fact, it’s a worldwide thing,” he explained.
Murphy remains optimistic that the situation will improve, though he acknowledges the current challenges. “We think that is going to change, but at the moment, that’s the picture we’re looking at,” he said.
Media companies facing a challenging environment
This discussion follows the release of Corus’s quarterly financial results, which revealed a $9.8 million loss for the second quarter, a 13% decline in revenue. The company anticipates a further 10% to 15% drop in television advertising revenue for the third quarter. In response to these figures, Corus’s stock plummeted as much as 21% in midday trading.
Despite the disappointing earnings, the loss marked an improvement from the $15.5 million deficit reported a year earlier. Murphy credited this to effective cost-cutting measures and enhanced cash flow management, which have helped reduce the company’s debt.
However, Murphy emphasized the need for continued efficiency improvements. “Absent a meaningful revenue recovery, all of us need to find ways to offset those declines, and frankly speaking, it’s an opportunity for us to get refocused,” he remarked.
As part of its strategy to streamline operations and rationalize its asset base, Corus committed to ensuring all efforts align with its “video first” approach. “So if video first is the audience strategy, our cost strategy we call ‘fit for the future,’ and that’s about streamlining our operating model... if it’s not in service of video first, then why are we doing it?” Murphy said.
