CRTC releases 2011 financial results for specialty, pay and pay-per-view
television services and video-on-demand services
OTTAWA-GATINEAU, May 1, 2012 —Today, the Canadian Radio-television and
Telecommunications Commission (CRTC) released statistical and financial
summaries for Canadian specialty, pay, pay-per-view (PPV) and
video-on-demand (VOD) television services. During the past five years,
this sector of the broadcasting industry increased its revenues by 36.7%,
while profits before interest and taxes margins hovered between 22% and
25%, reflecting a strong demand for these services.
In 2011, these services generated revenues of $3.7 billion, representing
an increase of 7.9% above the $3.5 billion earned the previous year. This
is a result of a 10.9% growth in advertising revenues totaling $1.2
billion and a 7% increase in subscriber revenues that exceeded $2.4
billion. Expenses grew from $2.5 billion in 2010 to $2.7 billion in 2011.
As a result, profits before interest and taxes (PBIT) improved to $930.5
million, with a PBIT margin of 24.9%, up from $873.9 million in 2010 when
the PBIT margin was 25.3%.
Sources of revenues
The total revenues of $3.7 billion were generated from the following
$1.7 billion from terrestrial subscribers
$698.9 million from direct-to-home satellite subscribers
$1.2 billion from national advertising
$30.2 million from local advertising
$94.4 million from other sources
English-language and bilingual services earned $3.1 billion of the total
revenues, while French-language services brought in $587.2 million.
Revenue by sectors
Specialty television services captured the largest share of the total
revenues, $2.9 billion, which included:
$2.4 billion from 49 analog services, and
$479.8 million from 113 digital services
In 2010, total revenues for specialty television services were $2.7
billion for a PBIT margin of 27.8%.
Pay, pay-per-view and VOD services saw their revenues increase by 7.2%,
going from $798.6 million in 2010, with a PBIT margin of 16.7%, to $855.6
million in 2011 when the PBIT margin was 16.4%.
In 2011, these services spent $1.3 billion on Canadian programming,
representing an 8.5% increase over the previous year. Spending on Canadian
programming by specialty services included $187 million for news programs,
$241 million for programs of national interests (drama series, long-form
documentaries, and Canadian award shows), $397 million for sports
programming, $96 million for human-interest programming, and $241 million
for other types of programming.
Investments in non-Canadian programming increased slightly to $278 million
in 2011 from $252 million in 2010.
In 2011, these sectors of the broadcasting industry employed 5,900 people
and paid a total of $461 million in salaries. In comparison, they employed
5,495 people and paid $415 million in salaries the previous year.
Each year, the CRTC compiles financial data on the Canadian broadcasting
and telecommunications industries. The data compiled in this report
issued today were drawn from the annual reports of specialty, pay and
pay-per-view television services, as well as video-on-demand services.
The CRTC recently released the financial results for cable and satellite
companies and conventional television stations. It will publish the
financial results for AM and FM radio stations in the coming weeks.
Following the publication of these reports, the CRTC will issue its annual
Communications Monitoring Report.
These annual reports allow interested parties to stay informed about the
state of the Canadian broadcasting industry.
Pay Television, Pay-Per-View, Video-On-Demand and Specialty Services –
Statistical and Financial Summaries 2007–2011 http://crtc/eng/publications/reports/branalysis/psp2011/psp2011.htm
The CRTC is an independent public authority that regulates and supervises
broadcasting and telecommunications in Canada.