When Jay Switzer was a teenager in the early 1970s, he had his first exposure to broadcasting, manning the switchboard on weekends and evenings at the original CITY-TV in Toronto, a station co-founded by his mother, Phyllis Switzer.
That was more than three decades ago, but even way back then Switzer knew he was destined to follow his mother's career path in the media. Since then, Switzer has lived and breathed the broadcasting business, and you'd be hard-pressed to find a broadcasting executive more tuned into the pulse of the business than the Calgary native.
Switzer's broadcasting career has been on a fast track since he joined CHUM Ltd. in 1984, and reached its pinnacle three years ago when the one-time switchboard operator was appointed president and CEO. It hasn't taken long for Switzer to put his stamp on CHUM's operations, as he orchestrated last year's major takeover of Craig Media that bolstered the company's foothold in the television market.
Yet, to Switzer, it's much more than a job. It's his life's passion.
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| Ken Kerr, Business Edge |
| CEO Jay Switzer presides over a varied array of broadcasting holdings from the Toronto offices of CHUM Ltd. |
1. Reflecting on your boyhood years, did you have any dreams involving the broadcasting industry?
"My father worked on the technology side as an engineer and my mother was a journalist, working as an editor at the Lethbridge Herald. I was always torn between the technology side of the business and the content side. I'm quite privileged and fortunate to have fallen into the privileged situation here of helping our company connect with millions of listeners and viewers across the country."
2. Who has had the biggest influence on your career in media?
"My mother Phyllis (a co-founder of CHUM-owned CITY-TV), who passed away in 1989. She was the managing director of the 1988 Calgary Olympics. She was born in Calgary, so coming back to Calgary to run the Olympics in 1988 was a very big deal for CTV, and for her. She was a broadcaster as well as a print journalist, and she taught me an awful lot. Every time I go to an awards dinner or something, there is someone coming up to me and telling me a wonderful story about how she influenced or assisted them in their life."
3. What are your recollections of your early experience as a teenager in the TV business?
"After my family moved to Toronto, I got a job at CITY-TV as a switchboard operator while I was still in high school. They thought that they would keep the switchboard open late at night. They had some baby blue movies, with the occasional glimpse of a woman's bum or breast or something, and it was all very scandalous. Since this was very progressive for the '70s, rather than put a female switchboard operator through what they thought would be some difficult calls, they decided to hire a male switchboard operator.
So that was my job as a teenager, working Friday nights and weekends on the switchboard at the original CITY-TV."
4. You started at CHUM in 1984. What do you remember about those early years?
"It (the culture) was much like I see in radio today. It was a small group of people making a difference and taking gambles every day. It was electric and connected to the community. You heard back right away if you succeeded, I guess much like you would when getting feedback on your stories. Today, with much bigger stations, it's harder to keep as closely connected to viewers on the front line."
5. CHUM has grown substantially in recent years, particularly with the acquisition last year of Craig Media. Are you still hungry for more of the same expansion?
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| Jay Switzer has come a long way since manning the switchboard. |
"Not on the TV side. On the radio side, we have some room to grow. In some cases, it (growth) will be from launching new stations. Our job on the TV side is not to grow much more. We've been able to do that quite successfully. Now, we have to make it work better. TV is a business of scale and of critical mass, and your costs are in many ways fixed. Now that we're a little bit larger, we can spread those (costs) among more stations. Our margins and performance in conventional TV in the past 10 years have been below average and this, to a great extent, is because of our size. Now that we have grown, we have to make it work. Of course, on the cable channel and the specialty channel side, it is a very good time for us. We operate in three areas: The cable channels - or specialty channels, if you will - conventional TV and radio. Specialty channels and radio are very strong. Our conventional TV stations across the country are not yet strong, so we don't need to grow anymore, we just need to make them work better."
6. What do you need to do these days to captivate the TV audience with so many people in love with their remote controls?
"I think you have to have strong connections to the community. You have to have strong local productions that truly reflect on the communities and (productions) that are what the viewers want. You have to treat your viewers with integrity and not preach to them. And you have to reflect the modern diversity of most communities in Canada. You can't ever abuse that relationship. If you want them to invite you into their homes every day, you'd better appreciate the privilege of entertaining and serving them. If your whole business is about importing American sitcoms, they will be able to get that anywhere, anyplace and anytime, so that doesn't work well. The connections viewers have with you through their local information shows, their local entertainment shows, their local news shows and their local morning shows is what is going to differentiate success from failure in the future."
