The biggest broadcasters face tough times to stay on the air
The rumors have been confirmed. Record kicked off a wave of layoffs. Among the video journalists, Janine Borba, Patrícia Costa and Roberto Thomé were sacked.
In a statement, the channel says it is going through a “period of reformulation”. There was the false impression that Bishop Edir Macedo’s TV would survive unscathed by the financial turmoil affecting other broadcasters.
Since he was the head of the Universal Church of the Kingdom of God, it was thought that the rent of time slots from the religious body would be enough to make ends meet or, ultimately, the channel would be helped by the income from the offerings of the faithful .
What we see now is that Record is forced to restructure itself to ensure the survival of the business, just like Globo, SBT, Band and RedeTV do. Brazil’s broadcasting elite makes sacrifices to overcome economic challenges.
These networks have made substantial revenues from the sale of slot space and programming-related products, such as subscriptions to their streams. The worst problem is the inexorable increase in costs of operations. It’s getting more and more expensive to keep TVs on the air.
Globo, for example, made revenues of BRL 15.1 billion in 2022, its best result in several years. Despite this, it recorded a loss of R$ 41 million considering the payment of interest, taxes and other financial obligations. That is, the money comes in, but the bill is so high that it makes profit impossible.
Faced with the need to reduce expenses to return or remain profitable, broadcasters are forced to give up talent. In the TV owned by the Marinho family, the option was not to renew the contracts of hundreds of actors and fire veteran journalists with high salaries.
Commenting on the layoffs of the last few days, Record stated that “the layoffs were necessary, but above all with respect to the human being, to the laws and labor rules”. In June, the biggest cuts were made to the Band, shaken by the end of Fausto Silva’s programme.
Even if they suffer from lower profits or losses, the country’s five largest broadcasters are not at risk of default or bankruptcy. Most of them have bank reserves and investments.
The expectation is that 2023 will still be challenging, but better than last year, marked by uncertainties related to the presidential elections and the future of economic policy.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
