Quebecor is at the heart of an tremor that is shaking the entire Quebec landscape.
According to our information, Pierre-Karl Péladeau, president and CEO of the media empire, would have paid the astronomical sum of 25 million dollars to acquire QUB Radio on the FM band, via 99.5 FM .
While this risky move was supposed to revitalize Quebecor’s radio sector, it quickly turned into a disaster.
The catastrophic ratings revealed by Numeris, combined with scathing criticism from its rivals and a CRTC investigation, plunge the company into a crisis that could well redefine its future.
This twist reveals not only the strategic flaws of Quebecor, but also the growing financial difficulties of an empire once perceived as infallible.
Péladeau, accustomed to bold bets, could this time have bet too big, at the risk of losing more than a radio station.
The CEO of Quebecor has always been a daring businessman, ready to take risks to consolidate his media empire.
But his latest move, the purchase of QUB Radio for a staggering $25 million, appears to have plunged his business into an unprecedented crisis.
What was supposed to be a strategic operation to expand QUB Radio’s audience quickly became a media bomb that threatens to shake the very foundations of Quebecor.
In attempting to circumvent the CRTC’s strict rules, Péladeau orchestrated a controversial partnership with Leclerc Communication to migrate QUB Radio to the FM band, via the 99.5 FM frequency.
Officially, Leclerc remains the owner of the station, but the programming is entirely controlled by Quebecor, a stratagem that borders on illegality according to its rivals, Bell and Cogeco.
The latter also contacted the CRTC, denouncing a violation of the rules which prohibit the excessive concentration of media in the same market.
The biggest problem with this purchase is QUB Radio’s poor performance.
Despite an already well-established digital platform, its ratings on 99.5 FM are simply horrible.
The most recent figures from Numeris reveal that QUB Radio is struggling to attract a significant audience, even in its new hybrid digital-FM format.
The data is clear: QUB Radio lags far behind its direct competitors.
Even music stations like Rythme FM or CKOI, whose audience has been declining in recent years, largely outperform QUB Radio.
Even Radio Circulation attracts more people.
The programming, although focused on recognized media figures like Mario Dumont, Richard Martineau, and Sophie Durocher, failed to attract an audience accustomed to more diverse and impactful content.
Mario Dumont, the big star, was not even able to gain two market shares. For Richard Martineau, we are talking about barely a market share. Total shame.
Many listeners complain that the same topics and opinions are recycled from one show to another. This lack of diversity in content quickly disgusted a demanding audience.
Persistent technical issues: Upon launch, listeners noted sound quality issues, particularly for remotely connected guests.
These technical flaws gave the impression of a student radio station, as if the 25 million had been thrown in the trash to buy the antenna.
Unlike 98.5 FM, which offers a balanced mix of news, debate, and entertainment, QUB Radio has locked itself into a niche of polarizing opinions.
This disgusted a significant portion of the Montreal audience, particularly young adults.
Even the shows hosted by renowned media figures did not succeed in doing well:
Mario Dumont, although considered one of the most respected political figures, was “shocked”.
Richard Martineau, although he generates attention on social networks, does not transform this popularity into a radio audience.
Sophie Durocher, who wants to be bad-mouthed and provocative, interests no one.
In terms of return on investment, advertisers are hesitant to partner with a station with such a low audience.
Advertising, the main source of revenue for radio, does not generate the expected amounts. In comparison, giants like 98.5 FM capture the majority of advertising budgets, leaving crumbs for QUB Radio.
Numeris’ results also sparked a wave of criticism on social media. Many observers point to the lack of innovation and Quebecor’s inability to understand the needs of the Montreal public.
Words are sometimes hard:
“QUB Radio is the equivalent of community TV on FM waves”, launched an Internet user.
“How can we invest 25 million to not even compete with Radio Circulation”asks another.
With ratings this low, it becomes increasingly difficult to justify such an investment. Even if the CRTC authorized the continuation of retransmission on 99.5 FM, the current audience is not enough to make the operation profitable.