7. What is your personal view of TV violence, and how much consideration do you give to its impact on children?
"Well, that's a little bit of a leading question. Let me just answer that within the context of the Americans' huge concern over adult themes, nudity and sexuality on TV. As long as TV sexuality is positive, consensual, life affirming, not gratuitous and at an appropriate hour in the evening, most viewers in Canada are not as much concerned about that as with violence on TV. I think it's strange and unusual that in America, you can watch an axe go through someone's head, but you can't see the back of some man's bum or something. I like living in Canada, where occasionally, with quality, art, an appropriate warning and at a later hour, you can see bits of nudity that are in context, and yet the standards against violence are much tougher. I'm proud of the Canadian system for that. When CFCN in Calgary runs The Sopranos, they run it after nine o'clock, they put warnings on it and they trigger it with a filter. CTV has decided that The Sopranos meets community standards and that there is a population in Calgary that wants to see The Sopranos at nine or 10 o'clock at night. Should it be on at four in the afternoon without warnings? Of course not."
8. What's your long-term vision for the TV side of your business and how do you see the programming evolving over the next 10 years?
"Well, the next 10 years is a long time. Certainly, in the next five years I think viewers will have more choice. Successful TV stations will be those that produce more local content and that do more for their community. These days, any 12-year-old worth his or her salt is able to download their favourite episode of The Simpsons on their hard drive. So, if you are just in the business of bringing The Simpsons to the viewers, that is not going to be a great long-term business. But if you have strong connections through providing information and entertainment that is locally based - whether it is through morning shows, afternoon shows, entertainment shows or newscasts - you'll be able to have an important role in viewers' lives going forward."
9. How is the television advertising market these days, and what do you need to do to improve in that area?
"Television advertising is still strong. It still has the lion's share of total spending. It is a challenging time for local stations because they're hurting at the expense of the cable channels. The cable channels, like Bravo and TSN, are growing much faster. Their advertising business is growing perhaps 10 to 15 per cent a year. The CRTC (Canadian Radio-television and Telecommunications Commission) just released some results showing that across Canada, the local stations' business is only growing by about one per cent a year, costs are growing by about four per cent (annually) and ad revenues are only growing by about one per cent (annually). It's a challenge. Overall, it's still a strong, good time, but certainly the skill of operators and their ability to do a better job reaching viewers, promoting and giving value to advertisers, is going to be tested. And we're up to that challenge."
10. On the radio side, you've got an application with the CRTC for subscription radio service. Can you talk about the potential of subscription radio as opposed to satellite radio (there are also two other applications for satellite radio contracts)?
"We are big believers in a made-in-Canada (radio) solution that serves all the major cities in Canada. This is not a good time for the commission to authorize the ... dumping in of 100 U.S. radio signals into every market in Canada, which have next to no Canadian content. We made our best case (to the CRTC) a few months ago. It's in front of them now, and their decision should come sometime this spring. We partnered with Astral Technologies and together believe we have a great model for subscription radio that can reach viewers who want about 100 channels of commercial-free, high-quality music at their fingertips. It will be for those who want to pay for it, spending about $10 per month."
11. Is there more room for growth in the radio side of your business?
"We think so. It is a great time, particularly on the FM side. The CRTC limits the maximum number of stations that any one operator can own or operate in key markets. We're not at our cap in many of our markets. We still have room for growth. In most markets, Rogers, Corus and Standard (Radio) are at their maximum. In major markets like Calgary, Edmonton, Vancouver and Toronto, we're not yet at our maximum. We've been able to do a fantastic job of improving our financial performance in radio. Our margins in radio, three or four years ago, were as low as 18 per cent and we have been able to consistently raise them over the last two or three years to over 30 per cent."
12. What is your most daunting challenge as CEO of CHUM right now?
"We now have over 3,000 employees, with revenues in the many hundreds of millions of dollars. We're trying to not let our size change the culture. We don't want to let that get in the way of the innovation and the creativity that exists in both radio and television, as we expand and reach our listeners in new ways. I don't want any of our managers or employees to start slowing down just because we are a big company and a lot is at stake. I want us to keep our care for people and that underdog spirit that has driven us for the past 20 years. We're genuinely known as ... one of the best places to work in the business."
13. How would you describe your management style?
"Participatory and inclusive. My nature is essentially consensual. I try to make sure that the best people in the business are leading our units and that we give them the resources they need, and then get out of the way and let them do their job. It's a caring and involved leadership where the whole senior team does work on a hands-on basis. We all live and breathe radio and TV - this is what drives us. Yet, it is quite decentralized, where you empower managers and give them the tools they need because they know what is right for our viewers or listeners."
