Ep. 55: Paul McGrath - From Cannibalization Fears to YouTube Success: How CBC Cracked the Creator Economy CodePaul McGrath, a 20-year CBC veteran now leading strategy in the entertainment department, shared how Canada's national broadcaster evolved from fearing digital cannibalization to embracing the creator economy through scientific methodology.Three Phases of Digital EvolutionPhase One: Cannibalization Concerns"The first phase was concerns about cannibalization," McGrath explained. "There was concerns about publishing on digital services, cannibalizing a linear audience." This decade-old fear dominated industry discussions about digital distribution.Phase Two: DTC LearningCBC invested in their streaming platform, CBC Gem, building new competencies. "We had to learn things like how do you run a DTC model? How do you do all of the customer support and customer service?"Phase Three: Platform StrategyCurrent focus centers on creator partnerships after realizing platform consumption scale, particularly among younger audiences.The Retention RevolutionCBC Gem achieved its best year ever by focusing on audience retention from major events like Olympics and breaking news. "We really looked at what are the retention rates that we're getting off big events," McGrath said. "What percentage of that audience do we keep after one month, after three months, after six months?"This leverages CBC's "superpower" as a premier news brand: "We don't have to do a lot of marketing for audience acquisition because the news events will drive a lot of audience in."Debunking the Cannibalization MythMost compelling was CBC's scientific test of cannibalization fears using 50 titles across control and test groups. Results shocked the industry: "Overall engagement on the streaming service went up, not down. In some cases, some of those titles almost doubled in their engagement on the streaming service after we published on YouTube."The new hypothesis: YouTube's algorithm creates word-of-mouth marketing driving search behavior back to CBC Gem. "We think that word of mouth converted into search, which led more audience into the streaming service."Creator Economy StrategyCBC's three-pronged approach includes:Production partnerships with creators for development and fundingLicensing catalog content from creators for FAST channelsOpening content libraries to let creators access CBC's archiveIndustry ConvergenceMcGrath observed the merger of traditional media and creator economies: "I used to say YouTube was like Hollywood on a different planet... But those two planets are getting closer together."He attributes this to economics: "When traditional television producers realize some creators can garner a million people for an hour at a fraction of the budget of a TV show, that becomes inevitable."Call for CollaborationMcGrath concluded with an industry invitation: "If you're experimenting around this stuff, please reach out. Let's share our results together."His vision: collaborative research moving beyond anecdotal evidence to establish data-driven best practices.CBC's journey proves that embracing scientific methodology and testing assumptions can transform digital fears into growth opportunities.