For Quebecor, this failure is not just a question of numbers. This is an attack on his image as a leader in the Quebec media.
If nothing changes, QUB Radio could well become the symbol of the decline of a once glorious empire.
Shows like those of Mario Dumont, Sophie Durocher and Richard Martineau have failed to compete with heavyweights like Cogeco’s 98.5 FM, which continues to dominate the Montreal market.
Péladeau’s ambition was clear: use FM to strengthen the visibility of QUB Radio and attract a wider audience.
But in practice, the transition was poorly executed, with recurring technical problems and redundant programming that quickly bored listeners.
The investment of $25 million for the acquisition and migration of QUB Radio to FM raises questions about Quebecor’s financial management.
While TVA Sports has accumulated nearly $300 million in losses since its creation, this massive purchase seems inappropriate.
The business logic behind this decision is called into question, especially when we consider that QUB Radio’s advertising revenues have not kept pace with expected growth.
In addition to its financial challenges, Quebecor has come under fire for its growing media concentration.
With TVA, TVA Sports, the Journal de Montréal, and now QUB Radio on the FM band, Quebecor controls a disproportionate share of Quebec media.
This perceived monopoly fuels fears of a lack of diversity of media voices, a major issue for the CRTC.
Péladeau’s response to the criticism was scathing:
“Bell and Cogeco already hold 95% of the Montreal radio market. Their opposition is a desperate act to maintain their dominance. »
But for observers, this argument is not enough to mask the real structural problems that Quebecor is facing.
The purchase of QUB Radio is not an isolated mistake. It is part of a series of controversial decisions that have weakened Quebecor over the years:
We automatically think of TVA Sports.
Since its creation, the specialty channel has been a financial pit. Plummeting ratings, massive subscriber departures, and astronomical losses have transformed TVA Sports into a liability for Quebecor.
Without forgetting the dream of the Nordics. Péladeau never succeeded in bringing an NHL team to Quebec, a symbolic failure which tarnished his reputation.
Without forgetting the Journal de Montréal. Criticized for its sensationalist turn, the daily newspaper is losing its appeal among traditional readers.
Despite its ambitions, Quebecor is showing worrying signs of decline. Its digital and hybrid strategies, while innovative, are struggling to offset colossal losses in its traditional media divisions.
The acquisition of QUB Radio, far from being a success, further exposes the weaknesses of its business model, especially since the price paid was revealed by our source.
Meanwhile, its rivals, like Cogeco and Bell, continue to grow. 98.5 FM dominates the Montreal market with unrivaled market shares.
While TVA Sports struggles to attract 20,000 viewers for its flagship shows, RDS continues to consolidate its position with strategic partnerships in the sponsorship market.
The fate of QUB Radio now rests in the hands of the CRTC.
If the organization decides to intervene, it could force Quebecor to abandon its FM frequency, inflicting a blow to its radio ambitions.
But even if the CRTC validates this acquisition, it remains to be proven that QUB Radio can become a viable player on the FM band.
Nothing is less certain. At the moment, we are indeed talking about $25 million going up in smoke.
For the moment, Péladeau continues to defend his project with all his emotion.
The same emotion that he defended the Videotron Center project, paid for by taxpayers…to house a junior team…
Behind the scenes, murmurs about financial difficulties and strategic errors are growing louder.
With each setback, Quebecor’s media empire loses a little more of its former luster.
The purchase of QUB Radio, instead of being a victory, seems to become a costly mistake for Pierre-Karl Péladeau. Between criticism from the CRTC, low ratings, and ongoing financial challenges from its other divisions, Quebecor’s future seems more uncertain than ever.
Péladeau has built his career on daring bets, but this one could well be the one that costs him the most.
And while rivals like Bell and Cogeco prosper, Quebecor, once an unshakable giant, is dangerously collapsing.
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