14. Have you had to make some personal sacrifices to get ahead in this business, or have you managed to keep a pretty good life balance?
"I've kept a pretty good balance. Of course, I'm sure I could spend a little bit more time with my wife (Ellen Dubin). She is a very successful Canadian actress and she spends a lot of time in Vancouver, Calgary and Winnipeg and so on, so I wish we had more time together. But, no, I haven't had to make sacrifices. Every day, you just kind of pinch yourself, and you do your best for all your stakeholders."
15. If you have a difficult business decision, do you discuss it with your wife?
"I can't really talk to her about all the details because we are a publicly traded company, and you just can't do that. Sometimes, being part of the senior team of a public company is a very lonely job."
16. If someone had told you when you joined CHUM 21 years ago that you would still be with the company today and the CEO, what would you have said?
"It's not a plan and it's not an ambition. I am really confident in who we are and what we are doing with CHUM TV and radio stations across the country to really connect with viewers. We want to connect in an honest way that is reflective of the community, that doesn't talk down to, mislead or exploit the listeners and viewers. It has been an adventure every single day, and I am here because I love what we are doing and the team that I have grown up with. The core of our team has been together for close to 15 years. It's a business, but we are also in the living rooms of millions of people, and that has a public service component to it. It sounds a little like a cliché and a little corny, but we're privileged to do what we do, and every day is an adventure. I hope it's never over, but if it ever is, I won't be sorry and I won't get upset. I never thought I would be doing what I am doing now."
17. If you had to trade jobs with one other CEO, with whom would it be?
"I have the best job in the entire country, but I think that I would have more respect for politicians if I spent a day in their shoes. I would trade my job for one day, just to have some appreciation for what Mayor Dave (Bronconnier) in Calgary goes through or what the (Alberta) premier (Ralph Klein) or what the prime minister goes through. Mayor Dave in Calgary is a terrific guy. I had a chance to spend a little bit of time with him a couple of years ago."
18. What would it take for one of your competitors to lure you away from CHUM?
"I'm not here every day to make payments on the mortgage. This isn't about compensation - this is about loving what we're doing. We are privileged at CHUM to have a board of directors that is supportive and a controlling shareholder (chairman Jim Waters) who is understanding of longer-term goals and isn't pressuring us for this week or this month. At most other companies, management doesn't have that luxury. To have a board of directors and a large shareholder that shares your belief that building long-term connections with our listeners and viewers is as important as the profits for this week is a real privilege."
19.What character trait of yours has had the most to do with your success?
"I am a media person. Media is in my blood. I'm not a demanding, screaming, yelling person. I am a collaborative consulting leader who wants to get the best out of people by nurturing and challenging them."
20. How long do you hope to remain the CEO at CHUM?
"I have absolutely no plan - there never was a plan. Our largest shareholders and company executives gave us this opportunity when they passed the baton to us about two years ago. It's an adventure every day and when it stops being an adventure, that will be it. I hope forever."
(Gyle Konotopetz can be reached at gyle@businessedge.ca)
Jay Switzer
* Title: President/CEO, CHUM Limited.
* Born/Raised: Calgary/Lethbridge, Alta., Estevan, Sask.
* Education: University of Western Ontario, Ivey School of Business, MBA.
* Family: Wife Ellen Dubin, actress.
* Career: Switzer has worked for CHUM since 1984 in a broad range of roles, including vice-president of programming for CHUM Television, senior vice-president and president of CHUM Television. In 2002, he was promoted to president and CEO.
* Outside the box: When he isn't watching TV or listening to radio on the seven TVs and four radios in his one-bedroom Toronto apartment, Switzer enjoys attending his wife's theatre performances.
* Favourite childhood program: Batman.
* Tuned in: Switzer sits on the executive of the Canadian Association of Broadcasters and is vice-chairman of that organization's television board.
Chum Ltd.
* Brass: Jay Switzer, president/ CEO; Alan Mayne, chief financial officer; James Waters, chairman.
* Profile: CHUM Ltd. owns and operates 33 radio stations, 12 local TV stations and 21 specialty TV channels. CHUM's original content is seen in more than 130 countries.
* History: CHUM was conceived in 1954 when the company acquired Toronto radio station CHUM-AM and that station became Canada's first Top 40, 24-hour rock station in 1957.
* Recent Stock Price/52-Week Range (TSX:CHM.NV.B): $34.75/$24.51-$37.
* Head Office: 1331 Yonge St., Toronto, Ont., M4T 1Y1.
* Phone/Fax: 416-925-6666/ 926-0279.
* Website: www.chumlimited.com








