TV

Weak revenue growth for Canadian TV industry in 2009: StatsCan

A report from Statistics Canada issued on Monday reveals that in 2009, while the Canadian TV broadcasting sector's operating revenues increased by 0.6% from 2008 for a total of CDN$6.5 billion, it was the lowest year-on-year increase since 1997.
July 13, 2010

A report from Statistics Canada issued on Monday reveals that in 2009, while the Canadian TV broadcasting sector’s operating revenues increased by 0.6% from 2008 for a total of CDN$6.5 billion, it was the lowest year-on-year increase since 1997. Furthermore, public and private conventional broadcasters in Canada saw revenues fall 3.9% from 2008 to $3.4 billion in 2009, the biggest decline in 10 years. That number is augmented by the decline in revenues for private conventional TV – according to the report, it suffered a 7.7% drop in operating revenue from 2008, the largest annual decrease in 30 years. Losses for that segment amounted to $113.4 million last year.
The numbers are better for the pay TV and specialty channel segments, with pay TV reporting a 16.6% increase over last year and specialty channels reporting a 3.3% increase, for a $3.1 billion revenue total for the two segments, as well as a profit margin of 23.5%, and a rise in operating profits from $648.2 million to $728.7 million. Still, revenue growth in those two areas has been decreasing over the last few years: StatsCan reports that their year-over-year increase was $230 million in 2007, $200 million in 2008 and $175 million in 2009.
Last but not least, ad revenues for Canadian TV broadcasters suffered their first decline in 15 years, falling 8.4% to $3.1 billion in 2009. Also for the first time in several years, ad revenues accounted for less than half (47.8%) of the industry’s total revenues. A decade ago, ad revenues represented close to 60% of the total revenues for the television sector.

About The Author
Meagan Kashty is an associate editor of realscreen, an international print and online magazine that covers the non-fiction film and television industries. Meagan is an award-winning business journalist. Prior to joining the realscreen team, Meagan was online editor of Canadian Grocer, named Magazine of the Year at the 2015 Canadian Business Media Awards. She can be reached at mkashty@brunico.com, and you can follow her on Twitter @MegKashty

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